Cimpress(US:CMPR)2021-04-28 16:00Revenue Performance - Consolidated revenue decreased by 3% year-over-year to $578.9 million for the third quarter of fiscal 2021[162]. - Organic constant-currency revenue decreased by 10% for the third quarter, excluding the impact of currency fluctuations and acquisitions[163]. - Total revenue for the nine months ended March 31, 2021, decreased by 5% to $1,951.5 million[163]. - Revenue from Vistaprint bookings in Australia grew approximately 10% for the third quarter, while bookings in European countries declined by approximately 7%[159]. - Vistaprint's reported revenue for the three months ended March 31, 2021, was $93.997 million, a decline of 14% year-over-year, while for the nine months, revenue was $315.915 million, down 9%[202]. - PrintBrothers experienced a constant-currency revenue decline of 21% for the three months and 17% for the nine months ended March 31, 2021, primarily due to pandemic-related decreases in demand[203]. - The Print Group's revenue declined by 20% and 17% on a constant-currency basis for the three and nine months ended March 31, 2021, respectively, also driven by pandemic-related demand decreases[207]. - National Pen's revenue decreased by 12% and 11% on a constant-currency basis for the three and nine months ended March 31, 2021, impacted by cancelled trade shows and large-scale events[210]. - All Other Businesses reported a revenue increase of 15% for the three months and 12% for the nine months ended March 31, 2021, driven by growth at BuildASign[215]. Financial Performance - Operating loss improved by $72.0 million to $15.7 million, primarily due to the nonrecurrence of a goodwill impairment charge from the prior year[165]. - Adjusted EBITDA decreased by $15.9 million to $55.0 million for the third quarter[163]. - Adjusted EBITDA for the nine months ended March 31, 2021, was $286.9 million, compared to $335.9 million for the same period in 2020[243]. - Net cash provided by operating activities for the nine months ended March 31, 2021, was $218.9 million, down from $284.1 million in the prior year[244]. - Adjusted free cash flow for the nine months ended March 31, 2021, was $150.9 million, compared to $209.6 million for the same period in 2020[244]. Expenses - Cost of revenue for the third quarter was $302.0 million, representing 52.2% of revenue[172]. - Technology and development expenses decreased by $5.1 million (8%) for the three months ended March 31, 2021, compared to the prior year, and decreased by $9.2 million (5%) for the nine months ended March 31, 2021[173][177]. - Marketing and selling expenses increased by $5.7 million (4%) for the three months ended March 31, 2021, primarily due to fluctuations in currency exchange rates, while decreased by $8.1 million (2%) for the nine months ended March 31, 2021[179][180]. - General and administrative expenses increased by $17.2 million (38%) for the three months ended March 31, 2021, and by $6.5 million (5%) for the nine months ended March 31, 2021, mainly due to lease impairment and abandonment charges of $19.9 million[181]. - Amortization of acquired intangible assets increased by $0.8 million (6%) for the three months ended March 31, 2021, and by $1.4 million (4%) for the nine months ended March 31, 2021, driven by currency exchange rate fluctuations[183]. Tax and Interest - Income tax expense for the three months ended March 31, 2021 was $3,927 thousand, compared to $1,039 thousand for the same period in 2020, reflecting a higher effective tax rate[194]. - Interest expense, net increased by $11.7 million for the three months ended March 31, 2021, primarily due to the issuance of additional senior unsecured notes[192]. Other Financial Metrics - Total other income (expense), net decreased to $9,785 thousand for the three months ended March 31, 2021, from $22,537 thousand in the prior year, mainly due to currency exchange rate volatility[189]. - Central and corporate costs decreased by $4.2 million and $14.3 million during the three and nine months ended March 31, 2021, respectively, due to lower professional fees and discretionary spending[218]. - As of March 31, 2021, the company had total loan commitments of $992.5 million, with outstanding borrowings of $471.5 million, leaving a remaining amount of $521.0 million available for borrowing[224]. - The amount available for borrowing, after considering debt covenants and other obligations, was $267.8 million as of March 31, 2021[224]. - The company's total contractual obligations amounted to $2,258.6 million, with $314.9 million due within one year and $642.7 million due in more than five years[228]. - The company had unrecorded purchase commitments of $211.3 million, including $96.7 million for third-party web services and $54.5 million for software[230]. Debt and Risk Management - The company had $12.6 million outstanding for other debt, with repayments due through January 2026[227]. - Senior unsecured notes due 2026 bear interest at 7.0% per annum, while second lien notes due 2025 bear interest at 12.0% per annum[231][232]. - The company has finance leases with an aggregate carrying value of $59.9 million as of March 31, 2021[236]. - As of March 31, 2021, the company had $471.5 million of variable-rate debt, exposing it to market risk from interest rate changes[247]. - A hypothetical 100 basis point increase in interest rates would result in an immaterial impact on interest expense over the next 12 months[247]. - The company manages currency exchange rate risk through normal operating activities and derivative financial instruments, aiming to reduce volatility in forecasted U.S. dollar-equivalent adjusted EBITDA[248][249]. - The most significant net currency exposures by volume are in the Euro and British Pound[249]. - A hypothetical 10% decrease in exchange rates against the functional currency would have resulted in an increase of $3.3 million and $14.5 million on income before income taxes for the three months ended March 31, 2021, and 2020, respectively[255].