Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Oct. 01, 2017 | Nov. 03, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | 1 800 FLOWERS COM INC | |
Entity Central Index Key | 1,084,869 | |
Trading Symbol | flws | |
Current Fiscal Year End Date | --07-01 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | Oct. 1, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 28,567,063 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 36,057,399 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Oct. 01, 2017 | Jul. 02, 2017 |
Assets | ||
Cash and cash equivalents | $ 9,139 | $ 149,732 |
Trade receivables, net | 35,710 | 14,073 |
Inventories | 148,420 | 75,862 |
Prepaid and other | 26,943 | 17,735 |
Total current assets | 220,212 | 257,402 |
Property, plant and equipment, net | 157,473 | 161,381 |
Goodwill | 62,590 | 62,590 |
Total identifiable intangible assets, net | 60,729 | 61,090 |
Other assets | 11,329 | 10,007 |
Total assets | 512,333 | 552,470 |
Liabilities and Stockholders' Equity | ||
Accounts payable | 27,435 | 27,781 |
Accrued expenses | 67,014 | 90,206 |
Current maturities of long-term debt | 7,906 | 7,188 |
Total current liabilities | 102,355 | 125,175 |
Long-term debt | 99,461 | 101,377 |
Deferred tax liabilities | 33,482 | 33,868 |
Other liabilities | 11,237 | 9,811 |
Total liabilities | 246,535 | 270,231 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued | ||
Additional paid-in-capital | 338,829 | 337,726 |
Retained earnings | 19,416 | 32,638 |
Accumulated other comprehensive loss | (188) | (187) |
Treasury stock, at cost, 15,167,290 and 14,709,731 Class A shares at October 1, 2017 and July 2, 2017, respectively, and 5,280,000 Class B shares at October 1, 2017 and July 2, 2017 | (93,110) | (88,790) |
Total stockholders’ equity | 265,798 | 282,239 |
Total liabilities and stockholders’ equity | 512,333 | 552,470 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Common stock | 513 | 513 |
Common Class B [Member] | ||
Stockholders’ equity: | ||
Common stock | $ 338 | $ 339 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Oct. 01, 2017 | Jul. 02, 2017 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 51,292,319 | 51,227,779 |
Treasury stock, shares (in shares) | 15,167,290 | 14,709,731 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 33,847,063 | 33,901,603 |
Treasury stock, shares (in shares) | 5,280,000 | 5,280,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 01, 2017 | Oct. 02, 2016 | |
Net revenues | $ 157,349 | $ 165,829 |
Cost of revenues | 90,071 | 94,442 |
Gross profit | 67,278 | 71,387 |
Operating expenses: | ||
Marketing and sales | 49,722 | 55,078 |
Technology and development | 9,670 | 9,488 |
General and administrative | 19,405 | 21,933 |
Depreciation and amortization | 8,084 | 7,997 |
Total operating expenses | 86,881 | 94,496 |
Operating loss | (19,603) | (23,109) |
Interest expense, net | 1,031 | 1,451 |
Other income, net | (260) | (150) |
Loss before income taxes | (20,374) | (24,410) |
Income tax benefit | (7,152) | (8,639) |
Net loss | $ (13,222) | $ (15,771) |
Basic and diluted net loss per common share (in dollars per share) | $ (0.20) | $ (0.24) |
Basic and diluted weighted average shares used in the calculation of net loss per common share (in shares) | 64,954 | 65,081 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2017 | Oct. 02, 2016 | |
Net loss | $ (13,222) | $ (15,771) |
Other comprehensive income/(loss) (currency translation) | (1) | 95 |
Comprehensive loss | $ (13,223) | $ (15,676) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2017 | Oct. 02, 2016 | |
Operating activities: | ||
Net loss | $ (13,222) | $ (15,771) |
Reconciliation of net loss to net cash used in operating activities, net of acquisitions/dispositions: | ||
Depreciation and amortization | 8,084 | 7,997 |
Amortization of deferred financing costs | 240 | 374 |
Deferred income taxes | (386) | (703) |
Bad debt expense | 200 | 188 |
Stock-based compensation | 1,101 | 1,774 |
Other non-cash items | 239 | 264 |
Changes in operating items: | ||
Trade receivables | (21,837) | (23,886) |
Inventories | (72,558) | (88,054) |
Prepaid and other | (9,207) | (11,470) |
Accounts payable and accrued expenses | (15,038) | (5,518) |
Other assets | (14) | |
Other liabilities | 96 | (37) |
Net cash used in operating activities | (122,302) | (134,842) |
Investing activities: | ||
Working capital adjustment related to sale of business | (8,500) | |
Capital expenditures, net of non-cash expenditures | (4,034) | (4,703) |
Net cash used in investing activities | (12,534) | (4,703) |
Financing activities: | ||
Acquisition of treasury stock | (4,320) | (2,964) |
Proceeds from exercise of employee stock options | 1 | |
Proceeds from bank borrowings | 125,000 | |
Repayment of notes payable and bank borrowings | (1,437) | (3,563) |
Net cash (used in) provided by financing activities | (5,757) | 118,474 |
Net change in cash and cash equivalents | (140,593) | (21,071) |
Cash and cash equivalents: | ||
Beginning of period | 149,732 | 27,826 |
End of period | $ 9,139 | $ 6,755 |
Note 1 - Accounting Policies
Note 1 - Accounting Policies | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Note 1 – Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by 1 800 10 10 X. not the three October 1, 2017 not may July 1, 2018. 10 July 2, 2017. The Company ’s quarterly results may second 50% third fourth first 2017, April 16th, third 2016. 2018, April 1st, third 2018. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Recent Accounting Pronouncements In May 2014, No. 2014 09, ’s catalogs will be expensed upon shipment, instead of being capitalized and amortized in direct proportion to the actual sales; gift card breakage will be estimated based on the historical pattern of gift card redemption, rather than when redemption is considered remote; the Company will defer revenue at the time the Celebrations Reward loyalty points are earned using a relative fair value approach, rather than accruing a liability equal to the incremental cost of fulfilling its obligations. We have further identified the timing of revenue recognition for e-commerce orders (shipping point versus destination) as a potential issue in our analysis, which is not first June 30, 2019 In July 2015, No. 2015 11, 330 The Company adopted this standard effective July 3, 2017. 2015 11 not In January 2016, No. 2016 01, – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." The pronouncement requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. This guidance will become effective for the Company's fiscal year ending June 30, 2019. not In February 2016, No. 2016 02, 842 ’s fiscal year ending June 28, 2020. In March 2016, No. 2016 09, No. 2016 09 No. 2016 09 2016 09, 2017. $1.0 July 2, 2017. no 700,000 July 2, 2017, no not 2017, not ’ maximum individual statutory tax rate in the relevant jurisdiction, up from the minimum statutory requirement, without resulting in liability classification of the award. We adopted this change on a modified retrospective basis, with no not In June 2016, No. 2016 13, 326 2016 13 ’s assumptions, models and methods for estimating expected credit losses. ASU 2016 13 July 4, 2021, In June 2016, 2016 15, 230 ’s Emerging Issues Task Force.” ASU 2016 15 June 30, 2019, not In January 2017, No. 2017 01, 805 2017 01 2017 01 June 30, 2019, not In January 2017, No. 2017 04, 350 two 2017 04, ’s fiscal year ending July 4, 2021, not In February 2017, ASU No. 2017 05, 2017 05 June 30, 2019 may In May 2017, No 2017 09, 718 types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. An entity would not 2017 09 June 30, 2019, |
Note 2 - Net Loss Per Common Sh
Note 2 - Net Loss Per Common Share | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 2 Loss Per Common Share Basic n et loss per common share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted-average number of common shares outstanding during the period, and excludes the dilutive potential common shares (consisting of employee stock options and unvested restricted stock awards), as their inclusion would be antidilutive. As a result of the net loss attributable to 1 800 three October 1, 2017 October 2, 2016, no |
Note 3 - Stock-based Compensati
Note 3 - Stock-based Compensation | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 3 – Stock-Based Compensation The Company has a Long Term Incentive and Share Award Plan, which is more fully described in Note 12 13 to the consolidated financial statements included in the Company’s Annual Report on Form 10 July 2, 2017, The amounts of stock-based compensation expense recognized in the periods presented are as follows: Three Months Ended October 1, 2017 October 2, 2016 (in thousands) Stock options $ 108 $ 114 Restricted stock 993 1,660 Total 1,101 1,774 Deferred income tax benefit 386 703 Stock-based compensation expense, net $ 715 $ 1,071 Stock-based compensation is recorded within the following line items of operating expenses: Three Months Ended October 1, 2017 October 2, 2016 (in thousands) Marketing and sales $ 298 $ 547 Technology and development 60 100 General and administrative 743 1,127 Total $ 1,101 $ 1,774 Stock based compensation expense has not 12 Stock Options The following table summarizes stock option activity during the three October 1, 2017: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (000s) Outstanding at July 2, 2017 2,127,734 $ 2.42 Granted - $ - Exercised - $ - Forfeited (7,500 ) $ 9.95 Outstanding at October 1, 2017 2,120,234 $ 2.39 3.6 $ 15,817 Options vested or expected to vest at October 1, 2017 2,120,234 $ 2.39 3.6 $ 15,817 Exercisable at October 1, 2017 1,471,234 $ 2.37 3.5 $ 11,057 As of October 1, 2017, not $0.7 1.7 Restricted Stock The Company grants shares of Common Stock to its employees that are subject to restrictions on transfer and risk of forfeiture until fulfillment of applicable service and performance conditions and, in certain cases, holding periods (Restricted Stock). The following table summarizes the activity of non-vested restricted stock awards during the nine October 1, 2017: Shares Weighted Average Grant Date Fair Value Non-vested at July 2, 2017 1,352,873 $ 7.44 Granted 99,821 $ 8.81 Vested (10,000 ) $ 7.91 Forfeited (5,000 ) $ 9.03 Non-vested at October 1, 2017 1,437,634 $ 7.53 The fair value of non-vested shares is determined based on the closing stock price on the grant date. As of October 1, 2017, $5.2 1.8 |
Note 4 - Disposition
Note 4 - Disposition | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 4 – Disposition On March 15, 2017, agreed to purchase from the Company all of the outstanding equity of Fannie May May May”) $115.0 The working capital adjustment was finalized in August 2017, $11.4 $14.6 2017. The Company and Ferrero also entered into a transition services agreement whereby the Company will provide certain post-closing services to Ferrero and Fannie May for a period of approximately 18 May, May Operating results of Fannie May ’s consolidated financial statements through May 30, 2017, 2017, May $85.6 not |
Note 5 - Inventory
Note 5 - Inventory | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 5 – Inventory The Company ’s inventory, stated at cost, which is not October 1, 2017 July 2, 2017 (in thousands) Finished goods $ 85,141 $ 34,476 Work-in-process 11,776 11,933 Raw materials 51,503 29,453 Total inventory $ 148,420 $ 75,862 |
Note 6 - Goodwill and Intangibl
Note 6 - Goodwill and Intangible Assets | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 6 – Goodwill and Intangible Assets The following table presents goodwill by segment and the related change in the net carrying amount: 1-800-Flowers.com Consumer Floral BloomNet Wire Service Gourmet Food & Gift Baskets Total (in thousands) Balance at October 1, 2017 and July 2, 2017 $ 17,441 $ - $ 45,149 $ 62,590 The Company ’s other intangible assets consist of the following: October 1, 2017 July 2, 2017 Amortization Period Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (in years) (in thousands) Intangible assets with determinable lives Investment in licenses 14-16 $ 7,420 $ 5,963 $ 1,457 $ 7,420 $ 5,937 $ 1,483 Customer lists 3-10 12,184 8,533 3,651 12,184 8,227 3,957 Other 5-14 2,946 2,074 872 2,946 2,045 901 Total intangible assets with determinable lives 22,550 16,570 5,980 22,550 16,209 6,341 Trademarks with indefinite lives 54,749 - 54,749 54,749 - 54,749 Total identifiable intangible assets $ 77,299 $ 16,570 $ 60,729 $ 77,299 $ 16,209 $ 61,090 Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not 2018 $1.0 2019 $0.7 2020 $0.6 2021 $0.6million, 2022 $0.5 $2.6million. |
Note 7 - Investments
Note 7 - Investments | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Note 7 – Investments The Company has certain investments in non-marketable equity instruments of private companies. The Company accounts for these investments using the equity method if they provide the Company the ability to exercise significant influence, but not 20% 50%, ’s Board of Directors, are considered in determining whether the equity method is appropriate. The Company records equity method investments initially at cost, and adjusts the carrying amount to reflect the Company’s share of the earnings or losses of the investee. The Company ’s equity method investment is comprised of a 29.6% May 31, 2012. $1.0 October 1, 2017 July 2, 2017, three October 1, 2017 October 2, 2016 $0.1 Investments in non-marketable equity instruments of private companies, where the Company does not st, and are included within “Other assets” in the Company’s consolidated balance sheets. The aggregate carrying amount of the Company’s cost method investments was $1.7 October 1, 2017 July 2, 2017. The Company also holds certain trading securities associated with its Non-Qualified Deferred Compensation Plan (“NQDC Plan”). These investments are measured using quoted market prices at the reporting date and are included within the “Other assets” line item in the condensed consolidated balance sheets (see Note 10 ). Each reporting period, the Company uses available qualitative and quantitative information to evaluate its investments for impairment. When a decline in fair value, if any, is determined to be other-than-temporary, an impairment charge is recorded in the consolidated statement of operations. |
Note 8 - Debt
Note 8 - Debt | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 8 –Debt The Company ’s current and long-term debt consists of the following: October 1, 2017 July 2, 2017 (in thousands) Revolver (1) $ - $ - Term Loan (1) 110,688 112,125 Deferred financing costs (3,321 ) (3,560 ) Total debt 107,367 108,565 Less: current debt 7,906 7,188 Long-term debt $ 99,461 $ 101,377 ( 1 On December 23, 2016, “2016 2016 September 30, 2014 ( “2014 $115.0 two December 23, 2021. 19 April 2, 2017, 5% 7.5% 10% 12.5% 15% $61.8 $200 $100 January 1 August 1, may For each borrowing under the 2016 may 1 0.75% 1.5%, 0.5% 1% 2 1.75% 2.5%, 2016 compliance with these covenants as of October 1, 2017. 2016 Future principal payments under th e term loan are as follows: $5.7 2018, $10.1 2019, $12.9 2020, $15.8 2021, $66.1 2022. |
Note 9 - Property, Plant and Eq
Note 9 - Property, Plant and Equipment | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 9 The Company ’s property, plant and equipment consists of the following: October 1, 2017 July 2, 2017 (in thousands) Land $ 30,789 $ 30,789 Orchards in production and land improvements 9,703 9,703 Building and building improvements 57,275 56,791 Leasehold improvements 11,966 11,950 Production equipment and furniture and fixtures 47,763 47,293 Computer and telecommunication equipment 46,071 45,026 Software 120,990 119,177 Capital projects in progress - orchards 10,178 9,971 Property, plant and equipment, gross 334,735 330,700 Accumulated depreciation and amortization (177,262 ) (169,319 ) Property, plant and equipment, net $ 157,473 $ 161,381 |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurements | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 10 Cash and cash equivalents, trade and other receivables, prepaids, accounts payable and accrued expenses are reflected in the consolidated balance sheets at carrying value, which approximates fair value due to the short-term nature of these instruments. Although no ’s investments in non-marketable equity instruments of private companies are carried at cost and are periodically assessed for other-than-temporary impairment, when an event or circumstances indicate that an other-than-temporary decline in value may may not may Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 3 three Level 1 Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2 Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not Level 3 Valuations based on inputs that are supported by little or no The following table presents by level, within the fair value hierarchy, financial assets and liabilities measured at fair value on a recurring basis: Carrying Value Fair Value Measurements Assets (Liabilities) Level 1 Level 2 Level 3 (in thousands) Assets (liabilities) as of October 1, 2017: Trading securities held in a “rabbi trust” (1) $ 8,241 $ 8,241 $ - $ - $ 8,241 $ 8,241 $ - $ - Assets (liabilities) as of July 2, 2017: Trading securities held in a “rabbi trust” (1) $ 6,916 $ 6,916 $ - $ - $ 6,916 $ 6,916 $ - $ - ( 1 The Company has established a Non-qualified Deferred Compensation Plan for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a “rabbi trust” which is restricted for payment to participants of the NQDC Plan. Trading securities held in a rabbi trust are measured using quoted market prices at the reporting date and are included in the “Other assets” line item, with the corresponding liability included in the “Other liabilities” line item in the consolidated balance sheets. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 11 – Income Taxes At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. This estimate is used in providing for income taxes on a year-to-date basis and may ’s effective tax rate from operations for the three October 1, 2017 35.1%, 35.4% 2018 2017 35% The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various fo reign countries. The Company completed its audit by the Internal Revenue Service for fiscal year 2014, 2015 2016 2012. 2012. The Company ’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. At October 1, 2017, $0.4 no twelve |
Note 12 - Business Segments
Note 12 - Business Segments | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 12 The Company ’s management reviews the results of the Company’s operations by the following three • 1 800 • BloomNet Wire Service, and • Gourmet Food and Gift Baskets Segment performance is measured based on contribution margin, which includes only the direct controllable revenue and operating expenses of the segments. As such, management ’s measure of profitability for these segments does not not Net revenues: Three Months Ended October 1, 2017 October 2, 2016 (in thousands) 1-800-Flowers.com Consumer Floral $ 76,610 $ 75,215 BloomNet Wire Service 19,764 20,964 Gourmet Food & Gift Baskets 60,986 69,814 Corporate 270 263 Intercompany eliminations (281 ) (427 ) Total net revenues $ 157,349 $ 165,829 Operating Loss: Three Months Ended October 1, 2017 October 2, 2016 (in thousands) Segment Contribution Margin: 1-800-Flowers.com Consumer Floral $ 6,971 $ 8,181 BloomNet Wire Service 6,701 7,279 Gourmet Food & Gift Baskets (4,987 ) (9,304 ) Segment Contribution Margin Subtotal 8,685 6,156 Corporate (a) (20,204 ) (21,268 ) Depreciation and amortization (8,084 ) (7,997 ) Operating loss (19,603 ) $ (23,109 ) (a) 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 |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 3 Months Ended |
Oct. 01, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 13 Litigation There are various claims, lawsuits, and pending actions against the Company and its subsidiaries incident to the operations of its businesses. It is the opinion of management, after consultation with counsel, that the ultimate resolution of such claims, lawsuits and pending actions will not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Oct. 01, 2017 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by 1 800 10 10 X. not the three October 1, 2017 not may July 1, 2018. 10 July 2, 2017. The Company ’s quarterly results may second 50% third fourth first 2017, April 16th, third 2016. 2018, April 1st, third 2018. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, No. 2014 09, ’s catalogs will be expensed upon shipment, instead of being capitalized and amortized in direct proportion to the actual sales; gift card breakage will be estimated based on the historical pattern of gift card redemption, rather than when redemption is considered remote; the Company will defer revenue at the time the Celebrations Reward loyalty points are earned using a relative fair value approach, rather than accruing a liability equal to the incremental cost of fulfilling its obligations. We have further identified the timing of revenue recognition for e-commerce orders (shipping point versus destination) as a potential issue in our analysis, which is not first June 30, 2019 In July 2015, No. 2015 11, 330 The Company adopted this standard effective July 3, 2017. 2015 11 not In January 2016, No. 2016 01, – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." The pronouncement requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. This guidance will become effective for the Company's fiscal year ending June 30, 2019. not In February 2016, No. 2016 02, 842 ’s fiscal year ending June 28, 2020. In March 2016, No. 2016 09, No. 2016 09 No. 2016 09 2016 09, 2017. $1.0 July 2, 2017. no 700,000 July 2, 2017, no not 2017, not ’ maximum individual statutory tax rate in the relevant jurisdiction, up from the minimum statutory requirement, without resulting in liability classification of the award. We adopted this change on a modified retrospective basis, with no not In June 2016, No. 2016 13, 326 2016 13 ’s assumptions, models and methods for estimating expected credit losses. ASU 2016 13 July 4, 2021, In June 2016, 2016 15, 230 ’s Emerging Issues Task Force.” ASU 2016 15 June 30, 2019, not In January 2017, No. 2017 01, 805 2017 01 2017 01 June 30, 2019, not In January 2017, No. 2017 04, 350 two 2017 04, ’s fiscal year ending July 4, 2021, not In February 2017, ASU No. 2017 05, 2017 05 June 30, 2019 may In May 2017, No 2017 09, 718 types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. An entity would not 2017 09 June 30, 2019, |
Note 3 - Stock-based Compensa21
Note 3 - Stock-based Compensation (Tables) | 3 Months Ended |
Oct. 01, 2017 | |
Notes Tables | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Three Months Ended October 1, 2017 October 2, 2016 (in thousands) Stock options $ 108 $ 114 Restricted stock 993 1,660 Total 1,101 1,774 Deferred income tax benefit 386 703 Stock-based compensation expense, net $ 715 $ 1,071 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended October 1, 2017 October 2, 2016 (in thousands) Marketing and sales $ 298 $ 547 Technology and development 60 100 General and administrative 743 1,127 Total $ 1,101 $ 1,774 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (000s) Outstanding at July 2, 2017 2,127,734 $ 2.42 Granted - $ - Exercised - $ - Forfeited (7,500 ) $ 9.95 Outstanding at October 1, 2017 2,120,234 $ 2.39 3.6 $ 15,817 Options vested or expected to vest at October 1, 2017 2,120,234 $ 2.39 3.6 $ 15,817 Exercisable at October 1, 2017 1,471,234 $ 2.37 3.5 $ 11,057 |
Schedule of Nonvested Share Activity [Table Text Block] | Shares Weighted Average Grant Date Fair Value Non-vested at July 2, 2017 1,352,873 $ 7.44 Granted 99,821 $ 8.81 Vested (10,000 ) $ 7.91 Forfeited (5,000 ) $ 9.03 Non-vested at October 1, 2017 1,437,634 $ 7.53 |
Note 5 - Inventory (Tables)
Note 5 - Inventory (Tables) | 3 Months Ended |
Oct. 01, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | October 1, 2017 July 2, 2017 (in thousands) Finished goods $ 85,141 $ 34,476 Work-in-process 11,776 11,933 Raw materials 51,503 29,453 Total inventory $ 148,420 $ 75,862 |
Note 6 - Goodwill and Intangi23
Note 6 - Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Oct. 01, 2017 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | 1-800-Flowers.com Consumer Floral BloomNet Wire Service Gourmet Food & Gift Baskets Total (in thousands) Balance at October 1, 2017 and July 2, 2017 $ 17,441 $ - $ 45,149 $ 62,590 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block] | October 1, 2017 July 2, 2017 Amortization Period Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (in years) (in thousands) Intangible assets with determinable lives Investment in licenses 14-16 $ 7,420 $ 5,963 $ 1,457 $ 7,420 $ 5,937 $ 1,483 Customer lists 3-10 12,184 8,533 3,651 12,184 8,227 3,957 Other 5-14 2,946 2,074 872 2,946 2,045 901 Total intangible assets with determinable lives 22,550 16,570 5,980 22,550 16,209 6,341 Trademarks with indefinite lives 54,749 - 54,749 54,749 - 54,749 Total identifiable intangible assets $ 77,299 $ 16,570 $ 60,729 $ 77,299 $ 16,209 $ 61,090 |
Note 8 - Debt (Tables)
Note 8 - Debt (Tables) | 3 Months Ended |
Oct. 01, 2017 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | October 1, 2017 July 2, 2017 (in thousands) Revolver (1) $ - $ - Term Loan (1) 110,688 112,125 Deferred financing costs (3,321 ) (3,560 ) Total debt 107,367 108,565 Less: current debt 7,906 7,188 Long-term debt $ 99,461 $ 101,377 |
Note 9 - Property, Plant and 25
Note 9 - Property, Plant and Equipment (Tables) | 3 Months Ended |
Oct. 01, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | October 1, 2017 July 2, 2017 (in thousands) Land $ 30,789 $ 30,789 Orchards in production and land improvements 9,703 9,703 Building and building improvements 57,275 56,791 Leasehold improvements 11,966 11,950 Production equipment and furniture and fixtures 47,763 47,293 Computer and telecommunication equipment 46,071 45,026 Software 120,990 119,177 Capital projects in progress - orchards 10,178 9,971 Property, plant and equipment, gross 334,735 330,700 Accumulated depreciation and amortization (177,262 ) (169,319 ) Property, plant and equipment, net $ 157,473 $ 161,381 |
Note 10 - Fair Value Measurem26
Note 10 - Fair Value Measurements (Tables) | 3 Months Ended |
Oct. 01, 2017 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Carrying Value Fair Value Measurements Assets (Liabilities) Level 1 Level 2 Level 3 (in thousands) Assets (liabilities) as of October 1, 2017: Trading securities held in a “rabbi trust” (1) $ 8,241 $ 8,241 $ - $ - $ 8,241 $ 8,241 $ - $ - Assets (liabilities) as of July 2, 2017: Trading securities held in a “rabbi trust” (1) $ 6,916 $ 6,916 $ - $ - $ 6,916 $ 6,916 $ - $ - |
Note 12 - Business Segments (Ta
Note 12 - Business Segments (Tables) | 3 Months Ended |
Oct. 01, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Net revenues: Three Months Ended October 1, 2017 October 2, 2016 (in thousands) 1-800-Flowers.com Consumer Floral $ 76,610 $ 75,215 BloomNet Wire Service 19,764 20,964 Gourmet Food & Gift Baskets 60,986 69,814 Corporate 270 263 Intercompany eliminations (281 ) (427 ) Total net revenues $ 157,349 $ 165,829 Operating Loss: Three Months Ended October 1, 2017 October 2, 2016 (in thousands) Segment Contribution Margin: 1-800-Flowers.com Consumer Floral $ 6,971 $ 8,181 BloomNet Wire Service 6,701 7,279 Gourmet Food & Gift Baskets (4,987 ) (9,304 ) Segment Contribution Margin Subtotal 8,685 6,156 Corporate (a) (20,204 ) (21,268 ) Depreciation and amortization (8,084 ) (7,997 ) Operating loss (19,603 ) $ (23,109 ) |
Note 1 - Accounting Policies (D
