- Total net revenues increased 12.2 percent to $278.8 million
compared with $248.4 million in the prior year period.
- Net loss was $9.7 million, or a loss of $0.15 per share.
Excluding transaction costs, adjusted net loss1 was $9.0 million,
or a loss of $0.14 per share, compared with a net loss of $8.2
million, or a loss of $0.13 per share in the prior year
period.
- Adjusted EBITDA1 was a loss of $2.4 million, compared with a
loss of $4.4 million in the prior year period.
(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 (“Adjusted”) results to applicable GAAP results.)
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of
gifts designed to help customers express, connect and celebrate,
today reported results for its Fiscal 2020 third quarter ended
March 29, 2020.
Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said, “Our solid
results for the fiscal third quarter reflect the continuation of
the momentum we saw throughout the first half of our fiscal year.
Strong consolidated revenue growth of 12.2 percent was driven by
increases across all three of our business segments. In our Gourmet
Foods and Gift Baskets segment, revenues increased 27.1 percent,
reflecting continuing positive trends in everyday gifting occasions
and increased self-consumption as well as contributions from
Shari’s Berries, which we acquired in August 2019.
“In our Consumer Floral segment, the 1-800-Flowers.com brand
further extended its market leading position with revenue growth of
5.4 percent, driven by double-digit revenue growth during the
Valentine’s Day holiday period. Our BloomNet business also
continued to increase its market share position with revenues
growing 7.9 percent in the quarter. In both Consumer Floral and
BloomNet, top and bottom-line results for the quarter would have
been even stronger were it not for softer consumer demand in the
last few weeks of March related to the impact of the Covid-19
crisis. We saw this pattern reverse as we entered our current
fiscal fourth quarter and demand has increased significantly as
consumers are increasingly turning to the 1-800-Flowers brand to
help them express themselves and stay connected.”
McCann added, “As we navigate these trying and uncertain times,
the health and safety of our associates, our BloomNet florists, our
vendors and our customers is paramount to us. In accordance with
CDC and other health agency guidelines we continue to make the
necessary changes across our operations, including manufacturing,
warehouse and distribution, to ensure the safety and wellbeing of
our associates while maintaining our business continuity. As
always, our mission is to engage with our customers to help them
express and connect – sentiments that are increasingly important
during this difficult time.”
Fiscal 2020 Third Quarter
Results:
For the third quarter of 2020, total net revenues increased 12.2
percent to $278.8 million compared with $248.4 million in the prior
year period. The strong performance was driven by net revenue
growth in all three business segments, with Gourmet Foods and Gift
Baskets up 27.1 percent, Consumer Floral up 5.4 percent, and
BloomNet up 7.9 percent compared to the prior year period.
Gross profit margin for the quarter was 38.5 percent, a decrease
of 80 basis points compared with gross profit margin of 39.3
percent in the prior year period. Operating expenses as a percent
of total revenues were 42.4 percent, an improvement of 270 basis
points compared with 45.1 percent in the prior year period.
Excluding the impacts of the Company’s non-qualified deferred 401k
compensation plan and costs associated with its planned acquisition
of PersonalizationMall.com, operating expenses, as a percentage of
total revenues, were 43.1% compared with 44.6% in the prior
year.
Strong top-line growth and improved operating efficiency
resulted in an Adjusted EBITDA1 loss of $2.4 million compared with
an Adjusted EBITDA1 loss of $4.4 million in the prior year period.
Net loss for the quarter was $9.7 million, or loss of $0.15 per
share. Excluding certain transaction costs, net loss for the
quarter was $9.0 million, or a loss of $0.14 per share, compared
with a net loss of $8.2 million, or loss of $0.13 per share, in the
prior year period.
SEGMENT RESULTS:
The Company provides fiscal 2020 third quarter selected
financial results for its Gourmet Foods and Gift Baskets, Consumer
Floral and BloomNet segments in the tables attached to this release
and as follows:
- Gourmet Foods and Gift Baskets: Revenues for the quarter
were $95.9 million, an increase of 27.1 percent compared with
revenues of $75.4 million in the prior year period reflecting
continued growth in everyday gifting occasions and self-consumption
as well as contributions from the Shari’s Berries brand, which the
Company acquired in August 2019. Gross profit margin was 34.4
percent, compared with 35.6 percent in the prior year period. As a
result of these factors, segment contribution margin1 loss improved
12.9 percent to a loss of $6.3 million, compared with a segment
contribution margin loss of $7.2 million in the prior year
period.
- Consumer Floral: Revenues increased 5.4 percent to
$152.6 million, compared with $144.8 million in the prior year
period. This primarily reflects double-digit growth for the
Valentine’s Day holiday period partially offset by softer demand in
the last few weeks of the quarter resulting from the impact of the
Covid-19 crisis. Gross margin was 39.3 percent, compared with 38.9
percent in the prior year period. Segment contribution margin1 was
$15.4 million, unchanged compared with the prior year period.
- BloomNet Wire Service: Revenues for the quarter
increased 7.9 percent to $30.4 million, compared with $28.2 million
in the prior year period. Gross profit margin was 47.3 percent,
compared with 49.9 percent in the prior year period. Segment
contribution margin1 increased 5.7 percent to $10 million, compared
with $9.5 million in the prior year period.
COMPANY GUIDANCE
Based on the continued strong growth momentum that the Company
has experienced through the first three quarters of its fiscal
year, combined with the positive trends it has seen through the
first four weeks of the current fiscal fourth quarter, the Company
is reaffirming its growth guidance for fiscal 2020 as follows:
- Total consolidated revenue growth of 8-9 percent compared with
the prior year, including approximately 6-to-7 percent organic
revenue growth combined with contributions from the Shari’s Berries
brand, which the Company acquired in August 2019;
- EPS growth in a range of 15-to-17 percent, compared with the
prior year;
- Adjusted EBITDA1 growth in a range of 13-to-15 percent,
compared with the prior year, and;
- Free Cash Flow for the year in a range of $45-to-$50
million.
Note: The Company’s guidance for Fiscal Year 2020 EPS and
Adjusted EBITDA1 excludes certain one-time costs, expected to be
recognized in the fourth quarter, associated with the closing of
its Harry & David retail stores and costs associated with its
planned acquisition of PersonalizationMall.com.
RESPONSE TO COVID-19
In response to the global pandemic, 1-800-FLOWERS.COM, Inc. has
taken necessary actions to ensure employee safety and business
continuity, informed by the guidelines set forth by local, state
and federal government and health officials. These initiatives
include developing a “Pandemic Preparedness and Response Plan,”
establishing an internal “nerve center” to allow for unobstructed
communication and coordination throughout the business, designing
workstream teams to promote workforce protection and supply chain
management, and dedicating resources to support customers,
franchisees, and florists.
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.
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
We define Segment Contribution Margin as earnings before
interest, taxes, depreciation and amortization, before the
allocation of corporate overhead expenses. See Selected Financial
Information for details on how Segment Contribution Margin was
calculated for each period presented. When viewed together with our
GAAP results, we believe Segment Contribution Margin provides
management and users of the financial statements meaningful
information about the performance of our business segments. Segment
Contribution Margin is 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 the Segment Contribution
Margin is that it is an incomplete measure of profitability as it
does not include all operating expenses or non-operating income and
expenses. Management compensates for these limitations when using
this measure 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) 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 EPS 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 customers express, connect and celebrate. The Company’s
Celebrations Ecosystem features our all-star family of brands,
including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s
Cookies®, Harry & David®, Shari’s Berries®, FruitBouquets.com®,
Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery℠,
Personalization Universe®, Simply Chocolate®, and Goodsey®. We also
offer top-quality steaks and chops from Stock Yards®. 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 wire service providing a broad-range of
products and services designed to help professional florists grow
their businesses profitably; Napco℠, a resource for floral gifts
and seasonal décor; and DesignPac Gifts, LLC, a manufacturer of
gift baskets and towers. 1-800-FLOWERS.COM, Inc. was recognized as
the 2019 Mid-Market Company of the Year by CEO Connection. 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.
