Exhibit 99.1
1-800-FLOWERS.COM(R) Reports Strong
Revenue and Earnings Growth for its Fiscal 2007 Fourth Quarter and
Full Year
Fiscal 2007 Fourth Quarter Highlights:
-- Net income for the quarter increased 545 percent to $6.6
million, or $0.10 per share compared with $1.0 million or
$0.02 per share in the prior year period. Pro forma net
income* was $7.4 million, or $0.11 per share, compared with
$2.0 million, or $0.03 per share, in the prior year period.
-- EBITDA* grew 138 percent to $17.1 million compared with $7.2
million in the prior year period. (* A reconciliation of
EBITDA - Earnings Before Interest, Taxes, Depreciation and
Amortization - and pro forma net income and EPS to net income
and net income per common share are included as part of the
attached tables.)
-- Gross Profit Margin increased 270 basis points to 42.7 percent
and Operating Expense Ratio(+) improved 130 basis points to
35.3 percent ((+) excluding depreciation and amortization).
-- Total revenues increased 9.8 percent, or $20.7 million, to
$231.8 million for the quarter.
Fiscal 2007 Full Year Highlights:
-- Net income for the full year increased 437 percent to $17.1
million, or $0.26 per diluted share, compared with $3.2
million, or $0.05 per share, in the prior year. Pro forma net
income* was $20.4 million, or $0.31 per share, compared with
$6.4 million, or $0.10 per share, in fiscal 2006.
-- EBITDA* for the full year grew 137.2 percent to $52.8 million
compared with $22.3 million in the prior year period,
reflecting the combination of strong revenue growth, increased
gross profit margin and enhanced operating expense leverage.
(* A reconciliation of EBITDA and pro forma net income and EPS
to net income and net income per common share are included as
part of the attached tables.)
-- Gross Profit Margin increased 130 basis points to 43 percent
and Operating Expense Ratio(+) improved 160 basis points to
37.2 percent. ((+) excluding depreciation and amortization).
-- Total revenues increased 16.7 percent, or $130.9 million, to
$912.6 million for the fiscal year.
CARLE PLACE, N.Y.--(BUSINESS WIRE)--Aug. 8,
2007--1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), the world's leading
florist and a provider of specialty gifts for all occasions, today
reported record revenues of $231.8 million for its fiscal fourth
quarter ended July 1, 2007. This represented an increase of 9.8
percent or $20.7 million, compared with revenues of $211.1 million in
the prior-year period. This growth was driven by the Company's key
business categories - Consumer Floral, BloomNet Wire Service and
Gourmet Food and Gift Baskets - which more than offset lower
year-over-year sales in its Home and Children's Gifts Category
reflecting management's decision to scale back marketing in this
category.
During the fiscal fourth quarter, the Company improved its gross
margin significantly, increasing 270 basis points to 42.7 percent
compared with 40 percent in last year's fiscal fourth quarter. The
Company attributed the improved gross margin to a combination of
factors, including product mix, enhanced sourcing and pricing
initiatives. Operating expense ratio (excluding depreciation and
amortization) for the quarter improved 130 basis points to 35.3
percent compared with 36.6 percent in the prior year period. This is
the result of the continued success of the Company's business process
improvement initiatives.
Combined with the strong revenue growth, these factors resulted in
EBITDA* for the quarter of $17.1 million, representing an improvement
of 138 percent or $9.9 million compared with $7.2 million in the prior
year period. Net income for the quarter increased 545.2 percent, or
$5.5 million, to $6.6 million, or $0.10 per share, compared with $1.0
million, or $0.02 per share, in the prior year period. Pro forma net
income* was $7.4 million, or $0.11 per share, compared with $2.0
million, or $0.03 per share, in the prior year period. (*A
reconciliation of EBITDA and pro forma net income and EPS to net
income and net income per common share is included as part of the
attached tables.)
Fiscal 2007 Full-Year Results
Total revenues for fiscal 2007 reached a record $912.6 million
representing growth of 16.7 percent or $130.9 million compared with
$781.7 million in fiscal 2006.
For the full fiscal year, the Company improved its gross margin
130 basis points to 43 percent compared with 41.7 percent in fiscal
2006. Operating expense ratio (excluding depreciation and
amortization) for the year improved 160 basis points to 37.2 percent
compared with 38.8 percent in the prior year. This reflects the
combination of strong revenue growth as well as the Company's focus on
leveraging its platform to enhance operating efficiencies across all
of its brands.
Combined with the strong revenue growth, these factors resulted in
EBITDA* growth for the year of 137.2 percent, or $30.6 million, to
$52.8 million compared with $22.3 million in the prior year. Net
income for the full year increased 437.1 percent, or $13.9 million, to
$17.1 million, or $0.26 per diluted share, compared with $3.2 million,
or $0.05 per share, in fiscal 2006. Pro forma net income* was $20.4
million, or $0.31 per share, compared with $6.4 million or $0.10 per
share, in fiscal 2006. (*A reconciliation of EBITDA and pro forma net
income and EPS to net income and net income per common share is
included as part of the attached tables.)
Jim McCann, CEO of 1-800-FLOWERS.COM, said, "We are very pleased
with our results for both the fourth quarter and the full year. In
particular, our strong growth in EBITDA and EPS illustrates our stated
commitment to achieving solid revenue growth while concurrently
improving gross profit margin and leveraging our platform to drive
operating efficiencies. Importantly, this was achieved despite the
weaker performance of our Home and Children's Gift category during the
year. In this area we have made a number of significant changes -
particularly in creative, marketing and merchandising - that are
beginning to provide positive results. As we've stated in the past, we
will continue to evaluate all of our strategic options for this
business."
McCann noted that the positive top and bottom line performance
trends in the Company's key business categories - Consumer Floral,
BloomNet Wire Service and Gourmet Food and Gift Baskets - all
continued during the fiscal fourth quarter. "In our Consumer Floral
business, our solid growth on the largest base of business in the
industry enables us to extend our market leadership position. We
believe this is the result of our focus on customer-centric marketing
and innovative merchandising programs as well as the strength of the
1-800-FLOWERS.COM brand which enables us to cost-effectively attract a
significant number of new customers while concurrently deepening our
relationship with our existing customer base."
Also during the fourth quarter, McCann noted that the Company's
BloomNet Wire Service continued to gain market share. "BloomNet has
begun to capture an increasing share of the order volume sent between
florists in addition to increasing penetration of our expanded suite
of products and services designed to help our florists grow their
businesses. These include our recently introduced Floral Selection
Guide, web hosting service and technology platform for store
management which are quickly gaining acceptance among our florists,"
said McCann. "In our Gourmet Food and Gift Baskets business, the
Fannie May Confections business, which we acquired more than a year
ago, produced strong results. Combined with our portfolio of great
food gift brands, including Cheryl & Co., The Popcorn Factory and
1-800-BASKETS.COM, this category is now on a run rate to exceed $200
million in revenues in our current fiscal year, making us a leading
player in this fast growing business. In this area, we anticipate
continued strong growth as well as further opportunities to add new
food gift brands through our targeted acquisition efforts," said
McCann.
In terms of its key customer metrics, the Company said more than
2.1 million e-commerce customers placed orders during the fiscal
fourth quarter of which 59.8 percent were repeat customers. During the
period, the Company cost effectively attracted more than 850,000 new
customers. For the full fiscal year, the Company said that more than
6.6 million e-commerce customers placed orders with repeat customers
representing 47.7 percent of the total. During the year, the Company
cost effectively attracted approximately 3.5 million new e-commerce
customers. "We believe these strong customer metrics illustrate our
ability to leverage our unique collection of assets across all of our
business categories and brands, including our database of more than 25
million customers, our floral-category brand leadership and our
extensive online and offline marketing programs," noted McCann.
CATEGORY RESULTS:
-- Consumer Floral: During the fiscal 2007 fourth quarter,
revenues in this category increased 7.2 percent, or $10.3
million, to $154 million. E-commerce revenues for the quarter
increased approximately 8 percent. For the full year, revenues
increased 8.7 percent, or $39.2 million, to $491.4 million.
E-commerce revenues for the year increased 9.4 percent. Gross
margin for the quarter increased 290 basis points to 40.2
percent. For the year, gross margin increased 160 basis points
to 39.3%. Reflecting improved operating leverage, Category
EBITDA improved 45.2 percent, or $7.7 million, during the
fourth quarter to $24.6 million. For the year, Category EBITDA
improved 38.8 percent, or $18.1 million, to $64.6 million. The
Company defines Category EBITDA as earnings before interest,
taxes, depreciation and amortization and before allocation of
corporate overhead expenses.