Note 1 - Accounting Policies (Details Textual) $ in Millions | 12 Months Ended |
Jul. 02, 2017USD ($)shares | |
Employee Service Share-based Compensation, Excess Tax Benefit, Shares | shares | 700,000 |
Accounting Standards Update 2016-09 [Member] | |
Employee Service Share-based Compensation, Excess Tax Benefit from Compensation Expense | $ | $ 1 |
Note 2 - Net Loss Per Common 29
Note 2 - Net Loss Per Common Share (Details Textual) - shares shares in Thousands | 3 Months Ended | |
Oct. 01, 2017 | Oct. 02, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Note 3 - Stock-based Compensa30
Note 3 - Stock-based Compensation (Details Textual) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Employee Stock Option [Member] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.7 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 255 days |
Restricted Stock [Member] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 5.2 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 292 days |
Note 3 - Stock-based Compensa31
Note 3 - Stock-based Compensation - Stock-based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2017 | Oct. 02, 2016 | |
Allocated share-based compensation expense | $ 1,101 | $ 1,774 |
Deferred income tax benefit | 386 | 703 |
Allocated share-based compensation expense, net | 715 | 1,071 |
Employee Stock Option [Member] | ||
Allocated share-based compensation expense | 108 | 114 |
Restricted Stock [Member] | ||
Allocated share-based compensation expense | $ 993 | $ 1,660 |
Note 3 - Stock-based Compensa32
Note 3 - Stock-based Compensation - Allocation of Stock-based Compensation to Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2017 | Oct. 02, 2016 | |
Allocated share-based compensation expense | $ 1,101 | $ 1,774 |
Selling and Marketing Expense [Member] | ||
Allocated share-based compensation expense | 298 | 547 |
Technology and development [Member] | ||
Allocated share-based compensation expense | 60 | 100 |
General and Administrative Expense [Member] | ||
Allocated share-based compensation expense | $ 743 | $ 1,127 |
Note 3 - Stock-based Compensa33
Note 3 - Stock-based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Oct. 01, 2017USD ($)$ / sharesshares | |
Outstanding (in shares) | shares | 2,127,734 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 2.42 |
Granted, options (in shares) | shares | |
Granted, weighted average exercise price (in dollars per share) | $ / shares | |
Exercised, options (in shares) | shares | |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | |
Forfeited (in shares) | shares | (7,500) |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | $ 9.95 |
Outstanding (in shares) | shares | 2,120,234 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 2.39 |
Outstanding, weighted average remaining contractual term (Year) | 3 years 219 days |
Outstanding, aggregate intrinsic value | $ | $ 15,817 |
Options vested or expected to vest (in shares) | shares | 2,120,234 |
Options vested or expected to ves, weighted average exercise price (in dollars per share) | $ / shares | $ 2.39 |
Options vested or expected to vest, weighted average remaining contractual term (Year) | 3 years 219 days |
Options vested or expected to vest, aggregate intrinsic value | $ | $ 15,817 |
Exercisable, options (in shares) | shares | 1,471,234 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 2.37 |
Exercisable, weighted average remaining contractual term (Year) | 3 years 182 days |
Exercisable, aggregate intrinsic value | $ | $ 11,057 |
Note 3 - Stock-based Compensa34
Note 3 - Stock-based Compensation - Non-vested Restricted Stock Activity (Details) - Restricted Stock [Member] | 3 Months Ended |
Oct. 01, 2017$ / sharesshares | |
Non-vested (in shares) | shares | 1,352,873 |
Non-vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 7.44 |
Granted, Shares (in shares) | shares | 99,821 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 8.81 |
Vested, Shares (in shares) | shares | (10,000) |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 7.91 |
Forfeited, Shares (in shares) | shares | (5,000) |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 9.03 |
Non-vested (in shares) | shares | 1,437,634 |
Non-vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 7.53 |
Note 4 - Disposition (Details T
Note 4 - Disposition (Details Textual) - Fannie May [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2017 | Jul. 02, 2017 | Jul. 02, 2017 | Mar. 15, 2017 | |
Disposal Group, Including Discontinued Operation, Period of Post-closing Services | 1 year 180 days | |||
Disposal Group, Including Discontinued Operation, Revenue | $ 85.6 | |||
Other Nonoperating Income (Expense) [Member] | ||||
Gain (Loss) on Disposition of Business | $ 14.6 | |||
Ferrero [Member] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 115 | |||
Working Capital Adjustment in Disposition of Business | $ (11.4) |
Note 5 - Inventory - Summary of
Note 5 - Inventory - Summary of Inventory (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Jul. 02, 2017 |
Finished goods | $ 85,141 | $ 34,476 |
Work-in-process | 11,776 | 11,933 |
Raw materials | 51,503 | 29,453 |
Total inventory | $ 148,420 | $ 75,862 |
Note 6 - Goodwill and Intangi37
Note 6 - Goodwill and Intangible Assets (Details Textual) $ in Millions | Oct. 01, 2017USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 1 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 0.7 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 0.6 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 0.6 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 0.5 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 2.6 |
