FTD Companies, Inc. (Nasdaq: FTD) (“FTD” or the “Company”), a
premier floral and gifting company, today announced financial
results for the second quarter and six months ended June 30,
2018.
Scott Levin, FTD’s Interim President and Chief Executive
Officer, commented, “Our results for the second quarter were
impacted by continued headwinds from lower than expected traffic
and conversion in our U.S. Consumer segment as well as the
resulting lower order volume that affected the Florist segment. Our
team is focused on stabilizing the Company’s performance. We
believe our recently announced corporate restructuring and cost
savings plan will help propel our organization forward, as we seek
to capitalize on opportunities to optimize our operations, drive
efficiency, and reduce costs. Our Board of Directors and management
team are committed to the previously announced review of strategic
alternatives to maximize stockholder value. At the same time, our
organization intends to execute on our strategic initiatives in
conjunction with our new corporate restructuring and cost savings
plan.”
Second Quarter ResultsConsolidated revenues
were $299.9 million for the second quarter of 2018, a decrease of
8.6% compared to $328.1 million for the second quarter of 2017,
primarily due to a decrease in revenues in the U.S. Consumer and
Florist segments. International segment revenues were relatively
stable in constant currency for the second quarter of 2018 compared
to the prior-year quarter. Foreign currency exchange rates had a
$1.8 million favorable impact on consolidated revenues during the
second quarter of 2018.
Net loss was $118.1 million for the second quarter of 2018,
compared to net income of $9.7 million for the second quarter of
2017. Net loss includes pre-tax non-cash impairment charges related
to goodwill, intangible assets, and other long-lived assets of
$136.9 million for the second quarter of 2018.
Adjusted EBITDA was $17.0 million, or 5.7% of consolidated
revenues, for the second quarter of 2018, compared to $31.2
million, or 9.5% of consolidated revenues, for the second quarter
of 2017. Adjusted EBITDA is a non-GAAP financial measure. Please
refer to the tables in this press release for a reconciliation of
all non-GAAP financial measures.
Six-Month ResultsConsolidated revenues were
$618.1 million for six months ended June 30, 2018, a decrease of
4.1% compared to $644.6 million for the first six months of 2017,
primarily due to a decrease in revenues in the U.S. Consumer and
Florist segments, partially offset by an increase in revenues in
the International segment. Foreign currency exchange rates had a
$7.9 million favorable impact on consolidated revenues for the six
months ended June 30, 2018.
Net loss was $124.7 million for the six months ended June 30,
2018, compared to net income of $18.7 million for the first six
months of 2017. Net loss includes pre-tax non-cash impairment
charges related to goodwill, intangible assets, and other
long-lived assets of $139.2 million for the 2018 period.
Adjusted EBITDA was $21.8 million, or 3.5% of consolidated
revenues, for the six months ended June 30, 2018, compared to $62.3
million, or 9.7% of consolidated revenues, for the first six months
of 2017.
Segment Results
U.S. Consumer Segment: U.S. Consumer segment
revenues for the second quarter of 2018 decreased 10.3% to $233.1
million, compared to $259.8 million for the second quarter of 2017.
This decline was primarily due to a 9.5% decrease in consumer
orders and a $0.56, or 1.0% decrease, in average order value to
$53.83, compared to the second quarter of 2017. Revenues decreased
17.8%, 9.0%, and 7.5% for the FTD.com, ProFlowers, and Gourmet
Foods businesses, respectively, for the second quarter of 2018
compared to the prior-year quarter. Partially offsetting these
decreases was an increase in revenues for Personal Creations of
3.0% for the second quarter 2018 compared to the prior-year
quarter. The U.S. Consumer segment operating income was
$6.5 million for the second quarter of 2018, compared to
operating income of $21.1 million for the prior-year quarter.
U.S. Consumer segment revenues for the six months ended June 30,
2018 decreased 6.6% to $456.4 million, compared to $488.5 million
for prior-year six months. This decline was primarily due to a 4.8%
decrease in consumer orders and a $1.04, or 1.9% decrease, in
average order value to $54.93, compared to the first six months of
2017. Revenues decreased 10.4%, 10.0%, and 4.5% in the ProFlowers,
FTD.com, and Gourmet Foods businesses, respectively, for the six
months ended June 30, 2018 compared to the first six months of
2017. Partially offsetting these decreases was an increase in
revenues for Personal Creations of 22.4% for the six months ended
June 30, 2018 compared to the six months ended June 30, 2017. The
U.S. Consumer segment operating loss was $1.8 million for the
six months ended June 30, 2018, compared to operating income of
$40.2 million for the first six months of 2017.
Florist Segment: Florist segment revenues for
the second quarter of 2018 decreased 9.5% to $39.9 million,
compared to $44.1 million for the second quarter of 2017. This
decrease was primarily due to lower order-related and online
services revenues and lower products revenues, primarily related to
a planned reduction in container offerings and related pricing and
a decline in technology system sales. Average revenues per member
decreased 2.7% to $3,873 for the second quarter of 2018, compared
to $3,981 for the prior-year quarter. Florist segment operating
income was $10.8 million, or 27.2% of segment revenues, for the
second quarter of 2018, compared to $12.2 million, or 27.8% of
segment revenues, for the second quarter of 2017.
Florist segment revenues for the six months ended June 30, 2018
decreased 7.1% to $84.1 million, compared to $90.6 million for the
first six months of 2017. This decrease was primarily due to lower
order-related and online services revenues and products revenues,
primarily related to a planned reduction in container offerings and
related pricing and a decline in technology system sales, partially
offset by an increase in fresh flower sales. Average revenues per
member decreased 0.8% to $8,055 for the six months ended June 30,
2018, compared to $8,122 for the first six months of 2017. Florist
segment operating income was $23.1 million, or 27.5% of segment
revenues, for the six months ended June 30, 2018, compared to $26.2
million, or 28.9% of segment revenues, for the first six months of
2017.
International Segment: International segment
revenues for the second quarter of 2018 increased 6.6% to $31.1
million, compared to $29.2 million for the second quarter of 2017.
On a constant currency basis, International segment revenues were
relatively stable. Consumer orders in the International segment
increased 3.4%, partially offset by a 5.2% decrease in average
order value, on a constant currency basis. International segment
operating income was $2.7 million, or 8.7% of segment revenues, for
the second quarter of 2018, compared to $3.1 million, or 10.5% of
segment revenues, for the prior-year quarter. On a constant
currency basis, International segment operating income decreased
$0.5 million, or 16.7%, for the second quarter of 2018 compared to
the prior-year quarter.
International segment revenues for the six months ended June 30,
2018 increased 14.8% to $86.0 million, compared to $74.9 million
for the first six months of 2017. On a constant currency basis,
International segment revenues increased 4.3%. Consumer orders
increased 7.5%, partially offset by a 4.0% decrease in average
order value, on a constant currency basis. International segment
operating income was $9.8 million, or 11.4% of segment revenues,
for the six months ended June 30, 2018, compared to $8.6 million,
or 11.5% of segment revenues, for the first six months of 2017. On
a constant currency basis, International segment operating income
increased $0.2 million, or 2.6%, for the six months ended June 30,
2018 compared to the first six months of 2017.
Balance Sheet, Cash Flow, and Financing
InitiativesNet cash used for operating activities was $1.6
million for the six months ended June 30, 2018, compared to cash
provided by operating activities of $19.6 million for the six
months ended June 30, 2017. Free Cash Flow for the six months ended
June 30, 2018 was negative $17.5 million, compared to Free Cash
Flow of $18.6 million generated in the first six months of 2017.
Free Cash Flow is a non-GAAP financial measure. Please refer to the
tables in this press release for a reconciliation of all non-GAAP
financial measures.
Cash and cash equivalents were $20.4 million as of June 30, 2018
compared to $29.5 million at December 31, 2017. At June 30, 2018,
the aggregate principal amount of the Company’s indebtedness
outstanding under its credit agreement was $195.0 million, before
reduction for deferred financing fees, compared to $192.0 million
at December 31, 2017. The credit agreement debt includes $130.0
million outstanding under a term loan and $65.0 million outstanding
under revolving loans. As previously announced, the strategic
alternatives expected to be considered as part of the Company’s
review process include potential financings. The Company also
intends to work proactively with its current lenders to address
issues under the credit agreement that may arise while the review
process is ongoing.
2018 Business OutlookFTD is reiterating the
outlook for the full year ending December 31, 2018 that it
previously provided on July 19, 2018. The annual outlook reflects
the Company’s year-to-date results, including lower than expected
traffic and conversion for the first and second quarters, as well
as the Company’s expectations for the rest of the year, including
anticipated continued traffic and conversion headwinds. The outlook
also includes the anticipated savings from the previously announced
corporate restructuring and cost savings plan. The Company
continues to expect the following for full-year 2018:
- Consolidated revenues of $1.03 billion to $1.04 billion;
- Adjusted EBITDA of approximately $37 million to $41
million; and
- Capital expenditures of $35 million to $40 million.
In connection with the outlook provided above, please note that
the seasonality of the Company’s business impacts the quarterly
pattern of its profitability and cash flows from operations.
The Company is not providing 2018 guidance for net income/(loss)
the GAAP measure most directly comparable to Adjusted EBITDA, and
similarly cannot provide a reconciliation between its forecasted
Adjusted EBITDA and net income/(loss) metrics without unreasonable
effort due to the unavailability of reliable estimates for certain
items, including restructuring and other exit costs, corporate
reorganization costs, transaction-related costs, impairments of
goodwill, intangible assets, and other long-lived assets, and
discrete tax items. These items may vary significantly between
periods and could materially impact future financial results.
Conference Call The Company will be hosting a
conference call today, August 8, 2018, at 5:00 p.m. ET. Live audio
of the call will be webcast and archived on the investor relations
section of the Company’s website at http://www.ftdcompanies.com. In
addition, you may dial 877-407-0784 to listen to the live
broadcast.
A telephonic playback and archived webcast will be available
through August 22, 2018. Participants can dial 844-512-2921 to hear
the playback. The passcode is 13681801.
About FTD Companies, Inc.FTD Companies,
Inc. is a premier floral and gifting company. Through our
diversified family of brands, we provide floral, specialty foods,
gifts, and related products to consumers primarily in the
United States and the United Kingdom. We also provide
floral products and services to retail florists and other retail
locations throughout these same geographies. FTD has been
delivering flowers since 1910, and the highly-recognized FTD® and
Interflora® brands are supported by the iconic Mercury
Man logo®, which is displayed in approximately 35,000 floral
shops in over 125 countries. In addition to FTD and
Interflora, our diversified portfolio of brands includes the
following trademarks: ProFlowers®, ProPlants®, Shari’s Berries®,
Personal Creations®, RedEnvelope®, Flying Flowers®, Ink Cards™,
Postagram™, Gifts.com™, and BloomThat™. FTD Companies,
Inc. is headquartered in Downers Grove, Ill. For
more information, please visit www.ftdcompanies.com.
Cautionary Information Regarding Forward-Looking
Statements This release contains certain forward-looking
statements within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995, as amended,
based on our current expectations, estimates, and projections about
our operations, industry, financial condition, performance, results
of operations, and liquidity. Statements containing words such as
“may,” “believe,” “anticipate,” “expect,” “intend,” “plan,”
“project,” “projections,” “business outlook,” “estimate,” or
similar expressions constitute forward-looking statements. These
forward-looking statements include, but are not limited to,
statements regarding the exploration of strategic alternatives, the
strategic and financial evaluation of the Company’s business, the
Company’s corporate restructuring and cost savings plan and other
strategies, and future financial performance, including 2018
financial outlooks discussed herein. Potential factors that could
affect these forward-looking statements include, among others,
uncertainties associated with being able to identify, evaluate, or
complete any strategic alternative or strategic transaction; the
impact of the announcement of the Company’s review of strategic
alternatives, as well as any strategic alternative or strategic
transaction that may be pursued, on the Company’s business,
including its financial and operating results and its employees,
suppliers, and customers; the Company’s ability to implement and
realize anticipated benefits from its corporate restructuring and
cost savings plan and other initiatives; the Company’s ability to
repay, refinance, or restructure its outstanding debt; and the
other factors disclosed in the Company’s most recent Annual Report
on Form 10-K and the Company’s other filings with
the Securities and Exchange Commission (www.sec.gov), as
updated from time to time in our subsequent filings with
the SEC, including, without limitation, information under the
captions “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and “Risk Factors.” Readers
are cautioned not to place undue reliance on these forward-looking
statements, which reflect the Company’s analysis only as of the
date hereof. Such forward-looking statements are not guarantees of
future performance or results and involve risks and uncertainties
that may cause actual performance and results to differ materially
from those predicted. Except as required by law, we undertake no
obligation to publicly release the results of any revision to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Non-GAAP MeasuresTo supplement the Company’s
consolidated financial statements presented in accordance with
generally accepted accounting principles (“GAAP”), the Company uses
Adjusted EBITDA as a measure of certain components of financial
performance. The Company’s definition of Adjusted EBITDA, as set
forth below, may be modified from time to time.
Management believes that Adjusted EBITDA is an important measure
of operating performance because it allows for a period-to-period
comparison of the Company’s operating performance by removing the
impact of the Company’s capital structure (interest expense on
outstanding debt), asset base (depreciation, amortization, and
impairment charges), tax consequences, certain other non-operating
items, and stock-based compensation. The Company further emphasizes
the importance of Adjusted EBITDA as an operating performance
measure by utilizing the Adjusted EBITDA measure as a basis for
determining certain incentive compensation targets for certain
members of the Company’s management. The Adjusted EBITDA measure
also is used as a performance measure under the Company’s senior
secured credit facility and includes adjustments such as the items
defined above and other further adjustments, which are defined in
the senior secured credit facility.
Management believes that presenting this non-GAAP financial
measure provides additional information to facilitate comparison of
the Company’s historical operating results and trends in its
underlying operating results and provides additional transparency
on how the Company evaluates its businesses.
In addition to the use of this non-GAAP measure by management
for the purposes outlined above, the Company believes Adjusted
EBITDA is a measure widely used by securities analysts, investors,
and others to evaluate the financial performance of the Company and
its competitors.
Adjusted EBITDA is not determined in accordance with GAAP and
should be considered in addition to, not as a substitute for, or
superior to financial measures determined in accordance with GAAP.
A limitation associated with the use of Adjusted EBITDA is that it
does not reflect depreciation and amortization expense for various
long-lived assets, impairment charges, interest expense, income
taxes, and other items that have been and will be incurred. Each of
these items should also be considered in the overall evaluation of
the Company’s results. In addition, Adjusted EBITDA does not
reflect capital expenditures and other investing activities. An
additional limitation associated with Adjusted EBITDA is that the
measure does not include stock-based compensation expenses related
to the Company’s workforce. A further limitation associated with
the use of this non-GAAP financial measure is that it does not
reflect expenses or gains that are not considered reflective of the
Company’s core operations. Management compensates for these
limitations by providing the relevant disclosure of its
depreciation and amortization, impairment charges, interest and
income tax expenses, capital expenditures, stock-based
compensation, and other items within its financial press releases
and SEC filings, all of which should be considered when evaluating
the Company’s performance.
A further limitation associated with the use of this measure is
that the term “Adjusted EBITDA” does not have a standardized
meaning. Therefore, other companies may use the same or a similarly
named measure but exclude different items or use different
computations, which may not provide investors a comparable view of
the Company’s performance in relation to other companies.
Management compensates for this limitation by presenting the most
comparable GAAP measure: net income/(loss), directly ahead of
Adjusted EBITDA; within this and other financial press releases and
by providing reconciliations that show and describe the adjustments
made. In addition, many of the adjustments to the Company’s GAAP
financial measures reflect the exclusion of items that are
recurring in nature and will be reflected in the Company’s
financial results for the foreseeable future.
Definitions
(1) Segment operating income/(loss). The
Company’s chief operating decision maker uses segment operating
income/(loss) to evaluate the performance of the business segments
and to make decisions about allocating resources among segments.
Segment operating income/(loss) is operating income/(loss)
excluding depreciation, amortization, impairment of goodwill,
intangible assets, and other long-lived assets, litigation and
dispute settlement charges and gains, transaction-related costs,
restructuring and other exit costs, and corporate reorganization
costs. In addition, stock-based and incentive compensation and
general corporate expenses are not allocated to the segments.
Segment operating income/(loss) is prior to intersegment
eliminations and excludes other income/(expense), net. Please refer
to the tables in this press release for a reconciliation of segment
operating income/(loss) to net income/(loss).
(2) Consumer orders. The Company monitors the
number of consumer orders for floral, gift, and related products
during a given period. Consumer orders are individual units
delivered during the period that were originated through our
consumer websites, associated mobile sites and applications, and
various telephone numbers. The number of consumer orders is not
adjusted for non-delivered orders that are refunded on or after the
scheduled delivery date. Orders originating with a florist or other
retail location for delivery to consumers are not included as part
of this number.
(3) Average order value. The Company monitors
the average value for consumer orders delivered in a given period,
which is referred to as the average order value. Average order
value represents the average amount received for consumer orders
delivered during a period. The average order value of consumer
orders within the U.S. Consumer and International segments is
tracked in their local currency, the U.S. Dollar for the U.S.
Consumer segment and the British Pound for the International
segment. The local currency amounts received for the International
segment are then translated into U.S. dollars at the average
currency exchange rate for the period. Average order value includes
merchandise revenues and shipping or service fees paid by the
consumer, less discounts and refunds (net of refund-related fees
charged to floral network members).
(4) Average revenues per member. The Company
monitors average revenues per member for floral network members in
the Florist segment. Average revenues per member represents the
average revenues earned from a member of the Company’s floral
network during a period. Revenues include services revenues and
products revenues, but exclude revenues from sales to non-members.
Floral network members include retail florists and other
non-florist retail locations that offer floral and gifting
solutions. Average revenues per member is calculated by dividing
Florist segment revenues for the period, excluding sales to
non-members, by the average number of floral network members for
the period.
(5) Adjusted earnings before interest, taxes,
depreciation, and amortization (“Adjusted EBITDA”). The
Company defines Adjusted EBITDA as net income/(loss) before net
interest expense, provision for/(benefit from) income taxes,
depreciation, amortization, impairment of goodwill, intangible
assets, and other long-lived assets, stock-based
compensation, transaction-related costs, litigation and dispute
settlement charges and gains, restructuring and other exit costs,
and corporate reorganization costs.
