Vistaprint 2011 Annual Report Download - page 52

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Form 10-K
Cash outflows:
• Repurchases of our ordinary shares of $56.9 million;
• Capital expenditures of $37.4 million of which $16.2 million were related to the purchase of
manufacturing and automation equipment for our production facilities, $11.2 million were
related to the purchase of land and facilities, and $10.0 million were related to purchases of
other assets including information technology infrastructure and office equipment;
• Internal costs for software and website development that we have capitalized of $6.3 million;
• Payments of the minimum withholding taxes related to shares withheld on vested restricted
stock units of $5.7 million; and
• Payments in connection with our loan facility of $5.2 million, which included the final balloon
payment on our amended Canadian credit agreement in December 2010.
Additional Liquidity and Capital Resources Information. During fiscal 2011, we financed our
operations primarily through internally generated cash flows from operations. 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 new 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 2012, primarily due to plans to expand our
manufacturing capacity in Europe, construction of our Jamaican customer service, sales and design
support center, and other IT and manufacturing equipment requirements to support our growth.
We may also use a combination of available cash, cash flow generated from operations, and
debt financing to repurchase our ordinary shares. Pursuant to our repurchase program announced in
November 2010, we have purchased 3,074,832 of our ordinary shares subsequent to June 30, 2011
and through August 12, 2011 for a cost of $91.1 million bringing the total ordinary shares repurchased
under the plan to 4,401,765 for a cost of $148.0 million. We have reached the program limit of 10% of
our issued and outstanding ordinary shares as of the date the program was authorized and plan to
seek shareholder approval for additional share repurchases.
As part of our growth strategy we expect to be more proactive in assessing potential merger
and acquisition targets, though we will continue to be prudent and selective. We believe that if we
were to make investments incremental to our plan in areas such as mergers and acquisitions, we may
require external debt financing that we believe would be available to us on commercially acceptable
terms.
Contractual Obligations
Contractual obligations at June 30, 2011 are as follows:
In thousands
Total
Less
than 1
year
1-3
years
3-5
years
More
than 5
years
Payments Due by Period
Operating lease obligations . . . . $ 46,349 $ 9,043 $ 15,849 $ 14,774 $ 6,683
Purchase obligations. . . . . . . . . 23,020 23,020 — — —
Total (1) . . . . . . . . . . . . . . . . . . $ 69,369 $ 32,063 $ 15,849 $ 14,774 $ 6,683
49