Cimpress N.V. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2014; Provides Earnings Guidance for the Fiscal Year 2015; Plans to Invest About $20 Million to Build a New Manufacturing Facility in Japan in 2015
January 28, 2015 at 04:05 pm EST
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Cimpress N.V. announced unaudited consolidated earnings results for the second quarter and six months ended December 31, 2014. For the quarter, revenue was $439,905,000 compared to $370,807,000 a year ago. Income from operations was $59,888,000 compared to $52,522,000 a year ago. Income before income taxes and loss in equity interests were $66,712,000 compared to $47,747,000 a year ago. Net income attributable to company was $63,609,000 or $1.89 diluted per share compared to $40,875,000 or $1.18 diluted per share a year ago. Net cash provided by operating activities was $138,224,000 compared to $95,027,000 a year ago. Purchases of property, plant and equipment was $18,268,000 compared to $24,592,000 a year ago. Purchases of intangible assets were $60,000 compared to $44,000 a year ago. Capitalization of software and website development costs were $3,910,000 compared to $2,605,000 a year ago. Non-GAAP adjusted net income was $72,098,000 or $2.12 diluted per share compared to $52,662,000 or $1.50 diluted per share a year ago. Free cash flow was $115,986,000 compared to $67,786,000 a year ago.
For the six months, revenue was $773,837,000 compared to $645,896,000 a year ago. Income from operations was $76,747,000 compared to $60,931,000 a year ago. Income before income taxes and loss in equity interests were $92,361,000 compared to $49,753,000 a year ago. Net income attributable to company was $87,303,000 or $2.62 diluted per share compared to $41,287,000 or $1.20 diluted per share a year ago. Net cash provided by operating activities was $190,844,000 compared to $94,904,000 a year ago. Purchases of property, plant and equipment was $34,952,000 compared to $42,169,000 a year ago. Purchases of intangible assets were $145,000 compared to $119,000 a year ago. Capitalization of software and website development costs were $7,449,000 compared to $4,419,000 a year ago. Non-GAAP adjusted net income was $100,869,000 or $2.98 diluted per share compared to $68,769,000 or $1.96 diluted per share a year ago. Free cash flow was $148,298,000 compared to $48,197,000 a year ago. Part of the significant year-over-year growth in GAAP net income is due to below-the-line currency movements that created losses in the year-ago period but gains in the current period.
For fiscal 2015, the company expects revenue of approximately $1,430 million to $1,470 million, or 13% to 16% growth year over year in reported terms and 17% to 20% growth on a constant-currency basis. The company expects GAAP net income per diluted share of approximately $2.00 to $2.30, which assumes 33.6 million weighted average diluted shares outstanding. The company expects fiscal 2015 GAAP net income to benefit from strong year-to-date operational performance. The company expects non-GAAP adjusted net income per diluted share of approximately $3.80 to $4.10, which excludes expectations for the following items inclusive of their tax effects: Acquisition-related amortization of intangible assets of approximately $22.2 million or approximately $0.65 per diluted share. Share-based compensation expense of approximately $21.7 million or approximately $0.64 per diluted share. The change in fair-value estimate of acquisition-related earn-outs of approximately $7.4 million or approximately $0.22 per diluted share. The company expects depreciation and amortization expense to be approximately $95 million to $100 million.
In 2015, the company expects to invest about $20 million to build a new manufacturing facility in Japan as part of joint venture there and about $20 million in the expansion of product lines and other new manufacturing capabilities.
Cimpress plc is focused on mass customization of printing and related products, via which it delivers volumes of individually small-sized customized orders. Its segments include Vista, PrintBrothers, The Print Group, National Pen and All Other Businesses. The Vista segment includes Vista, the parent brand of multiple offerings, including VistaPrint, VistaCreate, 99designs by Vista, Vista Corporate Solutions, and Depositphotos. The PrintBrothers segment includes its druck.at, Printdeal, and WIRmachenDRUCK businesses. The Print Group segment includes its Easyflyer, Exaprint, Pixartprinting, and Tradeprint businesses. The National Pen segment includes the global operations of its National Pen business, which manufactures and markets custom writing instruments and promotional products, apparel and gifts. The All Other Businesses segment includes two businesses grouped together based on materiality. Its products are marketing materials, business cards, signage, packaging and others.
Cimpress N.V. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2014; Provides Earnings Guidance for the Fiscal Year 2015; Plans to Invest About $20 Million to Build a New Manufacturing Facility in Japan in 2015