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1-800-FLOWERS.COM® Reports Top And Bottom Line Growth From Continuing Operations For Its Fiscal 2013 First Quarter

Stocks in this article: FLWS

Conference Call:

The Company will conduct a conference call to discuss the above details and attached financial results today, Thursday, October 25, 2012 at 11:00 a.m. (ET). The call will be “web cast” live via the Internet and can be accessed from the Investor Relations section of the 1-800-FLOWERS.COM web site at www.1800flowersinc.com A recording of the call will be posted on the Investor Relations section of the Company’s web site within two hours of the call’s completion. A telephonic replay of the call can be accessed for 48 hours beginning at 2:00 p.m. ET on the day of the call at: 1-855-859-2056 or 1-404-537-3406; Conference ID: 37623739.

Note: Attached 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)

 
  September 30,

2012

  July 1,

2012

Assets
Current assets:
Cash and equivalents $ 5,829 $ 28,854
Receivables, net 26,751 14,968
Inventories 85,182 55,744
Deferred tax assets 7,161 4,993
Prepaid and other 12,345 11,082
Current assets of discontinued operations   100   100
Total current assets 137,368 115,741
 
Property, plant and equipment, net 49,140 48,669
Goodwill 47,901 47,901
Other intangibles, net 41,357 41,838
Deferred income taxes 2,822 2,824
Other assets   9,555   7,875
Total assets $ 288,143 $ 264,848
 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 18,334 $ 17,619
Accrued expenses 46,075 52,535

Current maturities of long-term debt and obligations under capital leases

53,503 15,756
Current liabilities of discontinued operations   110   110
Total current liabilities 118,022 86,020
 
Long-term debt and obligations under capital leases 9,000 13,500
Other liabilities   3,931   3,580
Total liabilities   130,953   103,100
Total stockholders’ equity   157,190   161,748
Total liabilities and stockholders’ equity $ 288,143 $ 264,848
 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statements of Operations

(In thousands, except for per share data)

 
Three Months Ended
September 30,

2012

  October 2,

2011

Net revenues:
E-commerce (combined online and telephonic) $ 81,461 $ 78,790
Other   39,407     38,408  
 
Total net revenues 120,868 117,198
 
Cost of revenues   71,231     70,636  
 
Gross profit 49,637 46,562
 
Operating expenses:
Marketing and sales 32,990 32,282
Technology and development 5,415 4,752
General and administrative 13,221 12,359
Depreciation and amortization   4,458     4,902  
 
Total operating expenses   56,084     54,295  
 
Operating loss (6,447 ) (7,733 )
 
Interest expense, net   302     822  
 
Loss from continuing operations before income taxes (6,749 ) (8,555 )
Income tax benefit from continuing operations   (2,143 )   (3,422 )
Loss from continuing operations (4,606 ) (5,133 )
 
Loss from discontinued operations, net of tax - (85 ) (85)
Gain on sale of discontinued operations, net of tax   -     4,478  
Income from discontinued operations   -     4,393  
 
Net loss   ($4,606 )   ($740 )
 

Basic and diluted net income (loss) per common share

 

 

64,218

From continuing operations ($0.07 ) ($0.08 )
From discontinued operations   0.00     0.07  
Net income (loss) per common share   ($0.07 ) $ 0.01  

 

Weighted average shares used in the calculation of net income (loss) per common share

Basic   64,505     64,218  
Diluted   64,505     64,218  
 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statements of Cash Flows

(In thousands)

 
    Three Months Ended
September 30,

2012

  October 2,

2011

 
Operating activities
Net loss ($4,606 ) ($740 )
Reconciliation of net loss to net cash provided by operations:
Operating activities of discontinued operations - 1,390
Loss from discontinued operations - (85 )
Gain on sale of discontinued operations - (8,953 )
Depreciation and amortization 4,458 4,902
Amortization of deferred financing costs 114 114
Deferred income taxes (2,166 ) 963
Bad debt expense 264 227
Stock based compensation 989 1,169
Other non-cash items
Changes in operating items, excluding the effects of acquisitions: 5 58
Receivables (12,047 ) (12,268 )
Inventories (29,438 ) (30,304 )
Prepaid and other (1,263 ) (2,665 )
Accounts payable and accrued expenses (5,745 ) (6,215 )
Other assets (525 ) (39 )
Other liabilities   351     (60 )
 