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,” “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 fiscal-year 2020; the impact of the Covid-19 pandemic on the
Company; its ability to leverage its operating platform and reduce
operating expense ratio; its ability to successfully integrate
acquired businesses and assets; 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. 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. The lack of such reconciling information should be
considered when assessing the impact of such disclosures. 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.
Conference Call:
The Company will conduct a conference call to discuss the above
details and attached financial results today, Thursday, April 30,
2020 at 8:00 a.m. (ET). The conference call will be available via
live webcast from the Investor Relations section of the Company’s
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 call’s completion. A replay of the call can
be accessed beginning at 2:00 p.m. (ET) on the day of the call
through May 7, 2020, at: (US) 1-877-344-7529; (International)
1-412-317-0088; enter conference ID #: 10142660.
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)
March 29, 2020
June 30, 2019
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
232,115
$
172,923
Trade receivables, net
26,217
12,374
Inventories
74,037
92,361
Prepaid and other
21,312
25,580
Total current assets
353,681
303,238
Property, plant and equipment, net
166,399
166,681
Operating lease right-of-use assets
70,284
-
Goodwill
74,711
62,590
Other intangibles, net
66,500
59,615
Other assets
17,054
14,316
Total assets
$
748,629
$
606,440
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
37,314
$
25,704
Accrued expenses
116,815
96,793
Current maturities of long-term debt
5,000
5,000
Current portion of long-term operating
lease liabilities
9,524
-
Total current liabilities
168,653
127,497
Long-term debt
88,648
91,973
Long-term operating lease liabilities
64,251
-
Deferred tax liabilities
27,300
28,898
Other liabilities
11,766
15,361
Total liabilities
360,618
263,729
Total stockholders’ equity
388,011
342,711
Total liabilities and stockholders’
equity
$
748,629
$
606,440
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
Condensed Consolidated
Statements of Income (Loss)
(In thousands, except for per
share data)
(unaudited)
Three Months Ended
Nine Months Ended
March 29,
2020
March 31,
2019
March 29,
2020
March 31,
2019
Net revenues:
E-Commerce
$
231,851
$
204,362
$
847,985
$
780,883
Other
46,925
44,051
223,696
208,342
Total net revenues
278,776
248,413
1,071,681
989,225
Cost of revenues
171,324
150,893
618,911
568,338
Gross profit
107,452
97,520
452,770
420,887
Operating expenses:
Marketing and sales
78,606
71,163
262,849
243,781
Technology and development
11,900
11,511
34,436
32,696
General and administrative
20,031
22,447
64,187
64,480
Depreciation and amortization
7,803
7,028
23,268
22,840
Total operating expenses
118,340
112,149
384,740
363,797
Operating income (loss)
(10,888)
(14,629)
68,030
57,090
Interest (income) expense, net
147
(30)
1,727
2,390
Other (income) expense, net
2,605
(1,285)
1,714
(293)
Income (loss) before income taxes
(13,640)
(13,314)
64,589
54,993
Income tax expense (benefit)
(3,983)
(5,073)
15,365
11,922
Net income (loss)
$
(9,657)
$
(8,241)
$
49,224
$
43,071
Basic net income (loss) per common
share
$
(0.15)
$
(0.13)
$
0.76
$
0.67
Diluted net income (loss) per common
share
$
(0.15)
$
(0.13)
$
0.74
$
0.65
Weighted average shares used in the
calculation of net income (loss) per common share:
Basic
64,348
64,194
64,517
64,383
Diluted
64,348
64,194
66,378
66,456
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
Consolidated Statements of
Cash Flows
(In thousands)
(unaudited)
Nine months ended
March 29, 2020
March 31, 2019
Operating activities:
Net income
$
49,224
$
43,071
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
23,268
22,840
Amortization of deferred financing
costs
486
671
Deferred income taxes
(1,597
)
811
Bad debt expense
1,201
1,018
Stock-based compensation
6,441
4,531
Other non-cash items
(23
)
(301
)
Changes in operating items:
Trade receivables
(15,044
)
(7,249
)
Inventories
19,353
14,448
Prepaid and other
3,148
2,675
Accounts payable and accrued expenses
31,442
14,741
Other assets and liabilities
(557
)
(251
)
Net cash provided by operating
activities
117,342
97,005
Investing activities:
Acquisitions, net of cash acquired
(20,500
)
-
Capital expenditures, net of non-cash
expenditures
(22,282
)
(16,845
)
Purchase of equity investments
(1,176
)
-
Net cash used in investing activities
(43,958
)
(16,845
)
Financing activities:
Acquisition of treasury stock
(10,667
)
(14,765
)
Proceeds from exercise of employee stock
options
285
929
Proceeds from bank borrowings
20,000
30,000
Repayment of notes payable and bank
borrowings
(23,750
)
(37,187
)
Debt issuance cost
(60
)
-
Net cash used in financing activities
(14,192
)
(21,023
)
Net change in cash and cash
equivalents
59,192
59,137
Cash and cash equivalents:
Beginning of period
172,923
147,240
End of period
$
232,115
$
206,377
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(in thousands)
(unaudited)
Three Months Ended
March 29,
2020
Transaction
Costs
As Adjusted
(non-GAAP)
March 29, 2020
March 31,
2019
%
Change
Net revenues:
1-800-Flowers.com Consumer Floral
$
152,620
$
152,620
$
144,821
5.4
%
BloomNet Wire Service
30,414
30,414
28,185
7.9
%
Gourmet Food & Gift Baskets
95,906
95,906
75,445
27.1
%
Corporate
112
112
263
-57.4
%
Intercompany eliminations
(276
)
(276
)
(301
)
8.3
%
Total net revenues
$
278,776
$
-
$
278,776
$
248,413
12.2
%
Gross profit:
1-800-Flowers.com Consumer Floral
$
59,943
$
59,943
$
56,334
6.4
%
39.3
%
39.3
%
38.9
%
BloomNet Wire Service
14,401
14,401
14,071
2.3
%
47.3
%
47.3
%
49.9
%
Gourmet Food & Gift Baskets
32,956
32,956
26,848
22.8
%
34.4
%
34.4
%
35.6
%
Corporate
152
152
267
-43.1
%
135.7
%
135.5
%
101.5
%
Total gross profit
$
107,452
$
-
$
107,452
$
97,520
10.2
%
38.5
%
-
38.5
%
39.3
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
1-800-Flowers.com Consumer Floral
$
15,439
$
-
$
15,439
$
15,364
0.5
%
BloomNet Wire Service
10,025
-
10,025
9,480
5.7
%
Gourmet Food & Gift Baskets
(6,275
)
-
(6,275
)
(7,202
)
12.9
%
Segment Contribution Margin Subtotal
19,189
-
19,189
17,642
8.8
%
Corporate (b)
(22,274
)
911
(21,363
)
(25,243
)
15.4
%
EBITDA (non-GAAP)
(3,085
)
911
(2,174
)
(7,601
)
71.4
%
Add: Stock-based compensation
2,396
2,396
1,903
25.9
%
Add: Comp charge related to NQ Plan
Investment Appreciation/(Depreciation)
(2,611
)
(2,611
)
1,294
-301.8
%
Adjusted EBITDA (non-GAAP)
$
(3,300
)
$
911
$
(2,389
)
$
(4,404
)
-45.8
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(in thousands)
(unaudited)
Nine Months Ended
March 29,
2020
Transaction
Costs
As Adjusted
(non-GAAP)
March 29, 2020
March 31,
2019
%
Change
Net revenues:
1-800-Flowers.com Consumer Floral
$
359,104
$
-
$
