0001262976-21-000008.txt : 20210128 0001262976-21-000008.hdr.sgml : 20210128 20210128171025 ACCESSION NUMBER: 0001262976-21-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 67 CONFORMED PERIOD OF REPORT: 20201231 FILED AS OF DATE: 20210128 DATE AS OF CHANGE: 20210128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIMPRESS plc CENTRAL INDEX KEY: 0001262976 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL PRINTING [2750] IRS NUMBER: 980417483 STATE OF INCORPORATION: P7 FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-39148 FILM NUMBER: 21566235 BUSINESS ADDRESS: STREET 1: BUILDING D, XEROX TECHNOLOGY PARK CITY: DUNDALK, COUNTY LOUTH STATE: L2 ZIP: A91 H9N9 BUSINESS PHONE: 781-652-6300 MAIL ADDRESS: STREET 1: C/O CIMPRESS USA INCORPORATED STREET 2: 275 WYMAN STREET CITY: WALTHAM STATE: MA ZIP: 02451 FORMER COMPANY: FORMER CONFORMED NAME: CIMPRESS N.V. DATE OF NAME CHANGE: 20141114 FORMER COMPANY: FORMER CONFORMED NAME: VISTAPRINT N.V. DATE OF NAME CHANGE: 20090828 FORMER COMPANY: FORMER CONFORMED NAME: VISTAPRINT LTD DATE OF NAME CHANGE: 20030908 10-Q 1 cmpr-20201231.htm 10-Q cmpr-20201231
0001262976FALSE10-Q2021Q206/3010,7979,6510.010.01100,000,000100,000,000100,000,000100,000,0000.010.01100,000,000100,000,000100,000,000100,000,00044,080,62744,080,62744,080,62744,080,62725,885,67526,003,64925,885,67518,076,97818,194,95218,076,97818,194,9522022-03-312025-12-312021-04-152023-04-142024-06-192024-06-1923700012629762020-07-012020-12-31xbrli:shares00012629762021-01-25iso4217:USD00012629762020-12-3100012629762020-06-30iso4217:EURxbrli:shares00012629762020-10-012020-12-3100012629762019-10-012019-12-3100012629762019-07-012019-12-31iso4217:USDxbrli:shares0001262976us-gaap:CostOfSalesMember2020-10-012020-12-310001262976us-gaap:CostOfSalesMember2019-10-012019-12-310001262976us-gaap:CostOfSalesMember2020-07-012020-12-310001262976us-gaap:CostOfSalesMember2019-07-012019-12-310001262976us-gaap:ResearchAndDevelopmentExpenseMember2020-10-012020-12-310001262976us-gaap:ResearchAndDevelopmentExpenseMember2019-10-012019-12-310001262976us-gaap:ResearchAndDevelopmentExpenseMember2020-07-012020-12-310001262976us-gaap:ResearchAndDevelopmentExpenseMember2019-07-012019-12-310001262976us-gaap:SellingAndMarketingExpenseMember2020-10-012020-12-310001262976us-gaap:SellingAndMarketingExpenseMember2019-10-012019-12-310001262976us-gaap:SellingAndMarketingExpenseMember2020-07-012020-12-310001262976us-gaap:SellingAndMarketingExpenseMember2019-07-012019-12-310001262976us-gaap:GeneralAndAdministrativeExpenseMember2020-10-012020-12-310001262976us-gaap:GeneralAndAdministrativeExpenseMember2019-10-012019-12-310001262976us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-12-310001262976us-gaap:GeneralAndAdministrativeExpenseMember2019-07-012019-12-310001262976us-gaap:RestructuringChargesMember2020-10-012020-12-310001262976us-gaap:RestructuringChargesMember2019-10-012019-12-310001262976us-gaap:RestructuringChargesMember2020-07-012020-12-310001262976us-gaap:RestructuringChargesMember2019-07-012019-12-310001262976us-gaap:CommonStockMember2019-06-300001262976us-gaap:TreasuryStockMember2019-06-300001262976us-gaap:AdditionalPaidInCapitalMember2019-06-300001262976us-gaap:RetainedEarningsMember2019-06-300001262976us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-3000012629762019-06-300001262976us-gaap:TreasuryStockMember2019-07-012019-09-300001262976us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-3000012629762019-07-012019-09-300001262976us-gaap:RetainedEarningsMember2019-07-012019-09-300001262976us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001262976us-gaap:CommonStockMember2019-09-300001262976us-gaap:TreasuryStockMember2019-09-300001262976us-gaap:AdditionalPaidInCapitalMember2019-09-300001262976us-gaap:RetainedEarningsMember2019-09-300001262976us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-3000012629762019-09-300001262976us-gaap:TreasuryStockMember2019-10-012019-12-310001262976us-gaap:AdditionalPaidInCapitalMember2019-10-012019-12-310001262976cmpr:DeferredordinarysharesMember2019-10-012019-12-310001262976us-gaap:RetainedEarningsMember2019-10-012019-12-310001262976us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-10-012019-12-310001262976us-gaap:CommonStockMember2019-12-310001262976cmpr:DeferredordinarysharesMember2019-12-310001262976us-gaap:TreasuryStockMember2019-12-310001262976us-gaap:AdditionalPaidInCapitalMember2019-12-310001262976us-gaap:RetainedEarningsMember2019-12-310001262976us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-3100012629762019-12-310001262976us-gaap:CommonStockMember2020-06-300001262976cmpr:DeferredordinarysharesMember2020-06-300001262976us-gaap:TreasuryStockMember2020-06-300001262976us-gaap:AdditionalPaidInCapitalMember2020-06-300001262976us-gaap:RetainedEarningsMember2020-06-300001262976us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-3000012629762020-07-012020-09-300001262976us-gaap:TreasuryStockMember2020-07-012020-09-300001262976us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001262976us-gaap:RetainedEarningsMember2020-07-012020-09-300001262976us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001262976us-gaap:CommonStockMember2020-09-300001262976cmpr:DeferredordinarysharesMember2020-09-300001262976us-gaap:TreasuryStockMember2020-09-300001262976us-gaap:AdditionalPaidInCapitalMember2020-09-300001262976us-gaap:RetainedEarningsMember2020-09-300001262976us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-3000012629762020-09-300001262976us-gaap:RetainedEarningsMember2020-10-012020-12-310001262976us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-10-012020-12-310001262976us-gaap:CommonStockMember2020-12-310001262976cmpr:DeferredordinarysharesMember2020-12-310001262976us-gaap:TreasuryStockMember2020-12-310001262976us-gaap:AdditionalPaidInCapitalMember2020-12-310001262976us-gaap:RetainedEarningsMember2020-12-310001262976us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100012629762020-05-010001262976us-gaap:WarrantMember2020-07-012020-12-310001262976us-gaap:AccountingStandardsUpdate201912Member2020-07-012020-12-310001262976us-gaap:CurrencySwapMember2020-12-310001262976us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Member2020-12-310001262976us-gaap:FairValueMeasurementsRecurringMember2020-12-310001262976us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001262976us-gaap:InterestRateSwapMember2020-12-310001262976us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMember2020-12-310001262976us-gaap:CrossCurrencyInterestRateContractMember2020-12-310001262976us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel2Member2020-12-310001262976us-gaap:ForeignExchangeOptionMember2020-12-310001262976us-gaap:ForeignExchangeOptionMemberus-gaap:FairValueInputsLevel2Member2020-12-310001262976us-gaap:InterestRateSwapMember2020-06-300001262976us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMember2020-06-300001262976us-gaap:CurrencySwapMember2020-06-300001262976us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Member2020-06-300001262976us-gaap:ForeignExchangeOptionMember2020-06-300001262976us-gaap:ForeignExchangeOptionMemberus-gaap:FairValueInputsLevel2Member2020-06-300001262976us-gaap:FairValueMeasurementsRecurringMember2020-06-300001262976us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001262976us-gaap:CrossCurrencyInterestRateContractMember2020-06-300001262976us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel2Member2020-06-300001262976cmpr:DebtGrossMember2020-12-310001262976cmpr:DebtGrossMember2020-06-300001262976us-gaap:InterestRateSwapMember2020-07-012020-12-31cmpr:instrument0001262976us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMember2020-12-310001262976us-gaap:CurrencySwapMember2020-07-012020-12-310001262976us-gaap:ForwardContractsMemberus-gaap:NetInvestmentHedgingMember2020-12-310001262976us-gaap:ForeignExchangeForwardMember2020-12-310001262976us-gaap:ForeignExchangeForwardMember2020-07-012020-12-310001262976us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2020-12-310001262976us-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001262976us-gaap:ForwardContractsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2020-12-310001262976us-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001262976us-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2020-12-310001262976us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2020-12-310001262976us-gaap:ForeignExchangeOptionMemberus-gaap:NondesignatedMember2020-12-310001262976us-gaap:NondesignatedMember2020-12-310001262976us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2020-06-300001262976us-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-06-300001262976us-gaap:ForwardContractsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2020-06-300001262976us-gaap:DesignatedAsHedgingInstrumentMember2020-06-300001262976us-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2020-06-300001262976us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2020-06-300001262976us-gaap:ForeignExchangeOptionMemberus-gaap:NondesignatedMember2020-06-300001262976us-gaap:NondesignatedMember2020-06-300001262976us-gaap:InterestRateSwapMember2020-10-012020-12-310001262976us-gaap:InterestRateSwapMember2019-10-012019-12-310001262976us-gaap:InterestRateSwapMember2019-07-012019-12-310001262976us-gaap:CurrencySwapMember2020-10-012020-12-310001262976us-gaap:CurrencySwapMember2019-10-012019-12-310001262976us-gaap:CurrencySwapMember2019-07-012019-12-310001262976us-gaap:ForwardContractsMemberus-gaap:NetInvestmentHedgingMember2020-10-012020-12-310001262976us-gaap:ForwardContractsMemberus-gaap:NetInvestmentHedgingMember2019-10-012019-12-310001262976us-gaap:ForwardContractsMemberus-gaap:NetInvestmentHedgingMember2020-07-012020-12-310001262976us-gaap:ForwardContractsMemberus-gaap:NetInvestmentHedgingMember2019-07-012019-12-310001262976us-gaap:InterestExpenseMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMember2020-10-012020-12-310001262976us-gaap:InterestExpenseMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMember2019-10-012019-12-310001262976us-gaap:InterestExpenseMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMember2020-07-012020-12-310001262976us-gaap:InterestExpenseMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMember2019-07-012019-12-310001262976us-gaap:CurrencySwapMemberus-gaap:OtherIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-10-012020-12-310001262976us-gaap:CurrencySwapMemberus-gaap:OtherIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-10-012019-12-310001262976us-gaap:CurrencySwapMemberus-gaap:OtherIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-07-012020-12-310001262976us-gaap:CurrencySwapMemberus-gaap:OtherIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-07-012019-12-310001262976cmpr:IncomelossbeforetaxesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-10-012020-12-310001262976cmpr:IncomelossbeforetaxesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-10-012019-12-310001262976cmpr:IncomelossbeforetaxesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-07-012020-12-310001262976cmpr:IncomelossbeforetaxesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-07-012019-12-310001262976us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMembercmpr:IncomeTaxExpenseBenefitMember2020-10-012020-12-310001262976us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMembercmpr:IncomeTaxExpenseBenefitMember2019-10-012019-12-310001262976us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMembercmpr:IncomeTaxExpenseBenefitMember2020-07-012020-12-310001262976us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMembercmpr:IncomeTaxExpenseBenefitMember2019-07-012019-12-310001262976us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-10-012020-12-310001262976us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-10-012019-12-310001262976us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-07-012020-12-310001262976us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-07-012019-12-310001262976us-gaap:ForeignExchangeForwardMember2020-10-012020-12-310001262976us-gaap:ForeignExchangeForwardMember2019-10-012019-12-310001262976us-gaap:ForeignExchangeForwardMember2019-07-012019-12-310001262976srt:MinimumMemberus-gaap:InterestRateSwapMember2020-07-012020-12-310001262976srt:MaximumMemberus-gaap:InterestRateSwapMember2020-07-012020-12-310001262976srt:MinimumMemberus-gaap:ForeignExchangeForwardMember2020-07-012020-12-310001262976srt:MaximumMemberus-gaap:ForeignExchangeForwardMember2020-07-012020-12-310001262976us-gaap:CurrencySwapMembersrt:MinimumMember2020-07-012020-12-310001262976us-gaap:CurrencySwapMembersrt:MaximumMember2020-07-012020-12-310001262976us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-06-300001262976us-gaap:PensionPlansDefinedBenefitMember2020-06-300001262976us-gaap:AccumulatedTranslationAdjustmentMember2020-06-300001262976us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-07-012020-12-310001262976us-gaap:PensionPlansDefinedBenefitMember2020-07-012020-12-310001262976us-gaap:AccumulatedTranslationAdjustmentMember2020-07-012020-12-310001262976us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-12-310001262976us-gaap:PensionPlansDefinedBenefitMember2020-12-310001262976us-gaap:AccumulatedTranslationAdjustmentMember2020-12-3100012629762019-07-012020-06-300001262976cmpr:VistaprintMember2020-06-300001262976cmpr:PrintBrothersMember2020-06-300001262976cmpr:ThePrintGroupMember2020-06-300001262976cmpr:AllOtherBusinessesMember2020-06-300001262976cmpr:VistaprintMember2020-07-012020-12-310001262976cmpr:PrintBrothersMember2020-07-012020-12-310001262976cmpr:ThePrintGroupMember2020-07-012020-12-310001262976cmpr:AllOtherBusinessesMember2020-07-012020-12-310001262976cmpr:VistaprintMember2020-12-310001262976cmpr:PrintBrothersMember2020-12-310001262976cmpr:ThePrintGroupMember2020-12-310001262976cmpr:AllOtherBusinessesMember2020-12-310001262976cmpr:A99designsAcquisitionMemberus-gaap:CashAndCashEquivalentsMember2020-10-012020-12-310001262976cmpr:A99designsAcquisitionMember2020-10-012020-12-310001262976cmpr:A99designsAcquisitionMember2020-12-310001262976cmpr:A99designsAcquisitionMemberus-gaap:TradeNamesMember2020-12-310001262976cmpr:A99designsAcquisitionMemberus-gaap:TechnologyBasedIntangibleAssetsMember2020-12-310001262976cmpr:A99designsAcquisitionMembercmpr:DesignerRelationshipsMember2020-12-310001262976cmpr:A99designsAcquisitionMember2020-07-012020-12-310001262976cmpr:A99designsAcquisitionMemberus-gaap:TradeNamesMember2020-07-012020-12-310001262976cmpr:A99designsAcquisitionMemberus-gaap:TechnologyBasedIntangibleAssetsMember2020-07-012020-12-310001262976cmpr:A99designsAcquisitionMembercmpr:DesignerRelationshipsMember2020-07-012020-12-310001262976us-gaap:OtherCurrentLiabilitiesMember2020-12-310001262976us-gaap:OtherCurrentLiabilitiesMember2020-06-300001262976us-gaap:OtherNoncurrentLiabilitiesMember2020-12-310001262976us-gaap:OtherNoncurrentLiabilitiesMember2020-06-300001262976cmpr:SeniorNotesdue2022Member2020-12-310001262976cmpr:SeniorNotesdue2022Member2020-06-300001262976us-gaap:RevolvingCreditFacilityMember2020-12-310001262976us-gaap:RevolvingCreditFacilityMember2020-06-300001262976cmpr:SecondLienNotesdue2025Member2020-12-310001262976cmpr:SecondLienNotesdue2025Member2020-06-300001262976us-gaap:LineOfCreditMember2020-12-310001262976us-gaap:LineOfCreditMember2020-06-3000012629762020-02-1300012629762020-04-280001262976us-gaap:RevolvingCreditFacilityMember2020-04-280001262976cmpr:TermLoanDomain2020-04-280001262976us-gaap:LineOfCreditMember2020-12-310001262976cmpr:RevolvingLoanMaturityJune142023Member2020-12-310001262976cmpr:TermLoanDomainus-gaap:LineOfCreditMember2020-12-31utr:Rate0001262976cmpr:RevolvingLoanMaturityJune142023Member2020-12-310001262976srt:MinimumMemberus-gaap:LineOfCreditMember2020-07-012020-12-310001262976srt:MaximumMemberus-gaap:LineOfCreditMember2020-07-012020-12-3100012629762020-05-012020-05-010001262976cmpr:May2020PlacementMember2020-05-010001262976cmpr:May2020PlacementMember2020-05-012020-05-010001262976cmpr:SeniorNotesdue2026Member2020-02-132020-02-130001262976cmpr:SeniorNotesdue2026Member2020-07-012020-12-310001262976us-gaap:DebtInstrumentRedemptionPeriodTwoMembercmpr:SeniorNotesdue2026Member2020-07-012020-12-31xbrli:pure0001262976us-gaap:DebtInstrumentRedemptionPeriodOneMembercmpr:SeniorNotesdue2026Member2020-07-012020-12-310001262976cmpr:FederalActonTaxReformandAHVFinancingTRAFMember2019-10-012019-12-310001262976srt:MinimumMember2020-12-310001262976srt:MaximumMember2020-12-310001262976srt:MinimumMembercmpr:RedeemablenoncontrollinginterestMembercmpr:PrintBrothersMember2019-06-060001262976srt:MaximumMembercmpr:RedeemablenoncontrollinginterestMembercmpr:PrintBrothersMember2019-06-060001262976cmpr:RepurchasedNoncontrollingInterestMembersrt:MinimumMember2020-11-250001262976cmpr:RepurchasedNoncontrollingInterestMembersrt:MaximumMember2020-11-250001262976cmpr:RepurchasedNoncontrollingInterestMembersrt:MinimumMember2020-10-012020-12-310001262976cmpr:BuildASignLLCDomaincmpr:CimpressplcMember2018-10-010001262976cmpr:BuildASignLLCDomaincmpr:RedeemablenoncontrollinginterestMember2018-10-010001262976cmpr:BuildASignLLCDomaincmpr:RedeemablenoncontrollinginterestMember2020-10-012020-12-310001262976cmpr:RedeemablenoncontrollinginterestMembercmpr:RedeemablenoncontrollinginterestMember2020-06-300001262976cmpr:RedeemablenoncontrollinginterestMember2020-07-012020-12-310001262976cmpr:RedeemablenoncontrollinginterestMembercmpr:RedeemablenoncontrollinginterestMember2020-07-012020-12-310001262976cmpr:RedeemablenoncontrollinginterestMembercmpr:RedeemablenoncontrollinginterestMember2020-12-310001262976cmpr:VistaprintMemberus-gaap:OperatingSegmentsMember2020-10-012020-12-310001262976cmpr:VistaprintMemberus-gaap:OperatingSegmentsMember2019-10-012019-12-310001262976cmpr:VistaprintMemberus-gaap:OperatingSegmentsMember2020-07-012020-12-310001262976cmpr:VistaprintMemberus-gaap:OperatingSegmentsMember2019-07-012019-12-310001262976us-gaap:OperatingSegmentsMembercmpr:PrintBrothersMember2020-10-012020-12-310001262976us-gaap:OperatingSegmentsMembercmpr:PrintBrothersMember2019-10-012019-12-310001262976us-gaap:OperatingSegmentsMembercmpr:PrintBrothersMember2020-07-012020-12-310001262976us-gaap:OperatingSegmentsMembercmpr:PrintBrothersMember2019-07-012019-12-310001262976cmpr:ThePrintGroupMemberus-gaap:OperatingSegmentsMember2020-10-012020-12-310001262976cmpr:ThePrintGroupMemberus-gaap:OperatingSegmentsMember2019-10-012019-12-310001262976cmpr:ThePrintGroupMemberus-gaap:OperatingSegmentsMember2020-07-012020-12-310001262976cmpr:ThePrintGroupMemberus-gaap:OperatingSegmentsMember2019-07-012019-12-310001262976us-gaap:OperatingSegmentsMembercmpr:NationalPenMember2020-10-012020-12-310001262976us-gaap:OperatingSegmentsMembercmpr:NationalPenMember2019-10-012019-12-310001262976us-gaap:OperatingSegmentsMembercmpr:NationalPenMember2020-07-012020-12-310001262976us-gaap:OperatingSegmentsMembercmpr:NationalPenMember2019-07-012019-12-310001262976cmpr:AllOtherBusinessesMemberus-gaap:OperatingSegmentsMember2020-10-012020-12-310001262976cmpr:AllOtherBusinessesMemberus-gaap:OperatingSegmentsMember2019-10-012019-12-310001262976cmpr:AllOtherBusinessesMemberus-gaap:OperatingSegmentsMember2020-07-012020-12-310001262976cmpr:AllOtherBusinessesMemberus-gaap:OperatingSegmentsMember2019-07-012019-12-310001262976us-gaap:OperatingSegmentsMember2020-10-012020-12-310001262976us-gaap:OperatingSegmentsMember2019-10-012019-12-310001262976us-gaap:OperatingSegmentsMember2020-07-012020-12-310001262976us-gaap:OperatingSegmentsMember2019-07-012019-12-310001262976us-gaap:IntersegmentEliminationMember2020-10-012020-12-310001262976us-gaap:IntersegmentEliminationMember2019-10-012019-12-310001262976us-gaap:IntersegmentEliminationMember2020-07-012020-12-310001262976us-gaap:IntersegmentEliminationMember2019-07-012019-12-310001262976cmpr:VistaprintMembersrt:NorthAmericaMember2020-10-012020-12-310001262976srt:NorthAmericaMembercmpr:PrintBrothersMember2020-10-012020-12-310001262976cmpr:ThePrintGroupMembersrt:NorthAmericaMember2020-10-012020-12-310001262976cmpr:NationalPenMembersrt:NorthAmericaMember2020-10-012020-12-310001262976cmpr:AllOtherBusinessesMembersrt:NorthAmericaMember2020-10-012020-12-310001262976srt:NorthAmericaMember2020-10-012020-12-310001262976srt:EuropeMembercmpr:VistaprintMember2020-10-012020-12-310001262976srt:EuropeMembercmpr:PrintBrothersMember2020-10-012020-12-310001262976srt:EuropeMembercmpr:ThePrintGroupMember2020-10-012020-12-310001262976srt:EuropeMembercmpr:NationalPenMember2020-10-012020-12-310001262976srt:EuropeMembercmpr:AllOtherBusinessesMember2020-10-012020-12-310001262976srt:EuropeMember2020-10-012020-12-310001262976cmpr:VistaprintMembercmpr:OtherContinentsMember2020-10-012020-12-310001262976cmpr:OtherContinentsMembercmpr:NationalPenMember2020-10-012020-12-310001262976cmpr:AllOtherBusinessesMembercmpr:OtherContinentsMember2020-10-012020-12-310001262976cmpr:OtherContinentsMember2020-10-012020-12-310001262976cmpr:VistaprintMemberus-gaap:IntersegmentEliminationMember2020-10-012020-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:PrintBrothersMember2020-10-012020-12-310001262976cmpr:ThePrintGroupMemberus-gaap:IntersegmentEliminationMember2020-10-012020-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:NationalPenMember2020-10-012020-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:AllOtherBusinessesMember2020-10-012020-12-310001262976cmpr:VistaprintMember2020-10-012020-12-310001262976cmpr:PrintBrothersMember2020-10-012020-12-310001262976