VistaPrint Limited : Vistaprint Reports Fourth Quarter and Fiscal Year 2012 Financial Results
0
07/26/2012 | 10:15pm CEST
Vistaprint N.V. (Nasdaq: VPRT):
Fourth quarter 2012 results:
Revenue grew 20 percent year over year to $250.4 million
Revenue grew 25 percent year over year excluding the impact of
currency exchange rate fluctuations
Revenue grew 17 percent year over year excluding the impact of
currency exchange fluctuations and revenue from acquisitions
GAAP net income per diluted share decreased 69 percent year over
year to $0.10
Non-GAAP adjusted net income per diluted share decreased 7 percent
year over year to $0.40
Fiscal year 2012 results:
Revenue grew 25 percent year over year to $1,020.3 million
Revenue grew 25 percent year over year excluding the impact of
currency exchange rate fluctuations
Revenue grew 20 percent year over year excluding the impact of
currency exchange fluctuations and revenue from acquisitions
GAAP net income per diluted share decreased 38 percent year over
year to $1.13
Non-GAAP adjusted net income per diluted share decreased 15
percent year over year to $1.95
Vistaprint N.V. (Nasdaq: VPRT), a leading online provider of
professional marketing products and services to micro businesses and the
home, today announced financial results for the fourth quarter and
fiscal year ended June 30, 2012.
"We are generally pleased with our accomplishments in fiscal 2012," said
Robert Keane, president and chief executive officer. "We sustained
strong annual revenue growth while executing on key strategy
initiatives. We delivered earnings above our guidance range for the
fourth quarter and fiscal year due to favorability on a number of cost
items. In the fourth quarter, we were pleased with revenue performance
in North America and Asia Pacific; however, we were disappointed with
the deterioration of revenue growth rates in Europe.
"Over the last two quarters, we have seen lower growth rates in Europe
than in North America, which is a break from the past," continued Keane.
"Although we expected near-term revenue headwinds from the
implementation of customer-centric user experience improvements, we have
been more successful in mitigating these headwinds in North America than
in Europe. We continue to believe that Europe has significant potential
for us and are targeting improved growth rates over time."
Keane continued, "During fiscal 2012, we made significant progress
against our strategy initiatives fueled by the new investment approach
we announced one year ago. We believe we remain on track to achieve our
qualitative long-term strategic goals and continue to target the
earnings and constant currency revenue growth goals articulated at that
time. In some areas, we are ahead of our plans, and in other areas, such
as European revenue growth, we have challenges we must address. We are
fortunate to have many drivers within our business, and we will continue
to take a flexible approach to managing our resources to drive continued
growth."
Financial Metrics (include Albumprinter and
Webs results unless otherwise stated):
Revenue for the fourth quarter of fiscal year 2012 grew to $250.4
million, a 20 percent increase over revenue of $208.8 million reported
in the same quarter a year ago. Excluding Albumprinter and Webs
combined revenue of $15.4 million, total fourth quarter revenue was
$235.0 million. For the full fiscal year, revenue grew to $1,020.3
million, a 25 percent increase over revenue of $817.0 million in
fiscal year 2011. Excluding the estimated impact from currency
exchange rate fluctuations and revenue from acquired businesses, total
revenue grew 17 percent year over year in the fourth quarter and 20
percent for the full year.
Gross margin (revenue minus the cost of revenue as a percent of total
revenue) in the fourth quarter was 64.6 percent, compared to 63.9
percent in the same quarter a year ago. For the full fiscal year,
gross margin was 65.2 percent, compared to 64.8 percent in fiscal year
2011.
Operating income in the fourth quarter was $5.1 million, or 2.0
percent of revenue, and reflected a 70 percent decrease compared to
operating income of $17.0 million, or 8.1 percent of revenue, in the
same quarter a year ago. For the full fiscal year, operating income
was $55.2 million, or 5.4 percent of revenue, a 41 percent decrease
compared to operating income of $93.1 million, or 11.4 percent of
revenue, in the prior fiscal year.
