- Total net revenues increased 9.0 percent to $309.4 million,
compared with $283.8 million in the prior year period. This revenue
growth was on top of the 51.5 percent revenue growth reported in
the Company’s year-ago first quarter.
- Net loss for the quarter was $13.2 million, or ($0.20) per
share. Adjusted net loss1 was $12.9 million, or ($0.20) per share,
compared with a net loss of $9.8 million, or ($0.15) per share, and
adjusted net loss of $6.5 million, or ($0.10) per share, in the
prior year period.
- Adjusted EBITDA1 loss for the quarter was $5.3 million,
compared with adjusted EBITDA of $3.2 million in the prior year
period.
- Company reaffirms its full-year guidance including revenue
growth of 10.0 percent-to-12.0 percent and adjusted EBITDA growth
of 5.0 percent-to-8.0 percent.
(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.)
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading e-commerce
provider of products and services designed to inspire more human
expression, connection, and celebration, today reported results for
its fiscal 2022 first quarter ended September 26, 2021.
Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said “We are very
pleased to report strong revenue growth for what was one of our
most challenging year-over-year comparisons. Importantly, our 9.0
percent revenue growth for the quarter was on top of the 51.5
percent revenue growth we reported in the first quarter last year.
This illustrates the strong growth momentum that we have been
building over the past several years. As we had anticipated, the
first quarter this year started out somewhat slowly with demand
gradually ramping up resulting in double-digit revenue growth for
the month of September.”
McCann said that increased recognition and relevance for its
family of brands for everyday gifting and connective occasions, as
well as its expanded product offering, including
PersonalizationMall.com, were
primary drivers of the strong revenue growth. “We also continued
to see strong growth in our Celebrations Passport loyalty program,
which helps drive increased purchase frequency, retention, and
life-time value along with solid growth in customers buying from
multiple product categories and multiple brands.”
McCann noted that, “the combination of these positive trends
positions us well to deliver on our guidance for double-digit
revenue growth in fiscal 2022 on top of the tremendous growth we
achieved last year. As we head into our fiscal second quarter,
which includes the important year-end holiday season, we are
cognizant of several significant headwinds affecting the
marketplace, including limited availability and increased costs for
labor, increased digital marketing costs, and wide-spread delays
and rising costs for shipping.
“We have implemented a number of initiatives designed to help
mitigate the impact of these issues and take advantage of the
strong ecommerce demand we anticipate during the key holiday
season. These initiatives include strategic pricing programs across
our brands, as well as the significant investments we have made in
our operating platform, including pre-building inventory, which
leverages our expanded cold-storage facilities, and deploying
automation in our warehouse and distribution facilities to increase
throughput and reduce reliance on seasonal labor. As a result, we
are well positioned to help our customers connect and express
themselves with the important people in their lives for both
everyday occasions and the key holiday season and drive solid top
and bottom-line performance.”
First Quarter 2022 Financial
Results
Total consolidated revenues increased 9.0 percent to $309.4
million, compared with total consolidated revenues of $283.8
million in the prior year period, reflecting strong ecommerce
growth of 10.3 percent including contributions from
PersonalizationMall, which the Company acquired on August 3, 2020.
Excluding the non-comparable five weeks of contribution from
PersonalizationMall in the quarter, total net revenues increased
4.3 percent, compared with the prior year period.
Gross profit margin for the quarter was 40.6 percent, a decline
of 10 basis points compared with 40.7 percent in the prior year
period. Operating expenses as a percent of total revenues,
increased 170 basis points to 47.1 percent of total sales, compared
with 45.4 percent of total sales in the prior year period primarily
reflecting higher, year-over-year digital marketing rates.
The combination of these factors resulted in an adjusted EBITDA
loss of $5.3 million, compared with adjusted EBITDA of $3.2 million
in the prior year period. Net loss for the quarter was $13.2
million, or ($0.20) per share. Adjusted net loss was $12.9 million,
or ($0.20) per share, compared with a net loss of $9.8 million, or
($0.15) per share, and adjusted net loss of $6.5 million, or
($0.10) per share, in the prior year period.