Note 6 - Goodwill and Intangi38
Note 6 - Goodwill and Intangible Assets - Goodwill by Segment (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Jul. 02, 2017 |
Goodwill | $ 62,590 | $ 62,590 |
Consumer Floral [Member] | ||
Goodwill | 17,441 | |
BloomNet Wire Service [Member] | ||
Goodwill | ||
Gourmet Food and Gift Baskets [Member] | ||
Goodwill | $ 45,149 |
Note 6 - Goodwill and Intangi39
Note 6 - Goodwill and Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 01, 2017 | Oct. 02, 2017 | Jul. 02, 2017 | |
Intangible assets with determinable lives, gross | $ 22,550 | $ 22,550 | |
Accumulated amortization | 16,570 | 16,209 | |
Intangible assets with determinable lives, net | 5,980 | 6,341 | |
Trademarks with indefinite lives, gross | 54,749 | 54,749 | |
Total identifiable intangible assets, gross | 77,299 | 77,299 | |
Total identifiable intangible assets, net | 60,729 | 61,090 | $ 61,090 |
Licensing Agreements [Member] | |||
Intangible assets with determinable lives, gross | 7,420 | 7,420 | |
Accumulated amortization | 5,963 | 5,937 | |
Intangible assets with determinable lives, net | $ 1,457 | 1,483 | |
Licensing Agreements [Member] | Minimum [Member] | |||
Finite-lived intangible asset, useful life (Year) | 14 years | ||
Licensing Agreements [Member] | Maximum [Member] | |||
Finite-lived intangible asset, useful life (Year) | 16 years | ||
Customer Lists [Member] | |||
Intangible assets with determinable lives, gross | $ 12,184 | 12,184 | |
Accumulated amortization | 8,533 | 8,227 | |
Intangible assets with determinable lives, net | $ 3,651 | 3,957 | |
Customer Lists [Member] | Minimum [Member] | |||
Finite-lived intangible asset, useful life (Year) | 3 years | ||
Customer Lists [Member] | Maximum [Member] | |||
Finite-lived intangible asset, useful life (Year) | 10 years | ||
Other Intangible Assets [Member] | |||
Intangible assets with determinable lives, gross | $ 2,946 | 2,946 | |
Accumulated amortization | 2,074 | 2,045 | |
Intangible assets with determinable lives, net | $ 872 | $ 901 | |
Other Intangible Assets [Member] | Minimum [Member] | |||
Finite-lived intangible asset, useful life (Year) | 5 years | ||
Other Intangible Assets [Member] | Maximum [Member] | |||
Finite-lived intangible asset, useful life (Year) | 14 years |
Note 7 - Investments (Details T
Note 7 - Investments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Oct. 01, 2017 | Oct. 02, 2016 | Jul. 02, 2017 | |
Cost Method Investments | $ 1.7 | $ 1.7 | |
Flores Online [Member] | |||
Equity Method Investment, Ownership Percentage | 29.60% | ||
Equity Method Investments | $ 1 | $ 1 | |
Income (Loss) from Equity Method Investments | $ 0.1 | $ 0.1 |
Note 8 - Debt (Details Textual)
Note 8 - Debt (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |||
Oct. 01, 2017 | Jul. 02, 2017 | Sep. 30, 2014 | ||
Credit Facility 2014 [Member] | Revolving Credit Facility [Member] | ||||
Proceeds from Lines of Credit | $ 200,000 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 100,000 | |||
Term Loan [Member] | ||||
Long-term Debt | [1] | 110,688 | $ 112,125 | |
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | 5,700 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 10,100 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 12,900 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 15,800 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 66,100 | |||
Term Loan [Member] | Credit Facility 2014 [Member] | ||||
Long-term Debt | $ 115,000 | |||
Debt Instrument, Number of Installment Payment | 19 | |||
Debt Instrument, Principal Payment Percentage In Year One | 5.00% | |||
Debt Instrument, Principal Payment Percentage In Year Two | 7.50% | |||
Debt Instrument, Principal Payment Percentage In Year Three | 10.00% | |||
Debt Instrument, Principal Payment Percentage In Year Four | 12.50% | |||
Debt Instrument, Principal Payment Percentage in Year Five | 15.00% | |||
Debt Instrument, Principal Payment Due Upon Maturity | $ 61,800 | |||
Line of Credit and Term Loan [Member] | Base Rate [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||
Line of Credit and Term Loan [Member] | Base Rate [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Line of Credit and Term Loan [Member] | Federal Funds Effective Swap Rate [Member] | ||||
Debt Instrument, Base Rate, Basis Spread on Variable Rate | 0.50% | |||
Line of Credit and Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Base Rate, Basis Spread on Variable Rate | 1.00% | |||
Line of Credit and Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||
Line of Credit and Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
[1] | (1) On December 23, 2016, the Company entered into an Amended and Restated Credit Agreement (the "2016 Amended Credit Agreement") with JPMorgan Chase Bank as administrative agent, and a group of lenders. The 2016 Amended Credit Agreement amended and restated the Company’s credit agreement dated as of September 30, 2014 (the "2014 Agreement") to, among other things, extend the maturity date of its $115.0 million outstanding term loan ("Term Loan") and revolving credit facility (the "Revolver") by approximately two years to December 23, 2021. The Term Loan is payable in 19 quarterly installments of principal and interest beginning on April 2, 2017, with escalating principal payments, at the rate of 5% in year one, 7.5% in year two, 10% in year three, 12.5% in year four, and 15% in year five, with the remaining balance of $61.8 million due upon maturity. The Revolver, in the aggregate amount of $200 million, subject to seasonal reduction to an aggregate amount of $100 million for the period from January 1 through August 1, may be used for working capital and general corporate purposes, subject to certain restrictions. |
