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Vistaprint N.V (VPRT - Analyst Report) reported a net income of $2.3 million or 7 cents per share in fourth quarter fiscal 2013 (ending Jun 30, 2013) compared with $3.9 million or 10 cents in the year-earlier quarter. The quarterly earnings were in line with the Zacks Consensus Estimate.

For fiscal 2013, Vistaprint reported a net income of $29.4 million or 85 cents per share compared with $44.0 million or $1.13 in the year-earlier quarter. The fiscal earnings beat the Zacks Consensus Estimate of 63 cents. Strategic investments, acquisitions, minority investment in China and higher share-based compensation expense dragged the earnings lower.

Excluding one-time items, adjusted earnings were $14.1 million or 41 cents per share in the reported quarter compared with $14.9 million or 40 cents in the year-ago quarter.

For fiscal 2013, adjusted earnings were $75.8 million or $2.15 per share compared with $77.0 million or $1.95 a share in the year-ago quarter.
 
Total revenue in fourth quarter fiscal 2013 increased 12% year over year to $280.1 million. The reported revenues beat the Zacks Consensus Estimate of $272 million.

For fiscal 2013, revenues increased to $1,167.5 million, up 14.0% year over year. Full year revenues also beat the Zacks Consensus Estimate of $1,156 million.

Geographically, fiscal revenues were up 18% year over year in North America, followed by Europe (up 3%) and Asia Pacific (up 4%).

In the reported quarter, gross margin was flat year over year at 64.6%. Operating income increased to $3.1 million from $5.1 million in the year-ago period.

Balance Sheet & Cash Flow

The company exited the quarter with $50.1 million in cash and cash equivalents versus $62.2 million in the year-ago period. Long-term debt stood at $238.8 million with $228.6 million available under its credit facility. Vistaprint purchased 613,000 shares for $23.4 million in the quarter under its existing share repurchase program.

The company generated $37 million in cash from operations and $21.8 million in free cash flow with capital expenditure of $12.5 million.

Outlook

For fiscal 2014, the company expects revenues in the range of $1,235 million to $1,285 million. Fiscal 2014 GAAP earnings is expected in the range of $1.35 –$1.70 per share. Adjusted earnings for full fiscal are expected in the range of $2.49–$2.83 per share with capital expenditures of $85 million to $100 million.

Vistaprint remains focused on leveraging its investments and expect meaningful earnings growth and expansion in fiscal year 2014 with a ramp-up in profitability of its organic business.

Vistaprint currently has a Zacks Rank #3 (Hold). Other stocks that look promising in the industry and are worth a look include Barrett Business Services Inc. (BBSI - Snapshot Report), Cap Gemini S.A. and Portfolio Recovery Associates Inc (PRAA - Analyst Report), each carrying a Zacks Rank #1 (Strong Buy).

 

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