Reports Revenues of $822.1 million and Net
Income of $62.9 million, or $0.97 per share, which Includes a
Non-Cash Impairment Charge of $19.8 million
Adjusted Net Income (1) was $82.7 million, or
$1.27 per share
Gross Profit Margin Improves 230 basis points
to 43.3%, Marking the Fifth Consecutive Quarter of Year-Over-Year
Gross Profit Margin Expansion
Generates Adjusted EBITDA (1) of $130.1
million
Updates Fiscal 2024 Revenue Guidance
(1) Refer to “Definitions of Non-GAAP Financial Measures” and
the tables attached at the end of this press release for
reconciliation of non-GAAP results to applicable GAAP results.)
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of
gifts designed to help inspire customers to give more, connect
more, and build more and better relationships, today reported
results for its fiscal 2024 second quarter ended December 31,
2023.
Fiscal 2024 Second Quarter
Highlights
- Total consolidated revenues decreased 8.4% to $822.1 million,
compared with total consolidated revenues of $897.9 million in the
prior year period. E-commerce revenue declined 6.6% to $738.4
million.
- Gross profit margin increased 230 basis points to 43.3%,
compared with 41.0% in the prior year period. The gross profit
margin expansion was led by improvements across the Company’s three
business segments, which benefited from lower freight costs, lower
labor costs, a decline in certain commodity costs, as well as the
Company’s inventory optimization efforts.
- Operating expenses increased $11.8 million from the prior year
period, including a $19.8 million non-cash impairment charge in the
Consumer Floral and Gifts segment related to the Personalization
Mall trademark. Excluding the impact of this charge and the
appreciation or depreciation of investments in the Company’s
non-qualified compensation plan, operating expenses declined $10.8
million as compared with the prior year period to $242.0
million.
- Net income for the quarter was $62.9 million, or $0.97 per
diluted share, which includes a non-cash impairment charge of $19.8
million or $0.30 per diluted share. Adjusted Net Income1 was $82.7
million, or $1.27 per diluted share. In the prior year period, Net
income was $82.5 million, or $1.27 per diluted share.
- Adjusted EBITDA1 for the quarter was $130.1 million, as
compared with Adjusted EBITDA1 of $131.4 million in the prior year
period.
“Our second quarter earnings came in line with our expectations,
as our gross profit margin recovery and expense optimization
efforts helped offset a softer than anticipated consumer
environment,” said Jim McCann, Chairman and Chief Executive Officer
of 1-800-FLOWERS.COM, Inc. “This was our fifth consecutive quarter
of gross margin expansion, and we are well on our path to returning
to our historical mean annual gross margin rate in the low 40s
percent range. Our gross profit margin is benefiting from a
reversion to the mean of certain commodity costs combined with our
Work Smarter initiatives that are centered on operating more
efficiently and provide a benefit to both our gross profit margin
and operating expenses.”
“We are maintaining our full year Adjusted EBITDA estimate, as
our Work Smarter initiatives that are contributing to our gross
profit margin and operating margin are expected to continue to
mitigate a softer topline environment,” continued Mr. McCann. “Our
quarter-over-quarter sales trends continue to move in the right
direction and our Relationship Innovation and Work Smarter
initiatives are having a clear and direct impact on our business,
which we expect to only be further buoyed as the broader consumer
discretionary environment improves.”
Segment Results
The Company provides Fiscal 2024 second quarter selected
financial results for its Gourmet Foods and Gift Baskets, Consumer
Floral and Gifts, and BloomNet segments in the tables attached to
this release and as follows:
- Gourmet Foods and Gift Baskets: Revenues for the quarter
were $540.0 million, declining 8.2% compared with $588.4 million in
the prior year period. Gross profit margin expanded 220 basis
points to 43.2%, compared with 41.0% percent in the prior year
period, benefiting from lower freight costs, lower labor costs, a
decline in certain commodity costs, as well as the Company’s
inventory optimization efforts. Segment contribution margin1
declined by $5.4 million to $118.2 million, compared with segment
contribution margin1 of $123.5 million in the prior year period,
primarily due to the revenue decline.
- Consumer Floral & Gifts: Revenues for the quarter
were $254.8 million, declining 8.0% compared with $277.0 million in
the prior year period. Gross profit margin expanded 230 basis
points to 42.8%, compared with 40.5% percent in the prior year
period, improving on lower freight and labor costs. Segment
contribution margin1 excluding the impairment charge was $30.4
million, compared with segment contribution margin1 of $27.9
million in the prior year period.
- BloomNet: Revenues for the quarter were $27.2 million,
declining 17.1% compared with $32.9 million in the prior year
period. Revenue was impacted by the lower order volume processed by
BloomNet. Gross profit margin was 47.6%, compared with 42.2% in the
prior year period, primarily reflecting product mix and lower
freight costs. Segment contribution margin1 was $9.1 million,
compared with $9.3 million in the prior year period.
Company Guidance
The Company is updating its Fiscal 2024 guidance to reduce its
revenue outlook for the full year, while maintaining its Adjusted
EBITDA and Free Cash Flow expectations, as the improvement in gross
profit margin and the company’s expense optimization efforts are
expected to mitigate the softer than anticipated revenue
improvement.
As a result, the Company now expects Fiscal 2024:
- total revenues on a percentage basis to decline in a range of
7% to 9%, as compared with the prior year;
- Adjusted EBITDA1 to be in a range of $95 million to $100
million; and
- Free Cash Flow1 to be in a range of $60 million to $65
million.
Conference Call
The Company will conduct a conference call to discuss the above
details and attached financial results today, February 1, 2024, at
8:00 a.m. (ET). The conference call will be webcast from the
Investors section of the Company’s website at
www.1800flowersinc.com. A recording of the call will be posted on
the Investors section of the Company’s website within two hours of
the call’s completion. A telephonic replay of the call can be
accessed beginning at 2:00 p.m. (ET) today through February 8,
2024, at: (US) 1-877-344-7529; (Canada) 855-669-9658;
(International) 1-412-317-0088; enter conference ID #: 4402294.
Definitions of non-GAAP Financial
Measures:
We sometimes use financial measures derived from consolidated
financial information, but not presented in our financial
statements prepared in accordance with U.S. generally accepted
accounting principles (“GAAP”). Certain of these are considered
"non-GAAP financial measures" under the U.S. Securities and
Exchange Commission rules. Non-GAAP financial measures referred to
in this document are either labeled as “non-GAAP” or designated as
such with a “1”. See below for definitions and the reasons why we
use these non-GAAP financial measures. Where applicable, see the
Selected Financial Information below for reconciliations of these
non-GAAP measures to their most directly comparable GAAP financial
measures. Reconciliations for forward-looking figures would require
unreasonable efforts at this time because of the uncertainty and
variability of the nature and amount of certain components of
various necessary GAAP components, including, for example, those
related to compensation, tax items, amortization or others that may
arise during the year, and the Company’s management believes such
reconciliations would imply a degree of precision that would be
confusing or misleading to investors. For the same reasons, the
Company is unable to address the probable significance of the
unavailable information. The lack of such reconciling information
should be considered when assessing the impact of such
disclosures.
