Vistaprint 2006 Annual Report Download - page 87

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Table of Contents VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2006, 2005 and 2004
(in thousands, except share and per share data)
Company’s results of operations, cash flows or financial position in a future period. Regardless of the outcome, litigation can have an adverse
impact on the Company because of defense costs, diversion of management resources and other factors.
The Company is not currently party to any other material legal proceedings.
15. Supplemental Disclosures of Cash Flow Information
Year Ended June 30,
2006 2005 2004
Cash paid during the year for:
Interest $1,089 $ 369 $ 66
Income taxes 766 269 410
Supplemental disclosure of noncash investing and financing activities:
Repayment of note payable from officer with common shares $ — $ — $ 356
Preferred shares issued to investor in lieu of issuance costs — — 165
Receivables for exercise of share options — — 95
Accretion of preferred shares 1,295 4,813 2,499
16. Allowance for Doubtful Accounts
The Company offsets gross trade accounts receivable with an allowance for doubtful accounts. The allowance for doubtful accounts is the
Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews its
allowance for doubtful accounts on a monthly basis and all past due balances are reviewed individually for collectibility. Account balances are
charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.
Below is a summary of the changes in the Company’s allowance for doubtful accounts for the years ended June 30, 2006 and 2005:
Balance at
Beginning of
Period Provision
Write−
offs/
(Recovery) Balance at
End of Period
Year ended June 30, 2006 $ 57 $ — $ (7) $ 50
Year ended June 30, 2005 $ 48 $ 16 $ (7) $ 57
17. Quarterly Financial Data (unaudited)
Year Ended June 30, 2006
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Total revenue $ 28,898 $ 36,366 $ 41,603 $ 45,282
Net income 2,901 5,466 5,264 5,604
Net income attributable to common shareholders:
Basic $ 557 $ 5,466 $ 5,264 $ 5,604
Diluted $ 631 $ 5,466 $ 5,264 $ 5,604
Net income per common share (1):
Basic $ 0.05 $ 0.14 $ 0.13 $ 0.14
Diluted $ 0.04 $ 0.13 $ 0.12 $ 0.12
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