FLWS 1 800 Flowers Com

Delaware	0-26841	11-3117311
(State of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	FLWS	The Nasdaq Stock Market

	1-800-FLOWERS.COM, INC.
	By:	/s/ William E. Shea
		William E. Shea
		Senior Vice President, Treasurer and Chief Financial Officer

Exhibit 99.1

 

 

 

	Investor Contact:	Media Contact:
	Andy Milevoj	Cherie Gallarello
	(516) 237-4617	cgallarello@1800flowers.com
	amilevoj@1800flowers.com

 

 

 

1-800-FLOWERS.COM, Inc. Reports Fiscal 2024 Second Quarter Results

 

Reports Revenues of $822.1 million and Net Income of $62.9 million, or $0.97 per share, which Includes a Non-Cash Impairment Charge of $19.8 million

 

Adjusted Net Income ⁽¹⁾ was $82.7 million, or $1.27 per share

 

Gross Profit Margin Improves 230 basis points to 43.3%, Marking the Fifth Consecutive Quarter of Year-Over-Year Gross Profit Margin Expansion

 

Generates Adjusted EBITDA ⁽¹⁾ of $130.1 million

 

Updates Fiscal 2024 Revenue Guidance

 

 

(1) Refer to “Definitions of Non-GAAP Financial Measures” and the tables attached at the end of this press release for reconciliation of non-GAAP results to applicable GAAP results.)

 

Jericho, NY, February 1, 2024 – 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships, today reported results for its fiscal 2024 second quarter ended December 31, 2023.

 

Fiscal 2024 Second Quarter Highlights

 

●

Total consolidated revenues decreased 8.4% to $822.1 million, compared with total consolidated revenues of $897.9 million in the prior year period. E-commerce revenue declined 6.6% to $738.4 million.

 

●

Gross profit margin increased 230 basis points to 43.3%, compared with 41.0% in the prior year period. The gross profit margin expansion was led by improvements across the Company’s three business segments, which benefited from lower freight costs, lower labor costs, a decline in certain commodity costs, as well as the Company’s inventory optimization efforts.

 

●

Operating expenses increased $11.8 million from the prior year period, including a $19.8 million non-cash impairment charge in the Consumer Floral and Gifts segment related to the Personalization Mall trademark. Excluding the impact of this charge and the appreciation or depreciation of investments in the Company’s non-qualified compensation plan, operating expenses declined $10.8 million as compared with the prior year period to $242.0 million.

 

●

Net income for the quarter was $62.9 million, or $0.97 per diluted share, which includes a non-cash impairment charge of $19.8 million or $0.30 per diluted share. Adjusted Net Income1 was $82.7 million, or $1.27 per diluted share. In the prior year period, Net income was $82.5 million, or $1.27 per diluted share.

 

●

Adjusted EBITDA1 for the quarter was $130.1 million, as compared with Adjusted EBITDA1 of $131.4 million in the prior year period.

 

 

“Our second quarter earnings came in line with our expectations, as our gross profit margin recovery and expense optimization efforts helped offset a softer than anticipated consumer environment,” said Jim McCann, Chairman and Chief Executive Officer of 1-800-FLOWERS.COM, Inc. “This was our fifth consecutive quarter of gross margin expansion, and we are well on our path to returning to our historical mean annual gross margin rate in the low 40s percent range. Our gross profit margin is benefiting from a reversion to the mean of certain commodity costs combined with our Work Smarter initiatives that are centered on operating more efficiently and provide a benefit to both our gross profit margin and operating expenses.”

 

“We are maintaining our full year Adjusted EBITDA estimate, as our Work Smarter initiatives that are contributing to our gross profit margin and operating margin are expected to continue to mitigate a softer topline environment,” continued Mr. McCann. “Our quarter-over-quarter sales trends continue to move in the right direction and our Relationship Innovation and Work Smarter initiatives are having a clear and direct impact on our business, which we expect to only be further buoyed as the broader consumer discretionary environment improves.”

