Cimpress Plc · NASDAQ:CMPR
Cimpress — Vistaprint — Q2 FY2014 Earnings Presentation
42 slides from Cimpress's earnings presentation, Jan 30, 2014
Slide 1: Q2 Fiscal Year 2014 Earnings Presentation, Commentary & Financial Results Supplement
Exhibit 99.2 Q2 Fiscal Year 2014 Earnings Presentation, Commentary & Financial Results Supplement January 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 • Q2 FY14 overview • Link from the IR section of www.vistaprint.com • Q2 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 $275 $258 $1.02 $250 $251 $0.66 $0.48 $0.45 $0.40 $0.41 $0.29 $0.25 $0.17 $0.10 $0.07 $0.01 $0.01 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 $(0.05) Q3 FY12 Q4 F
Slide 5: FY14 Operational Performance: Invigorate the Core Business
FY14 Operational Performance: Invigorate the Core Business Strategy Element Description Long-Term Goals Q2FY14 Examples Change from short-term Increase customer satisfaction, • Continued to roll out pricing and transaction-focused decision- loyalty and life time value messaging changes in various ma
Slide 6: FY14 Operational Performance: Build Foundations for Future Growth
FY14 Operational Performance: Build Foundations for Future Growth Strategy Element Description Long-Term Goals Q2FY14 Examples Digital Marketing Digital small business marketing Lay foundations for continued rapid • Total Q2 digital marketing offerings (websites, email growth five and more years in
Slide 7: Q2 FY 2014 Financial and Operating Results
Q2 FY 2014 Financial and Operating Results 7
Slide 8: Q2 FY 2014: Key Financial Metrics
Consolidated Q2 FY 2014: Key Financial Metrics Quarter Ended 12/31/2013 Six Months Ended 12/31/2013 Revenue • $370.8 million • $645.9 million 6% y/y growth 8% y/y growth 6% y/y constant currency growth 7% y/y constant currency growth GAAP Net • $40.9 million • $41.3 million Income 11.0% net margin v
Slide 9: Cash Flow & ROIC Highlights
Consolidated Cash Flow & ROIC Highlights Balance sheet (in millions, as of December 31, 2013) Cash and cash equivalents $62.3 Quarterly cash flows and investments (in millions) Q2FY14 Q2FY13 Cash flow from operations $95.0 $88.5 Free cash flow* $67.8 $58.7 Capital expenditures $24.6 $27.6 as % of re
Slide 10: Geographic Segment Revenue - Quarterly
Consolidated Geographic Segment Revenue - Quarterly (millions) Asia-Pacific Europe Q2 FY2014 North America $20.3 Asia Pacific: $21.5 5% of total revenue -5% y/y growth 6% y/y constant currency $16.4 $15.6 growth $15.6 $161.0 $15.4 $159.3 Europe: $15.1 $17.5 $108.3 $94.9 43% of total revenue $94.7 1%
Slide 11: Operational Metrics
Consolidated Operational Metrics (Includes Albumprinter and Webs as of acquisition dates) Orders (M) Average Order Value $40.92 9.8 $39.40 $39.08 9.1 $37.75 $37.56 8.3 $36.03 $36.38 $35.69 $35.79 $35.72 7.8 7.6 $34.61 $34.43 7.0 7.1 7.1 7.1 5.8 5.9 5.6 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 12: Operational Metrics
Consolidated 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. 12
Slide 13: Historical Revenue Driver Metrics
Consolidated Historical Revenue Driver Metrics (Includes Albumprinter and Webs as of acquisition dates) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 TTM* Unique Customers (M) FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 TTM Unique Customers (M) 14.2 15.0 15.8 16.6 16.9 17.0 17.1 16.9 TTM New Customers (M) 9.1 9.6 10.1 10.5 1
Slide 14: Historical Revenue Driver Metrics
Consolidated Historical Revenue Driver Metrics (Includes Albumprinter and Webs as of acquisition dates) Average Bookings Per Unique Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Customer (USD) FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 Average Bookings per $69 $68 $67 $67 $68 $69 $70 $72 Unique Customer $99 $98 $97 $96 $96
