Cimpress plc Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Cimpress plc reported $1.44 billion in revenue and $74.2 million in net income for the first half of fiscal year 2024.</b>

AI Summary

CIMPRESS plc (CMPR) filed a Quarterly Report (10-Q) with the SEC on February 1, 2024. Total revenue for the six months ended December 31, 2023, was $1,440.8 million. Net income for the six months ended December 31, 2023, was $74.2 million. Earnings per share (EPS) for the six months ended December 31, 2023, was $1.64. Total assets as of December 31, 2023, were $4,460.4 million. Total debt as of December 31, 2023, was $1,797.1 million.

Why It Matters

For investors and stakeholders tracking CIMPRESS plc, this filing contains several important signals. The filing provides a detailed financial snapshot of Cimpress's performance in the second quarter and first half of fiscal year 2024, crucial for investors assessing profitability and financial health. Key financial metrics like revenue, net income, and debt levels offer insights into the company's operational efficiency and its ability to manage financial obligations.

Risk Assessment

Risk Level: medium — CIMPRESS plc shows moderate risk based on this filing. The company's debt-to-equity ratio of 0.40 indicates a moderate level of financial leverage, which could pose risks if earnings decline.

Analyst Insight

Investors should monitor Cimpress's revenue growth and profitability trends in upcoming quarters to assess its ability to manage its debt and capital structure.

Financial Highlights

debt To Equity

0.40

revenue

1,440,800,000

total Assets

4,460,436,700

total Debt

1,797,124,700

net Income

74,200,000

eps

1.64

Revenue Breakdown

Key Numbers

• 1,440,800,000 — Revenue (6 months ended 12/31/2023) (Total revenue)
• 74,200,000 — Net Income (6 months ended 12/31/2023) (Net income)
• 1.64 — EPS (6 months ended 12/31/2023) (Earnings per share)
• 4,460,436,700 — Total Assets (12/31/2023) (Total assets)
• 1,797,124,700 — Total Debt (12/31/2023) (Total debt)

Key Players & Entities

• CIMPRESS plc (company) — Filer
• 20231231 (date) — Conformed period of report
• 20240201 (date) — Filed as of date
• COMMERCIAL PRINTING (industry) — Standard Industrial Classification
• VISTAPRINT N.V. (company) — Former company name

Forward-Looking Statements

• CIMPRESS plc will continue to report net losses in the near term. (CIMPRESS plc) — medium confidence, target: 2024-06-30

FAQ

Industry Context

Cimpress operates in the commercial printing industry, a sector that has seen significant digital transformation and consolidation.

Regulatory Implications

The filing adheres to SEC regulations for quarterly reporting, providing standardized financial information to the public.

What Investors Should Do

1. Analyze the revenue growth trends for Cimpress over the last several quarters.
2. Compare Cimpress's profitability margins with industry peers.
3. Evaluate the company's debt management strategy in light of its current debt levels.

Key Dates

• 2023-12-31: Period End Date — Reporting period for the 10-Q filing.
• 2024-02-01: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This 10-Q filing covers the period ending December 31, 2023, providing updated financial data compared to previous filings.

Key Financial Figures

• $7,470 — counts receivable, net of allowances of $7,470 and $6,630, respectively 63,222 67,353
• $6,630 — ivable, net of allowances of $7,470 and $6,630, respectively 63,222 67,353 Inventory
• $60 — ordinary shares with a strike price of $60 that have a potentially dilutive impact
• $55,777 — ecember 31, 2023 and June 30, 2023 were $55,777 and $44,522, respectively. Accounting
• $44,522 — 2023 and June 30, 2023 were $55,777 and $44,522, respectively. Accounting Standards t

Filing Documents

• cmpr-20231231.htm (10-Q) — 1747KB
• ex311123123.htm (EX-31.1) — 9KB
• ex312123123.htm (EX-31.2) — 9KB
• ex321123123.htm (EX-32.1) — 7KB
• 0001262976-24-000007.txt (&nbsp;) — 9859KB
• cmpr-20231231.xsd (EX-101.SCH) — 40KB
• cmpr-20231231_cal.xml (EX-101.CAL) — 76KB
• cmpr-20231231_def.xml (EX-101.DEF) — 451KB
• cmpr-20231231_lab.xml (EX-101.LAB) — 812KB
• cmpr-20231231_pre.xml (EX-101.PRE) — 570KB
• cmpr-20231231_htm.xml (XML) — 1863KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 1 Consolidated Balance Sheets as of December 31, 2023 and June 30, 2023 1 Consolidated Statements of Operations for the three and six months ended December 31, 2023 and 2022 2 Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended December 31, 2023 and 2022 3 Consolidated Statements of Shareholders' Deficit for the three and six months ended December 31, 2023 and 2022 4 Consolidated Statements of Cash Flows for the six months ended December 31, 2023 and 2022 6

