Vistaprint Financials Suffer From Strategy ShiftMay 2, 2014
"We also continue to move forward with many other improvements to our value proposition beyond our pricing and marketing practices," Keane added. "Examples include better customer service availability, improved product substrate quality, more reliable shipping methods, assistance for graphic design creation, new options for premium finishes, and more SKU choices."
As of March 31, 2014, the company had $46.5 million in cash and cash equivalents and $202.0 million of debt. After considering debt covenant limitations, as of March 31, 2014, the company had $301.4 million available for borrowing under its credit facility. Subsequent to the end of the quarter and after incorporating its acquisitions of People & Print Group and Pixartprinting, Vistaprint had roughly $150 million available for borrowing under the facility.
Starting in the first quarter of fiscal 2014, all operating metrics reflect the consolidated business including the company's Albumprinter and Webs acquisitions, and post-acquisition prior-period comparisons have been adjusted to reflect the same consolidated view.
Subsequent to the close of the quarter, Vistaprint reached an understanding with Namex Limited that Vistaprint would dispose of its minority equity interest in Namex Limited, as recent discussions with Namex management identified very different visions for the execution of the long-term strategic direction of the entity. Since its initial investment in fiscal 2012, total capital investment in Namex has been approximately $17.7 million. Vistaprint expects to sell its 45 percent share investment to the majority shareholder and recognize an income statement loss of up to $14 million in the fourth quarter of 2014 as the carrying value of the investment exceeds the expected proceeds.