Segment Results:
The Company provides 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
increased 8.4 percent to $97.5 million, compared with $89.9 million
in the prior year period. The strong growth was primarily driven by
increased demand for the Company’s gourmet food gift brands for
everyday occasions. Gross profit margin was 35.0 percent, a decline
of 390 basis points compared with 38.9 percent in the prior year
period, primarily reflecting increased costs for labor and
transportation. Segment contribution margin was a loss of $7.7
million, compared with a loss of $2.6 million, and an adjusted loss
of $3.0 million, in the prior year period, reflecting higher
year-over-year marketing costs as well as the reduced gross
margin.
- Consumer Floral and Gifts: Total revenues in this
segment increased 12.2 percent to $181.2 million, compared with
$161.5 million in the prior year period. Excluding the
non-comparable five weeks of contribution from PersonalizationMall
in the quarter, total revenues in this segment increased 3.9
percent. Gross profit margin increased 130 basis points to 41.9
percent, compared with 40.6 percent in the prior year period,
primarily reflecting contributions from PersonalizationMall.
Segment contribution margin was $19.2 million, essentially
unchanged compared with the prior year period, primarily reflecting
increased digital marketing costs offset by contributions from
PersonalizationMall.
- BloomNet: Revenues for the quarter were $30.8 million, a
decline of 5.8 percent, compared with $32.7 million in the prior
year period, primarily reflecting delays in hard goods shipments as
well as reduced order volume from third-party online floral
companies. Gross profit margin increased 470 basis points to 50.0
percent, compared with 45.3 percent in the prior year period,
primarily reflecting product mix. Segment contribution margin
increased 4.2 percent to $10.9 million, compared with $10.4 million
in the prior year period.
Company Guidance
The Company is reaffirming its guidance for its fiscal 2022
year, which includes:
- Total revenue growth of 10.0 percent-to-12.0 percent compared
with the prior year;
- Adjusted EBITDA growth of 5.0 percent-to-8.0 percent compared
with the prior year;
- EPS in line with fiscal 2021 as improved EBITDA is offset by
higher depreciation and a higher effective tax rate; and
- Free Cash Flow to exceed $100 million.
The Company’s guidance for the year is based on several factors,
including:
- The significant increase in consumers shopping online where the
Company’s broad product offering and brand portfolio makes it a
leading destination for customers looking for solutions to help
them connect, express themselves and celebrate - sentiments that
have become more important than ever;
- Significant expansion of the Company’s product offering, both
organically and through strategic acquisitions like Shari’s Berries
and PersonalizationMall;
- The expanded size of the Company’s customer file along with
continued positive customer behavior trends; and
- Continued strong growth in the Company’s Celebrations Passport®
loyalty program, which is helping drive increased frequency,
retention, and cross-category/cross-brand purchases.
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 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 contribution
margin is defined as 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 the 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 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.
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 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®, Moose Munch®, The Popcorn Factory®, Wolferman’s
Bakery®, Vital Choice®, Stock Yards® 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; and DesignPac Gifts, LLC, a manufacturer
of gift baskets and towers. 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. 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 / FLWS-VC]
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 the fiscal-year 2022 second quarter; the impact of
the Covid-19 pandemic on the Company; 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. 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, October 28,
2021, at 8:00 a.m. (ET). The conference call will be webcast live
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 web site 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
November 4, 2021, at: (US) 1-877-344-7529; (Canada) 855-669-9658;
(International) 1-412-317-0088; enter conference ID #:
10148432.
