Vistaprint 2011 Annual Report Download - page 51

Download and view the complete annual report

Please find page 51 of the 2011 Vistaprint annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 139

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139

Income tax provision
2011 2010 2009
Year Ended June 30,
Income tax provision . . . . . . . . . . . . . . . . . . . . . . . . $ 9,013 $ 7,273 $ 5,417
Effective tax rate ............................. 9.9% 9.7% 8.9%
Income tax expense increased to $9.0 million for fiscal 2011, as compared to $7.3 million, and
$5.4 million for fiscal 2010 and 2009, respectively as a result of increased operating expenses and the
transfer pricing agreements between our subsidiaries. The change in the effective tax rate for fiscal
2011 as compared to fiscal 2010 is primarily attributable to unfavorable changes in the amount and
geographic mix of taxable earnings partially offset by the retroactive renewal of the U.S. federal
research and development tax credit as a result of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010 enacted in the quarter ended December 31, 2010.
The increase in the effective tax rate for fiscal 2010 as compared to fiscal 2009 is primarily
attributable to the expiration of the U.S. federal research and development tax credit offset by the
benefit associated with the geographic mix of taxable earnings.
Liquidity and Capital Resources
Consolidated Statements of Cash Flows Data:
In thousands
2011 2010 2009
Year Ended June 30,
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . $ (37,405) $ (101,326) $ (76,286)
Capitalization of software and website development
costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,290) (6,516) (7,168)
Depreciation and amortization . . . . . . . . . . . . . . . . . . . 50,627 44,367 35,713
Cash flows provided by operating activities . . . . . . . . . 162,633 153,701 120,051
Cash flows used in investing activities . . . . . . . . . . . . . (34,330) (123,865) (57,595)
Cash flows (used in) provided by financing activities . . (58,282) 1,259 (31,243)
At June 30, 2011, we had $236.6 million of cash and cash equivalents and no long-term debt.
Cash and cash equivalents increased $73.8 million in fiscal 2011. The activity of these cash flows
during fiscal 2011 related primarily to the following items:
Cash inflows:
• Net income of $82.1 million;
• Positive adjustments for non-cash items of $72.1 million including depreciation and
amortization of $50.6 million and share-based compensation costs of $21.7 million and
$8.4 million provided by working capital and other activities;
• Net investment activity of $9.6 million; and
• Proceeds from share issuances pursuant to option exercises of $7.0 million.
48