Net cash used in operating activities ($49,609 ) (52,506 )
 
Investing activities
Acquisitions, net of cash acquired - (4,336 )
Proceeds from sale of business - 12,010
Capital expenditures (4,453 ) (3,792 )
Purchase of investments (1,308 ) (1,111 )
Loss from sale of store - 219
Other, net   39     29  
 
Net cash (used in) provided by investing activities (5,722 ) 3,019
 
Financing activities
Acquisition of treasury stock (953 ) -
Proceeds from excise of employee stock options 12 -
Proceeds from bank borrowings 37,000 40,000
Repayment of notes payable and bank borrowings (3,750 ) (5,750 )
Repayment of capital lease obligations   (3 )   (498 )
 
Net cash provided by financing activities   32,306     33,752  
 
Net change in cash and equivalents (23,025 ) (15,735 )
Cash and equivalents:
Beginning of period   28,854     21,442  
 
End of period $ 5,829   $ 5,707  
 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

Category Information

(in thousands)

 
  Three Months Ended
September 30,

2012

  October 2,

2011

 

% Change

 
Net revenues from continuing operations:
1-800-Flowers.com Consumer Floral $ 72,777 $ 70,140 3.8 %
BloomNet Wire Service 19,767 18,505 6.8 %
Gourmet Food & Gift Baskets 28,406 28,625 -0.8 %
Corporate (*) 194 187 3.7 %
Intercompany eliminations   (276 )   (259 ) -6.6 %
Total net revenues from continuing operations $ 120,868   $ 117,198   3.1 %
 
  Three Months Ended
September 30,

2012

  October 2,

2011

 

% Change

 
 
Gross profit from continuing operations:
1-800-Flowers.com Consumer Floral $ 28,292 $ 26,689 6.0 %
38.9 % 38.1 %
 
BloomNet Wire Service 9,800 8,529 14.9 %
49.6 % 46.1 %
 
Gourmet Food & Gift Baskets 11,205 11,215 -0.1 %
39.4 % 39.2 %
 
Corporate (*) 340 129
175.3 % 68.9 % 163.6 %
   
Total gross profit from continuing operations $ 49,637   $ 46,562   6.6 %
  (41.1 %)   (39.7 %)
  Three Months Ended

 

September 30,

2012

  October 2,

2011

 

% Change

 
 

EBITDA from continuing operations and

EBITDA from continuing operations excluding

stock-based compensation:

Category Contribution Margin (**)
1-800-Flowers.com Consumer Floral $ 6,886 $ 5,967 15.4 %
BloomNet Wire Service 5,796 4,593 26.2 %
Gourmet Food & Gift Baskets (***)   (2,487 )   (1,926 ) 29.1 %
Category Contribution Margin Subtotal 10,195 8,634 18.1 %
Corporate (*)   (12,184 )   (11,465 ) -6.3 %
EBITDA from continuing operations (1,989 ) (2,831 ) -29.7 %
Add: Stock-based compensation   989     1,169   -15.4 %

EBITDA from continuing operations, excluding

stock-based compensation

 

($1,000

)

 

($1,662

)

-39.8

%

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

Category Information

(in thousands)

 
Three Months Ended

 

September 30,

2012

  October 2,

2011

 

Reconciliation of net loss from continuing operations

to EBITDA from continuing operations and EBITDA

from continuing operations excluding stock-based

compensation (**):

Net loss from continuing operations ($4,606 ) ($5,133 )
Add:
Interest expense, net 302 822
Depreciation and amortization 4,458 4,902
Income tax expense - -
Less:
Income tax benefit 2,143   3,422  
EBITDA from continuing operations ($1,989 ) ($2,831 )
Add: Stock-based compensation 989   1,169  

EBITDA from continuing operation, excluding stock

based compensation

($1,000

)

($1,662

)

 

(*) 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 category.

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