Cimpress Plc · NASDAQ:CMPR
Cimpress — Vistaprint — Q4 FY2013 Earnings Presentation
53 slides from Cimpress's earnings presentation, Aug 5, 2013
Slide 1: Q4 & Fiscal Year 2013 Earnings Presentation, Commentary & Financial Results Supplement
Exhibit 99.2 Q4 & Fiscal Year 2013 Earnings Presentation, Commentary & Financial Results Supplement August 1, 2013
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: • Annual overview • 5:15 p.m. Eastern • Q4 & FY13 operating and • Link from the IR section of financial results www.vistaprint.com • FY14 guidance • Supplementary information • Hosted by: • Reconciliation of GAAP t
Slide 4: Historical Annual Revenue and Net Income
Historical Annual Revenue and Net Income Revenue ($M) GAAP Net Income $105 Organic Revenue $1,168 Non-GAAP Adjusted Net Income Albumprinter $91 $1,020 Webs $82 $76 $77 $76 $817 $68 $670 $55 $56 $516 $44 $40 $36 $401 $29 $27 $256 $23 $19 $152 $91 $5 $35 $59 $0.5 $3 Millions, fiscal year ending June 3
Slide 5: Annual Overview
Annual Overview Fiscal 2013 Financial and Operating Results • Revenue: mixed results o Continued strong results in North America o Europe and APAC lower than earlier expectations; making organizational progress to improve results over time • Earnings: balanced approach in light of revenue weakness C
Slide 6: FY13 Operational Performance: Invigorate the Core Business
FY13 Operational Performance: Invigorate the Core Business Strategy Element Description Long-Term Goals FY13 Results/Examples Major improvements to customer Change success metrics from • Continued improvement in net experience, satisfaction and loyalty short-term transaction-focused promoter score,
Slide 7: FY13 Operational Performance: Build Foundations for Future Growth
FY13 Operational Performance: Build Foundations for Future Growth Strategy Element Description Long-Term Goals FY13 Results/Examples Digital Marketing Digital small business marketing Lay foundations for continued rapid • Total FY13 digital marketing offerings (websites, email growth five and more y
Slide 8: FY13 Operational Performance: Supporting Elements
FY13 Operational Performance: Supporting Elements Strategy Element Description Long-Term Goals FY13 Results/Examples Resource Ramp Commit to multi-year resource Early resource investments turn Over 300 new team members in ramp to support strategy elements into scale advantage over time FY13 (incl. a
Slide 9: Q4 & FY 2013 Financial and Operating Results
Q4 & FY 2013 Financial and Operating Results 9
Slide 10: Q4 FY 2013: Key Financial Metrics
Consolidated Q4 FY 2013: Key Financial Metrics* Quarter Ended 06/30/2013 Fiscal Year Ending 06/30/2013 Revenue • $280.1 million • $1,167.5 million 12% y/y growth 14% y/y growth 12% y/y constant currency growth 16% y/y constant currency growth 11% y/y organic constant currency 12% y/y organic constan
Slide 11: Cash Flow & ROIC Highlights
Consolidated Cash Flow & ROIC Highlights* Balance sheet (in millions, as of June 30, 2013) Cash and cash equivalents $50.1 Quarterly cash flows and investments (in millions) Q4FY13 Q4FY12 FY13 FY12 Cash flow from operations $36.7 $19.3 $140.0 $140.6 Free cash flow** $21.8 $4.6 $52.6 $88.5 Capital ex
Slide 12: Geographic Segment Revenue - Annual
Geographic Segment Revenue - Annual (millions) FY2013 North America Webs (inc NA) Asia Pacific Europe 6% of total revenue 16% y/y growth Albumprinter (inc EU) $71.0 17% y/y constant currency growth Asia-Pacific $67.1 $61.2 $40.4 Europe: 39% of total revenue $385.1 9% y/y growth $42.5 $374.8 11% y/y
Slide 13: Geographic Segment Revenue - Quarterly
Consolidated Geographic Segment Revenue - Quarterly (millions) Asia-Pacific Albumprinter (inc. in Europe) Q4 FY2013 Europe $21.5 Webs (inc. in North America) $22.8 Asia Pacific: North America $17.0 6% of total revenue $16.4 4% y/y growth $15.7 $15.6 $15.1 8% y/y constant currency $13.8 $15.4 growth
Slide 14: Operational Metrics
