FTD Companies, Inc. (Nasdaq:FTD) (“FTD” or the “Company”), a
premier floral and gifting company, today announced financial
results for the first quarter ended March 31, 2017.
John C. Walden, FTD’s President and Chief Executive Officer,
commented, “Our business performed reasonably well in the first
quarter, generally in line with expectations. FTD has many positive
assets to build upon, however, it continues to be challenged by
historical underinvestment and will require improvement over time
in the quality of our customer experiences, growth in our customer
base and better efficiency in customer and order
acquisition. The management team and I have begun our
comprehensive strategic review of FTD with the goal of
reinvigorating growth. I remain optimistic about our
opportunities to create long-term shareholder value and look
forward to sharing our plans in due course.”
First Quarter Results
Consolidated revenues were $316.5 million for the first quarter
of 2017, compared to $330.2 million for the first quarter of 2016.
The decrease in first quarter consolidated revenues compared to the
prior year period was primarily due to decreased revenues in the
Consumer segment and the impact of foreign currency exchange rates
in the International segment. Changes in foreign currency exchange
rates negatively impacted 2017 first quarter revenues by $7.1
million. Consolidated revenues were positively impacted during the
first quarter of 2017 by the Tuesday placement of Valentine’s Day
in 2017 as compared to the Sunday placement in 2016, however, the
increase was partially offset by the shift in the timing of the
Easter holiday to the second quarter in 2017 as compared to the
first quarter in 2016.
Net income was $9.0 million for the first quarter of 2017,
compared to net income of $1.8 million for the first quarter of
2016. The increase in net income was primarily attributable to a
decrease in amortization of intangible assets, partially offset by
an increase in the provision for income taxes.
Adjusted EBITDA was $31.1 million, or 9.8% of consolidated
revenues, for the first quarter of 2017, compared to $30.6 million,
or 9.3% of consolidated revenues, for the first quarter of 2016.
Adjusted EBITDA is a non-GAAP financial measure. Please refer to
the tables in this press release for a reconciliation of all
non-GAAP financial measures.
Segment Results
Provide Commerce Segment: Provide Commerce
segment revenues for the first quarter of 2017 decreased 0.8% to
$155.9 million, compared to $157.1 million for the first quarter of
2016, primarily driven by a 6.9% decrease in consumer orders,
partially offset by an increase of $3.30, or 6.6%, in average order
value to $52.99. Within the Provide Commerce segment, growth in
Gourmet Foods business revenues of 14.0% was more than offset by a
decline in the Personal Creations business revenues of 22.4%,
primarily due to the shift of the Easter holiday, and a decline in
the ProFlowers business revenues of 4.0%. Provide Commerce
segment operating income was $13.4 million, or 8.6% of segment
revenues, for the first quarter of 2017, compared to operating
income of $7.1 million, or 4.5% of segment revenues, in the prior
year quarter.
Consumer Segment: Consumer segment revenues for
the first quarter of 2017 decreased 7.4% to $72.8 million, compared
to $78.6 million in the first quarter of 2016. This decline was
primarily due to a 7.9% decrease in consumer orders, partially
offset by a $0.43, or 0.6%, increase in average order value to
$73.05. Consumer segment operating income was $5.7 million, or
7.8% of segment revenues, for the first quarter of 2017, compared
to $6.4 million, or 8.2% of segment revenues, in the prior year
quarter.
Florist Segment: Florist segment revenues for
the first quarter of 2017 decreased 1.0% to $46.5 million, compared
to $47.0 million for the first quarter of 2016. Service revenues
decreased $0.4 million, primarily driven by order-related revenues
partially offset by increases in subscription and other services
revenue. Florist segment operating income was $14.0 million,
compared to $12.8 million for the first quarter of 2016, driven
primarily by a $1.3 million reduction in bad debt expense. Florist
segment operating income was 30.0% of segment revenues for the
first quarter of 2017, compared to 27.3% for the first quarter of
2016.
