Reports Fiscal Year 2024 Revenue of $1.83
Billion and a Net Loss of $6.1 Million, which Includes a Non-Cash
Impairment Charge of $19.8 million Recorded in the Second
Quarter
Fiscal Year 2024 Gross Profit Margin Increased
260 Basis Points to 40.1%
Fiscal Year 2024 Adjusted EBITDA1 Increased to
$93.1 million
Issues Fiscal Year 2025 Outlook
(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 fourth quarter and year ended June 30,
2024.
“In a dynamic consumer environment that impacted discretionary
consumer spending, especially amongst lower income households, our
organization was able to grow year-over-year adjusted EBITDA, which
benefitted from our significant gross margin recovery and our
expense optimization efforts that more than offset the top line
decline,” said Jim McCann, Chairman and Chief Executive Officer of
1-800-FLOWERS.COM, Inc. “During Fiscal 2024, through our
Relationship Innovation initiatives, we significantly enhanced our
gifting platform, including category expansion, broadening our
price points, increasing our assortment of gifts available for
same-day delivery, and enhancing the user experience. We also
experienced a significant recovery in our gross profit margin,
which benefitted from a reversion to the mean on a number of
commodity costs combined with our Work Smarter initiatives to
operate more efficiently.”
“As we turn to Fiscal 2025, with our gross margin recovery well
underway, our organization continues to be keenly focused on
improving our sales trends by leveraging our Relationship
Innovation initiatives. Acknowledging the uncertain consumer
environment, we anticipate revenue trends improving as the fiscal
year progresses as consumers respond to our newer offerings and
services. We are confident in our strategic direction to be the
gifting destination of choice for thoughtful and expressive
gift-giving occasions and remain focused on delivering long-term
value to our shareholders,” Mr. McCann continued.
Fiscal 2024 Fourth Quarter
Highlights
- Total consolidated revenues decreased 9.5% to $360.9 million,
compared with total consolidated revenues of $398.8 million in the
prior year period.
- Gross profit margin increased 130 basis points to 38.4%,
compared with 37.1% in the prior year period. The gross profit
margin improved on lower freight costs, a decline in certain
commodity costs, and the Company’s logistics optimization
efforts.
- Operating expenses declined $5.8 million to $166.2 million, as
compared with the prior year period.
- Net loss for the quarter was $20.9 million, or ($0.32) per
share, as compared to a net loss of $22.5 million, or ($0.35) per
share in the prior year period.
- Adjusted Net Loss1 was $21.8 million, or ($0.34) per share,
compared with an Adjusted Net Loss1 of $17.8 million, or ($0.28)
per share, in the prior year period.
- Adjusted EBITDA1 loss for the quarter was $8.8 million, as
compared with an Adjusted EBITDA1 loss of $6.6 million in the prior
year period.
- Acquired Scharffen Berger Chocolate Maker, a high-end producer
of extraordinary craft chocolates, that enhances and expands the
Company’s chocolate offerings within its gourmet food and gift
basket business. The acquisition closed after the fourth quarter
ended.
Fiscal Year 2024
Highlights
- Total consolidated revenues decreased 9.2% to $1.83 billion,
compared with total consolidated revenues of $2.02 billion in the
prior year period.
- Gross profit margin increased 260 basis points to 40.1%,
compared with 37.5% in the prior year period. The gross profit
margin improved on lower freight costs, improved commodity costs,
and the Company’s logistics optimization efforts.
- Operating expenses declined $55.7 million to $736.8 million, as
compared with the prior year period. Excluding impairment and other
non-recurring charges in both periods, as well as the impact of the
Company’s non-qualified deferred compensation plan in both periods,
operating expenses declined by $22.2 million to $706.1 million, as
compared with the prior year.
- Net loss for the fiscal year was $6.1 million, or ($0.09) per
share, compared with $44.7 million, or ($0.69) per share, in the
prior year period. Both periods include impairment charges as
outlined in the financial tables.
- Adjusted Net Income1 was $11.6 million, or $0.18 per share,
compared with Adjusted Net Income1 of $13.4 million, or $0.21 per
share, in the prior year period.