-- BloomNet Wire Service: Revenues for the quarter increased 55
percent, or $5.3 million, to $14.8 million. For the full year,
revenues increased 48.5 percent, or $14.5 million, to $44.4
million. Gross margin for the quarter increased 100 basis
points to 56.3 percent. For the year, gross profit margin
increased 250 basis points to 56 percent. Category EBITDA for
the quarter increased 102.1 percent to $5.4 million. For the
year, Category EBITDA grew 99.4 percent to $14.2 million.
-- Gourmet Food and Gift Baskets: Revenues for the fiscal fourth
quarter increased 31 percent, or $6.1 million, to $25.9
million. For the year, revenues increased 83.5 percent, or
$87.7 million, to $192.7 million. Gross margin increased 420
basis points to 44.7 percent for the quarter and 60 basis
points to 45.8 percent for the full year. Category EBITDA for
the quarter increased $1.5 million to $800,000. For the year,
Category EBITDA increased 286.4 percent to $26.4 million.
Results in this category reflect contributions from the Fannie
May Confections Brands business which was acquired in May
2006. Excluding the Fannie May pre-acquisition revenues, total
revenues in this category increased approximately 18 percent
for the year.
-- Home and Children's Gifts: Revenues for the quarter declined
3.3 percent or $1.3 million to $37.4 million. For the year,
revenues declined 5.1 percent or $10 million, to $186.9
million. Gross margin for the quarter increased 40 basis
points to 45.5 percent. Gross margin for the year declined 60
basis points to 45.9 percent. Category EBITDA for the quarter
was a loss of $100,000, essentially flat with the prior year
period. For the year, Category EBITDA declined 117 percent, or
$8.4 million, to a loss of $1.2 million.
COMPANY GUIDANCE:
-- For fiscal 2008, The Company anticipates continued strong
growth in its key business categories - Consumer Floral,
BloomNet Wire Service and Gourmet Food and Gift Baskets,
partially offset by anticipated flat growth in its Home and
Children's Category. As a result, the Company anticipates
organic revenue growth for the year in a range of 7-to-9
percent.
-- Through a combination of sourcing, product mix and ongoing
business process improvement initiatives, the Company
anticipates further margin and expense ratio improvements
during fiscal 2008. Combined with the anticipated revenue
growth, the Company expects this to result in EBITDA growth in
a range of 20-to-25 percent and EPS growth of 30-to-35 percent
for fiscal 2008 compared with fiscal 2007. Longer term, the
Company anticipates similar top and bottom-line growth rates.
-- In terms of seasonality for fiscal 2008, the Company
anticipates that its quarterly revenues will be in the
following ranges:
-- Q1 = 14-to-16 percent of total revenues
-- Q2 = 35-to-37 percent of total revenues
-- Q3 = 24-to-26 percent of total revenues (Note: the Easter
holiday will occur during the Company's fiscal 2008 third
quarter compared with Fiscal 2007 when the holiday
occurred during the Company's fourth quarter.)
-- Q4 = 24-to-26 percent of total revenues
Definitions:
Pro Forma net income and EPS: To supplement its consolidated
financial statements presented in accordance with GAAP, the Company
has presented pro forma net income and EPS. The Company defines pro
forma net income and EPS as net income and net income per common share
excluding stock-based compensation expense, net of the related tax
effect, as calculated under FAS No. 123R. The Company believes pro
forma net income and EPS provides a meaningful measure of year-to-year
period comparative performance; however, its use and corresponding per
share results do not lessen the importance of net income or net income
per common share.
EBITDA: Net income before interest, taxes, depreciation and
amortization. The Company presents EBITDA 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 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 (with
additional adjustments) to measure compliance with covenants such as
interest coverage and debt incurrence. EBITDA is also used by the
Company to evaluate and price potential acquisition candidates. EBITDA
has 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.