GAAP net income for the fourth quarter was $3.9 million, or 1.5
percent of revenue, representing a 73 percent decrease compared to
$14.4 million, or 6.9 percent of revenue in the same quarter a year
ago. For the full fiscal year, GAAP net income was $44.0 million, or
4.3 percent of revenue, a 46 percent decrease compared to GAAP net
income of $82.1 million, or 10.0 percent of revenue, in the prior
fiscal year.
GAAP net income per diluted share for the fourth quarter was $0.10,
versus $0.32 in the same quarter a year ago. For the full year, GAAP
net income per diluted share was $1.13, versus $1.83 in the prior full
fiscal year.
Non-GAAP adjusted net income for the fourth quarter, which excludes
amortization expense for acquisition-related intangible assets, tax
charges related to the alignment of acquisition-related intellectual
property with global operations, and share-based compensation expense
and its related tax effect, was $14.9 million, or 5.9 percent of
revenue, representing a 24 percent decrease compared to non-GAAP
adjusted net income of $19.5 million, or 9.4 percent of revenue, in
the same quarter a year ago. For the full fiscal year, non-GAAP
adjusted net income was $77.0 million, or 7.6 percent of revenue, a 26
percent decrease compared to non-GAAP adjusted net income of $104.5
million, or 12.8 percent of revenue, in the prior fiscal year.
Non-GAAP adjusted net income per diluted share for the fourth quarter,
as defined above, was $0.40, versus $0.43 in the same quarter a year
ago. For the 2012 full fiscal year, non-GAAP adjusted net income per
diluted share was $1.95, versus $2.30 in the prior fiscal year.
Capital expenditures in the fourth quarter were $13.5 million or 5.4
percent of revenue. During the full fiscal year capital expenditures
were $46.4 million or 4.5 percent of revenue.
During the fourth quarter, the company generated $19.3 million of cash
from operations and $4.6 million in free cash flow, defined as cash
from operations less purchases of property, plant and equipment,
purchases of intangible assets not related to acquisitions, and
capitalization of software and website development costs. During the
full fiscal year, the company generated $140.6 million of cash from
operations and $88.5 million in free cash flow.
The company had net debt of $166.8 million which consisted of $62.2
million in cash and cash equivalents and $229.0 million in long-term
debt, with $157.0 million available under its credit facility as of
June 30, 2012.
During the fourth quarter, the company purchased 2,990,376 of its
ordinary shares for $100.1 million, inclusive of transaction costs, at
an average per-share cost of $33.46, as part of the share repurchase
program authorized by the Supervisory Board in February 2012. During
fiscal year 2012, the company repurchased 9,900,980 shares for $309.7
million at an average per-share cost of $31.28, as part of the program
referenced above, as well as prior programs.
Operating Highlights (exclude Albumprinter and
Webs results unless otherwise stated):
Vistaprint acquired approximately 2.2 million new customers in the
fourth fiscal quarter ended June 30, 2012, compared with 1.8 million
in the same quarter a year ago, reflecting an increase of 22 percent.
For the full fiscal year 2012, the number of new customer acquisitions
totaled approximately 9.4 million, a 27 percent increase compared with
7.4 million in fiscal year 2011.
On a trailing twelve month basis, unique active customer count was
14.4 million. Unique active customer count is the number of individual
customers who purchased from us in a given period, with no regard to
the frequency of purchase. This was a 26 percent increase compared to
11.4 million in the twelve month period ended June 30, 2011.
Total order volume in the fourth quarter of fiscal 2012 was
approximately 6.4 million, reflecting an increase of approximately 14
percent over total orders of approximately 5.6 million in the same
quarter a year ago.
Average order value in the fourth quarter including revenue from
shipping and processing was $36.73, compared to $37.72 in the same
quarter a year ago.
Organic advertising and commissions expense in the fourth quarter was
$55.3 million, or 23.5 percent of revenue, compared to $47.0 million,
or 22.5 percent of revenue, in the same quarter a year ago, and $245.9
million, or 25.2 percent of revenue, for the full fiscal year.
Including advertising and commissions expense from the acquired
businesses, total advertising and commissions expense in the fourth
quarter was $57.7 million, or 23.0 percent of total revenue, and
$252.8 million, or 24.8 percent of revenue, for the full fiscal year.
