VistaPrint Ltd. (VPRT, Financial) filed Quarterly Report for the period ended 2011-03-31.
Vistaprint N.v. has a market cap of $2.32 billion; its shares were traded at around $54.3 with a P/E ratio of 34 and P/S ratio of 3.5. Vistaprint N.v. had an annual average earning growth of 41.6% over the past 5 years.
On November 4, 2010, our Supervisory Board authorized the repurchase of up to $160 million of our outstanding ordinary shares in open market or privately negotiated transactions. The terms of the repurchase program are described further in Item 2 of Part II of this Report. During the three and nine months ended March 31, 2011, we repurchased our ordinary shares for a total cost of $1.5 million and $56.9 million, respectively, which we funded using our cash balances.
The increase in our technology and development expenses of $3.2 million and $10.5 million for the three and nine months ended March 31, 2011, respectively, as compared to the same periods in fiscal 2010 was primarily due to increased payroll and facility-related costs of $2.4 million and $6.2 million, respectively, associated with increased headcount in our technology development and information technology support organizations. At March 31, 2011, we employed 413 employees in these organizations compared to 356 employees at March 31, 2010. In addition, during the three and nine months ended March 31, 2011, we continued to invest in our website infrastructure, which resulted in increased depreciation, hosting services expense and other website related expenses of $0.5 million and $4.0 million, respectively, as compared to the same periods in fiscal 2010. The increase in other website related expenses during the nine months ended March 31, 2011 includes the impact of a legal settlement of a patent claim, offset by expenses in the prior year related to the abandonment of certain acquired intangible assets recorded in conjunction with the Soft Sight acquisition.
The increase in our marketing and selling expenses of $12.1 million for the three months ended March 31, 2011 as compared to the same period in fiscal 2010 was driven primarily by increases of $10.2 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base, and increases in payroll and facility-related costs of $2.6 million. The increase in our marketing and selling expenses of $39.5 million for the nine months ended March 31, 2011 as compared to the same period in fiscal 2010 was driven primarily by increases of $30.0 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base, and increases in payroll and facility-related costs of $8.8 million. We continued to expand our marketing organization and our customer service, sales and design support centers and at March 31, 2011, we employed 967 employees in these organizations compared to 835 employees at March 31, 2010. In addition, payment processing fees paid to third parties increased by $0.7 million and $2.4 million during the three and nine months ended March 31, 2011, respectively, as compared to the same periods in fiscal 2010 due primarily to increased order volumes. These increases were partially offset by a non-recurring charge of $1.5 million related to indirect taxes that is included in the three and nine month periods ended March 31, 2010.
The increase in our general and administrative expenses of $3.6 million and $7.4 million for the three and nine months ended March 31, 2011, respectively, as compared to the same periods in fiscal 2010 was primarily due to increased payroll and facility-related costs of $3.3 million and $9.3 million, respectively, resulting from the continued investment in our executive management, finance, legal and human resource organizations to support our expansion and growth. At March 31, 2011, we employed 232 employees in these organizations compared to 185 employees at March 31, 2010. The increase for the nine months ended March 31, 2011 was offset by decreased third-party professional fees of $2.5 million as compared to the same period in fiscal 2010 due primarily to the completion of our change of domicile to the Netherlands in fiscal 2010 and decreased costs of ongoing litigation and other general and administrative activities.
Other expense, net, which primarily consists of gains and losses from currency transactions or revaluation, increased to $0.5 million for the three months ended March 31, 2011 as compared to $0.0 million for the same period in fiscal 2010. Other expense, net, increased to $1.0 million for the nine months ended March 31, 2011 as compared to $0.6 million for the same period in fiscal 2010. Increases in other expense, net are due to currency exchange rate fluctuations on transactions or balances denominated in currencies other than the functional currency of our subsidiaries.
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Vistaprint N.v. has a market cap of $2.32 billion; its shares were traded at around $54.3 with a P/E ratio of 34 and P/S ratio of 3.5. Vistaprint N.v. had an annual average earning growth of 41.6% over the past 5 years.
Highlight of Business Operations:
For the three and nine months ended March 31, 2011, we reported 23% and 20% revenue growth over the same prior year periods to revenue of $203.7 million and $608.2 million, respectively. Constant-currency revenue growth was 22% for both periods. Diluted earnings per share (EPS) grew 46% and 21% for the three and nine months ended March 31, 2011 over the same prior year periods to $0.51 and $1.50, respectively. The strong EPS growth for the three months ended March 31, 2011 compared to the prior year period was primarily due to strong revenue performance, gross margin improvements from manufacturing and procurement efficiencies, and favorability in operating expenses as a percent of revenue from the timing of investments and technology and development costs, which grew more slowly than revenue in the period. We manage our business against annual targets, and believe investors should analyze our performance that way as well.On November 4, 2010, our Supervisory Board authorized the repurchase of up to $160 million of our outstanding ordinary shares in open market or privately negotiated transactions. The terms of the repurchase program are described further in Item 2 of Part II of this Report. During the three and nine months ended March 31, 2011, we repurchased our ordinary shares for a total cost of $1.5 million and $56.9 million, respectively, which we funded using our cash balances.
The increase in our technology and development expenses of $3.2 million and $10.5 million for the three and nine months ended March 31, 2011, respectively, as compared to the same periods in fiscal 2010 was primarily due to increased payroll and facility-related costs of $2.4 million and $6.2 million, respectively, associated with increased headcount in our technology development and information technology support organizations. At March 31, 2011, we employed 413 employees in these organizations compared to 356 employees at March 31, 2010. In addition, during the three and nine months ended March 31, 2011, we continued to invest in our website infrastructure, which resulted in increased depreciation, hosting services expense and other website related expenses of $0.5 million and $4.0 million, respectively, as compared to the same periods in fiscal 2010. The increase in other website related expenses during the nine months ended March 31, 2011 includes the impact of a legal settlement of a patent claim, offset by expenses in the prior year related to the abandonment of certain acquired intangible assets recorded in conjunction with the Soft Sight acquisition.
The increase in our marketing and selling expenses of $12.1 million for the three months ended March 31, 2011 as compared to the same period in fiscal 2010 was driven primarily by increases of $10.2 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base, and increases in payroll and facility-related costs of $2.6 million. The increase in our marketing and selling expenses of $39.5 million for the nine months ended March 31, 2011 as compared to the same period in fiscal 2010 was driven primarily by increases of $30.0 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base, and increases in payroll and facility-related costs of $8.8 million. We continued to expand our marketing organization and our customer service, sales and design support centers and at March 31, 2011, we employed 967 employees in these organizations compared to 835 employees at March 31, 2010. In addition, payment processing fees paid to third parties increased by $0.7 million and $2.4 million during the three and nine months ended March 31, 2011, respectively, as compared to the same periods in fiscal 2010 due primarily to increased order volumes. These increases were partially offset by a non-recurring charge of $1.5 million related to indirect taxes that is included in the three and nine month periods ended March 31, 2010.
The increase in our general and administrative expenses of $3.6 million and $7.4 million for the three and nine months ended March 31, 2011, respectively, as compared to the same periods in fiscal 2010 was primarily due to increased payroll and facility-related costs of $3.3 million and $9.3 million, respectively, resulting from the continued investment in our executive management, finance, legal and human resource organizations to support our expansion and growth. At March 31, 2011, we employed 232 employees in these organizations compared to 185 employees at March 31, 2010. The increase for the nine months ended March 31, 2011 was offset by decreased third-party professional fees of $2.5 million as compared to the same period in fiscal 2010 due primarily to the completion of our change of domicile to the Netherlands in fiscal 2010 and decreased costs of ongoing litigation and other general and administrative activities.
Other expense, net, which primarily consists of gains and losses from currency transactions or revaluation, increased to $0.5 million for the three months ended March 31, 2011 as compared to $0.0 million for the same period in fiscal 2010. Other expense, net, increased to $1.0 million for the nine months ended March 31, 2011 as compared to $0.6 million for the same period in fiscal 2010. Increases in other expense, net are due to currency exchange rate fluctuations on transactions or balances denominated in currencies other than the functional currency of our subsidiaries.
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