Louisville-based company acquires EZ Print to drive corporate shops expansion
LOUISVILLE, Ky. (Feb. 15, 2013) CafePress Inc. on Tuesday reported financial results for the three- and 12-month period that ended Dec. 31.
Net revenues for fourth quarter 2012 totaled $87.2 million, compared to $69.5 million in the fourth quarter of 2011. Net revenues for fiscal year 2012 totaled $217.8 million, compared to $175.5 million in 2011.
“CafePress ended 2012 with a strong holiday season highlighted by solid performance across all of our brands. We are encouraged by the key indicators of our growth; revenues from social media and mobile channels were up approximately 100 percent and corporate shops grew significantly, over 2011 levels,” said CEO Bob Marino. “During 2013 we plan to introduce additional on-demand customizable products, expand CafePress’ presence across the web via strategic partnerships and continue to make prudent investments in technology and operations to drive long-term revenue and margin growth.”
CafePress Fourth quarter 2012 highlights
♦ Net revenues totaled $87.2 million, compared to $69.5 million in the fourth quarter of 2011. CafePress’ existing brands represented $79.6 million of revenues, while EZ Prints contributed $7.6 million.
♦ Adjusted EBITDA was $9.4 million, compared to $11.5 million in the fourth quarter of 2011.
♦ Gross profit margin was 39.7 percent of net revenues, compared to 43.9 percent in the fourth quarter of 2011.
♦ GAAP net income was $3.1 million (including stock-based compensation, amortization of intangible assets, and acquisition costs), compared to $5.1 million in the fourth quarter of 2011.
♦ GAAP net income per diluted share was $0.18, compared to $0.32 in the fourth quarter of 2011.
♦ Non-GAAP net income (excluding stock-based compensation, amortization of intangible assets and acquisition costs) was $5.4 million, compared to $6.7 million in the fourth quarter of 2011.
♦ Non-GAAP net income per diluted share was $0.31, compared to $0.44 in the fourth quarter of 2011.
♦ Net cash provided by operating activities of $18.4 million, compared to $15.5 million in the fourth quarter of 2011. At December 31, 2012, cash, cash equivalents, and short-term investments totaled $40.6 million.
Fourth quarter 2012 operating metrics (excluding EZ Prints)
♦ Transacting customers totaled 1,245,338, a 9 percent year-over-year increase.
♦ Orders totaled 1,600,952, a 14 percent year-over-year increase.
♦ Average order size was $50, a 2 percent year-over-year increase.
Fiscal year 2012 highlights
♦ Net revenues totaled $217.8 million, compared to $175.5 million in 2011.
♦ Adjusted EBITDA was $17.6 million, compared to $18.7 million in 2011.
♦ Gross profit margin was 41.0 percent of net revenues, compared to 42.9 percent in 2011.
♦ GAAP net loss was $(0.1) million (including stock-based compensation, amortization of intangible assets and acquisition costs), compared to net income of $3.6 million in 2011.
♦ GAAP net loss per diluted share was $(0.01), compared to net income per diluted share of $0.16 in 2011.
♦ Non-GAAP net income (excluding stock-based compensation, amortization of intangible assets and acquisition costs) was $8.0 million, compared to $8.4 million in 2011.
♦ Non-GAAP net income per diluted share was $0.48, compared to $0.56 in 2011.
Fiscal year 2012 operating metrics (excluding EZ Prints)
♦ Transacting customers totaled 3,086,857, a 15 percent year-over-year increase.
♦ Orders totaled 4,159,230, a 17 percent year-over-year increase.
♦ Average order size was $51, a 2 percent year-over-year increase.
Recent CafePress operating highlights
♦ Completed the acquisition of EZ Prints, Inc. to further drive the expansion of corporate shops.
♦ Launched new corporate shops for partners including online retailer Michaels(R), and entertainment brands ESPN, Sprout and VIZ Media.
♦ Expanded the number of products available for on-demand customization by adding more than 200 new base goods during 2012 highlighted by additions to categories including mobile device cases, home, apparel, travel and accessories bringing the total number of on-demand products to more than 550.
♦ Debuted a number of new social media programs including “Likeable Gifts” and a licensed A Christmas Story online store on Facebook.
♦ Launched myinstacard.com, connecting social photo sharing and the creation of personalized stationery products.
Business outlook
“Looking ahead, we expect to drive solid growth in 2013. Our revenue growth outlook of approximately 16 percent at the midpoint of our range is slightly above the average rate of e-commerce growth as we integrate our recent acquisitions with our e-commerce platform,” said CafePress CFO Monica Johnson. “Our Adjusted EBITDA guidance includes consolidation of manufacturing operations into our Louisville plant which will result in an impact of approximately 2 percentage points for the year. We expect this consolidation to lead to margin expansion as we exit 2013.”
First quarter 2013 projections:
♦ Net revenues are expected to be in the range of $44 million to $48 million.
♦ Adjusted EBITDA ranging from a loss of $(1.5) million to income of $0.2 million.
♦ Non-GAAP net loss per diluted share of $(0.15) to $(0.08).
♦ Weighted average fully diluted shares estimated at 17.5 million.
Fiscal year 2013 projections:
♦ Net revenues ranging from $246 million to $259 million, a year-over-year increase of 13 percent to 19 percent.
♦ Adjusted EBITDA of $11 million to $16 million.
♦ Non-GAAP net income per diluted share of $0.07 to $0.22.
♦ Weighted average fully diluted shares of approximately 17.7 million.
♦ Total capital expenditures in the range of $12 million to $14 million.
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