Cimpress Plc · NASDAQ:CMPR
Cimpress — Vistaprint — Q1 FY2015 Earnings Presentation
47 slides from Cimpress's earnings presentation, Oct 30, 2014
Slide 1: Q1 Fiscal Year 2015 Earnings Presentation
Exhibit 99.2 Q1 Fiscal Year 2015 Earnings presentation, commentary & financial results supplement October 29, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and the accompanying notes contains 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 • Q1 FY15 Overview Live Q&A Session: TOMORROW MORNING • Q1 FY15 Operating and October 30, 2014 finance results 7:30 a.m. Eastern • Supplementary information Link from the IR section of www.vistaprint.com • Reconciliation of GAAP to non-GAAP Results Hosted by:
Slide 4: Q1 FY15 Overview
Q1 FY15 Overview Y vistaprint
Slide 5: Q1 FY 2015 Overview
Consolidated Results Q1 FY 2015 Overview Solid Start to the Year • Year-over-year revenue growth of 21% – Vistaprint brand growth rate accelerated slightly – Recent acquisitions performing well • Strong GAAP profitability helped by non-operational or timing related items • Non-GAAP EPS up 87% YoY •
Slide 6: Vistaprint Business Unit
Vistaprint Business Unit • Continued to move value proposition toward needs of customers with higher expectations – New visual identity – Major site experience changes – New graphic design studio software – “Good, Better, Best” approach launched for US business cards – “Reinvent” pricing and marketi
Slide 7: Other Businesses: Geographic Expansion
Other Businesses: Geographic Expansion • Japan JV foundation building – Ending deep discount marketing practices – Learning from JV partner – Beginning construction of production facility • Strong growth in India off small base • $8.2M investment in Brazil – www.Printi.com.br – 41.6% minority intere
Slide 8: Other Businesses: Focused Brands
Other Businesses: Focused Brands • Continue to be be pleased with results – Strong growth – Clear market focus & differentiation – Engaged management teams – Belief in longer-term operational synergies 8
Slide 9: Manufacturing & Technology
Manufacturing & Technology • Launched beta site for customized soft goods and apparel • Moved some People & Print Group production to Venlo facility • Supported expanded product availability in new locations • Continued to invest in talent and software technology to support a common mass customizati
Slide 10: Q1 FY15 Financial & Operating Metrics
Q1 FY15 Financial & Operating Metrics
Slide 11: Q1 FY2015: Key Financial Metrics
Consolidated Results Q1 FY2015: Key Financial Metrics Total Revenue GAAP and Non-GAAP EPS Total Revenue (reported) Year-over-Year Growth Year-over-Year growth excl. PPG, PXP & FTK GAAP EPS $1.50 Non-GAAP EPS $371 30% $348 $338 $334 $1.18 $288 $280 $275 $286 $1.02 $251 20% $0.86 $0.75 $0.66 $0.71 10%
Slide 12: Cash Flow and ROIC Highlights
Consolidated Results Cash Flow and ROIC Highlights TTM Cash Flow from Operations TTM Free Cash Flow (In millions) $118 $201 $140 $140 $135 $149 $124 $123 $133 $117 $64 $66 $55 $58 $48 $53 $41 $35 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY13
Slide 13: Geographic Region Revenue – Quarterly
Consolidated Results Geographic Region Revenue – Quarterly (millions) Asia-Pacific People & Print Group, Pixartprinting & FotoKnudsen Europe North America Q1 FY2015 $20.3 $21.5 Asia Pacific: $16.1 $17.8 5% of total revenue $43.6 $41.9 14% y/y growth $16.4 $15.9 13% y/y constant currency $15.6 $15.6
