1-800-FLOWERS.COM(R) Reports Strong Revenue and Earnings Growth for its Fiscal 2007 Third Quarter.* Net income for the quarter increased 168.4 percent, or $2.6 million, to $1.1 million, or $0.02 per share, compared with a loss of $1.5 million, or ($0.02) per share, in the prior year period. 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 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. *, excluding the effect of stock-based compensation, was $2.0 million, or $0.03 per share * 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 to $8.0 million, compared with $735,000 in the prior year period, reflecting the combination of strong revenue growth, increased 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. and 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. (*A reconciliation of 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.
* Total revenues for the quarter grew 18.8 percent, or $33.8 million to $213.8 million, compared with $180 million in the prior year period, driven by strong growth in the Company's key Consumer Floral flo·ral adj. Of, relating to, or suggestive of a flower: a fabric with a floral pattern. flo , BloomNet Wire Service and 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 categories. 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 a provider of specialty gifts for all occasions, today reported revenue growth of 18.8 percent, or $33.8 million, to $213.8 million for its fiscal third quarter ended April 1, 2007, compared with revenues of $180 million in the prior-year period. This increase was driven by strong growth in the Company's key Consumer Floral, BloomNet Wire Service and Gourmet Food & Gift Basket business categories and included the contribution from Fannie May
During the fiscal third quarter, the Company improved its operating expense ratio (excluding depreciation and amortization) by 180 basis points to 36.8 percent compared with 38.6 percent in the prior year period. This reflects strong revenue growth as well as management's focus on leveraging its operating platform. Gross margin for the quarter also improved, increasing 150 basis points to 40.5 percent compared with 39 percent in last year's fiscal third quarter. The Company attributed the improved gross margin to a combination of factors, including enhanced sourcing, pricing initiatives and product mix. Combined with the strong revenue growth, these factors resulted in EBITDA for the quarter of $8.0 million representing an improvement of $7.3 million compared with $735,000 in the prior year period. Net income for the quarter increased 168.4 percent, or $2.6 million, to $1.1 million, or $0.02 per share, compared with a loss of $1.5 million, or $0.02 per share, in the prior year period. Pro forma EPS, excluding the effect of stock-based compensation, was $2.0 million, or $0.03 per share. (*A reconciliation of EBITDA and pro forma EPS to net income is included as part of the attached tables.) 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 very pleased with our fiscal third quarter results, particularly with the continued improvement in our year-over-year bottom-line performance. This reflects the combination of strong revenue growth in our three key business categories - Consumer Floral, BloomNet Wire Service and Gourmet Food and Gift Baskets - as well as further improvements in our gross margin and operating expense ratio." McCann said that the strong top- and bottom-line results for the quarter illustrated the effectiveness of the Company's online and offline marketing programs as well as its "good-better-best" merchandising strategy that features an increasing number of "signature" gift items, particularly in its Consumer Floral business. In this category, McCann noted that the Company grew its e-commerce revenues by approximately 10 percent, thereby extending its industry leading position. "Furthermore, it's worth noting that we achieved solid revenue growth and improved profitability in our Consumer Floral business despite the impact of inclement in·clem·ent adj. 1. Stormy: inclement weather. 2. Showing no clemency; unmerciful. in·clem weather experienced throughout much of the Midwest and Eastern portions of the country during the important Valentine's holiday," he said. During the quarter, the Company also achieved double-digit revenue growth in its BloomNet Wire Service and Gourmet Food and Gift Basket categories. "Our BloomNet Wire Service business continues to gain momentum as top quality florists throughout the country embrace our value proposition," said McCann. BloomNet sales for the period increased approximately 39 percent to $12.7 million and gross profit margin improved 190 basis points to 51.9 percent. During the quarter, the Company introduced several new products and services designed to help its BloomNet florists enhance their revenue growth and profitability, including web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. and a point-of-sale store management system. Revenues in the Company's Gourmet Food and Gift Basket business grew more than 150 percent, or $21.4 million, to $35.6 million during the quarter, benefiting from continued double-digit growth in its Cheryl&Co. and The Popcorn POPCORN - AI system built on POP-2. "The POPCORN Reference Manual", S. Hardy, Essex U, Colchester, 1973. Factory brands as well as an 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. contribution of $17.3 million from the Fannie May Confections business acquired in May of last year. In its Home and Children's Group category, McCann said the Company continued to take proactive steps to improve the performance of this business. "During the quarter, we strengthened the management team, improved the creative look and feel of the catalogs and revised the circulation plans for all titles to place more focus on the category's existing customer base. As a result of these and other changes we are implementing, we have begun to see improvements in customer response rates and bottom-line performance. To augment these efforts and help in our analysis and planning, we have hired a consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a with specific expertise in the direct-to-consumer/catalog space. In addition, through their investment banking capabilities, they will assist us in evaluating all of our strategic options for this business," said McCann. In terms of its key customer 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. , the Company said more than 2 million e-commerce customers placed orders during the fiscal third quarter of which 59 percent were repeat customers. During the period, the Company cost effectively attracted more than 830,000 new customers. These customer metrics reflect the Company's ability to leverage its unique collection of assets across all of its business categories and brands, including its database of more than 25 million customers, its floral-category brand leadership and its extensive online and offline marketing programs CATEGORY RESULTS: FLORAL: * 1-800-FLOWERS.COM Consumer Floral: During the fiscal 2007 third quarter, revenues in this category increased 8.9 percent to $139.9 million compared to $128.6 million in the prior year period. E-commerce revenues for the category increased 9.6 percent. Gross margin for the quarter increased 120 basis points to 38.5 percent compared with 37.3 percent in last year's third quarter. Reflecting strong revenue and margin growth and improved operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. , Category EBITDA improved 34 percent to $19.1 million compared with $14.3 million in the prior year period. The Company defines Category EBITDA as earnings before interest, taxes, depreciation and amortization and before allocation of corporate overhead expenses. * BloomNet Wire Service: Revenues increased 38.9 percent to $12.7 million compared with $9.2 million in the year ago period. Gross margin increased 190 basis points to 51.9 percent compared with 50 percent in the prior year period. Category EBITDA increased 70.2 percent to $3.8 million compared with $2.3 in last year's third quarter, reflecting the growth in florist membership and product and service offerings compared with the prior year. SPECIALTY BRANDS: * Gourmet Food and Gift Baskets: Revenues increased 151 percent to $35.6 million compared with $14.2 million in the prior year period. Gross margin increased 70 basis points to 43.2 percent compared with 42.5 percent in the year ago first quarter. Category EBITDA increased to $1.8 million compared with a loss of $1.6 million in the prior year period. Results in this category reflect revenue contribution of $17.3 million from the Fannie May Confections Brands business which was acquired in May 2006. Excluding the Fannie May contribution, revenues in this category increased more than 25 percent compared with the prior year. * Home and Children's Gifts: Revenues declined 7.1 percent to $26.3 million compared with $28.4 million in the prior year period. The lower revenues reflect management's planned reduction in marketing as the Company focuses on improving profitability. Gross margin was essentially unchanged at 39.9 percent compared with 40 percent in the same period last year. Category EBITDA was a loss of $3.2 million compared with a loss of $2.7 million in the prior year period. Company Guidance: The Company reiterated its guidance for fiscal 2007 which calls for growth of more than 100 percent in EBITDA and EPS reflecting its stated focus on achieving continued improvements in gross margin and operating leverage. The Company said it anticipates total revenue growth for fiscal 2007 at the low end of its original guidance range of approximately 17-to-20 percent, reflecting the lower sales in its Home and Children's Group. Regarding its current fiscal fourth quarter, which includes the spring holiday season featuring Mother's Day, the Company expects the period will represent approximately 25-to-27 percent of full-year revenues. Definitions: Pro Forma EPS: To supplement its consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge presented in accordance with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , the Company has presented pro forma EPS. The Company defines pro forma EPS as net income per common share excluding stock-based compensation expense, net of the related tax effect, as calculated under FAS No. 123R. The Company believes pro forma EPS provides 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 net income per common share. EBITDA: Net income 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 companies with comparable market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. . 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. EBITDA is also used by the Company to evaluate and price potential acquisition candidates. EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under 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[R] For more than 30 years, 1-800-FLOWERS.COM Inc. - "Your Florist of Choice([R])" - has been providing customers around the world with the freshest flowers and finest selection of plants, gift baskets, gourmet foods, 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 overnight "Fresh From Our Growerssm." Customers can "call, click or come in" to shop 1-800-FLOWERS.COM twenty four hours a day, 7 days a week at 1-800-356-9377 or www.1800flowers.com. 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 are guaranteed. The 1-800-FLOWERS.COM collection of brands also includes home decor and children's gifts 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), Problem Solvers[R] (www.problemsolvers.com), Wind & Weather[R] (www.windandweather.com), Madison Place[R] (www.madisonplace.com), HearthSong[R] (www.hearthsong.com) and Magic Cabin[R] (www.magiccabin.com); gourmet gifts including 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 Confections Brands([R])(www.fanniemay.com and www.harrylondon.com); gourmet foods from GreatFood.com[R] (www.greatfood.com); 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. .com (www.ambrosia.com); gift baskets from 1-800-BASKETS.COM[R] (www.1800baskets.com) and the BloomNet[R] international floral wire service, which provides quality products and diverse services to a select network of florists. 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 the Company's fiscal 2007 third quarter results includes comments regarding current and future expectations 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 revenue and profitability growth guidance for fiscal 2007; its ability to improve operating leverage 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 implement changes and improve the performance of its Home and Children's Group; 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 reduce investment for catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. prospecting and improve profitability at its Home and Children's Group business category; its ability to cost efficiently manage inventories; 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 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, April 26, 2007 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 twenty four hours beginning at 1:00 p.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 ) on 4/26/07 at: 1-888-286-8010 (domestic) or 1-617-801-6888 (international). Enter pass code #25023871. [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] [TABLE OMITTED] |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion