Exhibit 99.1
1-800-FLOWERS.COM, Inc. Reports Continued Positive Top and Bottom-Line Trends for its Fiscal 2013 Third Quarter; Results Benefited from Strong Valentine Holiday Performance and the Shift of the Easter Holiday into the Period
- Total revenue for the quarter increased 7.2 percent to $192.6 million, driven by strong Valentine holiday performance for the 1-800-flowers.com brand, which grew more than 11 percent in the month of February.
- Adjusted EBITDA from continuing operations increased 57.2 percent to $10.0 million, compared with $6.4 million in the prior year period.
- EPS from continuing operations increased to $0.04 per diluted share, compared with $0.00 per diluted share in the prior year period.
CARLE PLACE, N.Y.--(BUSINESS WIRE)--April 30, 2013--1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), the world’s leading florist and gift shop, today reported revenues from continuing operations of $192.6 million for its fiscal 2013 third quarter ended March 31, 2013, compared with revenues from continuing operations of $179.7 million in the prior year period. The Company said the 7.2 percent growth, or $13.0 million, was primarily driven by strong Valentine holiday performance in the 1-800-FLOWERS.COM brand, which grew 11.4 percent during the month of February, as well as the shift of the Easter holiday into the period, compared with the prior year when Easter fell in the Company’s fiscal fourth quarter.
Gross profit margin for the third quarter increased 100 basis points to 41.7 percent, compared with 40.7 percent in the prior year period, driven by a 100 basis point improvement in the Company’s Consumer Floral segment, reflecting disciplined promotional marketing programs and a continued focus on “truly original” product designs as well as a 530 basis point increase in the Company’s BloomNet segment, primarily reflecting product mix. Operating expenses as a percent of revenue improved 100 basis points to 39.6 percent, compared with 40.6 percent in the prior year period. The improved operating expense ratio primarily reflects the increased revenues for the quarter as well as the Company’s continued focus on improving leverage across its business platform.
Adjusted EBITDA from continuing operations for the quarter increased 57.2 percent to $10.0 million compared with EBITDA of $6.4 million in the prior year period. Net income from continuing operations was $2.6 million, or $0.04 per diluted share, compared with net income from continuing operations of $51,000, or $0.00 per diluted share, in the prior year period.
Jim McCann, CEO of 1-800-FLOWERS.COM, said, “During the fiscal third quarter we achieved solid top-line growth and strong bottom-line results despite continued uncertainty in the consumer environment. These results represent a continuation of the positive trends in our business that we have seen for more than two years now and reflect the success of our efforts to manage those aspects of our business that we can control. This includes our enhanced marketing and merchandising programs that are helping to drive solid revenue growth along with increased gross margins and our focus on leveraging our business platform to reduce operating costs and help drive outsized benefits in terms of EBITDA and EPS growth.”
McCann said that revenue growth during the quarter benefited from strong Valentine holiday performance for the Company’s 1-800-FLOWERS.COM brand as well as the shift of the Easter holiday into the period compared with the prior year when Easter fell in the Company’s fiscal fourth quarter. “The effectiveness of our enhanced marketing and merchandising programs – focusing on truly original products such as our “Wow” collection of aspirational gifts designed to truly wow recipients, and our signature A-Dog-Able “Lucky-in-Love” and Happy Hour “Love Potion” floral arrangements – helped drive more than 11 percent revenue growth for the 1-800-FLOWERS.COM brand during the month of February. Importantly, we also grew gross margin in this area by 100 basis points, as compared with the prior year, reflecting the strength of our brand and our disciplined approach to marketing programs.”
During the fiscal third quarter, the Company attracted 702,000 new customers. Approximately 1.7 million customers placed orders during the quarter, of whom 58.4 percent were repeat customers. This reflects the Company’s successful efforts to engage with its customers and deepen its relationships as their trusted Florist and Gift Shop for all of their celebratory occasions.
McCann also noted that the Company continued to strengthen its balance sheet and added financial flexibility with a new, amended bank credit facility comprised of a $200 million revolving credit line entered into on April 11, 2013. “Our new credit facility, which features very advantageous borrowing costs, reflects the strength of our business model, including the growing cash flows that enabled us to pay off more than $100 million in debt over the past several years. As we have stated in the past, we expect to finish our current fiscal year, at the end of June, with a positive cash position on our balance sheet and zero debt outstanding. The strength of our balance sheet, and the increased flexibility inherent in our new credit line, provides us with significant opportunities to grow our business going forward and continue to build value for our shareholders,” said McCann.
SEGMENT RESULTS FROM CONTINUING OPERATIONS:
The Company provides selected financial results for its Consumer Floral, BloomNet and Gourmet Foods and Gift Baskets business segments in the tables attached to this release and as follows:
- 1-800-FLOWERS.COM Consumer Floral: During the fiscal 2013 third quarter, revenues in this segment grew 7.1 percent to $121.0 million, compared with $113.0 million in the prior year period. Revenues for the quarter benefited from 1-800-FLOWERS.COM ecommerce growth of 11.4 percent in the month of February, reflecting strong performance for the Valentine holiday, as well as contributions from the shift of the Easter holiday into the period, compared with the prior year when Easter fell in the Company’s fiscal fourth quarter. Gross profit margin for the fiscal third quarter increased 100 basis points to 40 percent, compared with 39.0 percent in last year’s third quarter. This increase reflected the Company’s continued focus on enhanced merchandising programs that emphasized its “better and best” gift offerings, and disciplined marketing programs that encouraged customers to “wow” their recipients. Segment contribution margin increased 27.0 percent, or $3.0 million, to $13.9 million compared with $10.9 million in the prior year period.
- BloomNet Wire Service: Revenues were $22.8 million, compared with $24.1 million in the prior year period. The 5.2 percent decline reflected changes in the mix of products, services and order volumes during the quarter and was driven primarily by reduced sales of wholesale products to florists. Gross margin increased 530 basis points to 49.9 percent compared with 44.6 percent in the prior year period, primarily reflecting the aforementioned changes in revenue mix, which included growth in sales of higher-margin services, such as web-marketing and directory advertising programs. As a result of these factors, segment contribution margin increased 11.1 percent to $7.0 million, compared with $6.3 million in the prior year period.
- Gourmet Food and Gift Baskets: Revenues increased 14.5 percent to $49.3 million, compared with $43.1 million in the prior year period, primarily reflecting contributions from the aforementioned shift of the Easter holiday into the period, as well as contributions from the newly launched Fannie May Berries line of chocolate dipped strawberries. Gross margin was 41.4 percent, compared with 42.0 percent, primarily reflecting product mix. Segment contribution margin increased 2.3 percent to $970,000 compared with $948,000 in the prior year period. This reflected the revenue growth in the period, largely offset by the lower gross margin as well as investment costs associated with the launch of Fannie May Berries and efforts to enhance Fannie May operations.
Company Guidance:
The Company reiterated its top- and bottom-line guidance for fiscal 2013, saying it continues to expect to achieve revenue growth from continuing operations across all three of its business segments with consolidated revenue growth from continuing operations for the year anticipated to be in the mid-single-digit range. Also, based on anticipated continued improvements in gross profit margin and operating leverage, the Company expects to achieve double-digit, year-over-year increases in EBITDA and EPS and generate Free Cash Flow in excess of $20 million.
Definitions:
* EBITDA: Net income (loss) before interest, taxes, depreciation, amortization. Free Cash Flow: net cash provided by operating activities less capital expenditures. Category contribution margin: earnings before interest, taxes, depreciation and amortization, before the allocation of corporate overhead expenses. The Company presents EBITDA and Adjusted EBITDA from continuing operations because it considers such information meaningful supplemental measures of its performance and believes such information is frequently used by the investment community in the evaluation of similarly situated companies. The Company also uses EBITDA and Adjusted EBITDA as factors used to determine the total amount of incentive compensation available to be awarded to executive officers and other employees. The Company’s credit agreement uses EBITDA and Adjusted EBITDA to measure compliance with covenants such as interest coverage and debt incurrence. EBITDA and Adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates. EBITDA, Adjusted EBITDA and Free Cash Flow have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of the limitations of EBITDA and Adjusted EBITDA are: (a) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the Company's debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and EBITDA does not reflect any cash requirements for such capital expenditures. EBITDA and Free Cash Flow should only be used on a supplemental basis combined with GAAP results when evaluating the Company's performance.
About 1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM, Inc. is the world’s leading florist and gift shop. For more than 30 years, 1-800-FLOWERS® (1-800-356-9377 or www.1800flowers.com) has been helping deliver smiles for our customers with gifts for every occasion, including fresh flowers and the finest selection of plants, gift baskets, gourmet foods, confections, candles, balloons and plush stuffed animals. As always, our 100% Smile Guarantee backs every gift. 1-800-FLOWERS.COM’s Mobile Flower & Gift Center was named winner of the Mobile Shopping Summit’s “Best Mobile Site of 2011.” 1-800-FLOWERS.COM was also rated number one vs. competitors for customer satisfaction by STELLAService and named by the E-Tailing Group as one of only nine online retailers out of 100 benchmarked to meet the criteria for Excellence in Online Customer Service. 1-800-FLOWERS.COM has been honored in Internet Retailer’s “Hot 100: America’s Best Retail Web Sites” for 2011. The Company’s BloomNet® international floral wire service (www.mybloomnet.net) provides a broad range of quality products and value-added services designed to help professional florists grow their businesses profitably. The 1-800-FLOWERS.COM “Gift Shop” also includes gourmet gifts such as popcorn and specialty treats from The Popcorn Factory® (1-800-541-2676 or www.thepopcornfactory.com); cookies and baked gifts from Cheryl’s® (1-800-443-8124 or www.cheryls.com); premium chocolates and confections from Fannie May® confections brands (www.fanniemay.com and www.harrylondon.com); gift baskets and towers from 1-800-Baskets.com® (www.1800baskets.com); delicious cut-fruit arrangements from FruitBouquets.com (www.fruitbouquets.com); wine gifts from Winetasting.com® (www.winetasting.com); ultra- premium meats from Stockyards.com (www.stockyards.com); as well as exquisite, customizable invitations and personal stationery from FineStationery.com (www.finestationery.com). The Company’s Celebrations® brand (www.celebrations.com) is a new premier online destination for fabulous party ideas and planning tips. 1-800-FLOWERS.COM, Inc. is involved in a broad range of corporate social responsibility initiatives including continuous expansion and enhancement of its environmentally-friendly “green” programs as well as various philanthropic and charitable efforts. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.
Special Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or beliefs concerning future events and can generally be identified by the use of statements that include words such as “estimate,” “expects,” “project,” “believe,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “target” or similar words or phrases. Forward-looking statements include, but are not limited to, statements regarding the Company’s expectations for: its ability to build on positive trends including increases in revenue, gross margin and contribution margin in its Consumer Floral business; its ability to achieve continued top and bottom line growth in its BloomNet and Gourmet Food and Gift Baskets categories; its ability to achieve its guidance for consolidated revenue growth for the full year in mid-single digit range along with further improvement in gross profit margin and double-digit year-over-year increases in EBITDA and EPS. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results expressed or implied in the forward- looking statements, including, among others: the Company’s ability to leverage its operating platform and reduce operating expenses; its ability to grow its 1-800-Baskets.com business; its ability to manage the seasonality of its businesses; its ability to cost effectively acquire and retain customers; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; 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. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether as a result of new information, future events or otherwise, made in this release or in any of its SEC filings except as may be otherwise stated by the Company. For a more detailed description of these and other risk factors, please refer to the Company’s SEC filings including the Company’s Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties.
Conference Call:
The Company will conduct a conference call to discuss the above details and attached financial results today, Tuesday, April 30, 2013 at 11:00 a.m. (EDT). The call will be “web cast” live via the Internet and can be accessed from the Investor Relations section of the 1-800-FLOWERS.COM web site at www.1800flowersinc.com A recording of the call will be posted on the Investor Relations section of the Company’s web site within two hours of the call’s completion. A telephonic replay of the call can be accessed for 48 hours beginning at 2:00 p.m. EDT on the day of the call at: 1-855-859-2056 or 1-404-537-3406; Conference ID: 893553477.
Note: Attached tables are an integral part of this press release without which the information presented in this press release should be considered incomplete.
| 1-800-FLOWERS.COM, Inc. and Subsidiaries |
| Condensed Consolidated Balance Sheets |
(In thousands) |
| | | | | | |
| | | March 31, 2013 | | | July 1, 2012 |
| | | (unaudited) | | | |
| Assets | | | | | | |
| Current assets: | | | | | | |
| Cash and equivalents | | | $17,004 | | | $28,854 |
| Receivables, net | | | 24,706 | | | 14,968 |
| Inventories | | | 59,877 | | | 55,744 |
| Deferred tax assets | | | 6,332 | | | 4,993 |
| Prepaid and other | | | 6,221 | | | 8,447 |
| Current assets of discontinued operations | | | - | | | 100 |
| Total current assets | | | 114,140 | | | 113,106 |
| | | | | | |
| Property, plant and equipment, net | | | 51,365 | | | 48,669 |
| Goodwill | | | 47,901 | | | 47,901 |
| Other intangibles, net | | | 43,944 | | | 41,838 |
| Deferred income taxes | | | 2,822 | | | 2,824 |
| Other assets | | | 9,353 | | | 7,875 |
| Total assets | | | $269,525 | | | $262,213 |
| | | | | | |
| Liabilities and stockholders’ equity | | | | | | |
| Current liabilities: | | | | | | |
| Accounts payable | | | $20,537 | | | $17,619 |
| Accrued expenses | | | 55,412 | | | 49,900 |
| Current maturities of long-term debt and obligations under capital leases | | | 18,000 | | | 15,756 |
| Current liabilities of discontinued operations | | | - | | | 110 |
| Total current liabilities | | | 93,949 | | | 83,385 |
| | | | | | |
| Long-term debt and obligations under capital leases | | | - | | | 13,500 |
| Other liabilities | | | 5,242 | | | 3,580 |
| Total liabilities | | | 99,191 | | | 100,465 |
| Total stockholders’ equity | | | 170,334 | | | 161,748 |
| Total liabilities and stockholders’ equity | | | $269,525 | | | $262,213 |
| | | | | | |
| 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 | | Nine Months Ended |
| | March 31, 2013 | | April 1, 2012 | | March 31, 2013 | | April 1, 2012 |
| | | | | | | | |
| Net revenues: | | | | | | | | |
| E-commerce (combined online and telephonic) | | $144,888 | | $132,190 | | $398,978 | | $376,110 |
| Other | | 47,736 | | 47,469 | | 167,530 | | 160,592 |
| Total net revenues | | 192,624 | | 179,659 | | 566,508 | | 536,702 |
| Cost of revenues | | 112,221 | | 106,620 | | 331,983 | | 316,775 |
| Gross profit | | 80,403 | | 73,039 | | 234,525 | | 219,927 |
| | | | | | | | |
| Operating expenses: | | | | | | | | |
| Marketing and sales | | 51,836 | | 48,598 | | 139,727 | | 133,900 |
| Technology and development | | 5,624 | | 5,646 | | 16,415 | | 15,252 |
| General and administrative | | 13,998 | | 13,766 | | 40,898 | | 39,057 |
| Depreciation and amortization | | 4,849 | | 4,874 | | 13,838 | | 14,705 |
| | | | | | | | |
| Total operating expenses | | 76,307 | | 72,884 | | 210,878 | | 202,914 |
| | | | | | | | |
| Gain on sale of stores | | - | | - | | - | | 3,789 |
| | | | | | | | |
| Operating income | | 4,096 | | 155 | | 23,647 | | 20,802 |
| | | | | | | | |
| Interest expense, net | | 227 | | 319 | | 1,088 | | 1,990 |
| | | | | | | | |
| Income (loss) from continuing operations before income taxes | | 3,869 | | (164) | | 22,559 | | 18,812 |
| Income tax expense (benefit) from continuing operations | | 1,231 | | (215) | | 8,516 | | 7,318 |
| Income from continuing operations | | 2,638 | | 51 | | 14,043 | | 11,494 |
| | | | | | | | |
| Loss from discontinued operations, net of tax | | - | | - | | - | | (22) |
| Gain (loss) on sale of discontinued operations, net of tax | | - | | (136) | | - | | 4,342 |
| Income (loss) from discontinued operations | | - | | (136) | | - | | 4,320 |
| | | | | | | | |
| Net income (loss) | | $2,638 | | $(85) | | $14,043 | | $15,814 |
| | | | | | | | |
| Net income (loss) per common share (basic) | | | | | | | | |
| From continuing operations | | $0.04 | | $0.00 | | $0.22 | | $0.18 |
| From discontinued operations | | 0.00 | | 0.00 | | 0.00 | | 0.07 |
| Net income (loss) per common share (basic) | | $0.04 | | $0.00 | | $0.22 | | $0.24 |
| | | | | | | | |
| Net income (loss) per common share (diluted) | | | | | | | | |
| From continuing operations | | $0.04 | | $0.00 | | $0.21 | | $0.17 |
| From discontinued operations | | 0.00 | | 0.00 | | 0.00 | | 0.07 |
| Net income (loss) per common share (diluted) | | $0.04 | | $0.00 | | $0.21 | | $0.24 |
| | | | | | | | |
| Weighted average shares used in the calculation of net income (loss) per common share | | | | | | | | |
| Basic | | 64,256 | | 64,988 | | 64,528 | | 64,683 |
| Diluted | | 66,111 | | 66,299 | | 66,647 | | 66,257 |
| | | | | | | | |
| 1-800-FLOWERS.COM, Inc. and Subsidiaries |
| Selected Financial Information |
| Consolidated Statements of Cash Flows |
(In thousands) |
(unaudited) |
| | | |
| | | Nine Months Ended |
| | | March 31, 2013 | | | April 1, 2012 |
| | | | | | |
| Operating activities | | | | | | |
| Net income | | | $14,043 | | | | $15,814 | |
| Reconciliation of net income to net cash provided by operations: | | | | | | |
| Operating activities of discontinued operations | | | (10 | ) | | | 1,927 | |
| Gain on sale of discontinued operations | | | - | | | | (8,733 | ) |
| Depreciation and amortization | | | 13,839 | | | | 14,705 | |
| Amortization of deferred financing costs | | | 343 | | | | 343 | |
| Deferred income taxes | | | (1,337 | ) | | | 5,720 | |
| Bad debt expense | | | 762 | | | | 692 | |
| Stock-based compensation | | | 3,397 | | | | 3,736 | |
| Other non-cash items | | | 213 | | | | (22 | ) |
| Changes in operating items, excluding the effects of acquisitions: | | | | | | |
| Receivables | | | (10,500 | ) | | | (9,709 | ) |
| Inventories | | | (4,133 | ) | | | (7,670 | ) |
| Prepaid and other | | | 2,226 | | | | 804 | |
| Accounts payable and accrued expenses | | | 7,694 | | | | 2,489 | |
| Other assets | | | (464 | ) | | | 1,604 | |
| Other liabilities | | | 662 | | | | 1,187 | |
| Net cash provided by operating activities | | | 26,735 | | | | 22,887 | |
| | | | | | |
| Investing activities | | | | | | |
| Acquisitions, net of cash acquired | | | (2,000 | ) | | | (4,336 | ) |
| Proceeds from sale of business | | | - | | | | 12,826 | |
| Capital expenditures | | | (15,118 | ) | | | (11,986 | ) |
| Purchase of investments | | | (1,337 | ) | | | (1,111 | ) |
| Other, net | | | 22 | | | | (271 | ) |
| Net cash used in investing activities | | | (18,433 | ) | | | (4,878 | ) |
| | | | | | |
| Financing activities | | | | | | |
| Acquisition of treasury stock | | | (8,921 | ) | | | (1,925 | ) |
| Proceeds from exercise of employee stock options | | | 67 | | | | - | |
| Proceeds from bank borrowings | | | 47,000 | | | | 56,000 | |
| Repayment of notes payable and bank borrowings | | | (58,250 | ) | | | (67,250 | ) |
| Other | | | (48 | ) | | | (1,400 | ) |
| Net cash used in financing activities | | | (20,152 | ) | | | (14,575 | ) |
| | | | | | |
| Net change in cash and equivalents | | | (11,850 | ) | | | 3,434 | |
| Cash and equivalents: | | | | | | |
| Beginning of period | | | 28,854 | | | | 21,442 | |
| End of period | | | $17,004 | | | | $24,876 | |
| | | | | | | | |
| 1-800-FLOWERS.COM, Inc. and Subsidiaries |
| Selected Financial Information |
| Category Information |
(in thousands) |
(unaudited) |
| | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | March 31, 2013 | | April 1, 2012 | | % Change | | March 31, 2013 | | April 1, 2012 | | % Change |
| | | | | | | | | | | | |
| Net revenues from continuing operations: | | | | | | | | | | | | |
| 1-800-Flowers.com Consumer Floral | | $121,005 | | | $112,987 | | | 7.1 | % | | $285,608 | | | $274,168 | | | 4.2 | % |
| BloomNet Wire Service | | 22,819 | | | 24,060 | | | -5.2 | % | | 61,320 | | | 60,837 | | | 0.8 | % |
| Gourmet Food & Gift Baskets | | 49,341 | | | 43,104 | | | 14.5 | % | | 220,483 | | | 202,829 | | | 8.7 | % |
| Corporate (*) | | 200 | | | 199 | | | 0.5 | % | | 594 | | | 575 | | | 3.3 | % |
| Intercompany eliminations | | (741 | ) | | (691 | ) | | -7.2 | % | | (1,497 | ) | | (1,707 | ) | | 12.3 | % |
| Total net revenues from continuing operations | | $192,624 | | | $179,659 | | | 7.2 | % | | $566,508 | | | $536,702 | | | 5.6 | % |
| | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | March 31, 2013 | | April 1, 2012 | | % Change | | March 31, 2013 | | April 1, 2012 | | % Change |
| | | | | | | | | | | | |
| Gross profit from continuing operations: | | | | | | | | | | | | |
| 1-800-Flowers.com Consumer Floral | | $48,455 | | | $44,045 | | | 10.0 | % | | $112,701 | | | $106,258 | | | 6.1 | % |
| | 40.0 | % | | 39.0 | % | | | | 39.5 | % | | 38.8 | % | | |
| | | | | | | | | | | | |
| BloomNet Wire Service | | 11,382 | | | 10,733 | | | 6.0 | % | | 30,974 | | | 28,254 | | | 9.6 | % |
| | 49.9 | % | | 44.6 | % | | | | 50.5 | % | | 46.4 | % | | |
| | | | | | | | | | | | |
| Gourmet Food & Gift Baskets | | 20,418 | | | 18,116 | | | 12.7 | % | | 90,200 | | | 84,981 | | | 6.1 | % |
| | 41.4 | % | | 42.0 | % | | | | 40.9 | % | | 41.9 | % | | |
| | | | | | | | | | | | |
| Corporate (*) | | 148 | | | 145 | | | | | 650 | | | 434 | | | |
| | 74.0 | % | | 72.9 | % | | 2.1 | % | | 109.4 | % | | 75.6 | % | | 49.8 | % |
| | | | | | | | | | | | |
| Total gross profit from continuing operations | | $80,403 | | | $73,039 | | | 10.1 | % | | $234,525 | | | $219,927 | | | 6.6 | % |
| | 41.7 | % | | 40.7 | % | | | | 41.4 | % | | 41.0 | % | | |
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | March 31, 2013 | | April 1, 2012 | | % Change | | March 31, 2013 | | April 1, 2012 | | % Change |
| | | | | | | | | | | | |
| Adjusted EBITDA from continuing operations: | | | | | | | | | | | | |
| Segment Contribution Margin (**) | | | | | | | | | | | | |
| 1-800-Flowers.com Consumer Floral | | $13,902 | | | $10,948 | | | 27.0 | % | | $31,074 | | | $26,899 | | | 15.5 | % |
| BloomNet Wire Service | | 6,952 | | | 6,258 | | | 11.1 | % | | 18,797 | | | 15,925 | | | 18.0 | % |
| Gourmet Food & Gift Baskets (***) | | 970 | | | 948 | | | 2.3 | % | | 25,351 | | | 29,188 | | | -13.1 | % |
| Segment Contribution Margin Subtotal | | 21,824 | | | 18,154 | | | 20.2 | % | | 75,222 | | | 72,012 | | | 4.5 | % |
| Corporate (*) | | (12,879 | ) | | (13,125 | ) | | 1.9 | % | | (37,737 | ) | | (36,505 | ) | | -3.4 | % |
| EBITDA from continuing operations | | 8,945 | | | 5,029 | | | 77.9 | % | | 37,485 | | | 35,507 | | | 5.6 | % |
| Add: Stock-based compensation | | 1,093 | | | 1,356 | | | -19.4 | % | | 3,397 | | | 3,736 | | | -9.1 | % |
EBITDA from continuing operations, excluding stock-based compensation | | 10,038 | | | 6,385 | | | 57.2 | % | | 40,882 | | | 39,243 | | | 4.2 | % |
| Less: Gain on sale of stores (***) | | - | | | - | | | - | | | - | | | 3,789 | | | - | |
| Adjusted EBITDA from continuing operations | | $10,038 | | | $6,385 | | | 57.2 | % | | $40,882 | | | $35,454 | | | 15.3 | % |
| | | | | | | | | | | | |
| 1-800-FLOWERS.COM, Inc. and Subsidiaries |
| Selected Financial Information |
| Category Information |
(in thousands) |
(unaudited) |
| | | | |
| | Three Months Ended | | Nine Months Ended |
| | March 31, 2013 | | April 1, 2012 | | March 31, 2013 | | April 1, 2012 |
Reconciliation of Net Income from continuing operations to Adjusted EBITDA from continuing operations, less stock-based compensation (**): | | | | | | | | |
Net income from continuing operations | | $2,638 | | $51 | | $14,043 | | $11,494 |
| Add: | | | | | | | | |
| Interest expense, net | | 227 | | 319 | | 1,088 | | 1,990 |