Organic Operational Metrics (Excludes Albumprinter and Webs) Orders (M) Average Order Value $40.40 $38.43 9.0 $37.75 $36.73 $36.78 8.3 $36.17 $36.03 $36.38 $36.25 $35.38 $34.69 $34.61 7.2 7.0 6.5 6.4 6.5 6.5 5.8 5.9 5.6 5.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY11
Slide 15: Operational Metrics
Organic Operational Metrics (Excludes Albumprinter and Webs) New Customers Advertising as (million) Implied COCA % of Revenue 3.5 35 $ 35% 3.0 30 $ 30% $27 $28 $27 $26 $26 $27 27% 27% $26 26% 26% $25 $25 25% 2.5 25 $ $24 $24 25% 24% 24% $23 22% 23% 2.2 21% 21% 21% 2.0 20 $ 20% 1.5 15 $ 15% 1.0 10 $
Slide 16: Historical Revenue Driver Metrics
Organic Historical Revenue Driver Metrics (Quarterly) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 TTM* Unique Customers (M) TTM Unique Customers (M) 11.9 12.9 13.8 14.4 14.9 15.4 15.7 15.8 15.8 TTM New Customers (M) 7.7 8.4 9.0 9.4 9.7 10.0 10.1 10.1 15.4 15.7 14.9 14.4 TTM Repea
Slide 17: Historical Revenue Driver Metrics
Organic Historical Revenue Driver Metrics Average Bookings Per Unique Customer (USD) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 Average Bookings per $73 $71 $69 $68 $67 $67 $68 $69 $102 $100 $99 $99 Unique Customer $100 $97 $98 $98 Average Bookings per New $55 $53 $52 $51 $50 $5
Slide 18: Looking Ahead
Looking Ahead ISEAPTINE snie ov inomssen
Slide 19: FY14 Outlook Commentary
FY14 Outlook Commentary • Revenue guidance range of 7% to 11% constant currency growth 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 largest markets o Asia-Pacific growth rates in high single to l
Slide 20: Looking ahead Longer-Term
Looking ahead Longer-Term • We have a large market opportunity • Revenue outlook lower given our FY13 performance and our FY14 plan o Longer-term revenue growth rates dependent on our ability to improve European business • Longer-term earnings outlook o Possible but less likely to achieve previous o
Slide 21: Financial Guidance
Consolidated Financial Guidance* (as of August 1, 2013) FY14 ending 06/30/2014 Revenue $1,235 - $1,285 Revenue growth from FY 2013 period 6% - 10% Constant currency revenue growth estimate 7% - 11% GAAP EPS $1.35 - $1.70 EPS growth from FY 2013 period 59% - 100% GAAP share count 34.4 million The Com
Slide 22: Capital Expenditures Guidance
Consolidated Capital Expenditures Guidance (as of August 1, 2013) Expressed as percent of revenue FY 2014 Guidance: 25% • $85M - $100M • 7% - 8% of revenue 3% guidance midpoint 8% 16% Other 15% 15% 3% 2% 3% Land and Facilities 7% 7% Manufacturing & 8% Automation Equipment 9% 7% 7% 14% 2% 5% 5% 2% 2%
Slide 23: Guidance and Metrics Disclosure
Guidance and Metrics Disclosure • Not providing quarterly earnings guidance, only annual o Per practice we began one year ago • No longer providing quarterly revenue guidance o Per announcement in last earnings call • Will no longer break out separate metrics for 2011 acquisitions (Albumprinter and
Slide 24: Summary
Summary • FY13 results o Solid revenue relative to re-set expectations but lower growth than original plan for the year o Earnings ahead of initial plan • Continued focus on strategic initiatives • Believe we have the right strategy to drive: o Long-term revenue and profit growth o Competitive advan
Slide 25: 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 August 1, 2013
Slide 26: Q4 Fiscal Year 2013 Financial and Operating Results Supplement
Q4 Fiscal Year 2013 Financial and Operating Results Supplement
Slide 27: Quarterly Financial Results
Consolidated Quarterly Financial Results Webs revenue (millions) GAAP EPS* Albumprinter revenue (millions) Non-GAAP EPS* $1.02 Organic revenue (millions) $348 $0.97 $300 $288 $0.82 $280 $258 $250 $251 $0.66 $212 $0.48 $0.40 $0.41 $0.31 $0.29 $0.25 $0.19 $0.17 $0.10 $0.07 $0.01 Q1 FY12 Q2 FY12 Q3 FY1
Slide 28: Total Company Organic Growth Rates