Notes to Consolidated Financial Statements 8

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Quantitative and Qualitative Disclosures About Market Risk 41

Item 3. Quantitative and Qualitative Disclosures About Market Risk 41

Controls and Procedures 42

Item 4. Controls and Procedures 42

OTHER INFORMATION

PART II OTHER INFORMATION

Risk Factors 43

Item 1A. Risk Factors 43

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43

Other Information

Item 5. Other Information 43

Exhibits 43

Item 6. Exhibits 43 Signatures 44

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CIMPRESS PLC CONSOLIDATED BALANCE SHEETS (unaudited in thousands, except share and per share data) December 31, 2023 June 30, 2023 Assets Current assets: Cash and cash equivalents $ 274,208 $ 130,313 Marketable securities 17,239 38,540 Accounts receivable, net of allowances of $7,470 and $6,630, respectively 63,222 67,353 Inventory 104,635 107,835 Prepaid expenses and other current assets 118,730 96,986 Total current assets 578,034 441,027 Property, plant and equipment, net 276,901 287,574 Operating lease assets, net 69,228 76,776 Software and website development costs, net 97,822 95,315 Deferred tax assets 11,773 12,740 Goodwill 790,967 781,541 Intangible assets, net 90,617 109,196 Marketable securities, non-current — 4,497 Other assets 32,647 46,193 Total assets $ 1,947,989 $ 1,854,859 Liabilities, noncontrolling interests and shareholders' deficit Current liabilities: Accounts payable $ 343,997 $ 285,784 Accrued expenses 265,461 257,109 Deferred revenue 45,113 44,698 Short-term debt 11,083 10,713 Operating lease liabilities, current 20,403 22,559 Other current liabilities 21,649 24,469 Total current liabilities 707,706 645,332 Deferred tax liabilities 44,611 47,351 Long-term debt 1,600,942 1,627,243 Operating lease liabilities, non-current 51,550 56,668 Other liabilities 81,704 90,058 Total liabilities 2,486,513 2,466,652 Commitments and contingencies (Note 12) Redeemable noncontrolling interests (Note 10) 13,392 10,893 Shareholders' deficit: Preferred shares, nominal value 0.01 per share, 100,000,000 shares authorized; none issued and outstanding — — Ordinary shares, nominal value 0.01 per share, 100,000,000 shares authorized; 44,604,367 and 44,315,855 shares issued, respectively; 26,633,120 and 26,344,608 shares outstanding, respectively 621 615 Treasury shares, at cost, 17,971,247 shares for both periods presented ( 1,363,550 ) ( 1,363,550 ) Additional paid-in capital 560,019 539,4

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited in thousands, except share and per share data) 1. Description of the Business Cimpress is a strategically focused collection of businesses that specialize in print mass customization, through which we deliver large volumes of individually small-sized customized orders of printed materials and related products. Our products and services include a broad range of marketing materials, business cards, signage, promotional products, logo apparel, packaging, books and magazines, wall decor, photo merchandise, invitations and announcements, design and digital marketing services, and other categories. Mass customization is a core element of the business model of each Cimpress business and is a competitive strategy which seeks to produce goods and services to meet individual customer needs with near mass production efficiency. 2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Cimpress plc, its wholly owned subsidiaries, entities in which we maintain a controlling financial interest, and those entities in which we have a variable interest and are the primary beneficiary. Intercompany balances and transactions have been eliminated. Investments in entities in which we cannot exercise significant influence, and for which the related equity securities do not have a readily determinable fair value, are included in other assets on the consolidated balance sheets; otherwise the investments are recognized by applying equity method accounting. Our equity method investments are included in other assets on the consolidated balance sheets. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We believe our most signific

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