Vistaprint 2015 Annual Report Download - page 5

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Special Note Regarding Forward-Looking Statements
The statements in this letter concerning our expectations for the future growth and development of our business and
anticipated effects of our strategy and investments constitute forward-looking statements for purposes of the safe harbor
provisions under the Private Securities Litigation Reform Act of 1995. Our actual results may differ materially from those
indicated by these forward-looking statements as a result of various important factors, including but not limited to those
contained in the Risk Factors section of this Annual Report.
About Non-GAAP Measures
To supplement Cimpress’ consolidated financial statements presented in accordance with U.S. generally accepted accounting
principles, or GAAP, Cimpress has used the following measures defined as non-GAAP financial measures by Securities and
Exchange Commission, or SEC, rules: free cash flow and steady-state free cash flow.
x Free cash flow is defined as net cash provided by operating activities less purchases of property, plant and
equipment, purchases of intangible assets not related to acquisitions, and capitalization of software and website
development costs, plus payment of contingent consideration in excess of acquisition-date fair value.
x Steady-state free cash flow is defined as free cash flow as defined above, adjusted for the pro-forma inclusion of
recent M&A activity and non-steady state working capital change, minus our estimated range of discretionary growth
spending that we invest in the anticipation of earning a return above our cost of capital.
The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial
measures, please see the tables captioned “Reconciliations of Non-GAAP Financial Measures” in this release. The tables
have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and
the related reconciliation between these financial measures.
Cimpress’ management believes that these non-GAAP financial measures provide meaningful supplemental information in
assessing our performance and liquidity by excluding certain items that may not be indicative of our recurring core business
operating results, which could be non-cash charges or discrete cash charges that are infrequent in nature. These non-GAAP
financial measures also have facilitated management’s internal comparisons to Cimpress’ historical performance and our
competitors’ operating results.
Non-GAAP Reconciliation of Estimated Steady State Free Cash Flow
Steady State Free Cash Flow
in $USD millions
Free Cash Flow
in $USD millions
FY2015
Net cash provided by operating activities
$229
Purchases of property, plant and equipment
(76)
Purchases of intangible assets not related to acquisitions
(0)
Capitalization of software and website development costs
(17)
Payment of contingent consideration in excess of acquisition-date fair value
8
Free cash flow
$144
FY2015
Free Cash Flow as reported (reconciliation below)
$144
Adjustments for pro-forma of recent M&A and non-steady state working capital change
(14)
Pro forma Free Cash Flow normalized for M&A and WC through June 2015
$130
Add back Major Long Term Investments
80
Free Cash Flow without Major LT Investments
$210
Add back Diverse Other LT Investments
175
Free Cash Flow with neither Major nor Diverse Other Investments
$385