Reports Fiscal Year 2023 Revenue of $2.0
Billion and a Net Loss of $44.7 Million, which Net Loss Includes an
After-Tax, Non-Cash Charge of $57.8 Million Associated with the
Third Quarter Goodwill and Intangible Asset Impairment Charge
Fiscal Year 2023 Adjusted Net Income1 was $13.4
million, or $0.21 Per Share, Compared with Adjusted Net Income1 of
$32.9 Million, or $0.50 Per Diluted Share, in the Prior Year
Period
Generates Adjusted EBITDA1 of $91.2 Million
During Fiscal Year 2023, as the Fourth Quarter Adjusted EBITDA
Loss1 Improves by $10.2 Million to $6.6 Million
Reports Fiscal Year 2023 Free Cash Flow1 of
$70.7 Million
Issues Fiscal Year 2024 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 fourth quarter and full year ended July
2, 2023.
Fiscal 2023 Fourth Quarter
Highlights
- Total consolidated revenues decreased 17.9% to $398.8 million,
compared with total consolidated revenues of $485.9 million in the
prior year period, which included a 53rd week. Excluding the impact
of the 53rd week in the prior year period, revenues declined
14.8%.
- Gross profit margin increased 340 basis points to 37.1%,
compared with 33.7% in the prior year period. This continues the
trend of improving gross margin since the fiscal first quarter led
by improvements across the Company’s three business segments, which
benefited from lower ocean freight costs, the Company’s strategic
pricing initiatives, and a decline in certain commodity costs.
- Operating expenses declined $18.7 million, or 9.8%, from $190.7
million in the prior year period to $172.0 million. On a percentage
basis, operating expenses increased to 43.1% of sales, compared
with 39.3% in the prior year period, primarily due to sales
deleverage and the performance of our non-qualified deferred
compensation plan, which was partially mitigated by marketing
efficiencies.
- Net loss for the quarter was $22.5 million, or ($0.35) per
share, compared with a net loss of $22.3 million, or ($0.34) per
share, in the prior year period. Net loss and net loss per share in
the current year period were impacted by the tax treatment of the
impairment charge recorded during the fiscal third quarter.
Adjusted net loss1 was $17.8 million, or ($0.28) per share,
compared with an adjusted net loss1 of $21.8 million, or ($0.34)
per share, in the prior year period.
- Adjusted EBITDA1 for the quarter was a loss of $6.6 million,
improving $10.2 million, as compared with an adjusted EBITDA1 loss
of $16.8 million in the prior year period.
Fiscal Year 2023
Highlights
- Total consolidated revenues decreased 8.6% to $2.02 billion,
compared with total consolidated revenues of $2.21 billion in the
prior year period, which included a 53rd week. Excluding the impact
of the 53rd week in the prior year period, revenues declined
7.9%.
- Gross profit margin increased 30 basis points to 37.5%,
compared with 37.2% in the prior year period. After declining 720
basis points during the fiscal first quarter on significantly
increased costs for labor, shipping, and commodities, gross profit
margin increased 90 basis points during the second quarter, 80
basis points during the third quarter, and 340 basis points during
the fourth quarter, as compared with the prior year periods,
benefiting from lower ocean freight costs combined with the
Company’s strategic pricing initiatives.
- Operating expenses increased $12.9 million from the prior year
period, including a $64.6 million non-cash goodwill and intangible
assets impairment charge that was recorded during the fiscal third
quarter. Excluding the impact of this charge, operating expenses
declined $51.7 million or 6.6%, compared with the prior year
period. Operating expenses as percent of sales, excluding the third
quarter impairment charge noted above, increased 80 basis points to
36.1%, compared with 35.3% in the prior year period, primarily due
to sales deleverage, which was partially mitigated by marketing
efficiencies.
- Net loss for the fiscal year was $44.7 million, or ($0.69) per
share, which includes an after-tax non-cash goodwill and intangible
assets impairment charge of $57.8 million, or ($0.89) per share,
compared with net income of $29.6 million, or $0.45 per diluted
share, in the prior year period. Adjusted net income1 was $13.4
million, or $0.21 per share, compared with adjusted net income1 of
$32.9 million, or $0.50 per diluted share, in the prior year
period.
