1 800 FLOWERS COM INC
For the period ended Mar 31, 2024. Filed May 8, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 8, 2024
Contents
Segment Information
The following table presents the net revenues, gross profit and segment contribution margin from each of the Company’s business segments, as well as consolidated EBITDA, and Adjusted EBITDA.
| Three Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Things | |||||||||||
| As Adjusted · Goodwill and · Remembered · As Adjusted | |||||||||||
| Restructuring cost/ · (non-GAAP) · Intangible · Transaction · (non-GAAP) · % | |||||||||||
| March 31, 2024 · Severance · March 31, 2024 · April 2, 2023 · Impairment · Costs · April 2, 2023 · Change | |||||||||||
| (dollars in thousands) | |||||||||||
| Net revenues: | |||||||||||
| Consumer Floral & Gifts | $221,207 | $ | - | $221,207 | $233,019 | $ | - | $ | - | $233,019 | -5.1% |
| BloomNet | 27,314 | 27,314 | 36,968 | 36,968 | -26.1% | ||||||
| Gourmet Foods & Gift Baskets | 130,989 | 130,989 | 147,863 | 147,863 | -11.4% | ||||||
| Corporate | 167 | 167 | 36 | 36 | 363.9% | ||||||
| Intercompany eliminations | (272) | (272) | (320) | (320) | 15.0% | ||||||
| Total net revenues | $379,405 | $ | - | $379,405 | $417,566 | $ | - | $ | - | $417,566 | -9.1% |
| Gross profit: | |||||||||||
| Consumer Floral & Gifts | $87,005 | $ | - | $87,005 | $88,317 | $ | - | $ | - | $88,317 | -1.5% |
| 39.3% | 39.3% | 37.9% | 37.9% | ||||||||
| BloomNet | 12,411 | 12,411 | 15,720 | 15,720 | -21.0% | ||||||
| 45.4% | 45.4% | 42.5% | 42.5% | ||||||||
| Gourmet Foods & Gift Baskets | 39,169 | 39,169 | 36,371 | 36,371 | 7.7% | ||||||
| 29.9% | 29.9% | 24.6% | 24.6% | ||||||||
| Corporate | 132 | 132 | 32 | 32 | 312.5% | ||||||
| 79.0% | 79.0% | 88.9% | 88.9% | ||||||||
| Total gross profit | $138,717 | $ | - | $138,717 | $140,440 | $ | - | $ | - | $140,440 | -1.2% |
| 36.6% | - | 36.6% | 33.6% | - | - | 33.6% | |||||
| EBITDA (non-GAAP): | |||||||||||
| Segment Contribution Margin (non-GAAP) (a): | |||||||||||
| Consumer Floral & Gifts | $22,190 | $630 | $22,820 | $26,136 | $ | - | $ | - | $26,136 | -12.7% | |
| BloomNet | 7,506 | 69 | 7,575 | 10,982 | 10,982 | -31.0% | |||||
| Gourmet Foods & Gift Baskets | (8,172) | 538 | (7,634) | (78,480) | 64,586 | (13,894) | 45.1% | ||||
| Segment Contribution Margin Subtotal | 21,524 | 1,237 | 22,761 | (41,362) | 64,586 | - | 23,224 | -2.0% | |||
| Corporate (b) | (36,221) | 1,180 | (35,041) | (30,015) | 201 | (29,814) | -17.5% | ||||
| EBITDA (non-GAAP) | (14,697) | 2,417 | (12,280) | (71,377) | 64,586 | 201 | (6,590) | -86.3% | |||
| Add: Stock-based compensation | 3,046 | 3,046 | 2,487 | 2,487 | 22.5% | ||||||
| Add: Compensation charge related to NQDC Plan Investment Appreciation (Depreciation) | 3,534 | 3,534 | (1,446) | (1,446) | 344.4% | ||||||
| Adjusted EBITDA (non-GAAP) | $(8,117) | $2,417 | $(5,700) | $(70,336) | $64,586 | $201 | $(5,549) | -2.7% | |||
| Nine Months Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Things | |||||||||||||
| As Adjusted · Goodwill and · Remembered · As Adjusted | |||||||||||||
| Intangible · Restructuring cost/ · (non-GAAP) · Intangible · Transaction · (non-GAAP) · % | |||||||||||||
| March 31, 2024 · Impairment · Severance · March 31, 2024 · April 2, 2023 · Impairment · Costs · April 2, 2023 · Change | |||||||||||||
| (dollars in thousands) | |||||||||||||
| Net revenues: | |||||||||||||
| Consumer Floral & Gifts | $618,236 | $ | - | $ | - | $618,236 | $672,248 | $ | - | $ | - | $672,248 | -8.0% |
| BloomNet | 83,420 | 83,420 | 103,187 | 103,187 | -19.2% | ||||||||
| Gourmet Foods & Gift Baskets | 769,061 | 769,061 | 844,522 | 844,522 | -8.9% | ||||||||
| Corporate | 716 | 716 | 152 | 152 | 371.1% | ||||||||
| Intercompany eliminations | (924) | (924) | (1,062) | (1,062) | 13.0% | ||||||||
| Total net revenues | $1,470,509 | $ | - | $ | - | $1,470,509 | $1,619,047 | $ | - | $ | - | $1,619,047 | -9.2% |
| Gross profit: | |||||||||||||
| Consumer Floral & Gifts | $252,503 | $ | - | $ | - | $252,503 | $262,510 | $ | - | $ | - | $262,510 | -3.8% |
