) declared first quarter 2013 adjusted earnings (including
stock-based compensation expense of 24 cents per share) of a
penny per share, beating the Zacks Consensus Estimate of a loss
of 2 cents per share.
However, adjusted earnings fell from the year-ago level of 19
cents per share. On a GAAP basis, earnings per share (including
stock based compensation expense) were a loss of 5 cents per
share versus a gain of 19 cents per share in the comparable
quarter of last year.
In the first quarter, the company registered an 18.0%
year-over-year growth in revenues to $251.4 million, including
the $18.0 million contribution from Albumprinter & Webs.
Revenues lagged the Zacks Consensus Estimate of $255.0 million.
Excluding the impact of currency fluctuations and revenues from
acquired businesses, total revenue grew 13% year over year in the
Geographically, Vistaprint derived 57% of consolidated revenues
from the North America, 36% from Europe and 7% from the
Behind the Headline Numbers
In the first quarter, gross margin grew 180 basis points (bps)
from the year-ago quarter to 65.0%. Operating income came in at
$0.2 million, reflecting a downside of 98% from the prior-year
quarter. Operating margin plunged 450 bps from the prior-year
quarter to 0.1%. Total order volume (organic) increased roughly
6.5% year over year in the first quarter.
The company exited the quarter with $59.3 million in cash, cash
equivalents. Long-term debt stood at $259.3 million at the end of
Total assets of the company were $620.5 million, while total
liabilities amounted to $421.3 million.
During the quarter under review, the company did not buyback any
For full-year 2013, the company expects adjusted earnings per
share guidance (excluding stock-based compensation expense of 97
cents) in the range of $1.62-$1.92 per share. On GAAP basis,
earnings per share are expected in the range of 40-70 cents.
Revenue is expected in the range of $1,165.0-$1,215.0 million
(previous range was $1,175.0-$1,225.0 million). Sluggish business
environment in Europe led the company to lower its revenue
For the second quarter of 2013, revenues are expected in the
range of $335-$355 million.
Vistaprint's solid long-term prospects along with the focus on
inorganic growth and international expansion make us optimistic
on the stock. The company's Asian and North American operations
are delivering strongly.
However, 2013 could prove to be a challenging year for Vistaprint
as there are a few planned investments which will weigh on its
bottom line. Moreover, lackluster business environment in Europe
remains a concern given Vistaprint's huge exposure to the
Vistaprint, which competes with
Sykes Enterprises Inc.
TeleTech Holdings Inc.
), currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. We are maintaining our long-term Neutral
recommendation on the stock.
SYKES ENTRP INC (SYKE): Free Stock Analysis
TELETECH HLDGS (TTEC): Free Stock Analysis
VISTAPRINT NV (VPRT): Free Stock Analysis
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