 

Segment Results

 

The Company provides Fiscal 2024 second quarter selected financial results for its Gourmet Foods and Gift Baskets, Consumer Floral and Gifts, and BloomNet segments in the tables attached to this release and as follows:

 

●

Gourmet Foods and Gift Baskets: Revenues for the quarter were $540.0 million, declining 8.2% compared with $588.4 million in the prior year period. Gross profit margin expanded 220 basis points to 43.2%, compared with 41.0% percent in the prior year period, benefiting from lower freight costs, lower labor costs, a decline in certain commodity costs, as well as the Company’s inventory optimization efforts. Segment contribution margin1 declined by $5.4 million to $118.2 million, compared with segment contribution margin1 of $123.5 million in the prior year period, primarily due to the revenue decline.

 

●

Consumer Floral & Gifts: Revenues for the quarter were $254.8 million, declining 8.0% compared with $277.0 million in the prior year period. Gross profit margin expanded 230 basis points to 42.8%, compared with 40.5% percent in the prior year period, improving on lower freight and labor costs. Segment contribution margin1 excluding the impairment charge was $30.4 million, compared with segment contribution margin1 of $27.9 million in the prior year period.

 

●

BloomNet: Revenues for the quarter were $27.2 million, declining 17.1% compared with $32.9 million in the prior year period. Revenue was impacted by the lower order volume processed by BloomNet. Gross profit margin was 47.6%, compared with 42.2% in the prior year period, primarily reflecting product mix and lower freight costs. Segment contribution margin1 was $9.1 million, compared with $9.3 million in the prior year period.

 

 

Company Guidance

 

The Company is updating its Fiscal 2024 guidance to reduce its revenue outlook for the full year, while maintaining its Adjusted EBITDA and Free Cash Flow expectations, as the improvement in gross profit margin and the company’s expense optimization efforts are expected to mitigate the softer than anticipated revenue improvement.

 

As a result, the Company now expects Fiscal 2024:

 

●

total revenues on a percentage basis to decline in a range of 7% to 9%, as compared with the prior year;

 

●

Adjusted EBITDA1 to be in a range of $95 million to $100 million; and

 

●

Free Cash Flow1 to be in a range of $60 million to $65 million.

 

Conference Call

 

The Company will conduct a conference call to discuss the above details and attached financial results today, February 1, 2024, at 8:00 a.m. (ET). The conference call will be webcast from the Investors section of the Company’s website at www.1800flowersinc.com. A recording of the call will be posted on the Investors section of the Company’s website within two hours of the call’s completion. A telephonic replay of the call can be accessed beginning at 2:00 p.m. (ET) today through February 8, 2024, at: (US) 1-877-344-7529; (Canada) 855-669-9658; (International) 1-412-317-0088; enter conference ID #: 4402294.

 

 

Definitions of non-GAAP Financial Measures:

 

We sometimes use financial measures derived from consolidated financial information, but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. Non-GAAP financial measures referred to in this document are either labeled as “non-GAAP” or designated as such with a “1”. See below for definitions and the reasons why we use these non-GAAP financial measures. Where applicable, see the Selected Financial Information below for reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures. Reconciliations for forward-looking figures would require unreasonable efforts at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including, for example, those related to compensation, tax items, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The lack of such reconciling information should be considered when assessing the impact of such disclosures.

 

 

EBITDA and Adjusted EBITDA:

 

We define EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA adjusted for the impact of stock-based compensation, Non-Qualified Plan Investment appreciation/depreciation, and for certain items affecting period-to-period comparability. See Selected Financial Information for details on how EBITDA and Adjusted EBITDA were calculated for each period presented. The Company presents EBITDA and Adjusted EBITDA 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 uses EBITDA and Adjusted EBITDA as factors 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 determine its interest rate and to measure compliance with certain covenants. EBITDA and Adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates. EBITDA and Adjusted EBITDA 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 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 Adjusted EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company's performance.

 

Segment Contribution Margin and Adjusted Segment Contribution Margin

 

We define Segment Contribution Margin as earnings before interest, taxes, depreciation, and amortization, before the allocation of corporate overhead expenses. Adjusted Segment Contribution Margin is defined as Segment Contribution Margin adjusted for certain items affecting period-to-period comparability. See Selected Financial Information for details on how Segment Contribution Margin and Adjusted Segment Contribution Margin were calculated for each period presented. When viewed together with our GAAP results, we believe Segment Contribution Margin and Adjusted Segment Contribution Margin provide management and users of the financial statements meaningful information about the performance of our business segments. Segment Contribution Margin and Adjusted Segment Contribution Margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of Segment Contribution Margin and Adjusted Segment Contribution Margin is that they are an incomplete measure of profitability as they do not include all operating expenses or non-operating income and expenses. Management compensates for this limitation when using these measures by looking at other GAAP measures, such as Operating Income and Net Income.

 

Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share:

 

We define Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common

Share as Net Income (Loss) and Net Income (Loss) Per Common Share adjusted for certain items affecting period-to-period comparability. See Selected Financial Information below for details on how Adjusted Net Income (Loss) Per Common Share and Adjusted or Comparable Net Income (Loss) Per Common Share were calculated for each period presented. We believe that Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share are meaningful measures because they increase the comparability of period-to-period results. Since these are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, GAAP Net Income (Loss) and Net Income (Loss) Per Common share, as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies. 

 

Free Cash Flow:

 

We define Free Cash Flow as net cash provided by operating activities less capital expenditures. The Company considers Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of fixed assets, which can then be used to, among other things, invest in the Company’s business, make strategic acquisitions, strengthen the balance sheet, and repurchase stock or retire debt. Free Cash Flow is a liquidity measure that is frequently used by the investment community in the evaluation of similarly situated companies. Since Free Cash Flow is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. A limitation of the utility of Free Cash Flow as a measure of financial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period.

 

 

About 1-800-FLOWERS.COM, Inc.

 

1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships. The Company’s e-commerce business platform features an all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, and Simply Chocolate®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad-range of products and services designed to help members grow their businesses profitably; Napco℠, a resource for floral gifts and seasonal décor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; and Alice’s Table®, a lifestyle business offering fully digital floral, culinary and other experiences to guests across the country. 1-800-FLOWERS.COM, Inc. was recognized among the top 5 on the National Retail Federation’s 2021 Hot 25 Retailers list, which ranks the nation’s fastest-growing retail companies, and was named to the Fortune 1000 list in 2022. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com or follow @1800FLOWERSInc on Twitter.  

 

 

	FLWS–COMP
	FLWS-FN

 

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 using statements that include words such as “estimate,” “expects,” “project,” “believe,” “anticipate,” “intend,” “plan,” “foresee,” “forecast,” “likely,” “should,” “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 not limited to, statements regarding the Company’s ability to achieve its guidance for the full Fiscal year; the Company’s ability to leverage its operating platform and reduce its operating expense ratio; its ability to successfully integrate acquired businesses and assets; its ability to successfully execute its strategic initiatives; 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 industry 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 because of new information, future events or otherwise, made in this release or in any of its SEC filings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed description of these and other risk factors, 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.

 

Note: The following 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)

 

		December 31, 2023				July 2, 2023
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	312,017			$	126,807
Trade receivables, net			46,578				20,419
Inventories			161,324				191,334
Prepaid and other			24,557				34,583
Total current assets			544,476				373,143
Property, plant and equipment, net			227,643				234,569
Operating lease right-of-use assets			117,825				124,715
Goodwill			153,577				153,376
Other intangibles, net			117,897				139,888
Other assets			30,292				25,739
Total assets		$	1,191,710			$	1,051,430
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	92,418			$	52,588
Accrued expenses			224,084				141,914
Current maturities of long-term debt			10,000				10,000
Current portion of long-term operating lease liabilities			15,433				15,759
Total current liabilities			341,935				220,261
Long-term debt, net			181,749				186,391
Long-term operating lease liabilities			110,740				117,330
Deferred tax liabilities, net			25,026				31,134
Other liabilities			28,900				24,471
Total liabilities			688,350				579,587
Total stockholders’ equity			503,360				471,843
Total liabilities and stockholders’ equity		$	1,191,710			$	1,051,430