| 40.8% | 40.8% | 39.0% | 39.0% | ||||||||||
| BloomNet | 39,883 | 39,883 | 44,086 | 44,086 | -9.5% | ||||||||
| 47.8% | 47.8% | 42.7% | 42.7% | ||||||||||
| Gourmet Foods & Gift Baskets | 303,276 | 303,276 | 302,902 | 302,902 | 0.1% | ||||||||
| 39.4% | 39.4% | 35.9% | 35.9% | ||||||||||
| Corporate | 680 | 680 | 166 | 166 | 309.6% | ||||||||
| 95.0% | 95.0% | 109.2% | 109.2% | ||||||||||
| Total gross profit | $596,342 | $ | - | $ | - | $596,342 | $609,664 | $ | - | $ | - | $609,664 | -2.2% |
| 40.6% | - | - | 40.6% | 37.7% | - | - | 37.7% | ||||||
| EBITDA (non-GAAP): | |||||||||||||
| Segment Contribution Margin (non-GAAP) (a): | |||||||||||||
| Consumer Floral & Gifts | $41,609 | $19,762 | $630 | $62,001 | $64,832 | $ | - | $ | - | $64,832 | -4.4% | ||
| BloomNet | 25,981 | 69 | 26,050 | 29,847 | 29,847 | -12.7% | |||||||
| Gourmet Foods & Gift Baskets | 98,953 | 538 | 99,491 | 26,313 | 64,586 | 90,899 | 9.5% | ||||||
| Segment Contribution Margin Subtotal | 166,543 | 19,762 | 1,237 | 187,542 | 120,992 | 64,586 | - | 185,578 | 1.1% | ||||
| Corporate (b) | (100,221) | 1,180 | (99,041) | (91,595) | 444 | (91,151) | -8.7% | ||||||
| EBITDA (non-GAAP) | 66,322 | 19,762 | 2,417 | 88,501 | 29,397 | 64,586 | 444 | 94,427 | -6.3% | ||||
| Add: Stock-based compensation | 7,641 | 7,641 | 5,941 | 5,941 | 28.6% | ||||||||
| Add: Compensation charge related to NQDC Plan Investment Appreciation (Depreciation) | 5,712 | 5,712 | (2,548) | (2,548) | 324.2% | ||||||||
| Adjusted EBITDA (non-GAAP) | $79,675 | $19,762 | $2,417 | $101,854 | $32,790 | $64,586 | $444 | $97,820 | 4.1% | ||||
| Reconciliation of net income (loss) to adjusted net income (loss) (non-GAAP): | Three Months Ended | Nine Months Ended | ||
|---|---|---|---|---|
| March 31, | April 2, | March 31, | April 2, | |
| 2024 | 2023 | 2024 | 2023 | |
| (in thousands, except for share data) | ||||
| Net income (loss) | $(16,903) | $(70,993) | $14,762 | $(22,155) |
| Adjustments to reconcile net income (loss) to adjusted net income (loss) (non-GAAP) | ||||
| Add: Transaction costs | - | 201 | - | 444 |
| Add: Restructuring cost/Severance | 2,417 | - | 2,417 | - |
| Add: Goodwill and intangible impairment | - | 64,586 | 19,762 | 64,586 |
| Deduct: Income tax effect on adjustments | (3,538) | (11,546) | (3,538) | (11,609) |
| Adjusted net income (loss) (non-GAAP) | $(18,024) | $(17,752) | $33,403 | $31,266 |
| Basic and diluted net income (loss) per common share | ||||
| Basic | $(0.26) | $(1.10) | $0.23 | $(0.34) |
| Diluted | $(0.26) | $(1.10) | $0.23 | $(0.34) |
| Basic and diluted adjusted net income (loss) per common share (non-GAAP) | ||||
| Basic | $(0.28) | $(0.27) | $0.52 | $0.48 |
| Diluted | $(0.28) | $(0.27) | $0.51 | $0.48 |
| Weighted average shares used in the calculation of basic and diluted net income (loss) and adjusted net income (loss) per common share | ||||
| Basic | 64,489 | 64,767 | 64,703 | 64,660 |
| Diluted | 64,489 | 64,767 | 65,057 | 64,660 |
| Reconciliation of net income (loss) to Adjusted EBITDA (non-GAAP): | Three Months Ended | Nine Months Ended | ||
|---|---|---|---|---|
| March 31, | April 2, | March 31, | April 2, | |
| 2024 | 2023 | 2024 | 2023 | |
| (in thousands) | ||||
| Net income (loss) | $(16,903) | $(70,993) | $14,762 | $(22,155) |
| Add: Interest expense and other, net | (2,693) | 3,116 | 3,138 | 11,150 |
| Add: Depreciation and amortization | 13,232 | 13,267 | 40,578 | 40,276 |
| Add: Income tax (benefit) expense | (8,333) | (16,767) | 7,844 | 126 |
| EBITDA | (14,697) | (71,377) | 66,322 | 29,397 |
| Add: Stock-based compensation | 3,046 | 2,487 | 7,641 | 5,941 |
| Add: Compensation charge related to NQDC plan investment Appreciation (Depreciation) | 3,534 | (1,446) | 5,712 | (2,548) |
| Add: Transaction costs | - | 201 | - | 444 |
| Add: Restructuring cost/Severance | 2,417 | - | 2,417 | - |
| Add: Goodwill and intangible impairment | - | 64,586 | 19,762 | 64,586 |
| Adjusted EBITDA | $(5,700) | $(5,549) | $101,854 | $97,820 |
(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.
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