Full Year Highlights:
Fourth Quarter Highlights:
(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 (“Adjusted”) results to applicable GAAP results.)
JERICHO, N.Y.--(BUSINESS WIRE)--September 1, 2022--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 2022 fourth quarter and full year ended July 3, 2022.
Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said, “We finished our fiscal year 2022 with revenues essentially flat in our fourth quarter and full year revenues up 4.0 percent compared with the prior year, and up more than 75 percent compared with our fiscal 2019, prior to the pandemic. Our growth for the year illustrates our ability to retain and build on the gains we achieved over the past two years despite macroeconomic uncertainty and changes in consumer behavior. This reflects the healthy growth we have seen in our customer file combined with our expanded product offering and our ever-increasing focus on engaging with our customers through a combination of highly relevant content and unique experiences.
“Inflationary cost increases continued to pose challenges for us in both the fourth quarter and full year. The unprecedented, rapid rise in costs impacted our gross margins and operating expenses – including labor, shipping, commodities, and digital marketing. As a result, our bottom-line results for both the fourth quarter and the full year came in below our expectations.”
McCann said that the Company is focused on addressing those cost issues that are within its control by leveraging its balance sheet to invest in its operating platform, including ongoing investments to automate warehouse and distribution facilities, optimize outbound shipping operations and buy and build inventory early. “We anticipate that the combination of our investments, along with strategic pricing programs and moderation in cost inputs, will enable us to gradually improve our gross margins and our bottom-line results during the latter half of our current fiscal year.”
McCann noted that, during the fourth quarter and throughout the fiscal year, the Company continued to execute on its initiatives to “build a community with our customers. Our expanding range of communication channels feature relevant content, like our weekly Celebrations Pulse Newsletter, and interactive engagement opportunities, like our Alice’s Table® events. Taken together with our expanded product offerings, these initiatives helped us attract more than 1.5 million new customers during the fourth quarter and more than 5.0 million for the year. In addition, membership in our Celebrations Passport® loyalty program continued to grow at a double-digit rate for the year. We believe the significant size and robust growth of our customer file and our Celebrations Passport loyalty program over the past several years, along with our expanded product offerings, positions us well to help inspire customers to give more, connect more, and build more and better relationships and continue to grow our business over the long term.”
Fiscal 2022 Fourth Quarter Results:
For the fourth quarter of 2022, total net revenues were $485.9 million, down 0.2 percent compared with $487.0 million in the prior year period. Excluding contributions from Vital Choice®, which the Company acquired in October
of 2021, total revenue for the quarter was down 1.5 percent, compared with the prior year period. Revenues for the quarter increased 87.3 percent compared with total revenues of $259.4 million in the fourth quarter of fiscal 2019, prior to the
pandemic.
Gross profit margin for the quarter was 33.7 percent, down 700 basis points, compared with 40.7 percent in the prior year period, primarily reflecting significantly increased costs for labor, shipping, and commodities as well as write downs of perishable inventory. Operating expenses as a percent of total revenues was 39.2 percent, representing an increase of 170 basis points, compared with 37.5 percent in the prior year period. This primarily reflects higher digital marketing spend as well as higher depreciation, offset in part by lower incentive compensation and the performance of our non-qualified deferred compensation plan, compared with the prior year period.
As a result, Adjusted EBITDA1 loss was $16.8 million, compared with Adjusted EBITDA1 of $30.2 million in the prior year period, primarily reflecting significantly higher year-over-year costs for labor, shipping, commodities, and digital marketing. Net Loss was $22.3 million, or ($0.34) per share, compared with net income of $13.3 million, or $0.20 per diluted share, in the prior year period. Adjusted Net Loss1 was $21.8 million, or ($0.34) per share, compared with Adjusted Net Income1 of $13.3, or $0.20 per diluted share in the prior year period.
Fiscal 2022 Full Year Results:
Total net revenues for the full year increased 4.0 percent to $2.21 billion, compared with $2.12 billion in the prior year. This increase reflected growth across the Company’s three business segments, and includes the
contributions from Vital Choice and Personalization Mall®, which were acquired in October 2021 and August 2020, respectively. On a pro-forma basis, total net revenues grew 2.5 percent compared with the prior year. Total net revenues
grew 76.8 percent compared with total net revenues of $1.25 billion in fiscal 2019, prior to the pandemic.
Gross profit margin for the year was 37.2 percent, down 500 basis points, compared with 42.2 percent in the prior year. This primarily reflected significantly increased costs for labor, shipping, commodities and the write down of perishable inventories. Operating expense as a percent of total revenues was 35.3 percent, representing an increase of 10 basis points, compared with 35.2 percent in the prior year. As a result, Adjusted EBITDA1 was $99.0 million, compared with $213.1 million in the prior year. Net Income was $29.6 million, or $0.45 per diluted share, compared with Net Income of $118.7 million, or $1.78 per diluted share, in the prior year period. Adjusted Net Income1 was $32.9 million, or $0.50 per diluted share, compared with $122.6 million, or $1.84 per diluted share, in the prior year.
SEGMENT RESULTS:
The Company provides fiscal 2022 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:
COMPANY GUIDANCE
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 these limitations when using this measure 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®, 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 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 fiscal year 2023 first quarter, the latter half of the current fiscal year and the full fiscal year; the
impact of the Covid-19 pandemic on the Company; its ability to leverage its operating platform and reduce operating expense ratio; its ability to successfully integrate acquired businesses and assets; its ability to successfully execute its
strategic initiatives; its ability to cost effectively acquire and retain customers; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its
ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to reduce promotional activities and achieve more efficient marketing programs; and general consumer
sentiment and industry and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether because
of new information, future events or otherwise, made in this release or in any of its SEC filings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed
description of these and other risk factors, refer to the Company’s SEC filings, including the Company’s Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.
Conference Call:
The Company will conduct a conference call to discuss the above details and attached financial results today, Thursday, September 1, at 8:00 a.m. (ET). The conference call will be webcast from the Investor Relations section of the Company’s
website at www.1800flowersinc.com. A recording of the call will be posted on the Investor Relations 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 8, 2022, at: (US) 1-877-344-7529; (Canada) 855-669-9658; (International) 1-412-317-0088; enter conference ID #: 4688547. If you have any questions regarding the above information, please contact the Investor
Relations office at invest@1800flowers.com.
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 3, 2022 |
June 27, 2021 |
|||||||
|
(unaudited) |
|
|
|||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
$ |
31,465 |
$ |
173,573 |
||||
Trade receivables, net |
|
23,812 |
|
20,831 |
||||
Inventories, net |
|
247,563 |
|
153,863 |
||||
Prepaid and other |
|
45,398 |
|
51,792 |
||||
Total current assets |
|
348,238 |
|
400,059 |
||||
|
|
|
|
|
||||
Property, plant and equipment, net |
|
236,481 |
|
215,287 |
||||
Operating lease right-of-use assets |
|
129,390 |
|
86,230 |
||||
Goodwill |
|
213,287 |
|
208,150 |
||||
Other intangibles, net |
|
145,568 |
|
139,048 |
||||
Other assets |
|
21,927 |
|
27,905 |
||||
Total assets |
$ |
1,094,891 |
$ |
1,076,679 |
||||
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
$ |
57,386 |
$ |
57,434 |
||||
Accrued expenses |
|
175,392 |
|
178,512 |
||||
Current maturities of long-term debt |
|
20,000 |
|
20,000 |
||||
Current portion of long-term operating lease liabilities |
|
12,919 |
|
9,992 |
||||
Total current liabilities |
|
265,697 |
|
265,938 |
||||
|
|
|
|
|
||||
Long-term debt, net |
|
142,497 |
|
161,512 |
||||
Long-term operating lease liabilities |
|
123,662 |
|
79,375 |
||||
Deferred tax liabilities |
|
35,742 |
|
34,162 |
||||
Other liabilities |
|
17,884 |
|
26,622 |
||||
Total liabilities |
|
585,482 |
|
567,609 |
||||
Total stockholders’ equity |
|
509,409 |
|
509,070 |
||||
Total liabilities and stockholders’ equity |
$ |
1,094,891 |
$ |
1,076,679 |
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 3, 2022 |
|
|
June 27, 2021 |
|
|
July 3, 2022 |
|
|
June 27, 2021 |
|
||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E-Commerce |
|
$ |
433,978 |
|
|
$ |
438,109 |
|
|
$ |
1,934,648 |
|
|
$ |
1,879,550 |
|
Other |
|
|
51,914 |
|
|
|
48,874 |
|
|
|
273,237 |
|
|
|
242,695 |
|
Total net revenues |
|
|
485,892 |
|
|
|
486,983 |
|
|
|
2,207,885 |
|
|
|
2,122,245 |
|
Cost of revenues |
|
|
322,209 |
|
|
|
288,979 |
|
|
|
1,386,147 |
|
|
|
1,225,816 |
|
Gross profit |
|
|
163,683 |
|
|
|
198,004 |
|
|
|
821,738 |
|
|
|
896,429 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Marketing and sales |
|
|
138,866 |
|
|
|
130,364 |
|
|
|
571,661 |
|
|
|
533,268 |
|
Technology and development |
|
|
15,192 |
|
|
|
14,491 |
|
|
|
56,561 |
|
|
|
54,428 |
|
General and administrative |
|
|
23,846 |
|
|
|
27,176 |
|
|
|
102,337 |
|
|
|
117,136 |
|
Depreciation and amortization |
|
|
12,827 |
|
|
|
10,718 |
|
|
|
49,078 |
|
|
|
42,510 |
|
Total operating expenses |
|
|
190,731 |
|
|
|
182,749 |
|
|
|
779,637 |
|
|
|
747,342 |
|
Operating income (loss) |
|
|
(27,048) |
|
|
|
15,255 |
|
|
|
42,101 |
|
|
|
149,087 |
|
Interest expense, net |
|
|
1,190 |
|
|
|
1,340 |
|
|
|
5,667 |
|
|
|
5,860 |
|
Other (income) expense, net |
|
|
4,378 |
|
|
|
(1,687 |
) |
|
|
5,332 |
|
|
|
(5,888 |
) |
Income (loss) before income taxes |
|
|
(32,616) |
|
|
|
15,602 |
|
|
|
31,102 |
|
|
|
149,115 |
|
Income tax expense (benefit) |
|
|
(10,366) |
|
|
|
2,292 |
|
|
|
1,492 |
|
|
|
30,463 |
|
Net income (loss) |
|
$ |
(22,250) |
|
|
$ |
13,310 |
|
|
$ |
29,610 |
|
|
$ |
118,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic net income (loss) per common share |
|
$ |
(0.34) |
|
|
$ |
0.20 |
|
|
$ |
0.46 |
|
|
$ |
1.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Diluted net income (loss) per common share |
|
$ |
(0.34) |
|
|
$ |
0.20 |
|
|
$ |
0.45 |
|
|
$ |
1.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average shares used in the calculation of net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
64,583 |
|
|
|
65,023 |
|
|
|
64,977 |
|
|
|
64,739 |
|
Diluted |
|
|
64,583 |
|
|
|
66,477 |
|
|
|
65,617 |
|
|
|
66,546 |
|
1-800-FLOWERS.COM, Inc. and Subsidiaries |
||||||||
Selected Financial Information |
||||||||
Consolidated Statements of Cash Flows |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
Years ended |
|||||||
|
July 3, 2022 |
June 27, 2021 |
||||||
|
|
|
||||||
Operating activities: |
|
|
||||||
Net income |
$ |
29,610 |
$ |
118,652 |
||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
||||||
Depreciation and amortization |
|
49,078 |
|
42,510 |
||||
Amortization of deferred financing costs |
|
1,269 |
|
1,143 |
||||
Deferred income taxes |
|
1,579 |
|
5,530 |
||||
Bad debt expense |
|
(411) |
|
964 |
||||
Stock-based compensation |
|
7,947 |
|
10,835 |
||||
Other non-cash items |
|
3,194 |
|
645 |
||||
Changes in operating items: |
|
|
||||||
Trade receivables |
|
(2,452) |
|
(5,236) |
||||
Inventories |
|
(85,047) |
|
(39,104) |
||||
Prepaid and other |
|
6,731 |
|
(22,850) |
||||
Accounts payable and accrued expenses |
|
(6,595) |
|
57,397 |
||||
Other assets and liabilities |
|
286 |
|
2,804 |
||||
Net cash provided by operating activities |
|
5,189 |
|
173,290 |
||||
|
|
|
||||||
Investing activities: |
|
|
||||||
Acquisitions, net of cash acquired |
|
(21,280) |
|
(250,942) |
||||
Capital expenditures, net of non-cash expenditures |
|
(66,408) |
|
(55,219) |
||||
Purchase of equity investments |
|
(2,000) |
|
(1,756) |
||||
Net cash used in investing activities |
|
(89,688) |
|
(307,917) |
||||
|
|
|
||||||
Financing activities: |
|
|
||||||
Acquisition of treasury stock |
|
(38,171) |
|
(22,369) |
||||
Proceeds from exercise of employee stock options |
|
846 |
|
2,253 |
||||
Proceeds from bank borrowings |
|
125,000 |
|
265,000 |
||||
Repayment of notes payable and bank borrowings |
|
(145,000) |
|
(174,997) |
||||
Debt issuance cost |
|
(284) |
|
(2,193) |
||||
Net cash provided by (used in) financing activities |
|
(57,609) |
|
67,694 |
||||
|
|
|
||||||
Net change in cash and cash equivalents |
|
(142,108) |
|
(66,933) |
||||
Cash and cash equivalents: |
|
|
||||||
Beginning of period |
|
173,573 |
|
240,506 |
||||
End of period |
$ |
31,465 |
$ |
173,573 |
1-800-FLOWERS.COM, Inc. and Subsidiaries |
|||||||||||
Selected Financial Information – Category Information |
|||||||||||
(dollars in thousands) (unaudited) |
|||||||||||
Three Months Ended |
|||||||||||
July 3, 2022 |
June 27, 2021 |
% Change |
|||||||||
Net revenues: |
|
|
|
||||||||
Consumer Floral & Gifts |
$ |
299,015 |
$ |
297,719 |
0.4% |
||||||
BloomNet |
|
38,490 |
|
37,297 |
3.2% |
||||||
Gourmet Foods & Gift Baskets |
|
148,442 |
|
152,168 |
-2.4% |
||||||
Corporate |
|
44 |
|
46 |
-4.3% |
||||||
Intercompany eliminations |
|
(99) |
|
(247) |
59.9% |
||||||
Total net revenues |
$ |
485,892 |
$ |
486,983 |
-0.2% |
||||||
|
|
|
|||||||||
Gross profit: |
|
|
|
||||||||
Consumer Floral & Gifts |
$ |
113,688 |
$ |
122,403 |
-7.1% |
||||||
|
38.0% |
|
41.1% |
|
|||||||
|
|
|
|||||||||
BloomNet |
|
15,237 |
|
16,126 |
-5.5% |
||||||
|
39.6% |
|
43.2% |
|
|||||||
|
|
|
|||||||||
Gourmet Foods & Gift Baskets |
|
34,418 |
|
59,220 |
-41.9% |
||||||
|
23.2% |
|
38.9% |
|
|||||||
|
|
|
|||||||||
Corporate |
|
340 |
|
255 |
33.3% |
||||||
|
772.7% |
|
554.3% |
|
|||||||
|
|
|
|||||||||
Total gross profit |
$ |
163,683 |
$ |
198,004 |
-17.3% |
||||||
|
33.7% |
|
40.7% |
|
|||||||
|
|
|
|||||||||
EBITDA (non-GAAP): |
|
|
|
||||||||
Segment Contribution Margin (non-GAAP) (a): |
|
|
|
||||||||
Consumer Floral & Gifts |
$ |
26,450 |
$ |
41,195 |
-35.8% |
||||||
BloomNet |
|
9,985 |
|
11,271 |
-11.4% |
||||||
Gourmet Foods & Gift Baskets |
|
(23,674) |
|
4,205 |
-663.0% |
||||||
Segment Contribution Margin Subtotal |
|
12,761 |
|
56,671 |
-77.5% |
||||||
Corporate (b) |
|
(26,982) |
|
(30,698) |
12.1% |
||||||
EBITDA (non-GAAP) |
|
(14,221) |
|
25,973 |
-154.8% |
||||||
Add: Stock-based compensation |
|
1,144 |
|
2,606 |
-56.1% |
||||||
Add: Compensation charge related to NQ Plan Investment (Depreciation) Appreciation |
|
(3,694) |
|
1,590 |
-332.3% |
||||||
Adjusted EBITDA (non-GAAP) |
$ |
(16,771) |
$ |
30,169 |
-155.6% |
1-800-FLOWERS.COM, Inc. and Subsidiaries |
|||||||||||||||||||||||||||
Selected Financial Information – Category Information |
|||||||||||||||||||||||||||
(dollars in thousands) (unaudited) |
|||||||||||||||||||||||||||
Years Ended |
|||||||||||||||||||||||||||
July 3, 2022 |
Vital Choice |
Litigation |
As Adjusted |
June 27, |
Personalization |
Harry & |
As Adjusted |
% |
|||||||||||||||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Consumer Floral & Gifts |
$ |
1,059,570 |
$ |
- |
$ |
- |
$ |
1,059,570 |
$ |
1,025,015 |
$ |
- |
$ |
- |
$ |
1,025,015 |
3.4% |
||||||||||
BloomNet |
|
145,702 |
|
|
|
145,702 |
|
142,919 |
|
|
|
142,919 |
1.9% |
||||||||||||||
Gourmet Foods & Gift Baskets |
|
1,004,272 |
|
|
|
1,004,272 |
|
955,607 |
|
|
|
955,607 |
5.1% |
||||||||||||||
Corporate |
|
201 |
|
|
|
201 |
|
341 |
|
|
|
341 |
-41.1% |
||||||||||||||
Intercompany eliminations |
|
(1,860) |
|
|
|
(1,860) |
|
(1,637) |
|
|
|
(1,637) |
-13.6% |
||||||||||||||
Total net revenues |
$ |
2,207,885 |
$ |
- |
$ |
- |
$ |
2,207,885 |
$ |
2,122,245 |
$ |
- |
$ |
- |
$ |
2,122,245 |
4.0% |
||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Gross profit: |
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Consumer Floral & Gifts |
$ |
416,591 |
$ |
- |
$ |
- |
$ |
416,591 |
$ |
420,860 |
$ |
- |
$ |
- |
$ |
420,860 |
-1.0% |
||||||||||
|
39.3% |
|
|
|
39.3% |
|
41.1% |
|
|
|
41.1% |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
BloomNet |
|
61,562 |
|
|
|
61,562 |
|
64,978 |
|
|
|
64,978 |
-5.3% |
||||||||||||||
|
42.3% |
|
|
|
42.3% |
|
45.5% |
|
|
|
45.5% |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Gourmet Foods & Gift Baskets |
|
343,163 |
|
|
|
343,163 |
|
410,208 |
|
|
|
410,208 |
-16.3% |
||||||||||||||
|
34.2% |
|
|
|
34.2% |
|
42.9% |
|
|
|
42.9% |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Corporate |
|
422 |
|
|
|
422 |
|
383 |
|
|
|
383 |
10.2% |
||||||||||||||
|
210.0% |
|
|
|
210.0% |
|
112.3% |
|
|
|
112.3% |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total gross profit |
$ |
821,738 |
$ |
- |
$ |
- |
$ |
821,738 |
$ |
896,429 |
$ |
- |
$ |
- |
$ |
896,429 |
-8.3% |
||||||||||
|
37.2% |
|
- |
|
- |
|
37.2% |
|
42.2% |
|
- |
|
- |
|
42.2% |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
EBITDA (non-GAAP): |
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Segment Contribution Margin (non-GAAP) (a): |
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Consumer Floral & Gifts |
$ |
104,319 |
$ |
- |
$ |
- |
$ |
104,319 |
$ |
128,625 |
$ |
- |
$ |
- |
$ |
128,625 |
-18.9% |
||||||||||
BloomNet |
|
42,515 |
|
|
|
42,515 |
|
45,875 |
|
|
|
45,875 |
-7.3% |
||||||||||||||
Gourmet Foods & Gift Baskets |
|
62,021 |
|
|
2,900 |
|
64,921 |
|
149,377 |
|
|
(483) |
|
148,894 |
-56.4% |
||||||||||||
Segment Contribution Margin Subtotal |
|
208,855 |
|
- |
|
2,900 |
|
211,755 |
|
323,877 |
|
- |
|
(483) |
|
323,394 |
-34.5% |
||||||||||
Corporate (b) |
|
(117,676) |
|
540 |
|
|
(117,136) |
|
(132,280) |
|
5,403 |
|
|
(126,877) |
7.7% |
||||||||||||
EBITDA (non-GAAP) |
|
91,179 |
|
540 |
|
2,900 |
|
94,619 |
|
191,597 |
|
5,403 |
|
(483) |
|
196,517 |
-51.9% |
||||||||||
Add: Stock-based compensation |
|
7,947 |
|
|
|
7,947 |
|
10,835 |
|
|
|
10,835 |
-26.7% |
||||||||||||||
Add: Compensation charge related to NQ Plan Investment (Depreciation) Appreciation |
|
(3,583) |
|
|
|
(3,583) |
|
5,713 |
|
|
|
5,713 |
-162.7% |
||||||||||||||
Adjusted EBITDA (non-GAAP) |
$ |
95,543 |
$ |
540 |
$ |
2,900 |
$ |
98,983 |
$ |
208,145 |
$ |
5,403 |
$ |
(483) |
$ |
213,065 |
-53.5% |
1-800-FLOWERS.COM, Inc. and Subsidiaries |
||||||||||||||||
Selected Financial Information |
||||||||||||||||
(in thousands) (unaudited) |
||||||||||||||||
Reconciliation of net income to adjusted net income (loss) (non-GAAP): |
Three Months Ended |
Years Ended |
||||||||||||||
July 3, |
June 27, |
July 3, |
June 27, |
|||||||||||||
|
|
|
|
|||||||||||||
Net income (loss) |
$ |
(22,250) |
$ |
13,310 |
$ |
29,610 |
$ |
118,652 |
||||||||
Adjustments to reconcile net income (loss) to adjusted net income (loss) (non-GAAP) |
|
|
|
|
||||||||||||
Add: Transaction costs |
|
- |
|
- |
|
540 |
|
5,403 |
||||||||
Add: Litigation settlement |
|
|
- |
|
2,900 |
|
- |
|||||||||
Deduct: Harry & David store closure cost adjustment |
|
- |
|
- |
|
- |
|
(483) |
||||||||
Deduct: Income tax effect on adjustments |
|
476 |
|
33 |
|
(165) |
|
(1,005) |
||||||||
Adjusted net income (loss) (non-GAAP) |
$ |
(21,774) |
$ |
13,343 |
$ |
32,885 |
$ |
122,567 |
||||||||
|
|
|
|
|||||||||||||
Basic and diluted net income (loss) per common share |
|
|
|
|
||||||||||||
Basic |
$ |
(0.34) |
$ |
0.20 |
$ |
0.46 |
$ |
1.83 |
||||||||
Diluted |
$ |
(0.34) |
$ |
0.20 |
$ |
0.45 |
$ |
1.78 |
||||||||
|
|
|
|
|||||||||||||
|
|
|
|
|||||||||||||
Basic and diluted adjusted net income (loss) per common share (non-GAAP) |
|
|
|
|
||||||||||||
Basic |
$ |
(0.34) |
$ |
0.21 |
$ |
0.51 |
$ |
1.89 |
||||||||
Diluted |
$ |
(0.34) |
$ |
0.20 |
$ |
0.50 |
$ |
1.84 |
||||||||
|
|
|
|
|||||||||||||
Weighted average shares used in the calculation of net income (loss) and adjusted net income (loss) per common share |
|
|
|
|
||||||||||||
Basic |
|
64,583 |
|
65,023 |
|
64,977 |
|
64,739 |
||||||||
Diluted |
|
64,583 |
|
66,477 |
|
65,617 |
|
66,546 |
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 3, |
June 27, |
July 3, |
June 27, |
|||||||||||||
|
|
|
|
|||||||||||||
Net income (loss) |
$ |
(22,250) |
$ |
13,310 |
$ |
29,610 |
$ |
118,652 |
||||||||
Add: Interest expense, net |
|
5,568 |
|
(347) |
|
10,999 |
|
(28) |
||||||||
Add: Depreciation and amortization |
|
12,827 |
|
10,718 |
|
49,078 |
|
42,510 |
||||||||
Add: Income tax expense (benefit) |
|
(10,366) |
|
2,292 |
|
1,492 |
|
30,463 |
||||||||
EBITDA |
|
(14,221) |
|
25,973 |
|
91,179 |
|
191,597 |
||||||||
Add: Stock-based compensation |
|
1,144 |
|
2,606 |
|
7,947 |
|
10,835 |
||||||||
Add: Compensation charge related to NQ |
||||||||||||||||
plan investment (depreciation) appreciation |
|
(3,694) |
|
1,590 |
|
(3,583) |
|
5,713 |
||||||||
Add: Transaction costs |
|
- |
|
- |
|
540 |
|
5,403 |
||||||||
Add: Litigation settlement |
|
- |
|
- |
|
2,900 |
|
- |
||||||||
Deduct: Harry & David store closure cost adjustment |
|
- |
|
- |
|
- |
|
(483) |
||||||||
Adjusted EBITDA |
$ |
(16,771) |
$ |
30,169 |
$ |
98,983 |
$ |
213,065 |
||||||||
(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. |
Investor Contact:
Joseph D. Pititto
(516) 237-6131
invest@1800flowers.com
Media Contact:
Kathleen Waugh
(516) 237-6028
kwaugh@1800flowers.com