1-800-FLOWERS.COM Reports Revenues of $124.1 Million, Up 7.5 Percent, For its Fiscal 2003 Third Quarter, Driven by Online Revenue Growth of 13.6 Percent to $64.6 Million.Business Editors WESTBURY Westbury, residential village (1990 pop. 13,060), Nassau co., SE N.Y., on Long Island; settled 1650, inc. 1932. The State Univ. of New York's Westbury campus is located in the village. Harness races are held at Roosevelt Raceway there. , N.Y.--(BUSINESS WIRE)--April 22, 2003 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. (R), 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 ): -- Combined online and telephonic revenue increased 8.6 percent to $116.9 million -- 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 230 basis points to 41.1 percent -- Net income increased to $1.2 million or $0.02 per fully 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 -- 680,000 new customers acquired; Repeat customers represented 55.1 percent of combined online and telephonic orders 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading multi-channel See multichannel. retailer of thoughtful gifts for all occasions, today reported record revenues of $124.1 million for its fiscal 2003 third quarter ended March 30, 2003, representing an increase of 7.5 percent compared with revenues of $115.4 million in the prior year period. Online revenues increased 13.6 percent to $64.6 million compared with $56.9 million in the third quarter of fiscal 2002. Telephonic revenues increased 3.1 percent to $52.3 million compared with $50.7 million in the prior year period. For the third quarter, the Company reported a 230 basis point improvement in gross profit margin to 41.1 percent compared with 38.8 percent in the prior year period. The Company attributed the improvement to increased demand for its expanded offering of non-floral gifts, enhanced operating efficiencies and excellent customer service. As a result of the increased revenues and higher gross profit margin, the Company achieved net income for the quarter of $1.2 million, an increase of 617 percent compared with net income of $165,000 in the prior year period. Earnings per fully diluted share for the quarter were $0.02 compared with slightly above breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations in the third quarter last year. Jim McCann McCann is the surname of several people, including:
McCann also noted that an increasing number of new and existing customers "continue to turn to 1-800-FLOWERS.COM for the convenience of multi-channel access, same and next day delivery capability, excellent customer service and a broad range of thoughtful gift products that help them connect with all the important people in their lives." During the quarter, the Company attracted 680,000 new customers with more than 60 percent coming online. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.5 million customers placed orders during the period of which 55.1 percent were repeat customers. This reflects the Company's emphasis 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 relationship with its existing customers. Despite the predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. floral-gift nature of the Valentine's Day Valentine's Day: see Saint Valentine's Day. Valentine's Day Lovers' holiday celebrated on February 14, the feast day of St. Valentine, one of two 3rd-century Roman martyrs of the same name. St. holiday period, customer acceptance of the Company's expanded product offering resulted in 38.1 percent of combined online and telephonic revenues coming from higher margin non-floral gifts compared with 34.3 percent in the third quarter last year. Company Guidance: The Company reiterated the guidance it provided in its January January: see month. 6, 2003 press release, saying that it expects to grow revenue during the second half of fiscal 2003 (ending June June: see month. 29, 2003) in a range of 7-to-9 percent compared with the same period in fiscal 2002. McCann noted that the current fourth quarter, including such traditionally highly floral flo·ral adj. Of, relating to, or suggestive of a flower: a fabric with a floral pattern. flo gift holidays as Passover Passover, in Judaism, one of the most important and elaborate of religious festivals. Its celebration begins on the evening of the 14th of Nisan (first month of the religious calendar, corresponding to March–April) and lasts seven days in Israel, eight days in , Easter, Administrative Professional's Week, and Mother's Day among others, is expected to be the Company's second largest in terms of both revenue and earnings this year. "Looking ahead to the upcoming 2004 fiscal year, we are cautiously cau·tious adj. 1. Showing or practicing caution; careful. 2. Tentative or restrained; guarded: felt a cautious optimism that the offer would be accepted. optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op regarding the potential for improvement in what has been a very challenging retail economy over the past two years. We believe we are well positioned -- with our strong and trusted brand name, our expanded thoughtful gift offering, a deepening relationship with our more than 10 million customers, and a unique 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. system that includes same-day delivery capability with low capital deployment requirements -- to accelerate our revenue growth rate and operating results when the economy and consumer demand improve," he said. About 1-800-FLOWERS.COM(R) For more than 25 years, 1-800-FLOWERS.COM has helped millions of customers connect to the people they care about with a broad range of thoughtful gifts, award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" customer service and its unique technology and fulfillment infrastructure. The Company's product line -- including flowers, plants, gourmet foods, candies, 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 and other unique gifts -- is available to customers around the world via: the 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 (www.1800flowers.com); by calling 1-800-FLOWERS(R) (1-800-356-9377) 24 hours a day; or by visiting one of the Company-operated or franchised stores. The Company's collection of thoughtful gifting brands includes home decor and garden merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain from Plow plow or plough, agricultural implement used to cut furrows in and turn up the soil, preparing it for planting. The plow is generally considered the most important tillage tool. & Hearth(R) (phone: 1-800-627-1712 and web: www.plowandhearth.com), premium popcorn and other food gifts from The Popcorn Factory(R)(phone: 1-800-541-2676 and web: www.thepopcornfactory.com), gourmet food products from GreatFood.com (R)(www.greatfood.com), and children's gifts from HearthSong(R) (www.hearthsong.com) and Magic Cabin (R)(www.magiccabin.com). The Company's Class A common stock is listed on the NASDAQ National Market (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. : These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in the applicable statements. These risks and uncertainties include, but are not limited to: the Company's ability to achieve solid, organic 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 maintain and enhance profit margins for its various products; 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 COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. ; its ability to manage expenses associated with necessary general and administrative and technology investments; its ability to cost efficiently manage inventories; its ability to leverage its operating infrastructure; its ability to achieve its stated results guidance for fiscal 2003, 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, 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 2003 third quarter results and Company guidance for fiscal year 2003, and any recordings thereof, 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)
March 30, June 30,
2003 2002
----- -----
(Unaudited)
Assets
Current Assets:
Cash and equivalents $48,562 $40,601
Short-term investments 12,130 22,798
Receivables, net 9,826 9,345
Inventories 24,417 15,647
Prepaid and other current assets 2,903 2,220
----------- ---------
Total current assets 97,838 90,611
Property, plant and equipment at cost, net 44,454 51,002
Investments 4,394 9,591
Capitalized investment in leases 324 465
Goodwill 37,717 37,772
Other intangibles, net 3,369 4,074
Other assets 19,140 13,642
----------- ---------
Total assets $207,236 $207,157
=========== =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $61,454 $64,156
Current maturities of long-term debt and
obligations under capital leases 2,779 3,154
----------- ---------
Total current liabilities 64,233 67,310
Long-term debt and obligations under capital
leases 10,070 12,244
Other liabilities 4,478 3,695
----------- ---------
Total liabilities 78,781 83,249
Total stockholders' equity 128,455 123,908
----------- ---------
Total liabilities and stockholders' equity $207,236 $207,157
=========== =========
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Consolidated Statements of Operations
(In thousands, except for per share data)
(Unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
March March March March
30, 31, 30, 31,
2003 2002 2003 2002
----- ----- ----- -----
Net revenues:
Online $64,595 $56,874 $181,145 $149,711
Telephonic 52,287 50,715 208,817 185,232
Retail/fulfillment 7,239 7,835 20,813 21,975
-------- -------- --------- ---------
Total net revenues 124,121 115,424 410,775 356,918
Cost of revenues 73,095 70,690 232,977 210,193
-------- -------- --------- ---------
Gross profit 51,026 44,734 177,798 146,725
Operating expenses:
Marketing and sales 35,710 31,533 129,641 113,109
Technology and development 3,323 3,222 10,316 10,444
General and administrative 7,343 6,847 22,212 20,826
Depreciation and amortization 3,594 3,788 11,691 11,149
-------- -------- --------- ---------
Total operating expenses 49,970 45,390 173,860 155,528
-------- -------- --------- ---------
Operating income (loss) 1,056 (656) 3,938 (8,803)
Other income (expense):
Interest income 245 515 880 2,174
Interest expense (213) (308) (789) (920)
Other, net 95 (92) (53) (128)
-------- -------- --------- ---------
Total other income (expense),
net 127 115 38 1,126
-------- -------- --------- ---------
Income (loss) before income
taxes 1,183 (541) 3,976 (7,677)
Benefit from income taxes - 706 - 706
-------- -------- --------- ---------
Net income (loss) $1,183 $165 $3,976 $(6,971)
======== ======== ========= =========
Basic and diluted net income
(loss) per
common share: $0.02 $0.00 $0.06 $(0.11)
======== ======== ========= =========
Shares used in the calculation
of net income (loss) per common
share:
Basic 65,583 64,807 65,528 64,507
======== ======== ========= =========
Diluted 67,117 68,030 67,581 64,507
======== ======== ========= =========
1-800-FLOWERS.COM, Inc. and Subsidiaries
Selected Financial Information
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
-----------------
March March
30, 31,
2003 2002
-------- --------
Operating activities:
Net income (loss) $3,976 ($6,971)
Reconciliation of net income (loss) to net cash
(used in) provided by operations:
Depreciation and amortization 11,691 11,149
Bad debt expense 452 144
Other non-cash items 65 566
Changes in operating items:
Receivables (933) (3,316)
Inventories (8,770) (1,324)
Prepaid and other (683) (185)
Accounts payable and accrued expenses (2,702) 1,266
Other assets (5,534) 3,261
Other liabilities 783 332
-------- --------
Net cash (used in) provided by operating
activities (1,655) 4,922
Investing activities:
Purchase of investments (21,350) (1,088)
Sale of investments 37,215 -
Capital expenditures, net of non-cash expenditures (4,680) (6,470)
Other 284 (174)
-------- --------
Net cash provided by (used in) investing
activities 11,469 (7,732)
Financing activities:
Proceeds from employee stock options/stock
purchase plan 571 1,770
Repayment of notes payable and bank borrowings (721) (615)
Payment of capital lease obligations (1,703) (1,437)
-------- --------
Net cash used in financing activities (1,853) (282)
-------- --------
Net change in cash and equivalents 7,961 (3,092)
Cash and equivalents:
Beginning of period 40,601 63,896
-------- --------
End of period $48,562 $60,804
======== ========
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