Revenue Performance - Revenue increased by 1% to $789.5 million for the third quarter of fiscal year 2025, with organic constant-currency revenue growth of 3%[144] - Year-to-date revenue increased by 3% to $2,533.6 million, with organic constant-currency revenue growth of 4%[144] - Total revenue for the three months ended March 31, 2025, was $789,468,000, representing a 1% increase compared to $780,588,000 in the same period of 2024[153] - For the nine months ended March 31, 2025, total revenue reached $2,533,596,000, a 3% increase from $2,459,245,000 in the prior year[153] - Vista segment revenue for the three months ended March 31, 2025, was $430,651,000, a 3% increase year-over-year, with a constant-currency revenue growth of 4%[153] - PrintBrothers segment revenue increased by 4% to $155,981,000 for the three months ended March 31, 2025, with a constant-currency revenue growth of 6%[153] - Reported revenue for the segment "All Other Businesses" was $51.1 million for the three months ended March 31, 2025, representing a 5% increase compared to $48.5 million in the same period of 2024[201] Profitability and Income - Operating income for the third quarter increased by $1.3 million to $40.5 million, while year-to-date operating income decreased by $20.2 million to $160.8 million[144][147] - Net loss for the third quarter increased by $2.8 million to $8.0 million, and net income for the year-to-date decreased by $18.4 million to $41.2 million[144][148] - Adjusted EBITDA decreased by $3.5 million to $90.7 million for the third quarter, and by $38.6 million to $310.7 million year-to-date[144] - Segment EBITDA for Vista decreased by 6% to $247,370,000 for the nine months ended March 31, 2025, compared to $263,282,000 in the prior year[183] - PrintBrothers' segment EBITDA decreased by 8% to $61,218,000 for the nine months ended March 31, 2025, down from $66,237,000 in the previous year[187] - Adjusted EBITDA for the three months ended March 31, 2025, was $90.7 million, compared to $94.2 million for the same period in 2024, reflecting a decrease of approximately 5.0%[234] - Adjusted EBITDA for the nine months ended March 31, 2025, was $310.7 million, down from $349.3 million in 2024, reflecting a decrease of approximately 11.0%[234] Cash Flow and Financial Position - Cash provided by operating activities decreased by $35.0 million to $190.6 million year-to-date[144] - Adjusted free cash flow decreased by $67.1 million to $77.2 million for the nine months ended March 31, 2025[144] - Net cash provided by operating activities was $190.6 million for the nine months ended March 31, 2025, down from $225.6 million in the prior year[210] - The company had $183.0 million in cash and cash equivalents and $1.6 billion in debt as of March 31, 2025[214] - The company repurchased 714,667 ordinary shares for $56.9 million during the nine months ended March 31, 2025[215] - Total contractual obligations as of March 31, 2025, amounted to $2.6 billion, with significant commitments in operating leases and purchase commitments[220] Expenses and Costs - Cost of revenue for the three months ended March 31, 2025, was $416,960,000, which is 52.8% of total revenue, up from 51.8% in the prior year[161] - Marketing and selling expenses increased by $1.7 million for the three months ended March 31, 2025, driven by higher advertising spend[168] - General and administrative expenses decreased by $3.7 million for the three months ended March 31, 2025, primarily due to lower share-based compensation costs[171] - Central and corporate costs decreased by $4.6 million for the three months ended March 31, 2025, primarily due to lower share-based compensation expenses[207] - The company recognized a $2.6 million impairment charge during the current quarter related to the planned sale of a facility by the National Pen business[162] Tax and Interest - Income tax expense for the three months ended March 31, 2025, increased to $12,144,000, up from $10,610,000 in the prior year, with an effective tax rate of 294.5%[179] - Interest expense, net decreased by $3.2 million for the three months ended March 31, 2025, primarily due to a decrease in the weighted average interest rate on senior secured