FTD Companies, Inc. Announces Delay in the Release of its Fourth Quarter and Full-Year 2017 Financial Results
March 19 2018 - 7:00AM
FTD Companies, Inc. (Nasdaq:FTD) (“FTD” or the “Company”), a
premier floral and gifting company, today announced that it will
delay the release of its fourth quarter and full-year 2017
financial results.
Based on the Company’s year-to-date results of operations and
outlook for 2018 as it works to implement its strategic plan
announced in January 2018, as previously announced in a press
release on March 7, 2018, FTD remains in discussion with its
lenders and Liberty Interactive Corporation (“Liberty”), its
largest stockholder, regarding modifications to FTD’s credit
agreement and other financing transactions in order to assist the
Company to be able to comply with the financial covenants under the
credit agreement. These potential solutions involve a possible
commitment from Liberty to provide the Company with a $50 million
senior subordinated loan. The Company would use the proceeds of
this loan to repay a portion of its outstanding debt under the
credit agreement. Discussions with the Company’s lenders and
Liberty are ongoing and no agreement has been reached regarding any
financing transaction or other modification to the credit
agreement. The Company cannot give any assurance that these
discussions will be successful.
Due to the time and attention required as the Company pursues
the financing initiatives described above, and the corresponding
potential impact of the financial covenant issues on the Company’s
financial statements and its consequent impact on the Company’s
compliance with the terms and covenants of its credit agreement,
the Company has experienced a delay in the timely filing of its
Annual Report on Form 10-K for the year ended December 31, 2017
(the “Form 10-K”) and is filing a notification of late filing on
Form 12b-25 with the Securities and Exchange Commission to obtain
an automatic 15-day extension of the filing deadline for the Form
10-K. The Company expects to file the Form 10-K within the
time period prescribed in Rule 12b-25 promulgated under the
Securities Exchange Act of 1934.
The Company is working diligently on this matter and will, as
soon as practicable, make a further announcement regarding the
timing of the release of its complete audited financial results and
a conference call for the fourth quarter and year ended December
31, 2017. The Company continues to expect its financial results for
the year ended December 31, 2017 to be in-line with its preliminary
financial results previously released on March 7, 2018.
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
approximately 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®, Ink Cards™, Postagram™, Gifts.com™, and
BloomThat™. 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; including 2018 financial outlooks discussed herein;
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 ability to complete
modifications to its credit agreement or other financial
arrangements, including any transaction which provides for the
support of Liberty, which would allow the Company to comply with
its financial covenants; the Company’s products and services;
pricing; marketing plans; competition; settlement of legal matters;
and the impact of accounting changes and other pronouncements. In
addition, the preliminary results for 2017 referenced in this
release are subject to completion of internal and external review
and audit procedures and therefore are subject to adjustment.
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.
Contacts
Investor Relations: Katie Turner
646-277-1228 ir@ftdi.com
Media Inquiries: Amy Toosley 858-638-4648
pr@ftdi.com
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