VistaPrint Reports 2009 First Fiscal Quarter Financial Results and Updates Full Fiscal Year 2009 Financial Guidance




 -- First quarter results, year over year:
    - Revenue rose 44 percent to $114.2 million
    - Net income per fully diluted share rose 20 percent to $0.18
    - Non-GAAP adjusted net income per fully diluted share rose 36
      percent to $0.30

 -- Updating financial guidance for the full fiscal year ending June
    30, 2009:
    - Revenue expected to be approximately $475 million to $515
      million
    - GAAP fully-diluted earnings per share expected to be
      approximately $0.93 to $1.05
    - Non-GAAP adjusted net income per fully diluted share
      expected to be approximately $1.36 to $1.48

HAMILTON, Bermuda, Oct. 28, 2008 (GLOBE NEWSWIRE) -- VistaPrint Limited (Nasdaq:VPRT), the small business marketing company, today announced financial results for the first quarter of the fiscal year ending June 30, 2009.

"VistaPrint delivered another solid quarter with revenue and earnings in line with our stated guidance despite headwinds that included widespread economic weakness in many of our markets and adverse currency fluctuations," said Robert Keane, president and chief executive officer. "VistaPrint continued to grow strongly and remains on track to achieve our goal of transforming small business marketing thanks to a superior value proposition."



 Financial Metrics:

 * Revenue for the first quarter of fiscal year 2009 grew to $114.2
   million, a 44 percent increase over revenue of $79.5 million
   reported in the same quarter a year ago.
 * Gross margin (revenue minus the cost of revenue) in the first
   quarter was 60.7 percent, compared to 62.6 percent in the same
   quarter a year ago. Gross margins were adversely impacted by a
   number of factors, including shifts in product mix, lower
   referral fees, currencies, and higher shipping costs.
 * Operating income in the first quarter was $9.8 million, or 8.6
   percent of revenue, and reflected a 42 percent increase compared
   to $6.9 million, or 8.7 percent of revenue in the same quarter a
   year ago.
 * GAAP net income for the first quarter was $8.3 million, or 7.2
   percent of revenue, representing a 20 percent increase compared
   to $6.9 million, or 8.7 percent of revenue in the same quarter a
   year ago.
 * GAAP net income per fully diluted share for the first quarter was
   $0.18, versus $0.15 in the same quarter a year ago.
 * Non-GAAP adjusted net income for the first quarter, which
   excludes share-based compensation expense, was $14.0 million, or
   12.2 percent of revenue, representing a 39 percent increase
   compared to $10.0 million, or 12.6 percent of revenue in the same
   quarter a year ago.
 * Non-GAAP adjusted net income per fully diluted share for the
   first quarter, which excludes share-based compensation expense,
   was $0.30, versus $0.22 in the same quarter a year ago.
 * Capital expenditures in the first quarter were $14.2 million or
   12.5 percent of revenue.
 * During the first quarter, the Company generated $28.6 million in
   cash from operations and $12.8 million in free cash flow.
 * The Company had $142.4 million in cash, cash equivalents and
   short-term marketable securities as of September 30, 2008.
 * Following the close of the quarter the Company repurchased
   503,398 shares for $13.9 million, at an average per-share price
   of $27.52, as part of the share repurchase program authorized by
   the Board of Directors.

 Operating Highlights:

