Generates Revenues of $775.5 million and Net
Income of $64.3 million
Reports Adjusted EBITDA(1) of $116.3
million
Updates Fiscal Year 2025 Outlook
(1) Refer to “Definitions of Non-GAAP Financial
Measures” and the tables attached at the end of this press release
for reconciliation of non-GAAP results to applicable GAAP
results.
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of
gifts designed to help inspire customers to give more, connect
more, and build more and better relationships, today reported
results for its Fiscal 2025 second quarter ended December 29,
2024.
“Our second quarter revenue declined 5.7%, showing
year-over-year improvement, but not at the pace that we had been
anticipating,” said Jim McCann, Chairman and Chief Executive
Officer of 1-800-FLOWERS.COM, Inc. “Our business experienced a
softer than anticipated and highly promotional consumer
environment, along with a pullback in corporate gifting orders,
which were slightly offset by an improvement in our wholesale
business. These trends were further exacerbated by issues with our
new Harry & David order management system implementation.”
Mr. McCann continued, “Shifting patterns in consumer engagement
have affected our performance. We are implementing actions to
accelerate our Work Smarter efficiency initiatives that will in
turn fund investments in our growth-oriented Relationship
Innovation™ initiatives and marketing and sales strategies. As we
focus on expanding our customer base, we see significant
opportunities to leverage new technology to enhance engagement and
build deeper relationships with our customers. We are confident
that our dedicated team and innovative solutions will help us
navigate these headwinds and emerge stronger.”
Fiscal 2025 Second Quarter
Highlights
- Total consolidated revenues decreased 5.7% to $775.5 million,
as compared with the prior year period.
- Gross profit margin of 43.3% was flat with the prior year
period.
- Operating expenses declined $19.9 million to $244.5 million, as
compared with the prior year period. Excluding the impact of
non-recurring charges in the current period associated with new
systems implementation costs, impairment charges in the prior year
period, as well as the impact of the Company’s non-qualified
deferred compensation plan in both periods, operating expenses
declined by $2.9 million to $239.1 million, as compared with the
prior year period.
- Net income for the quarter was $64.3 million, or $1.00 per
diluted share, as compared with net income of $62.9 million, or
$0.97 per diluted share in the prior year period.
- Adjusted Net Income1 was $69.2 million, or $1.08 per diluted
share, compared with an Adjusted Net Income1 of $82.7 million, or
$1.27 per diluted share, in the prior year period.
- Adjusted EBITDA1 for the quarter was $116.3 million, as
compared with Adjusted EBITDA1 of $130.1 million in the prior year
period.
Segment Results
The Company provides Fiscal 2025 second quarter financial
results for its Gourmet Foods and Gift Baskets, Consumer Floral and
Gifts, and BloomNet® segments in the tables attached to this
release and as follows:
- Gourmet Foods and Gift Baskets: Revenues for the quarter
declined 4.0% to $518.5 million as compared with the prior year
period. The Company estimates that the issues associated with the
implementation of its new order management system resulted in lost
revenue of approximately $20 million. Gross profit margin increased
30 basis points to 43.5%, benefiting from the Company’s inventory
and labor optimization efforts that offset the incremental costs
associated with the order management system issues. Excluding the
impact of the systems implementation costs, adjusted segment
contribution margin1 was $111.4 million, as compared with segment
contribution margin1 of $118.2 million in the prior year
period.
- Consumer Floral & Gifts: Revenues for the quarter
declined 8.0% to $234.3 million as compared with the prior year
period. Gross profit margin decreased 90 basis points to 41.9%,
primarily due to deleveraging on the sales decline and a
promotional consumer environment. Segment contribution margin1 was
$21.6 million, compared with adjusted segment contribution margin1
of $30.4 million in the prior year period, excluding the intangible
impairment.
