Cimpress(US:CMPR)2023-10-25 16:00Revenue and Income - Revenue increased by 8% to $757.3 million compared to the same period last year[188] - Operating income rose by $52.1 million to $34.1 million[189] - Total revenue for the Vista segment grew year over year across all product categories, with the fastest growth in promotional products, apparel, and gifts[190] - Vista reported revenue growth of 15% for the three months ended September 30, 2023, with constant-currency revenue growth at 6%[228] - PrintBrothers' reported revenue for the same period was $152,221,000, reflecting a 15% increase year-over-year, with a constant-currency growth of 6%[230] - The Print Group's revenue was $80,539,000, a 5% increase, impacted by an 8% currency effect, with a constant-currency decline of 3%[232] Cash Flow and Operations - Cash from operations increased by $67.5 million year over year, primarily due to increased net income and favorable working capital shifts[192] - Net cash provided by operating activities was $42.3 million, a significant improvement from a net cash used of $25.3 million in the prior year[216] - Adjusted free cash flow for the current quarter was $10.928 million, a recovery from a negative $52.217 million in the same quarter of the previous year[271] - Cash outflows included $22.6 million in capital expenditures primarily for manufacturing and automation equipment[239] EBITDA and Margins - Adjusted EBITDA increased year over year, although partially offset by a $3.5 million unfavorable currency impact[191] - Segment EBITDA for Vista increased by $43.7 million, driven by gross profit growth and cost reduction actions, resulting in a gross margin improvement[229] - PrintBrothers' segment EBITDA grew by 11% to $13,608,000, benefiting from gross margin expansion and operating expense efficiencies[231] - Adjusted EBITDA for the three months ended September 30, 2023, was $88.736 million, compared to $45.595 million for the same period in 2022, representing a significant increase[271] Expenses and Costs - Marketing and selling expenses decreased by $8.7 million, attributed to lower compensation costs and reduced advertising spend[198] - Central and corporate costs decreased by $2.8 million due to lower compensation costs and reduced consulting expenses[238] Debt and Financial Position - At September 30, 2023, the company had $125.2 million in cash and cash equivalents and $1,621.0 million in debt[217] - As of September 30, 2023, the company had $1,087.4 million in variable-rate debt, exposing it to interest rate risk[250] - The company’s $527.1 million 2026 Notes bear interest at a rate of 7.0% per annum, with interest payments made semi-annually[265] Tax and Uncertain Positions - The effective tax rate for the quarter was 64.0%, compared to (60.9)% in the prior year[203] - The company has uncertain tax positions amounting to $9.1 million as of September 30, 2023, which are excluded from contractual obligations due to timing uncertainties[263] Capital Management and Leverage - The company expects to continue reducing net leverage through fiscal year 2024 while maintaining flexibility for capital deployment[219] - The company revised its definition of adjusted free cash flow to include proceeds from the sale of assets, providing a clearer picture of net cash deployed for capital asset purchases[269] Currency Exposure - The most significant net currency exposures by volume are in the Euro and British Pound, with hedging objectives aimed at reducing volatility in forecasted U.S. dollar-equivalent adjusted EBITDA[273] - A hypothetical 100 basis point increase in interest rates would result in an $8.6 million impact to interest expense over the next 12 months[250] Other Financial Metrics - Undistributed earnings from subsidiaries considered indefinitely reinvested amounted to $70.0 million as of September 30, 2023[241] - Proceeds from the sale of assets amounted to $5.6 million, primarily from the sale of the Japanese manufacturing facility[260] - Total outflow from net working capital was $6.6 million, mainly due to unfavorable changes in accounts payable[261] - The aggregate carrying value of leased equipment under finance leases was $28.7 million, with a present value of lease installments not yet due amounting to $37.8 million[266] - The company does not believe there is a material exposure to interest rate fluctuations related to cash and cash equivalents held for working capital purposes[272]