1-800-FLOWERS.COM(R) Reports Net Income Growth of 23 Percent to $21.1 Million, or $0.32 per Diluted Share and EBITDA* Growth of 9.3 Percent to $57.7 Million, on Revenues of $919.4 Million for its Fiscal Year 2008.Fiscal 2008 Full-Year Highlights: * Net income for the year increased 23 percent to $21.1 million, or $0.32 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, compared with $17.1 million, or $0.26 per diluted share, in the prior year. * EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become * grew 9.3 percent to $57.7 million compared with $52.8 million in the prior year, reflecting enhanced 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. leverage. (*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.
* Free Cash Flow (defined as net cash provided by operating activities less capital expenditures) increased 165 percent to $38 million compared with approximately $14.3 million in the prior year. * Operating Expense Ratio (excluding depreciation and amortization) improved 70 basis points to 36.5 percent while 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. declined 20 basis points to 42.8 percent compared with the prior year. * Total revenues increased 0.7 percent, or $6.8 million, to $919.4 million. Fiscal 2008 Fourth Quarter Highlights: * Net income for the quarter was $4.3 million, or $0.07 per diluted share, compared with $6.6 million, or $0.10 per diluted share, in the prior year period. Adjusted for factors that the Company considers non-comparable including, among others, the shift of the Easter holiday into the Company's fiscal third quarter, net income and earnings per diluted share and the following financial results would have been essentially unchanged compared with the prior year period. * EBITDA was $12.2 million compared with $17.1 million in the prior year period. * Operating Expense Ratio (excluding depreciation and amortization) was 36 percent compared with 35.3 percent in the prior year period while Gross Profit Margin was 41.5 percent, compared with 42.7 percent in the prior year period. * Total revenues were $219.8 million, compared with $231.8 million in the prior year period. 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 ), the world's leading florist and gift shop, today reported net income growth of 23 percent to $21.1 million, or $0.32 per diluted share for its fiscal year ended June 29, 2008, compared with $17.1 million, or $0.26 per diluted share, in the prior year period. The Company said EBITDA grew 9.3 percent to $57.7 million for fiscal 2008, compared with $52.8 million in the prior year period, reflecting reduced 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. . The Company continued to improve its operating expense ratio (excluding depreciation and amortization) by 70 basis points to 36.5 percent for fiscal 2008 by leveraging its business platform. Gross Profit Margin for fiscal 2008 declined 20 basis points to 42.8 percent compared with the prior year, primarily reflecting increased promotional activity and higher fuel surcharges from third party shippers. Total revenues for the fiscal year increased 0.7 percent, or $6.8 million, to $919.4 compared with $912.6 million in the prior year. Jim McCann, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of 1-800-FLOWERS.COM, said, "We are pleased with our strong 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. and EBITDA growth in fiscal 2008, which was achieved despite a challenging economic environment that impacted consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. throughout the year. Despite slower sales growth, we continued to drive double-digit bottom-line growth and generated free cash flow of $38 million for the year. These results were achieved by leveraging our business platform to reduce costs while targeting our marketing and merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. initiatives to achieve profitable growth. This strategy has enabled us to offset lower consumer spending and rising fuel surcharges from our third-party shipping providers. Most important, this focus positions us well for continued strong bottom-line growth in our current fiscal year. During fiscal 2009, we anticipate further improvements in our operating expense ratio as well as enhanced revenue growth from our acquisitions and organic business initiatives." McCann said the Company's BloomNet Wire Service continued to grow its top and bottom line metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. at a double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" pace during fiscal 2008, with revenue increasing approximately 21 percent to $53.5 million and category contribution margin increasing 30.7 percent to $18.5 million. "BloomNet continues to gain market share by leveraging its position as the wire service industry's leading innovator, offering florists both a superior value proposition and a growing suite of products and services - such as our unique digital directory - that help our florists in the current challenging economy," he said. In terms of product sales, McCann noted that the Company recently enhanced BloomNet's growth outlook through a small asset acquisition in July. These assets will expand BloomNet's existing product offering and enable the company 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 professional florists as their preferred wire service. For the Company's fiscal 2008 fourth quarter, net income was $4.3 million, or $0.07 per diluted share, compared with $6.6 million, or $0.10 per diluted share in the prior year period. EBITDA was $12.2 million compared with $17.1 million in the prior year period. Gross profit margin was 41.5 percent, down 120 basis points compared with 42.7 percent in the prior year period while operating expense ratio increased 70 basis points to 36 percent compared with 35.3 percent in the prior year period. Total revenues for the fiscal fourth quarter were $219.8 million, compared with $231.8 million in the prior year period. It is important to note that the Company's fiscal 2008 fourth quarter results reflect the impact of several factors that the Company considers non-comparable, including among others, the shift of the Easter Holiday into the Company's fiscal third quarter, the operating costs operating costs npl → gastos mpl operacionales associated with its acquisition of DesignPac Gifts LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (with minimal offsetting seasonal revenues) and the inclusion in the prior year period of revenues and profits associated with BloomNet's Floral Design Floral design is the art of using plant materials and flowers to create a pleasing and balanced composition. Evidence of refined floristry is found as far back as the culture of Ancient Egypt. There are many styles of floral design. Guide, which is sold once every three years. Adjusting for these factors, the Company believes its results for the fiscal 2008 fourth quarter would have been essentially unchanged compared with the prior year period. Category Results: The Company provides selected financial results for its Floral flo·ral adj. Of, relating to, or suggestive of a flower: a fabric with a floral pattern. flo and Gifts business categories in the tables attached to this release and as follows: * Consumer Floral: For fiscal 2008, revenues in this category increased slightly to $491.7 million compared with $491.4 million in the prior year. Revenues for the fiscal fourth quarter were $149 million, down 3.2 percent compared with $154 million in the prior year period, primarily reflecting the shift of the Easter holiday into the Company's third quarter. Gross profit margin for both fiscal 2008 and the fiscal fourth quarter was 38.7 percent, compared with 39.3 percent and 40.2 percent, respectively, in the corresponding prior year periods. Category contribution margin for the fiscal year was $63 million compared with $65.2 million in the prior year. For the fiscal fourth quarter, category contribution margin was $20.2 million compared with $24.7 million in the prior year period. The Company defines category contribution margin as earnings before interest, taxes, depreciation and amortization and before allocation of corporate overhead expenses. * BloomNet Wire Service: For fiscal 2008, revenues increased 20.5 percent to $53.5 million compared with $44.4 million in the prior year. Revenues for the fiscal fourth quarter increased 4.2 percent to $15.5 million compared with $14.8 million in the prior year period. Adjusted for the prior year period's inclusion of approximately $2 million related to BloomNet's Floral Selection Guide, sales of which occur only every third year, revenue growth would have been comparable to the fiscal 2008 full year growth rate. Gross profit margin for fiscal 2008 was 56.2 percent compared with 56 percent in the prior year. For the fiscal fourth quarter, gross profit margin was 56.8 percent compared with 56.3 percent in the prior year period. Category contribution margin for fiscal 2008 increased 30.7 percent to $18.5 million compared with $14.2 million in the prior year period. For the fiscal fourth quarter, category contribution margin increased 10.4 percent to $5.9 million compared with $5.4 million in the prior year period. * Gourmet Food and Gift Baskets 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 : For fiscal 2008, revenues increased 1.9 percent to $196.3 million compared with $192.7 million in the prior year. Revenues for the fiscal fourth quarter declined 11.9 percent to $22.9 million compared with $25.9 million in the prior year period, primarily reflecting the shift of the Easter holiday into the Company's third quarter during the fiscal year. Gross profit margin for fiscal 2008 was 46.7 percent compared with 45.8 percent in the prior year period. For the fiscal fourth quarter, gross profit margin was 42.5 percent compared with 44.7 percent in the prior year period. Category contribution margin for fiscal 2008 was $24.6 million, down 6.8 percent compared with $26.4 million in the prior year