Vistaprint 2007 Annual Report Download - page 81

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VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2007, 2006 and 2005
(in thousands, except share and per share data)
4. Property, Plant and Equipment
Property, plant and equipment consist of the following:
June 30,
2007 2006
Land and land improvements............................................... $ 4,945 $ 2,286
Building and building improvements......................................... 21,265 11,468
Computer software and equipment ......................................... 16,739 8,804
Furniture, fixtures and office equipment ..................................... 4,150 1,684
Leasehold improvements .................................................. 1,237 792
Machinery and print production equipment................................... 62,250 28,196
Construction in progress ................................................... 16,540 7,393
127,126 60,623
Less: accumulated depreciation ............................................ (20,934) (10,312)
$106,192 $ 50,311
At June 30, 2007, construction in progress consisted mainly of expenditures related to the
purchase of print production equipment for the Company’s printing facilities in Ontario, Canada and the
Netherlands and expansion of the Dutch facilities. At June 30, 2006, construction in progress consisted
mainly of expenditures related to the purchase of print production equipment for the Canadian and
Dutch facilities. Depreciation expense totaled $11,568, $5,388 and $2,818 for the years ended
June 30, 2007, 2006 and 2005, respectively.
5. Long-Term Debt
In November 2003, VistaPrint B.V., the Company’s Dutch production subsidiary, entered into a
5,000 euro revolving credit agreement (the “Credit Agreement”) with ABN AMRO Bank N.V., a Dutch
based bank. The borrowings were used to finance the construction of the Company’s printing facility
located in Venlo, the Netherlands. The Company had $5,837 and $5,793 outstanding under the Credit
Agreement as of June 30, 2007 and 2006. The loan is secured by a mortgage on the land and building
and is payable in quarterly installments beginning on October 1, 2004 through 2024 of 63 euros ($85
and $79 at June 30, 2007 and 2006, respectively). On April 1, 2006, the Company elected a fixed rate
option and the interest rate was fixed at 5.20% through April 1, 2016 at which time the rate will be
reset.
In November 2004, VistaPrint B.V. amended the Credit Agreement to include an additional 1,200
euro loan. The borrowings were used to finance a new printing press at the Venlo printing facility. This
resulted in the Company having an additional $1,015 and $1,206 outstanding under the Credit
Agreement as of June 30, 2007 and 2006, respectively. This additional loan is secured by the printing
press and is payable in quarterly installments beginning on April 1, 2005 through 2011 of 50 euros ($68
and $63 at June 30, 2007 and 2006, respectively). On April 1, 2006, the Company elected a fixed rate
option and the interest rate was fixed at 5.10% over the remaining term of the loan.
The Credit Agreement with ABN AMRO requires the Company to cause VistaPrint B.V. to
maintain tangible net worth at a minimum of 30% of VistaPrint B.V.’s adjusted balance sheet and
77
Form 10-K