Litigation and dispute settlement charges and gains include
estimated losses for which the Company has established a reserve,
as well as actual settlements, judgments, fines, penalties,
assessments or other resolutions against, or in favor of, the
Company related to litigation, arbitration, investigations,
disputes, or similar matters. Insurance recoveries received by the
Company related to such matters are also included in these
adjustments.
Transaction-related costs are certain expense items resulting
from actual or potential transactions such as business
combinations, mergers, acquisitions, dispositions, spin-offs,
financing transactions, and other strategic transactions,
including, without limitation, (i) transaction-related bonuses and
(ii) expenses for advisors and representatives such as investment
bankers, consultants, attorneys, and accounting firms.
Transaction-related costs may also include, without limitation,
transition and integration costs such as retention bonuses and
acquisition-related milestone payments to acquired employees, in
addition to consulting, compensation, and other incremental costs
associated with integration projects.
Corporate reorganization costs are costs, other than
restructuring and other exit costs, associated with our corporate
restructuring and cost savings plan such as retention bonuses for
key employees, travel expenses related to transition of
responsibilities between locations, and other similar
costs.
(6) Free Cash Flow. The Company defines Free
Cash Flow as net cash provided by or used for operating activities
less capital expenditures, plus cash paid for transaction-related
costs, cash paid or received for litigation and dispute settlement
charges or gains, cash paid for restructuring and other exit costs,
and cash paid for corporate reorganization costs.
|
|
|
FTD COMPANIES, INC. |
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Consumer segment |
|
$ |
233,082 |
|
|
$ |
259,804 |
|
|
$ |
456,443 |
|
|
$ |
488,476 |
|
|
|
Florist
segment |
|
|
39,916 |
|
|
|
44,090 |
|
|
|
84,132 |
|
|
90,596 |
|
|
|
International segment |
|
|
31,114 |
|
|
|
29,201 |
|
|
|
86,029 |
|
|
74,938 |
|
|
|
Intersegment eliminations |
|
|
(4,191 |
) |
|
|
(4,949 |
) |
|
|
(8,513 |
) |
|
|
(9,371 |
) |
|
|
Total
revenues |
|
|
299,921 |
|
|
|
328,146 |
|
|
|
618,091 |
|
|
|
644,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues |
|
|
194,482 |
|
|
|
203,179 |
|
|
|
405,229 |
|
|
399,553 |
|
|
|
Sales and
marketing |
|
|
71,067 |
|
|
|
76,224 |
|
|
|
153,349 |
|
|
145,120 |
|
|
|
General
and administrative |
|
|
23,133 |
|
|
|
27,039 |
|
|
|
48,834 |
|
|
55,794 |
|
|
|
Amortization of intangible assets |
|
|
1,495 |
|
|
|
3,819 |
|
|
|
2,997 |
|
|
7,639 |
|
|
|
Restructuring and other exit costs |
|
|
— |
|
|
|
136 |
|
|
|
— |
|
|
944 |
|
|
|
Impairment of goodwill, intangible assets, and other long-lived
assets |
|
|
136,861 |
|
|
|
— |
|
|
|
139,216 |
|
|
|
— |
|
|
|
Total
operating expenses |
|
|
427,038 |
|
|
|
310,397 |
|
|
|
749,625 |
|
|
|
609,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income/(loss) |
|
|
(127,117 |
) |
|
|
17,749 |
|
|
|
(131,534 |
) |
|
|
35,589 |
|
|
|
Interest
expense, net |
|
|
(4,389 |
) |
|
|
(2,440 |
) |
|
|
(6,875 |
) |
|
(4,713 |
) |
|
|
Other
income, net |
|
|
160 |
|
|
|
223 |
|
|
|
136 |
|
|
|
198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) before income taxes |
|
|
(131,346 |
) |
|
|
15,532 |
|
|
|
(138,273 |
) |
|
|
31,074 |
|
|
|
Provision for/(benefit from) income taxes |
|
|
(13,261 |
) |
|
|
5,816 |
|
|
|
(13,592 |
) |
|
|
12,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
$ |
(118,085 |
) |
|
$ |
9,716 |
|
|
$ |
(124,681 |
) |
|
$ |
18,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings/(loss) per share |
|
$ |
(4.25 |
) |
|
$ |
0.35 |
|
|
$ |
(4.49 |
) |
|
$ |
0.67 |
|
|
|
Diluted
earnings/(loss) per share |
|
$ |
(4.25 |
) |
|
$ |
0.35 |
|
|
$ |
(4.49 |
) |
|
$ |
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
27,785 |
|
|
|
27,452 |
|
|
|
27,749 |
|
|
|
27,415 |
|
|
|
Diluted |
|
|
27,785 |
|
|
|
27,452 |
|
|
|
27,749 |
|
|
|
27,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTD COMPANIES, INC. |
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(in thousands) |
|
|
|
|
June 30,
2018 |
|
December 31, 2017 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
20,436 |
|
$ |
29,496 |
|
Accounts
receivable, net |
|
|
21,319 |
|
|
26,028 |
|
Inventories |
|
|
24,816 |
|
|
25,356 |
|
Property
and equipment, net |
|
|
44,779 |
|
|
33,880 |
|
Intangible assets, net |
|
|
104,958 |
|
|
181,965 |
|
Goodwill |
|
|
211,978 |
|
|
277,041 |
|
Other
assets |
|
|
22,016 |
|
|
36,559 |
|
Total
assets |
|
$ |
450,302 |
|
$ |
610,325 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable and accrued liabilities |
|
$ |
140,576 |
|
$ |
161,799 |
|
Debt |
|
|
189,690 |
|
|
189,666 |
|
Deferred
tax liabilities, net |
|
|
9,311 |
|
|
30,854 |
|
Other
liabilities |
|
|
17,761 |
|
|
13,482 |
|
Total
liabilities |
|
|
357,338 |
|
|
395,801 |
|
Total
equity |
|
|
92,964 |
|
|
214,524 |
|
Total
liabilities and equity |
|
$ |
450,302 |
|
$ |
610,325 |
|
|
FTD COMPANIES, INC. |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Cash
flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) |
$ |
(118,085 |
) |
|
$ |
9,716 |
|
|
$ |
(124,681 |
) |
|
$ |
18,739 |
|
|
Adjustments to
reconcile net income/(loss) to net cash provided by/(used for)
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
4,118 |
|
|
|
9,285 |
|
|
|
8,220 |
|
|
|
18,583 |
|
|
Impairment of goodwill, intangible assets, and other long-lived
assets |
|
136,861 |
|
|
|
— |
|
|
|
139,216 |
|
|
|
— |
|
|
Stock-based compensation |
|
2,604 |
|
|
|
3,529 |
|
|
|
5,410 |
|
|
|
5,870 |
|
|
Provision
for doubtful accounts receivable |
|
834 |
|
|
|
429 |
|
|
|
1,067 |
|
|
|
779 |
|
|
Amortization of deferred financing fees |
|
715 |
|
|
|
340 |
|
|
|
1,058 |
|
|
|
680 |
|
|
Deferred
taxes, net |
|
(21,815 |
) |
|
|
(1,394 |
) |
|
|
(20,432 |
) |
|
|
1,758 |
|
|
Other,
net |
|
(7 |
) |
|
|
(52 |
) |
|
|
92 |
|
|
|
(69 |
) |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable, net |
|
7,507 |
|
|
|
7,828 |
|
|
|
3,585 |
|
|
|
3,887 |
|
|
Inventories |
|
3,061 |
|
|
|
2,169 |
|
|
|
529 |
|
|
|
170 |
|
|
Prepaid
expenses and other assets |
|
1,406 |
|
|
|
1,908 |
|
|
|
3,492 |
|
|
|
5,049 |
|
|
Accounts
payable and accrued liabilities |
|
(23,228 |
) |
|
|
(35,917 |
) |
|
|
(23,087 |
) |
|
|
(36,060 |
) |
|
Income
taxes receivable or payable |
|
5,675 |
|
|
|
(1,174 |
) |
|
|
2,514 |
|
|
|
66 |
|
|
Other
liabilities |
|
(188 |
) |
|
|
(1,274 |
) |
|
|
1,431 |
|
|
|
157 |
|
|
Net cash
provided by/(used for) operating activities |
|
(542 |
) |
|
|
(4,607 |
) |
|
|
(1,586 |
) |
|
|
19,609 |
|
|
Cash
flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
of property and equipment |
|
(9,221 |
) |
|
|
(3,174 |
) |
|
|
(16,280 |
) |
|
|
(6,370 |
) |
|
Proceeds
from life insurance |
|
10,003 |
|
|
|
— |
|
|
|
10,003 |
|
|
|
— |
|
|
Net cash
provided by/(used for) investing activities |
|
782 |
|
|
|
(3,174 |
) |
|
|
(6,277 |
) |
|
|
(6,370 |
) |
|
Cash
flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from revolving lines of credit |
|
95,000 |
|
|
|
55,000 |
|
|
|
185,000 |
|
|
|
70,000 |
|
|
Payments
on term debt and revolving lines of credit |
|
(97,000 |
) |
|
|
(20,000 |
) |
|
|
(182,000 |
) |
|
|
(85,000 |
) |
|
Purchases
from employee stock plan |
|
412 |
|
|
|
1,042 |
|
|
|
412 |
|
|
|
1,042 |
|
|
Payments
for debt financing fees |
|
(3,226 |
) |
|
|
— |
|
|
|
(4,034 |
) |
|
|
— |
|
|
Repurchases of common stock withheld for taxes |
|
(9 |
) |
|
|
(25 |
) |
|
|
(460 |
) |
|
|
(1,969 |
) |
|
Net cash
provided by/(used for) financing activities |
|
(4,823 |
) |
|
|
36,017 |
|
|
|
(1,082 |
) |
|
|
(15,927 |
) |
|
Effect
of foreign currency exchange rate changes on cash and cash
equivalents |
|
(557 |
) |
|
|
676 |
|
|
|
(115 |
) |
|
|
1,042 |
|
|
Change
in cash and cash equivalents |
|
(5,140 |
) |
|
|
28,912 |
|
|
|
(9,060 |
) |
|
|
(1,646 |
) |
|
Cash and
cash equivalents, beginning of period |
|
25,576 |
|
|
|
50,444 |
|
|
|
29,496 |
|
|
|
81,002 |
|
|
Cash and
cash equivalents, end of period |
$ |
20,436 |
|
|
$ |
79,356 |
|
|
$ |
20,436 |
|
|
$ |
79,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid
for interest |
$ |
3,494 |
|
|
$ |
2,170 |
|
|
$ |
5,733 |
|
|
$ |
4,074 |
|
|
Cash paid
for income taxes, net |
|
3,159 |
|
|
|
8,485 |
|
|
|
3,781 |
|
|
|
10,517 |
|
|
Cash paid
for restructuring and other exit costs |
|
44 |
|
|
|
615 |
|
|
|
340 |
|
|
|
3,233 |
|
|
Cash paid
for litigation and dispute settlement charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25 |
|
|
Cash paid
for transaction and integration costs |
|
67 |
|
|
|
1,369 |
|
|
|
67 |
|
|
|
2,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTD COMPANIES, INC. |
UNAUDITED SEGMENT INFORMATION |
(in thousands, except average order values,
average revenues per member, and average currency
exchange rates) |
|
|
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
|
2018 |
|
2017 |
|
2018 |
|
|
2017 |
|
U.S. Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
revenues |
|
$ |
233,082 |
|
$ |
259,804 |
|
$ |
456,443 |
|
|
$ |
488,476 |
|
Segment
operating income/(loss) (1) |
|
$ |
6,474 |
|
$ |
21,120 |
|
$ |
(1,761 |
) |
|
$ |
40,227 |
|
Consumer
orders (2) |
|
|
4,214 |
|
|
4,654 |
|
|
8,092 |
|
|
|
8,501 |
|
Average
order value (3) |
|
$ |
53.83 |
|
$ |
54.39 |
|
$ |
54.93 |
|
|
$ |
55.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Florist: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
revenues |
|
$ |
39,916 |
|
$ |
44,090 |
|
$ |
84,132 |
|
|
$ |
90,596 |
|
Segment
operating income (1) |
|
$ |
10,849 |
|
$ |
12,248 |
|
$ |
23,115 |
|
|
$ |
26,202 |
|
Average
revenues per member (4) |
|
$ |
3,873 |
|
$ |
3,981 |
|
$ |
8,055 |
|
|
$ |
8,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
|
|
|
|
|
|
|
In
USD: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
revenues |
|
$ |
31,114 |
|
$ |
29,201 |
|
$ |
86,029 |
|
|
$ |
74,938 |
|
Segment
operating income (1) |
|
$ |
2,710 |
|
$ |
3,066 |
|
$ |
9,765 |
|
|
$ |
8,598 |
|
Consumer
orders (2) |
|
|
550 |
|
|
532 |
|
|
1,477 |
|
|
|
1,374 |
|
Average
order value (3) |
|
$ |
45.89 |
|
$ |
45.57 |
|
$ |
47.45 |
|
|
$ |
44.91 |
|
In
GBP: |
|
Segment
revenues |
|
£ |
22,880 |
|
£ |
22,798 |
|
£ |
62,264 |
|
|
£ |
59,679 |
|
Average
order value (3) |
|
£ |
33.77 |
|
£ |
35.61 |
|
£ |
34.36 |
|
|
£ |
35.79 |
|
Average
currency exchange rate: GBP to USD |
|
|
1.36 |
|
|
1.28 |
|
|
1.38 |
|
|
|
1.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTD COMPANIES, INC. |
|
UNAUDITED RECONCILIATIONS |
|
(in thousands) |
|