 

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statements of Operations

(in thousands, except for per share data)

(unaudited)

 

		Three Months Ended								Six Months Ended
		December 31, 2023				January 1, 2023				December 31, 2023				January 1, 2023
Net revenues:
E-Commerce		$	738,406			$	790,410			$	948,317			$	1,029,332
Other			83,648				107,467				142,787				172,149
Total net revenues			822,054				897,877				1,091,104				1,201,481
Cost of revenues			466,357				530,111				633,479				732,257
Gross profit			355,697				367,766				457,625				469,224
Operating expenses:
Marketing and sales			188,557				194,466				271,075				283,605
Technology and development			14,822				14,952				30,126				29,692
General and administrative			27,154				28,908				55,643				55,153
Depreciation and amortization			14,152				14,315				27,346				27,009
Intangible impairment			19,762				-				19,762				-
Total operating expenses			264,447				252,641				403,952				395,459
Operating income			91,250				115,125				53,673				73,765
Interest expense, net			4,611				4,143				8,093				6,964
Other (income) expense, net			(2,736	)			148				(2,262	)			1,070
Income before income taxes			89,375				110,834				47,842				65,731
Income tax expense			26,468				28,304				16,177				16,893
Net income		$	62,907			$	82,530			$	31,665			$	48,838
Basic net income per common share		$	0.97			$	1.28			$	0.49			$	0.76
Diluted net income per common share		$	0.97			$	1.27			$	0.49			$	0.75
Weighted average shares used in the calculation of net income per common share:
Basic			64,835				64,675				64,814				64,606
Diluted			65,177				64,835				65,155				64,820

 

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

		Six Months Ended
		December 31, 2023				January 1, 2023
Operating activities:
Net income		$	31,665			$	48,838
Adjustments to reconcile net income to net cash provided by operating activities:
Intangible impairment			19,762				-
Depreciation and amortization			27,346				27,009
Amortization of deferred financing costs			361				671
Deferred income taxes			(6,108	)			(846	)
Bad debt expense			225				2,407
Stock-based compensation			4,595				3,454
Other non-cash items			(385	)			(470	)
Changes in operating items:
Trade receivables			(26,384	)			(31,622	)
Inventories			29,808				46,506
Prepaid and other			6,640				7,550
Accounts payable and accrued expenses			125,404				89,050
Other assets and liabilities			(169	)			1,113
Net cash provided by operating activities			212,760				193,660
Investing activities:
Capital expenditures			(17,807	)			(23,849	)
Net cash used in investing activities			(17,807	)			(23,849	)
Financing activities:
Acquisition of treasury stock			(4,787	)			(1,175	)
Proceeds from exercise of employee stock options			44				-
Proceeds from bank borrowings			82,000				195,900
Repayment of bank borrowings			(87,000	)			(205,900	)
Debt issuance cost			-				(383	)
Net cash used in financing activities			(9,743	)			(11,558	)
Net change in cash and cash equivalents			185,210				158,253
Cash and cash equivalents:
Beginning of period			126,807				31,465
End of period		$	312,017			$	189,718

 

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information – Category Information

(dollars in thousands)

(unaudited)

 

