Vistaprint (ticker: VPRT, exchange: NASDAQ Global Select Market (.O))
News Release -
25-Jan-2007
VistaPrint Reports Second Quarter of Fiscal Year 2007 Financial Results- Revenue Rose 76 Percent Year over Year
- GAAP Net Income Increased 52 Percent Year over Year
- Acquired 687,000 First-Time Customers in the Quarter
- 64 Percent of Bookings Came from Repeat Customers
- 34 Percent of Revenue Came from Non-US Markets
HAMILTON, Bermuda--(BUSINESS WIRE)--Jan. 25, 2007--VistaPrint
Limited (Nasdaq:VPRT), the leading online supplier of high-quality
graphic design services and customized printed products to small
businesses and consumers, today announced its financial results for
the three month period ended December 31, 2006, the second quarter of
its 2007 fiscal year.
Revenue for the quarter was $64.0 million, an increase of 76
percent when compared to revenue of $36.4 million in the same quarter
of fiscal 2006.
Net income on a GAAP basis for the second quarter of fiscal 2007
was $8.3 million, which was 13 percent of revenue and $0.18 per share
on a fully diluted basis. During the same quarter of the prior year,
which ended December 31, 2005, the Company achieved net income on a
GAAP basis of $5.5 million, which was 15 percent of revenue and $0.13
per share on a fully diluted basis.
On a non-GAAP basis, excluding share-based compensation expense,
adjusted net income for the second quarter of fiscal 2007 was $10.1
million, 15.8 percent of revenue, and $0.22 per fully diluted share.
During the same quarter of the prior year, non-GAAP adjusted net
income was $5.8 million, 15.9 percent of revenue, and $0.13 per fully
diluted share.
"VistaPrint saw another outstanding quarter," said Robert Keane,
president and chief executive officer. "We acquired over 687,000
first-time paying customers in the quarter and generated 64 percent of
bookings from repeat customers, while non-US websites contributed 34
percent of revenue in the quarter. Each of these metrics matches or
exceeds the Company's previous records." Continuing, Mr. Keane stated,
"These and other operating metrics are a direct result of our past
decisions to accelerate investment, and they affirm the value that
VistaPrint delivers to our customers."
"VistaPrint's strong results validate our strategy of investing
for growth, and going forward we expect to continue this strategy,"
said Keane. "Our focus remains on the long term. We seek first and
foremost to improve our customer value proposition, which is the
foundation of our ability to grow in the future. We also believe that
investing for growth will reinforce our scale-based competitive
advantages."
Financial Metrics:
- Revenue grew to $64 million, a 76 percent increase over
revenue of $36.4 million reported a year ago.
- The second quarter of fiscal 2007 was the Company's 26th
consecutive quarter of organic sequential revenue growth.
- Gross margin (revenue minus the cost of revenue) was 64.0
percent, compared to 67.9 percent a year ago.
- Operating income was $8.5 million, or 13.3 percent of revenue,
and reflected a 51 percent increase over the prior year's
level of $5.7 million.
- GAAP net income was $8.3 million, or 13 percent of revenue,
representing a 52 percent increase compared to $5.5 million
during the same quarter last year.
- Non-GAAP net income, which excludes share-based compensation
expense, was $10.1 million, or 15.8 percent of revenue, and
represents a 75 percent increase over the prior year's level
of $5.8 million.
- Non-GAAP fully diluted earnings per share, which excludes
share-based compensation expense, was $0.22, versus $0.13 a
year ago.
- The Company had $104 million in cash, cash equivalents and
marketable securities as of December 31, 2006.
- Capital expenditures in the second quarter were $16.5 million.
- During the second quarter, the Company generated $14.1 million
in cash from operations.
Operating Metrics:
- Total number of customers served increased by 687,000 in the
quarter ending December 31, 2006 to more than 8.5 million
since the Company's internet launch in May 2000.
- Repeat customers generated 64 percent of total quarterly
bookings, compared to 61 percent in the second quarter of the
prior fiscal year.
- Average daily order volume in the quarter exceeded 18,000, up
50 percent from approximately 12,000 orders on average per day
in the prior fiscal year's second quarter.
- Advertising spending was $13.3 million or 20.8 percent of
revenue.
- Non-US markets contributed 34 percent of total revenue, up
from 29 percent in the prior fiscal year period.
- Average Order Value including revenue from shipping was
$35.94, compared to $31.26 in the same quarter in the prior
fiscal year.
- Web site sessions were 34.3 million, a 23 percent increase
over 27.8 million in the second quarter of fiscal 2006.
- Conversion rates were 4.9 percent in the second quarter of
fiscal 2007, compared to 4.0 percent recorded during same
quarter in the prior year.