Note: The 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)
September 26, 2021
June 27, 2021
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
3,785
$
173,573
Trade receivables, net
30,635
20,831
Inventories, net
282,439
153,863
Prepaid and other
68,644
51,792
Total current assets
385,503
400,059
Property, plant and equipment, net
216,083
215,287
Operating lease right-of-use assets
114,345
86,230
Goodwill
208,150
208,150
Other intangibles, net
138,144
139,048
Other assets
27,661
27,905
Total assets
$
1,089,886
$
1,076,679
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
65,363
$
57,434
Accrued expenses
172,998
178,512
Current maturities of long-term debt
25,000
20,000
Current portion of long-term operating
lease liabilities
11,453
9,992
Total current liabilities
274,814
265,938
Long-term debt, net
156,811
161,512
Long-term operating lease liabilities
107,532
79,375
Deferred tax liabilities
33,421
34,162
Other liabilities
26,934
26,622
Total liabilities
599,512
567,609
Total stockholders’ equity
490,374
509,070
Total liabilities and stockholders’
equity
$
1,089,886
$
1,076,679
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
September 26, 2021
September 27, 2020
Net revenues:
E-commerce
263,371
$ 238,863
Other
46,002
44,909
Total net revenues
309,373
283,772
Cost of revenues
183,859
168,292
Gross profit
125,514
115,480
Operating expenses:
Marketing and sales
94,379
80,285
Technology and development
13,423
11,603
General and administrative
27,066
28,213
Depreciation and amortization
10,970
8,840
Total operating expenses
145,838
128,941
Operating loss
(20,324)
(13,461)
Interest expense, net
1,528
1,040
Other income, net
596
999
Loss before income taxes
(21,256)
(13,502)
Income tax benefit
(8,057)
(3,740)
Net loss
(13,199)
$ (9,762)
Basic and diluted net loss per common
share
$(0.20)
$ (0.15)
Basic and diluted weighted average shares
used in the calculation of net loss per common share
65,062
64,320
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Three months ended
September 26, 2021
September 27, 2020
Operating activities:
Net loss
$ (13,199)
$ (9,762)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
10,970
8,840
Amortization of deferred financing
costs
299
156
Deferred income taxes
(741)
(603)
Bad debt expense
(96)
(280)
Stock-based compensation
3,005
2,393
Other non-cash items
260
261
Changes in operating items:
Trade receivables
(9,708)
(15,154)
Inventories
(128,577)
(77,854)
Prepaid and other
(16,852)
(10,374)
Accounts payable and accrued expenses
2,415
7,046
Other assets and liabilities
2,060
4,623
Net cash used in operating activities
(150,164)
(90,708)
Investing activities:
Acquisitions, net of cash acquired
-
(250,943)
Capital expenditures, net of non-cash
expenditures
(11,122)
(6,958)
Purchase of equity investments
-
(325)
Net cash used in investing activities
(11,122)
(258,226)
Financing activities:
Acquisition of treasury stock
(9,065)
(1,088)
Proceeds from exercise of employee stock
options
563
221
Proceeds from bank borrowings
-
220,000
Repayment of notes payable and bank
borrowings
-
(97,500)
Debt issuance cost
-
(2,193)
Net cash (used in) provided by financing
activities
(8,502)
119,440
Net change in cash and cash
equivalents
(169,788)
(229,494)
Cash and cash equivalents:
Beginning of period
173,573
240,506
End of period
$ 3,785
$ 11,012
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Three Months Ended
September 26, 2021
Transaction Costs
As Adjusted (non-GAAP)
September 26, 2021
September 27, 2020
PersonalizationMall Litigation
& Transaction Costs
Harry & David Store
Closure Costs
As Adjusted (non-GAAP)
September 27, 2020
% Change
Net revenues:
Consumer Floral & Gifts
$ 181,229
$ -
$ 181,229
$ 161,546
$ -
$ -
$ 161,546
12.2%
BloomNet
30,834
30,834
32,738
32,738
-5.8%
Gourmet Foods & Gift Baskets
97,482
97,482
89,929
89,929
8.4%
Corporate
45
45
106
106
-57.5%
Intercompany eliminations
(217)
(217)
(547)
(547)
60.3%
Total net revenues
$ 309,373
$ -
$ 309,373
$ 283,772
$ -
$ -
$ 283,772
9.0%
Gross profit:
Consumer Floral & Gifts
$ 76,003
$ 76,003
$ 65,586
$ 65,586
15.9%
41.9%
41.9%
40.6%
40.6%
BloomNet
15,409
15,409
14,838
14,838
3.8%
50.0%
50.0%
45.3%
45.3%
Gourmet Foods & Gift Baskets
34,163
34,163
35,007
35,007
-2.4%
35.0%
35.0%
38.9%
38.9%
Corporate
(61)
(61)
49
49
-224.5%
-135.6%
-135.6%
46.2%
46.2%
Total gross profit
$ 125,514
$ -
$ 125,514
$ 115,480
$ -
$ -
$ 115,480
8.7%
40.6%
-
40.6%
40.7%
-
-
40.7%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$ 19,190
$ -
$ 19,190
$ 19,236
$ -
$ -
$ 19,236
-0.2%
BloomNet
10,860
10,860
10,421
10,421
4.2%
Gourmet Foods & Gift Baskets
(7,673)
(7,673)
(2,581)
(405)
(2,986)
-157.0%
Segment Contribution Margin Subtotal
22,377
-
22,377
27,076
-
(405)
26,671
-16.1%
Corporate (b)
(31,731)
456
(31,275)
(31,697)
4,890
(26,807)
-16.7%
EBITDA (non-GAAP)
(9,354)
456
(8,898)
(4,621)
4,890
(405)
(136)
-6442.6%
Add: Stock-based compensation
3,005
3,005
2,393
2,393
25.6%
Add: Compensation charge related to NQ
Plan Investment Appreciation
567
567
980
980
-42.1%
Adjusted EBITDA (non-GAAP)
$ (5,782)
$ 456
$ (5,326)
$ (1,248)
$ 4,890
$ (405)
$ 3,237
-264.5%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands) (unaudited)
Reconciliation of net loss to adjusted
net loss (non-GAAP):
Three Months Ended
September 26, 2021
September 27, 2020
Net loss
$ (13,199)
$ (9,762)
Adjustments to reconcile net loss to
adjusted net loss (non-GAAP)
Add: Transaction costs
456
4,890
Deduct: Harry & David store closure
cost adjustment
-
(405)
Deduct: Income tax effect on
adjustments
(173)
(1,242)
Adjusted net loss (non-GAAP)
$ (12,916)
$ (6,519)
Basic and diluted net loss per common
share
$ (0.20)
$ (0.15)
Basic and diluted adjusted net loss per
common share (non-GAAP)
$ (0.20)
$ (0.10)
Weighted average shares used in the
calculation of net loss and adjusted net loss per common
share
65,062
64,320
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands) (unaudited)
Reconciliation of net loss to adjusted
EBITDA (non-GAAP):
Three Months Ended
September 26, 2021
September 27, 2020
Net loss
$ (13,199)
$ (9,762)
Add: Interest expense and other, net
932
41
Add: Depreciation and amortization
10,970
8,840
Deduct: Income tax benefit
8,057
3,740
EBITDA
(9,354)
(4,621)
Add: Stock-based compensation
3,005
2,393
Add: Compensation charge related to NQ
plan investment appreciation
567
980
Add: Transaction costs
456
4,890
Deduct: Harry & David store closure
cost adjustment
-
(405)
Adjusted EBITDA
$ (5,326)
$ 3,237
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211028005406/en/
Investor Contact: Joseph D. Pititto
(516) 237-6131 invest@1800flowers.com
Media Contact: Kathleen Waugh (516)
237-6028
kwaugh@1800flowers.com
1 800 Flowers Com (NASDAQ:FLWS)
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