- BloomNet: Revenues for the quarter declined 16.2% to
$22.8 million as compared with the prior year period. Revenue and
gross margin were impacted by the lower volume of lower margin
orders processed by BloomNet. Gross profit margin increased 330
basis points to 50.9% due to lower florist rebates. Segment
contribution margin1 was $7.5 million, compared with $9.1 million
in the prior year period.
Company Guidance
Based on the Company’s performance during its fiscal second
quarter, the Company is updating its Fiscal 2025 guidance as
outlined below. The Company expects its revenue trends to improve
as the fiscal year progresses, benefiting from its Relationship
Innovation initiatives that have expanded the Company's offerings,
broadened price points and enhanced the user experience.
For Fiscal 2025, the company now expects:
- total revenues to decline in the mid-single digits on a
percentage basis, as compared with the prior year;
- Adjusted EBITDA1 to be in a range of $65 million to $75
million; and
- Free Cash Flow1 to be in a range of $25 million to $35
million.
Credit Agreement
Amendment
The Company today announced that it has amended its credit
agreement in order to provide more clarity and flexibility to the
Company going forward.
Key changes effected by the amendment include revising the
definition of Consolidated EBITDA, clarifying the application of
optional term loan prepayments toward scheduled principal payments,
and revising the definition of Consolidated Fixed Charges.
Additional information can be found in the Company’s Form 8-K that
was filed with the SEC this morning.
Conference Call
The Company will conduct a conference call to discuss the above
details and attached financial results today, January 30, 2025, at
8:00 a.m. (ET). The conference call will be webcast from the
Investors section of the Company’s website at
www.1800flowersinc.com. A recording of the call will be posted on
the Investors section of the Company’s website within two hours of
the call’s completion. A telephonic replay of the call can be
accessed beginning at 2:00 p.m. (ET) today through February 6,
2025, at: (US) 1-877-344-7529; (Canada) 855-669-9658;
(International) 1-412-317-0088; enter conference ID #: 4981439.
Definitions of non-GAAP Financial
Measures:
We sometimes use financial measures derived from consolidated
financial information, but not presented in our financial
statements prepared in accordance with U.S. generally accepted
accounting principles (“GAAP”). Certain of these are considered
"non-GAAP financial measures" under the U.S. Securities and
Exchange Commission rules. Non-GAAP financial measures referred to
in this document are either labeled as “non-GAAP” or designated as
such with a “1”. See below for definitions and the reasons why we
use these non-GAAP financial measures. Where applicable, see the
Selected Financial Information below for reconciliations of these
non-GAAP measures to their most directly comparable GAAP financial
measures. Reconciliations for forward-looking figures would require
unreasonable efforts at this time because of the uncertainty and
variability of the nature and amount of certain components of
various necessary GAAP components, including, for example, those
related to compensation, tax items, amortization or others that may
arise during the year, and the Company’s management believes such
reconciliations would imply a degree of precision that would be
confusing or misleading to investors. For the same reasons, the
Company is unable to address the probable significance of the
unavailable information. The lack of such reconciling information
should be considered when assessing the impact of such
disclosures.
EBITDA and Adjusted EBITDA:
We define EBITDA as net income (loss) before interest, taxes,
depreciation, and amortization. Adjusted EBITDA is defined as
EBITDA adjusted for the impact of stock-based compensation,
Non-Qualified Deferred Compensation Plan (“NQDC”) Investment
appreciation/depreciation, and for certain items affecting
period-to-period comparability. See Selected Financial Information
for details on how EBITDA and Adjusted EBITDA were calculated for
each period presented. The Company presents EBITDA and Adjusted
EBITDA because it considers such information meaningful
supplemental measures of its performance and believes such
information is frequently used by the investment community in the
evaluation of similarly situated companies. The Company uses EBITDA
and Adjusted EBITDA as factors to determine the total amount of
incentive compensation available to be awarded to executive
officers and other employees. The Company's credit agreement uses
EBITDA and Adjusted EBITDA to determine its interest rate and to
measure compliance with certain covenants. EBITDA and Adjusted
EBITDA are also used by the Company to evaluate and price potential
acquisition candidates. EBITDA and Adjusted EBITDA have limitations
as analytical tools and should not be considered in isolation or as
a substitute for analysis of the Company's results as reported
under GAAP. Some of the limitations are: (a) EBITDA and Adjusted
EBITDA do not reflect changes in, or cash requirements for, the
Company's working capital needs; (b) EBITDA and Adjusted EBITDA do
not reflect the 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, the assets being depreciated and amortized may
have to be replaced in the future and EBITDA does not reflect any
cash requirements for such capital expenditures. EBITDA and
Adjusted EBITDA should only be used on a supplemental basis
combined with GAAP results when evaluating the Company's
performance.
