Financial Data and Key Metrics Changes - Adjusted EBITDA increased by $25 million year-over-year in Q3 to $94 million, with adjusted EBITDA margins rising nearly 300 basis points to just over 12% due to gross margin expansion and operating expense efficiency [4][6][15] - Adjusted free cash flow was an outflow of $16.6 million this quarter, which is a $3.8 million increase in outflow year-over-year despite improved adjusted EBITDA, attributed to seasonal working capital patterns [5][15] - Consolidated revenue grew 5% on a reported basis and 4% on an organic constant currency basis, with a $6 million impact from the timing of the Easter holiday [14][15] Business Line Data and Key Metrics Changes - The Upload & Print businesses and National Pen showed improved trends despite tough comparisons from the previous year, while growth in "all other businesses" remained flat [4][6] - Home decor, particularly canvas prints, is a significant part of BuildASign's revenue, but has seen a normalization of demand post-pandemic [20][21] - National Pen's capitalized software has been consistently around 1% of revenue, reflecting strong growth in its e-commerce segment [27][55] Market Data and Key Metrics Changes - BuildASign's revenue is impacted by its exposure to the real estate and DIY home decor markets, with real estate accounting for about 10% of its revenue [21][47] - The signage category in both BuildASign and Vista has been strong, with expectations of benefiting from the upcoming political cycle in the U.S. [49] Company Strategy and Development Direction - The company plans to increase CapEx in FY2025 for new product introductions and efficiency improvements, while not expecting material M&A [8][40] - The new leverage policy targets net leverage at approximately 2.5x or below, with flexibility to go up to 3.0x for attractive investments [40][62] - The company emphasizes organic investments in OpEx and CapEx, with a focus on maintaining operational rigor and high return thresholds for capital allocation [31][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding prior guidance, citing strong results and improved profitability [6][15] - The company anticipates organic constant currency revenue growth at mid-single-digit rates and adjusted EBITDA growth slightly faster than revenue [16][40] - Management acknowledged the impact of external factors, such as currency headwinds and holiday timing, on financial performance [19][45] Other Important Information - The company ended the quarter with cash and marketable securities of $160.8 million and full access to a $250 million revolving credit facility [15] - A total of 1.3 million shares were repurchased for $120 million at an average price of $93 per share, representing about 5% of shares outstanding [38][58] Q&A Session Summary Question: Why didn't EBITDA grow more than $25 million despite cost savings? - The contribution profit growth dropped through to EBITDA due to operating expense efficiency and cost reductions implemented last year, along with a slight impact from the Easter holiday timing [10][44] Question: What percentage of BuildASign's revenue comes from real estate and DIY home decor? - BuildASign's revenue is impacted by real estate and DIY home decor, with real estate accounting for about 10% of revenue, but the connection to home decor is more about channel performance than direct market exposure [21][47] Question: What is the timeline for refinancing high-yield notes? - The company has not made decisions on refinancing yet, but they have time before maturity and will continue to focus on consistent execution [29][57] Question: What IRR thresholds are targeted for capital allocation activities? - The company targets an IRR of 15% for M&A and new product introductions, with a higher threshold for organic investments [32][60] Question: Why is the leverage policy set at 2.5x instead of 1x or 4x? - The leverage policy is designed to balance risk management and operational flexibility, allowing for resilience during economic shocks while still providing returns to equity [35][62]

Segment Revenue Segment Profitability 36 Central and Corporate Costs During the three and nine months ended March 31, 2024, central and corporate costs increased by $5.0 million and $4.4 million, as compared to the prior-year periods. The increases were largely driven by $8.7 million and $15.5 million of increased share-based compensation expense, respectively, due to a higher grant pool and the impact from our 2024 PSU grants that have an accelerated expense profile as well as expense volatility from chang ...

Cimpress plc (CMPR) reported third-quarter fiscal 2024 (ended Mar 31, 2024) adjusted loss of 15 cents per share, which lagged the Zacks Consensus Estimate of earnings of 14 cents. Cimpress incurred an adjusted loss of $1.88 per share in the year-ago quarter.Top-Line DetailsTotal revenues were $780.6 million, reflecting an increase of 5.2% from $742.2 million in the year-ago quarter. The organic constant-currency revenue growth was 4% year over year, driven by growth in each of its businesses. However, the t ...

Cimpress (CMPR) reported $780.59 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 5.2%. EPS of -$0.15 for the same period compares to -$0.97 a year ago.The reported revenue represents a surprise of -0.26% over the Zacks Consensus Estimate of $782.65 million. With the consensus EPS estimate being $0.14, the EPS surprise was -207.14%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

[Letter from Robert Keane, CEO](index=2&type=section&id=Letter%20from%20Robert%20Keane%2C%20CEO) [Q3 FY2024 Performance Highlights](index=2&type=section&id=Q3%20FY2024%20Performance%20Highlights) Cimpress reported strong Q3 FY2024 financial results, characterized by revenue growth, gross margin expansion, and operating expense efficiencies, with a significant year-over-year increase in operating income and adjusted EBITDA, alongside a reduction in net leverage from 4.8x to 3.0x, and active share repurchases reducing shares outstanding by 5% Q3 FY2024 Key Financial Metrics (vs. Q3 FY2023) | Metric | Q3 FY2024 | Change (YoY) | Note | | :--- | :--- | :--- | :--- | | Revenue | $780.6M | +5% reported, +4% organic | Easter holiday timing dampened growth | | Operating Income | $39.2M | +$51.4M | Includes lower restructuring charges | | Adjusted EBITDA | $94.2M | +$25.0M | Includes a ~$4.2M negative currency impact | | Adjusted Free Cash Flow | -$16.6M | -$3.8M | Driven by working capital outflows | | Net Leverage | 3.0x | Down from 4.8x | As defined by credit agreement | - The company repurchased **1.3 million shares** for **$120.0 million**, reducing shares outstanding by **5%**, executed under a **$150 million** board authorization[5](index=5&type=chunk) - Trailing-twelve-month (TTM) adjusted EBITDA increased by **$199.6 million** to **$463.2 million** as of March 31, 2024[5](index=5&type=chunk) [Segment Commentary](index=2&type=section&id=Segment%20Commentary) All primary business segments contributed positively to EBITDA growth, with Vista's revenue growing 5% with expanded EBITDA, Upload & Print businesses seeing combined revenue growth of 6% and a 19% increase in EBITDA, National Pen delivering strong 10% revenue growth and significant EBITDA improvement, and the 'All Other Businesses' segment experiencing flat revenue with a slight EBITDA decline - **Vista:** Revenue grew **5%** (reported and organic), with a **19% increase** in segment EBITDA to **$71.8 million**, driven by higher customer count and average order value[4](index=4&type=chunk)[6](index=6&type=chunk) - **Upload & Print (PrintBrothers & The Print Group):** Combined revenue grew **6%** (**4% organic**), with a **19% increase** in combined EBITDA, benefiting from lower input costs and operating efficiencies[7](index=7&type=chunk)[8](index=8&type=chunk) - **National Pen:** Revenue grew **10%** (reported and organic), with EBITDA improving by **$8.2 million** due to growth and efficiency gains[9](index=9&type=chunk) - **All Other Businesses:** Revenue was **flat**, with strong growth in signage offset by headwinds in real-estate and home decor products, leading to a **slight EBITDA decline**[10](index=10&type=chunk) [Outlook, New Leverage Policy and Capital Allocation](index=3&type=section&id=Outlook%2C%20New%20Leverage%20Policy%20and%20Capital%20Allocation) The company is shifting from near-term guidance to a multi-year outlook, expecting mid-single-digit annual organic revenue growth and slightly faster adjusted EBITDA growth, with a new leverage policy targeting net leverage at or below 2.5x TTM EBITDA, and capital allocation through FY2025 prioritizing organic investment and share/debt repurchases over significant M&A - The company is confident it will meet or exceed prior **FY2024 guidance** and will now provide **multi-year guidance** commentary instead of detailed near-term guidance[12](index=12&type=chunk)[13](index=13&type=chunk) - **Multi-year Outlook:** - Annual organic revenue growth: **Mid-single-digit rates** - Annual adjusted EBITDA: Expected to grow **slightly faster than revenue** - Adjusted EBITDA to adjusted FCF conversion: **Approximately 45% to 50% annually**[14](index=14&type=chunk) - **New Leverage Policy:** - Target net leverage at or below **~2.5x TTM EBITDA** - May temporarily increase to **~3.0x** for high-return investments[15](index=15&type=chunk) - **FY2025 Capital Allocation Priorities:** - Continue operating expense growth investment - Increase capital expenditures for new products and productivity - No significant M&A - Repurchase