Content analysis
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Legalese | ||
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H.S. freshman Avg
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New words:
abide, accuracy, afforded, aforementioned, agenda, assemble, audience, Aurora, Baumann, bid, clearer, collaborative, commentary, copy, cut, cycle, delisted, delisting, enterprise, equivalent, Facebook, Footnote, freight, grantor, hard, hereunder, identification, inspection, Instagram, Jeffrey, Jennifer, Jr, landlord, likelihood, lived, maximizing, merger, motivate, mutually, narrow, nonemployee, panel, partnership, petition, premise, proposition, prorated, prudent, Qurate, rapidly, recruit, regain, rehearing, reignited, rental, reproduction, roughly, Secretary, shipment, situation, standalone, stuffed, succeeded, Supreme, thrive, Topper, Twitter, uk, usage, waive
Removed:
accelerate, aimed, assigned, assist, authorization, breakage, capture, catalog, commercially, conclusion, decade, department, determinable, disposal, expanding, extinguishment, Francisco, headcount, Ink, innovate, inquiry, Insider, inspiring, instituting, IP, Kalla, legacy, marketplace, met, monitoring, month, objective, occupied, opened, operated, overturned, passion, periodically, persuasive, play, Postagram, predictable, presently, prevented, published, Quebec, Ratification, reclassify, redeemed, redesign, refinement, reinvest, relied, rendered, retrospectively, role, Saturday, sender, sensitivity, Simplifying, Sincerely, slightly, step, straight, telephonic, tolerance, trusted, twelve, whichever
Financial report summary
?Risks
- If we are unable to successfully implement our strategic alternatives review or our corporate restructuring and cost savings plan, our business, financial condition, results of operations, and cash flows could be materially and adversely affected.
- Competition could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Our operations could be adversely affected if we fail to integrate and retain our executive leadership team or face difficulties attracting and retaining qualified personnel.
- Our business is subject to online security risks, and a security breach or inappropriate access to, or use of, our networks, computer systems, or services or those of third-party vendors could expose us to liability, claims, and a loss of revenue.
- Significant problems with our key systems or those of our third-party vendors could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Our revenues, operating results, and cash flows fluctuate on a seasonal basis and may suffer if revenues during peak seasons do not meet our expectations, which could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- We are dependent on third parties who fulfill orders and deliver goods and services to our customers, and their failure to provide our customers with high-quality products within the required timeframe and maintain a high level of customer service may harm our brands and could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- If the supply of flowers and/or strawberries becomes limited, the price of our floral and/or strawberry products could rise or our products may become unavailable, which could result in our not being able to meet consumer demand and could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Our consumer businesses rely heavily on email and social media marketing campaigns, and any disruptions or restrictions on these campaigns or an increase in the associated costs could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Use of social media may adversely impact our reputation and our business, financial condition, results of operations, and cash flows.
- We rely on our company-operated distribution facilities and third-party distributors to fulfill certain of our customers’ orders and to distribute our products into the carrier delivery system. A disruption in service at one or more of these distribution facilities, delivery failures, or delays could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- The success of our business is dependent on our floral network members and on the financial performance of the retail floral industry.
- We are exposed to the credit risk of our floral network members.
- Our business could suffer as a result of significant credit card or debit card fraud.
- We are dependent on our strategic relationships to help promote our consumer websites. Failure to establish, maintain, or enhance such relationships could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Our marketing efforts may not be successful or may become more expensive, either of which could increase our costs and materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Foreign, state, and local governments may attempt to impose additional sales and use taxes, value added taxes, or other taxes on our business activities, including our past sales, which could decrease our ability to compete, reduce our sales, and could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Adverse economic conditions could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Shifts in the mix of products versus services sold and types of products and services sold could materially and adversely affect our financial results.
- Shifts in the mix of products and services sold at standard pricing as compared to discounted pricing or the failure to maintain our standard pricing for products and services could materially and adversely affect our financial results.
- Our business and stock price may be adversely affected if we have material weaknesses or significant deficiencies in our internal control over financial reporting.