Note 8 - Debt - Summary of Curr
Note 8 - Debt - Summary of Current and Long-term Debt (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Jul. 02, 2017 | |
Deferred financing costs | $ (3,321) | $ (3,560) | |
Debt instrument, carrying amount | 107,367 | 108,565 | |
Less: current debt | 7,906 | 7,188 | |
Long-term debt | 99,461 | 101,377 | |
Line of Credit [Member] | |||
Revolver | [1] | ||
Term Loan [Member] | |||
Term Loan | [1] | $ 110,688 | $ 112,125 |
[1] | (1) On December 23, 2016, the Company entered into an Amended and Restated Credit Agreement (the "2016 Amended Credit Agreement") with JPMorgan Chase Bank as administrative agent, and a group of lenders. The 2016 Amended Credit Agreement amended and restated the Company’s credit agreement dated as of September 30, 2014 (the "2014 Agreement") to, among other things, extend the maturity date of its $115.0 million outstanding term loan ("Term Loan") and revolving credit facility (the "Revolver") by approximately two years to December 23, 2021. The Term Loan is payable in 19 quarterly installments of principal and interest beginning on April 2, 2017, with escalating principal payments, at the rate of 5% in year one, 7.5% in year two, 10% in year three, 12.5% in year four, and 15% in year five, with the remaining balance of $61.8 million due upon maturity. The Revolver, in the aggregate amount of $200 million, subject to seasonal reduction to an aggregate amount of $100 million for the period from January 1 through August 1, may be used for working capital and general corporate purposes, subject to certain restrictions. |
Note 9 - Property, Plant and 43
Note 9 - Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Jul. 02, 2017 |
Property, plant, and equipment, gross | $ 334,735 | $ 330,700 |
Accumulated depreciation and amortization | (177,262) | (169,319) |
Property, plant and equipment, net | 157,473 | 161,381 |
Land [Member] | ||
Property, plant, and equipment, gross | 30,789 | 30,789 |
Orchards in Production and Land Improvements [Member] | ||
Property, plant, and equipment, gross | 9,703 | 9,703 |
Building and Building Improvements [Member] | ||
Property, plant, and equipment, gross | 57,275 | 56,791 |
Leasehold Improvements [Member] | ||
Property, plant, and equipment, gross | 11,966 | 11,950 |
Furniture and Fixtures [Member] | ||
Property, plant, and equipment, gross | 47,763 | 47,293 |
Computer and Telecommunication Equipment [Member] | ||
Property, plant, and equipment, gross | 46,071 | 45,026 |
Software and Software Development Costs [Member] | ||
Property, plant, and equipment, gross | 120,990 | 119,177 |
Capital Projects in Progress [Member] | ||
Property, plant, and equipment, gross | $ 10,178 | $ 9,971 |
Note 10 - Fair Value Measurem44
Note 10 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Jul. 02, 2017 | |
Trading securities held in a “rabbi trust” | [1] | $ 8,241 | $ 6,916 |
Assets (liabilities) measured at fair value | 8,241 | 6,916 | |
Fair Value, Inputs, Level 1 [Member] | |||
Trading securities held in a “rabbi trust” | [1] | 8,241 | 6,916 |
Assets (liabilities) measured at fair value | 8,241 | 6,916 | |
Fair Value, Inputs, Level 2 [Member] | |||
Trading securities held in a “rabbi trust” | [1] | ||
Assets (liabilities) measured at fair value | |||
Fair Value, Inputs, Level 3 [Member] | |||
Trading securities held in a “rabbi trust” | [1] | ||
Assets (liabilities) measured at fair value | |||
[1] | The Company has established a Non-qualified Deferred Compensation Plan for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a "rabbi trust" which is restricted for payment to participants of the NQDC Plan. Trading securities held in a rabbi trust are measured using quoted market prices at the reporting date and are included in the "Other assets" line item, with the corresponding liability included in the "Other liabilities" line item in the consolidated balance sheets. |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2017 | Oct. 02, 2016 | |
Effective Income Tax Rate Reconciliation, Percent | 35.10% | 35.40% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% |
Unrecognized Tax Benefits | $ 400 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 0 |
Note 12 - Business Segments (De
Note 12 - Business Segments (Details Textual) | 3 Months Ended |
Oct. 01, 2017 | |
Number of Reportable Segments | 3 |
Note 12 - Business Segments - S
Note 12 - Business Segments - Segment Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 01, 2017 | Oct. 02, 2016 | ||
Net revenues | $ 157,349 | $ 165,829 | |
Contribution margin | 8,685 | 6,156 | |
Depreciation and amortization | (8,084) | (7,997) | |
Operating loss | (19,603) | (23,109) | |
Intersegment Eliminations [Member] | |||
Net revenues | (281) | (427) | |
Consumer Floral [Member] | |||
Net revenues | 76,610 | 75,215 | |
Contribution margin | 6,971 | 8,181 | |
BloomNet Wire Service [Member] | |||
Net revenues | 19,764 | 20,964 | |
Contribution margin | 6,701 | 7,279 | |
Gourmet Food and Gift Baskets [Member] | |||
Net revenues | 60,986 | 69,814 | |
Contribution margin | (4,987) | (9,304) | |
Corporate Segment [Member] | |||
Net revenues | 270 | 263 | |
Corporate | [1] | $ (20,204) | $ (21,268) |
[1] | 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. |