Reports Revenues of $379.4 million and Net Loss
of $16.9 million, or $0.26 per share; Adjusted Net Loss1 was $18.0
million, or $0.28 per share
Gross Profit Margin Improved 300 basis points
to 36.6%
Adjusted EBITDA1 Loss was $5.7 million, as
Compared with $5.5 million in the Prior Year Period
(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 third quarter ended March 31, 2024.
Fiscal 2024 Third Quarter
Highlights
- Total consolidated revenues decreased 9.1% to $379.4 million,
compared with total consolidated revenues of $417.6 million in the
prior year period. Quarter-over-quarter e-commerce revenue trends
continued to improve, declining 4.9% as compared with a 6.6%
decline in the prior quarter.
- Gross profit margin increased 300 basis points to 36.6%,
compared with 33.6% in the prior year period. The gross profit
margin benefited from lower freight costs, improved commodity
costs, and the Company’s logistics optimization efforts.
- As part of the Company’s Work Smarter initiative to operate
more efficiently and in response to the current business
environment, the Company initiated a reduction of its full-time
workforce. This is expected to yield cost savings of more than
$10.0 million on an annualized basis. In conjunction with this
action, the Company incurred $2.4 million of severance and related
charges during the third quarter.
- Operating expenses were 43.9% of sales, which includes the
severance and related charges, as compared with 53.9% in the prior
year period, which included a goodwill and intangible assets
impairment charge. Operating expenses, excluding the impact of the
severance and related charges, the appreciation or depreciation of
investments in the Company’s non-qualified compensation plan, and
the impairment charge recorded in the prior year period, were 42.4%
of sales, as compared with 38.8% in the prior year period,
declining $1.2 million as compared with the prior year period to
$160.7 million.
- Net loss for the quarter was $16.9 million, or $0.26 per share,
which includes severance and related charges of $2.4 million or
$0.02 per share, as well as a tax benefit of $0.04 per share
related to the fiscal second quarter trademark impairment charge.
In the prior year period, Net Loss was $71.0 million, or $1.10 per
share, which included an after-tax, non-cash goodwill and
intangible asset impairment charge of $53.1 million.
- Adjusted Net Loss1 was $18.0 million, or $0.28 per share,
compared with an Adjusted Net Loss of $17.8 million, or $0.27 per
share, in the prior year period.
- Adjusted EBITDA1 loss for the quarter was $5.7 million, as
compared with an Adjusted EBITDA1 loss of $5.5 million in the prior
year period.
- 1-800-Flowers.com, Inc. was recognized amongst America's Most
Trustworthy Companies by Newsweek for the year 2024.
- Acquired Card Isle, an e-commerce greeting card company,
expanding the Company’s presence in the greeting card category, and
enhancing the gifting experience across its family of brands. The
acquisition occurred after the third quarter ended.
“As we continue on our reversion to the mean path, our gross
margin continued its significant recovery, improving 300 basis
points during the third quarter,” said Jim McCann, Chairman and
Chief Executive Officer of 1-800-FLOWERS.COM, Inc. “However, our
topline results remain pressured by a complex consumer environment.
In response, we amplified our Work Smarter efforts and reduced our
workforce during the fiscal third quarter. While these decisions
are always difficult, these changes were made with a focus on
appropriately allocating resources to the growth opportunities
within our business.”
Mr. McCann added, “We believe it’s important to put our current
results in their proper context. We are a bigger, better, stronger
company today than we were just a few short years ago. Reversions
to the mean rarely occur in a linear fashion and this does not
change our long-term view in which we expect our revenue to return
to its historical growth rate over time. Most importantly, we
continue to execute on our strategic initiatives to enhance and
expand the offerings on our platform to be the gifting destination
of choice for thoughtful and expressive gift-giving occasions.”
Segment Results
The Company provides Fiscal 2024 third 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 $131.0 million, declining 11.4% compared with $147.9 million
in the prior year period, with e-commerce revenue declining 4.5% in
the current year period. Gross profit margin expanded 530 basis
points to 29.9%, compared with 24.6% percent in the prior year
period, benefiting from lower freight costs, the Company’s
inventory and labor optimization efforts, as well as a decline in
certain commodity costs. Excluding the impact of the severance
charge in the current period and the impairment charge in the year
ago period, the segment contribution margin1 loss improved by $6.3
million to $7.6 million, compared with a segment contribution
margin1 loss of $13.9 million in the prior year period.
- Consumer Floral & Gifts: Revenues for the quarter
were $221.2 million, declining 5.1% compared with $233.0 million in
the prior year period. Gross profit margin expanded 140 basis
points to 39.3%, compared with 37.9% percent in the prior year
period, improving on lower fulfillment costs and the Company’s
logistics optimization efforts. Excluding the impact of the
severance charge in the current period, segment contribution
margin1 was $22.8 million, compared with segment contribution
margin1 of $26.1 million in the prior year period.
