1-800-FLOWERS.COM(R) Reports Revenue Growth of 14.6 Percent To $180 Million for Its Fiscal 2006 Third Quarter; GAAP Net Loss Improved 25% to $1.5 Million or $0.02 Per Share.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. net loss, excluding the effect of stock-based compensation, improved 60%, or $1.2 million, to $821,000 or $0.01 per share --Online revenues grew 20.3 percent to $110.3 million; telephonic revenues declined 1.7 percent to $51.5 million --Gross Profit Margin percentage increased 140 basis points to 39 percent 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 $180.0 million for its fiscal 2006 third quarter ended April 2, 2006, representing an increase of 14.6 percent, or $23.0 million, compared with revenues of $157.0 million in the prior year period. Online revenues increased 20.3 percent to $110.3 million compared with $91.6 million in the third quarter of fiscal 2005. Telephonic revenues declined 1.7 percent to $51.5 million compared with $52.4 million in the prior year period reflecting the continued migration of customers to the Company's online channels. During the quarter, the Company's 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. increased 140 basis points to 39 percent compared with 37.6 percent in the third quarter a year ago. The Company attributed the improvement in gross profit margin primarily to a combination of product mix, pricing initiatives and continued focus on effective marketing programs. The Company said that during the third quarter, its expanded marketing efforts enabled it to attract 824,000 new customers with 73 percent, or more than 600,000, coming online. This was achieved while concurrently con·cur·rent adj. 1. Happening at the same time as something else. See Synonyms at contemporary. 2. Operating or acting in conjunction with another. 3. Meeting or tending to meet at the same point; convergent. stimulating repeat orders from existing customers who represented approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 58 percent of total revenues, consistent with the prior year period. As a result of the strong revenue growth and increased gross profit margin, 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 quarter (excluding the effect of stock-based compensation) improved 60%, or $1.2 million, to ($821,000) or ($0.01) per share, compared with a loss of $2.0 million, or $0.03 per share in the prior year period. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss for the quarter improved 25 percent to ($1.5) million or ($0.02) per share compared with the prior year period. Jim McCann McCann is the surname of several people, including:
adj. Being between 10 and 99 percent: double-digit inflation. revenue growth - driven by our expanded marketing programs both on- and off-line See offline. (jargon) off-line - (Or "offline") 1. Not directly connected to the computer (e.g., an off-line tape drive), or with connection suspended ("take the printer off-line"). Contrast background, on-line. 2. Not now or not here. , and an improvement in gross profit margin. It is noteworthy that our strong revenue growth of almost 15 percent was achieved despite the impact of several factors including the shift of the Easter Easter [A.S. Eastre, name of a spring goddess], chief Christian feast, commemorating the resurrection of Jesus after his crucifixion. In the West, Easter is celebrated on the Sunday following the full moon next after the vernal equinox (see calendar); thus, it holiday from the third quarter, where it fell last year, into our fiscal fourth quarter this year." McCann said the Company's floral flo·ral adj. Of, relating to, or suggestive of a flower: a fabric with a floral pattern. flo gift category accounted for approximately 65 percent of total sales during the quarter. "Despite the highly competitive nature of the Valentine Valentine a true friend and constant lover. [Br. Lit.: Two Gentlemen of Verona] See : Faithfulness holiday, during the quarter we achieved 12 percent revenue growth in our floral gift category. This growth, off of the largest base of business in the category, enabled us to further extend our market leadership position. In addition, we further grew our Bloomnet florist business, expanding our membership base and introducing new products and services designed to enhance our florist members' growth and profitability." McCann also noted that the Company saw continued double-digit revenue growth 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. During the quarter the Company announced the signing of a definitive agreement to acquire Fannie May
adj. 1. Widely known; familiar or famous: a well-known performer. 2. Fully known: well-known facts. Fannie May, Harry London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. and Fanny Farmer Fanny Farmer is an American candy manufacturer and retailer. Fanny Farmer was started in Rochester, New York by Frank O'Connor in 1919. The company was named in honor of culinary expert Fannie Farmer, who had died four years earlier. brands. The acquisition is expected to close on, or about, May 1, 2006. "We are rapidly becoming a leader in the gourmet gift category through the success of our organic growth initiatives and key acquisitions. With the addition of the these great confection con·fec·tion n. A sweetened medicinal compound. Also called electuary. brands, combined with the great gourmet gifts we sell under the 1-800-FLOWERS.COM brand as well as bakery gifts from Cheryl&Co., popcorn from The Popcorn Factory, wine gifts from Ambrosia ambrosia (ămbrō`zhə), in Greek mythology, food and drink with which the Olympian gods preserved their immortality. Extraordinarily fragrant, ambrosia was probably conceived of as a purified and idealized form of honey. and The WineTasting wine·tast·ing n. A gathering of people to taste and compare a number of wines. Network and gift baskets from our new 1-800Baskets.com site, we expect annual revenues in this category will exceed $200 million during fiscal 2007," said McCann. 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 for the full fiscal year, excluding the financial impact associated with the anticipated acquisition of Fannie May Confection Brands, the Company said it expects to achieve 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. growth (excluding the effect of stock-based compensation) of approximately 40 percent compared with fiscal 2005. Regarding its current fiscal fourth quarter, which includes the key Mother's Day holiday; the Company expects the period will represent approximately 26-to-28 percent of full-year revenues. The Company expects the financial impact of the anticipated acquisition of Fannie May Confections Brands, including 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 its business, and interest expense associated with the debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay the Company will use for the acquisition, will reduce earnings by approximately $0.02-$0.03 per share for the fourth quarter. The Company said it expects the acquisition will be accretive to earnings per share in Fiscal 2007. In this press release, to supplement the Company's financial statements in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP, the Company presents pro forma net loss (net loss before stock-based compensation expense), a non-GAAP measure. The Company believes that the inclusion of pro forma net loss provides consistency in the Company's financial reporting and enhances the comparability of results with prior-period results that did not include FAS 123(R) stock-based compensation. This measure should be considered in addition to the Company's results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. A reconciliation of pro forma net loss to GAAP net loss can be found in the table on page 5 of this release under the heading "Reconciliation of Net (Loss) Income Before Stock-Based Compensation Expense to GAAP Net (Loss) Income." 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 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); premium 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:
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 solid, sustainable revenue growth; 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 close on and successfully integrate its proposed acquisition of Fannie May Confections Brands, Inc.; its ability to grow its Food, Wine and Gift Basket revenues to more than $200 million in fiscal 2007; its ability to cost effectively acquire and retain customers; its ability to compete against existing and new competitors; its ability to manage expenses associated with necessary general and administrative and technology investments; its ability to cost efficiently manage inventories; its ability to improve its gross profit margin; its ability to successfully integrate and grow its acquired companies; its ability to grow its revenues and leverage its operating infrastructure to enhance profitability; its ability to achieve its stated guidance for its fiscal 2006 fourth quarter and full year, 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.