shares and/or debt at attractive prices[19](index=19&type=chunk) [Consolidated Financial Results](index=5&type=section&id=Consolidated%20Financial%20Results) [Consolidated Results: Three-Year Trend](index=5&type=section&id=Consolidated%20Results%3A%20Three-Year%20Trend) This section provides a three-year trend of consolidated revenue, operating income, and EBITDA, with Q3 FY2024 total revenue reaching $780.6 million (a 5% increase YoY), operating income showing a significant turnaround to $39.2 million from a loss of $12.2 million, and Adjusted EBITDA growing 36% YoY to $94.2 million, reflecting similar strong positive trends in YTD results Consolidated Revenue and Operating Income (in thousands) | Metric | Q3 FY2023 | Q3 FY2024 | YTD FY2023 | YTD FY2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $742,164 | $780,588 | $2,290,781 | $2,459,245 | | Income from Operations | $(12,197) | $39,238 | $3,414 | $181,017 | Consolidated Adjusted EBITDA (in thousands) | Metric | Q3 FY2023 | Q3 FY2024 | YTD FY2023 | YTD FY2024 | | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $69,145 | $94,158 | $225,922 | $349,328 | | Adjusted EBITDA Margin | 9% | 12% | 10% | 14% | Consolidated Cash Flow (in thousands) | Metric | Q3 FY2023 | Q3 FY2024 | YTD FY2023 | YTD FY2024 | | :--- | :--- | :--- | :--- | :--- | | Net cash from operating activities | $12,599 | $8,427 | $68,474 | $225,627 | | Adjusted free cash flow | $(12,833) | $(16,647) | $(11,329) | $144,242 | [Key Financial Metrics (Quarterly & TTM)](index=7&type=section&id=Key%20Financial%20Metrics%20%28Quarterly%20%26%20TTM%29) This section visually presents key quarterly and trailing-twelve-month (TTM) trends, showing strong improvement in profitability metrics with TTM GAAP Operating Income reaching $235 million and TTM Adjusted EBITDA hitting $463 million, alongside a strengthened capital structure evidenced by a significant reduction in the consolidated net leverage ratio to 3.01x from 4.83x a year ago - Quarterly GAAP Operating Income was **$39 million** in Q3 FY2024, a significant improvement from a loss of **$12 million** in Q3 FY2023, with TTM GAAP Operating Income rising to **$235 million**[32](index=32&type=chunk)[42](index=42&type=chunk) - Quarterly Adjusted EBITDA increased to **$94 million** (**12% margin**) in Q3 FY2024 from **$69 million** (**9% margin**) in Q3 FY2023, with TTM Adjusted EBITDA reaching **$463 million** (**14% margin**)[35](index=35&type=chunk)[43](index=43&type=chunk) Net Leverage Ratios (per credit agreement) | Metric | Q3 FY2023 | Q3 FY2024 | | :--- | :--- | :--- | | Consolidated net leverage | 4.83x | 3.01x | | Senior secured net leverage | 2.97x | 1.95x | [Segment Performance Analysis](index=10&type=section&id=Segment%20Performance%20Analysis) [Vista](index=10&type=section&id=Vista) Vista's revenue grew 5% YoY to $418 million in Q3 FY2024, with organic constant-currency growth also at 5%, while segment EBITDA increased 19% to $72 million, with the margin expanding to 17%, and advertising spend as a percentage of revenue remained stable at 15.0% Vista Q3 Performance ($M) | Metric | Q3 FY2023 | Q3 FY2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | $397 | $418 | 5% | | Segment EBITDA | $60 | $72 | 19% | | EBITDA Margin | 15% | 17% | +2 p.p. | - Advertising spend was **$63 million** in Q3 FY2024, representing **15.0% of revenue**, a **50 basis point increase** YoY, with a higher mix in mid- and upper-funnel channels[6](index=6&type=chunk)[71](index=71&type=chunk) [Upload and Print (PrintBrothers & The Print Group)](index=11&type=section&id=Upload%20and%20Print%20%28PrintBrothers%20%26%20The%20Print%20Group%29) The combined Upload and Print businesses reported 6% revenue growth to $238.2 million in Q3 FY2024, with PrintBrothers' revenue growing 8% to $150.3 million and The Print Group's revenue growing 3% to $88.0 million, as both segments saw EBITDA and margin expansion PrintBrothers Q3 Performance ($M) | Metric | Q3 FY2023 | Q3 FY2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | $140 | $150 | 8% | | Segment EBITDA | $16 | $17 | 6% | The Print Group Q3 Performance ($M) | Metric | Q3 FY2023 | Q3 FY2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | $86 | $88 | 3% | | Segment EBITDA | $14 | $18 | 29% | [National Pen](index=12&type=section&id=National%20Pen) National Pen demonstrated strong performance with a 10% YoY revenue increase to $89 million in Q3 FY2024, also on a constant-currency basis, and segment EBITDA saw