Cimpress Plc · NASDAQ:CMPR
Cimpress — Q3 FY2015 Earnings Presentation
53 slides from Cimpress's earnings presentation, Apr 30, 2015
Slide 1: Cimpress N.V. Q3 Fiscal Year 2015 Earnings Presentation
CIMPRESS N.V. Q3 Fiscal Year 2015 Earnings presentation, commentary & financial results supplement April 29, 2015 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 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,
Slide 3: Presentation Organization & Call Details
Presentation Organization & Call Details 3 • Q3 FY2015 Overview • Q3 FY2015 Operating and financial results • Looking ahead • Supplementary information • Reconciliation of GAAP to non-GAAP results Live Q&A Session: THURSDAY MORNING April 30, 2015, 7:30 a.m. ET Link from ir.cimpress.com Hosted by: Ro
Slide 4: Q3 FY2015 Overview
Q3 FY2015 Overview • Year-over-year revenue growth of 19% – Vistaprint constant currency growth rate continues to improve – Recent acquisitions performing well • GAAP and Non-GAAP EPS up significantly year over year • GAAP profitability higher than expectation set in January primarily due to currenc
Slide 5: Priorities
Priorities • Leadership – Being the world leader in mass customization – Focused at the intersection of: • Empowering people to make an impression with individually meaningful, customized physical products • Computer Integrated Manufacturing • Large scale in small quantities • Long-termism – Multi-d
Slide 6: Strategy & Capital Allocation
Strategy & Capital Allocation 6 • Strategy – Develop an integrated “mass customization platform” to drive operational advantages of scale such as conformance, selection and cost – Bring to market via a portfolio of focused brands, each of which individually controls UX, service, merchandising, marke
Slide 7: Vistaprint Business Unit
Vistaprint Business Unit • Continued to move value proposition toward needs of the "higher expectations” segment of micro-businesses – Improved trends in markets in which we have made major marketing changes and rolled out new changes in remaining European markets – Traction in customer metrics, inc
Slide 8: Recent Acquisitions: Exagroup and Druck.at
Recent Acquisitions: Exagroup and Druck.at • Closed in mid April 2015 • Leaders in France (Exagroup) and Austria (Druck.at) web-to-print markets selling to resellers such as graphic designers and local print shops • Directly supports our strategy to leverage a common operational platform across mult
Slide 9: Other Business Units
• Japan/India/Brazil: – Remain in “foundation building” stage, as expected – Construction of manufacturing plant in Japan continues – Expansion of capabilities in Brazil and India • Albumprinter performing well • Recently Acquired Subsidiaries – Printdeal and Pixartprinting continuing to perform wel
Slide 10: Manufacturing & Technology
Manufacturing & Technology 10 • Remain at the early stages of a multi-year project – Talent and software technology investments ramping up • Expanding of beta production for soft goods, promotional products, and apparel • Further gains in productivity, conformance and reliability in relocated Printd
Slide 11: Q3 FY2015 Financial & Operating Metrics
Q3 FY2015 Financial & Operating Metrics
Slide 12: Q3 FY2015: Revenue Growth
Q3 FY2015: Revenue Growth Consolidated Total Revenue (reported, in millions) Total Revenue Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 $288 $280 $275 $371 $286 $338 $334 $440 $340 Year-over-Year growth excl. TTM acquisitions and joint ventures Year-over-Year Growth Q3 FY1
Slide 13: Q3 FY2015: Profit Metrics
Non-GAAP Net Income* 20% 15% 10% 5% 0% Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 $17 $14 $16 $53 $8 $25 $28 $72 $25 GAAP Net Income (Loss) 20% 15% 10% 5% 0% Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 $6 $2 $— $41 $1 $1 $24 $64 $9 Non-GAAP EP
Slide 14: Currency Impacts this Quarter
Currency Impacts this Quarter • Impact on our operational results: – Reduced our YoY revenue growth by 700 bps – More limited impact on bottom line due to natural hedges, and an active currency hedging program • Additional impact from non- operational items: – We do not apply hedge accounting for ou
Slide 15: Cash Flow and ROIC Highlights
TTM Capital Expenditures TTM Return on Invested Capital Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 $123 $140 $133 $140 $135 $149 $201 $245 $243 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 7% 7% 6% 5% 5% 6% 5% 5% 5% Cash Flow and ROIC Highlights TTM Free Cash Fl
Slide 16: Debt Related Metrics
Debt Related Metrics Availability under our senior secured credit facility ($ millions)* 3/31/2015 Maximum aggregate available for borrowing $ 846.0 Outstanding borrowings of senior secured credit facilities $ (156.0) Remaining amount $ 690.0 Limitations to borrowing due to debt covenants and other
Slide 17: Geographic Region Revenue
Geographic Region Revenue Quarterly (millions) Europe: 39% of total revenue 28% y/y growth 44% y/y constant currency growth 5% y/y constant currency growth ex. acquisitions from past year North America: 56% of total revenue 14% y/y growth 15% y/y constant currency growth *All Printdeal, Pixartprinti
Slide 18: Operational Metrics: Orders and Average Order Value
Operational Metrics Excludes Printi, Printdeal, Pixartprinting and FotoKnudsen Vistaprint, Albumprinter and Webs Orders (M) Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 7.6 7.1 9.8 7.8 7.1 7.1 9.1 7.3 7.0 6.8 8.8 7.2 Average Order Value Q4 FY12 Q1 F
Slide 19: Operational Metrics: New Customers, COCA, Advertising
Operational Metrics Excludes Printi, Printdeal, Pixartprinting and FotoKnudsen Vistaprint, Albumprinter and Webs New Customers (millions) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 2.3 2.3 3.3 2.6 2.3 2.
