Apr 28, 2015
1-800-FLOWERS.COM, Inc. Reports Results For Continuing Operations For Its Fiscal 2015 Third Quarter
- Revenues grew 29.3 percent to $232.2 million, primarily reflecting
contributions from Harry & David, which the Company acquired in
September 2014.
- Adjusted EBITDA*, excluding stock-based compensation, was a loss of
$4.1 million, reflecting the seasonality of Harry & David. Excluding
Harry & David, Adjusted EBITDA increased 95.3 percent to $6.5 million.
- Adjusted EPS* was a loss of $0.13 per share, reflecting the Harry &
David seasonality. Excluding Harry & David, Adjusted EPS increased
$0.03 per share to $0.01 per diluted share.
- Company raises its guidance for Fiscal 2015 Adjusted EBITDA and
Adjusted EPS.
(*Adjusted EBITDA, Adjusted EPS and Adjusted Net Loss exclude
one-time costs associated with the integration of Harry & David and the
impact of the Fannie May warehouse fire.)
CARLE PLACE, N.Y.--(BUSINESS WIRE)--
1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), the world’s leading florist and
gift shop, today reported revenues from continuing operations grew 29.3
percent to $232.2 million for its fiscal 2015 third quarter, ended March
29, 2015, compared with revenues from continuing operations of $179.6
million in the prior year period. The Company said the increase in
revenues primarily reflected contributions from Harry & David which the
Company acquired on September 30, 2014. Total revenues also grew,
excluding Harry & David, reflecting solid growth in the Company’s
Gourmet Food and Gift Baskets and BloomNet segments, somewhat offset by
modestly lower revenues in the Company’s Consumer Floral segment due to
the Saturday placement of the Valentine holiday.
Gross profit margin for the third quarter was 41.0 percent, consistent
with the prior year period. Operating expense ratio was 48.0 percent, up
540 basis points, compared with 42.6 percent in the prior year period,
primarily reflecting increased operating expenses associated with Harry
& David.
Adjusted EBITDA for the quarter, excluding stock-based compensation, was
a loss of $4.1 million, compared with $3.3 million in the prior year
period, reflecting the seasonal losses associated with Harry & David.
Excluding Harry & David, Adjusted EBITDA, excluding stock-based
compensation, increased 95.3 percent to $6.5 million, reflecting
contributions from the Company’s Gourmet Foods and Gift Baskets segment
and continued strong year-over-year performance in its Consumer Floral
segment. Adjusted Net Loss* from continuing operations attributable to
the Company was $8.5 million, or ($0.13) per share, compared with a net
loss of $1.4 million, or ($0.02) per share in the prior year period.
Excluding Harry & David, Adjusted Net Income* attributable to the
Company and Adjusted EPS from continuing operations was $342,000 and
$0.01 per diluted share, respectively.
Reported EBITDA loss, excluding stock-based compensation, was $6.8
million, compared with $3.3 million in the prior year period. Reported
net loss from continuing operations attributable to the Company was
$10.5 million, or ($0.16) per share, compared with a net loss of $1.4
million, or ($0.02) per share in the prior year period.
Jim McCann, CEO of 1-800-FLOWERS.COM, said, “During the fiscal third
quarter, we saw solid performance across all of our business segments
while facing a number of headwinds, most notably the significant
seasonality of the Harry & David business, the Saturday placement of the
Valentine holiday and the lingering impacts of the Thanksgiving Day fire
on our Fannie May Fine Chocolates business. Regarding Harry & David,
during the third quarter, while the business generated an anticipated
loss, we were pleased to see year-over-year improvements in both top and
bottom-line results. As we continue our integration of Harry & David, we
plan to build on this by leveraging our business platform, our growing
family of gift brands and the millions of customers we serve across all
of our business channels.” McCann noted that, excluding Harry & David,
the Company’s Gourmet Foods and Gift Baskets segment achieved strong top
and bottom-line growth during the quarter.
McCann also noted that the Company’s was pleased with the performance of
its consumer floral business. “Valentine’s Day is always challenging
because of its varying day placement and unpredictable winter weather.
With that said, we achieved year-over-year growth in our gross profit
margin and bottom-line contribution as we were able to largely mitigate
the modestly lower order volumes related to the Saturday placement. We
believe these results reflect the strength of the 1-800-FLOWERS.COM
brand and the expansion of our leadership position in the floral gifting
space.”
During the fiscal third quarter, the Company attracted 815,000 new
customers. Approximately 1.9 million customers placed orders during the
quarter, of whom 56.4 percent were repeat customers. This reflects the
Company’s successful efforts to engage with its customers with truly
original product designs and relevant marketing programs designed to
deepen its relationships as their trusted Florist and Gift Shop for all
of their celebratory occasions.
The Company provides selected financial results for its Consumer Floral,
BloomNet wire service and Gourmet Foods and Gift Baskets business
segments in the tables attached to this release and as follows:
SEGMENT RESULTS FROM CONTINUING OPERATIONS:
- 1-800-FLOWERS.COM Consumer Floral: During
the fiscal 2015 third quarter, revenues in this segment were $116.7
million, down 4.5 percent, compared with $122.3 million in the prior
year period reflecting the Saturday placement of the Valentine holiday
during the quarter. Gross margin increased 30 basis points to 39.2
percent, compared with 38.9 percent in the prior year period. Gross
margin benefited from enhanced sourcing and logistics as well as
strong customer service metrics. Combined with efficient marketing
programs, these factors resulted in a contribution margin increase of
12.5 percent to $12.6 million, compared with $11.2 million in the
prior year period.
- BloomNet Wire Service: Revenues for the
quarter were $23.0 million, up 1.7 percent compared with $22.6 million
in the prior year period. Gross margin for the quarter increased 150
basis points to 54.8 percent, compared with 53.3 percent in the prior
year period, reflecting revenue mix, which included growth in sales of
higher-margin services, such as web-marketing and directory
advertising programs as well as pricing initiatives. As a result of
these factors, segment contribution margin increased to $7.3 million,
compared with $7.1 million in the prior year period.
- Gourmet Food and Gift Baskets: Revenues
for the fiscal third quarter were $93.0 million, compared with $35.3
million in the prior year period. The significant increase primarily
reflects the contributions from Harry & David. Excluding Harry &
David, revenues grew at a double-digit pace, primarily reflecting
benefits from the Easter holiday day placement early in the Company’s
fourth quarter which resulted in some sales being captured at the end
of its fiscal third quarter. Gross margin for the quarter increased 90
basis points to 39.6 percent, compared with 38.7 percent in the prior
year period. Segment contribution margin was a loss of $5.4 million,
compared with a loss of $3.2 million in the prior year period,
primarily reflecting the seasonality of the Harry & David business.
Excluding Harry & David’s contribution loss of $4.9 million, and
adjusting for the impact of the Fannie May warehouse fire on
Thanksgiving Day, 2014, segment contribution margin increased to
$400,000.
Company Guidance:
The Company’s guidance for fiscal 2015 includes contributions from the
addition of the Harry & David business, which it acquired on September
30, 2014.
-
Regarding total net revenues for fiscal 2015, the Company continues to
anticipate generating revenues from continuing operations in excess of
$1.1 billion.
-
In terms of bottom-line results, based on its results through the
first nine months of fiscal 2015, the Company is raising its guidance
for Adjusted EBITDA, excluding stock-based compensation, which it now
anticipates will exceed $90 million for the full fiscal year, and for
Adjusted EPS, which it now anticipates will exceed the high end of its
previous guidance range of $0.45-to-$0.50 per diluted share.
The Company noted that its fiscal 2015 guidance for top and bottom-line
results does not include Harry & David’s results for the fiscal first
quarter of the year which is typically their lowest in terms of revenues
and includes a substantial bottom-line loss.
Definitions:
* EBITDA: Net income (loss) before interest, taxes, depreciation,
amortization. Free Cash Flow: net cash provided by operating activities
less capital expenditures. Category contribution margin: earnings before
interest, taxes, depreciation and amortization, before the allocation of
corporate overhead expenses. The Company presents EBITDA, Adjusted
EBITDA from continuing operations and Free Cash Flow because it
considers such information meaningful supplemental measures of its
performance and believes such information is frequently used by the
investment community in the evaluation of similarly situated companies.
The Company also uses EBITDA and Adjusted EBITDA as factors used to
determine the total amount of incentive compensation available to be
awarded to executive officers and other employees. The Company's credit
agreement uses EBITDA and Adjusted EBITDA to measure compliance with
covenants such as interest coverage and debt incurrence. EBITDA and
Adjusted EBITDA are also used by the Company to evaluate and price
potential acquisition candidates. EBITDA, Adjusted EBITDA and Free Cash
Flow have limitations as analytical tools and should not be considered
in isolation or as a substitute for analysis of the Company's results as
reported under GAAP. Some of the limitations of EBITDA and Adjusted
EBITDA are: (a) EBITDA and Adjusted EBITDA do not reflect changes in, or
cash requirements for, the Company's working capital needs; (b) EBITDA
and Adjusted EBITDA do not reflect the significant interest expense, or
the cash requirements necessary to service interest or principal
payments, on the Company's debts; and (c) although depreciation and
amortization are non-cash charges, the assets being depreciated and
amortized may have to be replaced in the future and EBITDA does not
reflect any cash requirements for such capital expenditures. EBITDA and
Free Cash Flow should only be used on a supplemental basis combined with
GAAP results when evaluating the Company's performance.
About 1-800-FLOWERS.COM,
Inc.
1-800-FLOWERS.COM,
Inc. is the world’s leading florist and gift shop. For more than 38
years, 1-800-FLOWERS® (1-800-356-9377 or www.1800flowers.com) has
been helping deliver smiles for our customers with gifts for every
occasion, including fresh flowers and the finest selection of plants,
gift baskets, gourmet foods, confections, candles, balloons and plush
stuffed animals. As always, our 100% Smile Guarantee® backs every gift. 1-800-FLOWERS.COM was
named a winner of the 2015 “Best Companies to Work for in New York
State” award by The New York Society for Human Resource Management
(NYS-SHRM). 1-800-FLOWERS.COM was
awarded the 2014 Silver Stevie Award, recognizing the organization's
outstanding Customer Service and commitment to our 100% Smile
Guarantee®. 1-800-FLOWERS.COM received
a Gold Award for Best User Experience on a Mobile Optimized Site for
the 2013 Horizon
Interactive Awards. The Company’s BloomNet® international floral
wire service (www.mybloomnet.net) provides
a broad range of quality products and value-added services designed to
help professional florists grow their businesses profitably. The 1-800-FLOWERS.COM “Gift
Shop” also includes gourmet gifts such as premium, gift-quality fruits
and other gourmet items from Harry & David® (1-877-322-1200 or www.harryanddavid.com), popcorn
and specialty treats from: The Popcorn Factory® (1-800-541-2676 or www.thepopcornfactory.com); cookies
and baked gifts from Cheryl’s® (1-800-443-8124 or www.cheryls.com); premium
chocolates and confections from Fannie May® (www.fanniemay.com and www.harrylondon.com); gift
baskets and towers from 1-800-Baskets.com® (www.1800baskets.com); carved
fresh fruit arrangements from FruitBouquets.com (www.fruitbouquets.com); top
quality steaks and chops from Stock Yards® (www.stockyards.com); as
well as premium branded customizable invitations and personal stationery
from FineStationery.com®(www.finestationery.com). The
Company’s Celebrations® brand (www.celebrations.com) is
a source for creative party ideas, must-read articles, online
invitations and e-cards, all created to help people celebrate holidays
and the everyday. Shares in 1-800-FLOWERS.COM, Inc.
are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.
Special Note Regarding Forward Looking Statements:
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements represent the Company's current expectations
or beliefs concerning future events and can generally be identified by
the use of statements that include words such as "estimate," "expects,"
"project," "believe," "anticipate," "intend," "plan," "foresee,"
"likely," "will," or similar words or phrases. These forward-looking
statements are subject to risks, uncertainties and other factors, many
of which are outside of the Company's control, which could cause actual
results to differ materially from the results expressed or implied in
the forward- looking statements, including, among others: the Company's
ability to achieve its reiterated guidance for revenue and its raised
guidance for Adjusted EBITDA and Adjusted EPS for fiscal year 2015; its
ability to manage the significantly increased seasonality of its
business; its ability to cost effectively acquire and retain customers;
the outcome of contingencies, including legal proceedings in the normal
course of business; its ability to manage expenses associated with sales
and marketing and necessary general and administrative and technology
investments and general consumer sentiment and economic conditions that
may affect levels of discretionary customer purchases of the Company's
products. The Company undertakes no obligation to publicly update any of
the forward-looking statements, whether as a result of new information,
future events or otherwise, made in this release or in any of its SEC
filings except as may be otherwise stated by the Company. For a more
detailed description of these and other risk factors, and a list of
definitions of non-GAAP terms, including EBITDA and Free Cash Flow,
among others, please refer to the Company's SEC filings including the
Company's Annual Reports on Form 10-K and its Quarterly Reports on Form
10-Q. Consequently, you should not consider any such list to be a
complete set of all potential risks and uncertainties.
Conference Call:
The Company will conduct a conference call to discuss the results for
its fiscal 2015 third quarter today, Tuesday, April 28, 2015 at 11:00 am
EDT. The call will be web cast live via the Internet and can be accessed
from the Investor Relations section of the 1-800-FLOWERS.COM, Inc.
website at www.1800flowersinc.com.
A recording of the call will be posted on the Investor Relations section
of the Company's website within two hours of the live call's completion.
A telephonic replay of the call can be accessed for 48 hours beginning
at 2:00 pm EDT on the day of the call at 1-855-859-2056 or
1-404-537-3406 (international); enter conference ID: 27458954.
Note: The following attached tables are an integral part of this
press release without which the information presented in this press
release should be considered incomplete.
|
|
1-800-FLOWERS.COM, Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
(In thousands)
|
|
|
|
|
|
|
| March 29,
2015 |
|
|
|
| June 29,
2014 |
| | | | | | | | | |
|
| Assets | | | | | (unaudited) | | | | | |
|
Current assets:
| | | | | | | | | | |
|
Cash and cash equivalents
| | | | | $52,721 | | | | | $5,203 |
|
Receivables, net
| | | | |
31,493
| | | | |
13,339
|
|
Insurance receivable
| | | | |
1,477
| | | | |
-
|
|
Inventories
| | | | |
82,350
| | | | |
58,520
|
|
Deferred tax assets
| | | | |
6,898
| | | | |
5,156
|
|
Prepaid and other
| | | | |
14,953
| | | | |
9,600
|
|
Total current assets
| | | | |
189,892
| | | | |
91,818
|
| | | | | | | | | |
|
|
Property, plant and equipment, net
| | | | |
152,081
| | | | |
60,147
|
|
Goodwill
| | | | |
99,690
| | | | |
60,166
|
|
Other intangibles, net
| | | | |
58,489
| | | | |
44,616
|
|
Deferred tax assets
| | | | |
-
| | | | |
2,002
|
|
Other assets
| | | | |
13,005
| | | | |
8,820
|
|
Total assets
| | | | | $513,157 | | | | | $267,569 |
| | | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | | |
|
Current liabilities:
| | | | | | | | | | |
|
Accounts payable
| | | | | $33,245 | | | | | $24,447 |
|
Accrued expenses
| | | | |
94,546
| | | | |
49,517
|
|
Current maturities of long-term debt
| | | | |
14,509
| | | | |
343
|
|
Total current liabilities
| | | | |
142,300
| | | | |
74,307
|
| | | | | | | | | |
|
|
Long-term debt
| | | | |
121,125
| | | | |
-
|
|
Deferred tax liabilities
| | | | |
21,204
| | | | |
649
|
|
Other liabilities
| | | | |
8,542
| | | | |
6,495
|
|
Total liabilities
| | | | |
293,171
| | | | |
81,451
|
|
Total 1-800-FLOWERS.COM, Inc. stockholders' equity
| | | | |
217,944
| | | | |
183,199
|
|
Noncontrolling interest in subsidiary
| | | | |
2,042
| | | | |
2,919
|
|
Total equity
| | | | |
219,986
| | | | |
186,118
|
|
Total liabilities and equity
| | | | | $513,157 | | | | | $267,569 |
| | | | | | | | | |
|
|
|
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected
Financial Information
Condensed Consolidated
Statements of Income
(Unaudited, in thousands, except for
per share data)
|
|
|
|
|
| Three Months Ended |
|
|
|
| Nine Months Ended |
| | | March 29,
2015 |
|
| March 30,
2014 | | | | | March 29,
2015 |
|
| March 30,
2014 |
|
Net revenues:
| | | | | | | | | | | | | | |
|
E-commerce (combined online and telephonic)
| | | $177,903 | | | $139,918 | | | | | $671,023 | | | $400,893 |
|
Other
| | |
54,334
| | |
39,673
| | | | |
222,192
| | |
168,083
|
|
Total net revenues
| | |
232,237
| | |
179,591
| | | | |
893,215
| | |
568,976
|
|
Cost of revenues
| | |
136,915
| | |
106,048
| | | | |
504,155
| | |
333,159
|
|
Gross profit
| | |
95,322
| | |
73,543
| | | | |
389,060
| | |
235,817
|
|
Operating expenses:
| | | | | | | | | | | | | | |
|
Marketing and sales
| | |
70,574
| | |
51,581
| | | | |
228,172
| | |
143,716
|
|
Technology and development
| | |
10,389
| | |
6,045
| | | | |
25,318
| | |
16,762
|
|
General and administrative
| | |
22,772
| | |
13,865
| | | | |
61,998
| | |
41,944
|
|
Depreciation and amortization
| | |
7,825
| | |
4,932
| | | | |
21,605
| | |
14,657
|
|
Total operating expenses
| | |
111,560
| | |
76,423
| | | | |
337,093
| | |
217,079
|
|
Operating income (loss)
| | |
(16,238)
| | |
(2,880)
| | | | |
51,967
| | |
18,738
|
|
Interest expense and other, net
| | |
1,631
| | |
249
| | | | |
5,022
| | |
959
|
|
Income (loss) from continuing operations before income taxes
| | |
(17,869)
| | |
(3,129)
| | | | |
46,945
| | |
17,779
|
|
Income tax expense (benefit) from continuing operations
| | |
(7,056)
| | |
(1,391)
| | | | |
16,796
| | |
6,590
|
|
Income (loss) from continuing operations
| | |
(10,813)
| | |
(1,738)
| | | | |
30,149
| | |
11,189
|
|
Income from discontinued operations, net of tax
| | |
-
| | |
13
| | | | |
-
| | |
434
|
|
Net income (loss)
| | | $(10,813) | | | $(1,725) | | | | | $30,149 | | | $11,623 |
|
Less: Net loss attributable to noncontrolling interest
| | |
(318)
| | |
(300)
| | | | |
(877)
| | |
(341)
|
|
Net income (loss) attributable to 1-800-FLOWERS.COM, Inc.
| | | $(10,495) | | | $(1,425) | | | | | $31,026 | | | $11,964 |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
Basic net income (loss) per common share attributable to 1-800-
FLOWERS.COM, Inc.
| | | | | | | | | | | | | | |
|
From continuing operations
| | | $(0.16) | | | $(0.02) | | | | | $0.48 | | | $0.18 |
|
From discontinued operations
| | |
$-
| | | $0.00 | | | | |
$-
| | | $0.01 |
|
Basic net income per common share
| | | $(0.16) | | | $(0.02) | | | | | $0.48 | | | $0.19 |
| | | | | | | | | | | | | |
|
Diluted net income (loss) per common share attributable to 1-800-
FLOWERS.COM, Inc.
| | | | | | | | | | |
| | |
|
|
From continuing operations
| | | $(0.16) | | | $(0.02) | | | | | $0.46 | | | $0.17 |
|
From discontinued operations
| | |
$-
| | | $0.00 | | | | |
$-
| | | $0.01 |
|
Diluted net income per common share
| | | $(0.16) | | | $(0.02) | | | | | $0.46 | | | $0.18 |
| | | | | | | | | | | | | |
|
|
Weighted average shares used in the calculation of net income per
common share
| | | | | | | | | | | | | | |
|
Basic
| | |
64,909
| | |
64,214
| | | | |
64,433
| | |
64,010
|
|
Diluted
| | |
64,909
| | |
64,214
| | | | |
67,134
| | |
66,429
|
| | | | | | | | | | | | | |
|
|
|
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected
Financial Information
Condensed Consolidated
Statements of Cash Flows
(Unaudited, in thousands)
|
|
|
|
|
|
| Nine Months Ended |
| | | | March 29,
2015 |
|
| March 30,
2014 |
| | | | | | |
|
| Operating activities | | | | | | | |
|
Net income
| | | | $30,149 | | | $11,623 |
Reconciliation of net income to net cash provided by operating
activities, net of
acquisitions:
| | | | | | | |
|
Operating activities of discontinued operations
| | | |
-
| | |
869
|
|
Gain on sale of discontinued operations
| | | |
-
| | |
(815)
|
|
Depreciation and amortization
| | | |
21,605
| | |
14,657
|
|
Amortization of deferred financing costs
| | | |
1,076
| | |
229
|
|
Deferred income taxes
| | | |
(4,071)
| | |
(1,376)
|
|
Non-cash impact of write-offs related to warehouse fire
| | | |
29,522
| | |
-
|
|
Insurance proceeds for warehouse fire related to property damage
| | | |
30,000
| | |
-
|
|
Acquisition transaction costs
| | | |
925
| | |
-
|
|
Bad debt expense
| | | |
1,170
| | |
1,027
|
|
Stock based compensation
| | | |
4,405
| | |
3,491
|
|
Other non-cash items
| | | |
748
| | |
433
|
|
Other non-cash items:
| | | | | | | |
|
Receivables
| | | |
(36,647)
| | |
(5,492)
|
|
Insurance receivable
| | | |
(1,477)
| | |
-
|
|
Inventories
| | | |
37,448
| | |
(5,585)
|
|
Prepaid and other
| | | |
7,489
| | |
4,162
|
|
Accounts payable and accrued expenses
| | | |
14,967
| | |
197
|
|
Other assets
| | | |
(1,026)
| | |
(274)
|
|
Other liabilities
| | | |
679
| | |
426
|
| | | | | | |
|
Net cash provided by operating activities | | | |
136,962
| | |
23,572
|
| | | | | | |
|
| Investing activities | | | | | | | |
|
Acquisitions, net of cash acquired
| | | |
(133,117)
| | |
(1,385)
|
|
Capital expenditures
| | | |
(20,946)
| | |
(14,458)
|
|
Investing activities of discontinued operations
| | | |
-
| | |
500
|
|
Other
| | | |
642
| | |
18
|
| | | | | | |
|
| Net cash used in investing activities | | | |
(153,421)
| | |
(15,325)
|
| | | | | | |
|
| Financing activities | | | | | | | |
|
Acquisition of treasury stock
| | | |
(5,730)
| | |
(7,423)
|
|
Proceeds from exercise of employee stock options
| | | |
5,303
| | |
334
|
|
Proceeds from bank borrowings
| | | |
239,500
| | |
120,000
|
|
Repayment of bank borrowings
| | | |
(169,567)
| | |
(120,002)
|
|
Debt issuance costs
| | | |
(5,642)
| | |
-
|
|
Other
| | | |
113
| | |
4
|
| | | | | | |
|
| Net cash provided by (used in) financing activities | | | |
63,977
| | |
(7,087)
|
| | | | | | |
|
|
Net change in cash and equivalents
| | | |
47,518
| | |
1,160
|
|
Cash and equivalents:
| | | | | | | |
|
Beginning of period
| | | |
5,203
| | |
154
|
|
End of period
| | | | $52,721 | | | $1,314 |
| | | | | | |
|
|
|
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected
Financial Information - Segment Information
(Unaudited,
in thousands)
|
|
|
|
| Three Months Ended |
| | March 29,
2015 |
| Impact of
Warehouse
Fire |
| Impact of
Acquisition Costs |
| Impact of Integration and
Severance Costs |
| Adjusted
March 29,
2015 |
| March 30,
2014 |
| % Change |
| Net revenues from continuing operations: | | |
| |
| |
| |
| |
| |
| |
|
1-800-Flowers.com Consumer Floral
| | $116,705 | |
$-
| |
$-
| |
$-
| | $116,705 | | $122,256 | |
-4.5%
|
|
BloomNet Wire Service
| |
22,950
| |
100
| |
-
| |
-
| |
23,050
| |
22,571
| |
2.1%
|
|
Gourmet Food & Gift Baskets
| |
92,951
| |
3,338
| |
-
| |
-
| |
96,289
| |
35,330
| |
172.5%
|
|
Corporate
| |
283
| |
-
| |
-
| |
-
| |
283
| |
202
| |
40.1%
|
|
Intercompany eliminations
| |
(652)
|
|
-
|
|
-
|
|
-
|
|
(652)
|
|
(768)
| |
15.1%
|
| Total net revenues from continuing operations | | $232,237 |
| $3,438 |
|
$-
|
|
$-
|
| $235,675 |
| $179,591 | |
31.2%
|
| | | | | | | | | | | | | |
|
| | Three Months Ended |
| | March 29,
2015 |
| Impact of
Warehouse
Fire |
| Impact of
Acquisition Costs |
| Impact of Integration and
Severance Costs |
| Adjusted
March 29,
2015 |
| March 30,
2014 |
| % Change |
| | | | | | | | | | | | | |
|
| Gross profit from continuing operations: | | | | | | | | | | | | | | |
|
1-800-Flowers.com Consumer Floral
| | $45,716 | |
$-
| |
$-
| |
$-
| | $45,716 | | $47,565 | |
-3.9%
|
| |
39.2%
| |
-
| |
-
| |
-
| |
39.2%
| |
38.9%
| | |
|
BloomNet Wire Service
| |
12,574
| |
20
| |
-
| |
-
| |
12,594
| |
12,019
| |
4.8%
|
| |
54.8%
| |
-
| |
-
| |
-
| |
54.6%
| |
53.3%
| | |
|
Gourmet Food & Gift Baskets
| |
36,846
| |
888
| |
-
| |
-
| |
37,734
| |
13,686
| |
175.7%
|
| |
39.6%
| |
-
| |
-
| |
-
| |
39.2%
| |
38.7%
| | |
|
Corporate (*)
| |
186
| |
-
| |
-
| |
-
| |
186
| |
273
| |
-31.9%
|
| |
65.7%
|
|
-
|
|
-
|
|
-
|
|
65.7%
|
|
135.1%
| | |
| Total gross profit from continuing operations | | $95,322 |
| $908 |
|
$-
|
|
$-
|
| $96,230 |
| $73,543 | |
30.8%
|
| |
41.0%
|
|
26.4%
|
|
0.0%
|
|
0.0%
|
|
40.8%
|
|
41.0%
| | |
| | | | | | | | | | | | | |
|
| | Three Months Ended |
EBITDA from continuing operations, excluding stock- based compensation
| | March 29,
2015 |
| Impact of
Warehouse
Fire |
| Impact of
Acquisition Costs |
| Impact of Integration and
Severance Costs |
| Adjusted
March 29,
2015 |
| March 30,
2014 |
| % Change |
| Category Contribution Margin from continuing operations: | | | | | | | | | | | | | | |
|
1-800-Flowers.com Consumer Floral
| | $12,557 | |
$-
| |
$-
| |
$-