cmpr:ThePrintGroupMember2020-10-012020-12-310001262976cmpr:NationalPenMember2020-10-012020-12-310001262976cmpr:AllOtherBusinessesMember2020-10-012020-12-310001262976cmpr:VistaprintMembersrt:NorthAmericaMember2020-07-012020-12-310001262976srt:NorthAmericaMembercmpr:PrintBrothersMember2020-07-012020-12-310001262976cmpr:ThePrintGroupMembersrt:NorthAmericaMember2020-07-012020-12-310001262976cmpr:NationalPenMembersrt:NorthAmericaMember2020-07-012020-12-310001262976cmpr:AllOtherBusinessesMembersrt:NorthAmericaMember2020-07-012020-12-310001262976srt:NorthAmericaMember2020-07-012020-12-310001262976srt:EuropeMembercmpr:VistaprintMember2020-07-012020-12-310001262976srt:EuropeMembercmpr:PrintBrothersMember2020-07-012020-12-310001262976srt:EuropeMembercmpr:ThePrintGroupMember2020-07-012020-12-310001262976srt:EuropeMembercmpr:NationalPenMember2020-07-012020-12-310001262976srt:EuropeMembercmpr:AllOtherBusinessesMember2020-07-012020-12-310001262976srt:EuropeMember2020-07-012020-12-310001262976cmpr:VistaprintMembercmpr:OtherContinentsMember2020-07-012020-12-310001262976cmpr:OtherContinentsMembercmpr:NationalPenMember2020-07-012020-12-310001262976cmpr:AllOtherBusinessesMembercmpr:OtherContinentsMember2020-07-012020-12-310001262976cmpr:OtherContinentsMember2020-07-012020-12-310001262976cmpr:VistaprintMemberus-gaap:IntersegmentEliminationMember2020-07-012020-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:PrintBrothersMember2020-07-012020-12-310001262976cmpr:ThePrintGroupMemberus-gaap:IntersegmentEliminationMember2020-07-012020-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:NationalPenMember2020-07-012020-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:AllOtherBusinessesMember2020-07-012020-12-310001262976cmpr:NationalPenMember2020-07-012020-12-310001262976cmpr:VistaprintMembersrt:NorthAmericaMember2019-10-012019-12-310001262976srt:NorthAmericaMembercmpr:PrintBrothersMember2019-10-012019-12-310001262976cmpr:ThePrintGroupMembersrt:NorthAmericaMember2019-10-012019-12-310001262976cmpr:NationalPenMembersrt:NorthAmericaMember2019-10-012019-12-310001262976cmpr:AllOtherBusinessesMembersrt:NorthAmericaMember2019-10-012019-12-310001262976srt:NorthAmericaMember2019-10-012019-12-310001262976srt:EuropeMembercmpr:VistaprintMember2019-10-012019-12-310001262976srt:EuropeMembercmpr:PrintBrothersMember2019-10-012019-12-310001262976srt:EuropeMembercmpr:ThePrintGroupMember2019-10-012019-12-310001262976srt:EuropeMembercmpr:NationalPenMember2019-10-012019-12-310001262976srt:EuropeMembercmpr:AllOtherBusinessesMember2019-10-012019-12-310001262976srt:EuropeMember2019-10-012019-12-310001262976cmpr:VistaprintMembercmpr:OtherContinentsMember2019-10-012019-12-310001262976cmpr:OtherContinentsMembercmpr:NationalPenMember2019-10-012019-12-310001262976cmpr:AllOtherBusinessesMembercmpr:OtherContinentsMember2019-10-012019-12-310001262976cmpr:OtherContinentsMember2019-10-012019-12-310001262976cmpr:VistaprintMemberus-gaap:IntersegmentEliminationMember2019-10-012019-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:PrintBrothersMember2019-10-012019-12-310001262976cmpr:ThePrintGroupMemberus-gaap:IntersegmentEliminationMember2019-10-012019-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:NationalPenMember2019-10-012019-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:AllOtherBusinessesMember2019-10-012019-12-310001262976cmpr:VistaprintMember2019-10-012019-12-310001262976cmpr:PrintBrothersMember2019-10-012019-12-310001262976cmpr:ThePrintGroupMember2019-10-012019-12-310001262976cmpr:NationalPenMember2019-10-012019-12-310001262976cmpr:AllOtherBusinessesMember2019-10-012019-12-310001262976cmpr:VistaprintMembersrt:NorthAmericaMember2019-07-012019-12-310001262976srt:NorthAmericaMembercmpr:PrintBrothersMember2019-07-012019-12-310001262976cmpr:ThePrintGroupMembersrt:NorthAmericaMember2019-07-012019-12-310001262976cmpr:NationalPenMembersrt:NorthAmericaMember2019-07-012019-12-310001262976cmpr:AllOtherBusinessesMembersrt:NorthAmericaMember2019-07-012019-12-310001262976srt:NorthAmericaMember2019-07-012019-12-310001262976srt:EuropeMembercmpr:VistaprintMember2019-07-012019-12-310001262976srt:EuropeMembercmpr:ThePrintGroupMember2019-07-012019-12-310001262976srt:EuropeMembercmpr:NationalPenMember2019-07-012019-12-310001262976srt:EuropeMembercmpr:AllOtherBusinessesMember2019-07-012019-12-310001262976srt:EuropeMember2019-07-012019-12-310001262976cmpr:OtherContinentsMembercmpr:NationalPenMember2019-07-012019-12-310001262976cmpr:AllOtherBusinessesMembercmpr:OtherContinentsMember2019-07-012019-12-310001262976cmpr:OtherContinentsMember2019-07-012019-12-310001262976cmpr:VistaprintMemberus-gaap:IntersegmentEliminationMember2019-07-012019-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:PrintBrothersMember2019-07-012019-12-310001262976cmpr:ThePrintGroupMemberus-gaap:IntersegmentEliminationMember2019-07-012019-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:AllOtherBusinessesMember2019-07-012019-12-310001262976us-gaap:IntersegmentEliminationMembercmpr:NationalPenMember2019-07-012019-12-310001262976cmpr:VistaprintMember2019-07-012019-12-310001262976cmpr:PrintBrothersMember2019-07-012019-12-310001262976cmpr:ThePrintGroupMember2019-07-012019-12-310001262976cmpr:NationalPenMember2019-07-012019-12-310001262976cmpr:AllOtherBusinessesMember2019-07-012019-12-310001262976us-gaap:CorporateAndOtherMember2020-10-012020-12-310001262976us-gaap:CorporateAndOtherMember2019-10-012019-12-310001262976us-gaap:CorporateAndOtherMember2020-07-012020-12-310001262976us-gaap:CorporateAndOtherMember2019-07-012019-12-310001262976cmpr:CertainimpairmentsDomain2020-10-012020-12-310001262976cmpr:CertainimpairmentsDomain2019-10-012019-12-310001262976cmpr:CertainimpairmentsDomain2020-07-012020-12-310001262976cmpr:CertainimpairmentsDomain2019-07-012019-12-310001262976country:US2020-12-310001262976country:US2020-06-300001262976country:NL2020-12-310001262976country:NL2020-06-300001262976country:CA2020-12-310001262976country:CA2020-06-300001262976country:CH2020-12-310001262976country:CH2020-06-300001262976country:IT2020-12-310001262976country:IT2020-06-300001262976country:JM2020-12-310001262976country:JM2020-06-300001262976country:AU2020-12-310001262976country:AU2020-06-300001262976country:FR2020-12-310001262976country:FR2020-06-300001262976country:JP2020-12-310001262976country:JP2020-06-300001262976cmpr:OtherCountriesMember2020-12-310001262976cmpr:OtherCountriesMember2020-06-300001262976cmpr:ThirdpartywebservicesDomain2020-12-310001262976cmpr:ProductionAndComputerEquipmentDomain2020-12-310001262976us-gaap:InventoriesMember2020-12-310001262976cmpr:AdvertisingPurchaseCommitmentMember2020-12-310001262976cmpr:ProfessionalFeesDomain2020-12-310001262976us-gaap:CommitmentsMember2020-12-310001262976us-gaap:SubsequentEventMember2021-01-062021-04-010001262976us-gaap:SubsequentEventMember2021-01-060001262976us-gaap:EmployeeSeveranceMember2020-06-300001262976us-gaap:OtherRestructuringMember2020-06-300001262976us-gaap:EmployeeSeveranceMember2020-07-012020-12-310001262976us-gaap:OtherRestructuringMember2020-07-012020-12-310001262976us-gaap:EmployeeSeveranceMember2020-12-310001262976us-gaap:OtherRestructuringMember2020-12-31







UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period endedDecember 31, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from               to               
Commission file number 000-51539
_________________________________
Cimpress plc

(Exact Name of Registrant as Specified in Its Charter)
_________________________________
Ireland98-0417483
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
Building D, Xerox Technology Park A91 H9N9,
Dundalk, Co. Louth
Ireland
(Address of Principal Executive Offices)
Registrant’s telephone number, including area code: 353 42 938 8500
Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s) Name of Exchange on Which Registered
Ordinary Shares, nominal value of €0.01 per shareCMPR NASDAQ Global Select Market
______________________________
    Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ     No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes þ     No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
  þ
Accelerated filerNon-accelerated filer
 Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o 
Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).  Yes      No þ
As of January 25, 2021, there were 26,003,676 Cimpress plc ordinary shares outstanding.




CIMPRESS PLC
QUARTERLY REPORT ON FORM 10-Q
For the Three and Six Months ended December 31, 2020

TABLE OF CONTENTS
Page
PART I FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheets as of December 31, 2020 and June 30, 2020
Consolidated Statements of Operations for the three and six months ended December 31, 2020 and 2019
Consolidated Statements of Comprehensive Income for the three and six months ended December 31, 2020 and 2019
Consolidated Statements of Shareholders' Equity (Deficit) for the three and six months ended December 31, 2020 and 2019
Consolidated Statements of Cash Flows for the six months ended December 31, 2020 and 2019
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
PART II OTHER INFORMATION
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
Signatures





PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
CIMPRESS PLC
CONSOLIDATED BALANCE SHEETS
(unaudited in thousands, except share and per share data)
December 31,
2020
June 30,
2020
Assets  
Current assets:  
Cash and cash equivalents$36,883 $45,021 
Accounts receivable, net of allowances of $10,797 and $9,651, respectively
51,404 34,596 
Inventory85,932 80,179 
Prepaid expenses and other current assets84,965 88,608 
Total current assets259,184 248,404 
Property, plant and equipment, net332,824 338,659 
Operating lease assets, net149,851 156,258 
Software and website development costs, net82,581 71,465 
Deferred tax assets146,814 143,496 
Goodwill726,813 621,904 
Intangible assets, net212,078 209,228 
Other assets20,368 25,592 
Total assets$1,930,513 $1,815,006 
Liabilities, noncontrolling interests and shareholders’ deficit  
Current liabilities:  
Accounts payable$236,540 $163,891 
Accrued expenses291,039 210,764 
Deferred revenue41,913 39,130 
Short-term debt12,603 17,933 
Operating lease liabilities, current38,315 41,772 
Other current liabilities40,966 13,268 
Total current liabilities661,376 486,758 
Deferred tax liabilities30,941 33,811 
Long-term debt1,258,535 1,415,657 
Operating lease liabilities, non-current122,006 128,963 
Other liabilities157,076 88,187 
Total liabilities2,229,934 2,153,376 
Commitments and contingencies (Note 13)
Redeemable noncontrolling interests65,510 69,106 
Shareholders’ deficit:  
Preferred shares, nominal value €0.01 per share, 100,000,000 shares authorized; none issued and outstanding  
Ordinary shares, nominal value €0.01 per share, 100,000,000 shares authorized; 44,080,627 shares issued; 26,003,649 and 25,885,675 shares outstanding, respectively
615 615 
Deferred ordinary shares, nominal value €1.00 per share, 25,000 shares authorized, issued and outstanding28 28 
Treasury shares, at cost, 18,076,978 and 18,194,952 shares, respectively
(1,368,723)(1,376,496)
Additional paid-in capital438,863 438,616 
Retained earnings638,883 618,437 
Accumulated other comprehensive loss(74,597)(88,676)
Total shareholders' deficit(364,931)(407,476)
Total liabilities, noncontrolling interests and shareholders’ deficit$1,930,513 $1,815,006 
See accompanying notes.
1