Term Loan B[177] Market and Economic Factors - The company expects to raise prices to offset tariff costs, particularly in the promotional products, apparel, and gifts industry[140][139] - The annual value of PPAG sourcing from China subject to tariffs is estimated to be less than $20 million after supply chain changes[139] - The company experienced a negative impact of $15.6 million from currency exchange rate fluctuations for the three months ended March 31, 2025[158] - Currency-related net gains and losses were significantly impacted by exchange rate volatility, with expectations of continued volatility in future periods[175] - A hypothetical 100 basis point increase in interest rates would result in an $8.4 million increase in interest expense over the next 12 months[238] - A hypothetical 10% decrease in currency exchange rates would have resulted in a $14.9 million change in income before income taxes for the three and nine months ended March 31, 2025[242] Other Financial Information - The company recognized a $2.9 million charge for a land duty tax in Australia during the nine months ended March 31, 2025, contributing to an increase in central and corporate costs[209] - The 2032 Senior Notes issued by the company amount to $525.0 million, bearing interest at 7.375% per annum, maturing on September 15, 2032[225] - The company executed interest rate swap contracts to mitigate exposure to interest rate changes related to its variable-rate debt[238] - The company’s adjusted free cash flow measure does not include cash payments for debt reduction or business acquisitions, which may limit its representation of available discretionary expenditures[233]

Core Insights - Cimpress plc (CMPR) reported an adjusted loss of 33 cents per share for Q3 fiscal 2025, missing the Zacks Consensus Estimate of earnings of 55 cents, and compared to an adjusted loss of 15 cents per share in the same quarter last year [1] - Total revenues for the quarter were $789.5 million, a 1% increase from $780.6 million year-over-year, but below the Zacks Consensus Estimate of $798 million [1] Revenue Breakdown - The National Pen segment generated revenues of $88.3 million, slightly down from $88.6 million in the year-ago quarter, and below the estimate of $91 million [2] - The Vista segment, the largest revenue generator, reported revenues of $430.7 million, up from $418.1 million year-over-year, but slightly below the estimate of $432 million [2] - The Upload and Print segment's revenues increased to $245.3 million from $237.8 million in the year-ago quarter, exceeding the estimate of $245 million [3] - Revenues from All Other Businesses were $51.1 million, compared to $48.8 million reported a year ago, and above the estimate of $49.8 million [4] Margin and Cost Analysis - Cimpress' cost of revenues was $417 million, reflecting a 3% year-over-year increase [5] - Gross profit decreased by 0.8% year-over-year to $373 million, with a margin of 47%, down 100 basis points from the previous year [6] - Adjusted EBITDA fell 3.7% year-over-year to $90.7 million [6] Balance Sheet and Cash Flow - As of March 31, 2024, Cimpress had $183 million in cash and cash equivalents, down from $203.8 million at the end of Q4 fiscal 2024 [7] - Long-term debt was $1.58 billion, slightly down from the previous quarter [7] - Net cash provided by operating activities was $9.7 million, an increase from $8.4 million in the year-ago quarter, with share repurchases totaling $3.9 million during the quarter [8] Outlook - The company has withdrawn its previously issued guidance for fiscal 2025 due to uncertainties in the tariff environment and its potential impact on costs and market demand [9]

Cimpress plc (CMPR) Q3 2025 Earnings Call May 01, 2025 08:00 AM ET Company Participants Meredith Burns - VP - Investor Relations & SustainabilityRobert Keane - Chairman & CEOSean Quinn - EVP & CFO Operator Ladies and gentlemen, thank you for standing by. Welcome to the CIMPRESS Third Quarter Fiscal Year twenty twenty five Earnings Call. Now I will introduce Meredith Barnes, Vice President of Investor Relations and Sustainability. Please go ahead. Meredith Burns Thank you, Carmen, and thank you, everyone, fo ...

