Cimpress(US:CMPR)2024-10-31 21:14Revenue Performance - Revenue for the three months ended September 30, 2024, increased by 6% to $805.0 million compared to $757.3 million in the prior year[126]. - Organic constant-currency revenue growth was also 6% for the same period[126]. - Vista's reported revenue for the three months ended September 30, 2024, was $429.5 million, reflecting an 8% increase compared to $396.9 million in the prior year[159][160]. - PrintBrothers reported revenue growth of 5% for the three months ended September 30, 2024, with revenue reaching $160.4 million[163]. - The Print Group's revenue increased by 6% to $84.1 million for the three months ended September 30, 2024, benefiting from a 2% positive currency impact[166]. - National Pen's reported revenue grew by 8% to $93.4 million, with a constant-currency growth of 7% for the three months ended September 30, 2024[168]. - All Other Businesses reported revenue of $57.1 million, an 11% increase, with constant-currency growth of 13% despite a 2% negative impact from currency[170]. Operating Income and Expenses - Operating income rose by $5.2 million to $39.3 million, driven by a $23.7 million increase in gross profit[126][129]. - Adjusted EBITDA decreased by $1.0 million to $87.8 million, with negative currency impacts of $0.9 million[126][130]. - Cost of revenue increased by $24.0 million year over year, representing 52.5% of total revenue[138]. - Technology and development expenses increased by $7.5 million, driven by higher third-party technology costs and increased business volumes[140][142]. - Marketing and selling expenses increased by $11.7 million for the three months ended September 30, 2024, driven by higher advertising spend of $6.3 million and cash compensation costs rising by $4.4 million[144]. - General and administrative expenses rose by $3.6 million during the same period, primarily due to $2.7 million in higher share-based compensation and $0.6 million in increased cash compensation costs[146][147]. - Segment EBITDA increased by $0.7 million for the three months ended September 30, 2024, driven by revenue growth, despite a $1.1 million increase in long-term incentive compensation expense[172]. Cash Flow and Financial Position - Cash provided by operating activities decreased by $37.9 million to $4.4 million, primarily due to unfavorable changes in working capital[127][132]. - Adjusted free cash flow decreased by $36.5 million to a use of cash of $25.6 million[127][133]. - Net cash provided by operating activities was $4.4 million for the three months ended September 30, 2024, a decrease from $42.3 million in the same period last year[176]. - Net cash used in investing activities was $(25.5) million, compared to $(10.8) million in the prior year[176]. - Total cash and cash equivalents as of September 30, 2024, were $153.0 million, with total debt amounting to $1,617.5 million[178]. - The company repurchased 123,325 ordinary shares for $10.6 million during the three months ended September 30, 2024[179]. - Contractual obligations totaled $2,574.1 million as of September 30, 2024, with $334.5 million due within one year[182]. - Purchase commitments amounted to $231.8 million, including $94.6 million for third-party fulfillment and digital services[185]. - The company completed a private placement of $525.0 million in senior unsecured notes due 2032, with an interest rate of 7.375% per annum[188]. - As of September 30, 2024, the company was in compliance with all covenants under its Restated Credit Agreement and the indenture governing its 2032 Notes[189]. Loss and Financial Risks - Diluted net loss per share attributable to Cimpress plc was $(0.50), a decrease from income of $0.17 in the prior year[127][131]. - A hypothetical 100 basis point increase in interest rates would result in an $8.6 million increase in interest expense over the next 12 months[204]. - A hypothetical 10% decrease in currency exchange rates against the functional currency would have resulted in a $11.2 million impact on the company's loss before income taxes for Q3 2024[210]. - The company manages currency risks through normal operating activities and derivative financial instruments, aiming to reduce volatility in forecasted U.S. dollar-equivalent adjusted EBITDA[205]. - The most significant net currency exposures are in the Euro and British Pound, which could impact financial results when translated to U.S. dollars[206]. - The company executes currency derivatives contracts that do not qualify for hedge accounting, potentially leading to volatility in consolidated statements of operations[207].