International Segment: International segment
revenues for the first quarter of 2017 were $45.7 million, compared
to $52.4 million for the first quarter of 2016. On a constant
currency basis, International segment revenues increased 0.9%, or
$0.5 million, driven by a 4.4% increase in average order value and
an increase in revenues from the sales of wholesale flowers,
partially offset by a 4.1% decrease in consumer orders.
International segment operating income was $5.5 million, or 12.1%
of segment revenues, for the first quarter of 2017, compared to
$7.4 million, or 14.2% of segment revenues, in the prior year
quarter. On a constant currency basis, International segment
operating income decreased $1.0 million, or 13.3%, for the first
quarter compared to the prior year period.
Balance Sheet and Cash Flow Highlights
Net cash provided by operating activities was $24.2 million for
the three months ended March 31, 2017, compared to net cash
provided by operating activities of $17.6 million for the prior
year period. For the three months ended March 31, 2017, the Company
generated Free Cash Flow of $24.4 million compared to $14.2 million
for the prior year period. Free Cash Flow is a non-GAAP financial
measure. Please refer to the tables in this press release for a
reconciliation of all non-GAAP financial measures.
Cash and cash equivalents decreased $30.6 million to $50.4
million as of March 31, 2017, largely due to the Company utilizing
its cyclical cash to pay down $45.0 million of amounts outstanding
under its revolving debt facility, in addition to the $5.0 million
quarterly payment on the term loan. Excluding debt issuance costs,
debt outstanding as of March 31, 2017 was $230.0 million of
which $155.0 million is term debt and $75.0 million is associated
with the Company’s revolving credit facility.
Business Outlook
For the full year 2017, the Company reiterated the following
outlook:
- Consolidated revenues in 2017 to be largely in-line on a
reported basis with the Company's 2016 revenues of $1.12 billion,
or up low single digits on a constant currency basis (using an
average GBP to USD exchange rate of 1:1.21 as compared to the 2016
average exchange rate of 1:1.36)
- Net income of approximately $10.0 million to $15.0 million
- Consolidated Adjusted EBITDA margin is anticipated to decline
to approximately 8.0% to 8.5% of consolidated net revenues,
primarily as a result of expected increases in marketing
investments
- Capital expenditures of approximately $28.0 million, primarily
due to planned enhancements to the Company’s technology
platform
In connection with the outlook provided above, please note that
the seasonality of the Company's business impacts its profitability
and cash flows from operations on a quarterly basis. In
addition, due to a variety of factors, actual results may differ
significantly from the outlook provided. These factors include,
without limitation, the factors referenced in this release under
“Cautionary Information Regarding Forward-Looking Statements.”
Conference Call
The Company will be hosting a conference call today, May 9,
2017, at 5:00 p.m. ET. Live audio of the call will be webcast and
archived on the investor relations section of the Company's website
at http://www.ftdcompanies.com. In addition, you may dial
877-407-0784 to listen to the live broadcast.
A telephonic playback and archived webcast will be available
through May 23, 2017. Participants can dial 844-512-2921 to
hear the playback. The passcode is 13660088.
About FTD Companies, Inc.
FTD Companies, Inc. is a premier floral and gifting company.
Through our diversified family of brands, we provide floral,
specialty foods, gifts and related products to consumers primarily
in the United States and the United Kingdom. We also provide floral
products and services to retail florists and other retail locations
throughout these same geographies. FTD has been delivering flowers
since 1910 and the highly-recognized FTD® and Interflora® brands
are supported by the iconic Mercury Man logo®, which is displayed
in nearly 35,000 floral shops in over 125 countries. In addition to
FTD and Interflora, our diversified portfolio of brands includes
the following trademarks: ProFlowers®, ProPlants®, Shari's
Berries®, Personal Creations®, RedEnvelope®, Flying Flowers®,
Flowers Direct™, Ink Cards™, Postagram™ and Gifts.com™. FTD
Companies, Inc. is headquartered in Downers Grove, Ill. For more
information, please visit www.ftdcompanies.com.
Cautionary Information Regarding Forward-Looking
Statements
This release contains certain forward-looking statements within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, as amended, based on our
current expectations, estimates and projections about our
operations, industry, financial condition, performance, results of
operations, and liquidity. Statements containing words such as
“may,” “believe,” “anticipate,” “expect,” “intend,” “plan,”
“project,” “projections,” “business outlook,” “estimate,” or
similar expressions constitute forward-looking statements. These
forward-looking statements include, but are not limited to,
statements about the Company’s strategies and future financial
performance; expectations about future business plans, prospective
performance and opportunities, including potential acquisitions;
revenues; segment metrics; operating expenses; market trends,
including those in the markets in which the Company competes;
liquidity; cash flows and uses of cash; dividends; capital
expenditures; depreciation and amortization; tax payments; foreign
currency exchange rates; hedging arrangements; the Company’s
ability to repay indebtedness and invest in initiatives; the
Company’s products and services; pricing; marketing plans;
competition; settlement of legal matters; and the impact of
accounting changes and other pronouncements. Potential factors that
could affect these forward-looking statements include, among
others, the factors disclosed in the Company’s most recent Annual
Report on Form 10-K and the Company’s other filings with the
Securities and Exchange Commission (www.sec.gov), including,
without limitation, information under the captions “Management's
Discussion and Analysis of Financial Condition and Results of
Operations” and “Risk Factors.” Readers are cautioned not to place
undue reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof. Any such
forward-looking statements are not guarantees of future performance
or results and involve risks and uncertainties that may cause
actual performance and results to differ materially from those
predicted. Reported results should not be considered an indication
of future performance. Except as required by law, we undertake no
obligation to publicly release the results of any revision or
update to these forward-looking statements that may be made to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events. In addition, the Company
may not provide guidance of the type provided under “Business
Outlook” in the future.
Definitions
(1) Segment operating income. The Company's
chief operating decision maker uses segment operating income to
evaluate the performance of the business segments and to make
decisions about allocating resources among segments. Segment
operating income is operating income excluding depreciation,
amortization, litigation and dispute settlement charges and gains,
transaction-related costs, restructuring and other exit costs, and
impairment of goodwill and intangible assets. In addition,
stock-based and incentive compensation and general corporate
expenses are not allocated to the segments. Segment operating
income is prior to intersegment eliminations and excludes other
income/(expense), net. Please refer to the tables in this press
release for a reconciliation of segment operating income to net
income.
(2) Consumer orders. The Company monitors the
number of consumer orders for floral, gift, and related products
during a given period. Consumer orders are individual units
delivered during the period that were originated through our
consumer websites, associated mobile sites and applications, and
various telephone numbers. The number of consumer orders is not
adjusted for non-delivered orders that are refunded on or after the
scheduled delivery date. Orders originating with a florist or other
retail location for delivery to consumers are not included as part
of this number.
(3) Average order value. The Company monitors
the average value for consumer orders delivered in a given period,
which is referred to as the average order value. Average order
value represents the average amount received for consumer orders
delivered during a period. The average order value of consumer
orders within the Provide Commerce, Consumer, and International
segments is tracked in their local currency, the U.S. Dollar for
both the Provide Commerce and Consumer segments and the British
Pound ("GBP") for the International segment. The local currency
amounts received for the International segment are then translated
into U.S. dollars at the average currency exchange rate for the
period. Average order value includes merchandise revenues and
shipping or service fees paid by the consumer, less discounts and
refunds (net of refund-related fees charged to floral network
members).
(4) Average revenues per member. The Company
monitors average revenues per member for floral network members in
the Florist segment. Average revenues per member represents the
average revenues earned from a member of the Company's floral
network during a period. Revenues include services revenues and
products revenues, but exclude revenues from sales to non-members.
Floral network members include retail florists and other
non-florist retail locations that offer floral and gifting
solutions. Average revenues per member is calculated by dividing
Florist segment revenues for the period, excluding sales to
non-members, by the average number of floral network members for
the period.
