Net Revenues Increase 19% Year Over Year
Closes EZ Prints Acquisition to Extend E-Commerce Services
LOUISVILLE, Ky., Nov. 7, 2012 (GLOBE NEWSWIRE) -- CafePress Inc. (Nasdaq:PRSS), The World's Customization EngineTM, today reported financial results for the three and nine months ended September 30, 2012.
"Third quarter revenue was driven by strong demand for customized products across all CafePress brands. To manage this growth we doubled the size of our flagship manufacturing facility in Kentucky during the quarter," said Chief Executive Officer Bob Marino. "Revenue from our Marketplace and large corporate shops was solid, we launched new social, mobile and licensed content programs, and average order size benefitted from strong wall art sales and purchases by groups. These trends were offset by lower revenue from small shops, and our bottom line was impacted by enhanced levels of promotional activity and additional expenses related to increased manufacturing capacity. Looking ahead, we believe that the addition of software technology from the recent EZ Prints acquisition will enable us to more efficiently build and scale large corporate shops, fuel traffic growth and further our reach by opening up CafePress' massive content library to a wider audience across the internet."
Third Quarter 2012 Financial Highlights
Third Quarter 2012 Operating Metrics
Recent Operating Highlights
"Looking ahead to the holiday period, we are factoring in volatility of the consumer spending environment, the impact of the election, as well as what we believe the impact of Hurricane Sandy will be on our customer base in our outlook for the rest of the year. We are also including estimates for contributions from the EZ Prints acquisition that closed on October 25, 2012," said Monica Johnson, Chief Financial Officer.
For the fourth quarter of 2012:
For fiscal year 2012:
Third Quarter 2012 Conference Call
Management will review the third quarter 2012 financial results and its expectations for the fourth quarter and full year 2012 on a conference call on Wednesday, November 7, 2012 at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Time). To participate on the live call, analysts and investors should dial 1-877-941-2068 at least ten minutes prior to the call. CafePress will also offer a live and archived webcast of the conference call, accessible from the "Investors" section of the Company's Web site at http://investor.cafepress.com/.
Non-GAAP Financial Information
This press release contains certain non-GAAP financial measures. Tables are provided at the end of this press release that reconcile the non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include Adjusted EBITDA, non-GAAP operating income, and non-GAAP diluted earnings per share. For more information, please see the Company's Registration Statement filed with the Securities and Exchange Commission on March 28, 2012, which is available on the Securities and Exchange Commission's Web site at www.sec.gov.
To supplement the Company's consolidated financial statements presented on a GAAP basis, we believe that these non-GAAP measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results and trends and performance. Management uses these non-GAAP measures to evaluate the Company's financial results, develop budgets, manage expenditures, and determine employee compensation. The presentation of additional information is not meant to be considered in isolation or as a substitute for or superior to net income (loss) or net income (loss) per share determined in accordance with GAAP.
Notice Regarding Forward Looking Statements
This media release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties. These forward-looking statements include, among other matters, all statements regarding the Company's financial expectations as to growth and profitability for the fourth quarter and full year 2012 set forth under the caption "Business Outlook." These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially from those expressed in these forward-looking statements. Factors that might contribute to such differences include, among others, economic downturns and the general state of the economy; intense competition, which could lead to pricing pressure among other effects; our ability to expand our customer base and meet production requirements; risks and uncertainties arising from the integration of EZ Prints following the Merger with CafePress; our ability to retain and hire necessary employees, including seasonal personnel, and appropriately staff our operations; the impact of seasonality on our business; our ability to timely develop new product and service offerings, as well as consumer acceptance of new products and services; our ability to develop additional adjacent lines of business to complement our growth strategies; and unforeseen changes in expense levels. For more information regarding the risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, as well as risks relating to our business in general, we refer you to the "Risk Factors" sections of the Company's Registration Statement filed with the Securities and Exchange Commission on March 28, 2012, which is available on the Securities and Exchange Commission's Web site at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. The Company assumes no obligation to update these forward-looking statements.
About CafePress (PRSS):
CafePress is The World's Customization EngineTM. Launched in 1999, CafePress empowers individuals, groups, businesses and organizations to create, buy and sell customized and personalized products online using the company's innovative and proprietary print-on-demand services and e-commerce platform. Today, CafePress' portfolio of e-commerce websites and companies includes CafePress.com, CanvasOnDemand.com, GreatBigCanvas.com, Imagekind.com, InvitationBox.com, Logosportswear.com and EZ Prints, Inc.
The CafePress logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12183