359,104
$
338,003
6.2
%
BloomNet Wire Service
81,576
81,576
75,613
7.9
%
Gourmet Food & Gift Baskets
631,705
631,705
575,966
9.7
%
Corporate
472
472
845
-44.1
%
Intercompany eliminations
(1,176
)
(1,176
)
(1,202
)
2.2
%
Total net revenues
$
1,071,681
$
-
$
1,071,681
$
989,225
8.3
%
Gross profit:
1-800-Flowers.com Consumer Floral
$
140,537
$
-
$
140,537
$
131,254
7.1
%
39.1
%
39.1
%
38.8
%
BloomNet Wire Service
40,520
40,520
38,306
5.8
%
49.7
%
49.7
%
50.7
%
Gourmet Food & Gift Baskets
271,360
271,360
250,550
8.3
%
43.0
%
43.0
%
43.5
%
Corporate
353
353
777
-54.6
%
74.8
%
74.8
%
92.0
%
Total gross profit
$
452,770
$
-
$
452,770
$
420,887
7.6
%
42.2
%
-
42.2
%
42.5
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
1-800-Flowers.com Consumer Floral
$
34,853
$
-
$
34,853
$
32,667
6.7
%
BloomNet Wire Service
27,516
-
27,516
25,375
8.4
%
Gourmet Food & Gift Baskets
100,512
-
100,512
89,191
12.7
%
Segment Contribution Margin Subtotal
162,881
-
162,881
147,233
10.6
%
Corporate (b)
(71,583
)
911
(70,672
)
(67,303
)
-5.0
%
EBITDA (non-GAAP)
91,298
911
92,209
79,930
15.4
%
Add: Stock-based compensation
6,441
6,441
4,531
42.2
%
Add: Comp charge related to NQ Plan
Investment Appreciation/(Depreciation)
(1,653
)
(1,653
)
327
-605.5
%
Adjusted EBITDA (non-GAAP)
$
96,086
$
911
$
96,997
$
84,788
14.4
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands) (unaudited)
Reconciliation of net income (loss) to
adjusted net
income (loss) (non-GAAP):
Three Months Ended
Nine Months Ended
March 29,
2020
March 31,
2019
March 29,
2020
March 31,
2019
Net income (loss)
$
(9,657
)
$
(8,241
)
$
49,224
$
43,071
Adjustments to reconcile net income (loss)
to adjusted net income (loss) (non-GAAP)
Add: Personalization Mall transaction
costs
911
911
Deduct: Income tax (benefit) on
transaction costs
(217
)
(217
)
Adjusted net income (loss)
(non-GAAP)
$
(8,963
)
$
(8,241
)
$
49,918
$
43,071
Basic and diluted net income (loss) per
common share
Basic
$
(0.15
)
$
(0.13
)
$
0.76
$
0.67
Diluted
$
(0.15
)
$
(0.13
)
$
0.74
$
0.65
Basic and diluted adjusted net income
(loss) per common share (non-GAAP)
Basic
$
(0.14
)
$
(0.13
)
$
0.77
$
0.67
Diluted
$
(0.14
)
$
(0.13
)
$
0.75
$
0.65
Weighted average shares used in the
calculation of net income (loss) and adjusted net income (loss) per
common share
Basic
64,348
64,194
64,517
64,383
Diluted
64,348
64,194
66,378
66,456
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
(continued)
Reconciliation of net income (loss) to
adjusted EBITDA
(non-GAAP):
Three Months Ended
Nine Months Ended
March 29,
2020
March 31,
2019
March 29,
2020
March 31,
2019
Net income (loss)
$
(9,657
)
$
(8,241
)
$
49,224
$
43,071
Add:
Interest expense, net
2,752
(1,315
)
3,441
2,097
Depreciation and amortization
7,803
7,028
23,268
22,840
Income tax expense
15,365
11,922
Less:
Income tax benefit
3,983
5,073
EBITDA
(3,085
)
(7,601
)
91,298
79,930
Add: Transaction costs
911
911
Add: Stock-based compensation
2,396
1,903
6,441
4,531
Add: Compensation charge related to NQ
plan investment appreciation/(depreciation)
(2,611
)
1,294
(1,653
)
327
Adjusted EBITDA
$
(2,389
)
$
(4,404
)
$
96,997
$
84,788
(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.
FLWS-CP
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200430005204/en/
Investor Contact: Joseph D. Pititto
(516) 237-6131 E-mail: invest@1800flowers.com Media Contact: Kathleen Waugh (516) 237-6028
kwaugh@1800flowers.com
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