- Adjusted EBITDA1 for the fiscal year was $93.1 million, as
compared with $91.2 million in the prior year period.
- Net cash provided by operating activities was $95.0
million.
- Generated Free Cash Flow1 of $56.4 million.
Segment Results
The Company provides Fiscal 2024 fourth quarter and full year
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
declined 12.8% to $105.2 million, as compared with the prior year
period. Gross profit margin increased 190 basis points from the
prior year period to 30.0%, benefiting from lower freight costs,
the Company’s inventory and labor optimization efforts, as well as
a decline in certain commodity costs. Segment contribution margin1
loss was $14.4 million, compared with a loss of $13.4 million in
the prior year period. For the full fiscal year, revenue decreased
9.4% to $874.3 million. Gross profit margin increased 340 basis
points to 38.3%, 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 year and the impairment charge a year ago,
segment contribution margin1 for the year was $85.0 million,
compared with $77.5 million in the prior year.
- Consumer Floral & Gifts: Revenues for the quarter
declined 6.7% to $231.6 million, as compared with the prior year
period. Gross profit margin increased 20 basis points from the
prior year period to 40.8%. Segment contribution margin1 was $25.7
million, compared with $30.7 million in the prior year period. For
the full fiscal year, revenues decreased 7.7% to $849.8 million, as
compared with the prior year period. Gross profit margin increased
130 basis points from the prior year period to 40.8%, improving on
lower fulfillment costs and the Company’s logistics optimization
efforts. Excluding the impact of the severance and impairment
charges in the current year, segment contribution margin1 was $87.7
million, compared with $95.5 million in the prior year.
- BloomNet: Revenues for the quarter declined 18.7% to
$24.4 million, as compared with the prior year period. Revenue and
gross margin were impacted by the lower volume of lower margin
orders processed by BloomNet. Gross profit margin increased 710
basis points from the prior year period to 49.7%, also benefitting
from lower ocean freight costs as well as product mix. Segment
contribution margin1 was $7.8 million, compared with $7.4 million
in the prior year period. For the year, revenues decreased 19.1% to
$107.8 million, as compared with the prior year period. Gross
profit margin increased 550 basis points from the prior year period
to 48.2% due to lower volume of lower margin orders, lower ocean
freight costs, as well as product mix. Excluding the impact of the
severance charge in the current year, segment contribution margin1
for the year was $33.8 million, compared with $37.2 million in the
prior year.
Company Guidance
For Fiscal 2025, with a sustained challenging consumer
environment, the Company expects revenue trends to improve as the
fiscal year progresses benefitting from the company’s Relationship
Innovation initiatives that have expanded the Company’s product
offerings, broadened price points, and enhanced the user
experience, combined with increased marketing spend. Additionally,
the guidance assumes increased incentive compensation expense.
As a result, for Fiscal Year 2025 the Company expects:
- total revenues on a percentage basis to be in a range of flat
to a decrease in the low-single digits, as compared with the prior
year;
- Adjusted EBITDA1 to be in a range of $85 million to $95
million; and
- Free Cash Flow1 to be in a range of $45 million to $55
million.
Conference Call
The Company will conduct a conference call to discuss the above
details and attached financial results today, August 29, 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 September 5,
2024, at: (US) 1-877-344-7529; (Canada) 855-669-9658;
(International) 1-412-317-0088; enter conference ID #: 5141252.