- Fluctuations in foreign currency exchange rates could materially and adversely affect comparisons of our operating results.
- We face risks relating to operating and doing business internationally that could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Our success is dependent on the intellectual property that we use, and any infringement or misappropriation of our intellectual property could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Incidents involving or allegations of food-borne illnesses, food tampering, food contamination, or mislabeling relating to our products, whether or not accurate, could harm our business.
- Product recall or liability claims could harm our business.
- We may be unable to increase capacity or introduce enhancements to our consumer websites, mobile sites and applications, or various telephone numbers in a timely manner or without service interruptions, which could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- We utilize outsourced staff and temporary employees, who may not be as well-trained or committed to our customers as our permanent employees, and their failure to provide our customers with high-quality customer service may cause our customers not to return, which could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Our business could be shut down or materially and adversely affected by a catastrophic event.
- Legal actions or investigations could subject us to substantial liability, require us to change our business practices, and materially and adversely affect our business, financial condition, results of operations, and cash flows.
- We may be unsuccessful at acquiring future additional businesses, services, or technologies. Even if we make acquisitions in the future, it may not improve our results of operations and could also materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Certain members of our board of directors are employees of either Qurate or Liberty Media Corporation, which has overlapping directors and officers with Qurate, which may lead to conflicting interests.
- Governmental regulation of the collection and use of personal information or our failure to comply with these regulations could materially and adversely affect our business.
- Changes in laws and regulations and new laws and regulations could materially and adversely affect our business, financial condition, results of operations, and cash flows.
- Future changes in tax laws, including the rate of taxation, could adversely affect our financial condition, results of operations, and cash flows.
- The market price of our common stock may fluctuate significantly.
- The limited public float and trading volume for FTD common stock may have an adverse impact and cause significant fluctuation of market price.
- As a significant stockholder of us, Qurate has significant influence over us, its presence may affect the ability of a third party to acquire control of us, and its interests may not coincide with yours.
- Your percentage ownership in our company may be diluted in the future.
- We may issue preferred stock with terms that could dilute the voting power or reduce the value of our common stock.
- Provisions in our charter documents and the DGCL could discourage potential acquisition proposals, could delay, deter, or prevent a change in control, and could limit the price certain investors might be willing to pay for our common stock.
- Future sales of FTD common stock by Qurate, or the perception that such sales could occur, could cause our stock price to
- We are bound by a Tax Sharing Agreement that we entered into with United Online in connection with the Separation.
Management Discussion
- We present certain results from our International segment on a constant currency basis, which results are considered non-GAAP financial measures. Management believes the inclusion of constant currency information permits comparison of results between periods as if foreign currency exchange rates had remained constant period-over-period. Our International segment operates principally in the U.K. We calculate constant currency by applying the foreign currency exchange rate for the prior period to the local currency results for the current period. In addition, we have excluded intersegment revenues and expenses in the discussion below.
- Consolidated revenues decreased $69.8 million, or 6.4%, for the year ended December 31, 2018 compared to the year ended December 31, 2017. The decrease in consolidated revenues was primarily due to a $61.1 million decrease in revenues from our U.S. Consumer segment and a $15.4 million decrease in revenues from our Florist segment. Partially offsetting these decreases, our International segment recorded a $5.2 million increase (decrease of $1.3 million in constant currency) in revenues. Foreign currency exchange rates favorably impacted consolidated revenues by $6.5 million during the year ended December 31, 2018.
- Consolidated cost of revenues decreased $14.1 million, or 2.1%, for the year ended December 31, 2018 compared to the year ended December 31, 2017. The decrease was primarily due to decreases of $14.9 million and $3.4 million in costs associated with our U.S. Consumer and Florist segments, respectively, and were partially offset by a $5.9 million increase (increase of $1.4 million in constant currency) in costs associated with our International segment, all of which were primarily associated with the changes in revenue noted above. Foreign currency exchange rates unfavorably impacted consolidated cost of revenues by $4.6 million during the year ended December 31, 2018. Gross margin was 35% for the year ended December 31, 2018, a decrease from 38% when compared to the year ended December 31, 2017.