SFLY
$44.49
Shutterfly
($.23)
(.51%)
Earnings Details
2nd Quarter June 2016
Wednesday, July 27, 2016 4:02:02 PM
Tweet Share Watch
Summary

Shutterfly Narrows Guidance

Shutterfly (SFLY) reported a 2nd Quarter June 2016 loss of $0.48 per share on revenue of $204.0 million. The consensus estimate was a loss of $0.66 per share on revenue of $200.7 million. Revenue grew 10.9% on a year-over-year basis.

The company said it expects a third quarter loss of $0.97 to $0.90 per share on revenue of $179.2 million to $185.9 million. The current consensus estimate is a loss of $1.07 per share on revenue of $185.1 million for the quarter ending September 30, 2016. The company said it expects 2016 earnings of $0.31 to $0.58 per share on revenue of $1.13 billion to $1.16 billion. The company's previous guidance was earnings of $0.19 to $0.58 per share on revenue of $1.12 billion to $1.16 billion and the current consensus earnings estimate is $0.50 per share on revenue of $1.15 billion for the year ending December 31, 2016.

Shutterfly Inc manufacturers and digitally retails personalized products and services offered through a family of lifestyle brands.

Results
Reported Earnings
($0.48)
Earnings Whisper
-
Consensus Estimate
($0.66)
Reported Revenue
$204.0 Mil
Revenue Estimate
$200.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Shutterfly Announces Second Quarter 2016 Financial Results

Shutterfly Business Solutions segment revenues double year-over-year

Shutterfly, Inc. (SFLY), the leading manufacturer and digital retailer of high-quality personalized products and services offered through a family of lifestyle brands, today announced financial results for the second quarter ended June 30, 2016.

"We’re pleased with our second quarter results," said Christopher North, President and CEO. "Our performance was led by our flagship Shutterfly brand and continued strength in our SBS business. The team continues to make solid progress on Shutterfly 3.0, both in mobile and in migrating customers to the All New Shutterfly. Lastly, I’m delighted to have joined the Shutterfly team eight weeks ago, and look forward to working with the team as we enter the next phase of our growth."

Second Quarter 2016 Financial Highlights

Net revenues totaled $204.0 million, an 11% year-over-year increase. -- Consumer net revenues totaled $176.6 million, a 3% year-over-year increase.

Shutterfly Business Solutions net revenues totaled $27.4 million, a 117% year-over year increase.

Excluding a flash deal deferred revenue breakage catch-up in the second quarter of 2015, net revenues increased 16% year-over-year.

Excluding flash deal deferred revenue breakage in the second quarter of 2015, consumer net revenues increased 8% year-over-year.

Gross profit margin was 46.3% of net revenues, compared to 47.4% in the second quarter of 2015. -- Excluding the effect of the flash deal deferred revenue breakage in the second quarter of 2015, gross profit margin was up 110 basis points year-over-year.

Operating expenses totaled $115.4 million compared to $115.6 million in the second quarter of 2015. -- Excluding marketing expenses related to the flash deal deferred revenue breakage in the second quarter of 2015, total operating expenses increased 3% year-over-year.

Operating loss totaled $(21.1) million compared to a loss of $(28.4) million in the second quarter of 2015.

Net loss was $(16.5) million, compared to $(23.8) million in the second quarter of 2015.

Net loss per share was $(0.48), compared to $(0.63) in the second quarter of 2015.

Adjusted EBITDA was $18.2 million, compared to $15.6 million in the second quarter of 2015. Excluding the effect of the flash deal deferred revenue breakage in the second quarter of 2015 of $4 million, adjusted EBITDA increased 58%.

-- At June 30, 2016, cash and investments totaled $149.3 million.

In the second quarter of 2016, the Company repurchased 658,988 shares for $30.7 million, at an average price of $46.61 under its share repurchase program. As of June 30, 2016, $117.1 million remained authorized under the repurchase program.

Second Quarter 2016 Consumer Operating Metrics

Transacting customers totaled 3.3 million, an increase of 4% year-over-year.

-- Orders totaled 5.3 million, an increase of 5% year-over-year.

-- Average order value was $33.30, an increase of 2% year-over-year.

Business Outlook

Third Quarter 2016:

Net revenues to range from $179.2 million to $185.9 million, a year-over-year increase of 7.0% to 11.0%.

-- Gross profit margin to range from 36.7% to 37.8% of net revenues.

-- Operating loss to range from $(44.2) million to $(47.7) million.

-- Effective tax rate of 38.5%.

-- Net loss per share to range from $(0.90) to $(0.97).

-- Weighted average shares of approximately 34.0 million.

-- Adjusted EBITDA loss to range from $(1.0) million to $(4.0) million.

Full Year 2016:

Net revenues to range from $1.130 billion to $1.160 billion, a year-over-year increase of 6.7% to 9.5%.

-- Gross profit margin to range from 51.3% to 51.7% of net revenues.

-- Operating income to range from $40.8 million to $55.6 million.

-- Effective tax rate to range from 38.5% to 39.5%.

-- Net income per share to range from $0.31 to $0.58.

-- Weighted average shares of approximately 35.3 million.

Adjusted EBITDA to range from $210.0 million to $222.9 million, or 18.6% to 19.2% of net revenues.

Free cash flow, defined as adjusted EBITDA less capital expenditures, to range from $130.0 million to $132.9 million.

-- Capital expenditures to range from 7.1% to 7.8% of net revenues.

Notes to the Second Quarter 2016 Financial Results and Operating Metrics and 2016 Business Outlook

Adjusted EBITDA is a non-GAAP financial measure that the Company defines as earnings before interest, taxes, depreciation, amortization and stock-based compensation.

Free cash flow is a non-GAAP financial measure that the Company defines as adjusted EBITDA less purchases of property, plant, and equipment and capitalization of software development costs.

Consumer segment includes net revenues from stationery and greeting cards, photo books, calendars and photo-based merchandise, photo prints, and the related shipping revenues and rental revenue. Consumer also includes net revenues from advertising and sponsorship programs.

Shutterfly Business Solutions (SBS) includes net revenues primarily from variable, four-color direct marketing collateral manufactured and fulfilled for business customers.

Average Order Value (AOV) is defined as total net revenues (excluding SBS) divided by total orders.

The foregoing financial guidance replaces any of the Company’s previously issued financial guidance which should no longer be relied upon.

Second Quarter Conference Call

Management will review the second quarter 2016 financial results and its expectations for the third quarter and full year 2016 on a conference call on Wednesday, July 27, 2016 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). To listen to the call and view the accompanying slides, please visit http://www.shutterflyinc.com. In the Investor Relations area, click on the link provided for the webcast, or dial (888) 317-6003 or (412) 317-6061, and enter the conference access code 8724055. The webcast will be archived and available at http://www.shutterflyinc.com in the investor relations section. A replay of the conference call will be available through Wednesday, August 10, 2016. To hear the replay, please dial (877) 344-7529 or (412) 317-0088, and enter access code 10088423.

Non-GAAP Financial Information

This press release contains non-GAAP financial measures. Tables are provided at the end of this press release that reconcile the non-GAAP financial measures that the Company uses to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP gross profit margin, non-GAAP operating income (loss) and operating margin, adjusted EBITDA, and free cash flow. The method the Company uses to produce non-GAAP financial measures is not computed according to GAAP and may differ from methods used by other companies.

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 gross margins, operating income (loss), or net income (loss) determined in accordance with GAAP. For more information, please see Shutterfly’s SEC Filings, including the most recent Form 10-K and Form 10-Q, which are available on the Securities and Exchange Commission’s Web site at www.sec.gov.

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, that involve risks and uncertainties. These forward-looking statements include statements regarding the Company’s growth and financial expectations for the third quarter and full year 2016 set forth under the caption "Business Outlook," and statements about historical results that may suggest trends for our business. The Company’s actual results may differ materially from those anticipated in these forward-looking statements. Factors that might contribute to such differences include, among others, economic downturns and the general state of the economy; changes in consumer discretionary spending as a result of the macroeconomic environment; the loss of sales partners for our products; our ability to expand our customer base, increase sales to existing customers and meet production requirements; our ability to successfully integrate acquired businesses and assets; 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 develop and implement innovative, new products and services on a timely and cost-effective basis, including our next generation Shutterfly platform; consumer acceptance of our products and services; our ability to develop additional adjacent lines of business; unforeseen changes in expense levels; and competition and pricing strategies of our competitors, which could lead to pricing pressure. 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" section of the Company’s most recent Form 10-K and Form 10-Q, and the Company’s other filings, which are available on the Securities and Exchange Commission’s website at www.sec.gov. These forward-looking statements are based on current expectations and the Company assumes no obligation to update this information.

About Shutterfly, Inc.

Shutterfly, Inc. is the leading manufacturer and digital retailer of high-quality personalized products and services offered through a family of lifestyle brands. Founded in 1999, the Shutterfly, Inc. family of brands includes Shutterfly, where your photos come to life in photo books, cards and gifts; Tiny Prints, premium cards and stationery for all life’s occasions; Wedding Paper Divas, wedding invitations and stationery for every step of the planning process; MyPublisher, one of the pioneers in the photo book industry and creator of easy-to-use photo book-making software; BorrowLenses, the premier online marketplace for photographic and video equipment rentals; and GrooveBook, an iPhone and Android app and subscription service that prints up to 100 mobile phone photos in a GrooveBook and mails it to customers every month. For more information about Shutterfly, Inc. (SFLY), visit www.shutterflyinc.com.

Shutterfly, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2016
2015
2016
2015
Net revenues
$ 203,961
$ 183,879
$ 385,670
$ 343,857
Cost of net revenues
109,592
96,647
218,315
191,354
Gross profit
94,369
87,232
167,355
152,503
Operating expenses:
Technology and development
41,313
36,502
79,582
73,862
Sales and marketing
47,539
50,446
93,381
94,976
General and administrative
26,592
28,676
57,281
58,281
Total operating expenses
115,444
115,624
230,244
227,119
Loss from operations
(21,075 )
(28,392 )
(62,889 )
(74,616 )
Interest expense
(5,661 )
(4,985 )
(11,336 )
(9,721 )
Interest and other income, net
128
120
249
222
Loss before income taxes
(26,608 )
(33,257 )
(73,976 )
(84,115 )
Benefit from income taxes
10,123
9,480
28,055
15,235
Net loss
$ (16,485 )
$ (23,777 )
$ (45,921 )
$ (68,880 )
Net loss per share - basic and diluted
$
(0.48 )
$
(0.63 )
$
(1.34 )
$
(1.82 )
Weighted-average shares outstanding - basic and diluted
34,177
37,537
34,386
37,753
Stock-based compensation is allocated as follows:
Cost of net revenues
$
1,081
$
1,001
$
2,305
$
2,193
Technology and development
2,512
3,309
2,971
5,301
Sales and marketing
3,754
5,654
8,033
11,873
General and administrative
3,577
6,351
7,765
14,708
$
10,924
$
16,315
$
21,074
$
34,075
Depreciation and amortization is allocated as follows:
Cost of net revenues
$
13,842
$
12,697
$
27,384
$
25,376
Technology and development
8,430
8,010
16,823
15,840
Sales and marketing
3,694
4,779
8,409
9,681
General and administrative
2,391
2,220
4,855
4,403
$
28,357
$
27,706
$
57,471
$
55,300
Shutterfly, Inc.
Consolidated Balance Sheets
(In thousands, except par value amounts)
(Unaudited)
June 30,
December 31,
2016
2015
ASSETS
Current assets:
Cash and cash equivalents
$
99,249
$
288,863
Short-term investments
31,564
22,918
Accounts receivable, net
28,946
55,222
Inventories
11,515
13,466
Prepaid expenses and other current assets
67,595
31,828
Total current assets
238,869
412,297
Long-term investments
18,504
29,005
Property and equipment, net
267,846
281,779
Intangible assets, net
51,763
62,323
Goodwill
408,975
408,975
Other assets
12,838
10,948
Total assets
$ 998,795
$ 1,205,327
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
11,642
$
35,329
Accrued liabilities
71,522
149,134
Deferred revenue, current portion
25,243
27,329
Total current liabilities
108,407
211,792
Convertible senior notes, net
271,476
264,361
Other liabilities
110,078
123,112
Total liabilities
489,961
599,265
Stockholders’ equity:
Common stock, $0.0001 par value; 100,000 shares authorized; 33,950
3
4
and 34,777 shares issued and outstanding on June 30, 2016 and
December 31, 2015, respectively
Additional paid-in capital
926,956
900,218
Accumulated other comprehensive income (loss)
60
(68 )
Accumulated deficit
(418,185 )
(294,092 )
Total stockholders’ equity
508,834
606,062
Total liabilities and stockholders’ equity
$ 998,795
$ 1,205,327
Shutterfly, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2016
2015
Cash flows from operating activities:
Net loss
$ (45,921 )
$ (68,880 )
Adjustments to reconcile net loss to net cash used in operating
activities:
Depreciation and amortization
46,278
40,881
Amortization of intangible assets
11,193
14,419
Amortization of debt discount and transaction costs
7,115
6,728
Stock-based compensation
21,074
34,075
Loss on disposal of property and equipment
324
498
Deferred income taxes
(3,567 )
(6,623 )
Tax benefit from stock-based compensation
4,021
13,986
Excess tax benefits from stock-based compensation
(5,233 )
(14,372 )
Changes in operating assets and liabilities:
Accounts receivable
26,277
6,962
Inventories
1,951
2,552
Prepaid expenses and other assets
(34,045 )
(20,563 )
Accounts payable
(18,970 )
(17,753 )
Accrued and other liabilities
(77,504 )
(77,470 )
Net cash used in operating activities
(67,007 )
(85,560 )
Cash flows from investing activities:
Purchases of property and equipment
(33,067 )
(28,935 )
Capitalization of software and website development costs
(18,083 )
(9,297 )
Purchases of investments
(15,936 )
(4,400 )
Proceeds from the maturities of investments
17,890
32,358
Proceeds from sale of property and equipment
10,247
265
Net cash used in investing activities
(38,949 )
(10,009 )
Cash flows from financing activities:
Proceeds from issuance of common stock upon exercise of stock options
685
2,312
Repurchases of common stock
(78,172 )
(87,757 )
Excess tax benefits from stock-based compensation
5,233
14,372
Principal payments of capital lease and financing obligations
(11,404 )
(5,347 )
Prepayment of accelerated share repurchase
--
(75,000 )
Net cash used in financing activities
(83,658 )
(151,420 )
Net decrease in cash and cash equivalents
(189,614 )
(246,989 )
Cash and cash equivalents, beginning of period
288,863
380,543
Cash and cash equivalents, end of period
$
99,249
$ 133,554
Supplemental schedule of non-cash investing / financing
activities:
Net increase (decrease) in accrued purchases of property and
$
(5,565 )
$
2,242
equipment
Net increase in accrued capitalized software and website development
137
161
costs
Stock-based compensation capitalized with software and website
959
673
development costs
Increase in estimated fair market value of buildings under
--
16,414
build-to-suit leases
Property and equipment acquired under capital leases
--
21,640
Shutterfly, Inc.
Consumer Metrics Disclosure
Three Months Ended
June 30,
2016
2015
Consumer Metrics
Customers
3,259,915
3,134,346
year-over-year growth
4 %
Orders
5,303,137
5,038,421
year-over-year growth
5 %
Average order value*
$33.30
$32.50
year-over-year growth
2 %
* Average order value excludes Shutterfly Business Solutions
revenue. AOV for the second quarter of 2015 excluded a flash deal
deferred revenue breakage catch-up.
Shutterfly, Inc.
Segment Disclosure
(In thousands)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2016
2015
2016
2015
Consumer
Net revenues
$ 176,617
$ 171,274
$ 331,998
$ 320,062
Cost of net revenues
85,276
83,387
171,613
164,165
Gross profit
91,341
87,887
160,385
155,897
Consumer gross profit margin
51.7
%
51.3
%
48.3
%
48.7
%
Shutterfly Business Solutions (SBS)
Net revenues
27,344
12,605
53,672
23,795
Cost of net revenues
21,810
10,245
41,520
20,133
Gross profit
5,534
2,360
12,152
3,662
SBS gross profit margin
20.2
%
18.7
%
22.6
%
15.4
%
Corporate (1)
Net revenues
--
--
--
--
Cost of net revenues
2,506
3,015
5,182
7,056
Gross profit
(2,506 )
(3,015 )
(5,182 )
(7,056 )
Consolidated
Net revenues
203,961
183,879
385,670
343,857
Cost of net revenues
109,592
96,647
218,315
191,354
Gross profit
$
94,369
$
87,232
$ 167,355
$ 152,503
Gross profit margin
46.3
%
47.4
%
43.4
%
44.4
%
(1) Corporate category includes activities that are not directly
attributable or allocable to a specific segment. This category
consists of stock-based compensation and amortization of
intangible assets.
Shutterfly, Inc.
Reconciliation of GAAP Gross Profit Margin to Non-GAAP Gross
Profit Margin
(In thousands)
(Unaudited)
Three Months Ended
Year Ended
Mar. 31,
Jun. 30,
Sep. 30,
Dec. 31,
Mar. 31,
Jun. 30,
Dec. 31,
2015
2015
2015
2015
2016
2016
2015
GAAP gross profit
$ 65,271
$ 87,232
$ 59,501
$ 319,347
$ 72,986
$ 94,369
$ 531,351
Stock-based compensation
1,192
1,001
952
989
1,224
1,081
4,134
Amortization of intangible assets
2,849
2,014
1,713
1,526
1,452
1,424
8,102
Non-GAAP gross profit
$ 69,312
$ 90,247
$ 62,166
$ 321,862
$ 75,662
$ 96,874
$ 543,587
Non-GAAP gross profit margin
43
%
49
%
37
%
59
%
42
%
47
%
51
%
Shutterfly, Inc.
Reconciliation of GAAP Operating Margin to Non-GAAP Operating
Margin
(In thousands)
(Unaudited)
Three Months Ended
Year Ended
Mar. 31,
Jun. 30,
Sep. 30,
Dec. 31,
Mar. 31,
Jun. 30,
Dec. 31,
2015
2015
2015
2015
2016
2016
2015
GAAP operating income (loss)
$ (46,224 )
$ (28,392 )
$ (49,066 )
$ 141,947
$ (41,814 )
$ (21,075 )
$
18,265
Stock-based compensation
17,760
16,315
15,756
10,627
10,150
10,924
60,458
Amortization of intangible assets
7,684
6,735
6,379
6,252
6,119
