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Cimpress(CMPR) - 2025 Q3 - Quarterly Results
CMPRCimpress(CMPR)2025-04-30 20:07

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 498millioninQ3FY2025,representingayear−over−yeargrowthof14498 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 130millioninQ3FY2025,reflectingagrowthof12130 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 40.5million,whilenetlossroseby40.5 million, while net loss rose by 2.8 million to 8.0million[3]−AdjustedEBITDAdecreasedby8.0 million[3] - Adjusted EBITDA decreased by 3.5 million year over year to 90.7million,impactedbyincreasedoperatingexpenses[3]−TotalsegmentEBITDAforQ3FY2024was90.7 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 91.567million[29]−AdjustedEBITDAforQ3FY2024reached91.567 million[29] - Adjusted EBITDA for Q3 FY2024 reached 94.158 million, reflecting a year-over-year growth of 36% from 69.145millioninQ3FY2023[29]−AdjustedEBITDAmarginimprovedto1269.145 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 263.7millioninQ3FY23toaprojected263.7 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 225.627million,significantlyhigherthan225.627 million, significantly higher than 68.474 million in YTD FY2023[32] - Cash used in investing activities increased to (41.104)millioninQ3FY2025,comparedto(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,adeclinefrom(16.647) million, a decline from (12.833) million in Q3 FY2023[33] - Net cash provided by operating activities for Q3 FY24 was 225.6million,adecreasefrom225.6 million, a decrease from 468.5 million in Q3 FY23[169] - Adjusted free cash flow for Q3 FY24 was 144.2million,comparedto144.2 million, compared to (11.3) million in Q3 FY23[169] - Cash paid for interest in Q3 FY24 was 90.6million,comparedto90.6 million, compared to 70.8 million in Q3 FY23[169] - Cash restructuring payments in Q3 FY24 amounted to 14.9million,significantlyhigherthan14.9 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 1,425millioninQ3FY2025from1,425 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 1,710.2million,projectedtodecreaseto1,710.2 million, projected to decrease to 1,607.7 million by Q4 FY25[175] - Adjusted Net Debt decreased from 1,557.5millioninQ3FY23to1,557.5 million in Q3 FY23 to 1,511.0 million in Q1 FY24, with a further decrease expected to 1,418.0millionbyQ4FY25[175]−ConsolidatedNetLeverageRatioimprovedfrom4.83inQ3FY23toaprojected2.97byQ1FY25,reflectingbetterdebtmanagement[175]−SeniorSecuredNetLeverageRatiodecreasedfrom2.97inQ4FY23toaprojected1.90byQ1FY25,indicatingenhancedfinancialstability[175]GuidanceandFutureOutlook−ThecompanyhaswithdrawnitspriorguidanceforFY2025andbeyondduetouncertaintyinthetariffenvironment[18]−Thecompanyanticipatesarevenuegrowthinconstantcurrencyof41,418.0 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 68.66pershareinthefirstmonthofthequarter[3]−Centralandcorporatecoststotaled68.66 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 34millioninQ3FY2023[108]−Centralandcorporatecosts,excludingunallocatedshare−basedcompensation(SBC),decreasedto34 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)millioninQ3FY23[150]−Share−basedcompensationexpenseincreasedto(109.5) million in Q3FY23[150] - Share-based compensation expense increased to 48.5 million in Q3FY24 from $29.3 million in Q3FY23[159]