1-800-FLOWERS.COM(R) Reports Fiscal 2006 Second Quarter Revenue Growth of 21 Percent to $278 Million and GAAP Net Income of $10.3 Million.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 ): --Pro forma forma, adj/n minor elements between the members of a botanical species. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. grew 31 percent to $0.17 compared with $0.13 in the prior year period; GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). EPS, which for fiscal 2006 includes the impact of stock-based compensation, was $0.16 --Online revenues grew 24 percent to $133.4 million while telephonic revenues increased 14 percent to $125.1 million 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 $277.8 million for its fiscal second quarter ended January January: see month. 1, 2006 representing an increase of 20.8 percent or $47.8 million, compared with revenues of $230 million in the prior-year period. The Company attributed the increase in revenues during the quarter primarily to a strong contribution from its recent acquisitions, particularly in its 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 category. Online revenues increased 23.8 percent to $133.4 million during the quarter while telephonic revenues grew 14.2 percent to $125.1 million. 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. revenues, which are comprised of the Company's owned and franchised stores, its winery win·er·y n. pl. win·er·ies An establishment at which wine is made. Noun 1. winery - distillery where wine is made wine maker services operations and its Bloomnet(R) florist business, increased 51.6 percent to $19.3 million compared with $12.8 million in the prior year period. The Company said sales in its Food, Wine and Gift Basket category grew at a double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. rate - driven primarily by its Cheryl Cheryl is a female given name and can refer to: In crime:
n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective it began last year and including the contribution from a product-line extension in weather-themed gifts acquired during the quarter. Overall, specialty gifts represented approximately 70 percent of total revenues during the quarter compared with approximately 66 percent in the prior year period while floral flo·ral adj. Of, relating to, or suggestive of a flower: a fabric with a floral pattern. flo gifts represented approximately 30 percent of total revenues compared with 34 percent in the prior year period. 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 quarter grew 40 basis points to 45 percent, compared with 44.6 percent in the prior year period. The increase in gross profit margin was attributed primarily to product mix. 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 during the quarter remained essentially unchanged at 38.5 percent, compared with 38.2 percent in the prior year period. This reflects the revenue growth achieved during the quarter largely offset by the Company's stepped-up stepped-up adj. Increased in pace or intensity; heightened: a stepped-up political campaign. marketing efforts, begun in January of 2005, its continued investments in its wine operations and Bloomnet(R) florist business and the impact of stock-based compensation. As a result of these factors, adjusting to exclude the effect of stock-based compensation, the Company achieved 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 growth of 28.2 percent to $11.2 million compared with $8.7 million or earnings per share growth of 30.8 percent to $0.17 compared with $0.13 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 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 $10.3 million or $0.16 per share. During the fiscal second quarter, the Company attracted 1.3 million new customers, 57 percent of whom, or 760,000, came to the Company online. These customers were attracted to the Company's "Your Florist of Choice(sm)" marketing message as well as its expanded food, wine and gift basket offerings - a unique combination that provides customers the broadest range of thoughtful gifts for all of their celebratory occasions. More than 2.7 million customers placed orders during the period of which 51 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 by providing convenient multi-channel access as well as the products and services that make easier for them to connect with the people who are important in their lives. Jim McCann McCann is the surname of several people, including:
n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. holiday shopping season. In particular, our growth during the quarter reflects the success of our strategy 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. our gift offering, particularly in the food, wine and gift basket gift category where we have already become a major player with revenues anticipated to be more than $100 million for the current fiscal year. This has enabled us to capture an increasing number of new customers as well as maintain our strong repeat-order rate during a holiday period when we are competing with the broadest possible range of gift retailers, both online and store-based." McCann noted that, during the quarter, the Company achieved progress in several key business areas: --"We enhanced the growth of our new Cheryl & Co.(R) brand by providing them with access to our collection of leveragable assets, including our extensive online marketing programs and expertise. As a result, more than a third of their revenues for the quarter came online, up significantly compared with the prior year period. --"In home and garden gifts, we achieved continued positive sales improvements which we further enhanced through a product-line extension in weather-related gifts which are both topical topical /top·i·cal/ (top´i-k'l) pertaining to a particular area, as a topical antiinfective applied to a certain area of the skin and affecting only the area to which it is applied. top·i·cal adj. and fit the gifting profile of our 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 customers. --"We achieved further growth in our Bloomnet(R) florist business where we continued to expand our florist network and began to introduce new products and services designed to help our florist members enhance the growth and profitability of their businesses." Company Guidance: The Company reiterated its revenue growth guidance of 14-to-16 percent for fiscal 2006 compared with the prior year. In terms of 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. results, adjusting for actual results through the first six months of fiscal 2006, the Company said it expects to achieve pro forma earnings growth of approximately 40 percent compared with fiscal 2005. Regarding its current fiscal third quarter, which includes the Valentine Valentine a true friend and constant lover. [Br. Lit.: Two Gentlemen of Verona] See : Faithfulness holiday; the Company expects the period will represent approximately 21-to-23 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 fresh 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. 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 www.cherylandco.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 wine·tast·ing n. A gathering of people to taste and compare a number of wines. 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 its gross margin percentage; its ability to manage 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 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 cost efficiently integrate its acquired companies and brands; 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 Thursday: see week. , January 26, 2006, at 11:00 a.m. ET. The conference call will be available via web cast from the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website at www.1800flowers.com and through the Thomson StreetEvents Network at www.earnings.com. To listen to the call via the Internet it is recommended that interested parties go to the web site prior to the start time to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. For those unable to listen to the web cast live, an indexed recording of the call will be posted on the Investor Relations section of the Company's web site within twenty four hours of the call's completion. A replay of the call can be accessed via telephone for twenty four hours beginning at 1:00 p.m. ET on the day of the call at: 1-888-286-8010 or 1-617-801-6888 (international); enter replay pass code: 43803378.
