Generates Net Revenues of $417.6 million and a
Net Loss of $71.0 million, which Net Loss Includes an After-Tax,
Non-Cash Goodwill and Intangible Asset Impairment Charge of $53.1
million
Adjusted Net Loss(1) Improves to $17.8 million,
Compared with an Adjusted Net Loss of $21.0 million in the Prior
Year Period
Adjusted EBITDA(1) Loss Improves to $5.5
million, Compared with an Adjusted EBITDA Loss of $12.0 million in
the Prior Year Period, as Gross Margin Improvement and Operating
Efficiencies Mitigate Revenue Decline
Updates Fiscal 2023 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 2023 third quarter, ended April 2, 2023.
Fiscal 2023 Third Quarter
Highlights
- Total consolidated revenues decreased 11.1% to $417.6 million,
compared with total consolidated revenues of $469.6 million in the
prior year period.
- Gross profit margin for the quarter increased 80 basis points
to 33.6%, compared with 32.8% in the prior year period.
- Operating expenses increased $44.7 million from the prior year
period, including a $64.6 million non-cash goodwill and intangible
assets impairment charge. Excluding the impact of this charge,
operating expenses declined $19.8 million or 11.0%, as compared
with the prior year period.
- Net loss for the quarter was $71.0 million, or $1.10 per share,
which includes an after-tax non-cash goodwill and intangible assets
impairment charge of $53.1 million or $0.82 per share. Adjusted Net
Loss1 was $17.8 million, or $0.27 per share.
- Adjusted EBITDA1 for the quarter was a loss of $5.5 million, as
compared with an Adjusted EBITDA1 loss of $12.0 million in the
prior year period.
Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said “Our third
quarter results reflect a continuation of the trends that we have
experienced throughout this fiscal year. In this challenging
consumer environment, we are executing on our strategy to invest in
and develop stronger customer relationships, while continuing to
identify operating efficiencies to reduce expenses. As a result of
our expense optimization efforts, combined with improving gross
margin, we exceeded our Adjusted EBITDA1 expectations for the
quarter and are raising our full year Adjusted EBITDA1
guidance.”
McCann added, “We will continue to optimize operating expenses
in this environment, while simultaneously investing in the
long-term growth of our business, as evidenced by the recent
acquisitions of Things Remembered® and SmartGift®. We believe these
efforts position us well once the broader consumer environment
improves and reinforce our company as a premier gifting destination
that helps our customers connect with the important people in their
lives.”
Third Quarter 2023 Financial
Results
Total consolidated revenues decreased 11.1% to $417.6 million,
as compared with total consolidated revenues of $469.6 million in
the prior year period.
Gross profit margin for the quarter was 33.6%, increasing 80
basis points from the prior year period led by the Consumer Floral
and Gifts and BloomNet® segments. Operating expenses, excluding the
impairment charge noted above, stock-based compensation,
appreciation-or-depreciation of investments in the Company’s
non-qualified compensation plan, and the costs associated with a
legal settlement in the prior year period, were 38.1% of total
sales, or flat with the prior year period, as lower advertising and
labor costs were offset by higher depreciation and amortization due
to our capital investments in technology and automation.
As a result, the Company generated a net loss of $71.0 million,
or ($1.10) per share, and an Adjusted Net Loss1 of $17.8 million,
or ($0.27) per share, compared with a net loss of $23.4 million, or
($0.36) per share, and an Adjusted Net Loss1 of $21.0 million, or
($0.32) per share, in the prior year period.
Adjusted EBITDA1 for the quarter was a loss of $5.5 million, as
compared with an Adjusted EBITDA1 loss of $12.0 million in the
prior year period.
Segment Results
The Company provides 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
decreased 11.7% to $147.9 million, compared with $167.4 million in
the prior year period. Gross profit margin was 24.6%, compared with
25.3% in the prior year period, declining on continued higher
commodity costs, increased promotional activity and overhead cost
deleveraging. Segment contribution margin1 without the impairment
charge was a loss of $13.9 million, compared with an adjusted loss1
of $14.2 million a year ago.
- Consumer Floral and Gifts: Revenues decreased 11.8% to
$233.0 million, compared with $264.2 million in the prior year
period. Gross profit margin increased to 37.9%, compared with 36.7%
in the prior year period, on strategic pricing initiatives and
lower cost of merchandise in part due to lower ocean freight costs.
Segment contribution margin1 was $26.1 million, compared with $20.5
million the prior year.
- BloomNet: Revenues for the quarter decreased 3.8% to
$37.0 million, compared with $38.4 million in the prior year
period. Gross profit margin increased to 42.5%, compared with 38.7%
in the prior year on strategic pricing initiatives and lower ocean
freight costs. Segment contribution margin1 was $11.0 million,
compared with $9.8 million in the prior year period.
Company Guidance
Based on its third quarter performance and outlook for the
balance of the year, the Company is updating its Fiscal 2023
guidance. This outlook includes a continuation of the challenging
consumer environment, which is expected to be mitigated by the
Company’s expense management efforts.
The Company expects:
- total revenues to decline approximately 8% as compared with the
prior year;
- adjusted EBITDA1 to be in a range of $85 million to $90
million; and
- Free Cash Flow1 to exceed $75 million.
Conference Call
The Company will conduct a conference call to discuss the above
details and attached financial results today, Thursday, May 11, 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 18, 2023,
at: (US) 1-877-344-7529; (Canada) 855-669-9658; (International)
1-412-317-0088; enter conference ID #: 4785326.
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 Contribution
Margin is defined as 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®, Stock Yards® 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 livestreaming and on
demand 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,” “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 sell through existing inventories; 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)
April 2, 2023
July 3, 2022
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
51,598
$
31,465
Trade receivables, net
36,792
23,812
Inventories
191,894
247,563
Prepaid and other
39,183
45,398
Total current assets
319,467
348,238
Property, plant and equipment, net
231,476
236,481
Operating lease right-of-use assets
128,746
129,390
Goodwill
153,376
213,287
Other intangibles, net
141,002
145,568
Other assets
24,720
21,927
Total assets
$
998,787
$
1,094,891
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
21,825
$
57,386
Accrued expenses
147,750
175,392
Current maturities of long-term debt
20,000
20,000
Current portion of long-term operating
lease liabilities
15,517
12,919
Total current liabilities
205,092
265,697
Long-term debt, net
128,112
142,497
Long-term operating lease liabilities
121,568
123,662
Deferred tax liabilities, net
31,352
35,742
Other liabilities
20,665
17,884
Total liabilities
506,789
585,482
Total stockholders’ equity
491,998
509,409
Total liabilities and stockholders’
equity
$
998,787
$
1,094,891
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
April 2,
2023
March 27,
2022
April 2,
2023
March 27,
2022
Net revenues:
E-Commerce
$
357,801
$
409,777
$
1,387,133
$
1,500,670
Other
59,765
59,799
231,914
221,323
Total net revenues
417,566
469,576
1,619,047
1,721,993
Cost of revenues
277,126
315,485
1,009,383
1,063,938
Gross profit
140,440
154,091
609,664
658,055
Operating expenses:
Marketing and sales
106,472
130,645
390,077
432,795
Technology and development
14,837
14,456
44,529
41,369
General and administrative
25,922
22,553
81,075
78,491
Depreciation and amortization
13,267
12,693
40,276
36,251
Goodwill and intangible impairment
64,586
-
64,586
-
Total operating expenses
225,084
180,347
620,543
588,906
Operating income (loss)
(84,644
)
(26,256
)
(10,879
)
69,149
Interest expense, net
1,712
1,226
8,676
4,477
Other expense (income), net
1,404
4,007
2,474
954
Income (loss) before income taxes
(87,760
)
(31,489
)
(22,029
)
63,718
Income tax expense (benefit)
(16,767
)
(8,080
)
126
11,858
Net income (loss)
$
(70,993
)
$
(23,409
)
$
(22,155
)
$
51,860
Basic net income (loss) per common
share
$
(1.10
)
$
(0.36
)
$
(0.34
)
$
0.80
Diluted net income (loss) per common
share
$
(1.10
)
$
(0.36
)
$
(0.34
)
$
0.79
Weighted average shares used in the
calculation of net income (loss) per common share:
Basic
64,767
65,028
64,660
65,086
Diluted
64,767
65,028
64,660
65,849
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