Growth Investments & Innovation:
- Capital expenditures in the second quarter of fiscal 2007
totaled $16.5 million. 51 percent, or about $8 million, was
related to additional off-set and digital production equipment
to meet current and anticipated future demand with the
remaining expenditures for expansion of facilities, IT
infrastructure and equipment for new product initiatives and
manufacturing automation.
- Introduced new products including sticky-notes, compliment
cards in four countries, and foil-accented holiday cards.
- Awarded four US patents, bringing the worldwide total to 15,
with over forty pending patent applications.
"VistaPrint continues to deliver strong financial results," noted
Chief Financial Officer Harpreet Grewal. "VistaPrint's business model,
large customer base, growing scale, investment in technology and
multiple marketing channels are defining a financial and operating
model that gives us confidence planning for high ongoing growth. Based
on this, we are raising our revenue and earnings guidance for the
fiscal year ending June 30, 2007 and also plan on accelerating capital
investments in support of that growth."
Financial Guidance as of January 25th 2007:
Based on current and anticipated levels of demand, the Company
expects the following financial results for the third quarter and full
year of fiscal 2007:
Revenue
- For the third quarter of fiscal year 2007, ending March 31,
2007, the Company expects revenue to range from $67 million to
$70 million.
- For the full fiscal year ending June 30, 2007, the Company
expects revenue to range from $250 million to $260 million.
Gross Margins
- For the third quarter of fiscal year 2007, ending March 31,
2006, the Company expects gross margins to range from 62
percent to 65 percent.
- For the full fiscal year ending June 30, 2007, the Company
expects gross margins to range from 63 percent to 65 percent.
GAAP Fully-Diluted Earnings Per Share
- For the third quarter of fiscal year 2007, ending March 31,
2007, the Company expects GAAP fully-diluted earnings per
share to range from $0.14 to $0.16.
- For the full fiscal year ending June 30, 2007, the Company
expects GAAP fully-diluted earnings per share to range from
$0.56 to $0.61.
Non-GAAP Fully-Diluted Earnings Per Share
- For the third quarter of fiscal year 2007, ending March 31,
2007, the Company expects non-GAAP fully-diluted earnings per
share, excluding share-based compensation expense, to range
from $0.18 to $0.20.
- For the full fiscal year ending June 30, 2007, the Company
expects non-GAAP fully-diluted earnings per share, excluding
share-based compensation, to range from $0.73 to $0.78
Capital Expenditures
Given current and anticipated demand, the Company expects to
increase its capital expenditures beyond previously announced
guidance.
- For Q3 of fiscal year 2007, ending March 31, 2006, the Company
expects to make capital expenditures of $21 to $25 million.
- For the fiscal year ending June 30, 2007, the Company expects
to make capital expenditures of approximately 25 to 27 percent
of FY 2007 revenue, which translates to between $63 and $70
million given revenue guidance of $250 to $260 million.
Previously unplanned land purchases in the second half of FY
2007 resulting from increasing growth rates and the need to
expand manufacturing facilities account for a large part of
the higher capital expenditures as a percent of FY 2007
revenue versus prior capital expenditure guidance. Prior
capital expenditure guidance was 22 to 24 percent of FY 2007
revenue.
The foregoing guidance supersedes any guidance previously issued
by the Company for the third quarter of fiscal 2007 and for the full
fiscal year ending June 30, 2007. All such previous guidance should no
longer be relied upon.
At approximately 4:15 p.m. (EST) on January 25th, 2007 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 5:00 p.m. (EST) there will be a Web cast of a
live Q&A session with VistaPrint management. Links to this Q&A session
will also be posted on the investor relations section of the Company's
Web site. A replay of the Q&A session will be available on the
Company's Web site following the call on January 25th, 2007.
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 uses the following measures defined as
non-GAAP financial measures by the SEC: non-GAAP adjusted net income
and non-GAAP adjusted net income per diluted share. The presentation
of this 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 table captioned
"Reconciliations of Non-GAAP Financial Measures" included at the end
of this release.
VistaPrint's management believes that these non-GAAP financial
measures provide meaningful supplemental information regarding our
performance by excluding certain expenses that may not be indicative
of our core business operating results. VistaPrint believes that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing VistaPrint's performance and when
planning, forecasting and analyzing future periods. These non-GAAP
financial measures also facilitate management's internal comparisons
to VistaPrint's historical performance and our competitors' operating
results. VistaPrint believes these non-GAAP financial measures are
useful to investors in allowing for greater transparency with respect
to supplemental information used by management in its financial and
operational decision making. Management uses these supplemental
measures to evaluate performance period over period and to analyze the
underlying trends in the Company's business and to establish
operational goals and forecasts that are used in allocating resources.
VistaPrint expects to compute its non-GAAP financial measures
using the same consistent method from quarter to quarter and year to
year. The accompanying table has 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. The item excluded from the non-GAAP measurements is
share-based compensation expense.