Segment Contribution Margin and Adjusted Segment Contribution
Margin
We define Segment Contribution Margin as earnings before
interest, taxes, depreciation, and amortization, before the
allocation of corporate overhead expenses. Adjusted Segment
Contribution Margin is defined as Segment Contribution Margin
adjusted for certain items affecting period-to-period
comparability. See Selected Financial Information for details on
how Segment Contribution Margin and Adjusted Segment Contribution
Margin were calculated for each period presented. When viewed
together with our GAAP results, we believe Segment Contribution
Margin and Adjusted Segment Contribution Margin provide management
and users of the financial statements meaningful information about
the performance of our business segments. Segment Contribution
Margin and Adjusted Segment Contribution Margin are used in
addition to and in conjunction with results presented in accordance
with GAAP and should not be relied upon to the exclusion of GAAP
financial measures. The material limitation associated with the use
of Segment Contribution Margin and Adjusted Segment Contribution
Margin is that they are an incomplete measure of profitability as
they do not include all operating expenses or non-operating income
and expenses. Management compensates for this limitation when using
these measures by looking at other GAAP measures, such as Operating
Income and Net Income.
Adjusted Net Income (Loss) and Adjusted or Comparable Net
Income (Loss) Per Common Share:
We define Adjusted Net Income (Loss) and Adjusted or Comparable
Net Income (Loss) Per Common Share as Net Income (Loss) and Net
Income (Loss) Per Common Share adjusted for certain items affecting
period-to-period comparability. See Selected Financial Information
below for details on how Adjusted Net Income (Loss) Per Common
Share and Adjusted or Comparable Net Income (Loss) Per Common Share
were calculated for each period presented. We believe that Adjusted
Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per
Common Share are meaningful measures because they increase the
comparability of period-to-period results. Since these are not
measures of performance calculated in accordance with GAAP, they
should not be considered in isolation of, or as a substitute for,
GAAP Net Income (Loss) and Net Income (Loss) Per Common Share, as
indicators of operating performance and they may not be comparable
to similarly titled measures employed by other companies.
Free Cash Flow:
We define Free Cash Flow as net cash provided by operating
activities less capital expenditures. The Company considers Free
Cash Flow to be a liquidity measure that provides useful
information to management and investors about the amount of cash
generated by the business after the purchases of fixed assets,
which can then be used to, among other things, invest in the
Company’s business, make strategic acquisitions, strengthen the
balance sheet, and repurchase stock or retire debt. Free Cash Flow
is a liquidity measure that is frequently used by the investment
community in the evaluation of similarly situated companies. Since
Free Cash Flow is not a measure of performance calculated in
accordance with GAAP, it should not be considered in isolation or
as a substitute for analysis of the Company's results as reported
under GAAP. A limitation of the utility of Free Cash Flow as a
measure of financial performance is that it does not represent the
total increase or decrease in the Company's cash balance for the
period.
About 1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed
to help inspire customers to give more, connect more, and build
more and better relationships. The Company’s e-commerce business
platform features an all-star family of brands, including:
1-800-Flowers.com®, 1-800-Baskets.com®, CardIsle®, Cheryl’s
Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s
Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The
Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Simply
Chocolate® and Scharffen Berger®. Through the Celebrations
Passport® loyalty program, which provides members with free
standard shipping and no service charge on eligible products across
our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen
relationships with customers. The Company also operates BloomNet®,
an international floral and gift industry service provider offering
a broad-range of products and services designed to help members
grow their businesses profitably; Napco℠, a resource for floral
gifts and seasonal décor; DesignPac Gifts, LLC, a manufacturer of
gift baskets and towers; Alice’s Table®, a lifestyle business
offering fully digital livestreaming and on demand floral, culinary
and other experiences to guests across the country; and Card Isle®,
an e-commerce greeting card service. 1-800-FLOWERS.COM, Inc. was
recognized among America’s Most Trustworthy Companies by Newsweek
for 2024. 1-800-FLOWERS.COM, Inc. was also recognized as one of
America’s Most Admired Workplaces for 2025 by Newsweek and was
named to the Fortune 1000 list in 2022. Shares in
1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select
Market, ticker symbol: FLWS. For more information, visit
1800flowersinc.com.
FLWS–COMP FLWS-FN
Special Note Regarding Forward Looking
Statements:
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements represent the Company’s
current expectations or beliefs concerning future events and can
generally be identified using statements that include words such as
“estimate,” “expects,” “project,” “believe,” “anticipate,”
“intend,” “plan,” “foresee,” “forecast,” “likely,” “should,”
“will,” “target” or similar words or phrases. These forward-looking
statements are subject to risks, uncertainties, and other factors,
many of which are outside of the Company’s control, which could
cause actual results to differ materially from the results
expressed or implied in the forward-looking statements, including,
but not limited to, statements regarding the Company’s ability to
achieve its guidance for the full Fiscal year; the Company’s
ability to leverage its operating platform and reduce its operating
expense ratio; its ability to successfully integrate acquired
businesses and assets; its ability to successfully execute its
strategic initiatives; its ability to cost effectively acquire and
retain customers; the outcome of contingencies, including legal
proceedings in the normal course of business; 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 promotional activities and achieve more efficient marketing
programs; and general consumer sentiment and industry and economic
conditions that may affect levels of discretionary customer
purchases of the Company’s products. The Company undertakes no
obligation to publicly update any of the forward-looking
statements, whether because of new information, future events or
otherwise, made in this release or in any of its SEC filings.
Consequently, you should not consider any such list to be a
complete set of all potential risks and uncertainties. For a more
detailed description of these and other risk factors, refer to the
Company’s SEC filings, including the Company’s Annual Reports on
Form 10-K and its Quarterly Reports on Form 10-Q.
