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, 2013.
“Fiscal year 2013 was a year with mixed financial results,” said Robert Keane, president and chief executive officer. “Our total revenue performance was disappointing relative to our expectations twelve months ago. Though our revenue growth in North America was strong with good execution of our strategic and financial objectives, our growth in Europe and Australia was weaker than expected. Moving to earnings, we were pleased with our higher than anticipated bottom-line performance for the year. This was due in part to actions we took throughout the year to improve advertising efficiency and moderate our expense growth in reaction to our lower revenue growth, reflecting our commitment to achieving our annual earnings target.”
Keane continued, “Our progress against the strategic initiatives set forth two years ago is also mixed. We are executing well in manufacturing globally, as well as advertising and customer value proposition improvements in North America. In Europe and Australia, our revenue growth has been weak, although we are encouraged by recent signs of stabilization. Finally, we are making good progress with our investments in longer-term growth initiatives including new markets in Asia as well as with Webs and Albumprinter, and we continue to be enthusiastic about the potential long-term value of these initiatives.”
Financial Metrics (include Albumprinter and Webs results unless otherwise stated) :
- Revenue for the fourth quarter of fiscal year 2013 grew to $280.1 million, a 12 percent increase over revenue of $250.4 million reported in the same quarter a year ago. Excluding Albumprinter and Webs combined revenue of $18.6 million, total fourth quarter revenue was $261.5 million. For the full fiscal year, revenue grew to $1,167.5 million, a 14 percent increase over revenue of $1,020.3 million in fiscal year 2012. Excluding the estimated impact from currency exchange rate fluctuations and revenue from acquired businesses, total revenue grew 11 percent year over year in the fourth quarter and 12 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, flat versus the same quarter a year ago. For the full fiscal year, gross margin was 65.7 percent, compared to 65.2 percent in fiscal year 2012.
- Operating income in the fourth quarter was $3.1 million, or 1.1 percent of revenue, and reflected a 39 percent decrease compared to operating income of $5.1 million, or 2.0 percent of revenue, in the same quarter a year ago. For the full fiscal year, operating income was $46.1 million, or 4.0 percent of revenue, a 16 percent decrease compared to operating income of $55.2 million, or 5.4 percent of revenue, in the prior fiscal year.
- GAAP net income for the fourth quarter was $2.3 million, or 0.8 percent of revenue, representing a 41 percent decrease compared to $3.9 million, or 1.5 percent of revenue in the same quarter a year ago. For the full fiscal year, GAAP net income was $29.4 million, or 2.5 percent of revenue, a 33 percent decrease compared to GAAP net income of $44.0 million, or 4.3 percent of revenue, in the prior fiscal year.
- GAAP net income per diluted share for the fourth quarter was $0.07, versus $0.10 in the same quarter a year ago. For the full fiscal year, GAAP net income per diluted share was $0.85, versus $1.13 in the prior full fiscal year. This decline in earnings was influenced by a mix of our planned strategic investments, dilutive acquisitions made during fiscal 2012, our fiscal 2013 minority investment in China, and higher share-based compensation expense for our named executive officers due to our recent move to more performance-based stock option grants. These effects were partially offset by lower share count as a result of recent purchases of our ordinary shares.
- 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 $14.1 million, or 5.0 percent of revenue, representing a 5 percent decrease compared to non-GAAP adjusted net income of $14.9 million, or 5.9 percent of revenue, in the same quarter a year ago. For the full fiscal year, non-GAAP adjusted net income was $75.8 million, or 6.5 percent of revenue, a 1 percent decrease compared to non-GAAP adjusted net income of $77.0 million, or 7.6 percent of revenue, in the prior fiscal year.
- Non-GAAP adjusted net income per diluted share for the fourth quarter, as defined above, was $0.41, versus $0.40 in the same quarter a year ago. For the 2013 full fiscal year, non-GAAP adjusted net income per diluted share was $2.15, versus $1.95 in the prior fiscal year.
- Capital expenditures in the fourth quarter were $12.5 million or 4.5 percent of revenue. During the full fiscal year capital expenditures were $79.0 million or 6.8 percent of revenue.
- During the fourth quarter, the company generated $37.0 million of cash from operations and $21.8 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 $140.0 million of cash from operations and $52.6 million in free cash flow.
- As of June 30, 2013, the company had $50.1 million in cash and cash equivalents and $238.8 million in short-term and long-term debt. After considering debt covenant limitations, the company had $228.6 million available for borrowing under its credit facility as of June 30, 2013.
- During the fourth quarter, the company purchased 613,000 of its ordinary shares for $23.4 million, inclusive of transaction costs, at an average per-share cost of $38.12, as part of the share repurchase program authorized by the Supervisory Board in February 2013.