Vistaprint acts as a wholesaler to certain retail firms, providing
white label solutions for online and/or in-store sales of select
Vistaprint products. In the fourth quarter and fiscal year, these
partnerships increased the growth of new customers, unique active
customers, and order volume, and decreased average order value and
advertising as a percent of revenue.
Revenue from customers in North America was $143.4 million, or 57
percent of total revenue, in the fourth quarter. This represents 20
percent growth year over year in reported terms and 21 percent growth
year over year in constant currency. Excluding Webs revenue of $2.5
million, revenue from customers in North America was $140.9 million,
or 60 percent of total organic revenue, in the fourth quarter. This
represents 18 percent growth year over year in both reported terms and
constant currency.
For the full fiscal year, revenue from customers in North America was
$543.9 million, or 53 percent of total revenue, representing 20
percent growth year over year in both reported terms and in constant
currency. Excluding Webs revenue of $4.7 million, revenue from
customers in North America was $539.2 million or 55 percent of total
organic revenue for the fiscal year. This represents 19 percent growth
year over year in both reported terms and constant currency.
Revenue from customers in Europe was $92.0 million or 37 percent of
total revenue in the quarter. This represents 18 percent growth year
over year in reported terms and 30 percent growth in constant
currency. Excluding Albumprinter revenue of $12.9 million, revenue
from customers in Europe was $79.1 million, or 34 percent of total
organic revenue in the fourth quarter. This represents 2 percent
growth year over year in reported terms and 11 percent growth in
constant currency.
For the full fiscal year, revenue from customers in Europe was $415.2
million, or 41 percent of total revenue, representing 29 percent
growth year over year in reported terms and 31 percent growth in
constant currency. Excluding Albumprinter revenue of $40.4 million,
revenue from customers in Europe was $374.8 million or 38 percent of
total organic revenue for the fiscal year. This represents 17 percent
growth year over year in reported terms and 18 percent growth year
over year in constant currency.
Revenue from customers in Asia Pacific was $15.1 million, or 6 percent
of total revenue in the fourth quarter. This represents 28 percent
growth year over year in reported terms and 33 percent growth in
constant currency.
For the full fiscal year, revenue from customers in Asia Pacific was
$61.2 million, or 6 percent of total revenue for the fiscal year. This
represents 44 percent growth year over year in reported terms and 38
percent growth year over year in constant currency.
Investment in Asian Markets:
Consistent with our announcement one year ago that we would proactively
consider M&A as a means to enter adjacent markets, including geographic
expansion, Vistaprint today announced an enhanced strategy to drive
longer-term growth in China and India. As previously disclosed,
Vistaprint acquired the assets of a startup business in India,
PrintBell, in fiscal 2012. On July 10, 2012, Vistaprint also made a
capital investment in a Chinese business which operates under the name
Namex. This resulted in Vistaprint owning a 34.5 percent indirect equity
interest in Namex, with call options to increase Vistaprint's ownership
incrementally to 100% over the coming eight years. Both PrintBell and
Namex are innovative, focused start-ups in markets that we believe have
large long-term potential. In order to help ensure these investments are
successful over the long term, Vistaprint anticipates investing in
supporting resources that will be managed from a new "Most of World"
business unit, with headquarters in Singapore, whose President reports
directly into Robert Keane. Neither India nor China is expected to
contribute materially to our revenue in fiscal 2013. However, resource
investments in those entities and in the supporting Singapore-based team
are expected to be dilutive to fiscal 2013 earnings. The financial
guidance provided below includes the expected impact of these Asian
investments.