CIMPRESS PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited in thousands, except share and per share data)
 Three Months Ended December 31, Six Months Ended December 31,
 2020201920202019
Revenue$786,145 $820,333 $1,372,645 $1,454,292 
Cost of revenue (1)385,979 394,018 684,823 719,683 
Technology and development expense (1)65,036 64,427 123,525 127,594 
Marketing and selling expense (1)182,322 173,336 320,472 334,253 
General and administrative expense (1)42,979 51,910 84,791 95,533 
Amortization of acquired intangible assets13,453 13,150 26,758 26,168 
Restructuring expense (1)2,182 1,897 2,096 4,087 
Income from operations94,194 121,595 130,180 146,974 
Other (expense) income, net(17,198)(9,040)(25,952)6,634 
Interest expense, net(30,141)(15,701)(60,657)(30,788)
Income before income taxes46,855 96,854 43,571 122,820 
Income tax expense (benefit)12,954 (93,795)19,748 (87,680)
Net income33,901 190,649 23,823 210,500 
Add: Net income attributable to noncontrolling interest(1,614)(426)(2,291)(246)
Net income attributable to Cimpress plc$32,287 $190,223 $21,532 $210,254 
Basic net income per share attributable to Cimpress plc$1.24 $7.04 $0.83 $7.41 
Diluted net income per share attributable to Cimpress plc$1.22 $6.81 $0.82 $7.19 
Weighted average shares outstanding — basic26,003,649 27,036,675 25,974,823 28,391,855 
Weighted average shares outstanding — diluted26,384,460 27,916,759 26,390,273 29,223,116 
____________________________________________
(1) Share-based compensation is allocated as follows:
 Three Months Ended December 31, Six Months Ended December 31,
 2020201920202019
Cost of revenue$34 $97 $134 $185 
Technology and development expense1,215 2,043 3,406 3,777 
Marketing and selling expense754 533 2,439 (778)
General and administrative expense3,240 5,652 7,547 9,891 
Restructuring expense 108  772 

See accompanying notes.
2


CIMPRESS PLC
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited in thousands)
Three Months Ended December 31, Six Months Ended December 31,
2020201920202019
Net income$33,901 $190,649 $23,823 $210,500 
Other comprehensive income, net of tax:
Foreign currency translation gains, net of hedges13,946 3,180 14,763 1,620 
Net unrealized gains (losses) on derivative instruments designated and qualifying as cash flow hedges3,802 6,131 7,638 (1,057)
Amounts reclassified from accumulated other comprehensive (loss) income to net income on derivative instruments(3,226)(1,145)(5,297)3,006 
Loss on pension benefit obligation, net— — (336) 
Comprehensive income48,423 198,815 40,591 214,069 
Add: Comprehensive (income) loss attributable to noncontrolling interests(2,877)(1,122)(4,980)548 
Total comprehensive income attributable to Cimpress plc$45,546 $197,693 $35,611 $214,617 
See accompanying notes.
3


CIMPRESS PLC
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT)
(unaudited in thousands)
Ordinary SharesDeferred Ordinary SharesTreasury Shares
Number of
Shares
Issued
AmountNumber of
Shares
Issued
AmountNumber
of
Shares
AmountAdditional
Paid-in
Capital
Retained
Earnings
Accumulated Other
Comprehensive
Loss
Total
Shareholders’
Equity (Deficit)
Balance at June 30, 201944,080 $615 — $— (13,635)$(737,447)$411,079 $537,422 $(79,857)$131,812 
Restricted share units vested, net of shares withheld for taxes— — — — 4 87 (259)— — (172)
Grant of restricted share awards— — — — (2)(187)— — — (187)
Share-based compensation expense— — — — — — 5,164 — — 5,164 
Purchase of ordinary shares— — — — (1,964)(232,286)— — — (232,286)
Net income attributable to Cimpress plc— — — — — — — 20,031 — 20,031 
Adoption of new accounting standards— — — — — — — 3,143 — 3,143 
Net unrealized loss on derivative instruments designated and qualifying as cash flow hedges— — — — — — — — (3,037)(3,037)
Foreign currency translation, net of hedges— — — — — — — — (70)(70)
Balance at September 30, 201944,080 $615 — $— (15,597)$(969,833)$415,984 $560,596 $(82,964)$(75,602)
Restricted share units vested, net of shares withheld for taxes— — — — 1 55 (152)— — (97)
Issuance of ordinary shares due to share option exercises, net of shares withheld for taxes— — — — 1 8 (2)— — 6 
Issuance of deferred ordinary shares— — 25 28 — — — — — 28 
Share-based compensation expense— — — — — — 8,228 — — 8,228 
Purchase of ordinary shares— — — — (2,280)(305,287)— — — (305,287)
Net income attributable to Cimpress plc— — — — — — — 190,223 — 190,223 
Redeemable noncontrolling interest accretion to redemption value— — — — — — — (5,493)— (5,493)
Net unrealized gain on derivative instruments designated and qualifying as cash flow hedges— — — — — — — — 4,986 4,986 
Foreign currency translation, net of hedges— — — — — — — — 2,484 2,484 
Balance at December 31, 201944,080 $615 25 $28 (17,875)$(1,275,057)$424,058 $745,326 $(75,494)$(180,524)
See accompanying notes.


4




CIMPRESS PLC
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (CONTINUED)
(unaudited in thousands)
Ordinary SharesDeferred Ordinary SharesTreasury Shares
Number of
Shares
Issued
AmountNumber of
Shares
Issued
AmountNumber
of
Shares
AmountAdditional
Paid-in
Capital
Retained
Earnings
Accumulated Other
Comprehensive
Loss
Total
Shareholders’
Equity (Deficit)
Balance at June 30, 202044,080 $615 25 $28 (18,195)$(1,376,496)$438,616 $618,437 $(88,676)$(407,476)
Restricted share units vested, net of shares withheld for taxes— — — — 118 7,773 (13,366)— — (5,593)
Share-based compensation expense— — — — — — 8,577 — — 8,577 
Net loss attributable to Cimpress plc— — — — — — — (10,755)— (10,755)
Net unrealized gain on derivative instruments designated and qualifying as cash flow hedges— — — — — — — — 1,765 1,765 
Foreign currency translation, net of hedges— — — — — — — — (609)(609)
Unrealized loss on pension benefit obligation, net of tax— — — — — — — — (336)(336)
Balance at September 30, 202044,080 $615 25 $28 (18,077)$(1,368,723)$433,827 $607,682 $(87,856)$(414,427)
Share-based compensation expense— — — — — — 5,036 — — 5,036 
Net income attributable to Cimpress plc— — — — — — — 32,287 — 32,287 
Redeemable noncontrolling interest accretion to redemption value— — — — — — — (1,086)— (1,086)
Net unrealized gain on derivative instruments designated and qualifying as cash flow hedges— — — — — — — — 576 576 
Foreign currency translation, net of hedges— — — — — — — — 12,683 12,683 
Balance at December 31, 202044,080 $615 25 $28 (18,077)$(1,368,723)$438,863 $638,883 $(74,597)$(364,931)
See accompanying notes.
5


CIMPRESS PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited in thousands)