| | $12,557 | | $11,165 | |
12.5%
|
|
BloomNet Wire Service
| |
7,290
| |
20
| |
-
| |
-
| |
7,310
| |
7,079
| |
3.3%
|
|
Gourmet Food & Gift Baskets
| |
(5,413)
|
|
955
|
|
-
|
|
-
|
|
(4,458)
|
|
(3,180)
| |
-40.2%
|
|
Category Contribution Margin Subtotal
| |
14,434
| |
975
| |
-
| |
-
| |
15,409
| |
15,064
| |
2.3%
|
|
Corporate (*)
| |
(22,847)
|
|
-
|
|
-
|
|
1,730
|
|
(21,117)
|
|
(13,012)
| |
-62.3%
|
| EBITDA from continuing operations | | $(8,413) | | $975 | |
$-
| | $1,730 | | $(5,708) | | $2,052 | |
-378.2%
|
| | | | | | | | | | | | | |
|
|
Add: Stock-based compensation
| |
1,623
|
|
-
|
|
-
|
|
-
|
|
1,623
|
|
1,279
| |
26.9%
|
| EBITDA from continuing operations, excluding stock-based
compensation | | $(6,790) |
| $975 |
|
$-
|
| $1,730 |
| $(4,085) |
| $3,331 | |
-222.6%
|
| | | | | | | | | | | | | |
|
|
|
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected
Financial Information - Segment Information (continued)
(Unaudited,
in thousands)
|
|
|
|
| Nine Months Ended |
| | March 29,
2015 |
| Impact of
Warehouse
Fire |
| Impact of Purchase
Accounting Adjustment to
Deferred
Revenue |
| Impact of Purchase
Accounting Adjustment for |
Inventory
Fair Value Step-Up |
| Impact of
Acquisition Costs |
| Impact of
Integration and
Severance
Costs |
| Adjusted
March 29,
2015 |
| March
30, 2014 |
| %
Change |
| Net revenues from continuing operations: | | |
| |
| |
| |
| |
| |
| |
| |
| |
|
1-800-Flowers.com Consumer Floral
| | $290,703 | |
$-
| |
$-
| |
$-
| |
$-
| |
$-
| | $290,703 | | $290,938 | |
-0.1%
|
|
BloomNet Wire Service
| |
63,071
| |
350
| |
-
| |
-
| |
-
| |
-
| |
63,421
| |
62,829
| |
0.9%
|
|
Gourmet Food & Gift Baskets
| |
539,979
| |
16,934
| |
1,621
| |
-
| |
-
| |
-
| |
558,534
| |
216,193
| |
158.3%
|
|
Corporate
| |
795
| |
-
| |
-
| |
-
| |
-
| |
-
| |
795
| |
600
| |
32.5%
|
|
Intercompany eliminations
| |
(1,333)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,333)
|
|
(1,584)
| |
15.8%
|
| Total net revenues from continuing operations | | $893,215 |
| $17,284 |
| $1,621 |
|
$-
|
|
$-
|
|
$-
|
| $912,120 |
| $568,976 | |
60.3%
|
| | | | | | | | | | | | | | | | | |
|
| | Nine Months Ended |
| | March 29,
2015 |
| Impact of
Warehouse
Fire |
| Impact of Purchase
Accounting Adjustment to
Deferred
Revenue |
| Impact of Purchase Accounting
Adjustment for
Inventory Fair
Value Step-Up |
| Impact of
Acquisition Costs |
| Impact of
Integration and
Severance
Costs |
| Adjusted
March 29,
2015 |
| March 30,
2014 |
| %
Change |
| Gross profit from continuing operations: | | | | | | |
| | | | | | | | | | | |
|
1-800-Flowers.com Consumer Floral
| | $113,027 | |
$-
| |
$-
| |
$-
| |
$-
| |
$-
| | $113,027 | | $113,166 | |
-0.1%
|
| |
38.9%
| |
-
| |
-
| |
-
| |
-
| |
-
| |
38.9%
| |
38.9%
| | |
|
BloomNet Wire Service
| |
34,725
| |
70
| |
-
| |
-
| |
-
| |
-
| |
34,795
| |
33,566
| |
3.7%
|
| |
55.1%
| |
-
| |
-
| |
-
| |
-
| |
-
| |
54.9%
| |
53.4%
| | |
|
Gourmet Food & Gift Baskets
| |
240,645
| |
6,745
| |
1,621
| |
4,760
| |
-
| |
-
| |
253,771
| |
88,328
| |
187.3%
|
| |
44.6%
| |
-
| |
-
| |
-
| |
-
| |
-
| |
45.4%
| |
40.9%
| | |
|
Corporate (*)
| |
663
| |
-
| |
-
| |
-
| |
-
| |
-
| |
663
| |
757
| |
-12.4%
|
| |
83.4%
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
83.4%
|
|
126.2%
| | |
| Total gross profit from continuing operations | | $389,060 |
| $6,815 |
| $1,621 |
| $4,760 |
|
$-
|
|
$-
|
| $402,256 |
| $235,817 | |
70.6%
|
| |
43.6%
|
|
39.4%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
44.1%
|
|
41.4%
| | |
| | | | | | | | | | | | | | | | | |
|
| | Nine Months Ended |
| EBITDA from continuing operations, excluding stock- based
compensation | | March 29,
2015 |
| Impact of
Warehouse
Fire |
| Impact of Purchase
Accounting Adjustment to
Deferred
Revenue |
| Impact of Purchase
Accounting Adjustment for
Inventory
Fair Value Step-Up |
| Impact of
Acquisition Costs |
| Impact of
Integration and
Severance
Costs |
| Adjusted
March 29,
2015 |
| March 30,
2014 |
| %
Change |
| Category Contribution Margin from continuing operations: | | | | | | | | |
| | | | | | | | | |
|
1-800-Flowers.com Consumer Floral
| | $29,334 | |
$-
| |
$-
| |
$-
| |
$-
| |
$-
| | $29,334 | | $26,274 | |
11.6%
|
|
BloomNet Wire Service
| |
20,455
| |
70
| |
-
| |
-
| |
-
| |
-
| |
20,525
| |
20,043
| |
2.4%
|
|
Gourmet Food & Gift Baskets
| |
82,607
|
|
6,486
|
|
1,621
|
|
4,760
|
|
-
|
|
-
|
|
95,474
|
|
25,817
| |
269.8%
|
|
Category Contribution Margin Subtotal
| |
132,396
| |
6,556
| |
1,621
| |
4,760
| |
-
| |
-
| |
145,333
| |
72,134
| |
101.5%
|
|
Corporate (*)
| |
(58,824)
| |
-
| |
-
| |
-
| |
4,062
| |
2,135
| |
(52,627)
| |
(38,739)
| |
-35.9%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
| EBITDA from continuing operations | | $73,572 | | $6,556 | | $1,621 | | $4,760 | | $4,062 | | $2,135 | | $92,706 | | $33,395 | |
177.6%
|
| | | | | | | | | | | | | | | | | |
|
|
Add: Stock-based compensation
| |
4,405
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,405
|
|
3,491
| |
26.2%
|
| EBITDA from continuing operations, excluding stock-based
compensation | | $77,977 |
| $6,556 |
| $1,621 |
| $4,760 |
| $4,062 |
| $2,135 |
| $97,111 |
| $36,886 | |
163.3%
|
| | | | | | | | | | | | | | | | | | |
|
|
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected
Financial Information - Appendix A – Reconciliations of Historical
Information
(Unaudited, in thousands)
|
|
|
|
| Three Months Ended |
|
| Nine Months Ended |
Reconciliation of net income (loss) from continuing operations
to adjusted net | | |
| | | | |
| |
income (loss) from continuing operations attributable to 1-800- | | | | | | | | | |
FLOWERS.COM, Inc.: | | March 29,
2015 |
| March 30,
2014 | | | March 29,
2015 | | March 30,
2014 |
| | | | | | | | |
|
|
Income (loss) from continuing operations
| | $(10,813) | | $(1,738) | | | $30,149 | | $11,189 |
|
Less: Net loss attributable to noncontrolling interest
| |
(318)
|
|
(300)
| | |
(877)
| |
(341)
|
| Income (loss) from continuing operations attributable to
1-800-FLOWERS.COM, Inc. | |
(10,495)
| |
(1,438)
| | |
31,026
| |
11,530
|
|
Add: Impact of warehouse fire, net of tax
| |
726
| |
-
| | |
4,253
| |
-
|
|
Add: Purchase accounting adjustment to deferred revenue, net of tax
| |
-
| |
-
| | |
1,052
| |
-
|
|
Add: Purchase accounting adjustment for inventory fair value
step-up, net of tax
| |
-
| |
-
| | |
3,088
| |
-
|
|
Add: Integration and severance costs, net of tax
| |
1,236
| |
-
| | |
1,385
| |
-
|
|
Add: Acquisition costs, net of tax
| |
77
|
|
-
| | |
2,636
| |
-
|
| Adjusted income (loss) from continuing operations attributable to
1-800-FLOWERS.COM, Inc. | | $(8,456) | | $(1,438) | | | $43,440 | | $11,530 |
|
Less: Income (loss) attributable to Harry & David
| |
(8,798)
|
|
-
| | |
29,707
| |
-
|
Adjusted income (loss) from continuing operations attributable
to 1-800- | | | | | | | | | |
FLOWERS.COM, Inc., excluding income (loss) attributable to
Harry & David | | $342 |
| $(1,438) | | | $13,733 | | $11,530 |
| | | | | | | | |
|
| | | | | | | | |
|
| Income (loss) per common share from continuing operations
attributable to 1-800-FLOWERS.COM, Inc. | | | | | | | | | |
|
Basic
| | $(0.16) |
| $(0.02) | | | $0.48 | | $0.18 |
|
Diluted
| | $(0.16) |
| $(0.02) | | | $0.46 | | $0.17 |
| | | | | | | | |
|
| Adjusted net income (loss) per common share from continuing
operations attributable to 1-800-FLOWERS.COM, Inc. | | | | | | | | | |
|
Basic
| | $(0.13) |
| $(0.02) | | | $0.67 | | $0.18 |
|
Diluted
| | $(0.13) |
| $(0.02) | | | $0.65 | | $0.17 |
| | | | | | | | |
|
Adjusted net income (loss) per common share from continuing
operations | | | | | | | | | |
attributable to 1-800-FLOWERS.COM, Inc. , excluding income
(loss) | | | | | | | | | |
attributable to Harry & David | | | | | | | | | |
|
Basic
| | $0.01 |
| $(0.02) | | | $0.21 | | $0.18 |
|
Diluted
| | $0.01 |
| $(0.02) | | | $0.20 | | $0.17 |
| | | | | | | | |
|
Weighted average shares used in the calculation of net income
(loss) and adjusted | | | | | | | | | |
net income (loss) per common share from continuing operations
attributable to | | | | | | | | | |
1-800-FLOWERS.COM, Inc. | | | | | | | | | |
|
Basic
| |
64,909
|
|
64,214
| | |
64,433
| |
64,010
|
|
Diluted
| |
67,571
|
|
64,214
| | |
67,134
| |
66,429
|
|
|
|
|
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected
Financial Information -- Appendix A – Reconciliations of
Historical Information (continued)
(Unaudited, in
thousands)
|
|
| |
| |
|
| |
|
| |
| | Three Months Ended | | | Nine Months Ended |
Reconciliation of income (loss) from continuing operations
attributable to | | | | | | | | | | |
1-800-Flowers.com, Inc. to Adjusted EBITDA from Continuing
Operations, | | | | | | | | | | |
excluding stock-based compensation(**) and EBITDA attributable
to Harry & David: | | March 29,
2015 |
| March 30,
2014 | | | March 29,
2015 | | | March 30,
2014 |
| | | | | | | | | |
|
|
Income (loss) from continuing operations attributable to
1-800-FLOWERS.COM, Inc.
| | $(10,495) | | $(1,438) | | | $31,026 | | | $11,530 |
|
Add:
| | | | | | | | | | |
|
Interest expense and other, net
| |
1,631
| |
249
| | |
5,022
| | |
959
|
|
Depreciation and amortization
| |
7,825
| |
4,932
| | |
21,605
| | |
14,657
|
|
Income tax expense
| |
-
| |
-
| | |
16,796
| | |
6,590
|
|
Less:
| | | | | | | | | | |
|
Net loss attributable to noncontrolling interest
| |
318
| |
300
| | |
877
| | |
341
|
|
Income tax benefit
| |
7,056
|
|
1,391
| | |
-
| | |
-
|
|
EBITDA from continuing operations
| |
(8,413)
| |
2,052
| | |
73,572
| | |
33,395
|
| | | | | | | | | |
|
|
Add: Stock-based compensation
| |
1,623
|
|
1,279
| | |
4,405
| | |
3,491
|
| EBITDA from continuing operations, excluding stock-based
compensation | |
(6,790)
| |
3,331
| | |
77,977
| | |
36,886
|
| | | | | | | | | |
|
|
Add: Impact of warehouse fire
| |
975
| |
-
| | |
6,556
| | |
-
|
|
Add: Purchase accounting adjustment to deferred revenue, net of tax
| |
-
| |
-
| | |
1,621
| | |
-
|
|
Add: Purchase accounting adjustment for inventory fair value step-up
| |
-
| |
-
| | |
4,760
| | |
-
|
|
Add: Acquisition costs
| |
-
| |
-
| | |
4,062
| | |
-
|
|
Add: Integration and severance costs
| |
1,730
|
|
-
| | |
2,135
| | |
-
|
| Adjusted EBITDA from continuing operations, excluding stock-based
compensation | | $(4,085) | | $3,331 | | | $97,111 | | | $36,886 |
|
Less: EBITDA attributable to Harry & David
| |
(10,591)
|
|
-
| | |
53,912
| | |
-
|
Adjusted EBITDA from continuing operations, excluding
stock-based | | | | | | | | | | |
compensation and EBITDA attributable to Harry & David | | $6,506 |
| $3,331 | | | $43,199 | | | $36,886 |
|
|
|
| |
|
(*)
| |
Corporate expenses consist of the Company’s enterprise shared
service cost centers, and include, among other items, Information
Technology, Human Resources, Accounting and Finance, Legal,
Executive and Customer Service Center functions, as well as
Stock-Based Compensation. In order to leverage the Company’s
infrastructure, these functions are operated under a centralized
management platform, providing support services throughout the
organization. The costs of these functions, other than those of the
Customer Service Center, which are allocated directly to the above
categories based upon usage, are included within corporate expenses
as they are not directly allocable to a specific segment.
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Performance is measured based on segment contribution margin or
segment Adjusted EBITDA, reflecting only the direct controllable
revenue and operating expenses of the segments. As such,
management’s measure of profitability for these segments does not
include the effect of corporate overhead, described above,
depreciation and amortization, other income (net), nor does it
include one-time charges or gains. Management utilizes EBITDA, and
adjusted financial information, as a performance measurement tool
because it considers such information a meaningful supplemental
measure of its performance and believes it is frequently used by the
investment community in the evaluation of companies with comparable
market capitalization. The Company also uses EBITDA and adjusted
financial information as one of the factors used to determine the
total amount of bonuses available to be awarded to executive
officers and other employees. The Company’s credit agreement uses
EBITDA and adjusted financial information to measure compliance with
covenants such as interest coverage and debt incurrence. EBITDA and
adjusted financial information is also used by the Company to
evaluate and price potential acquisition candidates. EBITDA and
adjusted financial information have limitations as an analytical
tool, and should not be considered in isolation or as a substitute
for analysis of the Company's results as reported under GAAP. Some
of these limitations are: (a) EBITDA does not reflect changes in, or
cash requirements for, the Company's working capital needs; (b)
EBITDA does not reflect the significant interest expense, or the
cash requirements necessary to service interest or principal
payments, on the Company's debts; and (c) although depreciation and
amortization are non-cash charges, the assets being depreciated and
amortized may have to be replaced in the future, and EBITDA does not
reflect any cash requirements for such capital expenditures. Because
of these limitations, EBITDA should only be used on a supplemental
basis combined with GAAP results when evaluating the Company's
performance.
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Click
here to subscribe to Mobile Alerts for 1-800-Flowers.
1-800-FLOWERS.COM, Inc.
Investors:
Joseph
D. Pititto, 516-237-6131
[email protected]
or
Media:
Yanique
Woodall, 516-237-6028
[email protected]
Source: 1-800-FLOWERS.COM, Inc.