Cimpress(US:CMPR)2025-01-31 18:46Revenue 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].