period, primarily reflecting the operating costs associated with the Company's acquisition of DesignPac Gifts, (with minimal offsetting seasonal revenues) in April 2008. For the fiscal fourth quarter, category contribution margin was a loss of $1.7 million, compared with a profit of $793,000 in the prior year period, reflecting both 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 DesignPac Gifts acquisition and the shift of the Easter holiday into the Company's fiscal third quarter. * Home and Children's Gifts: Revenues for fiscal 2008 were $180.2 million, down 3.6 percent compared with $186.9 million in the prior year, primarily reflecting the elimination of the Madison Place and Problem Solvers titles that had launched in fiscal 2007. Revenues during fiscal 2008 for the category's core business brands, including Plow&Hearth, Wind and Weather, HearthSong and Magic Cabin, were comparable with the prior year period. For the fiscal fourth quarter, revenues were $32.9 million, down 12.2 percent compared with $37.4 million in the prior year period. Gross profit margin for fiscal 2008 was 45.2 percent compared with 45.9 percent in the prior year period. For the fiscal fourth quarter, gross profit margin was 46 percent compared with 45.5 percent in the prior year period. Category contribution margin for fiscal 2008 was $3.4 million, representing an improvement of $4.7 million compared with a loss of $1.2 million in the prior year period. This reflects significant improvements achieved in the category's operating expenses including reduced marketing expenses related to the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: titles. For the fiscal fourth quarter, category contribution margin was a profit of $226,000 compared with a loss of $111,000 in the prior year period. In terms of its key customer metrics, the Company said 6.8 million e-commerce customers placed orders during fiscal 2008, of which approximately 50 percent were repeat customers. During fiscal 2008, the Company attracted more than 3.4 million new customers. For the fiscal fourth quarter, more than two million e-commerce customers placed orders with repeat customers representing 61 percent of the total. During the quarter, the Company attracted approximately 800,000 new e-commerce customers. "We believe these customer metrics illustrate our ability to leverage the strength of our brand to attract millions of new customers while 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 our relationships with our existing customers by helping them to connect and express themselves to the important people in their lives," noted McCann. COMPANY GUIDANCE: For fiscal 2009, while the Company does not anticipate any significant improvement in the current economic environment, it expects to achieve revenue growth in excess of 10 percent compared with the prior year period. Revenue growth is expected to come from a combination of organic initiatives and contributions from its recent acquisitions. Among the organic initiatives that the Company believes will help drive profitable growth are: [TABLE OMITTED] * Combined with its anticipated revenue growth, the Company expects fiscal 2009 EBITDA growth of approximately 15 percent and EPS growth of approximately 20 percent. Despite the macro economy, the Company anticipates improving gross profit margins in most of its businesses through a combination of sourcing, product mix and pricing initiatives. However, reflecting the lower wholesale gross margin associated with its recently acquired DesignPac Gifts business, the Company expects consolidated gross profit margin will decline slightly in fiscal 2009. The Company expects to further enhance its operating expense ratio by approximately 50-to-100 basis points in fiscal 2009 through the ongoing leveraging of its business platform. * In terms of seasonality for fiscal 2009, the Company anticipates that its quarterly revenues will be in the following ranges: < < < < < < < < -- Q1 = 14-to-16 percent of total revenues < < < < < < < < -- Q2 = 38-to-40 percent of total revenues < < < < < < < < -- Q3 = 21-to-23 percent of total revenues < < < < < < < < -- Q4 = 23-to-25 percent of total revenues McCann said, "It is important to note that we were able to drive strong results in EPS, EBITDA and free cash flow, despite the macro economy, by continuing to focus on the key strategic priorities that we have told you about in the past, including: [TABLE OMITTED] "Looking ahead, we will continue to focus on these strategic priorities and we anticipate achieving improved, profitable revenue growth and continued double digit bottom-line growth for fiscal 2009 and beyond," said McCann. Definitions: EBITDA: Net income (loss) before interest, taxes, depreciation and amortization. The Company presents EBITDA because it considers such information a meaningful supplemental measure of its performance and believes it is frequently used by the investment community in the evaluation of similarly situated similarly situated adj. with the same