Slide 20: Historical Revenue Driver Metrics: Unique Customers
TTM* Unique Customers (M) Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 6.5 6.7 6.9 7.0 7.0 7.1 7.2 7.4 10.5 10.4 10.0 9.8 9.7 9.6 9.4 9.3 Historical Revenue Driver Metrics Excludes Printi, Printdeal, Pixartprinting and FotoKnudsen 16.7 17.0 16.9 16.8 16.7 16.7 16.6 Vistaprint, Alb
Slide 21: Historical Revenue Driver Metrics: Bookings per Customer
Historical Revenue Driver Metrics Excludes Printi, Printdeal, Pixartprinting and FotoKnudsen Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Average TTM Bookings per Unique Customer $ 69 $ 70 $ 72 $ 73 $ 74 $ 75 $ 76 $ 77 Average TTM Bookings per New Customer $ 51 $ 52 $ 53 $ 53 $ 54
Slide 22: Looking Ahead
Looking Ahead <> cimpress
Slide 23: FY 2015 Outlook & Expectations
FY 2015 Outlook & Expectations • Changes to revenue outlook: – Operational outlook essentially unchanged – Reduced range by roughly $20 million to reflect currency movements since January – New acquisitions add about $30 million of revenue in Q4 – Narrowed guidance range • Changes to EPS outlook inc
Slide 24: FY 2015 Outlook & Expectations (cont.)
FY 2015 Outlook & Expectations (cont.) • Do not expect further P&L impacts from earn outs from past acquisitions, but cash flow impact still ahead • GAAP dilution estimates for Exagroup and Druck.at acquisitions are preliminary pending completion of purchase accounting in Q4 2015 • Currency is volat
Slide 25: Revenue and EPS Guidance
Revenue and EPS Guidance* 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, tax charges related to the alignment of IP with ou
Slide 26: Capital Expenditures Guidance
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15-High FY 15-Low 14% 6% 6% 3% 2% 2% 2% 3% 2% 2% 8% 7% 7% 9% 2% 2% 3% 1% 2% 2% 3% 3% 2% 3% 1% 1% 2% 2% 2% 1% Capital Expenditures Guidance As of April 29, 2015 (expressed as percent of revenue) FY 2015 Guidance: • $80M - $90M • ~5%-6% of revenue gui
Slide 27: Summary
Summary • Clear priorities – Leadership: world leader in mass customization – Long termism: multi-decade mutual success for stakeholders – Intrinsic value: future free cash flow per share, discounted at cost of capital • Solid performance YTD 2015 – Investments in technology for common mass customiz
Slide 28: Q&A Session
Q&A Session Please go to ir.cimpress.com for the live Q&A call at 7:30 am EDT on April 30, 2015
Slide 29: Q3 Fiscal Year 2015 Financial and Operating Results Supplement
Q3 Fiscal Year 2015 Financial and Operating Results Supplement
Slide 30: Revenue Growth Rates
23% constant-currency growth Revenue Growth Rates* Constant-Currency Reported Constant-Currency Excl. TTM Acquisitions and Joint Ventures Reported Excl. TTM Acquisitions and Joint Ventures 30% 25% 20% 15% 10% 5% 0% -5% Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q
Slide 31: Constant Currency Geographic Region Revenue Growth
Other 50% 40% 30% 20% 10% 0% -10% Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 33% 29% 24% 10% 8% 2% 6% 10% 8% 27% 21% 13% 10% 14% Europe 50% 40% 30% 20% 10% 0% -10% Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14
Slide 32: Gross Margin and Gross Profit
Gross Profit (millions) GM % Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 $162 $163 $234 $189 $181 $179 $250 $185 $205 $204 $283 $214 64.6% 65.0% 67.2% 65.5% 64.6% 65.2% 67.4% 64.7% 60.5% 61.0% 64.4% 63.1% Gross Margin and Gross Profit 32 FY12 65.2%
Slide 33: GAAP Net Income (Loss) and Net Margin
