Books endure. We discard newspapers the day after, magazines stick around a bit longer, junk mail not at all, but books we keep. After we read a book, we shelve them, we show off our book collection as backdrops in our Zoom calls, we stack books in corners, we store them in boxes, we might drop them off at a used bookstore, we might even make books into works of art, but we almost never just toss them out. Printed books endure. Book printing company Grafica Veneta, located in the Italian province of Padua, a half hour drive from the causeway to Venice, announced the acquisition of a majority ownership stake in Lake Book Manufacturing. The acquired company is close by Chicago’s O’Hare airport, likely an enabling factor in the decision by an Italian book manufacturer to invest in a US-based partner. The owner of Lake Book, Dan Genovese, noted that his family’s Italian heritage also played a part in the decision to seek and accept an international investment in the company, especially one based in Italy. Both companies are positioned to manufacture a wide range of book products for the publishing trade, with capabilities ranging from one-color to full-color text, paperback and hardcover editions, along with fully decorated book jackets.
Our financial results in Q1 FY2021 were strong despite the continued negative impact of the pandemic on our business. Compared to Q4 FY2020 revenue grew, and the rate of year-over-year revenue decline improved sequentially, with reported revenue and organic constant-currency revenue down 7% and 10%, respectively. Our profitability was strong, with operating income and adjusted EBITDA up 42% and 11% year-over-year, respectively, as a result of continued efficiency improvements and recent cost reductions. Cash flow from operations and adjusted free cash flow were up 68% and 128% year over year, respectively, and we repaid $84 million of debt.
Our reported revenue and organic constant-currency revenue declined 7% and 10%, respectively, in Q1. The pandemic continues to negatively impact our revenue results, but the year-over-year decline was less severe in Q1 compared to Q4 across all segments
Q1 FY2021 GAAP operating income increased $10.6 million year over year to $36.0 million. The negative revenue impact of the pandemic was offset by variable cost controls, advertising efficiency and fixed cost savings. We also had a year-over-year decrease in restructuring charges of $2.3 million. Our GAAP operating income benefited from about $4.0 million of COVID-19-related government incentives, primarily to offset wages for manufacturing and customer service team members in countries where demand decreased but roles were maintained.
details at: https://ir.cimpress.com/static-files/40a10154-4649-4010-9752-a21b4680f535