		Three Months Ended
		December 31, 2023				Intangible Impairment				As Adjusted (non-GAAP) December 31, 2023				January 1, 2023				Things Remembered Transaction Costs				As Adjusted (non-GAAP) January 1, 2023				% Change
Net revenues:
Consumer Floral & Gifts		$	254,835			$	-			$	254,835			$	277,049			$	-			$	277,049				-8.0	%
BloomNet			27,236								27,236				32,852								32,852				-17.1	%
Gourmet Foods & Gift Baskets			539,963								539,963				588,431								588,431				-8.2	%
Corporate			279								279				72								72				287.5	%
Intercompany eliminations			(259	)							(259	)			(527	)							(527	)			50.9	%
Total net revenues		$	822,054			$	-			$	822,054			$	897,877			$	-			$	897,877				-8.4	%
Gross profit:
Consumer Floral & Gifts		$	109,176							$	109,176			$	112,274							$	112,274				-2.8	%
			42.8	%							42.8	%			40.5	%							40.5	%
BloomNet			12,974								12,974				13,879								13,879				-6.5	%
			47.6	%							47.6	%			42.2	%							42.2	%
Gourmet Foods & Gift Baskets			233,200								233,200				241,418								241,418				-3.4	%
			43.2	%							43.2	%			41.0	%							41.0	%
Corporate			347								347				195								195				77.9	%
			124.4	%							124.4	%			270.8	%							270.8	%
Total gross profit		$	355,697			$	-			$	355,697			$	367,766			$	-			$	367,766				-3.3	%
			43.3	%			-				43.3	%			41.0	%			-				41.0	%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP) (a):
Consumer Floral & Gifts		$	10,593			$	19,762			$	30,355			$	27,886			$	-			$	27,886				8.9	%
BloomNet			9,088								9,088				9,348								9,348				-2.8	%
Gourmet Foods & Gift Baskets			118,153								118,153				123,503								123,503				-4.3	%
Segment Contribution Margin Subtotal			137,834				19,762				157,596				160,737				-				160,737				-2.0	%
Corporate (b)			(32,432	)							(32,432	)			(31,297	)			243				(31,054	)			-4.4	%
EBITDA (non-GAAP)			105,402				19,762				125,164				129,440				243				129,683				-3.5	%
Add: Stock-based compensation			2,231								2,231				1,899								1,899				17.5	%
Add: Compensation charge related to NQ Plan Investment Appreciation (Depreciation)			2,682								2,682				(196	)							(196	)			1468.4	%
Adjusted EBITDA (non-GAAP)		$	110,315			$	19,762			$	130,077			$	131,143			$	243			$	131,386				-1.0	%

 

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information – Category Information

(dollars in thousands)

(unaudited)

 

		Six Months Ended
		December 31, 2023				Intangible Impairment				As Adjusted (non-GAAP) December 31, 2023				January 1, 2023				Things Remembered Transaction Costs				As Adjusted (non-GAAP) January 1, 2023				% Change
Net revenues:
Consumer Floral & Gifts		$	397,029			$	-			$	397,029			$	439,229			$	-			$	439,229				-9.6	%
BloomNet			56,106								56,106				66,219								66,219				-15.3	%
Gourmet Foods & Gift Baskets			638,072								638,072				696,659								696,659				-8.4	%
Corporate			549								549				116								116				373.3	%
Intercompany eliminations			(652	)							(652	)			(742	)							(742	)			12.1	%
Total net revenues		$	1,091,104			$	-			$	1,091,104			$	1,201,481			$	-			$	1,201,481				-9.2	%
Gross profit:
Consumer Floral & Gifts		$	165,498			$	-			$	165,498			$	174,193			$	-			$	174,193				-5.0	%
			41.7	%							41.7	%			39.7	%							39.7	%
BloomNet			27,472								27,472				28,366								28,366				-3.2	%
			49.0	%							49.0	%			42.8	%							42.8	%
Gourmet Foods & Gift Baskets			264,107								264,107				266,531								266,531				-0.9	%
			41.4	%							41.4	%			38.3	%							38.3	%
Corporate			548								548				134								134				309.0	%
			99.8	%							99.8	%			115.5	%							115.5	%
Total gross profit		$	457,625			$	-			$	457,625			$	469,224			$	-			$	469,224				-2.5	%
			41.9	%			-				41.9	%			39.1	%			-				39.1	%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP) (a):
Consumer Floral & Gifts		$	19,419			$	19,762			$	39,181			$	38,696			$	-			$	38,696				1.3	%
BloomNet			18,475								18,475				18,865								18,865				-2.1	%
Gourmet Foods & Gift Baskets			107,125								107,125				104,793				-				104,793				2.2	%
Segment Contribution Margin Subtotal			145,019				19,762				164,781				162,354				-				162,354				1.5	%
Corporate (b)			(64,000	)							(64,000	)			(61,580	)			243				(61,337	)			-4.3	%
EBITDA (non-GAAP)			81,019				19,762				100,781				100,774				243				101,017				-0.2	%
Add: Stock-based compensation			4,595								4,595				3,454								3,454				33.0	%
Add: Compensation charge related to NQ Plan Investment Appreciation (Depreciation)			2,178								2,178				(1,102	)							(1,102	)			297.6	%
Adjusted EBITDA (non-GAAP)		$	87,792			$	19,762			$	107,554			$	103,126			$	243			$	103,369				4.0	%

 

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

(in thousands)

(unaudited)

 

Reconciliation of net income to adjusted net income (non-GAAP):		Three Months Ended								Six Months Ended
		December 31, 2023				January 1, 2023				December 31, 2023				January 1, 2023
Net income		$	62,907			$	82,530			$	31,665			$	48,838
Adjustments to reconcile net income to adjusted net income (non-GAAP)
Add: Transaction costs			-				243				-				243
Add: Intangible impairment			19,762				-				19,762				-
Deduct: Income tax effect on adjustments			-				(63	)			-				(63	)
Adjusted net income (non-GAAP)		$	82,669			$	82,710			$	51,427			$	49,018
Basic and diluted net income per common share
Basic		$	0.97			$	1.28			$	0.49			$	0.76
Diluted		$	0.97			$	1.27			$	0.49			$	0.75
Basic and diluted adjusted net income per common share (non-GAAP)
Basic		$	1.28			$	1.28			$	0.79			$	0.76
Diluted		$	1.27			$	1.28			$	0.79			$	0.76
Weighted average shares used in the calculation of basic and diluted net income and adjusted net income per common share
Basic			64,835				64,675				64,814				64,606
Diluted			65,177				64,835				65,155				64,820

 

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

(in thousands)

(unaudited)

 

Reconciliation of net income to adjusted EBITDA (non-GAAP):		Three Months Ended								Six Months Ended
		December 31, 2023				January 1, 2023				December 31, 2023				January 1, 2023
Net income		$	62,907			$	82,530			$	31,665			$	48,838
Add: Interest expense and other, net			1,875				4,291				5,831				8,034
Add: Depreciation and amortization			14,152				14,315				27,346				27,009
Add: Income tax expense			26,468				28,304				16,177				16,893
EBITDA			105,402				129,440				81,019				100,774
Add: Stock-based compensation			2,231				1,899				4,595				3,454
Add: Compensation charge related to NQ Plan Investment Appreciation (Depreciation)			2,682				(196	)			2,178				(1,102	)
Add: Intangible Impairment			19,762				-				19,762				-
Add: Transaction costs			-				243				-				243
Adjusted EBITDA		$	130,077			$	131,386			$	107,554			$	103,369

 

 

(a) Segment performance is measured based on segment contribution margin or segment Adjusted EBITDA, reflecting only the direct controllable revenue and operating expenses of the segments, both of which are non-GAAP measurements. 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), and other items that we do not consider indicative of our core operating performance.

 

(b) 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.

 

v3.24.0.1

Document And Entity Information	Feb. 01, 2024
Document Information [Line Items]
Entity, Registrant Name	1 800 FLOWERS COM INC
Document, Type	8-K
Document, Period End Date	Feb. 01, 2024
Entity, Incorporation, State or Country Code	DE
Entity, File Number	0-26841
Entity, Tax Identification Number	11-3117311
Entity, Address, Address Line One	Two Jericho Plaza, Suite 200
Entity, Address, City or Town	Jericho
Entity, Address, State or Province	NY
Entity, Address, Postal Zip Code	11753
City Area Code	516
Local Phone Number	237-6000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock
Trading Symbol	FLWS
Security Exchange Name	NASDAQ
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0001084869

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