EBITDA and Adjusted EBITDA:
We define EBITDA as net income (loss) before interest, taxes,
depreciation, and amortization. Adjusted EBITDA is defined as
EBITDA adjusted for the impact of stock-based compensation,
Non-Qualified Plan Investment appreciation/depreciation, and for
certain items affecting period-to-period comparability. See
Selected Financial Information for details on how EBITDA and
Adjusted EBITDA were calculated for each period presented. The
Company presents EBITDA and Adjusted EBITDA because it considers
such information meaningful supplemental measures of its
performance and believes such information is frequently used by the
investment community in the evaluation of similarly situated
companies. The Company uses EBITDA and Adjusted EBITDA as factors
to determine the total amount of incentive compensation available
to be awarded to executive officers and other employees. The
Company's credit agreement uses EBITDA and Adjusted EBITDA to
determine its interest rate and to measure compliance with certain
covenants. EBITDA and Adjusted EBITDA are also used by the Company
to evaluate and price potential acquisition candidates. EBITDA and
Adjusted EBITDA have limitations as analytical tools and should not
be considered in isolation or as a substitute for analysis of the
Company's results as reported under GAAP. Some of the limitations
are: (a) EBITDA and Adjusted EBITDA do not reflect changes in, or
cash requirements for, the Company's working capital needs; (b)
EBITDA and Adjusted EBITDA do not reflect the significant interest
expense, or the cash requirements necessary to service interest or
principal payments, on the Company's debts; and (c) although
depreciation and amortization are non-cash charges, the assets
being depreciated and amortized may have to be replaced in the
future and EBITDA does not reflect any cash requirements for such
capital expenditures. EBITDA and Adjusted EBITDA should only be
used on a supplemental basis combined with GAAP results when
evaluating the Company's performance.
Segment Contribution Margin and Adjusted Segment Contribution
Margin
We define Segment Contribution Margin as earnings before
interest, taxes, depreciation, and amortization, before the
allocation of corporate overhead expenses. Adjusted Segment
Contribution Margin is defined as Segment Contribution Margin
adjusted for certain items affecting period-to-period
comparability. See Selected Financial Information for details on
how Segment Contribution Margin and Adjusted Segment Contribution
Margin were calculated for each period presented. When viewed
together with our GAAP results, we believe Segment Contribution
Margin and Adjusted Segment Contribution Margin provide management
and users of the financial statements meaningful information about
the performance of our business segments. Segment Contribution
Margin and Adjusted Segment Contribution Margin are used in
addition to and in conjunction with results presented in accordance
with GAAP and should not be relied upon to the exclusion of GAAP
financial measures. The material limitation associated with the use
of Segment Contribution Margin and Adjusted Segment Contribution
Margin is that they are an incomplete measure of profitability as
they do not include all operating expenses or non-operating income
and expenses. Management compensates for this limitation when using
these measures by looking at other GAAP measures, such as Operating
Income and Net Income.
Adjusted Net Income (Loss) and Adjusted or Comparable Net
Income (Loss) Per Common Share:
We define Adjusted Net Income (Loss) and Adjusted or Comparable
Net Income (Loss) Per Common Share as Net Income (Loss) and Net
Income (Loss) Per Common Share adjusted for certain items affecting
period-to-period comparability. See Selected Financial Information
below for details on how Adjusted Net Income (Loss) Per Common
Share and Adjusted or Comparable Net Income (Loss) Per Common Share
were calculated for each period presented. We believe that Adjusted
Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per
Common Share are meaningful measures because they increase the
comparability of period-to-period results. Since these are not
measures of performance calculated in accordance with GAAP, they
should not be considered in isolation of, or as a substitute for,
GAAP Net Income (Loss) and Net Income (Loss) Per Common share, as
indicators of operating performance and they may not be comparable
to similarly titled measures employed by other companies.
Free Cash Flow:
We define Free Cash Flow as net cash provided by operating
activities less capital expenditures. The Company considers Free
Cash Flow to be a liquidity measure that provides useful
information to management and investors about the amount of cash
generated by the business after the purchases of fixed assets,
which can then be used to, among other things, invest in the
Company’s business, make strategic acquisitions, strengthen the
balance sheet, and repurchase stock or retire debt. Free Cash Flow
is a liquidity measure that is frequently used by the investment
community in the evaluation of similarly situated companies. Since
Free Cash Flow is not a measure of performance calculated in
accordance with GAAP, it should not be considered in isolation or
as a substitute for analysis of the Company's results as reported
under GAAP. A limitation of the utility of Free Cash Flow as a
measure of financial performance is that it does not represent the
total increase or decrease in the Company's cash balance for the
period.
About 1-800-FLOWERS.COM,
Inc.
1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed
to help inspire customers to give more, connect more, and build
more and better relationships. The Company’s e-commerce business
platform features an all-star family of brands, including:
1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry
& David®, PersonalizationMall.com®, Shari’s Berries®,
FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn
Factory®, Wolferman’s Bakery®, Vital Choice®, and Simply
Chocolate®. Through the Celebrations Passport® loyalty program,
which provides members with free standard shipping and no service
charge across our portfolio of brands, 1-800-FLOWERS.COM, Inc.
strives to deepen relationships with customers. The Company also
operates BloomNet®, an international floral and gift industry
service provider offering a broad-range of products and services
designed to help members grow their businesses profitably; Napco℠,
a resource for floral gifts and seasonal décor; DesignPac Gifts,
LLC, a manufacturer of gift baskets and towers; and Alice’s Table®,
a lifestyle business offering fully digital floral, culinary and
other experiences to guests across the country. 1-800-FLOWERS.COM,
Inc. was recognized among the top 5 on the National Retail
Federation’s 2021 Hot 25 Retailers list, which ranks the nation’s
fastest-growing retail companies, and was named to the Fortune 1000
list in 2022. Shares in 1-800-FLOWERS.COM, Inc. are traded on the
NASDAQ Global Select Market, ticker symbol: FLWS. For more
information, visit 1800flowersinc.com or follow @1800FLOWERSInc on
Twitter.
FLWS–COMP FLWS-FN
Special Note Regarding Forward Looking
Statements:
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements represent the Company’s
current expectations or beliefs concerning future events and can
generally be identified using statements that include words such as
“estimate,” “expects,” “project,” “believe,” “anticipate,”
“intend,” “plan,” “foresee,” “forecast,” “likely,” “should,”
“will,” “target” or similar words or phrases. These forward-looking
statements are subject to risks, uncertainties, and other factors,
many of which are outside of the Company’s control, which could
cause actual results to differ materially from the results
expressed or implied in the forward-looking statements, including,
but not limited to, statements regarding the Company’s ability to
achieve its guidance for the full Fiscal year; the Company’s
ability to leverage its operating platform and reduce its operating
expense ratio; its ability to successfully integrate acquired
businesses and assets; its ability to successfully execute its
strategic initiatives; its ability to cost effectively acquire and
retain customers; the outcome of contingencies, including legal
proceedings in the normal course of business; its ability to
compete against existing and new competitors; its ability to manage
expenses associated with sales and marketing and necessary general
and administrative and technology investments; its ability to
reduce promotional activities and achieve more efficient marketing
programs; and general consumer sentiment and industry and economic
conditions that may affect levels of discretionary customer
purchases of the Company’s products. The Company undertakes no
obligation to publicly update any of the forward-looking
statements, whether because of new information, future events or
otherwise, made in this release or in any of its SEC filings.
Consequently, you should not consider any such list to be a
complete set of all potential risks and uncertainties. For a more
detailed description of these and other risk factors, refer to the
Company’s SEC filings, including the Company’s Annual Reports on
Form 10-K and its Quarterly Reports on Form 10-Q.
Note: The following tables are an integral part of this press
release without which the information presented in this press
release should be considered incomplete.