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)
June 30, 2024
July 2, 2023
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
159,437
$
126,807
Trade receivables, net
18,024
20,419
Inventories
176,591
191,334
Prepaid and other
31,680
34,583
Total current assets
385,732
373,143
Property, plant and equipment, net
223,789
234,569
Operating lease right-of-use assets
113,926
124,715
Goodwill
156,537
153,376
Other intangibles, net
116,216
139,888
Other assets
36,448
25,739
Total assets
$
1,032,648
$
1,051,430
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
80,005
$
52,588
Accrued expenses
121,303
141,914
Current maturities of long-term debt
10,000
10,000
Current portion of long-term operating
lease liabilities
16,511
15,759
Total current liabilities
227,819
220,261
Long-term debt, net
177,113
186,391
Long-term operating lease liabilities
105,866
117,330
Deferred tax liabilities, net
19,402
31,134
Other liabilities
36,106
24,471
Total liabilities
566,306
579,587
Total stockholders’ equity
466,342
471,843
Total liabilities and stockholders’
equity
$
1,032,648
$
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
Years Ended
June 30,
July 2,
June 30,
July 2,
2024
2023
2024
2023
Net revenues:
E-Commerce
$
325,641
$
357,489
$
1,614,199
$
1,744,622
Other
35,271
41,317
217,222
273,231
Total net revenues
360,912
398,806
1,831,421
2,017,853
Cost of revenues
222,501
250,944
1,096,668
1,260,327
Gross profit
138,411
147,862
734,753
757,526
Operating expenses:
Marketing and sales
108,113
110,763
485,016
500,840
Technology and development
14,818
16,162
60,235
60,691
General and administrative
30,122
31,672
118,060
112,747
Depreciation and amortization
13,174
13,397
53,752
53,673
Goodwill and intangible impairment
-
-
19,762
64,586
Total operating expenses
166,227
171,994
736,825
792,537
Operating loss
(27,816
)
(24,132
)
(2,072
)
(35,011
)
Interest expense, net
1,649
2,270
10,623
10,946
Other (income) expense, net
(957
)
(1,669
)
(6,793
)
805
Loss before income taxes
(28,508
)
(24,733
)
(5,902
)
(46,762
)
Income tax (benefit) expense
(7,641
)
(2,186
)
203
(2,060
)
Net loss
$
(20,867
)
$
(22,547
)
$
(6,105
)
$
(44,702
)
Basic and diluted net loss per common
share
$
(0.32
)
$
(0.35
)
$
(0.09
)
$
(0.69
)
Basic and diluted weighted average shares
used in the calculation of net loss per common share:
64,234
64,773
64,586
64,688
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Years Ended
June 30, 2024
July 2, 2023
Operating activities:
Net loss
$
(6,105
)
$
(44,702
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Goodwill and intangible impairment
19,762
64,586
Depreciation and amortization
53,752
53,673
Amortization of deferred financing
costs
724
1,834
Deferred income taxes
(11,732
)
(4,608
)
Bad debt expense
251
3,991
Stock-based compensation
10,688
8,334
Other non-cash items
310
95
Changes in operating items:
Trade receivables
2,143
(597
)
Inventories
14,572
57,591
Prepaid and other
2,913
12,554
Accounts payable and accrued expenses
6,404
(38,623
)
Other assets and liabilities
1,317
1,223
Net cash provided by operating
activities
94,999
115,351
Investing activities:
Acquisitions, net of cash acquired
(3,672
)
(6,151
)
Capital expenditures
(38,632
)
(44,646
)
Purchase of equity investments
-
(32
)
Net cash used in investing activities
(42,304
)
(50,829
)