Fiscal 2013 Outlook as of July 26, 2012:
Ernst Teunissen, executive vice president and chief financial officer,
said, "The fiscal 2013 guidance we are introducing today includes a
range of constant currency organic revenue growth of 15 percent to 20
percent. Reaccelerating revenue growth in our core business is an
important strategic goal for us, and we expect growth in North America
and Asia Pacific to remain strong in fiscal 2013. However, we believe it
is realistic and prudent to anticipate the potential for continued
revenue weakness in Europe through fiscal 2013. These expectations are
incorporated into our revenue guidance range. Finally, a year ago, we
presented a plan for which we anticipated modest GAAP earnings per share
growth in fiscal 2013 compared to our fiscal 2012 GAAP earnings guidance
range for our organic business. We believe we are on track to deliver
this in fiscal 2013. Additionally, our fiscal 2013 earnings guidance
includes the negative impact of our acquisitions of Webs and
Albumprinter, our investments in Asia, and the incremental accounting
impact driven by our recent move to more performance-based executive
stock option grants, as well as the positive impact of our fiscal 2012
share repurchases."
Financial Guidance as of July 26, 2012:
As previously stated, beginning with fiscal year 2013, the company is
providing revenue guidance on an annual and quarterly basis, and
earnings guidance on an annual basis. Based on current and anticipated
levels of demand, the company expects the following financial results:
Fiscal Year 2013 Revenue
For the full fiscal year ending June 30, 2013, the company expects
revenue of approximately $1,175 million to $1,225 million, or 15
percent to 20 percent growth year over year in reported terms.
Excluding currency movements and acquired revenue, we expect
constant-currency organic growth of approximately 15 percent to 20
percent. Constant-currency growth expectations assume a recent 30-day
currency exchange rate for all currencies.
For the first quarter of fiscal year 2013, ending September 30, 2012,
the company expects revenue of approximately $250 million to $260
million, or 18 percent to 22 percent growth year over year in reported
terms. We expect constant-currency organic growth of approximately 13
percent to 18 percent.
Fiscal Year 2013 GAAP Net Income Per Diluted
Share
For the full fiscal year ending June 30, 2013, the company expects
GAAP net income per share of approximately $0.40 to $0.70, which
assumes 35.8 million weighted average diluted shares outstanding.
Fiscal Year 2013 Non-GAAP Adjusted Net Income
Per Diluted Share
For the full fiscal year ending June 30, 2013, the company expects
non-GAAP adjusted net income per diluted share of approximately $1.62
to $1.92, which excludes expected acquisition-related amortization of
intangible assets of approximately $7.6 million or approximately $0.21
per diluted share, share-based compensation expense and its related
tax effect of approximately $35.3 million or approximately $0.97 per
diluted share, and tax charges related to the alignment of
acquisition-related intellectual property with global operations of
approximately $2.2 million, or $0.06 per diluted share. This guidance
assumes a non-GAAP weighted average diluted share count of
approximately 36.5 million shares.
Fiscal Year 2013 Capital Expenditures
For the full fiscal year ending June 30, 2013, the company expects to
make capital expenditures of approximately $75 million to $95 million.
Planned capital investments are designed to support the planned growth
of the business and will include the expansion of our European
production capacity in our Venlo facility and other investments.
The foregoing guidance supersedes any guidance previously issued by the
company. All such previous guidance should no longer be relied upon.
At approximately 4:20 p.m. (EDT) on July 26, 2012, Vistaprint will post,
on the Investor Relations section of www.vistaprint.com,
a link to a pre-recorded audio visual end-of-quarter presentation along
with a downloadable transcript of the prepared remarks that accompany
that presentation. At 5:15 p.m. the company will host a live Q&A
conference call with management, which will be available via web cast on
the Investor Relations section of www.vistaprint.com
and via dial-in at (800) 659-2056, access code 31992793. A replay of the
Q&A session will be available on the company's Web site following the
call on July 26, 2012.
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, or SEC, rules:
non-GAAP adjusted net income, non-GAAP adjusted net income per diluted
share, free cash flow, constant-currency revenue growth, and
constant-currency organic revenue growth. 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, and tax charges related to the alignment of
acquisition-related intellectual property with global operations. Free
cash flow is defined as net cash provided by operating activities less
purchases of property, plant and equipment, purchases of intangible
assets not related to acquisitions, and capitalization of software and
website development costs. 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 average exchange rate for
each currency to the U.S. dollar. Constant-currency organic revenue
growth excludes the impact of currency as defined above and revenue from
acquired companies.