- Adjusted EBITDA1 for the fiscal year was $91.2 million, as
compared with $99.0 million in the prior year period, reflecting
the significant improvement in adjusted EBITDA of $14.9 million in
the second, third and fourth quarters, collectively, after the
$22.7 million decline in the first quarter.
- Generated Free Cash Flow1 of $70.7 million during fiscal 2023,
an improvement of $131.9 million over the prior year.
Jim McCann, Chairman and Chief Executive Officer of
1-800-FLOWERS.COM, Inc., said “We successfully mitigated the impact
of a softer sales environment during Fiscal 2023 through our
expense optimization efforts coupled with the improvement in our
gross margin. Simultaneously, we executed on our strategic
initiatives to offer customers an expanding array of gift giving
options across multiple price points, we invested in our technology
platform to enhance the customer experience, and we expanded our
product portfolio, both organically and through acquisitions, which
positions us well as a premier gift giving destination once the
broader consumer environment improves.”
McCann added, “As we look beyond the current horizon, we believe
that the actions we have taken to enhance the customer experience,
improve margins, and optimize expenses, combined with an improved
consumer environment, will enable us to achieve our historical
sales growth, gross profit margin and adjusted EBITDA margin
rates.”
Segment Results The Company
provides Fiscal 2023 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
were $120.7 million, declining 18.7% compared with $148.4 million
in the prior year period. Gross profit margin was 28.1%, compared
with 23.2% percent in the prior year period. Segment contribution
margin1 loss was $13.4 million, compared with segment contribution
margin1 loss of $23.7 million in the prior year period. This
primarily reflects the gross margin improvement combined with more
efficient marketing spend. For the full fiscal year, revenue in
this segment decreased 3.9% to $965.2 million, compared with $1.0
billion in the prior year. Gross profit margin for the year was
34.9%, compared with 34.2% in the prior year. Segment contribution
margin for the year, without the impairment charge, was $77.5
million, compared with $64.9 million in the prior year.
- Consumer Floral & Gifts: Revenues for the quarter
were $248.3 million, declining 17.0% compared with $299.0 million
in the prior year period. Gross profit margin was 40.6%, compared
with 38.0% percent in the prior year period. Segment contribution
margin1 was $30.7 million, compared with segment contribution
margin1 of $26.5 million in the prior year period. This primarily
reflects gross profit margin improvement combined with marketing
efficiencies that more than offset the revenue decline. For the
full fiscal year, revenues decreased 13.1% to $920.5 million,
compared with $1.06 billion in the prior year. Gross profit margin
was 39.5%, compared with 39.3% in the prior year. Segment
contribution margin1 was $95.5 million, compared with $104.3
million in the prior year.
- BloomNet: Revenues for the quarter decreased 22.1% to
$30.0 million, compared with $38.5 million in the prior year
period. Gross profit margin was 42.6%, compared with 39.6% in the
prior year period, primarily reflecting lower ocean freight costs
as well as product mix. Segment contribution margin1 was $7.4
million, compared with $10.0 million in the prior year period. For
the year, revenues decreased 8.6% to $133.2 million, compared with
$145.7 million in the prior year. Gross profit margin was 42.7%,
compared with 42.3% in the prior year. Segment contribution margin1
for the year was $37.2 million, compared with $42.5 million in the
prior year.
Company Guidance For fiscal
2024, the Company expects revenues to remain pressured by a
challenging consumer environment early in the year, but then
rebound during the holiday period and into the second half of the
fiscal year. The Company also expects continued improvement in
gross margin. Additionally, the guidance assumes increased
compensation expense, including the restoration of 100 percent
bonus payout, compared with a partial payout in fiscal 2023.
As a result, the Company expects Fiscal 2024:
- total revenues on a percentage basis to decline in the
mid-single digits, 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, August 31, 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 7, 2023, at: (US) 1-877-344-7529; (Canada)
855-669-9658; (International) 1-412-317-0088; enter conference ID
#: 7782036.
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®, and Simply
Chocolate®. Through the Celebrations Passport® loyalty program,
which provides members with free standard shipping and no service
charge across our portfolio of brands, 1-800-FLOWERS.COM, Inc.
strives to deepen relationships with customers. The Company also
operates BloomNet®, an international floral and gift industry
service provider offering a broad-range of products and services
designed to help members grow their businesses profitably; Napco℠,
a resource for floral gifts and seasonal décor; DesignPac Gifts,
LLC, a manufacturer of gift baskets and towers; and Alice’s Table®,
a lifestyle business offering fully digital floral, culinary and
other experiences to guests across the country. 1-800-FLOWERS.COM,
Inc. was recognized among the top 5 on the National Retail
Federation’s 2021 Hot 25 Retailers list, which ranks the nation’s
fastest-growing retail companies, and was named to the Fortune 1000
list in 2022. Shares in 1-800-FLOWERS.COM, Inc. are traded on the
NASDAQ Global Select Market, ticker symbol: FLWS. For more
information, visit 1800flowersinc.com or follow @1800FLOWERSInc on
Twitter.
FLWS–COMP FLWS-FN
Special Note Regarding Forward Looking
Statements: This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements represent the
Company’s current expectations or beliefs concerning future events
and can generally be identified using statements that include words
such as “estimate,” “expects,” “project,” “believe,” “anticipate,”
“intend,” “plan,” “foresee,” “forecast,” “likely,” “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)
July 2, 2023
July 3, 2022
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
126,807
$
31,465
Trade receivables, net
20,419
23,812
Inventories
191,334
247,563
Prepaid and other
34,583
45,398
Total current assets
373,143
348,238
Property, plant and equipment, net
234,569
236,481
Operating lease right-of-use assets
124,715
129,390
Goodwill
153,376
213,287
Other intangibles, net
139,888
145,568
Other assets
25,739
21,927
Total assets
$
1,051,430
$
1,094,891
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
52,588
$
57,386
Accrued expenses
141,914
175,392
Current maturities of long-term debt
10,000
20,000
Current portion of long-term operating
lease liabilities
15,759
12,919
Total current liabilities
220,261
265,697
Long-term debt, net
186,391
142,497
Long-term operating lease liabilities
117,330
123,662
Deferred tax liabilities, net
31,134
35,742
Other liabilities
24,471
17,884
Total liabilities
579,587
585,482
Total stockholders’ equity
471,843
509,409
Total liabilities and stockholders’
equity
$
1,051,430
$
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
Years Ended
July 2,
2023
July 3,
2022
July 2,
2023
July 3,
2022
Net revenues:
E-Commerce
$
357,489
$
433,978
$
1,744,622
$
1,934,648
Other
41,317
51,914
273,231
273,237
Total net revenues
398,806
485,892
2,017,853
2,207,885
Cost of revenues
250,944
322,209
1,260,327
1,386,147
Gross profit
147,862
163,683
757,526
821,738
Operating expenses:
Marketing and sales
110,763
138,866
500,840
571,661
Technology and development
16,162
15,192
60,691
56,561
General and administrative
31,672
23,846
112,747
102,337
Depreciation and amortization
13,397
12,827
53,673
49,078
Goodwill and intangible impairment
-
-
64,586
-
Total operating expenses
171,994
190,731
792,537
779,637
Operating income (loss)
(24,132
)
(27,048
)
(35,011
)
42,101
Interest expense, net
2,270
1,190
10,946
5,667
Other expense (income), net
(1,669
)
4,378
805
5,332
Income (loss) before income taxes
(24,733
)
(32,616
)
(46,762
)
31,102
Income tax (benefit) expense
(2,186
)
(10,366
)
(2,060
)
1,492
Net income (loss)
$
(22,547
)
$
(22,250
)
$
(44,702
)
$
29,610
Basic net income (loss) per common
share
$
(0.35
)
$
(0.34
)
$
(0.69
)
$
0.46
Diluted net income (loss) per common
share
$
(0.35
)
$
(0.34
)
$
(0.69
)
$
0.45
Weighted average shares used in the
calculation of net income (loss) per common share:
Basic
64,773
64,583
64,688
64,977
Diluted
64,773
64,583
64,688
65,617
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
Consolidated Statements of Cash
Flows
(in thousands)
(unaudited)
Years Ended
July 2, 2023
July 3, 2022
Operating activities:
Net income (loss)
$
(44,702
)
$
29,610
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Goodwill and intangible asset
impairment
64,586
-
Depreciation and amortization
53,673
49,078
Amortization of deferred financing
costs
1,834
1,269
Deferred income taxes
(4,608
)
1,579
Bad debt expense
3,991
(411
)
Stock-based compensation
8,334
7,947
Other non-cash items
95
3,194
Changes in operating items:
Trade receivables
(597
)
(2,452
)
Inventories
57,591
(85,047
)
Prepaid and other
12,554
6,731
Accounts payable and accrued expenses
(38,623
)
(6,595
)
Other assets and liabilities
1,223
286
Net cash provided by operating
activities
115,351
5,189
Investing activities:
Acquisitions, net of cash acquired
(6,151
)
(21,280
)
Capital expenditures, net of non-cash
expenditures
(44,646
)
(66,408
)
Purchase of equity investments
(32
)
(2,000
)
Net cash used in investing activities
(50,829
)
(89,688
)
Financing activities:
Acquisition of treasury stock
(1,239
)
(38,171
)
Proceeds from exercise of employee stock
options
-
846
Proceeds from bank borrowings
395,900
125,000
Repayment of notes payable and bank
borrowings
(360,900
)
(145,000
)
Debt issuance cost
(2,941
)
(284
)
Net cash provided by (used in) financing
activities
30,820
(57,609
)
Net change in cash and cash
equivalents
95,342
(142,108
)
Cash and cash equivalents:
Beginning of period
31,465
173,573
End of period
$
126,807
$
31,465
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information – Category
Information
(dollars in thousands) (unaudited)
Three Months Ended
July 2, 2023
July 3, 2022
% Change
Net revenues:
Consumer Floral & Gifts
$
248,262
$
299,015
-17.0
%
BloomNet
29,996
38,490
-22.1
%
Gourmet Foods & Gift Baskets
120,669
148,442
-18.7
%
Corporate
223
44
406.8
%
Intercompany eliminations
(344
)
(99
)
-247.5
%
Total net revenues
$
398,806
$
485,892
-17.9
%
Gross profit:
Consumer Floral & Gifts
$
100,832
$
113,688
-11.3
%
40.6
%
38.0
%
BloomNet
12,793
15,237
-16.0
%
42.6
%
39.6
%
Gourmet Foods & Gift Baskets
33,862
34,418
-1.6
%
28.1
%
23.2
%
Corporate
375
340
10.3
%
168.2
%
772.7
%
Total gross profit
$
147,862
$
163,683
-9.7
%
37.1
%
33.7
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
30,703
$
26,450
16.1
%
BloomNet
7,350
9,985
-26.4
%
Gourmet Foods & Gift Baskets
(13,418
)
(23,674
)
43.3
%
Segment Contribution Margin Subtotal
24,635
12,761
93.0
%
Corporate (b)
(35,370
)
(26,982
)
-31.1
%
EBITDA (non-GAAP)
(10,735
)
(14,221
)
24.5
%
Add: Stock-based compensation
2,393
1,144
109.2
%
Add: Compensation charge related to NQ
Plan Investment Appreciation (Depreciation)
1,726
(3,694
)
146.7
%
Adjusted EBITDA (non-GAAP)
$
(6,616
)
$
(16,771
)
60.6
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information – Category
Information
(dollars in thousands) (unaudited)
Years Ended
July 2, 2023
Goodwill and Intangible
Impairment
Things Remembered Transaction
Costs
As Adjusted (non-GAAP) July 2,
2023
July 3, 2022
Vital Choice and Alice's Table
Transaction Costs
Litigation Settlement
As Adjusted (non-GAAP) July 3,
2022
% Change