Slide 14: Operational Metrics
Vistaprint, Albumprinter and Webs Brands Operational Metrics Excludes People & Print Group, Pixartprinting and FotoKnudsen Orders (M) Average Order Value $43.32 $42.50 $40.92 9.8 $39.40 $40.14 9.1 $39.08 $37.56 8.3 $35.79 7.8 $35.69 $35.72 7.6 $34.61 7.3 $34.43 7.0 7.1 7.1 7.1 7.0 6.8 Q2 Q3 Q4 Q1 Q2
Slide 15: Operational Metrics
Vistaprint, Albumprinter and Webs Brands Operational Metrics Excludes People & Print Group, Pixartprinting and FotoKnudsen New Customers Implied COCA Advertising as (millions) % of Revenue 3.5 3.3 35 $ 35% 2.9 2.9 $30 3.0 30 $ $28 $28 $29 $28 30% $27 2.6 2.6 $26 $27 26% 27% $26 $25 26% $25 $25 25% 2
Slide 16: Historical Revenue Driver Metrics
Vistaprint, Albumprinter and Webs Brands Historical Revenue Driver Metrics Excludes People & Print Group, Pixartprinting and FotoKnudsen Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 TTM* Unique Customers (M) FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 TTM Unique Customers (M) 16.6 16.9 17.0 17.1 16.9 16.8 16.7 16.7 TTM New
Slide 17: Historical Revenue Driver Metrics
Vistaprint, Albumprinter and Webs Brands Historical Revenue Driver Metrics Excludes People & Print Group, Pixartprinting and FotoKnudsen Average TTM* Bookings Per Unique Customer (USD) Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Average TTM Bookings $102 $103 $67 $68 $69 $70 $72
Slide 18: Looking Ahead
Looking Ahead Y vistaprint
Slide 19: FY 2015 Outlook & Expectations
FY 2015 Outlook & Expectations Operationally unchanged outlook – Vistaprint brand revenue growth mid-to-high single digits – Acquired company revenue growth in double-digits – Expansion of operating margins, EPS and free cash flow Non-operational changes to guidance ranges: – Revenue guidance range
Slide 20: FY 2015 Outlook & Expectations (cont.)
FY 2015 Outlook & Expectations (cont.) Guidance does not include: – Potential for further changes in fair value estimate of acquisition-related earn-outs – Potential for increased interest expense resulting from further financing activity – Estimate for impact of consolidating results of minority in
Slide 21: Revenue and EPS Guidance
Consolidated Revenue and EPS Guidance* As of October 29, 2014 FY15 ending 06/30/2015 Revenue $1,430 - $1,500 million Revenue growth from FY 2014 period 13% - 18% Constant currency revenue growth estimate 15% - 20% GAAP EPS $2.24 - $2.74 EPS growth from FY 2014 period 75% -114% GAAP share count 33.3
Slide 22: Capital Expenditures Guidance
Consolidated Capital Expenditures Guidance as of October 29, 2014 (expressed as percent of revenue) FY 2015 Guidance: 25% • $80M - $100M • ~5-7% of revenue 3% guidance midpoint 8% 16% 15% Other 15% 3% 2% 3% Land and Facilities 7% 7% Manufacturing & 9% 7% Automation Equipment 7% 14% 5% 5% 6% 2% 2% 5%
Slide 23: Summary
Summary Clear priorities » Leadership: become the world leader in mass customization • Passionate about enabling millions of customers to make an impression • Strive to be best in the world at computer-integrated manufacturing • Drive economic engine through large scale in small quantities » Long te
Slide 24: Q&A Session
Q&A Session Please go to the Investor Relations section of www.vistaprint.com for the live Q&A call at 7:30 am EDT on October 30, 2014
Slide 25: Q1 Fiscal Year 2015 Financial and Operating Results Supplement
Q1 Fiscal Year 2015 Financial and Operating Results Supplement
Slide 26: Revenue Growth Rates