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
(in thousands)
December 31, 2023
July 2, 2023
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
312,017
$
126,807
Trade receivables, net
46,578
20,419
Inventories
161,324
191,334
Prepaid and other
24,557
34,583
Total current assets
544,476
373,143
Property, plant and equipment, net
227,643
234,569
Operating lease right-of-use assets
117,825
124,715
Goodwill
153,577
153,376
Other intangibles, net
117,897
139,888
Other assets
30,292
25,739
Total assets
$
1,191,710
$
1,051,430
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
92,418
$
52,588
Accrued expenses
224,084
141,914
Current maturities of long-term debt
10,000
10,000
Current portion of long-term operating
lease liabilities
15,433
15,759
Total current liabilities
341,935
220,261
Long-term debt, net
181,749
186,391
Long-term operating lease liabilities
110,740
117,330
Deferred tax liabilities, net
25,026
31,134
Other liabilities
28,900
24,471
Total liabilities
688,350
579,587
Total stockholders’ equity
503,360
471,843
Total liabilities and stockholders’
equity
$
1,191,710
$
1,051,430
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
Consolidated Statements of
Operations
(in thousands, except for per
share data)
(unaudited)
Three Months Ended
Six Months Ended
December 31, 2023
January 1, 2023
December 31, 2023
January 1, 2023
Net revenues:
E-Commerce
$
738,406
$
790,410
$
948,317
$
1,029,332
Other
83,648
107,467
142,787
172,149
Total net revenues
822,054
897,877
1,091,104
1,201,481
Cost of revenues
466,357
530,111
633,479
732,257
Gross profit
355,697
367,766
457,625
469,224
Operating expenses:
Marketing and sales
188,557
194,466
271,075
283,605
Technology and development
14,822
14,952
30,126
29,692
General and administrative
27,154
28,908
55,643
55,153
Depreciation and amortization
14,152
14,315
27,346
27,009
Intangible impairment
19,762
-
19,762
-
Total operating expenses
264,447
252,641
403,952
395,459
Operating income
91,250
115,125
53,673
73,765
Interest expense, net
4,611
4,143
8,093
6,964
Other (income) expense, net
(2,736
)
148
(2,262
)
1,070
Income before income taxes
89,375
110,834
47,842
65,731
Income tax expense
26,468
28,304
16,177
16,893
Net income
$
62,907
$
82,530
$
31,665
$
48,838
Basic net income per common share
$
0.97
$
1.28
$
0.49
$
0.76
Diluted net income per common share
$
0.97
$
1.27
$
0.49
$
0.75
Weighted average shares used in the
calculation of net income per common share:
Basic
64,835
64,675
64,814
64,606
Diluted
65,177
64,835
65,155
64,820
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Six Months Ended
December 31, 2023
January 1, 2023
Operating activities:
Net income
$
31,665
$
48,838
Adjustments to reconcile net income to net
cash provided by operating activities:
Intangible impairment
19,762
-
Depreciation and amortization
27,346
27,009
Amortization of deferred financing
costs
361
671
Deferred income taxes
(6,108
)
(846
)
Bad debt expense
225
2,407
Stock-based compensation
4,595
3,454
Other non-cash items
(385
)
(470
)
Changes in operating items:
Trade receivables
(26,384
)
(31,622
)
Inventories
29,808
46,506
Prepaid and other
6,640
7,550
Accounts payable and accrued expenses
125,404
89,050
Other assets and liabilities
(169
)
1,113
Net cash provided by operating
activities
212,760
193,660
Investing activities:
Capital expenditures
(17,807
)
(23,849
)
Net cash used in investing activities
(17,807
)
(23,849
)
Financing activities:
Acquisition of treasury stock
(4,787
)
(1,175
)
Proceeds from exercise of employee stock
options
44
-