The following tables contain reconciliations of
Adjusted EBITDA and Free Cash Flow to financial measures reported
in accordance with Generally Accepted Accounting Principles
("GAAP"). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF SEGMENT OPERATING INCOME TO
NET INCOME/(LOSS) AND NET INCOME/(LOSS) TO
ADJUSTED EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Segment Operating Income/(loss)
(1) : |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Consumer |
|
$ |
6,474 |
|
|
$ |
21,120 |
|
|
$ |
(1,761 |
) |
|
$ |
40,227 |
|
|
Florist |
|
|
10,849 |
|
|
|
12,248 |
|
|
|
23,115 |
|
|
|
26,202 |
|
|
International |
|
|
2,710 |
|
|
|
3,066 |
|
|
|
9,765 |
|
|
|
8,598 |
|
|
Unallocated expenses |
|
|
(6,171 |
) |
|
|
(9,400 |
) |
|
|
(15,217 |
) |
|
|
(20,855 |
) |
|
Impairment of goodwill, intangible assets, and other long-lived
assets |
|
|
(136,861 |
) |
|
|
— |
|
|
|
(139,216 |
) |
|
|
— |
|
|
Depreciation and amortization |
|
|
(4,118 |
) |
|
|
(9,285 |
) |
|
|
(8,220 |
) |
|
|
(18,583 |
) |
|
Operating
income/(loss) |
|
|
(127,117 |
) |
|
|
17,749 |
|
|
|
(131,534 |
) |
|
|
35,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
(4,389 |
) |
|
|
(2,440 |
) |
|
|
(6,875 |
) |
|
|
(4,713 |
) |
|
Other
income, net |
|
|
160 |
|
|
|
223 |
|
|
|
136 |
|
|
|
198 |
|
|
(Provision for)/benefit from income taxes |
|
|
13,261 |
|
|
|
(5,816 |
) |
|
|
13,592 |
|
|
|
(12,335 |
) |
|
Net income/(loss) (GAAP Basis) |
|
$ |
(118,085 |
) |
|
$ |
9,716 |
|
|
$ |
(124,681 |
) |
|
$ |
18,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) (GAAP Basis) |
|
$ |
(118,085 |
) |
|
$ |
9,716 |
|
|
$ |
(124,681 |
) |
|
$ |
18,739 |
|
|
Interest
expense, net |
|
|
4,389 |
|
|
|
2,440 |
|
|
|
6,875 |
|
|
|
4,713 |
|
|
Provision for/(benefit from) income taxes |
|
|
(13,261 |
) |
|
|
5,816 |
|
|
|
(13,592 |
) |
|
|
12,335 |
|
|
Depreciation and amortization |
|
|
4,118 |
|
|
|
9,285 |
|
|
|
8,220 |
|
|
|
18,583 |
|
|
Stock-based compensation |
|
|
2,604 |
|
|
|
3,529 |
|
|
|
5,410 |
|
|
|
5,870 |
|
|
Transaction and integration costs |
|
|
200 |
|
|
|
269 |
|
|
|
200 |
|
|
|
1,070 |
|
|
Litigation and dispute settlement charges |
|
|
148 |
|
|
|
— |
|
|
|
188 |
|
|
|
— |
|
|
Impairment of goodwill, intangible assets, and other long-lived
assets |
|
|
136,861 |
|
|
|
— |
|
|
|
139,216 |
|
|
|
— |
|
|
Restructuring and other exit costs |
|
|
— |
|
|
|
136 |
|
|
|
— |
|
|
|
944 |
|
|
Adjusted EBITDA (5) |
|
$ |
16,974 |
|
|
$ |
31,191 |
|
|
$ |
21,836 |
|
|
$ |
62,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET CASH PROVIDED BY/(USED
FOR) OPERATING ACTIVITIES TO FREE CASH
FLOW |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by/(used for) operating activities (GAAP
Basis) |
|
$ |
(542 |
) |
|
$ |
(4,607 |
) |
|
$ |
(1,586 |
) |
|
$ |
19,609 |
|
|
Capital
expenditures |
|
|
(9,221 |
) |
|
|
(3,174 |
) |
|
|
(16,280 |
) |
|
|
(6,370 |
) |
|
Cash paid
for transaction and integration costs |
|
|
67 |
|
|
|
1,369 |
|
|
|
67 |
|
|
|
2,056 |
|
|
Cash paid
for litigation and dispute settlement charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25 |
|
|
Cash paid
for restructuring and other exit costs |
|
|
44 |
|
|
|
615 |
|
|
|
340 |
|
|
|
3,233 |
|
|
Free Cash Flow (6) |
|
$ |
(9,652 |
) |
|
$ |
(5,797 |
) |
|
$ |
(17,459 |
) |
|
$ |
18,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ContactsInvestor Relations: Katie
Turner646-277-1228ir@ftdi.com
Grafico Azioni FTD Companies, Inc. (NASDAQ:FTD)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni FTD Companies, Inc. (NASDAQ:FTD)
Storico
Da Lug 2023 a Lug 2024