Vistaprint Q3 Profit Surges, Raises Guidance
Vistaprint N.V., a leading online provider of professional marketing products and services to micro businesses and the home, announced financial results for the three month period ended March 31, 2013, the third quarter of its 2013 fiscal year.
“We delivered third quarter revenue results in-line with the expectations we set three months ago,” said Robert Keane, president and chief executive officer. “Our earnings per share were above our expectations due to lower than planned advertising and operating expenses, and better than expected gross margins. Notwithstanding the revenue challenges we continue to face relative to our initial annual target, we believe we are making progress against our long-term strategy that is designed to help us capture market opportunity and maintain strong competitive positioning in the years ahead.”
Financial Metrics (including Albumprinter and Webs results unless otherwise stated):
- Revenue for the third quarter of fiscal year 2013 grew to $287.7 million, a 12 percent increase over revenue of $257.6 millionreported in the same quarter a year ago. Excluding Albumprinter and Webs combined revenue of $18.0 million, total third quarter revenue was $269.7 million. Excluding the estimated impact from currency exchange rate fluctuations and revenue from acquired businesses, total revenue grew 11 percent year over year in the third quarter.
- Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the third quarter was 65.5 percent, flat with the third quarter a year ago.
- Operating income in the third quarter was $9.7 million, or 3.4 percent of revenue, and reflected an increase compared to operating income of $7.8 million, or 3.0 percent of revenue, in the same quarter a year ago.
- GAAP net income for the third quarter was $5.9 million, or 2.0 percent of revenue, representing an increase compared to $0.3 million, or 0.1 percent of revenue in the same quarter a year ago.
- GAAP net income per diluted share for the third quarter was $0.17, versus $0.01 in the same quarter a year ago.
- Non-GAAP adjusted net income for the third 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 $16.9 million, or 5.9 percent of revenue, representing a 51 percent increase compared to non-GAAP adjusted net income of $11.2 million, or 4.4 percent of revenue, in the same quarter a year ago.
- Non-GAAP adjusted net income per diluted share for the third quarter, as defined above, was $0.48, versus $0.29 in the same quarter a year ago.
- Capital expenditures in the third quarter were $11.2 million, or 3.9 percent of revenue.
- During the third quarter, the company generated $8.1 million of cash from operations and $5.5 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.
- As of March 31, 2013, the company had $51.3 million in cash and cash equivalents and $238.5 million in short-term and long-term debt. After considering debt covenant limitations, the company had $237.3 million available for borrowing under its credit facility as of March 31, 2013.
- During the third quarter, the company purchased 410,400 of its ordinary shares for $16.2 million, inclusive of transaction costs, at an average per-share cost of $39.50, as part of the share repurchase programs authorized by the Supervisory Board.
- Subsequent to the end of the third quarter and through April 17, 2013, the company purchased an additional 493,700 shares for $18.7 million, inclusive of transaction costs, at an average per-share cost of $37.90, as part of the share repurchase program authorized by the Supervisory Board in February 2013.
Fiscal 2013 Outlook as of April 25, 2013: