Nov 02, 2016
1-800-FLOWERS.COM, Inc. Reports Results for Its Fiscal 2017 First Quarter
- Total revenues increased 6.3 percent to $165.8 million, primarily
reflecting strong growth in the Company’s Gourmet Food and Gift
Baskets business.
- EBITDA, excluding stock-based compensation expense, was a loss of
$13.3 million, compared with an Adjusted* EBITDA loss of $12.0 million
in the prior year period, primarily reflecting higher operating
expenses and marketing investments in preparation for the key, holiday
period.
- GAAP EPS loss for the quarter was $0.24 compared with a loss of
$0.07 per share in the prior year period. On a comparable basis*, the
prior year EPS loss was $0.22.
*Excludes a one-time net benefit primarily associated with the final
settlement of the Company’s insurance claims related to the Fannie May
warehouse fire that occurred on Thanksgiving Day, 2014.
CARLE PLACE, N.Y.--(BUSINESS WIRE)--
1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), the leading gourmet food and
floral gift provider for all occasions, today reported results for its
Fiscal 2017 first quarter.
Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said, “Our first quarter
results reflect a continuation of the positive trends we have been
seeing across our business for some time. In Gourmet Food and Gift
Baskets, revenue growth accelerated, driven primarily by double digit
growth in our wholesale baskets business as well as in our Cheryl’s and
The Popcorn Factory brands. In addition, our Fannie May business
recorded positive same store sales as well as solid ecommerce growth,
reflecting the success of the initiatives we have implemented to enhance
its performance.”
McCann noted that the Company’s floral business segments also continued
to see positive trends during the quarter: “Our 1-800-Flowers brand
continued its strong top and bottom-line growth trends, with revenues,
gross margin and contribution margin all rising in what is a seasonally
slow quarter. Our BloomNet wire service business also continued to drive
very strong bottom line results, increasing its contribution margin to
nearly 35 percent despite slightly lower revenues, which primarily
reflected timing of some wholesale orders that moved from the first
quarter into the second quarter.
“As we head into the important holiday season, the positive trends we
are seeing across all three of our business segments, combined with the
many innovative merchandising and marketing plans we have in place,
position us to drive strong results for the fiscal second quarter. As
such, we are poised to deliver another year of revenue and earnings
growth to drive shareholder value.”
First Quarter 2017 Financial Results
For the first quarter of 2017, revenues grew 6.3 percent to $165.8
million as compared with total revenues of $156.0 million in the prior
year period. Revenue growth for the quarter was driven primarily by the
Company’s Gourmet Food and Gift Baskets segment, which grew 13.3 percent
compared with the prior year period. The strong growth in the Gourmet
Food and Gift Baskets segment, combined with 3.1 percent revenue growth
in the Company’s 1-800-Flowers.com Consumer Floral segment, more than
offset slightly lower revenues in the Company’s BloomNet segment.
Gross profit margin for the quarter was 43.0 percent, a decrease of 30
basis points compared with 43.3 percent in the prior year period. This
primarily reflects product mix in the Company’s Gourmet Food and Gift
Baskets segment. Operating expenses as a percent of total revenues was
57.0 percent, unchanged compared with the prior year period* (*adjusted
to exclude integration costs). This primarily reflected the increased
revenue in the period which more than offset higher labor and insurance
costs as well as increased marketing spending in preparation for the
upcoming holiday season.
The combination of these factors resulted in an EBITDA loss (excluding
stock-based compensation expense) of $13.3 million compared with an
Adjusted EBITDA loss of $12.0 million in the prior year period. The
increased loss primarily reflects higher operating expenses and
marketing investments in preparation for the key, holiday period.
Net loss was $15.8 million, or $0.24 per share, compared with a net loss
of $4.5 million, or $0.07 per share, in the prior year period. It is
important to note that the net loss attributable to 1-800-FLOWERS.COM,
Inc. and EPS for the prior year period include an after-tax benefit of
$9.8 million reflecting the final settlement of the Company’s insurance
claims related to the Fannie May warehouse and distribution center fire
that occurred on Thanksgiving Day, 2014, partially offset by costs
associated with the write down of certain foreign business assets and
integration costs during the quarter. On a comparable basis, net loss
attributable to 1-800-FLOWERS.COM, Inc. in the prior year period was
$14.3 million, or $0.22 per share.