Non-GAAP Measures
(5) Adjusted earnings before interest, taxes,
depreciation and amortization (“Adjusted EBITDA”). The
Company defines Adjusted EBITDA as net income/(loss) before net
interest expense, provision/(benefit) for income taxes,
depreciation, amortization, stock-based compensation,
transaction-related costs, litigation and dispute settlement
charges and gains, restructuring and other exit costs, and
impairment of goodwill and intangible assets.
Litigation and dispute settlement charges and gains include
estimated losses for which the Company has established a reserve,
as well as actual settlements, judgments, fines, penalties,
assessments or other resolutions against, or in favor of, the
Company related to litigation, arbitration, investigations,
disputes, or similar matters. Insurance recoveries received by the
Company related to such matters are also included in these
adjustments.
Transaction-related costs are certain expense items resulting
from actual or potential transactions such as business
combinations, mergers, acquisitions, dispositions, spin-offs,
financing transactions, and other strategic transactions,
including, without limitation, (i) transaction-related bonuses and
(ii) expenses for advisors and representatives such as investment
bankers, consultants, attorneys, and accounting firms.
Transaction-related costs may also include, without limitation,
transition and integration costs such as retention bonuses and
acquisition-related milestone payments to acquired employees, in
addition to consulting, compensation, and other incremental costs
associated with integration projects.
The Company's definition of Adjusted EBITDA may be modified from
time to time. Management believes that because Adjusted EBITDA
excludes (i) certain non-cash expenses (such as depreciation,
amortization, and stock-based compensation) and (ii) expenses that
are not reflective of the Company's core operations, this measure
provides investors with additional useful information to measure
the Company's financial performance, particularly with respect to
changes in performance from period to period. Management uses
Adjusted EBITDA to measure the Company's performance. The Adjusted
EBITDA metric also is used as a performance measure under the
Company's senior secured credit facility and includes adjustments
such as the items defined above and other further adjustments,
which are defined in the senior secured credit facility. The
Company also uses this measure as a basis in determining certain
incentive compensation targets for certain members of the Company's
management.
Adjusted EBITDA is not determined in accordance with GAAP and
should be considered in addition to, not as a substitute for or
superior to, financial measures determined in accordance with GAAP.
A limitation associated with the use of Adjusted EBITDA is that it
does not reflect the periodic costs of certain tangible and
intangible assets used in generating revenues in the Company's
business. Management evaluates the costs of such tangible and
intangible assets through other financial activities such as
evaluations of capital expenditures and purchase accounting. An
additional limitation associated with this measure is that it does
not include stock-based compensation expenses related to the
Company's workforce. A further limitation associated with the use
of this measure is that it does not reflect expenses or gains that
are not considered reflective of the Company's core operations.
Management compensates for this limitation by providing
supplemental information about such charges, gains and costs within
its financial press releases and SEC filings, when applicable.
An additional limitation associated with the use of this measure
is that the term "Adjusted EBITDA" does not have a standardized
meaning. Therefore, other companies may use the same or a similarly
named measure but exclude different items or use different
computations, which may not provide investors a comparable view of
the Company's performance in relation to other companies.
Management compensates for this limitation by presenting the most
comparable GAAP measure, net income, directly ahead of Adjusted
EBITDA within this and other financial press releases and by
providing a reconciliation that shows and describes the adjustments
made. A reconciliation to net income is provided in the
accompanying tables. In addition, many of the adjustments to the
Company's GAAP financial measures reflect the exclusion of items
that are recurring in nature and will be reflected in the Company's
financial results for the foreseeable future.
(6) Free Cash Flow. The Company defines Free
Cash Flow as net cash provided by operating activities less capital
expenditures, plus cash paid for transaction-related costs, cash
paid or received for litigation and dispute settlement charges or
gains, and cash paid for restructuring and other exit costs.
Contacts
Investor Relations: Katie Turner
646-277-1228ir@ftdi.com
Media Inquiries: Amy Toosley858-638-4648pr@ftdi.com
FTD COMPANIES, INC. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
Revenues: |
|
|
|
|
|
|
|
Provide
Commerce segment |
|
$ |
155,868 |
|
|
$ |
157,097 |
|
|
Consumer
segment |
|
|
72,804 |
|
|
|
78,607 |
|
|
Florist
segment |
|
|
46,506 |
|
|
|
46,992 |
|
|
International segment |
|
|
45,737 |
|
|
|
52,377 |
|
|
Intersegment eliminations |
|
|
(4,422 |
) |
|
|
(4,859 |
) |
|
Total
revenues |
|
|
316,493 |
|
|
|
330,214 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of
revenues |
|
|
196,374 |
|
|
|
213,766 |
|
|
Sales and
marketing |
|
|
68,896 |
|
|
|
67,916 |
|
|
General
and administrative |
|
|
28,755 |
|
|
|
29,744 |
|
|
Amortization of intangible assets |
|
|
3,820 |
|
|
|
15,416 |
|
|
Restructuring and other exit costs |
|
|
808 |
|
|
|
433 |
|
|
Total
operating expenses |
|
|
298,653 |
|
|
|
327,275 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
17,840 |
|
|
|
2,939 |
|
|
Interest expense,
net |
|
|
(2,273 |
) |
|
|
(2,314 |
) |
|
Other
income/(expense), net |
|
|
(25 |
) |
|
|
1,809 |
|
|
|
|
|
|
|
|
|
|
Net
income before income taxes |
|
|
15,542 |
|
|
|
2,434 |
|
|
Provision for income taxes |
|
|
6,519 |
|
|
|
683 |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
9,023 |
|
|
$ |
1,751 |
|
|
|
|
|
|
|
|
|
|
Earnings
per common share: |
|
|
|
|
|
|
|
Basic
earnings per share |
|
$ |
0.32 |
|
|
$ |
0.06 |
|
|
Diluted
earnings per share |
|
$ |
0.32 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
Average
Shares Outstanding: |
|
|
|
|
|
|
|
Basic |
|
|
27,368 |
|
|
|
27,655 |
|
|
Diluted |
|
|
27,435 |
|
|
|
27,716 |
|
|
FTD COMPANIES, INC. |
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(in thousands) |
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2017 |
|
2016 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
50,444 |
|
$ |
81,002 |
|
Accounts
receivable, net |
|
|
30,317 |
|
|
26,659 |
|
Inventories |
|
|
27,008 |
|
|
24,996 |
|
Property
and equipment, net |
|
|
55,353 |
|
|
57,559 |
|
Intangible assets, net |
|
|
269,570 |
|
|
272,798 |
|
Goodwill |
|
|
464,708 |
|
|
463,465 |
|
Other
assets |
|
|
32,880 |
|
|
35,835 |
|
Total
assets |
|
$ |
930,280 |
|
$ |
962,314 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable and accrued liabilities |
|
$ |
157,996 |
|
$ |
157,693 |
|
Debt
(a) |
|
|
226,646 |
|
|
276,306 |
|
Deferred
tax liabilities, net |
|
|
89,238 |
|
|
85,932 |
|
Other
liabilities |
|
|
17,446 |
|
|
14,656 |
|
Total
liabilities |
|
|
491,326 |
|
|
534,587 |
|
Total
equity |
|
|
438,954 |
|
|
427,727 |
|
Total
liabilities and equity |
|
$ |
930,280 |
|
$ |
962,314 |
|
FTD COMPANIES, INC. |
|
UNAUDITED SEGMENT INFORMATION |
|
(in thousands, except average order values,
average revenues per member, and average currency exchange
rates) |
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2017 |
|
2016 |
Provide Commerce: |
|
|
|
|
|
|
Segment
revenues |
|