About 1-800-FLOWERS.COM(R)
For more than 30 years, 1-800-FLOWERS.COM Inc. - "Your Florist of
Choice(R)" - has been providing customers around the world with the
freshest flowers and finest selection of plants, gift baskets, gourmet
foods, confections and plush stuffed animals perfect for every
occasion. 1-800-FLOWERS.COM(R) offers the best of both worlds:
exquisite, florist-designed arrangements individually created by some
of the nation's top floral artists and hand-delivered the same day,
and spectacular flowers shipped overnight "Fresh From Our
Growers(sm)." Customers can "call, click or come in" to shop
1-800-FLOWERS.COM twenty four hours a day, 7 days a week at
1-800-356-9377 or www.1800flowers.com. Sales and Service Specialists
are available 24/7, and fast and reliable delivery is offered same
day, any day. As always, 100 percent satisfaction and freshness are
guaranteed. The 1-800-FLOWERS.COM collection of brands also includes
home decor and children's gifts from Plow & Hearth(R) (1-800-627-1712
or www.plowandhearth.com), Wind & Weather(R) (www.windandweather.com),
HearthSong(R) (www.hearthsong.com) and Magic Cabin(R)
(www.magiccabin.com); gourmet gifts including popcorn and specialty
treats from The Popcorn Factory(R) (1-800-541-2676 or
www.thepopcornfactory.com); exceptional cookies and baked gifts from
Cheryl&Co.(R) (1-800-443-8124 or www.cherylandco.com); premium
chocolates and confections from Fannie May Confections Brands(R)
(www.fanniemay.com and www.harrylondon.com); gourmet foods from
GreatFood.com(R) (www.greatfood.com); wine gifts from Ambrosia.com
(www.ambrosia.com); gift baskets from 1-800-BASKETS.COM(R)
(www.1800baskets.com) and the BloomNet(R) international floral wire
service, which provides quality products and diverse services to a
select network of florists. 1-800-FLOWERS.COM, Inc. stock is traded on
the NASDAQ market under ticker symbol FLWS.
Special Note Regarding Forward-Looking Statements:
The statements in this press release regarding the Company's
fiscal 2007 fourth quarter and full year results include comments
regarding current and future expectations that involve risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the applicable statements. These
risks and uncertainties include, but are not limited to: the Company's
ability to achieve its revenue and profitability growth guidance for
fiscal 2008; its ability to improve operating leverage and enhance its
profit margins; its ability to manage the increased seasonality of its
businesses; its ability to cost effectively acquire and retain
customers; its ability to implement changes and improve the
performance of its Home and Children's Group; 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 cost
efficiently manage inventories; and general consumer sentiment and
economic conditions that may affect levels of discretionary customer
purchases of the Company's products. For a more detailed description
of these and other risk factors, please refer to the Company's SEC
filings including the Company's Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. The Company expressly disclaims any
intent or obligation to update any of the forward looking statements
made in this release or in any of its SEC filings except as may be
otherwise stated by the Company.
Conference Call:
The Company will conduct a conference call to discuss the attached
financial results today, Wednesday, August 8, 2007 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.
An indexed recording of the call will be posted on the Investor
Relations section of the Company's web site within 2 hours of the
call's completion. A replay of the call can be accessed via telephone
beginning at 2:00 p.m. (EDT) on 8/8/07 through 11:59 p.m. on 8/9/07
at: 1-888-203-1112 (domestic) or 1-719-457-0820 (international). Enter
pass code #3122004.
(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)
July 1, July 2,
2007 2006
----------- --------
(unaudited)
Assets
Current assets:
Cash and equivalents $16,087 $24,599
Receivables, net 17,010 13,153
Inventories 62,051 52,954
Deferred income taxes 19,260 17,427
Prepaid and other 9,576 10,347
----------- --------
Total current assets 123,984 118,480
Property, plant and equipment, net 62,561 59,732
Goodwill 112,131 131,141
Other intangibles, net 52,750 29,822
Deferred income taxes - 6,224
Other assets 1,081 1,235
----------- --------
Total assets $352,507 $346,634
=========== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $62,433 $63,870
