Vistaprint 2014 Annual Report Download - page 46

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At June 30, 2014, we had $62.5 million of cash and cash equivalents and $448.1 million of outstanding
debt. Cash and cash equivalents increased by $12.4 million during fiscal 2014. The cash flows during the year
ended June 30, 2014 related primarily to the following items:
Cash inflows:
• Net income of $43.3 million;
• Positive adjustments to accrual based net income for non-cash items of $102.2 million primarily related to
depreciation and amortization of $72.3 million and share-based compensation costs of $27.8 million;
• Proceeds from borrowing of debt of $482.8 million; and
• Changes in working capital balances of $3.1 million.
Cash outflows:
• Capital expenditures of $72.1 million of which $35.3 million were related to the purchase of manufacturing
and automation equipment for our production facilities, $15.4 million were related to the purchase of
computer equipment, and $21.4 million were related to purchases of other capital assets, including facility
improvements and office equipment;
• Repayments of debt and debt issuance costs of $274.9 million;
• Payments for business acquisitions, net of cash acquired, of $216.4 million;
• Purchases of our ordinary shares of $42.0 million;
• Internal costs for software and website development that we have capitalized of $9.7 million; and
• Increased equity investment in Namex of $5.0 million.
Additional Liquidity and Capital Resources Information. During fiscal 2014, we financed our operations,
ordinary share purchases and strategic investments through internally generated cash flows from operations and
our debt financing. We currently plan to invest approximately $80 million to $100 million in total capital expenditures
in fiscal 2015. The majority of planned fiscal 2015 capital investments are designed to support the planned long-
term growth of the business. In fiscal 2015, we expect to spend approximately $20 million to build a new
manufacturing facility in Japan as part of our joint venture. We also are investing approximately $20 million to $25
million in the expansion of our product selection and other new manufacturing capabilities. Due to our investments
in recent years, our current liabilities continue to 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 investments and capital
expenditure requirements, for the foreseeable future.
As of June 30, 2014, approximately $62.0 million of our cash and cash equivalents was held by our
subsidiaries, and undistributed earnings of our subsidiaries that are considered to be indefinitely reinvested were
$112.5 million. However, we do not intend to repatriate such funds as the cash and cash equivalent balances are
generally used and available, without legal restrictions, to fund ordinary business operations and investments of the
respective subsidiaries. If there is a change in the future, the repatriation of undistributed earnings from certain
subsidiaries, in the form of dividends or otherwise, could have tax consequences that could result in material cash
outflows.
Debt. On January 17, 2014, we entered into an amendment to our credit agreement resulting in an increase
to aggregate loan commitments under the credit agreement by $303.8 million, to a total of $800.0 million, by adding
new lenders and increasing the commitments of several existing lenders. The new loan commitments consist of
revolving loans of $640.0 million and term loans of $160.0 million. The amendment did not result in any material
changes to our debt covenants.