Share-based compensation expense
VistaPrint adopted SFAS 123R, Share-Based Payments, on July 1,
2005 and began expensing the fair value of share option grants issued
to employees and directors. Prior to that date, the Company had
accounted for share option grants under the provisions of APB No. 25,
Accounting for Stock Issued to Employees, and therefore had not
recorded any compensation expense related to such grants. Management
has excluded share-based compensation expense from the non-GAAP
measurements for fiscal year 2006 and 2007 to facilitate comparison
and analysis to historical performance and our competitors' operating
results.
Although management believes that these non-GAAP financial
measures are helpful to understanding the Company's financial
performance, to gain a complete picture of all effects on the
Company's profit and loss from any and all events, investors should
rely upon the GAAP statement of operations.
About VistaPrint
VistaPrint Limited (NASDAQ:VPRT) is the leading online supplier of
high-quality graphic design services and customized printed products
to small businesses and consumers. VistaPrint offers custom designed,
full-color, low-cost printed products in small quantities. Over 8
million small businesses and consumers have already chosen VistaPrint
for products ranging from business cards and brochures to invitations
and thank you cards. Products are printed at our two state-of-the-art
plants in North America and Europe that total over 200,000 square feet
of production space. A global company, VistaPrint employs more than
700 people and operates 17 localized web sites serving over 120
countries around the world. A broad range of design options are
available online at www.vistaprint.com. VistaPrint's printed products
are satisfaction guaranteed.
VistaPrint, the VistaPrint logo and VistaPrint.com are registered
trademarks of VistaPrint. All other brand and product names appearing
on this announcement may be trademarks or registered trademarks of
their respective holders.
This press release contains information about future expectations,
plans and prospects of our management 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, statements concerning the expected growth and development
of our business including the financial guidance set forth under the
heading "Financial Guidance (as of January 25, 2007)", our operating
performance, our margins, our market position, our reinvestment
program, and our ability to successfully attract and retain customers.
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, our ability to attract customers and to
retain customers and to do so in a cost-effective manner, willingness
of purchasers of graphic design services and printed products to shop
online, failure of our investments, unexpected increases in our use of
funds, failure to increase our revenue and keep our expenses
consistent with revenue, failures of our web sites or network
infrastructure, failure to maintain the prices we charge for our
products and services, the inability of our manufacturing operations
to meet customer demand, and other factors that are discussed in our
Annual Report on Form 10-K for the year ended June 30, 2006, our
Quarterly Report on Form 10-Q for the quarter ended September 30,
2006, and other documents periodically filed with the SEC.
In addition, the statements 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 and beliefs 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.
VistaPrint Limited
Consolidated Balance Sheets
December 31, June 30,
2006 2006
------------- ---------
(Unaudited)
(In thousands, except
share and per share
data)
Assets
Current assets:
Cash and cash equivalents $ 57,065 $ 64,653
Marketable securities 47,091 43,474
Accounts receivable, net of allowances of $42
and $50 at December 31, 2006 and June 30,
2006, respectively 2,048 1,465
Inventory 1,401 1,407
Prepaid expenses and other current assets 4,670 3,564
------------- ---------
Total current assets 112,275 114,563
Property, plant and equipment, net 77,054 50,311
Software and web site development costs, net 2,939 2,417
Patents 1,347 1,417
Deferred tax asset 346 435
Deposits, image licenses and other noncurrent
assets 4,092 2,249
------------- ---------
Total assets $ 198,053 $171,392
============= =========
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 4,739 $ 6,240
Accrued expenses 20,083 13,716
Deferred revenue 1,330 1,924
Current portion of long-term debt 3,182 2,482
------------- ---------
Total current liabilities 29,334 24,362
Long-term debt 23,159 23,046
Shareholders' equity:
Common shares, par value $0.001 per share,
500,000,000 shares authorized at December
31, 2006 and June 30, 2006, respectively;
42,252,264 and 41,500,750 shares issued and
outstanding at December 31, 2006 and June
30, 2006, respectively 42 42
Additional paid-in capital 152,957 146,354
Accumulated deficit (8,717) (23,077)
Accumulated other comprehensive income 1,278 665
------------- ---------
Total shareholders' equity 145,560 123,984
------------- ---------
Total liabilities and shareholders' equity $ 198,053 $171,392
============= =========
VistaPrint Limited
Consolidated Statements of Operations
Three Months Ended Six Months Ended
December 31, December 31,
------------------------- -------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
(Unaudited)
(in thousands, except share and per share data)
Revenue $ 64,034 $ 36,366 $ 114,037 $ 65,264
Cost of revenue
(1) 23,072 11,677 40,058 22,977
Technology and
development
expense (1) 6,430 3,570 11,948 6,546
Marketing and
selling expense
(1) 21,338 12,836 37,845 22,402
General and
administrative
expense (1) 4,670 2,629 9,448 4,290
------------ ------------ ------------ ------------
Income from
operations 8,524 5,654 14,738 9,049
Interest income 1,163 749 2,324 884
Other income
(expenses), net 58 (119) (99) (201)
Interest expense 482 259 944 485
------------ ------------ ------------ ------------
Income from
operations before
income taxes 9,263 6,025 16,019 9,247
Income tax
provision 951 559 1,659 880
------------ ------------ ------------ ------------
Net income $ 8,312 $ 5,466 $ 14,360 $ 8,367
============ ============ ============ ============
Net income
attributable to
common
shareholders:
Basic $ 8,312 $ 5,466 $ 14,360 $ 6,022
Diluted $ 8,312 $ 5,466 $ 14,360 $ 6,096
Basic net income
per share $ 0.20 $ 0.14 $ 0.34 $ 0.23
============ ============ ============ ============
Diluted net income
per share $ 0.18 $ 0.13 $ 0.32 $ 0.21
============ ============ ============ ============
Weighted average
common shares
outstanding -
basic 42,071,559 39,956,666 41,876,859 25,858,807
============ ============ ============ ============
Weighted average
common shares
outstanding -
diluted 45,202,495 43,651,712 44,925,124 28,984,394
============ ============ ============ ============
(1) Share-based
compensation is
allocated as
follows:
Three Months Ended Six Months Ended
December 31, December 31,
------------------------- -------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
(Unaudited)
(in thousands)
Cost of revenue $ 115 $ 31 $ 182 $ 32
Technology and
development
expense 620 148 1,033 152
Marketing and
selling expense 445 35 718 38
General and
administrative
expense 621 112 1,135 117
------------ ------------ ------------ ------------
$ 1,801 $ 326 $ 3,068 $ 339
============ ============ ============ ============
VistaPrint Limited
Reconciliations of Non-GAAP Financial Measures
Three Months Ended Six Months Ended
December 31, December 31,
------------------ ----------------
2006 2005 2006 2005
--------- -------- -------- -------
(Unaudited)
(in thousands, except per share
data)
Non-GAAP adjusted net income
reconciliation:
Net income $ 8,312 $ 5,466 $14,360 $6,096
Add back:
Share-based compensation expense 1,801 326 3,068 339
--------- -------- -------- -------
Non-GAAP adjusted net income $ 10,113 $ 5,792 $17,428 $6,435
========= ======== ======== =======
Non-GAAP adjusted net income per
diluted share reconciliation:
Net income per diluted share $ 0.18 $ 0.13 $ 0.32 $ 0.21
Add back:
Share-based compensation expense 0.04 - 0.07 0.01
--------- -------- -------- -------
Non-GAAP adjusted net income per
diluted share $ 0.22 $ 0.13 $ 0.39 $ 0.22
========= ======== ======== =======
VistaPrint Limited
Consolidated Statements of Cash Flows
Six Months Ended
December 31,
-------------------
2006 2005
--------- ---------
(Unaudited)
(in thousands)
Operating activities
Net income $ 14,360 $ 8,367
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 6,150 3,622
Loss on disposal of equipment 286 -
Share-based compensation expense 3,068 339
Deferred taxes 89 315
Changes in operating assets and liabilities:
Accounts receivable (557) 119
Inventory 25 (225)
Prepaid expenses and other assets (2,697) (1,471)
Accounts payable (2,195) (1,002)
Accrued expenses and other current liabilities 5,932 4,265
--------- ---------
Net cash provided by operating activities 24,461 14,329
Investing activities
Purchases of property, plant and equipment (30,533) (8,932)
Proceeds from sale of equipment 196 -
Purchases of marketable securities (31,365) (30,475)
Sales of marketable securities 27,480 275
Capitalization of software and website development
costs (1,778) (867)
--------- ---------
Net cash used in investing activities (36,000) (39,999)
Financing activities
Proceeds from long-term debt 1,630 5,405
Repayment of long-term debt (1,026) (482)
Payment of offering costs - (1,376)
Net proceeds from public offering - 61,380
Proceeds from issuance of common shares 3,256 516
--------- ---------
Net cash provided by financing activities 3,860 65,443
Effect of exchange rate changes on cash 91 (67)
--------- ---------
Net increase (decrease) in cash and cash
equivalents (7,588) 39,706
Cash and cash equivalents at beginning of period 64,653 26,402
--------- ---------
Cash and cash equivalents at end of period $ 57,065 $ 66,108
========= =========
Supplemental Noncash Financing Activities
Accretion of preferred shares $ - $ 1,295
CONTACT:
VistaPrint Limited
Investor Relations -
Angela White
781-734-2480
ir@vistaprint.com
Media Relations -
Manya Chait
781-547-6319
publicrelations@vistaprint.com
SOURCE:
VistaPrint Limited
|
Vistaprint