Financial Data and Key Metrics Changes - Consolidated revenue grew 1% on a reported basis and 3% on an organic constant currency basis in Q3 [11] - Adjusted EBITDA declined by $3.5 million year over year, impacted by a $2.6 million impairment charge and $1.1 million in preproduction startup costs [13][14] - Gross profit was affected by the impairment charge related to the planned sale of a facility [14] Business Line Data and Key Metrics Changes - Vista experienced 3% organic constant currency growth, with double-digit growth in promotional products, signage, packaging, and labels [11][12] - Consumer products returned to 5% growth after a decline in Q2 [12] - The business cards and stationary product category declined 3% year over year, showing slight improvement from a 4% decline in the previous quarter [12] Market Data and Key Metrics Changes - Strong growth in elevated products, which include promotional products and packaging, indicating a shift towards higher lifetime value customers [5][12] - Business performance in Europe remained strong despite macro headwinds, while the US market faced challenges due to organic search algorithm changes [12] Company Strategy and Development Direction - The company is focused on expanding into elevated products to increase customer lifetime value and market share [5][10] - Plans to enhance cross SIMPRESS fulfillment to lower costs and accelerate new product introductions [6] - The company aims to balance capital deployment between organic growth investments, reducing leverage, and share repurchases [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering attractive growth in per share cash flow despite a noisy backdrop [4] - The company is navigating tariff impacts and is confident in its plans to mitigate these challenges [8][17] - Future guidance was withdrawn due to uncertainties in the tariff and trade environment [83][84] Other Important Information - The company is preparing to launch a new website for PixArt printing in the US, marking its entry into the upload and print market [6] - The company expects to finish the year with increased liquidity despite near-term tariff impacts [18] Q&A Session Summary Question: Which customer verticals are most exposed to tariff impacts? - Management indicated that promotional products, apparel, and gifts (PPAG) represent over 20% of consolidated revenue, with the US portion being about 11% [20][21] Question: What is the expected tariff expense on remaining China COGS? - The estimated additional cost due to tariffs on the remaining $20 million of COGS from China is approximately $29 million, but pricing changes may offset some of this impact [26][28] Question: How is revenue growth in April compared to last year? - Management noted that April's revenue trends were stable compared to March, complicated by holiday timing shifts [42][43] Question: What is driving the lackluster growth at National Penn? - The growth is primarily occurring in e-commerce and cross fulfillment, while direct mail advertising has been reduced due to insufficient returns [44] Question: How does management view the long-term gross margin profile? - Management emphasized a focus on gross profit rather than gross margin percentage, indicating that lower margin products can still generate significant profit [51][58] Question: What is the rationale for withdrawing long-term guidance? - The withdrawal was primarily due to uncertainties in the tariff and trade environment, which complicates forecasting [83][84]

Financial Performance - Cimpress reported a quarterly loss of $0.33 per share, which was worse than the Zacks Consensus Estimate of $0.55, and compared to a loss of $0.15 per share a year ago, indicating a significant earnings surprise of -160% [1] - The company posted revenues of $789.47 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.03%, and showing a slight increase from year-ago revenues of $780.59 million [2] - Over the last four quarters, Cimpress has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once as well [2] Stock Performance - Cimpress shares have declined approximately 40.5% since the beginning of the year, in contrast to the S&P 500's decline of -5.5% [3] - The current Zacks Rank for Cimpress is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.26 on revenues of $853.26 million, and for the current fiscal year, it is $3.59 on revenues of $3.4 billion [7] - The estimate revisions trend for Cimpress is mixed, and future earnings expectations will largely depend on management's commentary during the earnings call [3][4] Industry Context - The Consumer Services - Miscellaneous industry, to which Cimpress belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Cimpress plc (CMPR) Q3 2025 Earnings Call April 30, 2025 04:05 PM ET Company Participants Meredith Burns - VP - Investor Relations & SustainabilityRobert Keane - Founder, Chairman & CEOSean Quinn - EVP & CFO Operator Ladies and gentlemen, thank you for standing by. Welcome to the Sympress Third Quarter Fiscal Year twenty twenty five Earnings Call. Now, I will introduce Meredith Barnes, Vice President of Investor Relations and Sustainability. Please go ahead. Thank you, Carmen, and thank Meredith Burns you e ...