Organic Total Company Organic Growth Rates (Excludes Albumprinter and Webs) 30% 25% 20% 15% 12% constant-currency 10% 11% Constant-Currency reported Reported 5% 0% Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 FY10 FY11 FY12 FY13 28% constant- 22% co
Slide 29: Segment Revenue Growth Rates
Organic Segment Revenue Growth Rates Constant Currency Organic APAC Europe 50% North American 50% 45% 50% 43% 39% 40% 40% 37% 40% 36% 40% 35% 33% 29% 30% 30% 30% 27% 30% 24% 22% 22% 21% 21% 21% 20% 20% 20% 18% 20% 17% 21% 18% 19% 17% 15% 18% 18% 15% 16% 11% 10% 10% 9% 10% 10% 8% 5% 1% 2% 0% 0% 0% 29
Slide 30: Gross Margin and Gross Profit
Consolidated Gross Margin and Gross Profit Gross Profit (millions) GM % 67.2% 65.5% 66.3% 66.8% 65.5% 65.3% 64.6% 65.0% 64.6% 63.1% 63.9% 63.2% $234 $200 $189 $181 $169 $162 $163 $155 $133 $133 $134 $108 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13
Slide 31: GAAP Net Income (Loss) and Net Margin
Consolidated GAAP Net Income (Loss) and Net Margin GAAP Net Income (loss), in millions GAAP Net Margin 14.5% 15.0% 13.0% 11.3% 10.6% 11.0% 9.0% 6.9% $34 7.0% 6.3% $32 6.6% 3.8% 5.0% $23 $23 2.0% 3.0% 1.5% 0.1% 0.8% $14 -0.7% 1.0% $11 $8 -1.0% $6 $4 -3.0% $2 $0 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12
Slide 32: Non-GAAP Adjusted Net Income and Adjusted Net Margin
Consolidated Non-GAAP Adjusted Net Income* and Adjusted Net Margin Non-GAAP Adjustment Net Income (millions) Non-GAAP Adjustment Net Margin 17.3% 13.8% $40 12.6% $38 $36 10.3% 9.6% 9.4% $28 5.9% 6.1% 4.4% 5.9% $20 5.0% $16 $17 3.5% $15 $14 $13 $11 $9 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q
Slide 33: Fiscal Year Income Statement
Consolidated Fiscal Year Income Statement (as a percentage of revenue) 34.3% 34.8% Cost of revenue Marketing and selling Technology and development 38.2% 36.8% General and administrative Income from operations 14.1% 12.7% 9.4% 10.3% 4.0% 5.4% FY2013 FY2012 33
Slide 34: Q4 Income Statement Comparison to Prior Year
Consolidated Q4 Income Statement Comparison to Prior Year (as a percentage of revenue) 35.4% 35.4% Cost of revenue Marketing and selling Technology and development 36.3% 36.3% General and administrative Income from operations 15.8% 14.8% 11.4% 11.5% 1.1% 2.0% Q4 FY2013 Q4 FY2012 34
Slide 35: Q4 Income Statement Comparison to Prior Quarter
Consolidated Q4 Income Statement Comparison to Prior Quarter (as a percentage of revenue) 35.4% 34.5% Cost of revenue Marketing and selling Technology and development 36.3% 38.2% General and administrative Income from operations 15.8% 14.9% 11.4% 9.0% 1.1% 3.4% Q4 FY2013 Q3 FY2013 35
Slide 36: Share-Based Compensation
Consolidated Share-Based Compensation* (millions) $8.6 $8.4 $8.5 $8.4 $8.3 $7.6 $6.4 $5.6 $5.3 $5.1 $5.0 $4.9 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 FY11 $22.4 FY12 $26.1 FY13 $33.7 * Share-based compensation (SBC) expense includes SBC-related
Slide 37: Revenue Seasonality
Organic Revenue Seasonality (Excludes Albumprinter and Webs) $323 Small Business Marketing Home and Family* $284 $270 $261 $244 $234 $235 $233 $209 $212 $204 $167 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 * Home and family revenue is calculated u
Slide 38: Q4 FY 2013 Bookings by Marketing Channel
Organic Q4 FY 2013 Bookings by Marketing Channel (excludes Albumprinter and Webs bookings) ~2.2 million new customers in Q4 FY2013 Our Own Permission-Based 3 rd Party Permission- email Based email Our Own Permission-Based Other email Channels and Partners Paid Search Repeat Order Bookings: 69% First
Slide 39: Balance Sheet Highlights
Consolidated Balance Sheet Highlights Balance Sheet highlights, in millions, at period end 06/30/13 03/31/13 12/31/12 09/30/12 06/30/12 Total assets $601.6 $616.4 $653.7 $620.5 $592.4 Cash and cash equivalents $50.1 $51.3 $64.7 $59.3 $62.2 Total current assets $100.2 $104.4 $132.3 $114.6 $115.6 Good
Slide 40: Total Debt
