Cimpress(US:CMPR) ZACKSยท2025-01-31 17:51Core Viewpoint - Cimpress plc (CMPR) reported second-quarter fiscal 2025 adjusted earnings of $2.36 per share, missing the Zacks Consensus Estimate of $2.40, but showing an increase from $2.14 per share in the same quarter last year [1] Financial Performance - Total revenues for the quarter were $939.2 million, a 1.9% increase from $921.4 million in the year-ago quarter, but below the Zacks Consensus Estimate of $964 million [2] - Organic constant-currency revenue growth was 2% year over year, driven by growth across all business segments [2] Segmental Information - The National Pen segment generated revenues of $131.4 million, up from $130.1 million in the year-ago quarter, but below the estimate of $133.6 million [3] - Vista, the largest revenue-generating segment, reported revenues of $497.7 million compared to $485.4 million in the year-ago quarter, missing the estimate of $517.9 million [3] - The Upload and Print segment's revenues increased to $273.1 million from $257.7 million in the year-ago quarter, slightly below the estimate of $175.7 million for PrintBrothers and $93.8 million for The Print Group [4] - Revenues from All Other Businesses were $60.3 million compared to $59.8 million reported a year ago, missing the estimate of $61.7 million [5] Margin and Cost Analysis - Cost of revenues was $489.3 million, up 5.6% year over year, while marketing and selling expenses totaled $223.9 million, up 5.7% year over year [6] - Gross profit decreased 1.7% year over year to $450 million, with a margin of 48%, down 200 basis points year over year [7] - Adjusted EBITDA fell 20.7% year over year to $132.3 million [7] Balance Sheet and Cash Flow - As of December 31, 2024, Cimpress had $224.4 million in cash and cash equivalents, up from $203.8 million at the end of the previous quarter [8] - Long-term debt was $1.58 billion, slightly down from the previous quarter [8] - Net cash provided by operating activities was $176.5 million compared to $175 million in the year-ago quarter, with share repurchases worth $42.4 million during the quarter [9] Outlook - For fiscal 2025, Cimpress expects revenues to increase at least 3% on a reported basis and 4% on an organic constant-currency basis [10] - Operating income is expected to be at least $233.9 million, indicating about a 5% decrease year over year [10] - Adjusted EBITDA is projected to be at least $440 million, with anticipated cash from operating activities of a minimum of $289 million and free cash flow (adjusted) of at least $157 million [11] - The company aims to reduce net leverage, hoping to exit fiscal 2025 with a net leverage of 3.0x trailing-12-month EBITDA [11]