Note: The following tables are an integral
part of this press release without which the information presented
in this press release should be considered incomplete.
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
(in thousands)
December 29, 2024
June 30, 2024
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
247,220
$
159,437
Trade receivables, net
61,352
18,024
Inventories
157,438
176,591
Prepaid and other
26,884
31,680
Total current assets
492,894
385,732
Property, plant and equipment, net
223,178
223,789
Operating lease right-of-use assets
110,455
113,926
Goodwill
156,648
156,537
Other intangibles, net
115,079
116,216
Other assets
39,516
36,448
Total assets
$
1,137,770
$
1,032,648
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
113,588
$
80,005
Accrued expenses
193,558
121,303
Current maturities of long-term debt
-
10,000
Current portion of long-term operating
lease liabilities
18,490
16,511
Total current liabilities
325,636
227,819
Long-term debt, net
157,474
177,113
Long-term operating lease liabilities
102,038
105,866
Deferred tax liabilities, net
17,905
19,402
Other liabilities
39,610
36,106
Total liabilities
642,663
566,306
Total stockholders’ equity
495,107
466,342
Total liabilities and stockholders’
equity
$
1,137,770
$
1,032,648
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
Six Months Ended
December 29, 2024
December 31, 2023
December 29, 2024
December 31, 2023
Net revenues:
E-Commerce
$
677,326
$
738,406
$
870,500
$
948,317
Other
98,166
83,648
147,082
142,787
Total net revenues
775,492
822,054
1,017,582
1,091,104
Cost of revenues
439,899
466,357
589,670
633,479
Gross profit
335,593
355,697
427,912
457,625
Operating expenses:
Marketing and sales
187,003
188,557
269,100
271,075
Technology and development
15,973
14,822
31,612
30,126
General and administrative
27,410
27,154
55,936
55,643
Depreciation and amortization
14,130
14,152
27,168
27,346
Intangible impairment
-
19,762
-
19,762
Total operating expenses
244,516
264,447
383,816
403,952
Operating income
91,077
91,250
44,096
53,673
Interest expense, net
4,396
4,611
7,756
8,093
Other income, net
(1,164
)
(2,736
)
(2,931
)
(2,262
)
Income before income taxes
87,845
89,375
39,271
47,842
Income tax expense
23,497
26,468
9,113
16,177
Net income
$
64,348
$
62,907
$
30,158
$
31,665
Basic net income per common share
$
1.01
$
0.97
$
0.47
$
0.49
Diluted net income per common share
$
1.00
$
0.97
$
0.47
$
0.49
Weighted average shares used in the
calculation of net income per common share:
Basic
63,836
64,835
64,017
64,814
Diluted
64,306
65,177
64,501
65,155
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Six Months Ended
December 29, 2024
December 31, 2023
Operating activities:
Net income
$
30,158
$
31,665
Adjustments to reconcile net income to net
cash provided by operating activities:
Intangible impairment
-
19,762
Depreciation and amortization
27,168
27,346
Amortization of deferred financing
costs
361
361
Deferred income taxes
(1,496
)
(6,108)
Bad debt expense
131
225
Stock-based compensation
6,108
4,595
Other non-cash items
(412
)
(385)
Changes in operating items:
Trade receivables
(43,400
)
(26,384)
Inventories
20,446
29,808
Prepaid and other
5,850
6,640
Accounts payable and accrued expenses
104,671
125,404
Other assets and liabilities
1,722
(169)
Net cash provided by operating
activities
151,307
212,760
Investing activities:
Acquisitions, net of cash acquired
(3,000
)
-
Capital expenditures
(23,023
)
(17,807)
Net cash used in investing activities
(26,023
)
(17,807)
Financing activities:
Acquisition of treasury stock
(7,683
)
(4,787)
Proceeds from exercise of employee stock
options
182
44
Proceeds from bank borrowings
110,000
82,000
Repayment of bank borrowings