$ |
155,868 |
|
$ |
157,097 |
Segment
operating income (1) |
|
$ |
13,447 |
|
$ |
7,076 |
|
Consumer
orders (2) |
|
|
2,906 |
|
|
3,123 |
Average
order value (3) |
|
$ |
52.99 |
|
$ |
49.69 |
|
|
|
|
|
|
|
Consumer: |
|
|
|
|
|
|
Segment
revenues |
|
$ |
72,804 |
|
$ |
78,607 |
Segment
operating income (1) |
|
$ |
5,660 |
|
$ |
6,429 |
Consumer
orders (2) |
|
|
941 |
|
|
1,022 |
Average
order value (3) |
|
$ |
73.05 |
|
$ |
72.62 |
|
|
|
|
|
|
|
Florist: |
|
|
|
|
|
|
Segment
revenues |
|
$ |
46,506 |
|
$ |
46,992 |
Segment
operating income (1) |
|
$ |
13,954 |
|
$ |
12,810 |
Average
revenues per member (4) |
|
$ |
4,140 |
|
$ |
3,888 |
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
Segment
revenues (in USD) |
|
$ |
45,737 |
|
$ |
52,377 |
Segment
revenues (in GBP) |
|
£ |
36,881 |
|
£ |
36,563 |
Segment
operating income (in USD) (1) |
|
$ |
5,532 |
|
$ |
7,417 |
Consumer
orders (2) |
|
|
842 |
|
|
878 |
Average
order value (in USD) (3) |
|
$ |
44.50 |
|
$ |
49.23 |
Average
order value (in GBP) (3) |
|
£ |
35.90 |
|
£ |
34.38 |
Average
currency exchange rate: GBP to USD |
|
|
1.24 |
|
|
1.43 |
|
|
|
|
|
|
|
FTD COMPANIES, INC. |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
March 31, |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
Cash
flows from operating activities: |
|
|
|
|
|
|
|
|
Net
income |
|
$ |
9,023 |
|
|
$ |
1,751 |
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
9,298 |
|
|
|
21,277 |
|
|
|
Stock-based compensation |
|
|
2,341 |
|
|
|
4,040 |
|
|
|
Provision
for doubtful accounts receivable |
|
|
350 |
|
|
|
1,693 |
|
|
|
Amortization of debt issue costs |
|
|
340 |
|
|
|
340 |
|
|
|
Deferred
taxes, net |
|
|
3,152 |
|
|
|
(2,515 |
) |
|
|
Gains on
life insurance |
|
|
— |
|
|
|
(1,583 |
) |
|
|
Other,
net |
|
|
(17 |
) |
|
|
1 |
|
|
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable, net |
|
|
(3,941 |
) |
|
|
(4,709 |
) |
|
|
Inventories |
|
|
(1,999 |
) |
|
|
(1,949 |
) |
|
|
Prepaid
expenses and other assets |
|
|
3,141 |
|
|
|
4,206 |
|
|
|
Accounts
payable and accrued liabilities |
|
|
(143 |
) |
|
|
(8,978 |
) |
|
|
Income
taxes receivable or payable |
|
|
1,240 |
|
|
|
2,744 |
|
|
|
Other
liabilities |
|
|
1,431 |
|
|
|
1,253 |
|
|
|
Net cash
provided by operating activities |
|
|
24,216 |
|
|
|
17,571 |
|
|
|
Cash
flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases
of property and equipment and intangible assets |
|
|
(3,196 |
) |
|
|
(4,611 |
) |
|
|
Proceeds
from life insurance |
|
|
— |
|
|
|
944 |
|
|
|
Net cash
used for investing activities |
|
|
(3,196 |
) |
|
|
(3,667 |
) |
|
|
Cash
flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds
from long-term debt |
|
|
15,000 |
|
|
|
— |
|
|
|
Payments
on long-term debt |
|
|
(65,000 |
) |
|
|
(5,000 |
) |
|
|
Repurchases of common stock withheld for taxes |
|
|
(1,944 |
) |
|
|
(1,633 |
) |
|
|
Net cash
used for financing activities |
|
|
(51,944 |
) |
|
|
(6,633 |
) |
|
|
Effect
of foreign currency exchange rate changes on cash and cash
