1-800-FLOWERS.COM(R) Reports Fiscal 2006 Fourth Quarter And Full Year Results.CARLE PLACE, 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 ): Fiscal 2006 Fourth Quarter Highlights: --Total revenues increased by 13.4 percent, or $25 million, to $211.1 million. --Online revenues grew 14.6 percent, or $15.9 million, to $124.4 million. --GAAP net income for the quarter was $1.0 million, or $0.02 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. 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 income, excluding the effect of stock-based compensation, was $2.0 million, or $0.03 per share, compared with $3.9 million, or $0.06 per share, in the prior year period. Fiscal 2006 Full Year Highlights: --Total revenues increased 16.6 percent, or $111.1 million, to $781.7 million. --Online revenues grew 19.2 percent, or $69.4 million, to $430.3 million. --GAAP net income for the full year was $3.2 million, or $0.05 per share. Pro forma net income, excluding the effect of stock-based compensation, was $6.4 million, or $0.10 per share, compared with $7.8 million, or $0.12 per share, in the prior year. 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 $211.1 million for its fiscal fourth quarter ended July July: see month. 2, 2006, representing an increase of 13.4 percent or $25 million, compared with revenues of $186.1 million in the prior-year period. This growth was driven by online revenues, which increased 14.6 percent, or $15.9 million, to $124.4 million while telephonic revenues during the period increased slightly to $60.7 million. Also contributing to the revenue growth for the quarter was the Company's retail and 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. operations, which increased 51 percent to $26.1 million attributed primarily to the acquisition of Fannie May
During the fiscal fourth quarter, the Company attracted 887,000 new customers, 70 percent of whom, or 624,000, came to the Company online. These customers were attracted to the Company's market leadership in the floral flo·ral adj. Of, relating to, or suggestive of a flower: a fabric with a floral pattern. flo gift category with its "Your Florist of Choice" marketing message, as well as its expanded specialty brands businesses, including its growing 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. More than two million customers placed orders during the period of which 58 percent were repeat customers. 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 relationships it has with its existing customers through convenient multi-channel access as well as the products and services that make it easier for them to connect with the people who are important in their lives. During the quarter, gross margin was flat at 40 percent compared with the prior-year period. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the period, including the impact of stock-based compensation, increased 200 basis points to 38.7 percent of total net revenues compared with 36.7 percent in the prior year period. The Company attributed the increase to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. impact of stock-based compensation, higher marketing spending and the operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. associated with the seasonality of the Company's recent acquisitions. As a result of these factors, adjusting to exclude the effect of stock-based compensation, pro forma net income for the quarter was $2.0 million or $0.03 per diluted share compared with $3.9 million or $0.06 per share in the prior year period. The Company believes 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. provide a 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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). results. (A table reconciling pro forma results to GAAP results is included in the tables attached to this release.) Including the net effect of stock-based compensation, the Company's GAAP net income for the quarter was $1.0 million or $0.02 per share. Fiscal 2006 Full-Year Results Total revenues increased 16.6 percent, or $111.1 million, to $781.7 million compared with $670.7 million in fiscal 2005. This increase was driven primarily by online revenue growth of 19.2 percent, or $69.4 million, to $430.3 million compared with $360.9 million in the prior year. Telephonic revenues increased 6.1 percent to $275.7 million compared with $259.9 million in the prior year. In addition, revenues from the Company's retail and fulfillment operations grew 51.9 percent to $75.7 million compared with $49.8 million in the prior year. This growth was attributed primarily to contributions from the Company's recent acquisitions as well as continued growth of its Bloomnet business. During the year, the Company attracted 3.6 million new customers compared with 3.3 million in fiscal 2005. The Company also continued to deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. its relationships with its more than 25 million customers with repeat customers representing more than 46 percent of the approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 6.6 million customers who placed orders during the year. 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. for the year increased 60 basis points to 41.7 percent compared with 41.1 percent in fiscal 2005. Operating expenses as a percent of total net revenue, including the impact of stock-based compensation, increased 150 basis points to 40.8 percent compared with 39.3 percent in the prior year. This increase was related primarily to the aforementioned impact of stock-based compensation, increased marketing and selling spending, investments made in the Company's fast-growing adj. 1. tending to spread quickly; - used mostly of plants. Adj. 1. fast-growing - tending to spread quickly; "an aggressive tumor" strong-growing, aggressive Bloomnet business and the operating losses associated with the seasonality of the Fannie May acquisition. As a result of these factors, adjusting to exclude the effect of stock-based compensation, pro forma net income for the year was $6.4 million or $0.10 per diluted share compared with $7.8 million or $0.12 per share in the prior year. Including stock-based compensation, the Company's GAAP net income for fiscal 2006 was $3.2 million or $0.05 per share. Jim McCann McCann is the surname of several people, including:
"Also impacting the quarter's results were the costs associated with the Fannie May acquisition, including operating losses related to the seasonality of its business. We are very focused on improving our bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. performance. Toward this end we have put in place a number of initiatives specifically designed to enhance gross margin and reduce operating costs operating costs npl → gastos mpl operacionales this year and beyond. McCann said that among the positive strategic achievements during the quarter and full year, the two most important were the acquisition of the Fannie May Confections business and the continued strong growth of the Bloomnet business. "The Fannie May acquisition significantly expands our position in the Food, Wine and Gift Basket category where we are rapidly becoming a market leader. Along with its history of customer loyalty, Fannie May offers excellent growth opportunities through the leveraging of our assets and capabilities in the online and direct marketing space as well as into our Bloomnet florist network. Combined with its strong operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , we expect Fannie May to contribute significantly to our overall bottom-line results in fiscal 2007 and beyond," said McCann. "With the investment phase of our Bloomnet roll-out behind us now, we are beginning to see a growing contribution from this business. Illustrating the positive response Bloomnet has received within the florist community, we recently shipped out our fourth and, by far, largest directory including thousands of pages of listings and advertisements. Bloomnet now includes more than 9,000 florist members. As we've we've Contraction of we have. we've have stated in the past, in growing Bloomnet we are committed to maintaining our industry-highest quality standards for our customers while providing our florist members with the products and services that they need to grow their businesses and enhance their profitability," he added. McCann noted that as the Company evolves its business - in particular reflecting the growth of its Bloomnet and Food, Wine and Gift Basket businesses - it is changing the way it will report its results. To enhance the visibility of the growth and profit characteristics of its different business categories, the Company will provide results for its Consumer Floral, Bloomnet, Home & Children's Gifts, and Food, Wine and Gift Baskets businesses. For each of these categories, the Company will provide revenues, gross profit margin and contribution margin (excluding corporate allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as ). This new reporting format will begin with the release of its fiscal 2007 first quarter results scheduled for October October: see month. 2006. In addition, the Company is changing the way it will provide guidance. Going forward the Company will provide three-year growth objectives for both revenue and profitability. However, because the current fiscal year will include the first significant contributions from its Bloomnet operations and the Fannie May business, it is providing the following guidance for fiscal 2007: Company Guidance: For fiscal year 2007 the Company anticipates achieving: --Revenue growth, including incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. contributions from its recent acquisitions, in a range of 17-to-20 percent. --EBITDA (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Quarterly revenues will be in the following ranges: --Q1 = 13-to-15 percent of total revenues --Q2 = 36-to-38 percent of total revenues --Q3 = 22-to-24 percent of total revenues --Q4 = 24-to-26 percent of total revenues -- Longer term, for fiscal years 2008 through 2009, the Company anticipates achieving the following compound annual growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. : --Revenue in a range of 7-10 percent, and --EBITDA and EPS in a range of 20-to-25 percent About 1-800-FLOWERS.COM(R) For more than 30 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. Sales and Service Specialists 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 MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain from 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(R) (1-800-627-1712 or www.plowandhearth.com); popcorn and specialty treats from The Popcorn Factory(R) (1-800-541-2676 or www.thepopcornfactory.com); exceptional cookies and baked Baked can refer to a wide variety of things. Cooking:
n. A gathering of people to taste and compare a number of wines. Network(R) (www.ambrosiawine.com and www.winetasting.com); and gift baskets from 1-800-BASKETS.COM(R) (www.1800baskets.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. : The statements in this press release regarding current and future expectations involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in the applicable statements. These risks and uncertainties include, but are not limited to: the Company's ability to achieve its revenue and profitability growth guidance for fiscal years 2007-2009; its ability to reduce costs and enhance its profit margins; its ability to manage the increased seasonality of its businesses; its ability to effectively integrate and grow its acquired companies; its ability to cost effectively acquire and retain customers; its ability to compete against existing and new competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. ; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to cost efficiently manage inventories; its ability to leverage its operating infrastructure; and general consumer sentiment Sentiment can refer to:
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 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 on Thursday Thursday: see week. , August 10th 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 for 24 hours Adv. 1. for 24 hours - without stopping; "she worked around the clock" around the clock, round the clock beginning at 1:00 p.m. (ET) on 8/10/05 at: 1-888-286-8010 (domestic) or 1-617-801-6888 (international). Enter replay pass code #: 86425906.
1-800-FLOWERS.COM, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
July 2, July 3,
2006 2005
--------- ---------
(unaudited)
Assets
Current assets:
Cash and equivalents $ 24,599 $ 39,961
Short-term investments - 6,647
Receivables, net 13,153 10,619
Inventories 52,954 28,675
Deferred income taxes 17,427 10,219
Prepaid and other 6,063 5,289
--------- ---------
Total current assets 114,196 101,410
Property, plant and equipment, net 59,732 50,474
Goodwill 131,475 63,219
Other intangibles, net 29,822 14,215
Deferred income taxes 6,224 17,161
Other assets 5,519 5,473
--------- ---------
Total assets $346,968 $251,952
========= =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 62,654 $ 57,121
Current maturities of long-term debt and
obligations under capital leases 10,694 2,597
--------- ---------
Total current liabilities 73,348 59,718
Long-term debt and obligations under capital
leases 78,063 3,347
Other liabilities 2,374 2,553
--------- ---------
Total liabilities 153,785 65,618
Total stockholders' equity 193,183 186,334
--------- ---------
Total liabilities and stockholders' equity 346,968 $251,952
========= =========
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Consolidated Statements of Income (Unaudited)
(In thousands, except for per share data)
Three Months Ended Year Ended
------------------- -------------------
July 2, July 3, July 2, July 3,
2006 2005 2006 2005
--------- --------- --------- ---------
Net revenues:
Online $124,372 $108,492 $430,285 $360,902
Telephonic 60,670 60,349 275,716 259,929
Retail/fulfillment 26,088 17,277 75,740 49,848
--------- --------- --------- ---------
Total net revenues 211,130 186,118 781,741 670,679
Cost of revenues 126,778 111,737 456,097 395,028
--------- --------- --------- ---------
Gross profit 84,352 74,381 325,644 275,651
Operating expenses:
Marketing and sales 60,287 50,389 239,573 198,935
Technology and development 5,083 4,201 19,819 14,757
General and administrative 11,804 10,152 43,978 35,572
Depreciation and amortization 4,555 3,473 15,765 14,489
--------- --------- --------- ---------
Total operating expenses 81,729 68,215 319,135 263,753
--------- --------- --------- ---------
Operating income 2,623 6,166 6,509 11,898
Other income (expense):
Interest income 430 463 1,260 1,690
Interest expense (1,114) (100) (1,407) (481)
Other 6 60 6 140
--------- --------- --------- ---------
Total other income (expense),
net (678) 423 (141) 1,349
--------- --------- --------- ---------
Income before income taxes 1,945 6,589 6,368 13,247
Income taxes (928) (2,688) (3,181) (5,398)
--------- --------- --------- ---------
Net income $ 1,017 $ 3,901 $ 3,187 $ 7,849
========= ========= ========= =========
Basic and diluted net income per
common share $ 0.02 $ 0.06 $ 0.05 $ 0.12
========= ========= ========= =========
Weighted average shares used in
the calculation of net income
per common share:
Basic 65,145 65,798 65,100 66,038
========= ========= ========= =========
Diluted 66,535 66,947 66,429 67,402
========= ========= ========= =========
Calculation of Net Income before Share-Based Compensation Expense to
GAAP Net Income:
Net income $ 1,017 $ 3,901 $ 3,187 $ 7,849
Add: Share-based compensation
expense 951 - 3,216 -
--------- --------- --------- ---------
Net (loss) income before share
based compensation expense $ 1,968 $ 3,901 $ 6,403 $ 7,849
========= ========= ========= =========
Basic net (loss) income per
common share before share based
compensation expense $ 0.03 $ 0.06 $ 0.10 $ 0.12
========= ========= ========= =========
Diluted net (loss) income per
common share before share
based compensation expense $ 0.03 $ 0.06 $ 0.10 $ 0.12
========= ========= ========= =========
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Years Ended
--------------------
July 2, July 3,
2006 2005
---------- ---------
Operating activities:
Net Income $ 3,187 $ 7,849
Reconciliation of net income to net cash provided
by operations:
Depreciation and amortization 15,765 14,489
Deferred income taxes 2,175 4,702
Bad debt expense 476 270
Stock based compensation 4,336 192
Other non-cash items 125 -
Receivables 1,316 (655)
Inventories (9,106) (6,345)
Prepaid and other 685 (3,445)
Accounts payable and accrued expenses (2,262) (10,953)
Other assets (1,714) 4,584
Other liabilities (579) (259)
---------- ---------
Net cash provided by operating activities 14,404 10,429
Investing activities:
Purchase of investments - (93,946)
Proceeds from sale of investments 6,647 118,109
Acquisitions, net of cash acquired (98,086) (50,965)
Capital expenditures (20,491) (13,334)
Other 2 192
---------- ---------
Net cash used in investing activities (111,928) (39,944)
Financing activities:
Acquisition of treasury stock (1,324) (9,813)
Proceeds from employee stock options/purchase plan 558 1,533
Excess tax benefits from share-base compensation 92 -
Proceeds from bank borrowings 85,000 -
Repayment of notes payable and bank borrowings (936) (1,391)
Repayment of capital lease obligations (1,228) (1,677)
---------- ---------
Net cash provided by (used in) financing activities 82,162 (11,348)
---------- ---------
Net change in cash and equivalents (15,362) (40,863)
Cash and equivalents:
Beginning of period 39,961 80,824
---------- ---------
End of period $ 24,599 $ 39,961
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