Revenue Growth - Revenue for Q3 FY2025 grew 1% on a reported basis and 3% on an organic constant-currency basis compared to Q3 FY2024[3] - Vista's Q3 revenue grew 3% year over year, with promotional products and apparel driving double-digit growth[4] - PrintBrothers and The Print Group reported revenue growth of 4% and 3% year over year, respectively, with organic constant-currency growth of 6%[6] - National Pen's Q3 revenue was flat year over year, with a 1% increase on an organic constant-currency basis[8] - All Other Businesses saw a 5% revenue growth year over year, driven by strong cross-Cimpress fulfillment[9] - Revenue for the Vista segment reached $498 million in Q3 FY2025, representing a year-over-year growth of 14%[78] - The Print Group reported revenue of $99 million in Q3 FY2025, with a year-over-year growth of 15%[85] - National Pen segment revenue was $130 million in Q3 FY2025, reflecting a growth of 12% year-over-year[88] - Reported revenue growth for Q3 FY23 was 13%, with a constant-currency revenue growth of 16%[132] - The Print Group experienced a reported revenue growth of 12% in Q3 FY23, with a constant-currency growth of 18%[132] - National Pen reported a revenue growth of 12% in Q3 FY23, with a constant-currency growth of 14%[132] Financial Performance - Operating income increased by $1.3 million year over year to $40.5 million, while net loss rose by $2.8 million to $8.0 million[3] - Adjusted EBITDA decreased by $3.5 million year over year to $90.7 million, impacted by increased operating expenses[3] - Total segment EBITDA for Q3 FY2024 was $115.582 million, an increase of 26% compared to Q3 FY2023's $91.567 million[29] - Adjusted EBITDA for Q3 FY2024 reached $94.158 million, reflecting a year-over-year growth of 36% from $69.145 million in Q3 FY2023[29] - Adjusted EBITDA margin improved to 12% in Q3 FY2024, up from 9% in Q3 FY2023[29] - The company reported a year-over-year decline in adjusted EBITDA growth of 4% for YTD FY2024 compared to YTD FY2023[29] - Adjusted EBITDA for the company was positively impacted by $1.0 million in Q3 FY2025 due to currency hedges[114] - Adjusted EBITDA increased from $263.7 million in Q3 FY23 to a projected $468.7 million in Q3 FY25, indicating strong operational performance[175] Cash Flow and Investments - Net cash provided by operating activities for YTD FY2024 was $225.627 million, significantly higher than $68.474 million in YTD FY2023[32] - Cash used in investing activities increased to $(41.104) million in Q3 FY2025, compared to $(14.314) million in Q3 FY2024[32] - Adjusted free cash flow for Q3 FY2024 was $(16.647) million, a decline from $(12.833) million in Q3 FY2023[33] - Net cash provided by operating activities for Q3 FY24 was $225.6 million, a decrease from $468.5 million in Q3 FY23[169] - Adjusted free cash flow for Q3 FY24 was $144.2 million, compared to $(11.3) million in Q3 FY23[169] - Cash paid for interest in Q3 FY24 was $90.6 million, compared to $70.8 million in Q3 FY23[169] - Cash restructuring payments in Q3 FY24 amounted to $14.9 million, significantly higher than $0.7 million in Q3 FY23[169] Debt and Leverage - Net leverage increased to 3.3 times trailing-twelve month EBITDA, up from 3.1 in Q2 FY2025[3] - Net debt decreased to $1,425 million in Q3 FY2025 from $1,520 million in Q3 FY2023, reflecting a reduction of approximately 6.3%[72] - Total debt outstanding as of Q3 FY23 was $1,710.2 million, projected to decrease to $1,607.7 million by Q4 FY25[175] - Adjusted Net Debt decreased from $1,557.5 million in Q3 FY23 to $1,511.0 million in Q1 FY24, with a further decrease expected to $1,418.0 million