- BloomNet: Revenues for the quarter were $27.3 million,
declining 26.1% compared with $37.0 million in the prior year
period. Revenue was impacted by the lower volume of lower margin
orders processed by BloomNet. Gross profit margin was 45.4%,
compared with 42.5% in the prior year period, primarily reflecting
higher margin product mix and lower freight costs. As a result,
excluding the impact of the severance charge in the current period,
segment contribution margin1 was $7.6 million, compared with $11.0
million in the prior year period.
Company Guidance
The Company is reiterating its Fiscal 2024 guidance,
including:
- 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, May 2, 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 May 9, 2024, at: (US) 1-877-344-7529;
(Canada) 855-669-9658; (International) 1-412-317-0088; enter
conference ID #: 4365463.
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 on eligible products 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 livestreaming and on demand floral, culinary
and other experiences to guests across the country.
1-800-FLOWERS.COM, Inc. was recognized among America’s Most
Trustworthy Companies by Newsweek. 1-800-FLOWERS.COM, Inc. was also
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)
March 31, 2024
July 2, 2023
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
183,956
$
126,807
Trade receivables, net
26,779
20,419
Inventories
159,458
191,334
Prepaid and other
26,437
34,583
Total current assets
396,630
373,143
Property, plant and equipment, net
223,939
234,569
Operating lease right-of-use assets
114,784
124,715
Goodwill
153,577
153,376
Other intangibles, net
116,783
139,888
Other assets
34,269
25,739
Total assets
$
1,039,982
$
1,051,430
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
47,015
$
52,588
Accrued expenses
138,004
141,914
Current maturities of long-term debt
10,000
10,000
Current portion of long-term operating
lease liabilities
15,250
15,759
Total current liabilities
210,269
220,261
Long-term debt, net
179,432
186,391
Long-term operating lease liabilities
107,918
117,330
Deferred tax liabilities, net
22,599
31,134
Other liabilities
34,438
24,471
Total liabilities
554,656
579,587
Total stockholders’ equity
485,326
471,843
Total liabilities and stockholders’
equity
$
1,039,982
$
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
Nine Months Ended
March 31,
2024
April 2,
2023
March 31,
2024
April 2,
2023
Net revenues:
E-Commerce
$
340,241
$
357,801
$
1,288,558
$
1,387,133
Other
39,164
59,765
181,951
231,914
Total net revenues
379,405
417,566
1,470,509
1,619,047
Cost of revenues
240,688
277,126
874,167
1,009,383
Gross profit
138,717
140,440
596,342
609,664
Operating expenses:
Marketing and sales
105,828
106,472
376,903
390,077
Technology and development
15,291
14,837
45,417
44,529
General and administrative
32,295
25,922
87,938
81,075
Depreciation and amortization
13,232
13,267
40,578
40,276
Goodwill and intangible impairment
-
64,586
19,762
64,586
Total operating expenses
166,646
225,084
570,598
620,543
Operating income (loss)
(27,929
)
(84,644
)
25,744
(10,879
)
Interest expense, net
881
1,712
8,974
8,676
Other (income) expense, net
(3,574
)
1,404
(5,836
)
2,474
Income (loss) before income taxes
(25,236
)
(87,760
)
22,606
(22,029
)
Income tax (benefit) expense
(8,333
)
(16,767
)
7,844
126
Net income (loss)
$
(16,903
)
$
(70,993
)
$
14,762
$
(22,155
)
Basic net income (loss) per common
share
$
(0.26
)
$
(1.10
)
$
0.23
$
(0.34
)
Diluted net income (loss) per common
share
$
(0.26
)
$
(1.10
)
$
0.23
$
(0.34
)
Weighted average shares used in the
calculation of net income (loss) per common share:
Basic
64,489
64,767
64,703
64,660
Diluted
64,489
64,767
65,057
64,660
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
March 31, 2024
April 2, 2023
Operating activities:
Net income (loss)
$
14,762
$
(22,155