5,074
27,050
Non-GAAP operating income (loss)
$ (20,780 )
$
(5,342 )
$ (26,931 )
$ 158,826
$ (25,545 )
$
(5,077 )
$ 105,773
Non-GAAP operating margin
(13
)%
(3
)%
(16
)%
29
%
(14
)%
(2
)%
10
%
Shutterfly, Inc.
Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA
(In thousands)
(Unaudited)
Three Months Ended
Year Ended
Mar. 31,
Jun. 30,
Sep. 30,
Dec. 31,
Mar. 31,
Jun. 30,
Dec. 31,
2015
2015
2015
2015
2016
2016
2015
GAAP net income (loss)
$ (45,103 )
$ (23,777 )
$ (63,077 )
$ 131,114
$ (29,436 )
$ (16,485 )
$
(843 )
Interest expense
4,736
4,985
5,613
5,664
5,675
5,661
20,998
Interest and other income, net
(102 )
(120 )
(433 )
(89 )
(121 )
(128 )
(744 )
Tax (benefit) provision
(5,755 )
(9,480 )
8,831
5,258
(17,932 )
(10,123 )
(1,146 )
Depreciation and amortization
27,593
27,707
28,933
29,044
29,114
28,357
113,277
Stock-based compensation
17,760
16,315
15,756
10,627
10,150
10,924
60,458
Non-GAAP Adjusted EBITDA
$
(871 )
$
15,630
$
(4,377 )
$ 181,618
$
(2,550 )
$
18,206
$ 192,000
Shutterfly, Inc.
Reconciliation of Cash Flow from Operating Activities to
Non-GAAP Adjusted EBITDA
(In thousands)
(Unaudited)
Three Months Ended
Year Ended
Mar. 31,
Jun. 30,
Sep. 30,
Dec. 31,
Mar. 31,
Jun. 30,
Dec. 31,
2015
2015
2015
2015
2016
2016
2015
Net cash provided by (used in) operating activities
$ (107,731 )
$
22,171
$ (22,140 )
$ 272,737
$ (83,923 )
$ 16,916
$ 165,037
Interest expense
4,736
4,985
5,613
5,664
5,675
5,661
20,998
Interest and other income, net
(102 )
(120 )
(433 )
(89 )
(121 )
(128 )
(744 )
Tax (benefit) provision
(5,755 )
(9,480 )
8,831
5,258
(17,932 )
(10,123 )
(1,146 )
Changes in operating assets and liabilities
113,075
(6,803 )
134
(87,013 )
99,917
2,374
19,393
Other adjustments
(5,094 )
4,877
3,618
(14,939 )
(6,166 )
3,506
(11,538 )
Non-GAAP Adjusted EBITDA
(871 )
15,630
(4,377 )
181,618
(2,550 )
18,206
192,000
(13,978 )
(17,199 )
(15,117 )
(12,972 )
(5,497 )
(22,005 )
(59,266 )
Less: Purchases of property and equipment
Less: Capitalized technology & development costs
(4,072 )
(5,386 )
(6,353 )
(6,302 )
(8,168 )
(10,052 )
(22,113 )
Add: Capex adjustments [1]
--
--
--
--
--
9,827
--
Free cash flow
$
(18,921 )
$
(6,955 )
$ (25,847 )
$ 162,344
$ (16,215 )
$ (4,024 )
$ 110,621
[1] In the second quarter of 2016, the Company acquired and
immediately sold $9.8 million of printers.
Shutterfly, Inc.
Reconciliation of Forward-Looking Guidance for Non-GAAP
Financial Measures to GAAP Measures
(In millions, except per share amounts)
Forward-Looking Guidance
Three Months Ending
Twelve Months Ending
September 30, 2016
December 31, 2016
Low
High
Low
High
Net revenues
$179.2
$185.9
$1,130.0
$1,160.0
GAAP gross profit margin
36.7 %
37.8 %
51.3 %
51.7 %
GAAP operating income (loss)
($47.7 )
($44.2 )
$40.8
$55.6
GAAP operating margin
(26.6 %)
(23.8 %)
3.6 %
4.8 %
GAAP operating income (loss)
($47.7 )
($44.2 )
$40.8
$55.6
Stock-based compensation
$13.0
$12.5
$48.9
$47.0
Amortization of intangible assets
$4.6
$4.6
$20.1
$20.1
Depreciation
$26.1
$26.1
$100.2
$100.2
Adjusted EBITDA
($4.0 )
($1.0 )
$210.0
$222.9
Adjusted EBITDA margin
(2.2 %)
(0.5 %)
18.6 %
19.2 %
Capital expenditures*
$80.0
$90.0
Capital expenditures as % of net revenues
7.1 %
7.8 %
Free cash flow**
$130.0
$132.9
Free cash flow as % of net revenues
11.5 %
11.5 %
Tax rate
38.5 %
38.5 %
39.5 %
38.5 %
Net income (loss) per share
Basic
($0.97 )
($0.90 )
--
--
Diluted
--
--
$0.31
$0.58
Weighted average shares
Basic
34.0
34.0
--
--
Diluted
--
--
35.3
35.3
* Excludes $9.8 million related to printers that were acquired and
then immediately sold in the second quarter of 2016
** Free cash flow is defined as adjusted EBITDA less capital
expenditures

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160727006283r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160727006283/en/

SOURCE: Shutterfly, Inc.

Shutterfly, Inc.
Investor Relations:
Shawn Tabak, 650-610-6026
stabak@shutterfly.com
or
Media Relations:
Gretchen Sloan, 650-610-5276
gsloan@shutterfly.com