Consolidated Revenue Growth Rates* Constant-Currency 30% Reported Constant-Currency Excl. PPG, PXP & FTK Reported Excl. PPG, PXP & FTK 21% 25% reported and constant- currency 20% 15% 6% 10% reported and constant- currency 5% 0% Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14
Slide 27: Geographic Region Revenue Growth Rates
Consolidated Geographic Region Revenue Growth Rates* Constant Currency North America Europe APAC 50% 50% 50% Europe - Total 46% 43% Total Europe ex. PPG, PXP & FTK 40% 40% 40% 37% 40% 37% 34% 33% 30% 29% 30% 30% 30% 23% 24% 23%21% 20% 20% 20% 20% 20% 22% 15% 15% 14% 18% 14% 10% 13% 8% 10% 10% 10% 8%
Slide 28: Gross Margin and Gross Profit
Consolidated Gross Margin and Gross Profit Gross Profit (millions) GM % 66.8% 67.2% 67.4% 65.5% 64.6% 65.0% 65.5% 64.6% 65.2% 64.7% 60.5% 61.0% $250 $234 $200 $205 $204 $189 $185 $181 $179 $169 $163 $162 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15
Slide 29: GAAP Net Income (Loss) and Net Margin
Consolidated GAAP Net Income (Loss) and Net Margin GAAP Net Income (loss), in millions GAAP Net Margin 11.0% 10.6% $41 7.1% 6.6% $32 $23 $24 2.0% 1.5% 0.8% 0.3% 0.1% 0.5% 0.1% -0.7% $6 $0 $4 $2 $0 $1 $1 $(2) Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 F
Slide 30: Non-GAAP Adjusted Net Income & Net Margin
Consolidated Non-GAAP Adjusted Net Income* & Non-GAAP Adjusted Net Margin* Non-GAAP Adjusted Net Income (millions) Non-GAAP Adjusted Net Margin $53 14.2% 12.6% $38 $36 10.3% 8.6% 7.6% $29 $26 5.9% 5.9% 5.9% 5.0% 4.4% 3.5% $17 $16 $15 $14 2.9% $11 $9 $8 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13
Slide 31: Q1 Income Statement Comparison to Prior Year
Consolidated Q1 Income Statement Comparison to Prior Year (as a percentage of revenue) 39.0% 34.8% Cost of revenue Marketing and selling Technology and development 33.5% 37.2% General and administrative Income from operations 13.1% 15.4% 9.3% 9.5% 5.1% 3.1% Q1 FY2015 Q1 FY2014 31
Slide 32: Q1 Income Statement Comparison to Prior Quarter
Consolidated Q1 Income Statement Comparison to Prior Quarter (as a percentage of revenue) 39.0% 39.5% Cost of revenue Marketing and selling Technology and development 33.5% 31.0% General and administrative Income from operations 13.1% 14.4% 9.3% 9.3% 5.1% 5.8% Q1 FY2015 Q4 FY2014 32
Slide 33: Share-Based Compensation
Consolidated Share-Based Compensation* (millions) $8.6 $8.4 $8.5 $8.6 $8.4 $8.3 $8.1 $7.6 $5.8 $6.1 $5.8 $5.0 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 FY12 $26.1 FY13 $33.7 FY14 $28.5 * Share-based compensation (SBC) expense includes SBC-related
Slide 34: Balance Sheet Highlights
Consolidated Balance Sheet Highlights Balance Sheet highlights, in millions, at period end 09/30/2014 06/30/2014 03/31/2014 12/31/2013 09/30/2013 Total assets $984.1 $989.0 $672.0 $674.6 $638.7 Cash and cash equivalents $60.9 $62.5 $46.5 $62.3 $64.7 Total current assets $144.3 $157.9 $126.0 $135.5 $
Slide 35: Committed Credit Capacity as of September 30, 2014
Consolidated Committed Credit Capacity as of September 30, 2014 • Aggregate loan commitments of $850.0M • Interest rate of LIBOR plus 1.50% - 2.25%, depending on leverage • Currently in compliance with all covenants. Key financial covenants are: – Total leverage ratio not to exceed 4.5x TTM EBITDA –
Slide 36: Q1 FY15 Capital Expenditure Breakdown