The presentation of non-GAAP financial information is not intended to be
considered in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. For more information on
these non-GAAP financial measures, please see the tables captioned
"Reconciliations of Non-GAAP Financial Measures" included at the end of
this release. The tables have more details on the GAAP financial
measures that are most directly comparable to non-GAAP financial
measures and the related reconciliation between these financial measures.
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 management's internal
comparisons to Vistaprint's historical performance and our competitors'
operating results.
Management provides these non-GAAP financial measures as a courtesy to
investors. However, to gain a more complete understanding of the
company's financial performance, management does (and investors should)
rely upon GAAP statements of operations and cash flow.
About Vistaprint
Vistaprint N.V. (Nasdaq: VPRT) empowers more than 14 million micro
businesses and consumers annually with affordable, professional options
to make an impression. With a unique business model supported by
proprietary technologies, high-volume production facilities, and direct
marketing expertise, Vistaprint offers a wide variety of products and
services that micro businesses can use to expand their business. A
global company, Vistaprint employs over 3,700 people, operates more than
25 localized websites globally and ships to more than 130 countries
around the world. Vistaprint's broad range of products and services are
easy to access online, 24 hours a day at www.vistaprint.com.
Vistaprint and the Vistaprint logo are trademarks of Vistaprint N.V. or
its subsidiaries. All other brand and product names appearing on this
announcement may be trademarks or registered trademarks of their
respective holders.
This press release 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, including but not limited to
our expectations for the growth and development of our business in
Europe, Asia, and elsewhere; our current revenue, earnings and growth
rate expectations for the next five years; and our financial guidance
set forth under the heading "Financial Guidance as of July 26, 2012."
Forward-looking projections or expectations are inherently uncertain,
are based on assumptions and judgments by management and may turn out to
be wrong. Our actual results may differ materially from those indicated
by these forward-looking statements as a result of various important
factors, including but not limited to flaws in the assumptions and
judgments upon which our forecasts are based; the willingness of
purchasers of marketing services and products to shop online; our
failure to acquire new customers and enter new markets, retain our
current customers and sell more products to current and new customers;
our failure to promote and strengthen our brand; the failure of our
current and new marketing channels to attract customers; our failure to
manage growth and changes in our organization and senior management; our
failure to manage the complexity of our business and expand our
operations; our inability to make the investments in our business that
we plan to make because the investments are more costly than we expected
or because we are unable to devote the necessary operational and
financial resources; the failure of our investments to have the effects
that we expect; our failure to execute our strategy; currency
fluctuations that affect our revenues and costs; costs and disruptions
caused by acquisitions; the failure of our acquired businesses to
perform as expected; difficulties or higher than anticipated costs in
integrating the systems and operations of our acquired businesses into
our systems and operations; unanticipated changes in our market,
customers or business; competitive pressures; interruptions in or
failures of our websites, network infrastructure or manufacturing
operations; our failure to retain key employees of Vistaprint or of our
acquired businesses; our failure to maintain compliance with the
financial covenants in our revolving credit facility or to pay our debts
when due; costs and judgments resulting from litigation; changes in the
laws and regulations or in the interpretations of laws or regulations to
which we are subject, including tax laws, or the institution of new laws
or regulations that affect our business; general economic conditions;
and other factors described in our Form 10-Q for the fiscal quarter
ended March 31, 2012 and the other documents we periodically file with
the U.S. Securities and Exchange Commission.
In addition, the statements and projections in this press release
represent our expectations and beliefs as of the date of this press
release. We anticipate that subsequent events and developments may cause
these expectations, beliefs and projections to change. We specifically
disclaim any obligation to update any forward-looking statements. These
forward-looking statements should not be relied upon as representing our
expectations or beliefs as of any date subsequent to the date of this
press release.