1-800-FLOWERS.COM, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
April 2, July 3,
2006 2005
------------- ------------
(unaudited)
Assets
Current assets:
Cash and equivalents $18,583 $39,961
Short-term investments - 6,647
Receivables, net 13,095 10,619
Inventories 43,297 28,675
Deferred income taxes 8,236 10,219
Prepaid and other 7,043 5,289
------------- ------------
Total current assets 90,254 101,410
Property, plant and equipment, net 55,851 50,474
Goodwill 69,885 63,219
Other intangibles, net 14,352 14,215
Deferred income taxes 15,796 17,161
Other assets 8,182 5,473
------------- ------------
Total assets $254,320 $251,952
============= ============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $55,883 $57,121
Current maturities of long-term debt
and obligations under capital leases 2,050 2,597
------------- ------------
Total current liabilities 57,933 59,718
Long-term debt and obligations under
capital leases 1,939 3,347
Other liabilities 3,889 2,553
------------- ------------
Total liabilities 63,761 65,618
Total stockholders' equity 190,559 186,334
------------- ------------
Total liabilities and stockholders' equity $254,320 $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 Nine Months Ended
--------------------- ---------------------
April 2, March 27, April 2, March 27,
2006 2005 2006 2005
---------- ---------- ---------- ----------
Net revenues:
Online $110,278 $91,638 $305,913 $252,410
Telephonic 51,542 52,424 215,046 199,580
Retail/fulfillment 18,197 12,971 49,652 32,571
---------- ---------- ---------- ----------
Total net revenues 180,017 157,033 570,611 484,561
Cost of revenues 109,743 97,947 329,319 283,291
---------- ---------- ---------- ----------
Gross profit 70,274 59,086 241,292 201,270
Operating expenses:
Marketing and sales 53,188 45,813 179,286 148,546
Technology and
development 5,170 4,160 14,736 10,556
General and
administrative 11,181 9,864 32,174 25,420
Depreciation and
amortization 3,877 3,350 11,210 11,016
---------- ---------- ---------- ----------
Total operating
expenses 73,416 63,187 237,406 195,538
---------- ---------- ---------- ----------
Operating (loss) income (3,142) (4,101) 3,886 5,732
Other income (expense):
Interest income 474 570 830 1,227
Interest expense (96) (116) (293) (381)
Other 137 55 0 80
---------- ---------- ---------- ----------
Total other income, net 515 509 537 926
---------- ---------- ---------- ----------
(Loss) income before
income taxes (2,627) (3,592) 4,423 6,658
Income taxes (benefit) (1,087) (1,546) 2,253 2,710
---------- ---------- ---------- ----------
Net (loss) income ($1,540) ($2,046) $2,170 $3,948
========== ========== ========== ==========
Basic and diluted net
(loss) income per
common share ($0.02) ($0.03) $0.03 $0.06
========== ========== ========== ==========
Weighted average shares
used in the calculation
of net (loss) income
per common share:
Basic 65,092 66,102 65,082 66,124
========== ========== ========== ==========
Diluted 65,092 66,102 66,399 67,565
========== ========== ========== ==========
Reconciliation of Net (Loss) Income before Stock-Based Compensation
Expense to GAAP Net (Loss) Income:
Net (loss) income ($1,540) ($2,046) $2,170 $3,948
Add: Share based
compensation expense 719 - 2,265 -
---------- ---------- ---------- ----------
Net (loss) income before
share based compensation
expense ($821) ($2,046) $4,435 $3,948
========== ========== ========== ==========
Basic and diluted net
(loss) income per common
share before share based
compensation expense ($0.01) ($0.03) $ 0.07 $0.06
========== ========== ========== ==========
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Nine Months Ended
---------------------
April 2, March 27,
2006 2005
---------- ----------
Operating activities:
Net Income $2,170 $3,948
Reconciliation of net income to net cash
provided by operations:
Depreciation and amortization 11,210 11,016
Deferred income taxes 1,983 2,710
Bad debt expense 361 249
Stock based compensation 3,058 101
Other non-cash items 277 -
Receivables (2,216) (3,785)
Inventories (12,520) (8,703)
Prepaid and other (751) (1,765)
Accounts payable and accrued expenses (3,835) 1,765
Other assets (2,844) 1,840
Other liabilities 1,336 44
---------- ----------
Net cash (used in) provided by operating
activities (1,771) 7,420
Investing activities:
Purchase of investments - (84,593)
Sale of investments 6,647 89,259
Acquisition of business (4,959) (9,674)
Capital expenditures, net of non-cash
expenditures (17,045) (8,106)
Other (63) 143
---------- ----------
Net cash used in investing activities (15,420) (12,971)
Financing activities:
Acquisition of treasury stock (1,324) (2,175)
Proceeds from employee stock options/purchase
plan 321 754
Proceeds from revolving line of credit 20,000 -
Repayment of notes payable, bank borrowings
and revolving line of credit (22,147) (967)
Payment of capital lease obligations (1,037) (1,284)
---------- ----------
Net cash used in financing activities (4,187) (3,672)
---------- ----------
Net change in cash and equivalents (21,378) (9,223)
Cash and equivalents:
Beginning of period 39,961 80,824
---------- ----------
End of period $18,583 $71,601
========== ==========
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