April 2, 2023
March 27, 2022
Operating activities:
Net income (loss)
$
(22,155
)
$
51,860
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Goodwill and intangible asset
impairment
64,586
Depreciation and amortization
40,276
36,251
Amortization of deferred financing
costs
998
943
Deferred income taxes
(4,390
)
(1,678
)
Bad debt expense
2,997
(873
)
Stock-based compensation
5,941
6,803
Other non-cash items
(245
)
1,352
Changes in operating items:
Trade receivables
(15,977
)
(18,570
)
Inventories
57,031
(51,928
)
Prepaid and other
2,706
7,174
Accounts payable and accrued expenses
(59,806
)
6,847
Other assets and liabilities
1,102
547
Net cash provided by operating
activities
73,064
38,728
Investing activities:
Acquisitions, net of cash acquired
(5,000
)
(22,105
)
Capital expenditures, net of non-cash
expenditures
(31,351
)
(47,945
)
Net cash used in investing activities
(36,351
)
(70,050
)
Financing activities:
Acquisition of treasury stock
(1,197
)
(34,788
)
Proceeds from exercise of employee stock
options
-
846
Proceeds from bank borrowings
195,900
125,000
Repayment of notes payable and bank
borrowings
(210,900
)
(140,000
)
Debt issuance cost
(383
)
(284
)
Net cash used in financing activities
(16,580
)
(49,226
)
Net change in cash and cash
equivalents
20,133
(80,548
)
Cash and cash equivalents:
Beginning of period
31,465
173,573
End of period
$
51,598
$
93,025
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Three Months Ended
April 2,
2023
Goodwill
and
Intangible
Impairment
Things
Remembered
Transaction
Costs
As Adjusted
(non-GAAP)
April 2, 2023
March 27,
2022
Vital Choice
and Alice's
Table
Transaction
Costs
Litigation
Settlement
As Adjusted
(non-GAAP)
March 27,
2022
% Change
Net revenues:
Consumer Floral & Gifts
$
233,019
$
-
$
-
$
233,019
$
264,243
$
-
$
-
$
264,243
-11.8
%
BloomNet
36,968
36,968
38,448
38,448
-3.8
%
Gourmet Foods & Gift Baskets
147,863
147,863
167,402
167,402
-11.7
%
Corporate
36
36
43
43
-16.3
%
Intercompany eliminations
(320
)
(320
)
(560
)
(560
)
42.9
%
Total net revenues
$
417,566
$
-
$
-
$
417,566
$
469,576
$
-
$
-
$
469,576
-11.1
%
Gross profit:
Consumer Floral & Gifts
$
88,317
$
88,317
$
96,875
$
96,875
-8.8
%
37.9
%
37.9
%
36.7
%
36.7
%
BloomNet
15,720
15,720
14,895
14,895
5.5
%
42.5
%
42.5
%
38.7
%
38.7
%
Gourmet Foods & Gift Baskets
36,371
36,371
42,343
42,343
-14.1
%
24.6
%
24.6
%
25.3
%
25.3
%
Corporate
32
32
(22
)
(22
)
245.5
%
88.9
%
88.9
%
-51.2
%
-51.2
%
Total gross profit
$
140,440
$
-
$
-
$
140,440
$
154,091
$
-
$
-
$
154,091
-8.9
%
33.6
%
-
-
33.6
%
32.8
%
-
-
32.8
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
26,136
$
-
$
26,136
$
20,523
$
-
$
-
$
20,523
27.3
%
BloomNet
10,982
10,982
9,783
9,783
12.3
%
Gourmet Foods & Gift Baskets
(78,480
)
64,586
(13,894
)
(17,134
)
2,900
(14,234
)
2.4
%
Segment Contribution Margin Subtotal
(41,362
)
64,586
-
23,224
13,172
-
2,900
16,072
44.5
%
Corporate (b)
(30,015
)
201
(29,814
)
(26,735
)
25
(26,710
)
-11.6
%
EBITDA (non-GAAP)
(71,377
)
64,586
201
(6,590
)
(13,563
)
25
2,900
(10,638
)
38.1
%
Add: Stock-based compensation
2,487
2,487
1,507
1,507
65.0
%
Add: Compensation charge related to NQ
Plan Investment (Depreciation) Appreciation
(1,446
)
(1,446
)
(2,881
)
(2,881
)
49.8
%
Adjusted EBITDA (non-GAAP)
$
(70,336
)
$
64,586
$
201
$
(5,549
)
$
(14,937
)
$
25
$
2,900
$
(12,012
)
53.8
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Nine Months Ended
April 2,
2023
Goodwill
and
Intangible
Impairment
Things
Remembered
Transaction
Costs
As Adjusted
(non-GAAP)
April 2, 2023
March 27,
2022
Vital Choice
and Alice's
Table
Transaction
Costs
Litigation
Settlement
As Adjusted
(non-GAAP)
March 27,
2022
% Change
Net revenues:
Consumer Floral & Gifts
$
672,248
$
-
$
-
$
672,248
$
760,555
$
-
$
-
$
760,555
-11.6
%
BloomNet
103,187
103,187
107,212
107,212
-3.8
%
Gourmet Foods & Gift Baskets
844,522
844,522
855,830
855,830
-1.3
%
Corporate
152
152
157
157
-3.2
%
Intercompany eliminations
(1,062
)
(1,062
)
(1,761
)
(1,761
)
39.7
%
Total net revenues
$
1,619,047
$
-
$
-
$
1,619,047
$
1,721,993
$
-
$
-
$
1,721,993
-6.0
%
Gross profit:
Consumer Floral & Gifts
$
262,510
$
-
$
-
$
262,510
$
302,903
$
-
$
-
$
302,903
-13.3
%
39.0
%
39.0
%
39.8
%
39.8
%
BloomNet
44,086
44,086
46,325
46,325
-4.8
%
42.7
%
42.7
%
43.2
%
43.2
%
Gourmet Foods & Gift Baskets
302,902
302,902
308,745
308,745
-1.9
%
35.9
%
35.9
%
36.1
%
36.1
%
Corporate
166
166
82
82
102.4
%
109.2
%
109.2
%
52.2
%
52.2
%
Total gross profit
$
609,664
$
-
$
-
$
609,664
$
658,055
$
-
$
-
$
658,055
-7.4
%
37.7
%
-
-
37.7
%
38.2
%
-
-
38.2
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
64,832
$
-
$
-
$
64,832
$
77,869
$
-
$
-
$
77,869
-16.7
%
BloomNet
29,847
29,847
32,530
32,530
-8.2
%
Gourmet Foods & Gift Baskets
26,313
64,586
90,899
85,695
2,900
88,595
2.6
%
Segment Contribution Margin Subtotal
120,992
64,586
-
185,578
196,094
-
2,900
198,994
-6.7
%
Corporate (b)
(91,595
)
444
(91,151
)
(90,694
)
540
(90,154
)
-1.1
%
EBITDA (non-GAAP)
29,397
64,586
444
94,427
105,400
540
2,900
108,840
-13.2
%
Add: Stock-based compensation
5,941
5,941
6,803
6,803
-12.7
%
Add: Compensation charge related to NQ
Plan Investment (Depreciation) Appreciation
(2,548
)
(2,548
)
111
111
-2,395.5
%
Adjusted EBITDA (non-GAAP)
$
32,790
$
64,586
$
444
$
97,820
$
112,314
$
540
$
2,900
$
115,754
-15.5
%
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
April 2,
2023
March 27,
2022
April 2,
2023
March 27,
2022
Net income (loss)
$
(70,993
)
$
(23,409
)
$
(22,155
)
$
51,860
Adjustments to reconcile net income (loss)
to adjusted net income (loss) (non-GAAP)
Add: Transaction costs
201
25
444
540
Add: Litigation settlement
-
2,900
-
2,900
Add: Goodwill and Intangibles
Impairment
64,586
-
64,586
-
Deduct: Income tax effect on
adjustments
(11,546
)
(533
)
(11,609
)
(641
)
Adjusted net income (loss)
(non-GAAP)
$
(17,752
)
$
(21,017
)
$
31,266
$
54,659
Basic and diluted net income (loss) per
common share
Basic
$
(1.10
)
$
(0.36
)
$
(0.34
)
$
0.80
Diluted
$
(1.10
)
$
(0.36
)
$
(0.34
)
$
0.79
Basic and diluted adjusted net income
(loss) per common share (non-GAAP)
Basic
$
(0.27
)
$
(0.32
)
$
0.48
$
0.84
Diluted
$
(0.27
)
$
(0.32
)
$
0.48
$
0.83
Weighted average shares used in the
calculation of basic and diluted net income (loss) and adjusted net
income (loss) per common share
Basic
64,767
65,028
64,660
65,086
Diluted
64,767
65,028
64,660
65,849
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
April 2,
2023
March 27,
2022
April 2,
2023
March 27,
2022
Net income (loss)
$
(70,993
)
$
(23,409
)
$
(22,155
)
$
51,860
Add: Interest expense and other, net
3,116
5,233
11,150
5,431
Add: Depreciation and amortization
13,267
12,693
40,276
36,251
Add: Income tax expense (benefit)
(16,767
)
(8,080
)
126
11,858
EBITDA
(71,377
)
(13,563
)
29,397
105,400
Add: Stock-based compensation
2,487
1,507
5,941
6,803
Add: Compensation charge related to NQ
plan investment (depreciation) appreciation
(1,446
)
(2,881
)
(2,548
)
111
Add: Goodwill and Intangible
Impairment
64,586
-
64,586
-
Add: Transaction costs
201
25
444
540
Add: Litigation settlement
-
2,900
-
2,900
Adjusted EBITDA
$
(5,549
)
$
(12,012
)
$
97,820
$
115,754
(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/20230511005059/en/
Investors: Andy Milevoj (516)
237-4617 amilevoj@1800flowers.com
Media: Cherie Gallarello
cgallarello@1800flowers.com
Grafico Azioni 1 800 Flowers Com (NASDAQ:FLWS)
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Grafico Azioni 1 800 Flowers Com (NASDAQ:FLWS)
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