equivalents |
|
|
366 |
|
|
|
57 |
|
|
|
|
|
|
|
|
|
|
|
|
Change
in cash and cash equivalents |
|
|
(30,558 |
) |
|
|
7,328 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents, beginning of period |
|
|
81,002 |
|
|
|
57,892 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents, end of period |
|
$ |
50,444 |
|
|
$ |
65,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
|
|
|
|
|
Cash paid
for interest |
|
$ |
1,904 |
|
|
$ |
1,441 |
|
|
|
Cash paid
for income taxes, net |
|
|
2,032 |
|
|
|
436 |
|
|
|
Cash paid
for restructuring and other exit costs |
|
|
2,618 |
|
|
|
765 |
|
|
|
Cash paid
for litigation and dispute settlements charges |
|
|
25 |
|
|
|
167 |
|
|
|
Cash paid
for transaction-related costs |
|
|
687 |
|
|
|
318 |
|
|
|
|
|
|
|
|
|
|
|
|
FTD COMPANIES, INC. |
|
UNAUDITED RECONCILIATIONS |
|
(in thousands) |
|
The following tables contain reconciliations of
Adjusted EBITDA and Free Cash Flow to financial measures reported
in accordance with Generally Accepted Accounting Principles
("GAAP"). |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF SEGMENT OPERATING INCOME TO
NET INCOME |
|
AND NET INCOME TO ADJUSTED EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
Segment Operating Income (1)
: |
|
|
|
|
|
|
|
Provide
Commerce |
|
$ |
13,447 |
|
|
$ |
7,076 |
|
|
Consumer |
|
|
5,660 |
|
|
|
6,429 |
|
|
Florist |
|
|
13,954 |
|
|
|
12,810 |
|
|
International |
|
|
5,532 |
|
|
|
7,417 |
|
|
Unallocated expenses |
|
|
(11,455 |
) |
|
|
(9,516 |
) |
|
Depreciation and amortization |
|
|
(9,298 |
) |
|
|
(21,277 |
) |
|
Operating
income |
|
|
17,840 |
|
|
|
2,939 |
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
(2,273 |
) |
|
|
(2,314 |
) |
|
Other
income/(expense), net |
|
|
(25 |
) |
|
|
1,809 |
|
|
Provision
for income taxes |
|
|
(6,519 |
) |
|
|
(683 |
) |
|
Net income (GAAP basis) |
|
$ |
9,023 |
|
|
$ |
1,751 |
|
|
|
|
|
|
|
|
|
|
Net income (GAAP basis) |
|
$ |
9,023 |
|
|
$ |
1,751 |
|
|
Interest
expense, net |
|
|
2,273 |
|
|
|
2,314 |
|
|
Provision
for income taxes |
|
|
6,519 |
|
|
|
683 |
|
|
Depreciation and amortization |
|
|
9,298 |
|
|
|
21,277 |
|
|
Stock-based compensation |
|
|
2,341 |
|
|
|
4,040 |
|
|
Transaction-related costs |
|
|
801 |
|
|
|
126 |
|
|
Restructuring and other exit costs |
|
|
808 |
|
|
|
433 |
|
|
Adjusted EBITDA (5) |
|
$ |
31,063 |
|
|
$ |
30,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET CASH PROVIDED BY
OPERATING ACTIVITIES TO FREE CASH FLOW |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities (GAAP Basis) |
|
$ |
24,216 |
|
|
$ |
17,571 |
|
|
Capital
expenditures |
|
|
(3,196 |
) |
|
|
(4,611 |
) |
|
Cash paid
for transaction-related costs |
|
|
687 |
|
|
|
318 |
|
|
Cash paid
for litigation and dispute settlements |
|
|
25 |
|
|
|
167 |
|
|
Cash paid
for restructuring and other exit costs |
|
|
2,618 |
|
|
|
765 |
|
|
Free Cash Flow (6) |
|
$ |
24,350 |
|
|
$ |
14,210 |
|
|
|
|
|
|
|
|
|
|
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