Six Months Ended December 31,
 20202019
Operating activities  
Net income$23,823 $210,500 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization85,887 84,891 
Share-based compensation expense13,526 13,847 
Deferred taxes2,681 (105,575)
Unrealized loss on derivatives not designated as hedging instruments included in net income32,545 7,548 
Effect of exchange rate changes on monetary assets and liabilities denominated in non-functional currency(3,132)1,359 
Other non-cash items4,829 3,045 
Changes in operating assets and liabilities: 
Accounts receivable(14,259)(8,240)
Inventory510 (10,680)
Prepaid expenses and other assets78 (2,255)
Accounts payable60,800 24,432 
Accrued expenses and other liabilities48,880 46,225 
Net cash provided by operating activities256,168 265,097 
Investing activities  
Purchases of property, plant and equipment(16,790)(28,094)
Business acquisitions, net of cash acquired(36,395)(4,272)
Capitalization of software and website development costs(26,445)(23,417)
Proceeds from the sale of assets3,372 847 
Other investing activities(419)1,120 
Net cash used in investing activities(76,677)(53,816)
Financing activities
Proceeds from borrowings of debt 301,000 634,085 
Payments of debt(472,469)(292,446)
Payments of debt issuance costs(1,051) 
Payments of purchase consideration included in acquisition-date fair value(648) 
Payments of withholding taxes in connection with equity awards(5,592)(462)
Payments of finance lease obligations(3,275)(5,364)
Purchase of noncontrolling interests(5,063) 
Purchase of ordinary shares (537,573)
Proceeds from issuance of ordinary shares— 6 
Distribution to noncontrolling interest(4,599)(3,921)
Other financing activities(57)(1,715)
Net cash used in financing activities(191,754)(207,390)
Effect of exchange rate changes on cash4,125 (2,253)
Net decrease in cash and cash equivalents(8,138)1,638 
Cash and cash equivalents at beginning of period45,021 35,279 
Cash and cash equivalents at end of period$36,883 $36,917 
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest$58,299 $33,313 
Income taxes4,991 5,183 
Non-cash investing and financing activities:
Property and equipment acquired under finance leases150 140 
Amounts accrued related to business acquisitions45,369 2,831 
See accompanying notes.
6


CIMPRESS PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited in thousands, except share and per share data)

1. Description of the Business
Cimpress is a strategically focused group of more than a dozen businesses that specialize in mass customization, via which we deliver large volumes of individually small-sized customized orders for a broad spectrum of print, signage, photo merchandise, invitations and announcements, writing instruments, packaging, apparel and other categories. We invest in and build customer-focused, entrepreneurial mass customization businesses for the long term, which we manage in a decentralized, autonomous manner. Mass customization is a core element of the business model of each Cimpress business. We drive competitive advantage across Cimpress through a select few shared strategic capabilities that have the greatest potential to create Cimpress-wide value. We limit all other central activities to only those which absolutely must be performed centrally.
2. Summary of Significant Accounting Policies
Basis of Presentation

The consolidated financial statements include the accounts of Cimpress plc, its wholly owned subsidiaries, entities in which we maintain a controlling financial interest, and those entities in which we have a variable interest and are the primary beneficiary. Intercompany balances and transactions have been eliminated. Investments in entities in which we cannot exercise significant influence, and the related equity securities do not have a readily determinable fair value, are accounted for using the cost method and are included in other assets on the consolidated balance sheets.
Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We believe our most significant estimates are associated with the ongoing evaluation of the recoverability of our long-lived assets and goodwill, estimated useful lives of assets, share-based compensation, accounting for business combinations, and income taxes and related valuation allowances, among others. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from those estimates.

Given the current and expected impact of the COVID-19 pandemic on our business, we evaluated our liquidity position as of the date of the issuance of these consolidated financial statements. Based on this evaluation, management believes, despite the ongoing impact of COVID-19 on our business, that our financial position, net cash provided by operations combined with our cash and cash equivalents and borrowing availability under our revolving credit facility, will be sufficient to fund our current obligations, capital spending, debt service requirements and working capital requirements over at least the next twelve months. For the debt covenants that have been temporarily suspended under the amendment and capital raise as described in Note 9, these covenants will be reinstated no later than the quarter ending December 31, 2021. Based on our current financial results and forecasted performance, we believe we will remain in compliance with these covenants upon reinstatement.
Significant Accounting Policies
Our significant accounting policies are described in Note 2 in our consolidated financial statements included in the Form 10-K for our year ended June 30, 2020. There have been no material changes to our significant accounting policies during the three and six months ended December 31, 2020.
7


Other (Expense) Income, Net
The following table summarizes the components of other (expense) income, net:
 Three Months Ended December 31, Six Months Ended December 31,
2020201920202019
(Losses) gains on derivatives not designated as hedging instruments (1) $(19,020)$(11,666)$(32,515)$7,691 
Currency-related gains (losses), net (2)1,809 2,645 5,884 (767)
Other gains (losses)13 (19)679 (290)
Total other (expense) income, net$(17,198)$(9,040)$(25,952)$6,634 
_____________________
(1) Primarily relates to both realized and unrealized gains and losses on derivative currency forward and option contracts not designated as hedging instruments, as well as certain interest rate swap contracts that have been de-designated from hedge accounting due to their ineffectiveness.
(2) We have significant non-functional currency intercompany financing relationships that we may change at times and are subject to currency exchange rate volatility. The currency-related gains (losses), net for the three and six months ended December 31, 2020 and 2019 are primarily driven by this intercompany activity. In addition, we have certain cross-currency swaps designated as cash flow hedges, which hedge the remeasurement of certain intercompany loans, both presented in the same component above. The unrealized losses related to cross-currency swaps were $6,085 and $11,522 for the three and six months ended December 31, 2020, respectively, as compared to unrealized losses of $2,858 and $1,820 for the three and six months ended December 31, 2019, respectively.
Net Income Per Share Attributable to Cimpress plc
Basic net income per share attributable to Cimpress plc is computed by dividing net income attributable to Cimpress plc by the weighted-average number of ordinary shares outstanding for the respective period. Diluted net income per share attributable to Cimpress plc gives effect to all potentially dilutive securities, including share options, restricted share units (“RSUs”), warrants, and performance share units ("PSUs"), if the effect of the securities is dilutive using the treasury stock method. Awards with performance or market conditions are included using the treasury stock method only if the conditions would have been met as of the end of the reporting period and their effect is dilutive.

