1-800-FLOWERS.COM(R) Reports Fiscal 2006 First Quarter Revenue Growth of 15.6 Percent to $112.8 Million; Pro Forma* Net Loss Per Share Was $0.09.WESTBURY Westbury, residential village (1990 pop. 13,060), Nassau co., SE N.Y., on Long Island; settled 1650, inc. 1932. The State Univ. of New York's Westbury campus is located in the village. Harness races are held at Roosevelt Raceway there. , N.Y. -- 1-800-FLOWERS.COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FLWS FLWS Force Level Warfare Systems ): --Online revenues grew 17.3 percent to $62.3 million, representing 55.2 percent of total revenues compared with $53.1 million and 54.4 percent in the prior year period. --Company attracted 508,000 new customers, 66.4 percent through its online channels; compared with 460,000 and 62.4 percent in the prior year period. --Repeat customers represented 61.1 percent of combined online and telephonic orders; compared with 60.5 percent in prior year period. 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading florist and multi-channel See multichannel. retailer of thoughtful gifts for all occasions, today reported record revenues of $112.8 million for its fiscal first quarter ended October October: see month. 2, 2005, representing an increase of 15.6 percent compared with revenues of $97.5 million reported in the prior-year period. Online revenues increased 17.3 percent to $62.3 million while telephonic revenues grew 2.1 percent to $38.4 million. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. percent grew 20 basis points to 40.8 percent, compared with the prior year period. During the first quarter - traditionally the Company's smallest in terms of revenues due to the lack of gifting occasions during the summer months - the Company's operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. ratio increased to 50.7 percent, compared with 45.6 percent in the prior year period. This increase was attributed to the Company's: stepped-up stepped-up adj. Increased in pace or intensity; heightened: a stepped-up political campaign. marketing efforts, begun in January January: see month. to help drive double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. revenue growth; continued investments to grow its Bloomnet B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business florist operations; carrying costs Carrying costs Costs that increase with increases in the level of investment in current assets. associated with the acquisitions made during fiscal 2005, which generate the majority of their revenues and profitability during the fiscal second quarter, and the impact of stock-based compensation expense as calculated under FAS No. 123R. As a result of these factors, the Company's pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma * net loss for the first quarter increased to $5.9 million or $0.09 per share compared with $2.7 million or $0.04 per share in the year-ago period. (* The Company defines pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. as GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss excluding stock-based compensation expense, net of the related tax effect, as calculated under FAS No. 123R. The Company believes pro forma earnings provides a more meaningful measure of year-to-year period comparative performance; however, its use, and corresponding per share results, do not lessen less·en v. less·ened, less·en·ing, less·ens v.tr. 1. To make less; reduce. 2. Archaic To make little of; belittle. v.intr. To become less; decrease. the importance of comparable GAAP net loss.) Including the net effect of stock-based compensation, the Company's GAAP net loss for the quarter was $6.6 million or $0.10 per share. During the fiscal first quarter, the Company attracted 508,000 new customers, 66.4 percent of whom, or 337,000, came to the Company online. These customers were attracted to the Company's leading position in the floral flo·ral adj. Of, relating to, or suggestive of a flower: a fabric with a floral pattern. flo category as well as its expanded food, wine and gift basket A gift basket, or fruit basket is typically a gift that is delivered to the recipient at their home or workplace. There are different varieties of gift baskets, some which have fruit only, some with dry/canned goods only (such as tea, crackers and jam) although the standard offerings through a combination of cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. marketing programs as well as its convenient, multi-channel customer access. More than 1.3 million customers placed orders during the period of which 61.1 percent were repeat customers, up from 60.5 percent in the first quarter of fiscal 2005. This reflects the Company's ongoing focus on deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound the relationship with its existing customers to become their "florist of choice" and a trusted source for gifts and services for all their celebratory occasions. Jim McCann McCann is the surname of several people, including:
v. res·o·nat·ed, res·o·nat·ing, res·o·nates v.intr. 1. To exhibit or produce resonance or resonant effects. 2. with customers; and, coupled with our stepped-up marketing efforts, helped us achieve revenue growth of almost 16 percent in a period that is traditionally our slowest, in terms of revenue. McCann noted that, during the quarter, the Company also made progress in several key business areas: --"We continued the strong turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. , begun last year, in our home and garden category, where we achieved comparable sales growth of more than 10 percent. With a significant increase in new product offerings and enhanced creative design in its catalogs and website, we believe Plow plow or plough, agricultural implement used to cut furrows in and turn up the soil, preparing it for planting. The plow is generally considered the most important tillage tool. & Hearth is positioned to perform well in the current fiscal second quarter, traditionally its largest. --"We further expanded our Bloomnet B2B florist initiative, mailing our first directory to members in September September: see month. , which was followed by a successful advertising sales effort for the second directory, scheduled for mailing later this quarter. We are currently developing a range of new products and services for our florist members that we will