(140,000
)
(87,000)
Net cash used in financing activities
(37,501
)
(9,743)
Net change in cash and cash
equivalents
87,783
185,210
Cash and cash equivalents:
Beginning of period
159,437
126,807
End of period
$
247,220
$
312,017
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Three Months Ended
December 29, 2024
System Implementation
costs
As Adjusted (non-GAAP)
December 29, 2024
December 31, 2023
Intangible Impairment
As Adjusted (non-GAAP)
December 31, 2023
% Change
Net revenues:
Consumer Floral & Gifts
$
234,349
$
-
$
234,349
$
254,835
$
-
$
254,835
-8.0%
BloomNet
22,837
-
22,837
27,236
-
27,236
-16.2%
Gourmet Foods & Gift Baskets
518,454
-
518,454
539,963
-
539,963
-4.0%
Corporate
113
-
113
279
-
279
-59.5%
Intercompany eliminations
(261)
-
(261)
(259)
-
(259)
-0.8%
Total net revenues
$
775,492
$
-
$
775,492
$
822,054
$
-
$
822,054
-5.7%
Gross profit:
Consumer Floral & Gifts
$
98,288
$
-
$
98,288
$
109,176
$
-
$
109,176
-10.0%
41.9%
41.9%
42.8%
42.8%
BloomNet
11,624
-
11,624
12,974
-
12,974
-10.4%
50.9%
50.9%
47.6%
47.6%
Gourmet Foods & Gift Baskets
225,390
1,992
227,382
233,200
-
233,200
-2.5%
43.5%
43.9%
43.2%
43.2%
Corporate
291
-
291
347
-
347
-16.1%
257.5%
257.5%
124.4%
124.4%
Total gross profit
$
335,593
$
1,992
$
337,585
$
355,697
$
-
$
355,697
-5.1%
43.3%
-
43.5%
43.3%
-
43.3%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
21,587
$
-
$
21,587
$
10,593
$
19,762
$
30,355
-28.9%
BloomNet
7,460
-
7,460
9,088
-
9,088
-17.9%
Gourmet Foods & Gift Baskets
107,277
4,166
111,443
118,153
-
118,153
-5.7%
Segment Contribution Margin Subtotal
136,324
4,166
140,490
137,834
19,762
157,596
-10.9%
Corporate (b)
(31,117)
2,141
(28,976)
(32,432)
-
(32,432)
10.7%
EBITDA (non-GAAP)
105,207
6,307
111,514
105,402
19,762
125,164
-10.9%
Add: Stock-based compensation
3,629
-
3,629
2,231
-
2,231
62.7%
Add: Compensation charge related to NQDC
Plan Investment Appreciation
1,135
-
1,135
2,682
-
2,682
-57.7%
Adjusted EBITDA (non-GAAP)
$
109,971
$
6,307
$
116,278
$
110,315
$
19,762
$
130,077
-10.6%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Six Months Ended
December 29, 2024
System Implementation
Cost
As Adjusted (non-GAAP)
December 29, 2024
December 31, 2023
Intangible Impairment
As Adjusted (non-GAAP)
December 31, 2023
% Change
Net revenues:
Consumer Floral & Gifts
$
369,529
$
-
$
369,529
$
397,029
$
-
$
397,029
-6.9%
BloomNet
45,912
-
45,912
56,106
-
56,106
-18.2%
Gourmet Foods & Gift Baskets
602,457
-
602,457
638,072
-
638,072
-5.6%
Corporate
202
-
202
549
-
549
-63.2%
Intercompany eliminations
(518)
-
(518)
(652)
-
(652)
20.6%
Total net revenues
$
1,017,582
$
-
$
1,017,582
$
1,091,104
$
-
$
1,091,104
-6.7%
Gross profit:
Consumer Floral & Gifts
$
152,217
$
-
$
152,217
$
165,498
$
-
$
165,498
-8.0%
41.2%
41.2%
41.7%
41.7%
BloomNet
23,152
-
23,152
27,472
-
27,472
-15.7%
50.4%
50.4%
49.0%
49.0%
Gourmet Foods & Gift Baskets
252,234
1,992
254,226
264,107
-
264,107
-3.7%
41.9%
42.2%
41.4%
41.4%
Corporate
309
-
309
548
-
548
-43.6%
153.0%
153.0%
99.8%
99.8%
Total gross profit
$
427,912
$
1,992
$
429,904
$
457,625
$
-
$
457,625
-6.1%
42.1%
-
42.2%
41.9%
-
41.9%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
26,531
$
-
$
26,531
$
19,419
$
19,762
$
39,181
-32.3%
BloomNet
14,301
-
14,301
18,475
-
18,475
-22.6%
Gourmet Foods & Gift Baskets
95,024
5,079
100,103
107,125
-
107,125
-6.6%
Segment Contribution Margin Subtotal
135,856
5,079
140,935
145,019
19,762
164,781
-14.5%
Corporate (b)
(64,592)
3,008
(61,584)
(64,000)
-
(64,000)
3.8%
EBITDA (non-GAAP)
71,264
8,087
79,351
81,019
19,762
100,781
-21.3%
Add: Stock-based compensation
6,108
-
6,108
4,595
-
4,595
32.9%
Add: Compensation charge related to NQDC
Plan Investment Appreciation
2,873