GAAP Adjusted Net Income (millions) GAAP Adjusted Net Margin Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 $4 $(2) $23 $6 $2 $— $41 $1 $1 $24 $64 $9 1.5% (0.7)% 6.6% 2.0% 0.8% 0.1% 11.0% 0.5% 0.3% 7.1% 14.5% 2.5% GAAP Net Income (Loss) and Net Margin FY12 $44 FY
Slide 34: Non-GAAP Adjusted Net Income & Net Margin
Non-GAAP Adjusted Net Income (millions) Non-GAAP Adjusted Net Margin Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 $15 $9 $36 $17 $14 $16 $53 $8 $25 $28 $72 $25 5.9% 3.6% 10.3% 5.9% 5.0% 5.9% 14.2% 2.9% 7.6% 8.6% 16.4% 7.4% Non-GAAP Adjusted Net Income* & Non-GA
Slide 35: Q3 Income Statement Comparison to Prior Year
Q3 FY15 Q3 FY14 1.3% 1.8% 12.1% 10.0% 14.2% 14.8% 35.5% 38.1% 36.9% 35.3% Q3 Income Statement Comparison to Prior Year, as a percentage of revenue Consolidated 35
Slide 36: Q3 Income Statement Comparison to Prior Quarter
Q3 FY15 Q2 FY15 1.3% 13.6%12.1% 8.6%14.2% 10.6% 35.5% 31.6% 36.9% 35.6% Q3 Income Statement Comparison to Prior Quarter, as a percentage of revenue Consolidated 36
Slide 37: Share-Based Compensation
Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 $8.6 $8.4 $8.5 $8.4 $8.3 $8.6 $8.1 $5.8 $6.1 $5.8 $5.4 $6.0 Share-Based Compensation* (millions) 37 * Share-based compensation (SBC) expense includes SBC-related tax adjustment. The period from Q4 FY12 to Q2 FY14 inc
Slide 38: Balance Sheet Highlights
Balance Sheet Highlights Balance Sheet highlights, in millions, at period end 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014 Total assets $ 1,041.1 $ 1,026.5 $ 984.1 $ 989.0 $ 672.0 Cash and cash equivalents $ 134.2 $ 77.9 $ 60.9 $ 62.5 $ 46.5 Total current assets $ 222.1 $ 179.1 $ 144.3 $ 157.9
Slide 39: Q3 & YTD FY15 Capital Expenditures
Q3 CapEx: $15.2M 39 1 Land, building and construction, leasehold improvements, and furniture and fixtures 2 Including printing presses and related equipment, finishing equipment, and automation. 3 IT infrastructure, software and office equipment Consolidated 36% FY15 YTD CapEx: $50.1M Q3 & YTD FY15
Slide 40: Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 41: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures • To supplement Cimpress' consolidated financial statements presented in accordance with U.S. generally accepted accounting principles, or GAAP, Cimpress has used the following measures defined as non- GAAP financial measures by Securities and Exchange Commission, o
Slide 42: Non-GAAP Financial Measures Definitions
Non-GAAP Financial Measures Definitions Non-GAAP Measure Definition Non-GAAP Net Income/EPS The items excluded from the non-GAAP adjusted net income measurements are share-based compensation expense and its related tax effect, amortization of acquisition-related intangibles, tax charges related to t
Slide 43: Reconciliation: GAAP to Non-GAAP Results Net Income (Loss)
Reconciliation: GAAP to Non-GAAP Results Net Income (Loss) . FiscalYear 2012 Fiscal Year 2013 Fiscal Year 2014 Fiscal Year 2015 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 GAAP Net Income attributable to Cimpress N.V. $3,851 $(1,696) $22,960 $5,866 $2,305 $412 $40,875 $1,375 $1,034 $23,694 $63,609 $8,611 Sh
Slide 44: Reconciliation: GAAP to Non-GAAP Earnings per Diluted Share
Reconciliation: GAAP to Non-GAAP Results Earnings per Diluted Share Quarterly 44 Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014 Fiscal Year 2015 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 GAAP Net Income per share attributable to Cimpress N.V. $0.10 $(0.05) $0.66 $0.17 $0.07 $0.01 $1.18 $0.04 $0.03 $0.