Segment Results From Continuing Operations:
The Company provides selected financial results for its Consumer Floral,
BloomNet and Gourmet Foods and Gift Baskets segments in the tables
attached to this release and as follows:
- Gourmet Foods and Gift Baskets: Revenues for the quarter
increased 13.3 percent to $69.8 million, compared with $61.6 million
in the prior year period. Approximately half of the total revenue
growth for the period was related to the early shipment of holiday
gift basket orders at the request of some of the Company’s wholesale
customers. Revenue growth for the period also benefited from double
digit increases at the Company’s Cheryl’s and The Popcorn Factory
brands as well as positive same store sales in its Fannie May business
where initiatives to enhance the brand’s performance have begun to
take hold. Gross profit margin was 41.2 percent, a decrease of 200
basis points, compared with 43.2 percent in the prior year period,
primarily reflecting product mix associated with the aforementioned
increase in gift basket orders shipped to wholesale customers.
Contribution margin loss was $9.3 million compared with $8.5 million
in the prior year period, primarily reflecting increased labor and
insurance costs as well as marketing investments in preparation for
the upcoming holiday season.
- Consumer Floral: Fiscal first quarter revenues in this segment
increased 3.1 percent to $75.2 million, compared with $72.9 million in
the prior year period. On a comparable basis, revenues increased 4.2
percent, adjusted for the lost revenues associated with the sale of
the Company’s iFlorist U.K. business, which closed in October, 2015.
Gross margin increased 110 basis points to 40.5 percent compared with
39.4 percent in the prior year period reflecting efficient use of
promotional marketing programs as well as enhanced product mix. As a
result of these factors, category contribution margin increased for
the ninth consecutive quarter, up 8.4 percent to $8.2 million,
compared with $7.5 million in the prior year period.
- BloomNet Wire Service: Revenues for the quarter were $21.0
million, compared with $21.5 million in the prior year period,
primarily reflecting the timing of some product shipments to wholesale
accounts which shifted from the first quarter into the second quarter.
Gross profit margin was 56.3 percent, an increase of 170 basis points
compared with 54.6 percent in the prior year period, primarily
attributable to product mix. Contribution margin increased 5.3 percent
to $7.3 million compared with $6.9 million in the prior year period.
Company Guidance:
The Company is reiterating its guidance for fiscal 2017 as follows:
-
Consolidated revenue growth for the year in a range of 4-to-5 percent,
compared with revenues of $1.17 billion reported for fiscal 2016.
-
EBITDA growth in a range of 8-to-10 percent compared with Adjusted
EBITDA of $85.8 million reported for fiscal 2016.
-
EPS growth in a range of 5-to-10 percent compared with Adjusted EPS of
$0.43 reported for fiscal 2016.
-
Free Cash Flow for the year of approximately $40 million compared with
$24 million in fiscal 2016.
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. *Adjusted EBITDA excludes one-time
acquisition and integration related costs incurred in the prior year
period. Comparable EPS excludes the after-tax benefit of $9.8 million
reflecting the final settlement of the Company’s insurance claims
related to the Fannie May warehouse and distribution center fire that
occurred on Thanksgiving Day 2014 partially offset by costs associated
with the write down of certain foreign business assets and integration
costs during the quarter. The Company presents EBITDA, Comparable EPS
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 a leading provider of gourmet food and floral gifts for all
occasions. For the past 40 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. The company’s Celebrations suite of services including
Celebrations Passport Free Shipping Program, Celebrations Rewards and
Celebrations Reminders, are all designed to engage with customers and
deepen relationships as a one-stop destination for all celebratory and
gifting occasions. In 2016, 1-800-Flowers.com was awarded Silver Stevie
“e-Commerce Customer Service” Award, recognizing the company’s
innovative use of online technologies and social media to service the
needs of customers. In addition, 1-800-FLOWERS.COM, Inc. was recognized
as one of Internet Retailer’s Top 300 B2B e-commerce companies and was
also recently named in Internet Retailer’s 2016 Top Mobile 500 as one of
the world’s leading mobile commerce sites. The company was included in
Internet Retailer’s 2015 Top 500 for fast growing e-commerce companies.
In 2015, 1-800-Flowers.com was named a winner of the “Best Companies to
Work for in New York State” Award by The New York Society for Human
Resource Management (NYS-SHRM). 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,
Inc. “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); premium
English muffins and other breakfast treats from Wolferman’s
(1-800-999-1910 or www.wolfermans.com);
carved fresh fruit arrangements from FruitBouquets.com (www.fruitbouquets.com); and
top quality steaks and chops from Stock Yards® (www.stockyards.com).
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,” “target” 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, but are not
limited to, statements regarding the Company’s expectations for:
enhanced performance in its Fannie May business; its ability to continue
to generate solid top and bottom-line growth in its 1-800-Flowers.com
Consumer Floral business; its ability to generate strong revenue growth
in its Cheryl’s, Harry & David, The Popcorn Factory and 1800Baskets
businesses; its ability to continue to grow bottom-line contribution in
its 1-800-Flowers and BloomNet businesses; its ability to leverage its
consolidated customer database and new multi-brand website to attract
and retain customers and help grow revenues; its ability to achieve its
guidance for consolidated revenue growth for the full year in a range of
4-to-5 percent; its ability to achieve EBITDA growth in a range of
8-to-10 percent and EPS in a range of 5-to-10 percent; its ability to
generate Free Cash Flow for the year of approximately $40 million; its
ability to leverage its operating platform and reduce operating expense
ratio; 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 compete against existing and new
competitors; its ability to manage expenses associated with sales and
marketing and necessary general and administrative and technology
investments; its ability to reduce promotional activities and achieve
more efficient marketing programs; 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, 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 above details
and attached financial results today, Wednesday, November 2, 2016, at
11:00 a.m. (ET). 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 web site at www.1800flowersinc.com
A recording of the call will be posted on the Investor Relations section
of the Company’s web site within two hours of the call’s completion. A
telephonic replay of the call can be accessed beginning at 2:00 p.m. ET
on the day of the call through November 9, 2016 at: 1-877-344-7529 or
1-412-317-0088 (international) or 1-855-669-9658 (Canada); Conference
ID: 10095323.
Note: 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)
|
|
|
|
| October 2, 2016
(unaudited)
|
| July 3, 2016 |
| |
| | |
| Assets | | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
6,755
| |
$
|
27,826
|
|
Trade receivables, net
| | |
42,821
| | |
19,123
|
|
Inventories
| | |
191,382
| | |
103,328
|
|
Prepaid and other
| |
|
27,852
| |
|
16,382
|
|
Total current assets
| | |
268,810
| | |
166,659
|
| | | |
|
|
Property, plant and equipment, net
| | |
168,186
| | |
171,362
|
|
Goodwill
| | |
77,667
| | |
77,667
|
|
Other intangibles, net
| | |
78,709
| | |
79,000
|
|
Other assets
| |
|
9,291
| |
|
8,253
|
|
Total assets
| |
$
|
602,663
| |
$
|
502,941
|
| | | |
|
| Liabilities and Stockholders' Equity | | | | |
|
Current liabilities:
| | | | |
|
Accounts payable
| |
$
|
32,448
| |
$
|
35,201
|
|
Accrued expenses
| | |
63,301
| | |
66,066
|
|
Current maturities of long-term debt
| |
|
146,375
| |
|
19,594
|
|
Total current liabilities
| | |
242,124
| | |
120,861
|
| | | |
|
|
Long-term debt
| | |
89,425
| | |
94,396
|
|
Deferred tax liabilities
| | |
34,814
| | |
35,517
|
|
Other liabilities
| |
|
10,578
| |
|
9,581
|
|
Total liabilities
| |
|
376,941
| |
|
260,355
|
|
Total equity
| |
|
225,722
| |
|
242,586
|
|
Total liabilities and equity
| |
$
|
602,663
| |
$
|
502,941
|
| | | | | |
|
|
|
| 1-800-FLOWERS.COM, Inc. and Subsidiaries |
| Selected Financial Information |
| Condensed Consolidated Statements of Operations |
(In thousands, except for per share data)
|
(unaudited)
|
|
|
|
| Three Months Ended |
| | October 2, 2016 |
| September 27, 2015 |
|
Net revenues:
| | | | |
|
E-commerce (combined online and telephonic)
| |
$
|
107,084
| |
$
|
104,697
|
|
Other
| |
|
58,745
| |
|
51,344
|
|
Total net revenues
| | |
165,829
| | |
156,041
|
|
Cost of revenues
| |
|
94,442
| |
|
88,532
|
|
Gross profit
| | |
71,387
| | |
67,509
|
|
Operating expenses:
| | | | |
|
Marketing and sales
| | |
55,078
| | |
52,526
|
|
Technology and development
| | |
9,488
| | |
9,311
|
|
General and administrative
| | |
21,933
| | |
19,971
|
|
Depreciation and amortization
| |
|
7,997
| |
|
7,972
|
|
Total operating expenses
| |
|
94,496
| |
|
89,780
|
|
Operating loss
| | |
(23,109)
| | |
(22,271)
|
|
Interest expense, net
| | |
1,451
| | |
1,891
|
|
Other income, net
| |
|
(150)
| |
|
(15,538)
|
|
Loss before income taxes
| | |
(24,410)
| | |
(8,624)
|
|
Income tax benefit
| |
|
(8,639)
| |
|
(3,188)
|
|
Net loss
| |
|
(15,771)
| |
|
(5,436)
|
|
Less: Net loss attributable to noncontrolling interest
| |
|
-
| |
|
(952)
|
|
Net loss attributable to 1-800-FLOWERS.COM, Inc.
| |
$
|
(15,771)
| |
$
|
(4,484)
|
| | | |
|
|
Basic and diluted net loss per common share attributable to
1-800-FLOWERS.COM, Inc.
| |
$
|
(0.24)
| |
$
|
(0.07)
|
| | | |
|
|
Basic and diluted weighted average shares used in the calculation of
net loss per common share
| |
|
65,081
| |
|
64,825
|
| | | | | |
|
|
|
1-800-FLOWERS.COM, Inc. and Subsidiaries |
| Selected Financial Information |
| Consolidated Statements of Cash Flows |
(In thousands)
|
(unaudited)
|
|
|
|
| Years ended |
| | October 2, 2016 |
| September 27, 2015 |
| | | |
|
| Operating activities: | | | | |
|
Net loss
| | |
($15,771)
| | |
($5,436)
|
|
Reconciliation of net loss to net cash used in operating activities,
net of acquisitions/dispositions:
| | | | |
|
Depreciation and amortization
| | |
7,997
| | |
7,972
|
|
Amortization of deferred financing costs
| | |
374
| | |
414
|
|
Deferred income taxes
| | |
(703)
| | |
(740)
|
|
Foreign equity method investment impairment
| | |
-
| | |
1,728
|
|
Impairment of iFlorist
| | |
-
| | |
1,879
|
|
Fire related gain
| | |
-
| | |
(19,611)
|
|
Bad debt expense
| | |
188
| | |
454
|
|
Stock-based compensation
| | |
1,774
| | |
1,518
|
|
Other non-cash items
| | |
264
| | |
181
|
|
Changes in operating items:
| | | | |
|
Trade receivables
| | |
(23,886)
| | |
(13,152)
|
|
Insurance receivable
| | |
-
| | |
(449)
|
|
Inventories
| | |
(88,054)
| | |
(94,756)
|
|
Prepaid and other
| | |
(11,470)
| | |
(4,861)
|
|
Accounts payable and accrued expenses
| | |
(5,518)
| | |
(15,342)
|
|
Other assets
| | |
-
| | |
(75)
|
|
Other liabilities
| |
|
(37)
| |
|
45
|
| Net cash used in operating activities | | |
(134,842)
| | |
(140,231)
|
| | | |
|
| Investing activities: | | | | |
|
Capital expenditures, net of non-cash expenditures
| |
|
(4,703)
| |
|
(6,224)
|
| Net cash used in investing activities | | |
(4,703)
| | |
(6,224)
|
| | | |
|
| Financing activities: | | | | |
|
Acquisition of treasury stock
| | |
(2,964)
| | |
(4,717)
|
|
Proceeds from exercise of employee stock options
| | |
1
| | |
1
|
|
Proceeds from bank borrowings
| | |
125,000
| | |
141,903
|
|
Repayment of bank borrowings
| |
|
(3,563)
| |
|
(16,685)
|
| Net cash (used in) provided by financing activities | | |
118,474
| | |
120,502
|
| |
| |
|
|
Net change in cash and cash equivalents
| | |
(21,071)
| | |
(25,953)
|
|
Cash and cash equivalents:
| | | | |
|
Beginning of year
| |
|
27,826
| |
|
27,940
|
|
End of year
| |
$
|
6,755
| |
$
|
1,987
|
| | | | | |
|
|
|
1-800-FLOWERS.COM, Inc. and Subsidiaries |
| Selected Financial Information – Category Information |
(in thousands)
|
(unaudited)
|
|
|
|
| Three Months Ended | |
| | October 2, 2016 |
| September 27, 2015 |
| % Change |
| |
| |
| | | | | | | | | |
|
| Net revenues: | | | | | | | | | | |
|
1-800-Flowers.com Consumer Floral
| |
$
|
75,215
| |
$
|
72,948
| | |
3.1%
| | | | |
|
BloomNet Wire Service
| | |
20,964
| | |
21,549
| | |
-2.7%
| | | | |
|
Gourmet Food & Gift Baskets
| | |
69,814
| | |
61,592
| | |
13.3%
| | | | |
|
Corporate
| | |
263
| | |
257
| | |
2.3%
| | | | |
|
Intercompany eliminations
| |
|
(427)
| |
|
(305)
| | |
40.0%
| | | | |
| Total net revenues | |
$
|
165,829
| |
$
|
156,041
| | |
6.3%
| | | | |
| | | | | | | | | |
|
| Gross profit: | | | | | | | | | | |
|
1-800-Flowers.com Consumer Floral
| |
$
|
30,499
| |
$
|
28,769
| | |
6.0%
| | | | |
| | |
40.5%
| | |
39.4%
| | | | | | |
| | | | | | | | | |
|
|
BloomNet Wire Service
| | |
11,794
| | |
11,766
| | |
0.2%
| | | | |
| | |
56.3%
| | |
54.6%
| | | | | | |
| | | | | | | | | |
|
|
Gourmet Food & Gift Baskets
| | |
28,751
| | |
26,632
| | |
8.0%
| | | | |
| | |
41.2%
| | |
43.2%
| | | | | | |
| | | | | | | | | |
|
|
Corporate (a)
| | |
343
| | |
342
| | |
0.3%
| | | | |
| | |
130.4%
| | |
133.1%
| | | | | | |
| |
| |
|
| | | | | |
| Total gross profit | |
$
|
71,387
| |
$
|
67,509
|
| |
5.7%
| | | | |
| |
|
43.0%
| |
|
43.3%
|
| | | | | |
| | | | | | | | | |
|
| | Three Months Ended |
| EBITDA, excluding stock- based compensation | | October 2, 2016 | | Reported
September 27, 2015 | | Integration Costs | | Adjusted
September 27, 2015 | | As Adjusted
% Change |
| | | | | | | | | |
|
| Category Contribution Margin: | | | | | | | | | | |
|
1-800-Flowers.com Consumer Floral
| |
$
|
8,181
| |
$
|
7,549
| |
$
|
-
| |
$
|
7,549
| |
8.4%
|
|
BloomNet Wire Service
| | |
7,279
| | |
6,915
| | |
-
| | |
6,915
| |
5.3%
|
|
Gourmet Food & Gift Baskets
| |
|
(9,304)
| |
|
(8,494)
| |
|
-
| |
|
(8,494)
| |
-9.5%
|
|
Category Contribution Margin Subtotal
| | |
6,156
| | |
5,970
| | |
-
| | |
5,970
| |
3.1%
|
|
Corporate (a)
| | |
(21,268)
| | |
(20,269)
| | |
828
| | |
(19,441)
| |
-9.4%
|
| |
| |
| |
| |
| | |
| EBITDA | |
$
|
(15,112)
| |
$
|
(14,299)
| |
$
|
828
| |
$
|
(13,471)
| |
-12.2%
|
| | | | | | | | | |
|
|
Add: Stock-based compensation
| | |
1,774
| | |
1,518
| | |
-
| | |
1,518
| |
-16.9%
|
| |
| |
| |
| |
| | |
| EBITDA, excluding stock-based compensation | |
$
|
(13,338)
| |
$
|
(12,781)
| |
$
|
828
| |
$
|
(11,953)
| |
-11.6%
|
| | | | | | | | | |
|
|
| |
| 1-800-FLOWERS.COM, Inc. and Subsidiaries |
| Selected Financial Information |
(in thousands)
|
(unaudited)
|
| |
|
| Reconciliation of GAAP net loss to Adjusted loss attributable to
1-800-FLOWERS.COM, Inc.: | | |
| | Three Months Ended |
| | October 2, 2016 |
| September 27, 2015 |
| | | |
|
|
GAAP net loss
| |
$
|
(15,771)
| |
$
|
(5,436)
|
|
Less: Net loss attributable to noncontrolling interest
| |
|
-
| |
|
(952)
|
|
Loss attributable to 1-800-FLOWERS.COM, Inc.
| | |
(15,771)
| | |
(4,484)
|
|
Adjustments to reconcile loss attributable to 1-800-FLOWERS.COM,
Inc. to Adjusted loss attributable to 1-800-FLOWERS.COM, Inc.
| | | | |
|
Add back: Loss on sale/impairment of iFlorist
| | |
-
| | |
1,879
|
|
Add back: Impairment of foreign equity method investment
| | |
-
| | |
1,728
|
|
Add back: Harry & David integration costs
| | |
-
| | |
828
|
|
Deduct: Gain from insurance recovery on warehouse fire
| | |
-
| | |
(19,611)
|
|
Deduct income tax effect of adjustments
| |
|
-
| |
|
5,352
|
| Adjusted loss attributable to 1-800-FLOWERS.COM, Inc. | |
$
|
(15,771)
| |
$
|
(14,308)
|
| | | |
|
| GAAP loss per common share attributable to 1-800-FLOWERS.COM, Inc. | | | | |
|
Basic and diluted
| |
$
|
(0.24)
| |
$
|
(0.07)
|
| | | |
|
| Adjusted loss per common share attributable to 1-800-FLOWERS.COM,
Inc. | | | | |
|
Basic and diluted
| |
$
|
(0.24)
| |
$
|
(0.22)
|
| | | |
|
Weighted average shares used in the calculation of GAAP loss
and Adjusted loss per common share attributable to
1-800-FLOWERS.COM, Inc. | | | | |
|
Basic and diluted
| |
|
65,081
| |
|
64,825
|
| | | |
|
|
| |
| Reconciliation of GAAP net loss attributable to
1-800-Flowers.com, Inc. to Adjusted EBITDA, excluding stock-based
compensation(b): | | |
| | Three Months Ended |
| | October 2, 2016 |
| September 27, 2015 |
| | | |
|
|
Loss attributable to 1-800-FLOWERS.COM, Inc.
| |
$
|
(15,771)
| |
$
|
(4,484)
|
|
Add:
| | | | |
|
Interest expense, net
| | |
1,301
| | |
2,357
|
|
Depreciation and amortization
| | |
7,997
| | |
7,972
|
|
Loss on sale/impairment of iFlorist
| | |
-
| | |
1,879
|
|
Impairment of foreign equity method investment
| | |
-
| | |
1,728
|
|
Less:
| | | | |
|
Net loss attributable to noncontrolling interest
| | |
-
| | |
952
|
|
Income tax benefit
| | |
8,639
| | |
3,188
|
|
Gain from insurance recovery on warehouse fire
| |
|
-
| |
|
19,611
|
| EBITDA | | | (15,112) | | | (14,299) |
|
Add: Integration costs
| |
|
-
| |
|
828
|
| Adjusted EBITDA | | | (15,112) | | | (13,471) |
|
Add: Stock-based compensation
| |
|
1,774
| |
|
1,518
|
| Adjusted EBITDA, excluding stock-based compensation | | $ | (13,338) | | $ | (11,953) |
| | | | | |
|
|
(a)
|
|
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.
|
| |
|
|
(b)
| |
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 ave 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.
|
| |
|
Click
here to subscribe to Mobile Alerts for 1-800-Flowers.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161102005419/en/
For 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.