be introducing throughout fiscal 2006. --"We made significant progress in the integration of the two acquisitions we made last year - the WineTasting wine·tast·ing n. A gathering of people to taste and compare a number of wines. Network and Cheryl&Co. While the seasonality of these businesses impacted our operating results for the first quarter, we anticipate that they will provide significant contributions during the current fiscal quarter in both consumer gifting and our fast growing Business Gift Services Group. Combined with our other offerings in candy candy: see confectionery. candy Sweet sugar- or chocolate-based confection. The Egyptians made candy from honey (combined with figs, dates, nuts, and spices), sugar being unknown. , gourmet foods, and especially our gift basket collection, we believe we are very well positioned to be a leading player in the Food, Wine and Gift Basket category this holiday season." Company Guidance: The Company reiterated its guidance for fiscal 2006 which calls for revenue growth of 14-to-16 percent compared with the prior year. The Company expects to grow its gross profit margin by approximately 150 basis points while its operating expense ratio will be in line with the prior year. As a result of these factors, the Company expects to achieve pro forma eps growth of more than 75 percent compared with fiscal 2005. In addition to the strong earnings growth, and as a result of its relatively low working capital and capital expenditure requirements, the Company expects cash from operations will be more than $40 million during fiscal 2006. Regarding its current fiscal second quarter, which includes the calendar-year-end holiday period, the Company expects the period will represent approximately 35-to-37 percent of full-year revenues. About 1-800-FLOWERS.COM(R) For more than 25 years, 1-800-FLOWERS.COM Inc. - "Your Florist of Choice(SM)" - has been providing customers around the world with the freshest flowers and finest selection of plants, gift baskets, gourmet foods and confections, and plush stuffed animals
A stuffed animal is toy animal stuffed with straw, beans, cotton or other similar materials. Some stuffed animals are very old – home made cloth dolls stuffed with straw go back to at least the perfect for every occasion. 1-800-FLOWERS.COM(R) offers the best of both worlds: exquisite ex·qui·site n. Extremely intense, keen, or sharp. Used of pain or tenderness. , florist-designed arrangements individually created by some of the nation's top floral artists and hand-delivered the same day, and spectacular flowers shipped from our growers Growers are the people, animals, plants, and various living creatures that assist in the growing of plants and other living creatures. More specifically, the term "growers" refers to individual people who put forth effort to grow plants for food and medicinal use, including the to your door fresh. Customers can shop 1-800-FLOWERS.COM 24 hours a day, 7 days a week via the phone or Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the (1-800-356-9377 or www.1800flowers.com) or by visiting a Company-operated or franchised store. Gift advisors are available 24/7, and fast and reliable delivery is offered same day, any day. As always, 100 percent satisfaction and freshness is guaranteed. The 1-800-FLOWERS.COM collection of brands also includes home decor and garden merchandise from Plow & Hearth(R) (1-800-627-1712 or www.plowandhearth.com); premium popcorn and specialty treats from The Popcorn Factory(R) (1-800-541-2676 or www.thepopcornfactory.com); exceptional cookies and baked gifts from Cheryl&Co.(R) (1-800-443-8124 or wwwcherylandco.com); gourmet foods from GreatFood.com(R) (www.greatfood.com); children's gifts from HearthSong(R) (www.hearthsong.com) and Magic Cabin(R) (www.magiccabin.com) and wine gifts from the WineTasting Network(R) (www.ambrosiawine.com and www.winetasting.com). 1-800-FLOWERS.COM, Inc. stock is traded on the NASDAQ market under ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors FLWS. Special Note Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : A number of statements contained in this press release, other than statements of historical fact, are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include, but are not limited to: the Company's ability to achieve its stated forecast for revenue and earnings growth in its fiscal year 2006; its ability to continue to improve sales performance in its home and garden category; its ability to maintain its operating expense ratio in line with prior year; its ability to maintain and enhance its online shopping web sites to attract customers; its ability to successfully introduce new products and product categories; its ability to provide timely fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of customer orders; its ability to cost effectively acquire and retain customers; its ability to compete against existing and new competitors; its ability to cost efficiently manage inventories; its ability to leverage its operating infrastructure and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company's products. For a more detailed description of these and other risk factors, please refer to the Company's SEC filings including the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . The Company expressly disclaims any intent or obligation to update any of the forward looking statements made in this release, the scheduled conference call pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to fiscal 2006 first quarter results, or Company guidance for fiscal year 2006, and any recordings thereof or in any of its SEC filings except as may be otherwise stated by the Company. Conference Call: The Company will conduct a conference call to discuss the attached financial results today, Thursday, October 27th, at 11:00 a.m. ET. The call will be "web cast" live via the Internet and can be accessed from the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the 1-800-FLOWERS.COM web site. An indexed recording of the call will be posted on the Investor Relations section of the Company's web site within 2 hours of the call's completion. A replay of the call can be accessed via telephone beginning at 2:00 p.m. (ET) on 10/27/05 through midnight on 10/28/05 at: 1-888-203-1112 (domestic) or 1-719-457-0820 (international). Enter reservation #1716419.
