Vistaprint 2012 Annual Report Download - page 52

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technology infrastructure and office equipment;
• Internal costs for software and website development that we have capitalized of $5.5 million;
• Payments for business acquisitions, net of cash acquired, of $180.7 million;
• Purchases of our ordinary shares of $309.7 million;
• Repayments of long-term debt of $179.5 million and debt issuance costs of $1.8 million; and
• Payments of the minimum withholding taxes related to shares withheld on vested restricted share units of
$4.1 million.
Additional Liquidity and Capital Resources Information. During fiscal 2012, we financed our operations
primarily through internally generated cash flows from operations and utilized borrowings of long-term debt to fund
strategic investments in business acquisitions and ordinary share purchases. Due to our recent investments and
share purchases, our current liabilities now exceed our current assets; however, we believe that our available cash,
cash flows generated from operations, and our debt financing capacity will be sufficient to satisfy our working capital
and planned investments to support our long-term growth strategy, including capital expenditure requirements, for
the foreseeable future. We currently plan to invest approximately $75 million to $95 million on capital expenditures
in fiscal 2013, which represents a substantial increase from fiscal 2012, primarily due to plans to expand our
manufacturing capacity in Europe and India, the completion of the construction of our Jamaican customer service,
sales and design support center, and the purchase of other IT and manufacturing equipment required to support our
long-term growth strategy.
We may also use a combination of available cash, cash flow generated from operations, and debt financing
to purchase our ordinary shares. During fiscal 2012 we purchased 9,900,980 of our ordinary shares for an
aggregate cost of $309.7 million in connection with our various share purchase programs, of which 1,203,021
shares remain available for future purchase.
As part of our growth strategy, we may also continue to assess potential merger and acquisition targets,
though we will continue to be prudent and selective. We acquired Albumprinter on October 31, 2011 and Webs on
December 28, 2011. We paid total cash consideration of €60.0 million ($85.0 million based on the exchange rate as
of the acquisition date) for Albumprinter less net working capital and net debt adjustments of €3.2 million, and we
may pay up to an additional €5.0 million ($7.1 million based on the exchange rate as of the acquisition date) in cash
based on performance targets covering the period from January 1, 2012 to December 31, 2012. For Webs, we paid
$101.3 million of total cash consideration and 506,343 ordinary shares pursuant to restricted share awards
contingent upon the continued employment of the founding shareholders. The Albumprinter and Webs acquisitions
were funded through a combination of existing cash and our revolving credit facility. If we were to make additional
investments incremental to our plan in areas such as mergers and acquisitions, we may need to raise capital
through future debt or equity financing to fund such investments.
Long-term Debt. On October 21, 2011, we entered into a senior credit agreement with a syndicate of
lenders led by JPMorgan Chase Bank, N.A., as administrative agent, that provides for an unsecured revolving credit
facility of up to $250.0 million in aggregate loan commitments, with letter of credit and swing line loan sublimits of
$25.0 million each. On April 13, 2012, we increased the aggregate loan commitments under the credit agreement by
$137.5 million, to a total of $387.5 million, by adding new lenders and increasing the commitments of several
existing lenders. We may from time to time, so long as no default or event of default has occurred and is continuing,
further increase the loan commitments under the credit agreement by up to $150.0 million by adding new
commitments or increasing the commitment of willing lenders. The maturity date of the credit agreement is October
21, 2016.
At August 10, 2012, we had outstanding borrowings drawn on the revolving credit facility of $261.2 million
and availability of $104.3 million (after consideration of other limitations of $22.0 million). In the next twelve months
we may use, as needed, our new revolving credit facility or additional sources of borrowings in order to fund our
ongoing operations, repurchase our shares, or support our long-term growth. We have other financial obligations