Second Quarter Results Reflect Successful
Holiday Performance
Generates Net Income of $82.5 million and
Adjusted EBITDA1 of $131 million
Updates Fiscal 2023 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.)
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 2023 second quarter ended January 1,
2023.
Fiscal 2023 Second Quarter
Highlights
- Total consolidated revenues decreased 4.8% to $897.9 million,
compared with total consolidated revenues of $943.0 million in the
prior year period.
- Gross profit margin for the quarter was 41.0%, as compared with
40.1% in the prior year period.
- Operating expenses were 28.1% of total sales, as compared with
27.9% in the prior year period.
- Net income for the quarter was $82.5 million, or $1.27 per
diluted share, as compared with net income of $88.5 million, or
$1.34 per diluted share in the prior year period.
- Adjusted EBITDA1 for the quarter was $131.4 million, as
compared to Adjusted EBITDA1 of $133.1 million in the prior year
period.
- Expands leadership position in personalized gifting marketplace
through the acquisition of the Things Remembered® brand, which
occurred after the second quarter ended.
Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said, “Our second
quarter results benefited from the strength of our Gourmet Foods
and Gift Baskets business with improving gross margins, as well as
an enterprise-wide reduction in operating expenses. As we had
anticipated, consumers continued to spend for the major holidays
and they reverted to their historical shopping patterns, shopping
much later in the holiday period. PersonalizationMall.com® kicked
off our holiday period with its biggest Cyber Monday ever, and as
demand on our platform grew throughout the month of December, Harry
& David® achieved record revenues for the quarter on the
consumer side of its business. We did see demand soften in
corporate gifting, which we attribute to macro-economic pressures
and hybrid work environments, whereas a year ago there were fewer
in-person holiday get-togethers.”
McCann added, “Our margins began to stabilize during the
quarter, as we started to benefit from lower inbound freight costs
and strategic pricing initiatives. Margins within our Gourmet Foods
and Gift Baskets business also benefited from our logistics
optimization and automation initiatives. We expect these favorable
trends to continue and further improve our margins throughout the
remainder of this fiscal year and beyond.”
“As we look to the balance of the year, we expect consumers to
continue to shop and spend for the major upcoming holidays, while
continuing to moderate their spend on everyday gifting occasions
due to macro inflationary pressures.”
Second Quarter 2023 Financial
Results
Total consolidated revenues decreased 4.8% to $897.9 million, as
compared with total consolidated revenues of $943.0 million in the
prior year period.
Gross profit margin for the quarter was 41.0%, increasing 90
basis points as compared with 40.1% in the prior year period. Gross
profit margin improved based on strong performance within our
Gourmet Foods and Gift Baskets business, primarily related to
strategic pricing initiatives, lower in-bound freight costs, as
well as an improvement in labor availability and automation.
Operating expenses were 28.1% of total sales, as compared with
27.9% in the prior year period. On a dollar basis, operating
expenses declined $10.1 million, primarily reflecting lower
marketing costs, as the Company shifted its advertising investments
to lower cost, higher return on investment areas of the marketing
funnel.
As a result, the Company generated net income of $82.5 million,
or $1.27 per diluted share, and Adjusted Net Income1 of $82.7
million, or $1.28 per share, as compared with net income of $88.5
million, or $1.34 per share, and Adjusted Net Income1 of $88.6
million, or $1.34 per share, in the prior year period. Adjusted
EBITDA1 for the quarter was $131.4 million, as compared with
Adjusted EBITDA1 of $133.1 million 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
decreased 0.4% to $588.4 million, compared with $590.9 million in
the prior year period, reflecting the resiliency of our gourmet
food gifting businesses. Gross profit margin was 41.0%, compared
with 39.3% in the prior year period, benefiting from strategic
pricing, lower inbound transportation costs, and automation
initiatives. As a result, segment contribution margin1 was $123.5
million, compared with $110.5 million a year ago.
- Consumer Floral and Gifts: Revenues decreased 12.1% to
$277.0 million, compared with $315.1 million in the prior year
period. Gross profit margin decreased to 40.5%, compared with 41.3%
in the prior year period, primarily due to higher fulfillment costs
and outbound transportation costs. Segment contribution margin1 was
$27.9 million, compared with $38.2 million the prior year.
- BloomNet: Revenues for the quarter decreased 13.4% to
$32.9 million, compared with $37.9 million in the prior year
period. Gross profit margin of 42.2% was flat with the prior year.
Segment contribution margin1 was $9.3 million, compared with $11.9
million in the prior year period.
Company Guidance
The Company is updating its Fiscal 2023 guidance based on its
second quarter performance and the current economic environment.
While the highly unpredictable nature of the current macro economy
makes it difficult to forecast in this environment, the Company
continues to expect that after growing revenues 77% over the past
three fiscal years, revenues will decline in Fiscal 2023 on
cautious consumer behavior. The Company also anticipates that as a
result of the investments it has made, and continues to make, in
its business platform, along with strategic pricing programs and a
moderation of certain cost inputs, gross margins and bottom-line
results will gradually improve during the latter half of the
current fiscal year.
Full Year Fiscal 2023 Guidance
- Total revenues to decline in the mid-single digit range on a
percentage basis as compared with the prior year;
- Adjusted EBITDA1 is now expected to be in a range of $80
million to $85 million; and
- Free Cash Flow1 to exceed $75 million.
Conference Call
The Company will conduct a conference call to discuss the above
details and attached financial results today, Thursday, February 2,
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 9,
2023, at: (US) 1-877-344-7529; (Canada) 855-669-9658;
(International) 1-412-317-0088; enter conference ID #: 7691597. If
you have any questions regarding the above information, please
contact the Investor Relations office at
invest@1800flowers.com.
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:
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 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) 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®, 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; DesignPac Gifts,
LLC, a manufacturer of gift baskets and towers; and Alice’s Table®,
a lifestyle business offering fully digital livestreaming and on
demand 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,” “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 impact of the Covid-19 pandemic on
the Company; its ability to leverage its operating platform and
reduce its operating expense ratio; its ability to sell through
existing inventories; 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)
January 1, 2023
July 3, 2022
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
189,718
$
31,465
Trade receivables, net
53,027
23,812
Inventories
201,057
247,563
Prepaid and other
24,929
45,398
Total current assets
468,731
348,238
Property, plant and equipment, net
235,913
236,481
Operating lease right-of-use assets
131,722
129,390
Goodwill
213,999
213,287
Other intangibles, net
142,847
145,568
Other assets
23,787
21,927
Total assets
$
1,216,999
$
1,094,891
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
75,095
$
57,386
Accrued expenses
233,926
175,392
Current maturities of long-term debt
20,000
20,000
Current portion of long-term operating
lease liabilities
15,289
12,919
Total current liabilities
344,310
265,697
Long-term debt, net
132,786
142,497
Long-term operating lease liabilities
124,725
123,662
Deferred tax liabilities, net
34,895
35,742
Other liabilities
19,757
17,884
Total liabilities
656,473
585,482
Total stockholders’ equity
560,526
509,409
Total liabilities and stockholders’
equity
$
1,216,999
$
1,094,891
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
January 1,
2023
December 26,
2021
January 1,
2023
December 26,
2021
Net revenues:
E-Commerce
$
790,410
$
827,522
$
1,029,332
$
1,090,893
Other
107,467
115,522
172,149
161,524
Total net revenues
897,877
943,044
1,201,481
1,252,417
Cost of revenues
530,111
564,594
732,257
748,453
Gross profit
367,766
378,450
469,224
503,964
Operating expenses:
Marketing and sales
194,466
207,771
283,605
302,150
Technology and development
14,952
13,490
29,692
26,913
General and administrative
28,908
28,872
55,153
55,938
Depreciation and amortization
14,315
12,588
27,009
23,558
Total operating expenses
252,641
262,721
395,459
408,559
Operating income
115,125
115,729
73,765
95,405
Interest expense, net
4,143
1,723
6,964
3,251
Other expense (income), net
148
(2,457)
1,070
(3,053)
Income before income taxes
110,834
116,463
65,731
95,207
Income tax expense
28,304
27,995
16,893
19,938
Net income
$
82,530
$
88,468
$
48,838
$
75,269
Basic net income per common share
$
1.28
$
1.36
$
0.76
$
1.16
Diluted net income per common share
$
1.27
$
1.34
$
0.75
$
1.14
Weighted average shares used in the
calculation of net income per common share:
Basic
64,675
65,261
64,606
65,161
Diluted
64,835
65,969
64,820
65,954
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information Consolidated Statements of
Cash Flows (in thousands) (unaudited)
Six Months Ended
January 1, 2023
December 26, 2021
Operating activities:
Net income
$
48,838
$
75,269
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation and amortization
27,009
23,558
Amortization of deferred financing
costs
671
616
Deferred income taxes
(846)
(1,306)
Bad debt expense
2,407
(1,285)
Stock-based compensation
3,454
5,296
Other non-cash items
(470)
(448)
Changes in operating items:
Trade receivables
(31,622)
(55,074)
Inventories
46,506
(28,534)
Prepaid and other
7,550
8,172
Accounts payable and accrued expenses
89,050
160,459
Other assets and liabilities
1,113
(875)
Net cash provided by operating
activities
193,660
185,848
Investing activities:
Acquisitions, net of cash acquired
-
(20,786)
Capital expenditures, net of non-cash
expenditures
(23,849)
(32,608)
Net cash used in investing activities
(23,849)
(53,394)
Financing activities:
Acquisition of treasury stock
(1,175)
(25,521)
Proceeds from exercise of employee stock
options
-
846
Proceeds from bank borrowings
195,900
125,000
Repayment of notes payable and bank
borrowings
(205,900)
(135,000)
Debt issuance cost
(383)
(284)
Net cash used in financing activities
(11,558)
(34,959)
Net change in cash and cash
equivalents
158,253
97,495
Cash and cash equivalents:
Beginning of period
31,465
173,573
End of period
$
189,718
$
271,068
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information – Category Information
(dollars in thousands) (unaudited)
Three Months Ended
January 1,
2023
Things
Remembered
Transaction
Costs
As Adjusted
(non-GAAP)
January 1,
2023
December
26, 2021
Vital
Choice and
Alice's
Table
Transaction
Costs
As Adjusted
(non-GAAP)
December
26, 2021
%
Change
Net revenues:
Consumer Floral & Gifts
$
277,049
$
277,049
$
315,083
$
-
$
315,083
-12.1%
BloomNet
32,852
32,852
37,930
37,930
-13.4%
Gourmet Foods & Gift Baskets
588,431
588,431
590,946
590,946
-0.4%
Corporate
72
72
69
69
4.3%
Intercompany eliminations
(527)
(527)
(984)
(984)
46.4%
Total net revenues
$
897,877
$
-
$
897,877
$
943,044
$
-
$
943,044
-4.8%
Gross profit:
Consumer Floral & Gifts
$
112,274
$
112,274
$
130,025
$
130,025
-13.7%
40.5%
40.5%
41.3%
41.3%
BloomNet
13,879
13,879
16,021
16,021
-13.4%
42.2%
42.2%
42.2%
42.2%
Gourmet Foods & Gift Baskets
241,418
241,418
232,239
232,239
4.0%
41.0%
41.0%
39.3%
39.3%
Corporate
195
195
165
165
18.2%
270.8%
270.8%
239.1%
239.1%
Total gross profit
$
367,766
$
-
$
367,766
$
378,450
$
-
$
378,450
-2.8%
41.0%
-
41.0%
40.1%
-
40.1%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
27,886
$
-
$
27,886
$
38,156
$
-
$
38,156
-26.9%
BloomNet
9,348
9,348
11,887
11,887
-21.4%
Gourmet Foods & Gift Baskets
123,503
123,503
110,502
110,502
11.8%
Segment Contribution Margin Subtotal
160,737
-
160,737
160,545
-
160,545
0.1%
Corporate (b)
(31,297)
243
(31,054)
(32,228)
59
(32,169)
3.5%
EBITDA (non-GAAP)
129,440