 * VistaPrint acquired approximately 1.2 million new customers in
   the first fiscal quarter ending September 30, 2008.
 * Repeat customers generated approximately 66 percent of total
   quarterly bookings in the first quarter, compared with 64 percent
   in the same quarter a year ago.
 * Average daily order volume in the first quarter of fiscal 2009
   exceeded 35,000, reflecting approximately a 35 percent increase
   over an average of more than 26,000 orders per day in the same
   quarter a year ago.
 * Advertising spending in the first quarter was $20.3 million, or
   17.8 percent of revenue, compared to $15.3 million, or 19.3
   percent of revenue in the same quarter a year ago.
 * Non-US markets contributed 38 percent of total revenue in the
   first quarter, up from 34 percent in the same quarter a year ago.
 * Average order value in the first quarter including revenue from
   shipping and processing was $33.79, a 7 percent increase when
   compared to $31.71 in the same quarter a year ago.
 * Web site sessions in the first quarter were 46.7 million, a 5
   percent increase over 44.6 million in the same quarter a year
   ago.
 * Conversion rates were 6.9 percent in the first quarter of fiscal
   2009, compared to 5.4 percent in the same quarter a year ago.
 * VistaPrint broadened its product offering with lawn signs and
   poster calendars

"We met our stated first quarter targets," noted chief financial officer Mike Giannetto. "VistaPrint continued to grow rapidly in the first quarter; however, due to a number of factors, including global economic and currency related challenges and uncertainties, we are reducing our revenue and EPS guidance for the fiscal year ending June 30, 2009."

Financial Guidance as of October 28, 2008:

Based on current and anticipated levels of demand, the Company expects the following financial results:



 Revenue

 * For the second quarter of fiscal year 2009, ending December 31,
   2008, the Company expects revenue of approximately $122 million
   to $134 million.
 * For the full fiscal year ending June 30, 2009, the Company
   expects revenue of approximately $475 million to $515 million.
   This guidance reflects the recent strengthening of the US dollar,
   which lowered expectations by approximately $35 million.

 GAAP Fully-Diluted Earnings Per Share

 * For the second quarter of fiscal year 2009, ending December 31,
   2008, the Company expects GAAP fully-diluted earnings per share
   of approximately $0.26 to $0.31, which assumes 45.8 million
   weighted average shares outstanding.
 * For the full fiscal year ending June 30, 2009, the Company
   expects GAAP fully-diluted earnings per share to be $0.93 to
   $1.05, which assumes 46.1 million weighted average shares
   outstanding

Non-GAAP Adjusted Net Income Per Fully-Diluted Share

The Company is providing the following assumptions to facilitate comparisons with non-GAAP adjusted net income per fully diluted share. For the quarter ending December 31, 2008: non-GAAP fully diluted weighted average share count of approximately 46.8 million shares, share-based compensation expense of approximately $5.2 million. For the full fiscal year ending June 30, 2009: non-GAAP fully diluted weighted average share count of approximately 47.0 million shares, and share-based compensation expense of approximately $21 million.

Based on the above assumptions and the Company's guidance above regarding GAAP earnings, non-GAAP adjusted net income per fully diluted share would be as follows:



 * For the second quarter of fiscal year 2009, ending December 31,
   2008, non-GAAP adjusted net income per fully diluted share range
   of approximately $0.36 to $0.41.
 * For the full fiscal year 2009, ending June 30, 2009, non-GAAP
   adjusted net income per fully diluted share range of
   approximately $1.36 to $1.48. 

 Capital Expenditures

 * For the second quarter of fiscal year 2009, ending December 31,
   2008, the Company expects to make capital expenditures of
   approximately $30 million to $35 million.
 * For the full fiscal year ending June 30, 2009, the Company
   expects to make capital expenditures of approximately $70 million
   to $87 million.

Planned capital investments in fiscal 2009 include two major facility expansions: an expansion of the Company's Montego Bay, Jamaica, service center operations which is expected to be completed in calendar year 2010, and continued work on the expansion of the Company's Windsor, Ontario manufacturing facility, which is expected to be completed in the third quarter of fiscal year 2009.

The foregoing guidance supersedes any guidance previously issued by the Company. All such previous guidance should no longer be relied upon.

At approximately 4:20 p.m. (EDT) on October 28, 2008, VistaPrint will post, on the investor relations section of www.vistaprint.com, a link to a pre-recorded audio visual end-of-quarter presentation along with a downloadable transcript of the prepared remarks that accompany that presentation. At 5:00 p.m. (EDT) there will be a Web cast of a live Q&A session with VistaPrint management. Links to this Q&A session will also be posted on the investor relations section of the Company's Web site. A replay of the Q&A session will be available on the Company's Web site following the call on October 28, 2008.

About non-GAAP financial measures

To supplement VistaPrint's consolidated financial statements presented in accordance with U.S. generally accepted accounting principles, or GAAP, VistaPrint has used the following measures defined as non-GAAP financial measures by the SEC: non-GAAP adjusted net income and non-GAAP adjusted net income per diluted share. The item excluded from the non-GAAP measurements is share-based compensation expense. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Financial Measures" included at the end of this release. The table has more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliation between these financial measures.

Share-based compensation expense

VistaPrint adopted SFAS 123(R), Share-Based Payments, on July 1, 2005 and began expensing the fair value of share option grants issued to employees and directors. Prior to that date, the Company had accounted for share option grants under the provisions of APB No. 25, Accounting for Stock Issued to Employees, and therefore had not recorded any compensation expense related to such grants.

VistaPrint's management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenses that may be indicative of our core business operating results. VistaPrint believes that both management and investors have historically benefited from referring to these non-GAAP financial measures in assessing VistaPrint's performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also have facilitated management's internal comparisons to VistaPrint's historical performance and our competitors' operating results. Management believes that these benefits were particularly important during the period following adoption of SFAS 123(R), as prospective equity grants resulted in incremental share-based compensation expenses not previously reported by VistaPrint prior to adoption of SFAS 123(R), which management believes were not indicative of core business operating results.

VistaPrint previously announced the Company's intention to eliminate the use of non-GAAP financial measures in its financial reporting and guidance beginning with the first quarter of the fiscal year ending June 30, 2009, other than to facilitate non-GAAP comparisons during a transition period, because management believed that the reporting of non-GAAP measures would by that time no longer provide meaningful supplemental information to investors regarding the Company's performance. However, based on subsequent investor feedback, management has concluded that many investors believe they would continue to benefit from referring to these non-GAAP financial measures in assessing VistaPrint's performance and when forecasting and analyzing future periods. Therefore, the Company intends to continue to use non-GAAP financial measures in its financial reporting and guidance in fiscal year 2009 and will reevaluate their use in future periods. Until VistaPrint ceases to include non-GAAP financial measures in its reporting, it expects to compute non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.

Management provides these non-GAAP financial measures as a courtesy to investors. However, to gain a more complete understanding of the Company's financial performance, management does (and investors should) rely upon GAAP financial statements.

About VistaPrint

VistaPrint Limited (Nasdaq:VPRT) is the small business marketing company having served over 16 million customers world-wide. VistaPrint offers small businesses the ability to market their business with a broad range of brand identity and promotional products, marketing services and electronic marketing solutions. A global company, VistaPrint employs more than 1,600 people and operates 19 localized websites serving over 120 countries around the world. A broad range of marketing products and services are available online at www.vistaprint.com. VistaPrint's products are satisfaction guaranteed.

VistaPrint and the VistaPrint logo are registered trademarks of VistaPrint. All other brand and product names appearing on this announcement may be trademarks or registered trademarks of their respective holders.

This press release contains statements about management's future expectations, plans and prospects of our business that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning the expected growth and development of our business including the financial guidance set forth under the headings "Updating financial guidance for the full fiscal year ending June 30, 2009," and "Financial Guidance as of October 28, 2008," our operating performance, our margins, our market position, our reinvestment program, and our ability to successfully attract and retain customers. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, our ability to attract customers and to retain customers and to do so in a cost-effective manner, willingness of purchasers of graphic design services and printed products to shop online, failure of our investments, unexpected increases in our use of funds, failure to increase our revenue and keep our expenses consistent with revenue, failures of our web sites or network infrastructure, failure to maintain the prices we charge for our products and services, the inability of our manufacturing operations to meet customer demand, exchange rate fluctuations, downturns in general economic conditions, and other factors that are discussed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2008, and other documents we periodically file with the SEC.

In addition, the statements in this press release represent our expectations and beliefs as of the date of this press release. We anticipate that subsequent events and developments may cause these expectations and beliefs to change. We specifically disclaim any obligation to update any forward-looking statements. These forward-looking statements should not be relied upon as representing our expectations or beliefs as of any date subsequent to the date of this press release.



                          VistaPrint Limited

                     Consolidated Balance Sheets
                     
                                               Sept. 30,    June 30,
                                                 2008         2008 
                                             -----------  -----------
                                                    (Unaudited)
                                               (In thousands, except 
                                                   share and per 
                                                     share data)
 Assets
 Current assets:
   Cash and cash equivalents                 $   127,346  $   103,145
   Marketable securities                          15,033       26,598
   Accounts receivable, net of allowances of
    $192 and $213 at September 30, 2008 and
    June 30, 2008, respectively                    7,273        6,105
   Inventory                                       2,800        2,548
   Prepaid expenses and other current assets       6,545        5,678
                                             -----------  -----------
 Total current assets                            158,997      144,074
 Property, plant and equipment, net              163,176      154,520
 Software and web site development costs, net      5,661        5,380
 Deferred tax assets                               2,956        2,956
 Other assets                                      9,679        9,022
                                             -----------  -----------

 Total assets                                $   340,469  $   315,952
                                             ===========  ===========
 Liabilities and shareholders' equity
 Current liabilities:
   Accounts payable                          $    18,390  $     8,486
   Accrued expenses                               38,871       35,655
   Deferred revenue                                1,992        1,893
   Current portion of long-term debt               3,239        3,304
                                             -----------  -----------
 Total current liabilities                        62,492       49,338
 Deferred tax liabilities                          2,591        2,656
 Other liabilities                                 3,399        1,946
 Long-term debt                                   18,102       19,507
 Shareholders' equity:
   Common shares, par value $0.001 per share,
    500,000,000 shares authorized; 44,546,225
    and 44,279,248 shares issued and
    outstanding at September 30, 2008 and
    June 30, 2008, respectively                       45           44
   Additional paid-in capital                    199,151      191,271
   Retained earnings                              51,371       43,098
   Accumulated other comprehensive income          3,318        8,092
                                             -----------  -----------

 Total shareholders' equity                      253,885      242,505
                                             -----------  -----------

 Total liabilities and shareholders' equity  $   340,469  $   315,952
                                             ===========  ===========


                         VistaPrint Limited
    
                Consolidated Statements of Operations
    
                                                Three Months Ended   
                                                  September 30,
                                             ------------------------ 
                                                2008          2007    
                                             -----------  -----------
                                                   (Unaudited)
                                              (in thousands, except
                                                  share and per
                                                   share data)

 Revenue                                     $   114,232  $    79,453

 Cost of revenue (1)                              44,844       29,752
 Technology and development expense (1)           13,808        9,108
 Marketing and selling expense (1)                34,801       26,316
 General and administrative expense (1)           10,948        7,370
                                             -----------  -----------

 Income from operations                            9,831        6,907
 Interest income                                     728        1,174
 Other expense, net                                  941            2
 Interest expense                                    380          435
                                             -----------  -----------

 Income before income taxes                        9,238        7,644
 Income tax provision                                965          765
                                             -----------  -----------

 Net income                                  $     8,273  $     6,879
                                             ===========  ===========

 Basic net income per share                  $      0.19  $      0.16
                                             ===========  ===========

 Diluted net income per share                $      0.18  $      0.15
                                             ===========  ===========
 Weighted average common shares
  outstanding - basic                         44,379,680   43,544,204
                                             ===========  ===========
 Weighted average common shares
  outstanding - diluted                       46,014,442   45,799,174
                                             ===========  ===========

 (1) Share-based compensation is allocated as follows:


                                               Three Months Ended
                                                   September 30,
                                             ------------------------
                                                2008          2007 
                                             -----------  -----------
                                                   (Unaudited)
                                                  (in thousands)

 Cost of revenue                             $       196  $       135
 Technology and development expense                1,264          805
 Marketing and selling expense                     1,037          816
 General and administrative expense                2,991        1,285
                                             -----------  -----------
                                             $     5,488  $     3,041
                                             ===========  ===========


                          VistaPrint Limited

            Reconciliations of Non-GAAP Financial Measures

                                                Three Months Ended   
                                                   September 30,
                                             ----------------------
                                                2008        2007
                                             ----------  ----------
                                                   (Unaudited)
                                              (in thousands, except 
                                                 per share data)

 Non-GAAP adjusted net income reconciliation:           
 Net income                                  $    8,273  $    6,879
 Add back:     
   Share-based compensation expense, 
    inclusive of income tax effects               5,682(a)    3,154(b)
                                                           
                                             ----------  ----------
 Non-GAAP adjusted net income                $   13,955  $   10,033
                                             ==========  ==========
 Non-GAAP adjusted net income per diluted 
  share reconciliation:       
 Net income per diluted share                $     0.18  $     0.15
 Add back:       
   Share-based compensation expense, 
    inclusive of income tax effects                0.12        0.07
                                             ----------  ----------
 Non-GAAP adjusted net income per 
  diluted share                              $     0.30  $     0.22
                                             ==========  ==========
  
 (a) Includes share-based compensation charges of $5,488 and the
     income tax effects related to those charges of $194
  
 (b) Includes share-based compensation charges of $3,041 and the
     income tax effects related to those charges of $113


                          VistaPrint Limited

                 Consolidated Statements of Cash Flows


                                                 Three Months Ended
                                                    September 30,
                                               ----------------------
                                                 2008         2007
                                               ---------    ---------
                                                     (Unaudited)
                                                   (in thousands)
 Operating activities                    
 Net income                                    $   8,273    $   6,879
 Adjustments to reconcile net income to
  net cash provided by operating activities:
     Depreciation and amortization                 8,058        5,083
     Share-based compensation expense              5,488        3,041
     Changes in operating assets and
      liabilities:
       Accounts receivable                        (1,282)        (446)
       Inventory                                    (359)        (468)
       Prepaid expenses and other assets            (803)        (629)
       Accounts payable                            4,338       (1,927)
       Accrued expenses and other liabilities      4,882        2,480
                                               ---------    ---------
 Net cash provided by operating activities        28,595       14,013

 Investing activities
 Purchases of property, plant and equipment      (14,249)     (16,621)
 Purchases of marketable securities               (1,110)     (20,267)
 Sales and maturities of marketable securities    11,777       20,690
 Capitalization of software and website
  development costs                               (1,573)      (1,031)
                                               ---------    ---------
 Net cash used in investing activities            (5,155)     (17,229)

 Financing activities
 Repayment of long-term debt                        (826)        (803)
 Payment of withholding taxes in connection
  with settlement of RSUs                           (620)        (788)
 Proceeds from issuance of common shares           2,933        1,549
                                               ---------    ---------
 Net cash provided by (used in)
  financing activities                             1,487          (42)

 Effect of exchange rate changes on cash            (726)         283
                                               ---------    ---------
 Net increase (decrease) in cash and
  cash equivalents                                24,201       (2,975)

 Cash and cash equivalents at beginning
  of period                                      103,145       69,464
                                               ---------    ---------

 Cash and cash equivalents at end of period    $ 127,346    $  66,489
                                               =========    =========



 Free cash flow reconciliation:
   Net cash provided by operating activities   $  28,595    $  14,013
   Purchases of property, plant and
    equipment, net                               (14,249)     (16,621)
   Capitalization of software and website
    development costs                             (1,573)      (1,031)
                                               ---------    ---------
   Total free cash flow                        $  12,773    $  (3,639)
                                               =========    =========


            

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