Proceeds from bank borrowings
82,000
195,900
Repayment of bank borrowings
(87,000
)
(205,900
)
Debt issuance cost
-
(383
)
Net cash used in financing activities
(9,743
)
(11,558
)
Net change in cash and cash
equivalents
185,210
158,253
Cash and cash equivalents:
Beginning of period
126,807
31,465
End of period
$
312,017
$
189,718
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Three Months Ended
December 31, 2023
Intangible Impairment
As Adjusted (non- GAAP)
December 31, 2023
January 1, 2023
Things Remembered Transaction
Costs
As Adjusted (non- GAAP)
January 1, 2023
% Change
Net revenues:
Consumer Floral & Gifts
$
254,835
$
-
$
254,835
$
277,049
$
-
$
277,049
-8.0
%
BloomNet
27,236
27,236
32,852
32,852
-17.1
%
Gourmet Foods & Gift Baskets
539,963
539,963
588,431
588,431
-8.2
%
Corporate
279
279
72
72
287.5
%
Intercompany eliminations
(259
)
(259
)
(527
)
(527
)
50.9
%
Total net revenues
$
822,054
$
-
$
822,054
$
897,877
$
-
$
897,877
-8.4
%
Gross profit:
Consumer Floral & Gifts
$
109,176
$
109,176
$
112,274
$
112,274
-2.8
%
42.8
%
42.8
%
40.5
%
40.5
%
BloomNet
12,974
12,974
13,879
13,879
-6.5
%
47.6
%
47.6
%
42.2
%
42.2
%
Gourmet Foods & Gift Baskets
233,200
233,200
241,418
241,418
-3.4
%
43.2
%
43.2
%
41.0
%
41.0
%
Corporate
347
347
195
195
77.9
%
124.4
%
124.4
%
270.8
%
270.8
%
Total gross profit
$
355,697
$
-
$
355,697
$
367,766
$
-
$
367,766
-3.3
%
43.3
%
-
43.3
%
41.0
%
-
41.0
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
10,593
$
19,762
$
30,355
$
27,886
$
-
$
27,886
8.9
%
BloomNet
9,088
9,088
9,348
9,348
-2.8
%
Gourmet Foods & Gift Baskets
118,153
118,153
123,503
123,503
-4.3
%
Segment Contribution Margin Subtotal
137,834
19,762
157,596
160,737
-
160,737
-2.0
%
Corporate (b)
(32,432
)
(32,432
)
(31,297
)
243
(31,054
)
-4.4
%
EBITDA (non-GAAP)
105,402
19,762
125,164
129,440
243
129,683
-3.5
%
Add: Stock-based compensation
2,231
2,231
1,899
1,899
17.5
%
Add: Compensation charge related to NQ
Plan Investment Appreciation (Depreciation)
2,682
2,682
(196
)
(196
)
1468.4
%
Adjusted EBITDA (non-GAAP)
$
110,315
$
19,762
$
130,077
$
131,143
$
243
$
131,386
-1.0
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Six Months Ended
December 31, 2023
Intangible Impairment
As Adjusted (non- GAAP)
December 31, 2023
January 1, 2023
Things Remembered Transaction
Costs
As Adjusted (non- GAAP)
January 1, 2023
% Change
Net revenues:
Consumer Floral & Gifts
$
397,029
$
-
$
397,029
$
439,229
$
-
$
439,229
-9.6
%
BloomNet
56,106
56,106
66,219
66,219
-15.3
%
Gourmet Foods & Gift Baskets
638,072
638,072
696,659
696,659
-8.4
%
Corporate
549
549
116
116
373.3
%
Intercompany eliminations
(652
)
(652
)
(742
)
(742
)
12.1
%
Total net revenues
$
1,091,104
$
-
$
1,091,104
$
1,201,481
$
-
$
1,201,481
-9.2
%
Gross profit:
Consumer Floral & Gifts
$
165,498
$
-
$
165,498
$
174,193
$
-
$
174,193
-5.0
%
41.7
%
41.7
%
39.7
%
39.7
%
BloomNet
27,472
27,472
28,366
28,366
-3.2
%
49.0
%
49.0
%
42.8
%
42.8
%
Gourmet Foods & Gift Baskets
264,107
264,107
266,531
266,531
-0.9
%
41.4
%
41.4
%
38.3
%
38.3
%
Corporate
548
548
134
134
309.0
%
99.8
%
99.8
%
115.5
%
115.5
%
Total gross profit
$
457,625
$
-
$
457,625
$
469,224
$
-
$
469,224
-2.5
%
41.9
%
-
41.9
%
39.1
%
-
39.1
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
19,419
$
19,762
$
39,181
$
38,696
$
-
$
38,696
1.3
%
BloomNet
18,475
18,475
18,865
18,865
-2.1
%
Gourmet Foods & Gift Baskets
107,125
107,125
104,793
-
104,793
2.2
%
Segment Contribution Margin Subtotal
145,019
19,762
164,781
162,354
-
162,354
1.5
%
Corporate (b)
(64,000
)
(64,000
)
(61,580
)
243
(61,337
)
-4.3
