Cimpress(US:CMPR)2024-08-03 17:52Financial Data and Key Metrics Changes - In Q4 FY 2024, consolidated revenue grew 6% on both a reported basis and organic constant currency basis [3] - For the full year, revenue grew 7% on a reported basis and over 5% on an organic constant currency basis [3] - Adjusted EBITDA increased by $5 million year-over-year in Q4 to $119 million, despite currency headwinds of over $3 million [3][4] - Full year adjusted EBITDA grew $129 million year-over-year to $469 million, representing a 38% increase [4] - Adjusted EBITDA margins improved by over 300 basis points to 14.2% in FY 2024 [4] Business Segment Data and Key Metrics Changes - Every segment accelerated revenue growth sequentially in Q4, except for National Pen, which reduced advertising spend impacting revenue growth but improved profitability [4] - Vista experienced growth in per customer value and had its sixth consecutive quarter of growth in the number of customers served [5] Market Data and Key Metrics Changes - The company noted a shift towards direct-to-customer e-commerce models, impacting reseller dynamics in the Print Group [12][13] - Revenue growth in Upload and Print has been primarily driven by volume, with a muted growth in businesses serving resellers [14] Company Strategy and Development Direction - The company plans to increase capital expenditures to enhance manufacturing and supply chain advantages, focusing on operational execution [16][18] - Investments will target production efficiency, new product introductions, and quality improvements [18][19] - The multiyear outlook remains positive, with expectations for mid-single-digit organic constant currency revenue growth and adjusted EBITDA growth slightly faster than revenue [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial strength and operational capabilities, attributing it to significant investments made over the past six years [31] - The company is focused on leveraging scale-based advantages and improving customer value [31] Other Important Information - Adjusted free cash flow was $117 million for Q4 and $261 million for the full year, marking the highest cash flow results for both periods [5][6] - The company repurchased 1.7 million shares for $157 million in FY 2024, reducing shares outstanding by 7% [6] Q&A Session Summary Question: Can you provide an apples-to-apples breakdown of run rate EBITDA growth for Q4 FY '24 versus Q4 FY '23? - Management highlighted that currency negatively impacted EBITDA by over $3 million and noted onetime benefits from the previous year that did not repeat [9][10] Question: Can you talk about the reseller challenges in Print Group? - Management clarified that they do not see competitors "eating their lunch" and emphasized the shift towards direct-to-customer models [12][13] Question: What makes now the time to accelerate capital expenditures? - Management indicated that the focus on operational execution and the financial strength achieved over the past years justify the increase in capital expenditures [16][18] Question: Any new thinking about refinancing the 2026 bonds? - Management stated there are no new developments but confirmed they are regularly considering refinancing options [20] Question: What are the plans for the small EUR 46 million TLB tranche? - Management confirmed the plan is to hold the tranche until maturity unless circumstances change [21] Question: How do we increase the likelihood that organic investments in Vista are attractive? - Management discussed improvements in data analytics, organizational changes, and regular progress reviews to enhance investment outcomes [22][24][27]