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Goodwill and intangible impairment
19,762
64,586
Depreciation and amortization
40,578
40,276
Amortization of deferred financing
costs
541
998
Deferred income taxes
(8,535
)
(4,390
)
Bad debt expense
418
2,997
Stock-based compensation
7,641
5,941
Other non-cash items
(122
)
(245
)
Changes in operating items:
Trade receivables
(6,778
)
(15,977
)
Inventories
31,674
57,031
Prepaid and other
4,761
2,706
Accounts payable and accrued expenses
(6,077
)
(59,806
)
Other assets and liabilities
1,426
1,102
Net cash provided by operating
activities
100,051
73,064
Investing activities:
Acquisitions, net of cash acquired
-
(5,000
)
Capital expenditures
(26,482
)
(31,351
)
Net cash used in investing activities
(26,482
)
(36,351
)
Financing activities:
Acquisition of treasury stock
(9,178
)
(1,197
)
Proceeds from exercise of employee stock
options
258
-
Proceeds from bank borrowings
82,000
195,900
Repayment of bank borrowings
(89,500
)
(210,900
)
Debt issuance cost
-
(383
)
Net cash used in financing activities
(16,420
)
(16,580
)
Net change in cash and cash
equivalents
57,149
20,133
Cash and cash equivalents:
Beginning of period
126,807
31,465
End of period
$
183,956
$
51,598
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Three Months Ended
March 31, 2024
Restructuring
cost/Severance
As Adjusted (non-GAAP) March
31, 2024
April 2, 2023
Goodwill and Intangible
Impairment
Things Remembered Transaction
Costs
As Adjusted (non-GAAP) April
2, 2023
% Change
Net revenues:
Consumer Floral & Gifts
$
221,207
$
-
$
221,207
$
233,019
$
-
$
-
$
233,019
-5.1
%
BloomNet
27,314
27,314
36,968
36,968
-26.1
%
Gourmet Foods & Gift Baskets
130,989
130,989
147,863
147,863
-11.4
%
Corporate
167
167
36
36
363.9
%
Intercompany eliminations
(272
)
(272
)
(320
)
(320
)
15.0
%
Total net revenues
$
379,405
$
-
$
379,405
$
417,566
$
-
$
-
$
417,566
-9.1
%
Gross profit:
Consumer Floral & Gifts
$
87,005
$
87,005
$
88,317
$
88,317
-1.5
%
39.3
%
39.3
%
37.9
%
37.9
%
BloomNet
12,411
12,411
15,720
15,720
-21.0
%
45.4
%
45.4
%
42.5
%
42.5
%
Gourmet Foods & Gift Baskets
39,169
39,169
36,371
36,371
7.7
%
29.9
%
29.9
%
24.6
%
24.6
%
Corporate
132
132
32
32
312.5
%
79.0
%
79.0
%
88.9
%
88.9
%
Total gross profit
$
138,717
$
-
$
138,717
$
140,440
$
-
$
-
$
140,440
-1.2
%
36.6
%
-
36.6
%
33.6
%
-
-
33.6
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
22,190
$
630
$
22,820
$
26,136
$
-
$
-
$
26,136
-12.7
%
BloomNet
7,506
69
7,575
10,982
10,982
-31.0
%
Gourmet Foods & Gift Baskets
(8,172
)
538
(7,634
)
(78,480
)
64,586
(13,894
)
45.1
%
Segment Contribution Margin Subtotal
21,524
1,237
22,761
(41,362
)
64,586
-
23,224
-2.0
%
Corporate (b)
(36,221
)
1,180
(35,041
)
(30,015
)
201
(29,814
)
-17.5
%
EBITDA (non-GAAP)
(14,697
)
2,417
(12,280
)
(71,377
)
64,586
201
(6,590
)
-86.3
%
Add: Stock-based compensation
3,046
3,046
2,487
2,487
22.5
%
Add: Compensation charge related to NQDC
Plan Investment Appreciation (Depreciation)
3,534
3,534
(1,446
)
(1,446
)
344.4
%
Adjusted EBITDA (non-GAAP)
$
(8,117
)
$
2,417
$
(5,700
)
$
(70,336
)
$
64,586
$
201
$
(5,549
)
-2.7
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Nine Months Ended
March 31, 2024
Intangible Impairment
Restructuring
cost/Severance
As Adjusted (non-GAAP) March
31, 2024
April 2, 2023
Goodwill and Intangible
Impairment
Things Remembered Transaction
Costs
As Adjusted (non-GAAP) April
2, 2023
% Change
Net revenues:
Consumer Floral & Gifts
$
618,236
$
-
$
-
$
618,236
$
672,248
$
-
$
-
$
672,248
-8.0
%
BloomNet
83,420
83,420
103,187
103,187
-19.2
%
Gourmet Foods & Gift Baskets
769,061
769,061
844,522
844,522
-8.9
%
Corporate
716
716
152
152
371.1
%
Intercompany eliminations
(924
)
(924
)
(1,062
)
(1,062
)
13.0
%
Total net revenues
$
1,470,509
$
-
$
-
$
1,470,509
$
1,619,047
$
-
$
-
$
1,619,047
-9.2
%
Gross profit:
Consumer Floral & Gifts
$
252,503
$
-
$
-
$
252,503
$
262,510
$
-
$
-
$
262,510