%
EBITDA (non-GAAP)
81,019
19,762
100,781
100,774
243
101,017
-0.2
%
Add: Stock-based compensation
4,595
4,595
3,454
3,454
33.0
%
Add: Compensation charge related to NQ
Plan Investment Appreciation (Depreciation)
2,178
2,178
(1,102
)
(1,102
)
297.6
%
Adjusted EBITDA (non-GAAP)
$
87,792
$
19,762
$
107,554
$
103,126
$
243
$
103,369
4.0
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
Reconciliation of net income to
adjusted net income (non-GAAP):
Three Months Ended
Six Months Ended
December 31, 2023
January 1, 2023
December 31, 2023
January 1, 2023
Net income
$
62,907
$
82,530
$
31,665
$
48,838
Adjustments to reconcile net income to
adjusted net income (non-GAAP)
Add: Transaction costs
-
243
-
243
Add: Intangible impairment
19,762
-
19,762
-
Deduct: Income tax effect on
adjustments
-
(63
)
-
(63
)
Adjusted net income (non-GAAP)
$
82,669
$
82,710
$
51,427
$
49,018
Basic and diluted net income per common
share
Basic
$
0.97
$
1.28
$
0.49
$
0.76
Diluted
$
0.97
$
1.27
$
0.49
$
0.75
Basic and diluted adjusted net income
per common share (non-GAAP)
Basic
$
1.28
$
1.28
$
0.79
$
0.76
Diluted
$
1.27
$
1.28
$
0.79
$
0.76
Weighted average shares used in the
calculation of basic and diluted net income and adjusted net income
per common share
Basic
64,835
64,675
64,814
64,606
Diluted
65,177
64,835
65,155
64,820
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
Reconciliation of net income to
adjusted EBITDA (non-GAAP):
Three Months Ended
Six Months Ended
December 31, 2023
January 1, 2023
December 31, 2023
January 1, 2023
Net income
$
62,907
$
82,530
$
31,665
$
48,838
Add: Interest expense and other, net
1,875
4,291
5,831
8,034
Add: Depreciation and amortization
14,152
14,315
27,346
27,009
Add: Income tax expense
26,468
28,304
16,177
16,893
EBITDA
105,402
129,440
81,019
100,774
Add: Stock-based compensation
2,231
1,899
4,595
3,454
Add: Compensation charge related to NQ
Plan Investment Appreciation (Depreciation)
2,682
(196
)
2,178
(1,102
)
Add: Intangible Impairment
19,762
-
19,762
-
Add: Transaction costs
-
243
-
243
Adjusted EBITDA
$
130,077
$
131,386
$
107,554
$
103,369
(a) Segment performance is measured based
on segment contribution margin or segment Adjusted EBITDA,
reflecting only the direct controllable revenue and operating
expenses of the segments, both of which are non-GAAP measurements.
As such, management’s measure of profitability for these segments
does not include the effect of corporate overhead, described above,
depreciation and amortization, other income (net), and other items
that we do not consider indicative of our core operating
performance.
(b) Corporate expenses consist of the
Company’s enterprise shared service cost centers, and include,
among other items, Information Technology, Human Resources,
Accounting and Finance, Legal, Executive and Customer Service
Center functions, as well as Stock-Based Compensation. In order to
leverage the Company’s infrastructure, these functions are operated
under a centralized management platform, providing support services
throughout the organization. The costs of these functions, other
than those of the Customer Service Center, which are allocated
directly to the above categories based upon usage, are included
within corporate expenses as they are not directly allocable to a
specific segment.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240201472134/en/
Investor Contact: Andy Milevoj
(516) 237-4617 amilevoj@1800flowers.com
Media Contact: Cherie Gallarello
cgallarello@1800flowers.com
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