1-800-FLOWERS.COM, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
October 2, July 3,
2005 2005
---------- ---------
Assets
Current assets:
Cash and equivalents $ 10,557 $ 39,961
Short-term investments - 6,647
Receivables, net 12,926 10,619
Inventories 46,312 28,675
Deferred income taxes 14,584 10,219
Prepaid and other 7,710 5,289
---------- ---------
Total current assets 92,089 101,410
Property, plant and equipment, net 54,323 50,474
Goodwill 63,251 63,219
Other intangibles, net 14,040 14,215
Deferred income taxes 17,161 17,161
Other assets 18,058 5,473
---------- ---------
Total assets $ 258,922 $ 251,952
========== =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 70,792 $ 57,121
Current maturities of long-term debt and
obligations under capital leases 2,363 2,597
---------- ---------
Total current liabilities 73,155 59,718
Long-term debt and obligations under capital
leases 2,938 3,347
Other liabilities 3,387 2,553
---------- ---------
Total liabilities 79,480 65,618
Total stockholders' equity 179,442 186,334
---------- ---------
Total liabilities and stockholders' equity $ 258,922 $ 251,952
========== =========
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Consolidated Statements of Income
(In thousands, except for per share data)
Three Months Ended
-------------------------
October 2, September 26,
2005 2004
----------- -------------
Net revenues:
Online $ 62,273 $ 53,086
Telephonic 38,382 37,586
Retail/fulfillment 12,110 6,842
--------- ---------
Total net revenues 112,765 97,514
Cost of revenues 66,739 57,942
--------- ---------
Gross profit 46,026 39,572
Operating expenses:
Marketing and sales 38,224 29,892
Technology and development 4,769 3,104
General and administrative 10,636 7,602
Depreciation and amortization 3,524 3,896
--------- ---------
Total operating expenses 57,153 44,494
--------- ---------
Operating loss (11,127) (4,922)
Other income (expense):
Interest income 215 382
Interest expense (84) (141)
Other 6 4
--------- ---------
Total other income (expense), net 137 245
--------- ---------
Loss before income taxes (10,990) (4,677)
Income tax benefit (4,364) (1,967)
--------- ---------
Net loss $ (6,626) $ (2,710)
========= =========
Basic and diluted net loss per common share ($0.10) ($0.04)
========= =========
Weighted average shares used in the
calculation of basic and diluted net loss
per common share 65,088 66,210
========= =========
Calculation of Net Loss Before Share Based Compensation Charge:
Net loss $(6,626) $(2,710)
Less: Share based compensation expense, net of tax 727 -
------- -------
Net loss before share based compensation expense $(5,899) $(2,710)
======= =======
Basic and diluted net loss per common share before
share based compensation expense ($0.09) ($0.04)
======= =======
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Consolidated Statements of Cash Flows
(In thousands)
Three Months Ended
--------------------
October 2, September
2005 26, 2004
--------------------
Operating activities:
Net loss ($6,626) ($2,710)
Reconciliation of net loss to net cash used in
operations:
Depreciation and amortization 3,524 3,896
Deferred income taxes (4,365) (1,967)
Share based compensation expense 937
Bad debt expense 75 46
Changes in operating items:
Receivables (2,382) (794)
Inventories (17,637) (13,733)
Prepaid and other (2,419) (2,164)
Accounts payable and accrued expenses 13,671 (5,685)
Other assets (12,668) (2,404)
Other liabilities 834 405
---------- --------
Net cash used in operating activities (27,056) (25,110)
Investing activities:
Purchase of investments - (26,090)
Sale of investments 6,647 25,828
Capital expenditures, net of non-cash expenditures (7,196) (2,945)
Other 38 58
---------- --------
Net cash used in investing activities (511) (3,149)
Financing activities:
Acquisition of treasury stock (1,324) (1,173)
Proceeds from employee stock options 122 146
Repayment of notes payable and bank borrowings (237) (337)
Payment of capital lease obligations (398) (411)
---------- --------
Net cash used in financing activities (1,837) (1,775)
---------- --------
Net change in cash and equivalents (29,404) (30,034)
Cash and equivalents:
Beginning of period 39,961 80,824
---------- --------
End of period $ 10,557 $ 50,790
========== ========
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