The following table sets forth the reconciliation of the weighted-average number of ordinary shares:
 Three Months Ended December 31, Six Months Ended December 31,
 2020201920202019
Weighted average shares outstanding, basic26,003,649 27,036,675 25,974,823 28,391,855 
Weighted average shares issuable upon exercise/vesting of outstanding share options/RSUs/warrants380,811 880,084 415,450 831,261 
Shares used in computing diluted net income per share attributable to Cimpress plc26,384,460 27,916,759 26,390,273 29,223,116 
Weighted average anti-dilutive shares excluded from diluted net income per share attributable to Cimpress plc (1)3,129 — 1,565  
_____________________
(1) On May 1, 2020, we entered into a financing arrangement with Apollo Global Management, Inc., which included 7-year warrants with a strike price of $60 that have a potentially dilutive impact on our weighted average shares outstanding. For the three and six months ended December 31, 2020, the weighted average anti-dilutive effect of the warrants was 318,191 and 317,224 shares, respectively. Refer to Note 9 for additional details about the arrangement.
Recently Issued or Adopted Accounting Pronouncements
New Accounting Standards Adopted

In December 2019, the FASB issued Accounting Standards Update No. 2019-12 "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" (ASU 2019-12), which modifies certain aspects of income tax accounting. We early adopted the standard on July 1, 2020. For the six months ended December 31, 2020, adopting ASU 2019-12 resulted in a $2,771 increased tax expense in our consolidated financial statements, related to the intraperiod allocation rules. Under the intraperiod allocation rules, an entity generally allocates total income tax expense or benefit by first determining the amount attributable to continuing operations and then allocating the remaining tax expense or benefit to items other than continuing operations. An exception existed that required an
8


entity with a loss from continuing operations to consider all components when determining the benefit from continuing operations. ASU 2019-12 removes this exception.
In June 2016, the FASB issued Accounting Standards Update No. 2016-13 "Financial Instruments—Credit Losses (Topic 326)" (ASU 2016-13), which introduces a new accounting model for recognizing credit losses on certain financial instruments based on an estimate of current expected credit losses. We adopted the standard on its effective date of July 1, 2020. The standard did not have a material impact on our consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04 "Reference Rate Reform ("ASC 848"): Facilitation of the Effects of Reference Rate Reform on Financial Reporting", which contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. We elected to amend our hedge documentation, without dedesignating and redesignating, for all outstanding cash flow hedges by applying two practical expedients. We elected the expedient in ASC 848-50-25-2 to assert probability of the hedged interest payments regardless of any expected modification in terms related to reference rate reform. In addition, we elected to continue the method of assessing effectiveness as documented in the original hedge documentation and elect to apply the expedient in ASC 848-50-35-17, so that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. The standard did not have a material impact on our consolidated financial statements.

During the three months ended December 31, 2020, the tax on Global Intangible Low-Taxed Income (“GILTI”) provision of the Tax Cuts and Jobs Act became applicable to our operations. The FASB has provided that companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences, including outside basis differences, expected to reverse as GILTI. We elected to account for GILTI as a period cost, as incurred. We do not expect GILTI to have a material impact on our consolidated financial statements.
3. Fair Value Measurements
We use a three-level valuation hierarchy for measuring fair value and include detailed financial statement disclosures about fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:
Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:
9


 December 31, 2020
TotalQuoted Prices in
Active
Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets
Currency forward contracts$692 $— $692 $— 
Total assets recorded at fair value$692 $— $692 $— 
Liabilities
Interest rate swap contracts$(32,999)$— $(32,999)$— 
Cross-currency swap contracts(14,622)— (14,622)— 
Currency forward contracts(41,764)— (41,764)— 
Currency option contracts(4,274)— (4,274)— 
Total liabilities recorded at fair value$(93,659)$— $(93,659)$— 

 June 30, 2020
TotalQuoted Prices in
Active
Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets
Interest rate swap contracts$4,462 $— $4,462 $— 
Currency forward contracts7,949 — 7,949 — 
Currency option contracts1,429 — 1,429 — 
Total assets recorded at fair value$13,840 $— $13,840 $— 
Liabilities
Interest rate swap contracts$(39,520)$— $(39,520)$— 
Cross-currency swap contracts(4,746)— (4,746)— 
Currency forward contracts(8,519)— (8,519)— 
Currency option contracts(38)— (38)— 
Total liabilities recorded at fair value$(52,823)$— $(52,823)$— 
During the quarter ended December 31, 2020 and year ended June 30, 2020, there were no significant transfers in or out of Level 1, Level 2 and Level 3 classifications.
The valuations of the derivatives intended to mitigate our interest rate and currency risk are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each instrument. This analysis utilizes observable market-based inputs, including interest rate curves, interest rate volatility, or spot and forward exchange rates, and reflects the contractual terms of these instruments, including the period to maturity. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparties' nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements.
Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to appropriately reflect both our own nonperformance risk and the respective counterparties' nonperformance risk in the fair value measurement. However, as of December 31, 2020, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 in the fair value hierarchy.
10



As of December 31, 2020 and June 30, 2020, the carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable and other current liabilities approximated their estimated fair values. As of December 31, 2020 and June 30, 2020, the carrying value of our debt, excluding debt issuance costs and debt premiums and discounts, was $1,315,372 and $1,482,177, respectively, and the fair value was $1,358,180 and $1,450,719, respectively. Our debt at December 31, 2020 includes variable-rate debt instruments indexed to LIBOR that resets periodically, as well as fixed-rate debt instruments. The estimated fair value of our debt was determined using available market information based on recent trades or activity of debt instruments with substantially similar risks, terms and maturities, which fall within Level 2 under the fair value hierarchy. The estimated fair value of assets and liabilities disclosed above may not be representative of actual values that could have been or will be realized in the future.
4. Derivative Financial Instruments
We use derivative financial instruments, such as interest rate swap contracts, cross-currency swap contracts, and currency forward and option contracts, to manage interest rate and foreign currency exposures. Derivatives are recorded in the consolidated balance sheets at fair value. If the derivative is designated as a cash flow hedge or net investment hedge, then the change in the fair value of the derivative is recorded in accumulated other comprehensive loss and subsequently reclassified into earnings in the period the hedged forecasted transaction affects earnings. Additionally, any ineffectiveness associated with any effective and designated hedge is recognized within accumulated other comprehensive loss.
The change in the fair value of derivatives not designated as hedges is recognized directly in earnings as a component of other (expense) income, net.
Hedges of Interest Rate Risk
We enter into interest rate swap contracts to manage variability in the amount of our known or expected cash payments related to a portion of our debt. Our objective in using interest rate swaps is to add stability to interest expense and to manage our exposure to interest rate movements. We designate our interest rate swaps as cash flow hedges. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the contract agreements without exchange of the underlying notional amount. Realized gains or losses from interest rate swaps are recorded in earnings as a component of interest expense, net.
Amounts reported in accumulated other comprehensive loss related to interest rate swap contracts will be reclassified to interest expense, net as interest payments are accrued or made on our variable-rate debt. As of December 31, 2020, we estimate that $10,446 will be reclassified from accumulated other comprehensive loss to interest expense during the twelve months ending December 31, 2021. As of December 31, 2020, we had ten outstanding interest rate swap contracts indexed to USD LIBOR, of which six of these instruments were designated as cash flow hedges of interest rate risk and have varying start dates and maturity dates through September 2025. As of December 31, 2020, we have determined that four of our hedges are no longer highly effective. These de-designated hedges have varying start dates and maturity dates through December 2025.
Interest rate swap contracts outstanding:Notional Amounts
Contracts accruing interest as of December 31, 2020$500,000 
Contracts with a future start date50,000 
Total$550,000 
Hedges of Currency Risk
Cross-Currency Swap Contracts
From time to time, we execute cross-currency swap contracts designated as cash flow hedges or net investment hedges. Cross-currency swaps involve an initial receipt of the notional amount in the hedge currency in exchange for our reporting currency based on a contracted exchange rate. Subsequently, we receive fixed rate payments in our reporting currency in exchange for fixed rate payments in the hedged currency over the life of the
11


contract. At maturity, the final exchange involves the receipt of our reporting currency in exchange for the notional amount in the hedged currency.
Cross-currency swap contracts designated as cash flow hedges are execut