Consolidated Total Debt • Credit facility in place with aggregate loan commitments of $498.8M • Interest rate is LIBOR plus 1.25% - 2.0%, depending on leverage • Currently in compliance with all covenants. Key covenants are: o Total leverage ratio not to exceed 3.5x TTM EBITDA (reducing to 3.25x in
Slide 41: Q4 and FY13 Capital Expenditure Breakdown
Consolidated Q4 and FY13 Capital Expenditure Breakdown Q4 CapEx: $12.5M FY13 CapEx: $79.0M 23% 1 Land/Facilities 36% 47% 51% 2 Mfg & Automation Equipment 26% Other 3 17% 1 Land, building and construction, leasehold improvements, and furniture and fixtures 2 All manufacturing and automation equipment
Slide 42: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 43: About non-GAAP financial measures
About non-GAAP financial measures To supplement Vistaprint’s consolidated financial statements presented in accordance with U.S. generally accepted accounting principles, or GAAP, Vistaprint has used the following measures defined as non-GAAP financial measures by Securities and Exchange Commission,
Slide 44: About non-GAAP financial measures continued
About non-GAAP financial measures continued… Vistaprint’s management believes that these non-GAAP financial measures provide meaningful supplemental information in assessing our performance and when forecasting and analyzing future periods. These non-GAAP financial measures also have facilitated man
Slide 45: Reconciliation: GAAP to Non-GAAP Results
Reconciliation: GAAP to Non-GAAP Results Net Income – Annual ($ 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 $0 $0
Slide 46: Reconciliation: GAAP to Non-GAAP Results
Reconciliation: GAAP to Non-GAAP Results Net Income (Loss) – Quarterly ($ in thousands) . Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GAAP Net Income $10,781 $34,014 $22,917 $14,397 $8,172 $31,697 $274 $3,851 $(1,696) $22,960 $5,866 $2,305 Share-based compe
Slide 47: 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 $0.09 $0.18 $0.31 $0.43 $0.49 $0.47 $0.65 $0.95 Per Share* Amort
Slide 48: 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GAAP Net Income Per $0.24 $0.75 $0.51 $0.32 $0.19 $0.82 $0.01 $0.10 $(0.05) $0.66 $0.17 $0.07 Share Share-based $0.12 $0.14 $0.12 $
Slide 49: Reconciliation: Free Cash Flow
Reconciliation: Free Cash Flow (in thousands) Three Months Ended Twelve Months Ended June 30, June 30, 2013 2012 2013 2012 Net cash provided by operating activities $ 36,694 $ 19,341 $ 140,012 $ 140,641 Purchases of property, plant and equipment (12,476) (13,482) (78,999) (46,420) Purchases of intan
Slide 50: Reconciliation: Constant-Currency Organic Revenue Growth Rates Quarterly
Reconciliation: Constant-Currency Organic Revenue Growth Rates Quarterly ASIA-PACIFIC Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Reported revenue growth 48% 55% 50% 65% 67% 41% 47% 28% 28% 26% 6% 4% Currency impact (12%) (12%) (15%) (26%) (22%) (4
Slide 51: Reconciliation: Constant-Currency Organic Revenue Growth Rates Quarterly
Reconciliation: Constant-Currency Organic Revenue Growth Rates Quarterly NORTH AMERICA Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Reported revenue growth 16% 16% 21% 18% 17% 20% 23% 20% 22% 20% 15% 18% Currency impact 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Slide 52: Reconciliation: Constant-Currency Organic Revenue Growth Rates Annual
Reconciliation: Constant-Currency Organic Revenue Growth Rates Annual FY2009 FY2010 FY2011 FY2012 FY2013 Reported revenue growth 29% 30% 22% 25% 14% Currency impact 7% (2%) - 0% 2% Revenue growth in constant currency 36% 28% 22% 25% 16% Impact of acquisitions to growth in constant currency - - - (5%
Slide 53: Reconciliation: Constant-Currency Organic Revenue Growth Rates by Region Annual
Reconciliation: Constant-Currency Organic Revenue Growth Rates by Region Annual FY2013 North America Europe Asia-Pacific Total Company Reported revenue growth 18% 9% 16% 14% Currency impact - 2% 1% 2% Revenue growth in constant currency 18% 11% 17% 16% Impact of acquisitions to growth in constant (1