Cimpress Plc · NASDAQ:CMPR
Cimpress — Vistaprint — Q3 FY2014 Earnings Presentation
45 slides from Cimpress's earnings presentation, Apr 30, 2014
Slide 1: Q3 Fiscal Year 2014 Earnings Presentation, Commentary & Financial Results Supplement
Exhibit 99.2 Q3 Fiscal Year 2014 Earnings Presentation, Commentary & Financial Results Supplement April 29, 2014
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: Live Q&A Session: • 5:15 p.m. Eastern • Q3 FY14 overview • Link from the IR section of www.vistaprint.com • Q3 FY14 operating and financial results • Hosted by: • FY14 outlook • Supplementary information • Reconciliation of GAAP to
Slide 4: Quarterly Financial Results
Consolidated Quarterly Financial Results Consolidated Revenue GAAP EPS* $1.50 $371 Non-GAAP EPS* $348 $1.18 $288 $280 $286 $275 $1.02 $250 $251 $0.66 $0.48 $0.45 $0.40 $0.41 $0.25 $0.24 $0.17 $0.10 $0.07 $0.01 $0.04 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 $(0.05) Q4 FY12 Q1 F
Slide 5: Performance Commentary
Performance Commentary • Continue to roll out significant Q3 Net Promoter Score changes to offers and pricing: FY12 FY13 FY14 o US and Germany overhaul launched early in the quarter 60% 50% • Impact was deeper than expected, particularly in the US 40% o Very weak first month, improved 30% trends in
Slide 6: Pricing & Channel Coordination Actions
Pricing & Channel Coordination Actions Action Why do it? Short-Term Impact Lower list prices while lowering • Meet higher expectations • Drives lower engagement in discounting desire for consistent long-standing discount pricing channels: users are no longer • Makes sales and enticed by slashed pric
Slide 7: Recent Acquisitions: People & Print Group, Pixartprinting
Recent Acquisitions People & Print Group, Pixartprinting Attractive standalone cash flow return projections Distinct front end brands Target: graphic professionals and local printers who in turn serve small businesses via high touch, locally focused service offering Will keep customer value proposit
Slide 8: Geographic Expansion: Asia
Geographic Expansion: Asia India • Strong development and growth Japan • Finalized joint venture • Own 51% of venture o Plus approximately 17% of the equity of our partner Plaza Create • Next 18 months will be focused on building local manufacturing, service and value proposition China • Remain comm
Slide 9: Q3 FY 2014 Financial and Operating Metrics
Q3 FY 2014 Financial and Operating Metrics 9
Slide 10: Q3 FY 2014: Key Financial Metrics
Consolidated Q3 FY 2014: Key Financial Metrics Quarter Ended 03/31/2014 Nine Months Ended 03/31/2014 Revenue • $286.2 million • $932.1 million -1% y/y growth 5% y/y growth -1% y/y constant currency growth 5% y/y constant currency growth GAAP Net • $1.4 million • $42.6 million Income* 0.5% net margin
Slide 11: Cash Flow & ROIC Highlights
Consolidated Cash Flow & ROIC Highlights Balance sheet (in millions, as of March 31, 2014) Cash and cash equivalents $46.5 Quarterly cash flows and investments (in millions) Q3FY14 Q3FY13 YTD FY14 YTD FY13 Cash flow from operations $3.1 $8.1 $98.0 $103.3 Free cash flow* $(11.7) $(5.5) $36.5 $30.8 Ca
Slide 12: Geographic Segment Revenue - Quarterly
Consolidated Geographic Segment Revenue - Quarterly (millions) Asia -Pacific Europe Q3 FY2014 North America $20.3 Asia Pacific: $21.5 6% of total revenue -3% y/y growth 10% y/y constant currency $16.4 $15.9 growth $15.6 $15.6 $161.0 $15.1 $17.5 $159.3 Europe: 36% of total revenue $108.3 $94.9 $94.7
Slide 13: Operational Metrics
Consolidated Operational Metrics (Includes Albumprinter and Webs) Average Order Value Orders (M) $40.92 9.8 $40.14 $39.40 $39.08 9.1 $37.75 $37.56 8.3 $36.38 $35.69 $35.79 $35.72 7.8 7.6 $34.61 $34.43 7.3 7.0 7.1 7.1 7.1 5.9 5.6 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 14: Operational Metrics
Consolidated Operational Metrics (Includes Albumprinter and Webs) New Customers Advertising as (million) Implied COCA 3.5 35 $ % of Revenue 35% 3.3 2.9 2.9 3.0 30 $ $28 $28 $29 $28 30% $27 $27 $27 27% 2.6 $26 $26 26% 2.4 $26 26% 2.6 $25 $25 25% 24% 2.5 25 $ 25% 24% 23% 23% 23% 23% 22% 2.3 21% 2.3 2.