by Q4 FY25[175] - Consolidated Net Leverage Ratio improved from 4.83 in Q3 FY23 to a projected 2.97 by Q1 FY25, reflecting better debt management[175] - Senior Secured Net Leverage Ratio decreased from 2.97 in Q4 FY23 to a projected 1.90 by Q1 FY25, indicating enhanced financial stability[175] Guidance and Future Outlook - The company has withdrawn its prior guidance for FY2025 and beyond due to uncertainty in the tariff environment[18] - The company anticipates a revenue growth in constant currency of 4% for Q3 FY25, excluding the impact of TTM acquisitions[139] - Future revenue growth in constant currency is projected to be 5% for Q3FY25[141] - Future expectations include managing through near-term challenges while maintaining liquidity and growth investments, with a focus on maximizing per-share value[181] - The company is positioned to capitalize on opportunities arising from an uncertain operating environment, including potential M&A activities[181] - The mass customization strategy remains a core focus, with ongoing investments aimed at enhancing competitive advantages and operational efficiencies[178] Share Repurchase and Corporate Costs - The company repurchased 57,474 shares for $3.9 million at an average price of $68.66 per share in the first month of the quarter[3] - Central and corporate costs totaled $39 million in Q3 FY2025, showing a slight increase from $34 million in Q3 FY2023[108] - Central and corporate costs, excluding unallocated share-based compensation (SBC), decreased to $(99.2) million in Q3FY24 from $(109.5) million in Q3FY23[150] - Share-based compensation expense increased to $48.5 million in Q3FY24 from $29.3 million in Q3FY23[159]

Cimpress plc (CMPR) Q3 2025 Earnings Call April 30, 2025 04:05 PM ET Speaker0 Ladies and gentlemen, thank you for standing by. Welcome to the Sympress Third Quarter Fiscal Year twenty twenty five Earnings Call. Now, I will introduce Meredith Barnes, Vice President of Investor Relations and Sustainability. Please go ahead. Thank you, Carmen, and thank Speaker1 you everyone for joining us. With us today are Robert Keane, our Founder, Chairman and Chief Executive Officer and Sean Quinn, our EVP and Chief Finan ...

Core Viewpoint - Cimpress plc (CMPR) has underperformed in operational performance, leading to investor disappointment due to rising costs, high debt levels, and foreign exchange challenges [1][2]. Group 1: Financial Performance - Cimpress's shares have declined by 41.3% over the past year, significantly worse than the industry average decline of 11.1% [2]. - The company's cost of revenues increased by 3.3% in fiscal 2024 and by 5.6% year-over-year in the second quarter of fiscal 2025, driven by rising costs for materials and shipping [4]. - General and administrative expenses rose by 16.7% year-over-year in the fiscal second quarter, primarily due to increased compensation costs [5]. Group 2: Cost Challenges - The company is facing persistent input cost inflation, which, if not controlled, could severely impact margins and profitability in future quarters [5]. - Rising costs for product substrates, production materials, freight, and energy are contributing to the overall increase in operating expenses [4]. Group 3: Debt and Forex Exposure - Cimpress's debt level stood at $1.6 billion at the end of the second quarter of fiscal 2025, raising concerns given its cash and cash equivalents of only $224.4 million [6]. - The company's international operations expose it to risks from adverse currency fluctuations, particularly with a strengthening U.S. dollar affecting pricing and profit margins outside the U.S. [7].

Revenue Performance - Revenue increased by 2% to $939.2 million for the three months ended December 31, 2024, compared to $921.4 million in the prior year[130]. - Organic constant-currency revenue growth was 2% for the three months ended December 31, 2024[132]. - Revenue increased by 4% to $1,744.1 million for the six months ended December 31, 2024, compared to $1,678.7 million in the prior year[136]. - The Print Group reported a revenue increase of 7% for the three months ended December 31, 2024, reaching $98.6 million[136]. - Vista segment revenue increased by 5% to $927.2 million for the six months ended December 31, 2024[136]. - Vista's reported revenue for the three months ended December 31, 2024, was $497.7 million, reflecting a 3% increase compared to the prior year[160]. - PrintBrothers reported revenue for the three months ended December 31, 2024, was $174,508 thousand, a 5% increase from $165,551 thousand in 2023[163]. - The Print Group's reported revenue for the three months ended December 31, 2024, was $98,628 thousand, reflecting a 7% increase from $92,135 thousand in 2023[166]. - National Pen's reported revenue for the three months ended December 31, 2024, was $131,423 thousand, a 1% increase from $130,096 thousand in 2023[170]. - All Other Businesses reported revenue of $60,333 thousand for the three months ended December 31, 2024, a 1% increase from $59,762 thousand in 2023[174]. Operating Income and Expenses - Operating income decreased by $26.7 million to $80.9 million for the three months ended December 31, 2024[131]. - Adjusted EBITDA decreased by $34.2 million to $132.3 million for the three months ended December 31, 2024[132]. - Cash provided by operating activities decreased by $36.3 million to $180.9 million for the six months ended December 31, 2024[134]. - Adjusted free cash flow decreased by $53.0 million to $107.9 million for the six months ended December 31, 2024[134]. - Cost of revenue increased by $25.8 million to $489.3 million for the three months ended December 31, 2024, representing 52.1% of revenue[139]. - Technology and development expenses increased by $2.9 million (4%) and $10.4 million (7%) for the three and six months ended December 31, 2024, respectively, compared to the prior year periods[140]. - Marketing and selling expenses rose by $12.0 million (6%) and $23.7 million (6%) for the three and six months ended December 31, 2024, respectively, driven by higher advertising spend and cash compensation costs[144]. - General and administrative expenses increased by $8.1 million (17%) and $11.7 million (12%) for the three and six months ended December 31, 2024, respectively, due to higher long-term incentive compensation and cash compensation costs[146]. Segment Performance - Segment EBITDA for Vista decreased by $15.4 million (14%) for the three months ended December 31, 2024, primarily due to non-recurrence of prior-year benefits and shifts in product mix[162]. - Revenue growth for Vista was stronger in Europe and globally, but was dampened by declines in North American consumer products and business cards[161]. - National Pen's segment EBITDA decreased by 8% for the three months ended December 31, 2024, primarily due to gross margin compression[172]. - The Print Group's segment EBITDA increased by 22% for the six months ended December 31, 2024, compared to the prior year[168]. - Segment EBITDA for PrintBrothers decreased by $5.5 million year over year for both the three and six months ended December 31, 2024, primarily due to the non-recurrence of government incentives[165]. Cash Flow and Debt - Consolidated net cash provided by operating activities for the six months ended December 31, 2024, was $180,903 thousand, down from $217,200 thousand in 2023[182]. - Cash and cash equivalents at December 31, 2024, were $224,400 thousand, while total debt was $1,610,500 thousand[185]. - As of December 31, 2024, the company had $1,078.2 million in borrowings under its Restated Credit Agreement, with a final maturity date of May 17, 2028[195]. - The company had $1,078.2 million of variable-rate debt, exposing it to market risk for changes in interest rates[211]. - A hypothetical 100 basis point increase in interest rates would result in an $8.5 million impact to interest expense over the next 12 months[211]. Tax and Other Income - Income tax expense for the three months ended December 31, 2024, was $21.2 million, with an effective tax rate of 25.6%, up from 21.8% in the prior year[155]. - Other income (expense), net improved to $31.7 million for the three months ended December 31, 2024, compared to a loss of $0.4 million in the prior year, primarily due to currency exchange rate volatility impacting derivatives[149]. Future Outlook and Commitments - The company expects continued volatility in currency exchange rates impacting future results, as it does not apply hedge accounting for most derivative currency contracts[149]. - As of December 31, 2024, the company had unrecorded purchase commitments under contract of $207.2 million, including $93.2 million for third-party fulfillment and digital services[193]. - The company entered into an amendment to its Restated Credit Agreement, extending the maturity date of its $250.0 million senior secured revolving credit facility to September 26, 2029, with $237.3 million unused as of December 31, 2024[194]. - The company completed a private placement of $525.0 million in senior unsecured notes due 2032, bearing interest at 7.375% per annum[196]. - Capitalized internal and external costs for software and website development amounted to $31.2 million[190]. - Payment of withholding taxes related to share awards totaled $16.8 million, primarily due to the vesting of restricted and performance share unit grants[190].