Current maturities of long-term debt and
obligations under capital leases 10,132 10,360
----------- --------
Total current liabilities 72,565 74,230
Long-term debt and obligations under capital
leases 68,000 78,063
Deferred income taxes 8,230 -
Other liabilities 2,681 1,158
----------- --------
Total liabilities 151,476 153,451
Total stockholders' equity 201,031 193,183
----------- --------
Total liabilities and stockholders' equity $352,507 $346,634
=========== ========
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Consolidated Statements of Income (Unaudited)
(In thousands, except for per share data)
Three Months Ended Year Ended
------------------ -----------------
July 1, July 2, July 1, July 2,
2007 2006 2007 2006
--------- -------- -------- --------
Net revenues:
E-commerce (combined online
and telephonic) $194,228 $185,042 $749,238 $706,001
Other 37,593 26,088 163,360 75,740
--------- -------- -------- --------
Total net revenues 231,821 211,130 912,598 781,741
Cost of revenues 132,833 126,778 520,132 456,097
--------- -------- -------- --------
Gross profit 98,988 84,352 392,466 325,644
Operating expenses:
Marketing and sales 61,873 60,287 262,303 239,573
Technology and development 5,485 5,083 21,316 19,819
General and administrative 14,545 11,804 56,017 43,978
Depreciation and amortization 4,812 4,555 17,837 15,765
--------- -------- -------- --------
Total operating expenses 86,715 81,729 357,473 319,135
--------- -------- -------- --------
Operating income 12,273 2,623 34,993 6,509
Other income (expense):
Interest income 587 430 1,381 1,260
Interest expense (1,586) (1,114) (7,390) (1,407)
Other 20 6 25 6
--------- -------- -------- --------
Total other income (expense), net (979) (678) (5,984) (141)
--------- -------- -------- --------
Income before income taxes 11,294 1,945 29,009 6,368
Income tax expense 4,732 928 11,891 3,181
--------- -------- -------- --------
Net income $6,562 $1,017 $17,118 $3,187
========= ======== ======== ========
Net income per common share
Basic $0.10 $0.02 $0.27 $0.05
========= ======== ======== ========
Diluted $0.10 $0.02 $0.26 $0.05
========= ======== ======== ========
Weighted average shares used in
the calculation of net income
per common share:
Basic 62,502 65,145 63,786 65,100
========= ======== ======== ========
Diluted 64,925 66,535 65,526 66,429
========= ======== ======== ========
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Year Ended
-------------------
July 1, July 2,
2007 2006
--------- ---------
Operating activities
Net income $17,118 $3,187
Reconciliation of net income to net cash provided
by operations:
Depreciation and amortization 17,837 15,765
Deferred income taxes 10,325 2,175
Bad debt expense 1,880 476
Stock based compensation 4,600 4,336
Other non-cash items (791) 125
Changes in operating items:
Receivables (5,737) 1,316
Inventories (9,800) (9,106)
Prepaid and other 771 685
Accounts payable and accrued expenses (5,562) (2,262)
Other assets 177 (1,380)
Other liabilities 1,523 (579)
--------- ---------
Net cash provided by operating activities 32,341 14,738
Investing activities
Acquisitions, net of cash acquired (347) (96,874)
Dispositions 1,463 -
Capital expenditures (18,043) (20,491)
Proceeds from sale of investments - 6,647
Other 242 2
--------- ---------
Net cash used in investing activities (16,685) (110,716)
Financing activities
Acquisition of treasury stock (15,873) (1,324)
Proceeds from employee stock options 2,003 558
Proceeds from bank borrowings and revolving line
of credit 110,000 105,000
Repayment of notes payable and bank borrowings (119,913) (22,482)
Repayment of capital lease obligations (385) (1,228)
Other - 92
--------- ---------
Net cash (used in) provided by financing
activities (24,168) 80,616
--------- ---------
Net change in cash and equivalents (8,512) (15,362)
Cash and equivalents:
Beginning of period 24,599 39,961
--------- ---------
End of period $16,087 $24,599
========= =========
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Category Information
(in thousands)
(unaudited)
Three Months Ended
-----------------------------
July 1, July 2,
2007 2006 % Change
--------- --------- ---------
Net revenues:
1-800-Flowers.com Consumer Floral $153,953 $143,604 7.2%
BloomNet Wire Service 14,830 9,566 55.0%
Gourmet Food & Gift Baskets 25,935 19,796 31.0%
Home & Children's Gifts 37,429 38,709 (3.3%)
Corporate (*) 473 356 32.9%
Intercompany eliminations (799) (901) 11.3%
--------- ---------
Total net revenues $231,821 $211,130 9.8%