Consolidated Q1 FY15 Capital Expenditure Breakdown Q1 CapEx: $16.7M 1 Land/Facilities 17% 36% Mfg & Automation 2 Equipment 3 Other 47% 1 Land, building and construction, leasehold improvements, and furniture and fixtures 2 Including printing presses and related equipment, finishing equipment, and au
Slide 37: Appendix
Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 38: 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 39: Non-GAAP Financial Measures Definitions
Non-GAAP Financial Measures Definitions Non-GAAP Measure Definition Non-GAAP Net The items excluded from the non-GAAP adjusted net income measurements are share-based compensation Income/EPS expense and its related tax effect, amortization of acquisition-related intangibles, tax charges related to t
Slide 40: Reconciliation: GAAP to Non-GAAP Results
Reconciliation: GAAP to Non-GAAP Results Net Income (Loss) – Quarterly, $ in thousands Fiscal . Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014 Year 2015 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 GAAP Net Income $31,697 $274 $3,851 $(1,696) $22,960 $5,866 $2,305 $412 $40,875 $1,376 $1,034 $23,694 Share
Slide 41: Reconciliation: GAAP to Non-GAAP Results
Reconciliation: GAAP to Non-GAAP Results Earnings Per Diluted Share - Quarterly . Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014 Fiscal Year 2015 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 GAAP Net Income per $0.82 $0.01 $0.10 $(0.05) $0.66 $0.17 $0.07 $0.01 $1.18 $0.04 $0.03 $0.71 share Share-based Co
Slide 42: Reconciliation: Free Cash Flow
Reconciliation: Free Cash Flow In thousands Q1 FY2014 Q1 FY2015 Net cash (used in) provided by operating activities ($123) $52,620 Purchases of property, plant and equipment ($17,577) ($16,684) Purchases of intangible assets not related to acquisitions ($75) ($85) Capitalization of software and webs
Slide 43: Reconciliation: TTM Free Cash Flow
Reconciliation: TTM Free Cash Flow In thousands TTM Q1 FY13 TTM Q2 FY13 TTM Q3 FY13 TTM Q4 FY13 TTM Q1 FY14 TTM Q2 FY14 TTM Q3 FY14 TTM Q4 FY14 TTM Q1 FY15 Net cash provided by operating activities $116,750 $124,144 $122,659 $140,012 $133,239 $139,733 $134,740 $148,580 $201,319 Purchase of property,
Slide 44: Reconciliation: TTM ROIC
Reconciliation: TTM ROIC In thousands except percentages TTM Q1 FY13 TTM Q2 FY13 TTM Q3 FY13 TTM Q4 FY13 TTM Q1 FY14 TTM Q2 FY14 TTM Q3 FY14 TTM Q4 FY14 TTM Q1 FY15 Operating Income $45,662 $46,161 $48,110 $46,124 $54,299 $73,780 $69,286 $85,914 $94,385 Tax Provision $(9,878) $(15,196) $(11,989) $(9
Slide 45: Reconciliation: Average Invested Capital
Reconciliation: Average Invested Capital In thousands except percentages Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Total Debt $146,500 $126,500 $229,000 $259,314 $230,500 $238,500 $238,750 $270,000 $204,500 $201,953 $448,059 $447,870 Redeemable N
Slide 46: Reconciliation: Constant-Currency/ex. TTM Acquisition Revenue Growth Rates
Reconciliation: Constant-Currency/ex. TTM Acquisition Revenue Growth Rates - Quarterly ASIA-PACIFIC Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Reported revenue growth 41% 47% 28% 28% 26% 6% 4% (11%) (5%) (3%) 3% 14% Currency impact (4%) (7%) 5% 2%
Slide 47: Reconciliation: Constant-Currency/ex. TTM Acquisition Revenue Growth Rates
Reconciliation: Constant-Currency/ex. TTM Acquisition Revenue Growth Rates - Quarterly NORTH AMERICA Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Reported revenue growth 20% 23% 20% 22% 20% 15% 18% 14% 13% 2% 6% 8% Currency impact 0% 0% 0% 0% 0% 0%