a significant turnaround, improving from a loss of $3.3 million in Q3 FY2023 to a profit of $4.8 million National Pen Q3 Performance ($M) | Metric | Q3 FY2023 | Q3 FY2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $81 | $89 | +10% | | Segment EBITDA | ($3.3) | $4.8 | +$8.1M | [All Other Businesses](index=13&type=section&id=All%20Other%20Businesses) The 'All Other Businesses' segment reported flat revenue of $49 million in Q3 FY2024, with strong growth in signage offset by headwinds in real-estate and home decor products, leading to a segment EBITDA decline to $4 million from $5 million in the prior-year quarter All Other Businesses Q3 Performance ($M) | Metric | Q3 FY2023 | Q3 FY2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | $49 | $49 | 0% | | Segment EBITDA | $5 | $4 | -20% | [Central and Corporate Costs](index=14&type=section&id=Central%20and%20Corporate%20Costs) Quarterly central and corporate costs, excluding unallocated share-based compensation (SBC), decreased by $3.4 million YoY due to cost reductions, however, total costs including unallocated SBC were higher, driven by increased SBC expense related to strong company performance against long-term incentive targets - Quarterly central and corporate costs (excluding unallocated SBC) decreased to **$34.9 million** in Q3 FY2024 from **$38.4 million** in Q3 FY2023[11](index=11&type=chunk)[134](index=134&type=chunk) - Unallocated share-based compensation expense **increased**, resulting in total central costs being **higher** year-over-year[11](index=11&type=chunk)[103](index=103&type=chunk) [Financial Details and Reconciliations](index=15&type=section&id=Financial%20Details%20and%20Reconciliations) [Currency Impacts](index=15&type=section&id=Currency%20Impacts) In Q3 FY2024, currency fluctuations had a positive 100 basis point impact on year-over-year reported revenue growth, but the net impact on adjusted EBITDA was negative, and other income (expense) was a net expense of $3.7 million, primarily driven by currency-related items Y/Y Impact from Currency (Q3 FY2024) | Financial Measure | Y/Y Impact | | :--- | :--- | | Revenue | Positive | | Operating income | Neutral | | Adjusted EBITDA | Negative | | Adjusted free cash flow | Negative | - Other income (expense) was a net expense of **$3.7 million**, which included a **$0.3 million** realized loss on certain currency hedges and **$3.4 million** in other net losses from revaluation of derivatives and balances[109](index=109&type=chunk)[114](index=114&type=chunk) [Consolidated Financial Statements](index=16&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's financial position and performance, with the balance sheet showing total assets of $1.78 billion, the statement of operations reflecting a significant YTD improvement from a net loss of $213.1 million to a net income of $59.6 million, and the cash flow statement indicating a substantial increase in YTD net cash from operating activities [Consolidated Balance Sheets](index=16&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, the company held $1.78 billion in total assets, a decrease from $1.85 billion at June 30, 2023, with total liabilities also decreasing to $2.41 billion from $2.47 billion, and cash and cash equivalents standing at $154.3 million Key Balance Sheet Items (in thousands) | Item | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Total Current Assets | $442,178 | $441,027 | | Total Assets | $1,784,313 | $1,854,859 | | Total Current Liabilities | $635,920 | $645,332 | | Total Liabilities | $2,407,568 | $2,466,652 | | Total Shareholders' Deficit | $(635,395) | $(622,686) | [Consolidated Statements of Operations](index=17&type=section&id=Consolidated%20Statements%20of%20Operations) For the third quarter, the company reported a net loss of $5.2 million, a significant improvement from a $49.8 million loss in Q3 FY2023, and for the nine months ended March 31, 2024, net income was $59.6 million, a stark reversal from a net loss of $213.1 million in the prior-year period Statement of Operations Highlights (in thousands) | Metric | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenue | $780,588 | $2,459,245 | | Income (loss) from operations | $39,238 | $181,017 | | Net (loss) income | $(5,181) | $59,642 | [Consolidated Statements of Cash Flows](index=18&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended March 31, 2024, net cash provided by operating activities was $225.6 million, a substantial increase from $68.5 million in the same period last year, with net cash used in financing activities totaling $157.5 million, largely due to $100.7 million in share repurchases Cash Flow Summary (Nine Months Ended Mar 31, in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $225,627 | $68,474 | | Net cash used in investing activities | $(44,709) | $(108,351) | | Net cash used in financing activities | $(157,506) | $(125,766) | [Non-GAAP Financial Measures and Reconciliations](index=19&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines the non-GAAP metrics used by the company, such as constant-currency revenue growth, Adjusted EBITDA, and Adjusted Free Cash Flow, and provides detailed tables reconciling these measures to their most directly comparable GAAP figures, offering further insight into underlying operational performance - Key non-GAAP measures used by management include: - **Constant-currency revenue growth:** To isolate underlying business performance from currency fluctuations - **Adjusted EBITDA:** To show operating performance excluding non-cash charges like D&A, SBC, and other specific items - **Adjusted free cash flow:** To measure cash generated by operations after capital expenditures[121](index=121&type=chunk)[123](index=123&type=chunk) Reconciliation of GAAP Operating Income to Adjusted EBITDA (Q3 FY2024, in millions) | Line Item | Amount | | :--- | :--- | | **GAAP operating income** | **$39.2** | | Depreciation and amortization | $37.1 | | Share-based compensation expense | $18.4 | | Certain impairments and other adjustments | ($0.3) | | Restructuring related charges | $0.1 | | Realized gains (losses) on currency derivatives | ($0.3) | | **Adjusted EBITDA** | **$94.2** | [Company Overview and Forward-Looking Statements](index=27&type=section&id=Company%20Overview%20and%20Forward-Looking%20Statements) [About Cimpress](index=27&type=section&id=About%20Cimpress) Cimpress plc focuses on building and investing in customer-centric, entrepreneurial businesses in the mass-customization print sector, with its competitive strategy aiming to deliver individualized goods and services with nearly the efficiency of mass production, and its portfolio including well-known brands such as Vista, National Pen, and BuildASign - Cimpress's core strategy is **mass customization**, producing goods and services to meet individual customer needs with near mass production efficiency[155](index=155&type=chunk) [Safe Harbor Statement](index=27&type=section&id=Safe%20Harbor%20Statement) This section contains a safe harbor statement, cautioning that the earnings document includes forward-looking statements regarding future expectations, plans, and financial results, and warns that these projections are inherently uncertain and based on management's assumptions, with actual results potentially differing materially due to various factors, including economic conditions, supply chain issues, and market changes - The report contains **forward-looking statements** concerning financial results for FY2024, FY2025, and beyond, as well as plans for investments and capital allocation[157](index=157&type=chunk) - Actual results may **differ materially** from projections due to risks such as flawed assumptions, supply chain constraints, inflation, failure to execute on business transformations, and general economic conditions[158](index=158&type=chunk)

The upcoming report from Cimpress (CMPR) is expected to reveal quarterly earnings of $0.14 per share, indicating an increase of 114.4% compared to the year-ago period. Analysts forecast revenues of $782.65 million, representing an increase of 5.5% year over year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Prior to a com ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, April 22nd:H&E Equipment Services, Inc. (HEES) : This integrated equipment services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.1% over the last 60 days.H&E Equipment has a PEG ratio of 0.81 compared with 0.96 for the industry. The company possesses a Growth Score  of B.Cimpress plc (CMPR) : This mass customizer of printing and ...

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Cimpress (CMPR) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.Cimpress is a member of our Consumer Discretionary group, which includes 286 different companies and currently sits at #15 in the Zacks Sector Rank. The Zac ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium also includes the Zacks Style Scores. ...