Financing activities:
Acquisition of treasury stock
(10,394
)
(1,239
)
Proceeds from exercise of employee stock
options
329
-
Proceeds from bank borrowings
82,000
395,900
Repayment of bank borrowings
(92,000
)
(360,900
)
Debt issuance cost
-
(2,941
)
Net cash (used in) provided by financing
activities
(20,065
)
30,820
Net change in cash and cash
equivalents
32,630
95,342
Cash and cash equivalents:
Beginning of period
126,807
31,465
End of period
$
159,437
$
126,807
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Three Months Ended
June 30, 2024
Litigation Settlement
Transaction Costs
Restructuring
cost/Severance
As Adjusted (non-GAAP) June
30, 2024
July 2, 2023
% Change
Net revenues:
Consumer Floral & Gifts
$
231,555
$
-
$
-
$
-
$
231,555
$
248,262
-6.7
%
BloomNet
24,382
24,382
29,996
-18.7
%
Gourmet Foods & Gift Baskets
105,201
105,201
120,669
-12.8
%
Corporate
80
80
223
-64.1
%
Intercompany eliminations
(306
)
(306
)
(344
)
11.0
%
Total net revenues
$
360,912
$
-
$
-
$
-
$
360,912
$
398,806
-9.5
%
Gross profit:
Consumer Floral & Gifts
$
94,448
$
94,448
$
100,832
-6.3
%
40.8
%
40.8
%
40.6
%
BloomNet
12,116
12,116
12,793
-5.3
%
49.7
%
49.7
%
42.6
%
Gourmet Foods & Gift Baskets
31,594
31,594
33,862
-6.7
%
30.0
%
30.0
%
28.1
%
Corporate
253
253
375
-32.5
%
316.3
%
316.3
%
168.2
%
Total gross profit
$
138,411
$
-
$
-
$
-
$
138,411
$
147,862
-6.4
%
38.4
%
-
-
-
38.4
%
37.1
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
25,669
$
25,669
$
30,703
-16.4
%
BloomNet
7,785
7,785
7,350
5.9
%
Gourmet Foods & Gift Baskets
(14,445
)
(14,445
)
(13,418
)
-7.7
%
Segment Contribution Margin Subtotal
19,009
-
-
-
19,009
24,635
-22.8
%
Corporate (b)
(33,651
)
1,200
269
147
(32,035
)
(35,370
)
9.4
%
EBITDA (non-GAAP)
(14,642
)
1,200
269
147
(13,026
)
(10,735
)
-21.3
%
Add: Stock-based compensation
3,047
3,047
2,393
27.3
%
Add: Compensation charge related to NQDC
Plan Investment Appreciation (Depreciation)
1,192
1,192
1,726
-30.9
%
Adjusted EBITDA (non-GAAP)
$
(10,403
)
$
1,200
$
269
$
147
$
(8,787
)
$
(6,616
)
-32.8
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Years Ended
June 30, 2024
Litigation Settlement
Transaction Costs
Intangible Impairment
Restructuring
cost/Severance
As Adjusted (non-GAAP) June
30, 2024
July 2, 2023
Goodwill
and Intangible
Impairment
Transaction Costs
As Adjusted (non-GAAP) July 2,
2023
% Change
Net revenues:
Consumer Floral & Gifts
$
849,791
$
-
$
-
$
-
$
-
$
849,791
$
920,510
$
-
$
-
$
920,510
-7.7
%
BloomNet
107,802
107,802
133,183
133,183
-19.1
%
Gourmet Foods & Gift Baskets
874,262
874,262
965,191
965,191
-9.4
%
Corporate
796
796
375
375
112.3
%
Intercompany eliminations
(1,230
)
(1,230
)
(1,406
)
(1,406
)
12.5
%
Total net revenues
$
1,831,421
$
-
$
-
$
-
$
-
$
1,831,421
$
2,017,853
$
-
$
-
$
2,017,853
-9.2
%
Gross profit:
Consumer Floral & Gifts
$
346,951
$
-
$
-
$
-
$
-
$
346,951
$
363,342
$
-
$
-
$
363,342
-4.5
%
40.8
%
40.8
%
39.5
%
39.5
%
BloomNet
51,999
51,999
56,879
56,879
-8.6
%
48.2
%
48.2
%
42.7
%
42.7
%
Gourmet Foods & Gift Baskets
334,870
334,870
336,764
336,764
-0.6
%
38.3
%
38.3
%
34.9
%
34.9
%
Corporate
933
933
541
541
72.5
%
117.2
%
117.2
%
144.3
%
144.3
%
Total gross profit
$
734,753
$
-
$
-
$
-
$
-
$
734,753
$
757,526
$
-
$
-
$
757,526
-3.0
%
40.1
%
-
-
-
-
40.1
%
37.5
%
-
-
37.5
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