-
2,873
2,178
-
2,178
31.9%
Adjusted EBITDA (non-GAAP)
$
80,245
$
8,087
$
88,332
$
87,792
$
19,762
$
107,554
-17.9%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
Reconciliation of net income to
adjusted net income (non-GAAP):
Three Months Ended
Six Months Ended
December 29, 2024
December 31, 2023
December 29, 2024
December 31, 2023
Net income
$
64,348
$
62,907
$
30,158
$
31,665
Adjustments to reconcile net income to
adjusted net income (non-GAAP)
Add: System implementation costs
6,307
-
8,087
-
Add: Intangible impairment
-
19,762
-
19,762
Deduct: Income tax effect on
adjustments
(1,475)
-
(2,002)
-
Adjusted net income (non-GAAP)
$
69,180
$
82,669
$
36,243
$
51,427
Basic and diluted net income per common
share
Basic
$
1.01
$
0.97
$
0.47
$
0.49
Diluted
$
1.00
$
0.97
$
0.47
$
0.49
Basic and diluted adjusted net income
per common share (non-GAAP)
Basic
$
1.08
$
1.28
$
0.57
$
0.79
Diluted
$
1.08
$
1.27
$
0.56
$
0.79
Weighted average shares used in the
calculation of basic and diluted net income and adjusted net income
per common share
Basic
63,836
64,835
64,017
64,814
Diluted
64,306
65,177
64,501
65,155
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
Reconciliation of net income to
adjusted EBITDA (non-GAAP):
Three Months Ended
Six Months Ended
December 29, 2024
December 31, 2023
December 29, 2024
December 31, 2023
Net income
$
64,348
$
62,907
$
30,158
$
31,665
Add: Interest expense and other, net
3,232
1,875
4,825
5,831
Add: Depreciation and amortization
14,130
14,152
27,168
27,346
Add: Income tax expense
23,497
26,468
9,113
16,177
EBITDA
105,207
105,402
71,264
81,019
Add: Stock-based compensation
3,629
2,231
6,108
4,595
Add: Compensation charge related to NQDC
Plan Investment Appreciation
1,135
2,682
2,873
2,178
Add: System implementation costs
6,307
-
8,087
-
Add: Intangible impairment
-
19,762
-
19,762
Adjusted EBITDA
$
116,278
$
130,077
$
88,332
$
107,554
(a) Segment performance is measured based
on segment contribution margin or segment Adjusted EBITDA,
reflecting only the direct controllable revenue and operating
expenses of the segments, both of which are non-GAAP measurements.
As such, management’s measure of profitability for these segments
does not include the effect of corporate overhead, described above,
depreciation and amortization, other income (net), and other items
that we do not consider indicative of our core operating
performance.
(b) Corporate expenses consist of the
Company’s enterprise shared service cost centers, and include,
among other items, Information Technology, Human Resources,
Accounting and Finance, Legal, Executive and Customer Service
Center functions, as well as Stock-Based Compensation. In order to
leverage the Company’s infrastructure, these functions are operated
under a centralized management platform, providing support services
throughout the organization. The costs of these functions, other
than those of the Customer Service Center, which are allocated
directly to the above categories based upon usage, are included
within corporate expenses as they are not directly allocable to a
specific segment.
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
Reconciliation of net cash provided by
operating activities to free cash flow (non-GAAP):
Six Months Ended
December 29, 2024
December 31, 2023
Net cash provided by operating
activities
$
151,307
$
212,760
Capital expenditures
(23,023)
(17,807)
Free cash flow
$
128,284
$
194,953
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250130324553/en/
Investor Contact: Andy Milevoj
amilevoj@1800flowers.com
Media Contact: Cherie Gallarello
cgallarello@1800flowers.com
1 800 Flowers Com (NASDAQ:FLWS)
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