Financial Tables to Follow
VISTAPRINT N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited in thousands, except share and per share data)
June 30,
June 30,
2012
2011
Assets
Current assets:
Cash and cash equivalents
$
62,203
$
236,552
Marketable securities
-
529
Accounts receivable, net of allowances of $189 and $243, respectively
20,125
13,389
Inventory
7,168
8,377
Prepaid expenses and other current assets
26,102
13,444
Total current assets
115,598
272,291
Property, plant and equipment, net
261,228
262,104
Software and website development costs, net
5,186
6,046
Deferred tax assets
327
6,522
Goodwill
140,429
4,168
Intangible assets, net
40,271
1,042
Other assets
29,390
3,727
Total assets
$
592,429
$
555,900
Liabilities and shareholders' equity
Current liabilities:
Accounts payable
$
25,931
$
15,998
Accrued expenses
98,402
68,989
Deferred revenue
15,978
8,819
Deferred tax liabilities
1,668
-
Total current liabilities
141,979
93,806
Deferred tax liabilities
18,359
3,794
Other liabilities
13,804
8,207
Long-term debt
229,000
-
Total liabilities
403,142
105,807
Commitments and contingencies
Shareholders' equity:
Preferred shares, par value ?0.01 per share, 120,000,000 shares
authorized; none issued and outstanding
-
-
Ordinary shares, par value ?0.01 per share, 120,000,000 shares
authorized; 49,950,289 and 49,950,289 shares issued and 34,119,637
and 43,144,718 outstanding, respectively
699
699
Treasury shares, at cost, 15,830,652 and 6,805,571 shares,
respectively
(378,941
)
(85,377
)
Additional paid-in capital
285,633
273,260
Retained earnings
292,628
248,634
Accumulated other comprehensive (loss) income
(10,732
)
12,877
Total shareholders' equity
189,287
450,093
Total liabilities and shareholders' equity
$
592,429
$
555,900
VISTAPRINT N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited in thousands, except share and per share data)
Three Months Ended June 30,
Year Ended June 30,
2012
2011
2012
2011
Revenue
$
250,413
$
208,791
$
1,020,269
$
817,009
Cost of revenue (1)
88,672
75,401
355,205
287,806
Technology and development expense (1)
37,000
25,366
129,162
93,626
Marketing and selling expense (1)
90,928
71,292
375,538
271,838
General and administrative expense (1)
28,711
19,733
105,190
70,659
Income from operations
5,102
16,999
55,174
93,080
Interest income
10
115
192
435
Other income (expense), net
909
(1,162
)
2,350
(2,197
)
Interest expense
768
-
1,871
196
Income before income taxes
5,253
15,952
55,845
91,122
Income tax provision
1,402
1,555
11,851
9,013
Net income
$
3,851
$
14,397
$
43,994
$
82,109
Basic net income per share
$
0.11
$
0.33
$
1.16
$
1.89
Diluted net income per share
$
0.10
$
0.32
$
1.13
$
1.83
Weighted average shares outstanding - basic
35,808,786
43,060,746
37,813,504
43,431,326
Weighted average shares outstanding - diluted
37,043,051
44,716,991
38,953,179
44,951,199
(1) Share-based compensation expense is allocated as follows:
Three Months Ended June 30,
Year Ended June 30,
2012
2011
2012
2011
Cost of revenue
$
84
$
125
$
329
$
686
Technology and development expense
2,084
903
5,171
4,178
Marketing and selling expense
1,165
790
2,692
3,841
General and administrative expense
5,078
3,147
17,221
12,972
VISTAPRINT N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited in thousands)
Three Months Ended
Year Ended
June 30,
June 30,
2012
2011
2012
2011
Operating activities
Net income
$
3,851
$
14,397
$
43,994
$
82,109
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
16,062
12,926
59,427
50,627
Amortization of debt issuance costs
94
-
206
-
Realized loss on marketable securities
-
71
-
71
Realized loss on sale, disposal, or impairment of long-lived assets
78
332
155
486
Amortization of premiums and discounts on marketable securities
-
-
-
163
Share-based compensation expense
8,411
4,965
25,413
21,677
Excess tax benefits derived from share-based compensation awards
(6,037
)
(965
)
(6,108
