Cimpress Plc · NASDAQ:CMPR
Cimpress — Vistaprint — Q1 FY2014 Earnings Presentation
43 slides from Cimpress's earnings presentation, Oct 30, 2013
Slide 1: Q1 Fiscal Year 2014 Earnings Presentation, Commentary & Financial Results Supplement
Q1 Fiscal Year 2014 Earnings Presentation, Commentary & Financial Results Supplement October 29, 2013 Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and the accompanying notes contain statements about our future expectations, plans and prospects of our business that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, i
Slide 3: Presentation Organization & Call Details
Presentation Organization & Call Details Presentation Organization: • Q1 FY14 overview • Q1 FY14 operating and financial results • FY14 outlook • Supplementary information • Reconciliation of GAAP to Non-GAAP results Live Q&A Session: • 5:15 p.m. Eastern • Link from the IR section of www.vistaprint.
Slide 4: Quarterly Financial Results
Quarterly Financial Results Revenue and EPS results for the consolidated business, including Albumprinter and Webs results since October 31, 2011 and December 28, 2011 (dates of purchase, respectively). Non-GAAP adjusted net income per diluted share for all periods presented excludes the impact of s
Slide 5: Operational Performance: Invigorate the Core Business
FY14 Operational Performance: Invigorate the Core Business Strategy Element Description Long-Term Goals Q1FY14 Examples Major improvements to customer experience, satisfaction and loyalty Change success metrics from short-term transaction-focused value to longer-term life time value and achieve high
Slide 6: Operational Performance: Build Foundations for Future Growth
FY14 Operational Performance: Build Foundations for Future Growth Strategy Element Description Long-Term Goals Q1FY14 Examples Digital small business marketing offerings (websites, email marketing, social media) Lay foundations for continued rapid growth five and more years in the future Seek M&A op
Slide 7: Q1 FY 2014 Financial and Operating Results
Q1 FY 2014 Financial and Operating Results
Slide 8: Q1 FY 2014: Key Financial Metrics
Quarter Ended 09/30/2013 Q1 FY 2014: Key Financial Metrics ** Non-GAAP adjusted net income and non-GAAP adjusted EPS exclude share-based compensation expense and its related tax effect, amortization of acquired intangible assets, and charges related to the alignment of Webs IP with our global operat
Slide 9: Cash Flow & ROIC Highlights
Quarterly cash flows and investments (in millions) Q1FY14 Q1FY13 Share repurchase program Q1FY14 Balance sheet (in millions, as of September 30, 2013) Cash Flow & ROIC Highlights Cash flow from operations $(0.1) $6.6 Free cash flow* $(19.6) $(22.4) Capital expenditures $17.6 $27.8 as % of revenue 6.
Slide 10: Geographic Segment Revenue - Quarterly
Geographic Segment Revenue - Quarterly (millions) North America: 60% of total revenue 14% y/y growth 15% y/y constant currency growth Europe: 34% of total revenue 6% y/y growth 2% y/y constant currency growth Asia Pacific: 6% of total revenue -11% y/y growth 2% y/y constant currency growth Revenue r
Slide 11: Operational Metrics
Operational Metrics (Includes Albumprinter and Webs as of acquisition dates) *Albumprinter and Webs included starting Q3FY12 Also starting in the same period, a minor calculation methodology change was made in order to accommodate the consolidation of metrics.
Slide 12: Operational Metrics
Operational Metrics (Includes Albumprinter and Webs as of acquisition dates) *Albumprinter and Webs included starting Q3FY12 Also starting in the same period, a minor calculation methodology change was made in order to accommodate the consolidation of metrics.
Slide 13: Historical Revenue Driver Metrics
Historical Revenue Driver Metrics (Includes Albumprinter and Webs as of acquisition dates) *trailing twelve month at period end **TTM repeating customers as % of year-ago unique customers Starting in Q3 FY12, impact of Albumprinter and Webs has been included.