problems and circumstances, referring to the people represented by a plaintiff in a "class action," brought for the benefit of the party filing the suit as well as all those "similarly situated. companies. The Company also uses EBITDA as one of the factors used to determine the total amount of bonuses available to be awarded to executive officers and other employees. The Company's credit agreement uses EBITDA (with additional adjustments) to measure compliance with covenants such as interest coverage and debt incurrence In`cur´rence n. 1. The act of incurring, bringing on, or subjecting one's self to (something troublesome or burdensome); as, the incurrence of guilt, debt, responsibility, etc. s> Noun 1. . EBITDA is also used by the Company to evaluate and price potential acquisition candidates. EBITDA has limitations as an analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. tool, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Some of these limitations are: (a) EBITDA does not reflect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA does 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 Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. , the assets being depreciated Depreciated may refer to:
About 1-800-FLOWERS.COM, Inc. 1-800-FLOWERS.COM, Inc. is the world's leading florist and a provider of specialty gifts for all occasions. For more than 30 years, 1-800-FLOWERS.COM, Inc. has been providing customers with fresh flowers and the finest selection of plants, gift baskets, gourmet foods, confections, balloons 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]) (1-800-356-9377 or www.1800flowers.com), one of the top 50 online retailers by Internet Retailer, as well as 2008 Laureate lau·re·ate adj. 1. Worthy of the greatest honor or distinction: "The nation's pediatrician laureate is preparing to lay down his black bag" James Traub. 2. Honoree hon·or·ee n. The recipient of an honor. Noun 1. honoree - a recipient of honors in recognition of noteworthy accomplishments recipient, receiver - a person who receives something by the Computerworld Honors Program and the recipient of ICMI's 2006 Global Call Center of the Year Award, offers the best of both worlds: exquisite ex·qui·site n. Extremely intense, keen, or sharp. Used of pain or tenderness. arrangements created by some of the nation's top floral artists and hand-delivered the same day, and spectacular flowers shipped overnight "Fresh From Our Growers([R])" As always, 100% satisfaction and freshness are guaranteed. The Company's BloomNet[R] (www.mybloomnet.net) international floral wire service provides a broad range of quality products and value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. designed to help professional florists grow their businesses profitably. The 1-800-FLOWERS.COM, Inc. "Gift Shop" also includes gourmet gifts such as 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); premium chocolates and confections from Fannie May
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. : This press release contains forward-looking statements 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 forward-looking statements represent the Company's expectations or beliefs concerning future events and can generally be identified by the use of statements that include words such as "estimate," "project," "believe," "anticipate," "intend," "plan," "foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. ," "likely," "will," "goal," "target" or similar words or phrases. Forward-looking statements include, but are not limited to, statements regarding the Company's expectations for continued improvement in revenues, EBITDA and EPS and the Company's guidance with respect to fiscal 2008, including its fiscal fourth quarter. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company's control, that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, among others: the Company's ability to achieve its revenue and profitability growth guidance for fiscal year 2009, its ability to improve its operating expense ratio 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; it's ability to generate forecasted levels of free cash flow; 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 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. for the fiscal year ended July 1, 2007 and its subsequent 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 today, Thursday, August 7, 2008 at 11:00 a.m. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). 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 at www.1800flowers.com A 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. (EDT) on 8/7/08 through midnight on 8/10/08 at: 1-888-203-1112 (domestic) or 1-719-457-0820 (international). Enter replay pass code #: 4313267. [Note: Attached tables are an integral part of this press release without which the information presented in this press release should be considered incomplete.] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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