243
129,683
128,317
59
128,376
1.0%
Add: Stock-based compensation
1,899
1,899
2,291
2,291
-17.1%
Add: Compensation charge related to NQ
Plan Investment (Depreciation) Appreciation
(196)
(196)
2,425
2,425
-108.1%
Adjusted EBITDA (non-GAAP)
$
131,143
$
243
$
131,386
$
133,033
$
59
$
133,092
-1.3%
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information – Category Information
(dollars in thousands) (unaudited)
Six Months Ended
January 1,
2023
Things
Remembered
Transaction
Costs
As Adjusted
(non-GAAP)
January 1,
2023
December
26, 2021
Vital
Choice and
Alice's
Table
Transaction
Costs
As Adjusted
(non-GAAP)
December
26, 2021
%
Change
Net revenues:
Consumer Floral & Gifts
$
439,229
$
-
$
439,229
$
496,312
$
-
$
496,312
-11.5%
BloomNet
66,219
66,219
68,764
68,764
-3.7%
Gourmet Foods & Gift Baskets
696,659
696,659
688,428
688,428
1.2%
Corporate
116
116
114
114
1.8%
Intercompany eliminations
(742)
(742)
(1,201)
(1,201)
38.2%
Total net revenues
$
1,201,481
$
-
$
1,201,481
$
1,252,417
$
-
$
1,252,417
-4.1%
Gross profit:
Consumer Floral & Gifts
$
174,193
$
-
$
174,193
$
206,028
$
-
$
206,028
-15.5%
39.7%
39.7%
41.5%
41.5%
BloomNet
28,366
28,366
31,430
31,430
-9.7%
42.8%
42.8%
45.7%
45.7%
Gourmet Foods & Gift Baskets
266,531
266,531
266,402
266,402
0.0%
38.3%
38.3%
38.7%
38.7%
Corporate
134
134
104
104
28.8%
115.5%
115.5%
91.2%
91.2%
Total gross profit
$
469,224
$
-
$
469,224
$
503,964
$
-
$
503,964
-6.9%
39.1%
-
39.1%
40.2%
-
40.2%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
38,696
$
-
$
38,696
$
57,346
$
-
$
57,346
-32.5%
BloomNet
18,865
18,865
22,747
22,747
-17.1%
Gourmet Foods & Gift Baskets
104,793
104,793
102,829
102,829
1.9%
Segment Contribution Margin Subtotal
162,354
-
162,354
182,922
-
182,922
-11.2%
Corporate (b)
(61,580)
243
(61,337)
(63,959)
515
(63,444)
3.3%
EBITDA (non-GAAP)
100,774
243
101,017
118,963
515
119,478
-15.5%
Add: Stock-based compensation
3,454
3,454
5,296
5,296
-34.8%
Add: Compensation charge related
to NQ Plan Investment (Depreciation) Appreciation
(1,102)
(1,102)
2,992
2,992
-136.8%
Adjusted EBITDA
(non-GAAP)
$
103,126
$
243
$
103,369
$
127,251
$
515
$
127,766
-19.1%
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
January 1,
2023
December 26,
2021
January 1,
2023
December 26,
2021
Net income
$
82,530
$
88,468
$
48,838
$
75,269
Adjustments to reconcile net income to
adjusted net income (non-GAAP)
Add: Transaction costs
243
59
243
515
Deduct: Income tax effect on
adjustments
(63)
65
(63)
(108)
Adjusted net income (non-GAAP)
$
82,710
$
88,592
$
49,018
$
75,676
Basic and diluted net income per common
share
Basic
$
1.28
$
1.36
$
0.76
$
1.16
Diluted
$
1.27
$
1.34
$
0.75
$
1.14
Basic and diluted adjusted net income
per common share (non-GAAP)
Basic
$
1.28
$
1.36
$
0.76
$
1.16
Diluted
$
1.28
$
1.34
$
0.76
$
1.15
Weighted average shares used in the
calculation of basic and diluted net income and adjusted net income
per common share
Basic
64,675
65,261
64,606
65,161
Diluted
64,835
65,969
64,820
65,954
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
January 1,
2023
December 26,
2021
January 1,
2023
December 26,
2021
Net income
$
82,530
$
88,468
$
48,838
$
75,269
Add: Interest expense and other, net
4,291
(734)
8,034
198
Add: Depreciation and amortization
14,315
12,588
27,009
23,558
Add: Income tax expense
28,304
27,995
16,893
19,938
EBITDA
129,440
128,317
100,774
118,963
Add: Stock-based compensation
1,899
2,291
3,454
5,296
Add: Compensation charge related to NQ
plan investment (depreciation) appreciation
(196)
2,425
(1,102)
2,992
Add: Transaction costs
243
59
243
515
Adjusted EBITDA
$
131,386
$
133,092
$
103,369
$
127,766
(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/20230202005134/en/
Investors: Andy Milevoj (516)
237-4617 amilevoj@1800flowers.com
Media: Cherie Gallarello
cgallarello@1800flowers.com
1 800 Flowers Com (NASDAQ:FLWS)
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