)
(2,515
)
Deferred income taxes
371
610
(1,810
)
1,614
Changes in operating assets and liabilities, excluding the effect of
business acquisitions:
Accounts receivable
1,023
(1,511
)
(1,405
)
(3,454
)
Inventory
462
199
1,150
(1,466
)
Prepaid expenses and other assets
(5,453
)
6,721
(11,484
)
9,937
Accounts payable
3,701
(2,214
)
5,667
(2,610
)
Accrued expenses and other liabilities
(3,222
)
776
25,436
5,995
Net cash provided by operating activities
19,341
36,307
140,641
162,634
Investing activities
Purchases of property, plant and equipment
(13,482
)
(8,181
)
(46,420
)
(37,405
)
Business acquisitions, net of cash acquired
-
-
(180,675
)
-
Maturities and redemptions of marketable securities
-
-
529
9,570
Purchases of intangible assets
(67
)
(57
)
(239
)
(205
)
Capitalization of software and website development costs
(1,161
)
(1,634
)
(5,463
)
(6,290
)
Net cash used in investing activities
(14,710
)
(9,872
)
(232,268
)
(34,330
)
Financing activities
Proceeds from borrowings of long-term debt
189,000
-
408,500
-
Payments of long-term debt
(86,500
)
-
(179,500
)
(5,222
)
Payments of debt issuance costs
(598
)
-
(1,820
)
-
Payments of withholding taxes in connection with vesting of
restricted share units
(1,420
)
(1,551
)
(4,148
)
(5,653
)
Repurchases of ordinary shares
(100,056
)
-
(309,701
)
(56,935
)
Excess tax benefits derived from share-based compensation awards
6,037
965
6,108
2,515
Proceeds from issuance of shares
436
1,810
1,394
7,012
Net cash provided by (used in) financing activities
6,899
1,224
(79,167
)
(58,283
)
Effect of exchange rate changes on cash
(1,464
)
828
(3,555
)
3,804
Net increase (decrease) in cash and cash equivalents
10,066
28,487
(174,349
)
73,825
Cash and cash equivalents at beginning of period
52,137
208,065
236,552
162,727
Cash and cash equivalents at end of period
$
62,203
$
236,552
$
62,203
$
236,552
VISTAPRINT N.V.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(Unaudited in thousands, except share and per share data)
Three Months Ended
Year Ended
June 30,
June 30,
2012
2011
2012
2011
Non-GAAP adjusted net income reconciliation:
Net income
$
3,851
$
14,397
$
43,994
$
82,109
Add back:
Share-based compensation expense, inclusive of income tax effects
8,596
(a)
5,129
(b)
26,060
(c)
22,400
(d)
Amortization of acquisition-related intangible assets
2,225
-
5,754
-
Tax cost of transfer of intellectual property
218
1,235
Non-GAAP adjusted net income
$
14,890
$
19,526
$
77,043
$
104,509
Non-GAAP adjusted net income per diluted share reconciliation:
Net income per diluted share
$
0.10
$
0.32
$
1.13
$
1.83
Add back:
Share-based compensation expense, inclusive of income tax effects
0.23
0.11
0.65
0.47
Amortization of acquisition-related intangible assets
0.06
-
0.14
-
Tax cost of transfer of intellectual property
0.01
-
0.03
-
Non-GAAP adjusted net income per diluted share
$
0.40
$
0.43
$
1.95
$
2.30
Non-GAAP weighted average shares outstanding - diluted
37,620,191
45,155,893
39,425,920
45,448,055
(a) Includes share-based compensation charges of $8,411 and the
income tax effects related to those charges of $185
(b) Includes share-based compensation charges of $4,965 and the
income tax effects related to those charges of $164
(c) Includes share-based compensation charges of $25,413 and the
income tax effects related to those charges of $647
(d) Includes share-based compensation charges of $21,677 and the
income tax effects related to those charges of $723
Three Months Ended
Year Ended
June 30,
June 30,
2012
2011
2012
2011
Free cash flow reconciliation:
Net cash provided by operating activities
$
19,341
$
36,307
$
140,641
$
162,634
Purchases of property, plant and equipment
(13,482
)
(8,181
)
(46,420
)
(37,405
)
Purchases of intangible assets not related to acquisitions
(67
)
(57
)
(239
)
(205
)
Capitalization of software and website development costs
United Kingdom
France
Deutschland
Schweiz (DE)