1-800-FLOWERS.COM, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
January 1, July 3,
2006 2005
------------- ---------
(unaudited)
Assets
Current assets:
Cash and equivalents $60,872 $39,961
Short-term investments - 6,647
Receivables, net 15,536 10,619
Inventories 38,967 28,675
Deferred income taxes 7,149 10,219
Prepaid and other 6,027 5,289
------------- ---------
Total current assets 128,551 101,410
Property, plant and equipment, net 56,555 50,474
Goodwill 67,692 63,219
Other intangibles, net 14,580 14,215
Deferred income taxes 17,161 17,161
Other assets 6,647 5,473
------------- ---------
Total assets $291,186 $251,952
============= =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $93,053 $57,121
Current maturities of long-term debt and
obligations under capital leases 2,243 2,597
------------- ---------
Total current liabilities 95,296 59,718
Long-term debt and obligations under capital
leases 2,388 3,347
Other liabilities 2,606 2,553
------------- ---------
Total liabilities 100,290 65,618
Total stockholders' equity 190,896 186,334
------------- ---------
Total liabilities and stockholders' equity $291,186 $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 Six Months Ended
------------------- -------------------
January December January December
1, 2006 26, 2004 1, 2006 26, 2004
----------- -------- ---------- --------
Net revenues:
Online $133,362 $107,686 $195,635 $160,772
Telephonic 125,122 109,570 163,504 147,156
Retail/fulfillment 19,345 12,758 31,455 19,600
--------- --------- --------- ---------
Total net revenues 277,829 230,014 390,594 327,528
Cost of revenues 152,837 127,402 219,576 185,344
--------- --------- --------- ---------
Gross profit 124,992 102,612 171,018 142,184
Operating expenses:
Marketing and sales 87,874 72,841 126,098 102,733
Technology and development 4,797 3,292 9,566 6,396
General and administrative 10,357 7,954 20,993 15,556
Depreciation and amortization 3,809 3,770 7,333 7,666
--------- --------- --------- ---------
Total operating expenses 106,837 87,857 163,990 132,351
--------- --------- --------- ---------
Operating income 18,155 14,755 7,028 9,833
Other income (expense):
Interest income 141 275 356 657
Interest expense (113) (124) (197) (265)
Other (143) 21 (137) 25
--------- --------- --------- ---------
Total other income (expense),
net (115) 172 22 417
--------- --------- --------- ---------
Income before income taxes 18,040 14,927 7,050 10,250
Income taxes (7,704) (6,223) (3,340) (4,256)
--------- --------- --------- ---------
Net income $10,336 $8,704 $3,710 $5,994
========= ========= ========= =========
Basic and diluted net income
per common share $0.16 $0.13 $0.06 $0.09
========= ========= ========= =========
Weighted average shares used
in the calculation of net
income per common share:
Basic 65,065 66,061 65,076 66,135
========= ========= ========= =========
Diluted 66,395 67,637 66,395 67,627
========= ========= ========= =========
Calculation of Net Income Before Share Based Compensation Charge:
Net income $10,336 $8,704 $3,710 $5,994
Less: Share based compensation
expense 819 - 1,546 -
--------- --------- --------- ---------
Net income before share based
compensation expense $11,155 $8,704 $5,256 $5,994
========= ========= ========= =========
Basic and diluted net income
per common share before share
based compensation expense $0.17 $0.13 $0.08 $0.09
========= ========= ========= =========
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Six Months Ended
-----------------------
January 1, December 26,
2006 2004
---------- ------------
Operating activities:
Net Income $3,710 $5,994
Reconciliation of net income to net cash
provided by operations:
Depreciation and amortization 7,333 7,666
Deferred income taxes 3,070 4,256
Bad debt expense 160 146
Stock based compensation 1,997 -
Other non-cash items 166 -
Receivables (4,455) (11,078)
Inventories (8,190) (7,719)
Prepaid and other 264 (620)
Accounts payable and accrued expenses 33,334 15,765
Other assets (1,576) 1,592
Other liabilities 54 296
---------- ------------
Net cash provided by operating activities 35,867 16,298
Investing activities:
Purchase of investments - (32,866)
Sale of investments 6,695 40,903
Acquisition of business (6,171) (9,674)
Capital expenditures, net of non-cash
expenditures (13,083) (5,653)
Other 86 2
---------- ------------
Net cash used in investing activities (12,473) (7,288)
Financing activities:
Acquisition of treasury stock (1,324) (2,175)
Proceeds from employee stock options/purchase
plan 179 645
Repayment of notes payable and bank borrowings (603) (654)
Payment of capital lease obligations (735) (856)
---------- ------------
Net cash used in financing activities (2,483) (3,040)
---------- ------------
Net change in cash and equivalents 20,911 5,970
Cash and equivalents:
Beginning of period 39,961 80,824
---------- ------------
End of period $60,872 $86,794
========== ============
|
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion