- Total revenue for the quarter was
$179.6 million, compared with $191.6 million in the prior year
period, primarily reflecting the shift of the Easter holiday into
the Company’s fiscal fourth quarter as well as the impact of severe
winter weather throughout the period, particularly during the key
Valentine holiday.
- EBITDA, excluding stock-based
compensation, was $3.3 million, compared with $10.7 million in the
prior year period.
- EPS from continuing operations was a
loss of $0.02 per share, compared with a gain of $0.05 per share in
the prior year period.
1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), the world’s leading
florist and gift shop, today reported revenues from continuing
operations of $179.6 million for its fiscal 2014 third quarter,
ended March 30, 2014, compared with revenues from continuing
operations of $191.6 million in the prior year period. The Company
said the 6.3 percent decline was primarily driven by the shift of
the Easter holiday into its fiscal fourth quarter, compared with
the prior year when the holiday fell in the Company’s fiscal third
quarter, as well as the impact of severe winter weather beginning
in January and culminating with the winter storm that effected much
of the country at the key Valentine holiday.
Gross profit margin for the third quarter was 41.0 percent,
compared with 42.0 percent in the prior year period, reflecting
both product mix and higher customer credits associated with the
severe weather during the Valentine holiday. Operating expenses as
a percent of revenue were 42.5 percent compared with 39.5 percent
in the prior year period, reflecting the lower revenues during the
quarter as well as increased marketing spending during the
Valentine holiday period.
As a result of the aforementioned factors, EBITDA, excluding
stock-based compensation, was $3.3 million, compared with $10.7
million in the prior year period. Net loss from continuing
operations attributable to 1-800-FLOWERS.COM, Inc. was $1.4
million, or ($0.02) per share, compared with income of $3.1
million, or $0.05 per diluted share in the prior year period.
Jim McCann, CEO of 1-800-FLOWERS.COM, said, “The results of our
fiscal third quarter reflect the shift of the Easter holiday into
our fourth quarter this year, compared with last year when the
holiday was in our fiscal third quarter, as well as the impact of
the severe winter weather experienced across much of the country
beginning in January and culminating in the storm that hit on
February 13th, thereby disrupting the key Valentine holiday.
Regarding the Easter shift, we anticipate capturing all of the top
and bottom-line benefits associated with the holiday across all
three of our business segments during our current fiscal fourth
quarter.”
McCann said that the Company was proud of its efforts to help
customers deliver smiles during the Valentine holiday, despite the
challenging weather. “Our proactive planning for severe weather
around the Valentine holiday, which we dubbed ‘Operation Love
Storm,’ enabled us to utilize our unique distribution platform,
particularly our BloomNet network of professional florists, to
deliver millions of smiles for our customers throughout the
country, including regions hit hardest by the snow and ice
storms.
“In addition, throughout the holiday period, our dedicated
customer service associates – including our home agents and our
internal social-media communications teams – did an exemplary job
of responding to each and every customer inquiry and issue we
received. As a result, we were heartened by the post-holiday
accolades we received in the blogosphere for our open and
transparent communications policy on Twitter and Facebook. All of
these efforts reflect our many years of experience as the world’s
leading florist and gift shop as well as our unparalleled passion
for providing great service and delivering smiles. We believe this
focus positions us well to deliver solid year-over-year growth
during our current fiscal fourth quarter which features the spring
gifting occasions including Easter, Administrative Professionals
Week, Mother’s Day, Graduation and Wedding season and Father’s
Day.”
During the fiscal third quarter, the Company attracted 675,000
new customers. Approximately 1.6 million customers placed orders
during the quarter, of whom 58.4 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 that help deepen its relationships as their
trusted Florist and Gift Shop for all of their celebratory
occasions.
The Company provides selected financial results for its
1-800-FLOWERS.COM® 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 2014 third quarter,
revenues in this segment grew 1.0 percent to $122.3 million,
compared with $121.0 million in the prior year period. Revenues for
the quarter included approximately $2.7 million resulting from the
consolidation of the operating results of iFlorist, a UK floral
gift provider in which the Company increased its investment to a
majority position during the second quarter of fiscal 2014. Revenue
growth was impacted by the aforementioned shift of the Easter
holiday into the Company’s fiscal fourth quarter this year,
compared with the prior year period when the holiday fell in the
Company’s fiscal third quarter, as well as the impact of the severe
winter weather during the period. Gross margin for the quarter was
38.9 percent, down 110 basis points compared with 40.0 percent in
the prior year period, reflecting the impact of lower margins
associated with the aforementioned iFlorist business as well as
higher customer credits due to the impact of severe weather during
the Valentine holiday. As a result of these factors, coupled with
increased marketing spending for the Valentine holiday which was
negated by the February 13th storm, contribution margin was $11.2
million, compared with $13.9 million in the prior year period.
- BloomNet Wire
Service: Revenues for the quarter were $22.6 million,
essentially flat compared with $22.8 million in the prior year
period. Gross margin for the quarter increased 330 basis points to
53.2 percent, compared with 49.9 percent, 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 was $7.1 million, compared with $7.0 million in the prior
year period.
- Gourmet Food and
Gift Baskets: Revenues for the fiscal third quarter were
$35.3 million, compared with $48.3 million in the prior year
period. The decline in revenues primarily reflected the
aforementioned shift of the Easter holiday into the Company’s
fiscal fourth quarter as well as the severe winter weather during
the period and lower wholesale orders for the Company’s chocolate
brands. Gross margin was 38.7 percent, compared with 42.4 percent,
primarily reflecting the lower revenues in the quarter as well as
product mix. Segment contribution margin was a loss of $3.2
million, compared with a gain of $1.6 million in the prior year
period.
Company Guidance:
The Company said that, based on its results through the first
nine months of the fiscal year and including the aforementioned
impact of severe weather in January and February that culminated
with the winter storms on the Valentine holiday, it expects to
achieve revenue growth across all three of its business segments
for the year with consolidated revenue growth for the year in the
low-to-mid-single-digit range. Regarding bottom-line results, the
Company anticipates EBITDA and EPS for the year will be flat to
down slightly compared with the prior year. Free Cash Flow for the
year is now expected to be in a range of approximately $10-to-$15
million.
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 and Adjusted EBITDA from
continuing operations 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 35 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 has been honored in Internet Retailer’s “Hot 500
Guide” for 2013. The 1-800-FLOWERS.COM mobile commerce site was
recognized with a Gold Award in the Ecommerce/Shopping category of
the 2012 Horizon Interactive Awards. 1-800-FLOWERS.COM was also
rated number one vs. competitors for customer service by
STELLAService in 2011 and named by the E-Tailing Group as one of
only nine online retailers out of 100 benchmarked to meet the
criteria for Excellence in Online Customer Service in 2011. 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 Company’s Gourmet Foods and Gift
Baskets offering includes gifts such as 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® confections brands (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.comsm (www.fruitbouquets.com); top
quality steaks and chops from Stock Yards® (www.stockyards.com).
The Company’s Celebrations® brand (www.celebrations.com) is a
leading online destination for party planning ideas and tips and
its FineStationery.com® (www.finestationery.com) brand provides
premium branded customizable invitations and personal stationery
for all occasions. 1-800- FLOWERS.COM, Inc. is involved in a broad
range of corporate social responsibility initiatives including
continuous expansion and enhancement of its
environmentally-friendly “green” programs as well as various
philanthropic and charitable efforts. 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 revenue growth guidance for fiscal 2014 including
revenue growth across all three of its business segments with
consolidated revenue growth in the low-to-mid-single digit range
and bottom-line results, including EBITDA and EPS flat to down
slightly, compared with the prior year; its ability to generate
Free Cash Flow in a range of approximately $10-to-$15 million for
the year; the Company’s ability to recoup the revenues associated
with the Easter holiday in the fourth quarter of its fiscal 2014
year; its ability to manage the seasonality of its businesses; 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 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, Tuesday, April 29,
2014 at 11:00 a.m. (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 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 for 48
hours beginning at 2:00 p.m. EDT on the day of the call at:
1-855-859-2056 or 1-404-537-3406; Conference ID: 27099178
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)
March 30,
2014
June 30,
2013
Assets Current assets: Cash and equivalents $ 1,314 $
154 Receivables, net 17,092 14,957 Inventories 61,441 55,756
Deferred tax assets 7,780 5,746 Prepaid and other 5,874 9,941
Current assets of discontinued operations 1,133 6,095
Total current assets 94,634 92,649 Property, plant and
equipment, net 55,886 52,943 Goodwill 54,008 47,943 Other
intangibles, net 45,176 43,276 Deferred tax assets 1,755 2,127
Other assets 8,264 10,086 Non-current assets of discontinued
operations 1,262 1,049 Total assets $ 260,985 $
250,073
Liabilities and equity Current liabilities:
Accounts payable $ 18,335 $ 26,235 Accrued expenses 54,941 45,044
Current maturities of long-term debt and
obligations under capital leases
394
-
Current liabilities of discontinued
operations
940
4,484
Total current liabilities 74,610 75,763 Other
liabilities 5,565 5,039 Total liabilities
80,175 80,802 Total stockholders’ equity 177,584
169,271 Noncontrolling interest in subsidiary 3,226 -
Total equity 180,810 169,271 Total liabilities and
equity $ 260,985 $ 250,073
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
Consolidated Statements of
Operations
(In thousands, except for per share
data)
Three Months Ended Nine Months Ended March 30,
2014
March 31,
2013
March 30,
2014
March 31,
2013
Net revenues: E-commerce (combined online and telephonic) $
139,918 $ 144,555 $ 400,893 $ 397,441 Other 39,673
47,027 168,083 165,093
Total net revenues 179,591 191,582 568,976 562,534 Cost of revenues
106,048 111,125 333,159
328,171 Gross profit 73,543 80,457 235,817 234,363
Operating expenses: Marketing and sales 51,581 51,439
143,716 138,645 Technology and development 6,045 5,613 16,762
16,372 General and administrative 13,865 13,757 41,944 40,172
Depreciation and amortization 4,932 4,838
14,657 13,806 Total operating
expenses 76,423 75,647 217,079
208,995 Operating income (loss) (2,880 ) 4,810
18,738 25,368 Interest expense, net 249 199
959 1,024 Income (loss) from
continuing operations before income taxes (3,129 ) 4,611 17,779
24,344 Income tax expense (benefit) (1,391 ) 1,491
6,590 9,161 Income (loss) from
continuing operations (1,738 ) 3,120
11,189 15,183 Income (loss) from discontinued
operations, net of tax 75 (481 ) (381 ) (1,140 ) Adjustment to loss
on sale of discontinued operations, net of tax (62 )
- 815 - Income (loss) from
discontinued operations, net of tax 13 (481 )
434 (1,140 ) Net income (loss) (1,725 )
2,639 11,623 14,043 Less:
Net loss attributable to noncontrolling interest (300 )
- (341 ) - Net income (loss)
attributable to 1-800-FLOWERS.COM, Inc. $ (1,425 ) $ 2,639 $
11,964 $ 14,043 Basic income (loss) per share
attributable to 1-800-FLOWERS.COM, Inc. Continuing operations $
(0.02 ) $ 0.05 $ 0.18 $ 0.24 Discontinued operations 0.00 (0.01 )
0.01 (0.02 ) Net income (loss) $ (0.02 ) $ 0.04 $ 0.19 $ 0.22
Diluted income (loss) per share attributable to
1-800-FLOWERS.COM, Inc.
64,218
64,218
Continuing operations $ (0.02 ) $ 0.05 $ 0.17 $ 0.23 Discontinued
operations 0.00 (0.01 ) 0.01 (0.02 ) Net income (loss) $ (0.02 ) $
0.04 $ 0.18 $ 0.21 Weighted average shares used in the
calculation of income (loss) per common share Basic 64,214
64,256 64,010 64,528
Diluted 64,214 66,111
66,429 66,647
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
Consolidated Statements of Cash
Flows
(In thousands)
Nine Months Ended March 30, March 31, 2014
2013
Operating activities Net income $ 11,623 $
14,043 Reconciliation of net income to net cash provided by
operations:
Operating activities of discontinued
operations
869
(10
)
Adjustment to loss on sale of discontinued
ops
(815
)
-
Depreciation and amortization 14,657 13,839 Amortization of
deferred financing costs 229 343 Deferred income taxes (1,376 )
(1,337 ) Bad debt expense 1,027 762 Stock based compensation 3,491
3,397 Other non-cash items 433 213 Other non-cash items:
Receivables (5,492 ) (10,500 ) Inventories (5,585 ) (4,133 )
Prepaid and other 4,162 2,226 Accounts payable and accrued expenses
197 7,694 Other assets (274 ) (464 ) Other liabilities 426
662
Net cash provided by operating
activities 23,572 26,735
Investing activities
Acquisitions, net of cash acquired (1,385 ) (2,000 ) Capital
expenditures, net of non-cash expenditures (14,458 ) (15,118 )
Purchase of investment 8 (1,337 ) Other 10 22 Investing activities
of discontinued operation 500 -
Net
cash used in investing activities (15,325 ) (18,433 )
Financing activities Acquisition of treasury stock (7,423 )
(8,921 ) Proceeds from exercise of employee stock options 334 67
Proceeds from bank borrowings 120,000 47,000 Repayment of bank
borrowings (120,002 ) (58,250 ) Repayment of capital lease
obligations - (48 ) Other 4 -
Net
cash used in financing activities (7,087 )
(20,152 ) Net change in cash and equivalents 1,160 (11,850 )
Cash and equivalents: Beginning of period 154
28,854 End of period $ 1,314 $ 17,004
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
Segment Information
(in thousands)
Three Months Ended
Nine Months Ended
March 30,
March 31,
March 30,
March 31,
2014
2013 % Change
2014
2013 % Change
Net revenues from continuing
operations: 1-800-Flowers.com Consumer Floral $ 122,256 $
121,006 1.0 % $ 290,938 $ 285,608 1.9 % BloomNet Wire Service
22,571 22,819 -1.1 % 62,829 61,320 2.5 % Gourmet Food & Gift
Baskets 35,330 48,298 -26.8 % 216,193 216,509 -0.1 % Corporate (*)
202 200 1.0 % 600 594 1.0 % Intercompany eliminations (768 )
(741 ) -3.6 % (1,584 ) (1,497 ) -5.8 %
Total net revenues from continuing operations $ 179,591
$ 191,582 -6.3 % $ 568,976 $ 562,534
1.1 % Three Months Ended
Nine Months Ended
March 30, March 31, March 30,
March 31, 2014 2013 % Change 2014 2013
% Change
Gross profit from continuing operations:
1-800-Flowers.com Consumer Floral $ 47,565 $ 48,455 -1.8 % $
113,166 $ 112,701 0.4 % 38.9 % 40.0 % 38.9 % 39.5 % BloomNet
Wire Service 12,019 11,382 5.6 % 33,566 30,974 8.4 % 53.2 % 49.9 %
53.4 % 50.5 % Gourmet Food & Gift Baskets 13,686 20,472
-33.1 % 88,328 90,039 -1.9 % 38.7 % 42.4 % 40.9 % 41.6 %
Corporate (*)
273
148
84.5
%
757
649
16.6
%
135.1
%
74.0
%
126.2
%
109.3
%
Total gross profit from continuing operations $
73,543 $ 80,457 -8.6 % $ 235,817 $ 234,363
0.6 % (41.0 %) (42.0 %) (41.4 %)
(41.7 %)
Three Months Ended
Nine Months Ended
March 30, March 31, March 30,
March 31, 2014 2013 % Change 2014 2013 %
Change
EBITDA from continuing operations, excluding
stock-based compensation: Category Contribution Margin
(**) 1-800-Flowers.com Consumer Floral $ 11,165 $ 13,902 -19.7
% $ 26,274 $ 31,074 -15.4 % BloomNet Wire Service 7,079 6,952 1.8 %
20,043 18,797 6.6 % Gourmet Food & Gift Baskets (3,180 )
1,605 -298.1 % 25,817 26,926
-4.1 % Category Contribution Margin Subtotal 15,064 22,459
-32.9 % 72,134 76,797 -6.1 % Corporate (*) (13,012 )
(12,811 ) -1.6 % (38,739 ) (37,623 ) -3.0 %
EBITDA
from continuing operations $ 2,052 $ 9,648 -78.7 % $ 33,395 $
39,174 -14.8 % Add: Stock-based compensation 1,279
1,093 17.1 % 3,491 3,397
2.8 %
EBITDA from continuing operations, excluding stock-based
compensation
$
3,331
$
10,741
-69.0
%
$
36,886
$
42,571
-13.4
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
(in thousands)
Three Months Ended Nine Months Ended March 30, 2014
March 31, 2013 March 30, 2014 March 31, 2013
Reconciliation of income (loss) from continuing operations to
income (loss) from continuing operations attributable to
1-800-FLOWERS.COM, Inc. Income (loss) from continuing
operations $ (1,738 ) $ 3,120 $ 11,189 $ 15,183 Less: Net
loss attributable to noncontrolling interest (300 ) -
(341 ) -
Income (loss) from continuing operations
attributable to 1-800-FLOWERS.COM, Inc. $ (1,438 ) $ 3,120 $
11,530 $ 15,183 Three
Months Ended
Nine Months Ended
March 30,
2014
March 31,
2013
March 30,
2014
March 31,
2013
Reconciliation of Income (loss) from
continuing operations attributable to1-800-FLOWERS.COM, Inc.
to EBITDA from continuing operations, excludingstock-based
compensation (**):
Income (loss) from continuing operations attributable to
1-800-Flowers.com, Inc. $ (1,438 ) $ 3,120 $11,530 $ 15,183 Add:
Interest expense, net 249 199 959 1,024 Depreciation and
amortization 4,932 4,838 14,657 13,806
Income tax expense
1,491
6,590
9,161
Less:
Income tax benefit
1,391
-
-
-
Net loss attributable to noncontrolling interest 300
- 341 EBITDA from continuing operations $ 2,052 $
9,648 $33,395 $ 39,174 Add: Stock-based compensation 1,279
1,093 3,491 3,397
EBITDA from continuing
operations, excluding stock-based compensation $ 3,331 $
10,741 $36,886 $ 42,571
(*)
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.
(**)
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.
Click here to subscribe to Mobile Alerts for 1-800-Flowers.
1-800-FLOWERS.COM, Inc.Investors:Joseph D. Pititto,
516-237-6131invest@1800flowers.comorMedia:Yanique Woodall,
516-237-6028ywoodall@1800flowers.com
1 800 Flowers Com (NASDAQ:FLWS)
Historical Stock Chart
From Jun 2024 to Jul 2024
1 800 Flowers Com (NASDAQ:FLWS)
Historical Stock Chart
From Jul 2023 to Jul 2024