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VistaPrint Reports Third Quarter Sales Increase of 67%

Monday, April 30, 2007

Press release from the issuing company

HAMILTON, Bermuda, Apr 26, 2007 -- VistaPrint announced its financial results for the three month period ended March 31, 2007, the third quarter of its 2007 fiscal year. Revenue for the third quarter of fiscal year 2007 was $69.3 million, an increase of 67 percent when compared to revenue of $41.6 million in the same quarter of fiscal year 2006. Net income on a GAAP basis for the third quarter of fiscal year 2007 was $7.4 million, which was 10.6 percent of revenue and $0.16 per share on a fully diluted basis. During the same quarter of the prior fiscal year, ended March 31, 2006, the Company achieved net income on a GAAP basis of $5.3 million, which was 12.7 percent of revenue and $0.12 per share on a fully diluted basis. On a non-GAAP basis, excluding share-based compensation expense, adjusted net income for the third quarter of fiscal 2007 was $9.4 million, 13.5 percent of revenue, and $0.20 per fully diluted share. During the same quarter of the prior year, non-GAAP adjusted net income, excluding share-based compensation expense and the reversal of an income tax accrual, was $7.2 million, 17.3 percent of revenue, and $0.16 per fully diluted share. "VistaPrint delivered another outstanding quarter," said Robert Keane, president and chief executive officer. "Our results confirm the power of our value proposition in this very large market." Continuing, Mr. Keane stated, "Our business is growing rapidly and we continue to invest for significant growth. We seek to build a transformational business and remain focused on the long term." Financial Metrics: * Revenue for the third quarter grew to $69.3 million, a 67 percent increase over revenue of $41.6 million reported in the same quarter a year ago. * The third quarter of fiscal 2007 was the Company's 27th consecutive quarter of organic sequential revenue growth. * Gross margin (revenue minus the cost of revenue) in the third quarter was 65.1 percent, compared to 70.6 percent in the same quarter a year ago. * Operating income in the third quarter of was $7.4 million, or 10.7 percent of revenue, and reflected a 45 percent increase over $5.1 million in the prior fiscal year period. * GAAP net income for the third quarter was $7.4 million, or 10.6 percent of revenue, representing a 40 percent increase compared to $5.3 million during the same quarter last year. * Non-GAAP net income for the third quarter, which excludes share-based compensation expense, was $9.4 million, or 13.5 percent of revenue, representing a 31 percent increase over $7.2 million in the prior fiscal year period, which excluded share-based compensation expense and the reversal of an income tax accrual. * Non-GAAP fully diluted earnings per share for the third quarter, which excludes share-based compensation expense, was $0.20, versus $0.16 in the same quarter a year ago, which excluded share-based compensation expense and the reversal of an income tax accrual. * The Company had $113 million in cash, cash equivalents and marketable securities as of March 31, 2007. * Capital expenditures in the third quarter were $14.5 million. * During the third quarter, the Company generated $18.5 million in cash from operations. Operating Metrics: * Number of new customers totaled more than 800,000 in the quarter ending March 31, 2007, representing the greatest number of new customers in a single quarter in operating history. * Repeat customers generated 63 percent of total quarterly bookings, the same as in the third quarter of the prior fiscal year. * Average daily order volume in the third quarter exceeded 21,000, up 50 percent from an average of approximately 14,000 orders per day in the prior fiscal year's third quarter. * Advertising spending in the third quarter was $13.9 million or 20.1 percent of revenue. * Non-US markets contributed 32 percent of total revenue in the third quarter, up from 30 percent in the prior fiscal year's third quarter. * Average Order Value in the third quarter including revenue from shipping was $33.02, a 9 percent increase when compared to $30.16 in the same quarter in the prior fiscal year. * Web site sessions in the third quarter were 34.9 million, a 38 percent increase over 25.3 million in the third quarter of fiscal 2006. * Conversion rates were 5.6 percent in the third quarter of fiscal 2007, compared to 5.2 percent during same quarter in the prior year. Growth Investments & Innovation: * Invested $14.5 million in capital expenditures in the third quarter of fiscal 2007. * Ramped up operations in VistaPrint's European marketing headquarters in Barcelona. * Completed a 95,000 square foot expansion of the Canadian manufacturing facility. * Introduced two new products: pocket-sized self-inking stamps and personalized bank checks. "VistaPrint continues to deliver strong financial results in line with the top end of our prior guidance," noted chief financial officer Harpreet Grewal. He continued, "Our results derive from the strong value proposition we deliver and are indicative of the opportunity we see ahead of the Company." Financial Guidance as of April 26, 2007: Based on current and anticipated levels of demand, the Company expects the following financial results: Revenue * For the fourth quarter of fiscal year 2007, ending June 30, 2007, the Company expects revenue to be $71 million to $74 million. * For the full fiscal year ending June 30, 2007, the Company expects revenue to be $254 million to $257 million. Gross Margins * For the fourth quarter of fiscal year 2007, ending June 30, 2007, the Company expects gross margins to be 63 percent to 65 percent. * For the full fiscal year ending June 30, 2007, the Company expects gross margins to be 64 percent to 65 percent. GAAP Fully-Diluted Earnings Per Share * For the fourth quarter of fiscal year 2007, ending June 30, 2007, the Company expects GAAP fully-diluted earnings per share to be $0.10 to $0.12. GAAP fully-diluted earnings per share in the fourth quarter will be impacted by an increase in share-based compensation charges related to a departmental reorganization. * For the full fiscal year ending June 30, 2007, the Company expects GAAP fully-diluted earnings per share to be $0.58 to $0.60. Non-GAAP Fully-Diluted Earnings Per Share * For the fourth quarter of fiscal year 2007, ending June 30, 2007, the Company expects non-GAAP fully-diluted earnings per share, excluding share-based compensation expense, to be $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 be $0.76 to $0.78. Capital Expenditures Given current and anticipated demand, the Company expects capital expenditures in line with previous guidance, as follows: * For the fourth quarter of fiscal year 2007, ending June 30, 2007, the Company expects to make capital expenditures of $17 to $20 million. * For the full fiscal year ending June 30, 2007, the Company expects to make capital expenditures of approximately 24 to 25 percent of fiscal year 2007 revenue, which translates to between $62 and $65 million given revenue guidance of $254 to $257 million. The foregoing guidance supersedes any guidance previously issued by the Company for the fourth quarter of fiscal 2007 and for the full fiscal years ending June 30, 2007 and June 30, 2008. All such previous guidance should no longer be relied upon.

 

 

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