Slide 14: Historical Revenue Driver Metrics
Historical Revenue Driver Metrics (Includes Albumprinter and Webs as of acquisition dates) Starting in Q3 FY12, impact of Albumprinter and Webs has been included.
Slide 15: Looking Ahead
Looking Ahead
Slide 16: FY14 Outlook Commentary
FY14 Outlook Commentary • Revenue guidance range increase of $15M updated only to reflect recent currency movements; no update to operational outlook o NA continued growth rates in mid-teens o EU revenue essentially flat versus FY13 • Re-building the foundation • Roll-out of initiatives starting in
Slide 17: Financial Guidance
Financial Guidance* (as of October 29, 2013) The Company is providing the following assumptions to facilitate non-GAAP adjusted net income per diluted share comparisons that exclude share- based compensation related expenses, amortization of acquired intangible assets and tax charges related to the
Slide 18: Capital Expenditures Guidance
Capital Expenditures Guidance (as of October 29, 2013) Expressed as percent of revenue FY 2014 Guidance: Actuals Guidance $63M $63M $76M $100M $85M $101M $37M $46M $79M • $85M - $100M • 7% - 8% of revenue guidance midpoint
Slide 19: Summary
Summary • In-line Q1 results • Focus on strategic initiatives and operational implementation • Continued focus on driving: o Long-term revenue and profit growth o Competitive advantage o Significant value for long-term shareholders
Slide 20: Q&A Session
Q&A Session Please go to the Investor Relations section of www.vistaprint.com for the live Q&A call at 5:15 pm EDT on October 29, 2013
Slide 21: Q1 Fiscal Year 2014 Financial and Operating Results Supplement
Q1 Fiscal Year 2014 Financial and Operating Results Supplement
Slide 22: Total Company Growth Rates
Total Company Growth Rates* *Starting in Q2FY2012, revenue from acquired companies included. Note: Constant-currency revenue growth is estimated by translating all non-U.S. dollar denominated revenue generated in the current period using the prior year period’s average exchange rate for each currenc
Slide 23: Segment Revenue Growth Rates
Segment Revenue Growth Rates* Constant Currency *Starting in Q2FY2012, revenue from acquired companies included. Note: Constant-currency revenue growth is estimated by translating all non-U.S. dollar denominated revenue generated in the current period using the prior year period’s average exchange r
Slide 24: Gross Margin and Gross Profit
Gross Margin and Gross Profit
Slide 25: GAAP Net Income (Loss) and Net Margin
GAAP Net Income (Loss) and Net Margin
Slide 26: Non-GAAP Adjusted Net Income and Adjusted Net Margin
Non-GAAP Adjusted Net Income* and Adjusted Net Margin *Non-GAAP adjusted net income for all periods presented excludes the impact of share-based compensation expense and its related tax effect, amortization of acquired intangibles, and charges related to the alignment of Webs IP with our global stru
Slide 27: Income Statement Comparison to Prior Year
Q1 Income Statement Comparison to Prior Year (as a percentage of revenue)
Slide 28: Income Statement Comparison to Prior Quarter
Q1 Income Statement Comparison to Prior Quarter (as a percentage of revenue)
Slide 29: Share-Based Compensation
Share-Based Compensation* (millions) * Share-based compensation (SBC) expense includes SBC-related tax adjustment.
Slide 30: Revenue Seasonality
Revenue Seasonality (Includes Albumprinter and Webs as of the dates of acquisition) * Home and family revenue is calculated using a product format-based approach; all Albumprinter revenue is included in home and family and all Webs revenue is included in Small business marketing
Slide 31: Balance Sheet Highlights
Balance Sheet highlights, in millions, at period end 09/30/2013 06/30/13 03/31/13 12/31/12 09/30/12 Balance Sheet Highlights Total assets $638.7 $601.6 $616.4 $653.7 $620.5 Cash and cash equivalents $64.7 $50.1 $51.3 $64.7 $59.3 Total current assets $121.8 $100.2 $104.4 $132.3 $114.6 Goodwill and in
Slide 32: Availability under our credit facility
Availability under our credit facility 9/30/13 Total Debt Maximum aggregate available borrowing amounts $497.5M Outstanding borrowings of credit facility ($270.0M) Remaining amount $227.5M Limitations to borrowing due to debt covenants and other obligations* ($1.5M) Amount available for borrowing as
Slide 33: Q1 FY14 Capital Expenditure Breakdown
Q1 FY14 Capital Expenditure Breakdown Land, building and construction, leasehold improvements, and furniture and fixtures All manufacturing and automation equipment, including offset and digital print lines, other printing equipment, pre-press and post-press equipment such as cutters, and automation
Slide 34: Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 35: About non-GAAP financial measures
About non-GAAP financial measures To supplement Vistaprint’s consolidated financial statements presented in accordance with U.S. generally accepted accounting principles, or GAAP, Vistaprint has used the following measures defined as non-GAAP financial measures by Securities and Exchange Commission,
Slide 36: About non-GAAP financial measures continued
About non-GAAP financial measures continued… Vistaprint’s management believes that these non-GAAP financial measures provide meaningful supplemental information in assessing our performance and when forecasting and analyzing future periods. These non-GAAP financial measures also have facilitated man
Slide 37: Reconciliation: GAAP to Non-GAAP Results - Annual Net Income
FY 2003 FY 2004 FY 2005* FY 2006 FY 2007 FY 2008 FY 2009 FY2010 FY2011 FY2012 FY2013 Reconciliation: GAAP to Non-GAAP Results GAAP Net Income $473 $3,440 ($16,218) $19,234 $27,143 $39,831 $55,686 $67,741 $82,109 $43,994 $29,435 Share-based compensation and related tax effect $0 $0 $0 $4,850 $8,765 $
Slide 38: Reconciliation: GAAP to Non-GAAP Results - Quarterly Net Income
. Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 FY2014 Reconciliation: GAAP to Non-GAAP Results Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 GAAP Net Income $34,014 $22,917 $14,397 $8,172 $31,697 $274 $3,851 $(1,696) $22,960 $5,866 $2,305 $412 Share-based compensation and related tax effect $6,435 $5,28
Slide 39: Reconciliation: GAAP to Non-GAAP Results - Annual EPS
FY 2006 FY 2007 FY 2008 FY 2009 FY2010 FY2011 FY2012 FY2013 Diluted Earnings Per Share - Annual Reconciliation: GAAP to Non-GAAP Results GAAP Net Income per share $0.45 $0.60 $0.87 $1.25 $1.49 $1.83 $1.13 $0.85 Share-based Compensation and related tax effect per share $0.09 $0.18 $0.31 $0.43 $0.49 $
Slide 40: Reconciliation: GAAP to Non-GAAP Results - Quarterly EPS
Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 FY2014 Reconciliation: GAAP to Non-GAAP Results Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 GAAP Net Income per share $0.75 $0.51 $0.32 $0.19 $0.82 $0.01 $0.10 $(0.05) $0.66 $0.17 $0.07 $0.01 Share-based Compensation and related tax effect per share $0.14 $
Slide 41: Reconciliation: Free Cash Flow
Reconciliation: Free Cash Flow (in thousands) Three Months Ended September 30, Net cash provided by operating activities $ (123) $ 6,650 Purchases of property, plant and equipment (17,577) (27,759) Purchases of intangibles assets (75) (9) Capitalization of software and website development costs (1,8
Slide 42: Reconciliation: Constant-Currency Revenue Growth Rates
ASIA-PACIFIC Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 EUROPE Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Reconciliation: Constant-Currency Revenue Growth Rates Quarterly Reported revenue growth
Slide 43: Reconciliation: Constant-Currency Revenue Growth Rates
NORTH AMERICA Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 TOTAL COMPANY Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Reconciliation: Constant-Currency Revenue Growth Rates Quarterly Reported revenu