United Online, Inc. (Nasdaq: UNTD), a leading provider of consumer products and services over the Internet, today reported financial results for its second quarter ended June 30, 2012.
“Today, United Online announced that its Board of Directors has approved a preliminary plan to separate United Online into two independent, publicly-traded companies,” said Mark R. Goldston, Chairman, President and Chief Executive Officer of United Online. “As part of the separation, FTD will become a separate, publicly-traded company, which will include the domestic and international operations of our FTD segment. The other public company will be United Online, which will continue to operate the businesses of our Content & Media and Communications segments. The proposed spin-off of FTD is expected to take the form of a tax-free pro rata distribution to United Online stockholders. In addition, the company announced that it also is reviewing strategic alternatives for its Content & Media and Communications businesses, including the potential spin-off of the Content & Media segment as an additional, separate publicly-traded company. We expect the separation not only will unlock value for the benefit of our stockholders, but also will provide significant operational and strategic flexibility for these businesses, better position them to capitalize on their well-recognized brands, and enhance long-term stockholder value.”
“Looking at our results for the quarter, consolidated adjusted OIBDA exceeded the high end of our guidance range for the quarter, and consolidated revenues were near the mid-point of our guidance range,” stated Goldston. “During the quarter, the FTD segment achieved its sixth consecutive quarter of year-over-year growth in revenues and adjusted OIBDA, after adjusting for the impact of the timing of the 2011 U.K. Mother’s Day.”
“During the quarter, our Memory Lane subsidiary completed the acquisition of schoolFeed, Inc., the developer of a leading Facebook app that enables online high school networking,” Goldston continued. “This acquisition is expected to enrich the Classmates business domestically and its StayFriends business internationally by providing the opportunity for our members to reconnect and interact with significantly more of their high school friends and acquaintances. In addition, Interflora British Unit, the U.K.-based subsidiary of FTD, acquired the Gifts Division of Flying Brands Limited, including the Flying Flowers, Flowers Direct and Drake Algar businesses, which we believe will broaden Interflora’s already strong presence in the U.K.”