========= =========
Three Months Ended
-----------------------------
July 1, July 2,
2007 2006 % Change
--------- --------- ---------
Gross profit:
1-800-Flowers.com Consumer Floral $61,908 53,543 15.6%
40.2% 37.3%
BloomNet Wire Service 8,355 5,291 57.9%
56.3% 55.3%
Gourmet Food & Gift Baskets 11,585 8,023 44.4%
44.7% 40.5%
Home & Children's Gifts 17,037 17,473 (2.5%)
45.5% 45.1%
Corporate (*) 133 81 64.2%
28.1% 22.8%
Intercompany eliminations (30) (59)
--------- ---------
Total gross profit $98,988 $84,352 17.4%
========= =========
42.7% 40.0%
========= =========
Three Months Ended
-----------------------------
July 1, July 2,
2007 2006 % Change
--------- --------- ---------
Category Contribution Margin:
1-800-Flowers.com Consumer Floral $24,607 $16,950 45.2%
BloomNet Wire Service 5,369 2,657 102.1%
Gourmet Food & Gift Baskets 793 (734) 208.0%
Home & Children's Gifts (111) (163) 31.9%
--------- ---------
Category Contribution Margin Subtotal 30,658 18,710 63.9%
Corporate (*) (13,573) (11,532) (17.7%)
--------- ---------
EBITDA $17,085 $7,178 138.0%
========= =========
Year Ended
----------------------------
July 1, July 2,
2007 2006 % Change
--------- --------- --------
Net revenues:
1-800-Flowers.com Consumer Floral $491,404 $452,188 8.7%
BloomNet Wire Service 44,379 29,884 48.5%
Gourmet Food & Gift Baskets 192,698 105,002 83.5%
Home & Children's Gifts 186,948 196,919 (5.1%)
Corporate (*) 1,652 1,388 19.0%
Intercompany eliminations (4,483) (3,640) (23.2%)
--------- ---------
Total net revenues $912,598 $781,741 16.7%
========= =========
Year Ended
----------------------------
July 1, July 2,
2007 2006 % Change
--------- --------- --------
Gross profit:
1-800-Flowers.com Consumer Floral $192,921 $170,352 13.2%
39.3% 37.7%
BloomNet Wire Service 24,844 15,989 55.4%
56.0% 53.5%
Gourmet Food & Gift Baskets 88,207 47,442 85.9%
45.8% 45.2%
Home & Children's Gifts 85,899 91,555 (6.2%)
45.9% 46.5%
Corporate (*) 764 551 38.7%
46.2% 39.7%
Intercompany eliminations (169) (245)
--------- ---------
Total gross profit $392,466 $325,644 20.5%
========= =========
43.0% 41.7%
========= =========
Year Ended
----------------------------
April 1, April 2,
2007 2006 % Change
--------- --------- --------
Category Contribution Margin:
1-800-Flowers.com Consumer Floral $64,580 $46,518 38.8%
BloomNet Wire Service 14,169 7,106 99.4%
Gourmet Food & Gift Baskets 26,377 6,827 286.4%
Home & Children's Gifts (1,215) 7,134 (117.0%)
--------- ---------
Category Contribution Margin Subtotal 103,911 67,585 53.7%
Corporate (*) (51,081) (45,311) (12.7%)
--------- ---------
EBITDA $52,830 $22,274 137.2%
========= =========
(*) 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 category.
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Appendix A - Reconciliations of Historical Information
(In thousands)
(unaudited)
Reconciliation of Net Income to EBITDA:
Three Months Ended Year Ended
------------------ ---------------
July 1, July 2, July 1, July 2,
2007 2006 2007 2006
--------- -------- ------- -------
Net income $6,562 $1,017 $17,118 $3,187
Add:
Interest expense 1,586 1,114 7,390 1,407
Depreciation and amortization 4,812 4,555 17,837 15,765
Income tax expense 4,732 928 11,891 3,181
Less:
Interest income 587 430 1,381 1,260
Other income (expense) 20 6 25 6
--------- -------- ------- -------
EBITDA $17,085 $7,178 $52,830 $22,274
========= ======== ======= =======
Reconciliation of Net Income and Net Income Per Common Share to Pro
Forma Net Income and Net Income Per Common Share:
Three Months Ended Year Ended
------------------ ---------------
July 1, July 2, July 1, July 2,
2007 2006 2007 2006
--------- -------- ------- -------
Net income $6,562 $1,017 $17,118 $3,187
Add: Stock-based compensation
expense, net of tax 872 951 3,247 3,216
--------- -------- ------- -------
Income before stock-based
compensation expense $7,434 $1,968 $20,365 $6,403
========= ======== ======= =======
Net income per common share
Basic $0.10 $0.02 $0.27 $0.05
Diluted $0.10 $0.02 $0.26 $0.05
Add: Stock-based compensation
expense, per basic and diluted
common share $0.01 $0.01 $0.05 $0.05
--------- -------- ------- -------
Net income per common share before
stock-based compensation expense
Basic $0.11 $0.03 $0.32 $0.10
========= ======== ======= =======
Diluted $0.11 $0.03 $0.31 $0.10
========= ======== ======= =======
CONTACT: 1-800-FLOWERS.COM Inc.
Investor
Joseph D. Pititto, 516-237-6131
invest@1800flowers.com
or
Media
Steven Jarmon, 516-237-4675
sjarmon@1800flowers.com