Net revenues:
Consumer Floral & Gifts
$
920,510
$
-
$
-
$
920,510
$
1,059,570
$
-
$
-
$
1,059,570
-13.1
%
BloomNet
133,183
133,183
145,702
145,702
-8.6
%
Gourmet Foods & Gift Baskets
965,191
965,191
1,004,272
1,004,272
-3.9
%
Corporate
375
375
201
201
86.6
%
Intercompany eliminations
(1,406
)
(1,406
)
(1,860
)
(1,860
)
24.4
%
Total net revenues
$
2,017,853
$
-
$
-
$
2,017,853
$
2,207,885
$
-
$
-
$
2,207,885
-8.6
%
Gross profit:
Consumer Floral & Gifts
$
363,342
$
-
$
-
$
363,342
$
416,591
$
-
$
-
$
416,591
-12.8
%
39.5
%
39.5
%
39.3
%
39.3
%
BloomNet
56,879
56,879
61,562
61,562
-7.6
%
42.7
%
42.7
%
42.3
%
42.3
%
Gourmet Foods & Gift Baskets
336,764
336,764
343,163
343,163
-1.9
%
34.9
%
34.9
%
34.2
%
34.2
%
Corporate
541
541
422
422
28.2
%
144.3
%
144.3
%
210.0
%
210.0
%
Total gross profit
$
757,526
$
-
$
-
$
757,526
$
821,738
$
-
$
-
$
821,738
-7.8
%
37.5
%
-
-
37.5
%
37.2
%
-
-
37.2
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
95,535
$
-
$
-
$
95,535
$
104,319
$
-
$
-
$
104,319
-8.4
%
BloomNet
37,197
37,197
42,515
42,515
-12.5
%
Gourmet Foods & Gift Baskets
12,895
64,586
77,481
62,021
2,900
64,921
19.3
%
Segment Contribution Margin Subtotal
145,627
64,586
-
210,213
208,855
-
2,900
211,755
-0.7
%
Corporate (b)
(126,965
)
444
(126,521
)
(117,676
)
540
(117,136
)
-8.0
%
EBITDA (non-GAAP)
18,662
64,586
444
83,692
91,179
540
2,900
94,619
-11.5
%
Add: Stock-based compensation
8,334
8,334
7,947
7,947
4.9
%
Add: Compensation charge related to NQ
Plan Investment (Depreciation) Appreciation
(822
)
(822
)
(3,583
)
(3,583
)
77.1
%
Adjusted EBITDA (non-GAAP)
$
26,174
$
64,586
$
444
$
91,204
$
95,543
$
540
$
2,900
$
98,983
-7.9
%
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
Years Ended
July 2, 2023
July 3, 2022
July 2, 2023
July 3, 2022
Net income (loss)
$
(22,547
)
$
(22,250
)
$
(44,702
)
$
29,610
Adjustments to reconcile net income (loss)
to adjusted net income (loss) (non-GAAP)
Add: Transaction costs
-
-
444
540
Add: Litigation settlement
-
-
-
2,900
Add: Goodwill and Intangibles
Impairment
-
-
64,586
-
Deduct: Income tax effect on
adjustments
4,710
476
(6,899
)
(165
)
Adjusted net income (loss)
(non-GAAP)
$
(17,837
)
$
(21,774
)
$
13,429
$
32,885
Basic and diluted net income (loss) per
common share
Basic
$
(0.35
)
$
(0.34
)
$
(0.69
)
$
0.46
Diluted
$
(0.35
)
$
(0.34
)
$
(0.69
)
$
0.45
Basic and diluted adjusted net income
(loss) per common share (non-GAAP)
Basic
$
(0.28
)
$
(0.34
)
$
0.21
$
0.51
Diluted
$
(0.28
)
$
(0.34
)
$
0.21
$
0.50
Weighted average shares used in the
calculation of basic and diluted net income (loss) and adjusted net
income (loss) per common share
Basic
64,773
64,583
64,688
64,977
Diluted
64,773
64,583
64,688
65,617
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
Years Ended
July 2, 2023
July 3, 2022
July 2, 2023
July 3, 2022
Net income (loss)
$
(22,547
)
$
(22,250
)
$
(44,702
)
$
29,610
Add: Interest expense and other, net
601
5,568
11,751
10,999
Add: Depreciation and amortization
13,397
12,827
53,673
49,078
Add: Income tax expense (benefit)
(2,186
)
(10,366
)
(2,060
)
1,492
EBITDA
(10,735
)
(14,221
)
18,662
91,179
Add: Stock-based compensation
2,393
1,144
8,334
7,947
Add: Compensation charge related to NQ
plan investment appreciation (depreciation)
1,726
(3,694
)
(822
)
(3,583
)
Add: Goodwill and Intangible
Impairment
-
-
64,586
-
Add: Transaction costs
-
-
444
540
Add: Litigation settlement
-
-
-
2,900
Adjusted EBITDA
$
(6,616
)
$
(16,771
)
$
91,204
$
98,983
(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/20230831530339/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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