In a Nutshell
*Total annual revenue for fiscal 2018 rose 21%, while Q4 revenue was up 12%, Cimpress said.
*The company recorded profits for the fourth quarter and full year.
Top 40 distributor Cimpress (asi/162149), parent company of Vistaprint and National Pen, reported late Wednesday that it increased revenue by 21% to $2.59 billion in its fiscal year 2018. Total income from operations – essentially profit after expenses like restructuring-related charges and acquisition-related amortization and depreciation – was reportedly up too, jumping to $157.8 million from a loss of $45.7 million the prior year. The Netherlands-headquartered firm also said that net income per diluted share for fiscal 2018 was $1.36, compared to a net loss of $2.29 in 2017.
Revenue rises in key business segments, including Vistaprint and National Pen, contributed to the 2018 performance. Restructuring initiatives that streamlined operations and cut costs helped, too. “The collective changes…led to the removal of about $75 million of annualized cash costs from our business,” said Founder/CEO Robert S. Keane.
Cimpress also reported year-over-year increases in fourth quarter revenue and total income from operations. The company said that Q4 revenue was $631.1 million, up 12% from the same quarter the prior year. Total income from operations tallied $21.85 million, a leap up from a $9.65 million loss in 2017.
Despite the positivity on Q4 profit, Cimpress reported a loss of $0.24 per diluted share in the quarter, though that was better than the $1.11 per share loss in the previous year’s comparable period.
Earnings per share were impacted in part by “a $17.4 million loss for the early extinguishment of our original senior notes, which we redeemed in June 2018,” Cimpress said.
According to Cimpress, Vistaprint’s full-year sales accelerated from $1.31 billion in 2017 to $1.46 billion in 2018. Q4 revenue was up 11% year-over-year to $357.1 million. “Vistaprint's Q4 revenue growth accelerated compared to Q3 FY2018 and Q4 FY2017, due partly to the timing of the Easter holiday,” Cimpress noted.
Meanwhile, National Pen’s full-year sales were up 195%, soaring from $112.7 million to $333.26 million. “Revenue growth was strong across channels and geographies in Q4 FY2018 and FY2018 due to great execution, benefits from actions taken last year to improve marketing performance, increased marketing and prospecting investment, and increased inter-company sales to other Cimpress businesses,” Cimpress said of National Pen in its earnings report. “We've also gained operational cost reductions by leveraging Cimpress’s global shipping contracts, as well as several other operational savings.”
Cimpress acquired National Pen in December 2016. Before being grouped under the Cimpress umbrella, National Pen was a Top 40 distributor in its own right, ranking 10th on Counselor’s 2016 list of the promo industry’s largest distributors as determined by North American promotional product revenue.