Slide 45: Reconciliation: Free Cash Flow
Reconciliation: Free Cash Flow Q3 FY14 Q3 FY15 Net cash provided by operating activities $3,142 $1,570 Purchases of property, plant and equipment $(11,830) $(15,153) Purchases of intangible assets not related to acquisitions $(83) $(56) Capitalization of software and website development costs $(2,92
Slide 46: Reconciliation: TTM Free Cash Flow
Reconciliation: TTM Free Cash Flow TTM Q3 FY13 TTM Q4 FY13 TTM Q1 FY14 TTM Q2 FY14 TTM Q3 FY14 TTM Q4 FY14 TTM Q1 FY15 TTM Q2 FY15 TTM Q3 FY15 Net cash provided by operating activities $122,659 $140,012 $133,239 $139,733 $134,740 $148,580 $201,323 $244,520 $242,948 Purchase of property, plant, and e
Slide 47: Reconciliation: TTM ROIC
Reconciliation: TTM ROIC TTM Q3FY13 TTM Q4FY13 TTM Q1FY14 TTM Q2FY14 TTM Q3FY14 TTM Q4FY14 TTM Q1FY15 TTM Q2FY15 TTM Q3FY15 Operating Income $48,110 $46,124 $54,299 $73,780 $69,286 $85,914 $94,385 $101,751 $100,853 Tax Provision $11,989 $9,387 $10,068 $7,884 $6,619 $10,590 $12,007 $9,852 $10,429 Net
Slide 48: Reconciliation: Average Invested Capital
Reconciliation: Average Invested Capital ¹Excess cash is cash and equivalents > 5% of last twelve month revenues; if negative, capped at zero ²Average invested capital represents a four quarter average of total debt, redeemable non-controlling interests and total shareholder equity, less excess cash
Slide 49: Reconciliation: Adjusted EBITDA
Reconciliation: Adjusted EBITDA1,2 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 GAAP net income $ 3,851 $ (1,697) $ 22,960 $ 5,866 $ 2,305 $ 412 $ 40,875 $ 1,341 $ 688 $ 23,418 $ 62,861 $ 7,925 Interest expense (net) $ 758 1,162 1,263 $ 1,283 $ 1,621 $ 1,577 $
Slide 50: Reconciliation: Adjusted EBITDA TTM
Reconciliation: Adjusted EBITDA1,2 TTM Q3FY13 TTM Q4FY13 TTM Q1FY14 TTM Q2FY14 TTM Q3FY14 TTM Q4FY14 TTM Q1FY15 TTM Q2FY15 TTM Q3FY15 GAAP net income $30,981 $29,435 $31,543 $49,458 $44,933 $43,316 $66,321 $88,308 $94,892 Interest expense (net) $4,467 $5,329 $5,744 $6,046 $6,489 $7,674 $9,442 $10,90
Slide 51: Reconciliation: Constant-Currency Revenue Growth Rates, Europe and Other
EUROPE Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Reported revenue growth 18% 12% 11% 8% 3% 6% 1% (4)% 50% 46% 30% 28% Currency impact 12% 11% 3% —% (1)% (4)% (3)% (3)% (7)% (1)% 11% 16% Revenue growth in constant currency 30% 23% 14% 8% 2% 2% (2)
Slide 52: Reconciliation: Constant-Currency Revenue Growth Rates, Total Company and North America
TOTAL COMPANY Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Reported revenue growth 20% 18% 16% 12% 12% 9% 6% (1)% 21% 21% 19% 19% Currency impact 5% 5% 1% 0% 0% 0% 0% 0% (2)% 0% 4% 7% Revenue growth in constant currency 25% 23% 17% 12% 12% 9% 6% (1)
Slide 53: Reconciliation: Constant-Currency Revenue Growth Rates, Annual
FY2012 FY2013 FY2014 FY2015 YTD Reported revenue growth 25% 14% 9% 19% Currency impact 0% 2% (1)% 4% Revenue growth in constant currency 25% 16% 8% 23% Impact of TTM acquisitions and joint ventures (5)% (4)% (4)% (15)% Revenue growth in constant currency ex. TTM acquisitions and joint ventures 20% 1