-3.8
%
40.8
%
40.8
%
39.0
%
39.0
%
BloomNet
39,883
39,883
44,086
44,086
-9.5
%
47.8
%
47.8
%
42.7
%
42.7
%
Gourmet Foods & Gift Baskets
303,276
303,276
302,902
302,902
0.1
%
39.4
%
39.4
%
35.9
%
35.9
%
Corporate
680
680
166
166
309.6
%
95.0
%
95.0
%
109.2
%
109.2
%
Total gross profit
$
596,342
$
-
$
-
$
596,342
$
609,664
$
-
$
-
$
609,664
-2.2
%
40.6
%
-
-
40.6
%
37.7
%
-
-
37.7
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
41,609
$
19,762
$
630
$
62,001
$
64,832
$
-
$
-
$
64,832
-4.4
%
BloomNet
25,981
69
26,050
29,847
29,847
-12.7
%
Gourmet Foods & Gift Baskets
98,953
538
99,491
26,313
64,586
-
90,899
9.5
%
Segment Contribution Margin Subtotal
166,543
19,762
1,237
187,542
120,992
64,586
-
185,578
1.1
%
Corporate (b)
(100,221
)
1,180
(99,041
)
(91,595
)
444
(91,151
)
-8.7
%
EBITDA (non-GAAP)
66,322
19,762
2,417
88,501
29,397
64,586
444
94,427
-6.3
%
Add: Stock-based compensation
7,641
7,641
5,941
5,941
28.6
%
Add: Compensation charge related to NQDC
Plan Investment Appreciation (Depreciation)
5,712
5,712
(2,548
)
(2,548
)
324.2
%
Adjusted EBITDA (non-GAAP)
$
79,675
$
19,762
$
2,417
$
101,854
$
32,790
$
64,586
$
444
$
97,820
4.1
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
Reconciliation of net income (loss) to
adjusted net income (loss) (non-GAAP):
Three Months Ended
Nine Months Ended
March 31, 2024
April 2, 2023
March 31, 2024
April 2, 2023
Net income (loss)
$
(16,903
)
$
(70,993
)
$
14,762
$
(22,155
)
Adjustments to reconcile net income (loss)
to adjusted net income (loss) (non-GAAP)
Add: Transaction costs
-
201
-
444
Add: Restructuring cost/Severance
2,417
-
2,417
-
Add: Goodwill and intangible
impairment
-
64,586
19,762
64,586
Deduct: Income tax effect on
adjustments
(3,538
)
(11,546
)
(3,538
)
(11,609
)
Adjusted net income (loss)
(non-GAAP)
$
(18,024
)
$
(17,752
)
$
33,403
$
31,266
Basic and diluted net income (loss) per
common share
Basic
$
(0.26
)
$
(1.10
)
$
0.23
$
(0.34
)
Diluted
$
(0.26
)
$
(1.10
)
$
0.23
$
(0.34
)
Basic and diluted adjusted net income
(loss) per common share (non-GAAP)
Basic
$
(0.28
)
$
(0.27
)
$
0.52
$
0.48
Diluted
$
(0.28
)
$
(0.27
)
$
0.51
$
0.48
Weighted average shares used in the
calculation of basic and diluted net income (loss) and adjusted net
income (loss) per common share
Basic
64,489
64,767
64,703
64,660
Diluted
64,489
64,767
65,057
64,660
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
Reconciliation of net income (loss) to
adjusted EBITDA (non-GAAP):
Three Months Ended
Nine Months Ended
March 31, 2024
April 2, 2023
March 31, 2024
April 2, 2023
Net income (loss)
$
(16,903
)
$
(70,993
)
$
14,762
$
(22,155
)
Add: Interest expense and other, net
(2,693
)
3,116
3,138
11,150
Add: Depreciation and amortization
13,232
13,267
40,578
40,276
Add: Income tax (benefit) expense
(8,333
)
(16,767
)
7,844
126
EBITDA
(14,697
)
(71,377
)
66,322
29,397
Add: Stock-based compensation
3,046
2,487
7,641
5,941
Add: Compensation charge related to NQDC
Plan Investment Appreciation (Depreciation)
3,534
(1,446
)
5,712
(2,548
)
Add: Transaction costs
-
201
-
444
Add: Restructuring cost/Severance
2,417
-
2,417
-
Add: Goodwill and intangible
impairment
-
64,586
19,762
64,586
Adjusted EBITDA
$
(5,700
)
$
(5,549
)
$
101,854
$
97,820
(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.
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
Reconciliation of net cash provided by
operating activities to free cash flow (non-GAAP):
Nine Months Ended
March 31, 2024
April 2, 2023
Net cash provided by operating
activities
$
100,051
$
73,064
Capital expenditures
(26,482
)
(31,351
)
Free cash flow
$
73,569
$
41,713
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240502250163/en/
Investor Contact: Andy Milevoj
(516) 237-4617 amilevoj@1800flowers.com
Media Contact: Cherie Gallarello
cgallarello@1800flowers.com
1 800 Flowers Com (NASDAQ:FLWS)
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