Slide 15: Historical Revenue Driver Metrics
Consolidated Historical Revenue Driver Metrics (Includes Albumprinter and Webs) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 TTM* Unique Customers (M) TTM Unique Customers (M) 15.0 15.8 16.6 16.9 17.0 17.1 16.9 16.8 TTM New Customers (M) 9.6 10.1 10.5 10.5 10.5 10.4 10.0 9.8 16.9
Slide 16: Historical Revenue Driver Metrics
Consolidated Historical Revenue Driver Metrics (Includes Albumprinter and Webs) Average TTM* Bookings Per Unique Customer (USD) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 Average TTM Bookings per $68 $67 $67 $68 $69 $70 $72 $73 $97 $98 $100 Unique Customer $98 $97 $96 $96 $101 A
Slide 17: Looking Ahead
Looking Ahead ISTAPTINE sore sninowsson
Slide 18: FY 2014 Outlook Commentary (Revenue)
FY 2014 Outlook Commentary (Revenue) Revenue Reason for Change Amount Prior Guidance Midpoint - $1250M Operational outlook lowered ~($27)M +/- Currency impact negligible Revenue from acquisitions ~$37M +/- New Guidance Midpoint $1260M 18
Slide 19: FY 2014 Outlook Commentary (EPS)
FY 2014 Outlook Commentary (EPS) GAAP EPS Reason for Change Amount Prior Guidance Midpoint - $1.68 Operational outlook change ~($0.03) +/- Dilution from acquisitions ~($0.16) +/- Write-off of minority investment ~($0.41) +/- New Guidance Midpoint $1.08 Non-GAAP EPS Reason for Change Amount Prior Gui
Slide 20: Revenue and EPS Guidance
Consolidated Revenue and EPS Guidance* (as of January 29, 2014) FY14 ending 06/30/2014 Revenue $1,250 - $1,270 Revenue growth from FY 2013 period 7% - 9% Constant currency revenue growth estimate 7% - 9% Constant currency revenue growth estimate excluding acquisitions 4% - 6% GAAP EPS $1.00 - $1.15
Slide 21: Capital Expenditures Guidance
Consolidated Capital Expenditures Guidance (as of April 29, 2014) Expressed as percent of revenue FY 2014 Guidance: 25% • $70M - $80M • ~6% of revenue 3% guidance midpoint 8% 16% 15% 15% Other 3% 2% 3% Land and Facilities 7% 7% Manufacturing & 9% 7% Automation Equipment 14% 6% 6% 5% 5% 2% 1% 1% 2% 2
Slide 22: Summary
Summary • Focus: strategic initiatives and operational implementation • Patient with our slower revenue growth • Commitment to: o Cash flow return-based investment decisions o Investing for long term competitive advantage o Belief in the opportunity for • Organic growth of revenue • Cash flow per sh
Slide 23: 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 April 29, 2014
Slide 24: Q3 Fiscal Year 2014 Financial and Operating Results Supplement
Q3 Fiscal Year 2014 Financial and Operating Results Supplement
Slide 25: Total Company Growth Rates
Consolidated Total Company Growth Rates* 30% 25% 20% 15% 10% -1% 5% Constant-Currency constant- Reported currency 0% -1% Q4 FY11 Q1 FY12 Q2 FY12* Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 reported FY11 FY12 FY13 YTD FY14 -5% 22% constant- 25% constant-currency growth 16
Slide 26: Segment Revenue Growth Rates
Consolidated Segment Revenue Growth Rates* Constant Currency APAC Europe North America 50% 50% 50% 45% 40% 39% 40% 37% 40% 37% 40% 33% 34% 30% 29% 30% 30% 30% 24% 22% 23% 23%21% 22% 21% 20% 20% 20% 20% 18% 18% 20% 15% 14% 14% 17% 10% 15% 8% 10% 10% 10% 8% 10% 6% 2% 2% 2% 0% 0% -2% 0% 3% -7% -10% -10
Slide 27: Gross Margin and Gross Profit
Consolidated Gross Margin and Gross Profit Gross Profit (millions) GM % 67.4% 64.6% 66.8% 67.2% 65.2% 65.5% 64.6% 65.0% 65.5% 63.9% 63.2% 64.7% $250 $234 $200 $189 $185 $181 $169 $163 $162 $179 $133 $134 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14
Slide 28: 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 $32 6.9% 6.6% $23 3.8% $14 2.0% $8 1.5% $6 0.8% 0.1% $4 0.5% $2 0.1% $0 -0.7% $0 $1 $(2) - Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3
Slide 29: Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Net Margin
Consolidated Non-GAAP Adjusted Net Income* and 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% 9.4% 5.9% 6.1% 5.9% 5.9% $20 4.4% $17 5.0% $15 3.5% $16 $14 2.9% $13 $11 $9 $8 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY1
Slide 30: Q3 Income Statement Comparison to Prior Year
Consolidated Q3 Income Statement Comparison to Prior Year (as a percentage of revenue) 35.3% 34.5% Cost of revenue Marketing and selling Technology and development 38.1% 38.2% General and administrative Income from operations 14.8% 14.9% 10.0% 9.0% 1.8% 3.4% Q3 FY2014 Q3 FY2013 30
Slide 31: Q3 Income Statement Comparison to Prior Quarter
Consolidated Q3 Income Statement Comparison to Prior Quarter (as a percentage of revenue) 35.3% 32.6% Cost of revenue Marketing and selling Technology and development 33.5% 38.1% General and administrative Income from operations 11.5% 14.8% 8.2% 10.0% 14.2% 1.8% Q3 FY2014 Q2 FY2014 31
Slide 32: Share-Based Compensation (millions)
Consolidated Share-Based Compensation* (millions) $8.6 $8.4 $8.5 $8.4 $8.6 $8.3 $8.1 $7.6 $5.8 $5.1 $4.9 $5.0 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 FY11 $22.4 FY12 $26.1 FY13 $33.7 YTD FY14 $22.5 * Share-based compensation (SBC) expense inclu
Slide 33: Revenue Seasonality
Consolidated Revenue Seasonality (Includes Albumprinter and Webs as of the dates of acquisition) Small Business Marketing* Home and Family* $371 $348 $300 $288 $280 $286 $275 $258 $250 $251 $209 $212 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 * Ho
Slide 34: Balance Sheet Highlights
Consolidated Balance Sheet Highlights Balance Sheet highlights, in millions, at period end 03/31/2014 12/31/13 09/30/2013 06/30/13 03/31/13 Total assets $672.0 $674.6 $638.7 $601.6 $616.4 Cash and cash equivalents $46.5 $62.3 $64.7 $50.1 $51.3 Total current assets $126.0 $135.5 $121.8 $100.2 $104.4
Slide 35: Total Debt as of March 31, 2014
Consolidated Total Debt as of March 31, 2014 • Aggregate loan commitments of $798.0M • Interest rate of LIBOR plus 1.50% - 2.0%, depending on leverage • Currently in compliance with all covenants. Key financial covenants are: o Total leverage ratio not to exceed 3.25x TTM EBITDA (reducing to 3.0x on
Slide 36: Q3 FY14 Capital Expenditure Breakdown
Consolidated Q3 FY14 Capital Expenditure Breakdown Q3 FY14 CapEx: $11.8M 16% 1 Land/Facilities 32% 2 Mfg & Automation Equipment 3 52% Other 1 Land, building and construction, leasehold improvements, and furniture and fixtures 2 All manufacturing and automation equipment, including offset and digital
Slide 37: Appendix
Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 38: About non-GAAP financial measures
About non-GAAP financial measures To supplement Vistaprint’s consolidated financial statements presented in accordance with U.S. generally accepted accounting principles, or GAAP, Vistaprint has used the following measures defined as non-GAAP financial measures by Securities and Exchange Commission,
Slide 39: Reconciliation: GAAP to Non-GAAP Results
Reconciliation: GAAP to Non-GAAP Results Net Income (Loss) – Annual ($ in thousands) FY 2003 FY 2004 FY 2005* FY 2006 FY 2007 FY 2008 FY 2009 FY2010 FY2011 FY2012 FY2013 GAAP Net Income $473 $3,440 ($16,218) $19,234 $27,143 $39,831 $55,686 $67,741 $82,109 $43,994 $29,435 Share-based compensation and
Slide 40: Reconciliation: GAAP to Non-GAAP Results
Reconciliation: GAAP to Non-GAAP Results Net Income (Loss) – Quarterly ($ in thousands) Fiscal . Fiscal Year 2012 Fiscal Year 2013 FY2014 Year 2011 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 GAAP Net Income* $14,397 $8,172 $31,697 $274 $3,851 $(1,696) $22,960 $5,866 $2,305 $412 $40,875 $1,376 Share-based c
Slide 41: Reconciliation: GAAP to Non-GAAP Results
Reconciliation: GAAP to Non-GAAP Results Diluted Earnings Per Share - Annual FY 2006 FY 2007 FY 2008 FY 2009 FY2010 FY2011 FY2012 FY2013 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 $0.09 $0.18 $0.31 $0.43 $0.49 $0.47 $0.65 $0.95 related tax
Slide 42: Reconciliation: GAAP to Non-GAAP Results
Reconciliation: GAAP to Non-GAAP Results Earnings Per Diluted Share - Quarterly Fiscal . Fiscal Year 2012 Fiscal Year 2013 FY2014 Year 2011 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 GAAP Net Income per $0.32 $0.19 $0.82 $0.01 $0.10 $(0.05) $0.66 $0.17 $0.07 $0.01 $1.18 $0.04 share Share-based Compensation
Slide 43: Reconciliation: Free Cash Flow
Reconciliation: Free Cash Flow (in thousands) Three Months Ended Nine Months Ended March 31, March 31, 2014 2013 2014 2013 Net cash provided by operating activities $ 3,142 $ 8,135 $ 98,046 $ 103,318 Purchases of property, plant and (11,830) (11,155) (53,999) (66,523) equipment Purchases of intangib
Slide 44: Reconciliation: Constant-Currency Revenue Growth Rates Quarterly
Reconciliation: Constant-Currency Revenue Growth Rates Quarterly ASIA-PACIFIC Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Reported revenue growth 65% 67% 41% 47% 28% 28% 26% 6% 4% (11%) (5%) (3%) Currency impact (26%) (22%) (4%) (7%) 5% 2% (3%) 4%
Slide 45: Reconciliation: Constant-Currency Revenue Growth Rates Quarterly
Reconciliation: Constant-Currency Revenue Growth Rates Quarterly NORTH AMERICA Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Reported revenue growth 18% 17% 20% 23% 20% 22% 20% 15% 18% 14% 13% 2% Currency impact 0% 0% 0% 0% 0% 0% 0% 0% 0% 1% 1% 1% Re