Slide 15: Looking Ahead
Looking Ahead ISTAPTINE sore sninowsson
Slide 16: FY14 Outlook Commentary
FY14 Outlook Commentary • Revenue guidance range changes: o ~6% to 8% constant currency growth • North America growth in low to mid teens • Europe growth roughly flat • APAC growth in mid single digits o At low end of former expectation range o We are patient with low revenue growth rates this year,
Slide 17: Revenue and EPS Guidance
Consolidated Revenue and EPS Guidance* (as of January 29, 2014) FY14 ending 06/30/2014 Revenue $1,235 - $1,265 Revenue growth from FY 2013 period 6% - 8% Constant currency revenue growth estimate 6% - 8% GAAP EPS $1.55 - $1.80 EPS growth from FY 2013 period 82% - 112% GAAP share count 34.5 million T
Slide 18: Capital Expenditures Guidance
Consolidated Capital Expenditures Guidance (as of January 29, 2014) Expressed as percent of revenue FY 2014 Guidance: 25% $80M - $90M 6% - 7% of revenue 3% guidance midpoint 8% 16% Other 15% 15% 3% 2% 3% Land and Facilities 7% 7% Manufacturing & 7% 7% Automation Equipment 9% 14% 6% 5% 5% 2% 2% 1% 1%
Slide 19: Summary
Summary • Focus on strategic initiatives and operational implementation • Patient with our slower revenue growth • Strong profit execution • Continued focus on driving: o Competitive advantage o Long-term revenue and profit growth o Significant value for long-term shareholders 19
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 EST on January 29, 2014
Slide 21: Q2 Fiscal Year 2014 Financial and Operating Results Supplement
Q2 Fiscal Year 2014 Financial and Operating Results Supplement
Slide 22: Total Company Growth Rates
Consolidated Total Company Growth Rates* 30% 25% 20% 15% 6% constant-currency 6% 10% Constant-Currency reported Reported 5% 0% Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12* Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 FY11 FY12 FY13 YTD FY14 22% constant-currency growth 25% constant-currency g
Slide 23: Segment Revenue Growth Rates
Consolidated 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 avera
Slide 24: Gross Margin and Gross Profit
Consolidated Gross Margin and Gross Profit Gross Profit (millions) GM % 65.5% 65.2% 66.8% 67.2% 64.6% 67.4% 65.3% 65.5% 64.6% 65.0% 63.9% 63.2% $250 $234 $200 $189 $179 $169 $163 $162 $181 $133 $133 $134 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14
Slide 25: GAAP Net Income (Loss) and Net Margin
Consolidated GAAP Net Income (Loss) and Net Margin GAAP Net Income (loss), in millions GAAP Net Margin 11.3% 10.6% 11.0% $41 6.9% $32 6.6% $23 $23 3.8% $14 2.0% $8 1.5% $6 0.8% 0.1% 0.1% $4 $2 $0 -0.7% $0 $(2) Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2
Slide 26: 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% 13.8% 12.6% $38 $36 9.4% 10.3% $28 6.1% 5.9% 5.9% $20 4.4% 5.9% 5.0% 3.5% $17 $16 $13 $15 $14 $11 $9 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 F
Slide 27: Q2 Income Statement Comparison to Prior Year
Consolidated Q2 Income Statement Comparison to Prior Year (as a percentage of revenue) 32.6% 32.8% Cost of revenue Marketing and selling Technology and development 33.5% 38.6% General and administrative Income from operations 11.5% 11.5% 8.2% 7.6% 14.2% 9.5% Q2 FY2014 Q2 FY2013 27
Slide 28: Q2 Income Statement Comparison to Prior Quarter
Consolidated Q2 Income Statement Comparison to Prior Quarter (as a percentage of revenue) 32.6% 34.8% Cost of revenue Marketing and selling Technology and development 33.5% 37.2% General and administrative Income from operations 11.5% 8.2% 15.4% 14.2% 9.5% 3.1% Q2 FY2014 Q1 FY2014 28
Slide 29: Share-Based Compensation (millions)
Consolidated Share-Based Compensation* (millions) $8.6 $8.6 $8.4 $8.5 $8.4 $8.3 $8.1 $7.6 $5.3 $5.1 $4.9 $5.0 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 FY11 $22.4 FY12 $26.1 FY13 $33.7 YTD FY14 $16.6 * Share-based compensation (SBC) expense inclu