67,278
$
-
$
-
$
19,762
$
630
$
87,670
$
95,535
$
-
$
-
$
95,535
-8.2
%
BloomNet
33,766
69
33,835
37,197
37,197
-9.0
%
Gourmet Foods & Gift Baskets
84,508
538
85,046
12,895
64,586
-
77,481
9.8
%
Segment Contribution Margin Subtotal
185,552
-
-
19,762
1,237
206,551
145,627
64,586
-
210,213
-1.7
%
Corporate (b)
(133,872
)
1,200
269
1,327
(131,076
)
(126,965
)
444
(126,521
)
-3.6
%
EBITDA (non-GAAP)
51,680
1,200
269
19,762
2,564
75,475
18,662
64,586
444
83,692
-9.8
%
Add: Stock-based compensation
10,688
10,688
8,334
8,334
28.2
%
Add: Compensation charge related to NQDC
Plan Investment Appreciation (Depreciation)
6,904
6,904
(822
)
(822
)
939.9
%
Adjusted EBITDA (non-GAAP)
$
69,272
$
1,200
$
269
$
19,762
$
2,564
$
93,067
$
26,174
$
64,586
$
444
$
91,204
2.0
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands, except for per
share data)
(unaudited)
Reconciliation of net loss to adjusted
net income loss (non-GAAP):
Three Months Ended
Years Ended
June 30,
July 2,
June 30,
July 2,
2024
2023
2024
2023
Net loss
$
(20,867
)
$
(22,547
)
$
(6,105
)
$
(44,702
)
Adjustments to reconcile net loss to
adjusted net income (loss) (non-GAAP)
Add: Transaction costs
269
-
269
444
Add: Restructuring cost/Severance
147
-
2,564
-
Add: Litigation settlement
1,200
-
1,200
-
Add: Goodwill and intangible
impairment
-
-
19,762
64,586
Deduct: Income tax effect on
adjustments
(2,541
)
4,710
(6,079
)
(6,899
)
Adjusted net income (loss)
(non-GAAP)
$
(21,792
)
$
(17,837
)
$
11,611
$
13,429
Basic and diluted net loss per common
share
$
(0.32
)
$
(0.35
)
$
(0.09
)
$
(0.69
)
Basic and diluted adjusted net income
(loss) per common share (non-GAAP)
$
(0.34
)
$
(0.28
)
$
0.18
$
0.21
Weighted average shares used in the
calculation of basic and diluted net loss and adjusted net income
(loss) per common share
64,234
64,773
64,586
64,688
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
Reconciliation of net loss to adjusted
EBITDA (non-GAAP):
Three Months Ended
Years Ended
June 30,
July 2,
June 30,
July 2,
2024
2023
2024
2023
Net loss
$
(20,867
)
$
(22,547
)
$
(6,105
)
$
(44,702
)
Add: Interest expense and other, net
692
601
3,830
11,751
Add: Depreciation and amortization
13,174
13,397
53,752
53,673
Add: Income tax (benefit) expense
(7,641
)
(2,186
)
203
(2,060
)
EBITDA
(14,642
)
(10,735
)
51,680
18,662
Add: Stock-based compensation
3,047
2,393
10,688
8,334
Add: Compensation charge related to NQDC
Plan Investment Appreciation (Depreciation)
1,192
1,726
6,904
(822
)
Add: Transaction costs
269
-
269
444
Add: Restructuring cost/Severance
147
-
2,564
-
Add: Litigation settlement
1,200
-
1,200
-
Add: Goodwill and intangible
impairment
-
-
19,762
64,586
Adjusted EBITDA
$
(8,787
)
$
(6,616
)
$
93,067
$
91,204
(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):
Years Ended
June 30,
July 2,
2024
2023
Net cash provided by operating
activities
$
94,999
$
115,351
Capital expenditures
(38,632
)
(44,646
)
Free cash flow
$
56,367
$
70,705
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240829358669/en/
Investor Contact: Andy Milevoj
(516) 237-4617 amilevoj@1800flowers.com
Media Contact: Cherie Gallarello
cgallarello@1800flowers.com
1 800 Flowers Com (NASDAQ:FLWS)
Graphique Historique de l'Action
De Jan 2025 à Fév 2025
1 800 Flowers Com (NASDAQ:FLWS)
Graphique Historique de l'Action
De Fév 2024 à Fév 2025