| Depreciation and amortization | | 4,849 | | 4,874 | | 13,838 | | 14,705 |
| Income tax expense | | 1,231 | | - | | 8,516 | | 7,318 |
| Less: | | | | | | | | |
| Income tax benefit | | - | | 215 | | - | | - |
| EBITDA | | 8,945 | | 5,029 | | 37,485 | | 35,507 |
| Add: Stock-based compensation | | 1,093 | | 1,356 | | 3,397 | | 3,736 |
| EBITDA , less stock-based compensation | | 10,038 | | 6,385 | | 40,882 | | 39,243 |
| Less: Gain on sale of stores | | - | | - | | - | | 3,789 |
| Adjusted EBITDA from continuing operations | | $10,038 | | $6,385 | | $40,882 | | $35,454 |
| | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | March 31, 2013 | | April 1, 2012 | | March 31, 2013 | | April 1, 2012 |
Reconciliation of Net Income and EPS from continuing operations to Adjusted Net Income and EPS from continuing operations: | | | | | | | | |
| Net income from continuing operations | | $2,638 | | $51 | | $14,043 | | $11,494 |
| Less: Gain on sale of stores, net of tax (***) | | - | | - | | - | | 2,315 |
| Adjusted Net Income from continuing operations | | $2,638 | | $51 | | $14,043 | | $9,179 |
| | | | | | | | |
| Net Income per common share from continuing operations | | | | | | | | |
| Basic | | $0.04 | | $0.00 | | $0.22 | | $0.18 |
| Diluted | | $0.04 | | $0.00 | | $0.21 | | $0.17 |
| | | | | | | | |
| Adjusted Net Income per common share from continuing operations | | | | | | | | |
| Basic | | $0.04 | | $0.00 | | $0.22 | | $0.14 |
| Diluted | | $0.04 | | $0.00 | | $0.21 | | $0.14 |
| | | | | | | | |
Weighted average shares used in the calculation of net income per common share from continuing operations | | | | | | | | |
| Basic | | 64,256 | | 64,988 | | 64,528 | | 64,683 |
| Diluted | | 66,111 | | 66,299 | | 66,647 | | 66,257 |
| | | | | | | | |
| (*) | | Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment. |
| | |
| (**) | | Performance is measured based on segment contribution margin or segment Adjusted EBITDA, reflecting only the direct controllable revenue and operating expenses of the segments. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead, described above, depreciation and amortization, other income (net), nor does it include one-time charges. |
| | |
| | Management utilizes EBITDA, and adjusted financial information, as a performance measurement tool because it considers such information a meaningful supplemental measure of its performance and believes it is frequently used by the investment community in the evaluation of companies with comparable market capitalization. The Company also uses EBITDA and adjusted financial information as one of the factors used to determine the total amount of bonuses available to be awarded to executive officers and other employees. The Company’s credit agreement uses EBITDA and adjusted financial information to measure compliance with covenants such as interest coverage and debt incurrence. EBITDA and adjusted financial information is also used by the Company to evaluate and price potential acquisition candidates. EBITDA and adjusted financial information have limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations are: (a) EBITDA does not reflect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the Company's debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA does not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company's performance. |
| | |
| (***) | | GFGB segment contribution margin during the nine months ended April 1, 2012 includes a $3.8 million gain on the sale ($2.5mm, net of tax) of 17 Fannie May stores, which are being operated as franchised locations post-sale. |
| | |
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CONTACT:
1-800-FLOWERS.COM, Inc.
Investor Contact:
Joseph D. Pititto, 516-237-6131
invest@1800flowers.com
or
Media Contact:
Yanique Woodall, 516-237-6028
ywoodall@1800flowers.com