Slide 30: Revenue Seasonality
Consolidated Revenue Seasonality (Includes Albumprinter and Webs as of the dates of acquisition) $371 Small Business Marketing* Home and Family* $348 $300 $288 $280 $275 $258 $250 $251 $209 $212 $204 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 * Ho
Slide 31: Balance Sheet Highlights
Consolidated Balance Sheet Highlights Balance Sheet highlights, in millions, at period end 12/31/13 09/30/2013 06/30/13 03/31/13 12/31/12 Total assets $674.6 $638.7 $601.6 $616.4 $653.7 Cash and cash equivalents $62.3 $64.7 $50.1 $51.3 $64.7 Total current assets $135.5 $121.8 $100.2 $104.4 $132.3 Go
Slide 32: Total Debt as of December 31, 2013
Consolidated Total Debt as of December 31, 2013 • Aggregate loan commitments of $496.3M • 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 3.5x TTM EBITDA (reducing to 3.25x
Slide 33: Q2 FY14 Capital Expenditure Breakdown
Consolidated Q2 FY14 Capital Expenditure Breakdown Q2 FY14 CapEx: $24.6M 22% 17% Land/Facilities1 2 Mfg & Automation Equipment 61% Other3 1 Land, building and construction, leasehold improvements, and furniture and fixtures 2 All manufacturing and automation equipment, including offset and digital p
Slide 34: Appendix
Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 35: About non-GAAP financial measures
About non-GAAP financial measures To supplement Vistaprint’s consolidated financial statements presented in accordance with U.S. generally accepted accounting principles, or GAAP, Vistaprint has used the following measures defined as non-GAAP financial measures by Securities and Exchange Commission,
Slide 36: Reconciliation: GAAP to Non-GAAP Results
Reconciliation: GAAP to Non-GAAP Results Net Income (Loss) – Annual ($ 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 $29,435 Share-based compensation and
Slide 37: Reconciliation: GAAP to Non-GAAP Results
Reconciliation: GAAP to Non-GAAP Results Net Income (Loss) – Quarterly ($ in thousands) . Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 FY2014 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 GAAP Net Income $22,917 $14,397 $8,172 $31,697 $274 $3,851 $(1,696) $22,960 $5,866 $2,305 $412 $40,875 Share-based c
Slide 38: 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 related tax effect per $0.09 $0.18 $0.31 $0.43 $0.49 $0.47 $
Slide 39: Reconciliation: GAAP to Non-GAAP Results
Reconciliation: GAAP to Non-GAAP Results Earnings Per Diluted Share - Quarterly . Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 FY2014 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 GAAP Net Income per $0.51 $0.32 $0.19 $0.82 $0.01 $0.10 $(0.05) $0.66 $0.17 $0.07 $0.01 $1.18 share Share-based Compensation
Slide 40: Reconciliation: Free Cash Flow
Reconciliation: Free Cash Flow (in thousands) Three Months Ended Six Months Ended December 31, December 31, 2013 2012 2013 2012 Net cash provided by operating activities $ 95,027 $ 88,533 $ 94,904 $ 95,183 Purchases of property, plant and (24,592) (27,609) (42,169) (55,368) equipment Purchases of in
Slide 41: Reconciliation: Constant-Currency Revenue Growth Rates Quarterly
Reconciliation: Constant-Currency Revenue Growth Rates Quarterly ASIA-PACIFIC Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Reported revenue growth 50% 65% 67% 41% 47% 28% 28% 26% 6% 4% (11%) (5%) Currency impact (15%) (26%) (22%) (4%) (7%) 5% 2% (3%
Slide 42: Reconciliation: Constant-Currency Revenue Growth Rates Quarterly
Reconciliation: Constant-Currency Revenue Growth Rates Quarterly NORTH AMERICA Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Reported revenue growth 21% 18% 17% 20% 23% 20% 22% 20% 15% 18% 14% 13% Currency impact 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 1% 1% R