Cimpress(US:CMPR)2025-05-01 21:35Revenue 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]