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press release

Jan. 28, 2021, 6:45 a.m. EST

1-800-FLOWERS.COM, Inc. Reports Record Revenue and Earnings Results for its Fiscal 2021 Second Quarter

Total net revenues increased 44.8 percent, or $271.6 million, to $877.3 million compared with total revenues of $605.6 million in the prior year period, driven by ecommerce growth of 59.7 percent.Net Income for the quarter increased 53.3 percent, or $39.5 million, to $113.7 million, or $1.71 per diluted share, compared with net income of $74.2 million, or $1.12 per diluted share in the prior year period.Adjusted EBITDA1 for the quarter increased 48.4 percent, or $53.6 million, to $164.3 million compared with $110.7 million in the prior year period.(1 Refer to “Definitions of Non-GAAP Financial Measures” and the tables attached at the end of this press release for reconciliation of Non-GAAP results to applicable GAAP results.)

1-800-FLOWERS.COM, Inc. /zigman2/quotes/204552624/composite FLWS +4.72% , a leading e-commerce provider of products and services designed to inspire more human expression, connection and celebration, today reported results for its Fiscal 2021 second quarter ended December 27, 2020.

Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said “We are very pleased to report the highest quarterly revenue and profit in our Company’s history. Our record top and bottom-line results represent the seventh consecutive quarter of strong revenue growth across our three business segments and reflects a continuation of the momentum that we have been building over the past several years. These results were primarily driven by strong, double-digit ecommerce growth across our gourmet food and gift basket brands, in our market-leading 1-800-Flowers.com [®] floral business, and in our newest market-leading brand, PersonalizationMall.com [®] .

“The strong ecommerce growth, combined with excellent execution, enabled us to drive record results despite the significant headwinds we faced in the year-end holiday period, including increased labor and transportation costs as well as operating inefficiencies related to the ongoing pandemic. This is a testament to the incredible hard work and commitment of all our associates across the Company to help our customers connect and express themselves in a very challenging environment.”

McCann noted that, “Over the past several years, we have made significant investments in our brands, our technology stack, our digital marketing and cross-brand merchandising programs, our fast-growing customer files and our customer care platform. We have complemented these internal investments with strategic and highly accretive acquisitions, including Shari’s Berries [®] in August of 2019 and PersonalizationMall.com in August of 2020. As a result, we have successfully created a highly scalable and leverageable ecommerce platform that is built for growth, which will help us continue to drive enhanced shareholder returns.”

McCann said that in addition to the strong revenue and profit growth in the quarter, the Company continued to grow its customer file at a record pace. “We are continuing to leverage our efficient digital marketing programs to take advantage of the seismic shift in consumer shopping from traditional brick-and-mortar to ecommerce. As a result, we continue to see exceptionally strong new customer growth combined with increased frequency from existing customers. We are also seeing an increasing number of both new and existing customers joining our Celebrations Passport [®] loyalty program, which is one of the drivers of increased purchase frequency, retention and life-time value. The combination of these positive trends significantly enhances our ability to deliver sustainable top and bottom-line growth both near and longer term.”

Regarding the Company’s current fiscal third quarter, McCann said that the Company continued to see strong ecommerce demand through the first four weeks of the quarter. “As we enter the second half of our fiscal year, we have built significant momentum across our business by leveraging our expanded product offering and our focused customer engagement to build relationships. While we are cognizant of continuing uncertainty in the overall environment due to the COVID-19 pandemic, we believe we are well positioned to deliver solid results for the current fiscal third quarter and the full year.”

Second Quarter 2021 Financial Results

Total consolidated revenues increased 44.8 percent, or 271.2 million, to $877.3 million, compared with total consolidated revenues of $605.6 million in the prior year period, driven by ecommerce growth of 59.7 percent including revenue contributions from PersonalizationMall.com (“PMall”), which the Company acquired in August 2020. Excluding the contribution from PMall, total net revenues increased 24.7 percent and e-commerce net revenues increased 34.6 percent compared with the prior year period.

Gross profit margin for the quarter increased 100 basis points to 45.4 percent, compared with 44.4 percent in the prior year period. Operating expenses as a percent of total revenues was 28.6 percent, compared with 28.0 percent in the prior year period. Excluding the impacts of the Company’s non-qualified deferred 401k compensation plan and one-time costs primarily associated with its acquisition of PMall, operating expenses, as a percentage of total revenues was 28.3 percent in the quarter.

The combination of these factors resulted in an increase of 48.4 percent, or $53.6 million, in Adjusted EBITDA to $164.3 million, compared with Adjusted EBITDA of $110.7 million in the prior year period.

Net income for the quarter increased 53.3 percent, or $39.5 million, to $113.7 million, or $1.71 per diluted share, compared with net income of $74.2 million or $1.12 per diluted share in the prior year period. Adjusted net income for the quarter increased 54.1 percent, or $40.1 million, to $114.2 million, or 41.72 per diluted share.

Segment Results:

The Company provides selected financial results for its Gourmet Foods and Gift Baskets, Consumer Floral and Gifts, and BloomNet [®] segments in the tables attached to this release and as follows:

  • Gourmet Foods and Gift Baskets : Revenues for the quarter increased 15.9 percent, or $73.7 million, to $538.3 million, compared with $464.6 million in the prior year period. The strong growth was driven by accelerated ecommerce growth of 27.1 percent, which more than offset lower wholesale gift basket orders for the holiday season and the loss of revenues associated with the closing of the Harry & David [®] retail stores in fiscal 2020. Gross profit margin increased 40 basis points to 45.9 percent, compared with 45.5 percent in the prior year period. Segment contribution margin, as adjusted, improved 19.5 percent, or $22.2 million, to $135.5 million, compared with $113.4 million in the prior year period.

  • Consumer Floral and Gifts : Revenues in this segment increased 163.9 percent, or $189.7 million, to $305.4 million, compared with $115.7 million in the prior year period. Excluding the contribution from PMall, revenues in this segment increased 58.3 percent compared with the prior year period. Gross profit margin increased 550 basis points to 44.0 percent, compared with 38.5 percent in the prior year period primarily reflecting contributions from PMall. Segment contribution margin increased 319.3 percent, or $34.8 million, to $45.7 million, compared with $10.9 million in the prior year period. Excluding the contribution from PMall, segment contribution margin increased 69.7 percent compared with the prior year period.

  • BloomNet : Revenues for the quarter increased 32.4 percent to $34.1 million, compared with $25.7 million in the prior year period. Gross profit margin was 49.4 percent, a decrease of 180 basis points compared with 51.2 percent in the prior year period, primarily reflecting product mix. Segment contribution margin increased 32.9 percent to $12.1 million, compared with $9.1 million in the prior year period.

Company Guidance

  • Due to the significant uncertainty in the overall economy related to the ongoing COVID-19 pandemic, the Company is not providing guidance for its full fiscal 2021 year at this time.

  • Regarding the fiscal third quarter:

Definitions of non-GAAP Financial Measures:

We sometimes use financial measures derived from consolidated financial information, but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. Non-GAAP financial measures referred to in this document are either labeled as “non-GAAP” or designated as such with a “1”. See below for definitions and the reasons why we use these non-GAAP financial measures. Where applicable, see the Selected Financial Information below for reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.

EBITDA and Adjusted EBITDA

We define EBITDA as net income (loss) before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for the impact of stock-based compensation, Non-Qualified Plan Investment appreciation/depreciation, and for certain items affecting period-to-period comparability. See Selected Financial Information for details on how EBITDA and Adjusted EBITDA were calculated for each period presented. The Company presents EBITDA and Adjusted EBITDA because it considers such information meaningful supplemental measures of its performance and believes such information is frequently used by the investment community in the evaluation of similarly situated companies. The Company uses EBITDA and Adjusted EBITDA as factors to determine the total amount of incentive compensation available to be awarded to executive officers and other employees. The Company's credit agreement uses EBITDA and Adjusted EBITDA to determine its interest rate and to measure compliance with certain covenants. EBITDA and Adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of the limitations are: (a) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the Company's debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and EBITDA does not reflect any cash requirements for such capital expenditures. EBITDA and Adjusted EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company's performance.

Segment Contribution Margin and Adjusted Segment Contribution Margin

We define Segment Contribution Margin as earnings before interest, taxes, depreciation and amortization, before the allocation of corporate overhead expenses. Adjusted Contribution Margin is defined as Contribution Margin adjusted for certain items affecting period-to-period comparability. See Selected Financial Information for details on how Segment Contribution Margin and Adjusted Segment Contribution Margin were calculated for each period presented. When viewed together with our GAAP results, we believe Segment Contribution Margin and Adjusted Segment Contribution Margin provide management and users of the financial statements meaningful information about the performance of our business segments. Segment Contribution Margin and Adjusted Segment Contribution Margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of the Segment Contribution Margin and Adjusted Segment Contribution Margin is that they are an incomplete measure of profitability as they do not include all operating expenses or non-operating income and expenses. Management compensates for these limitations when using this measure by looking at other GAAP measures, such as Operating Income and Net Income.

Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share:

We define Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share as Net Income (Loss) and Net Income (Loss) Per Common Share adjusted for certain items affecting period-to-period comparability. See Selected Financial Information below for details on how Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share were calculated for each period presented. We believe that Adjusted Net Income (Loss) and Adjusted or Comparable EPS are meaningful measures because they increase the comparability of period-to-period results. Since these are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, GAAP Net Income (Loss) and Net Income (Loss) Per Common share, as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies.

About 1-800-FLOWERS.COM, Inc.

1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help customers express, connect and celebrate . The Company’s business platform features our all-star family of brands, including: 1-800-Flowers.com ®, 1-800-Baskets.com ®, Cheryl’s Cookies ®, Harry & David ®, PersonalizationMall.com ®, Shari’s Berries ®, FruitBouquets.com ®, Moose Munch ®, The Popcorn Factory ®, Wolferman’s Bakery ® and Simply Chocolate ®. We also offer top-quality steaks and chops from Stock Yards ®. Through the Celebrations Passport ® loyalty program, which provides members with free standard shipping and no service charge across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet ®, an international floral and gift industry service provider offering a broad-range of products and services designed to help members grow their businesses profitably; Napco ℠, a resource for floral gifts and seasonal décor; and DesignPac Gifts [SM] , a manufacturer of gift baskets and towers. 1-800-FLOWERS.COM, Inc. was named to the Forbes 2021 Best Small Companies List. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com or follow @1800FLOWERSInc on Twitter.

Special Note Regarding Forward Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or beliefs concerning future events and can generally be identified using statements that include words such as “estimate,” “expects,” “project,” “believe,” “anticipate,” “intend,” “plan,” “foresee,” “forecast,” “likely,” “will,” “target” or similar words or phrases. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, but not limited to, statements regarding the Company’s ability to achieve its expected results for the fiscal-year 2021 third quarter; the impact of the COVID-19 pandemic on the Company; its ability to successfully integrate acquired businesses and assets; its ability to cost-effectively acquire and retain customers; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to reduce promotional activities and achieve more efficient marketing programs; and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. Reconciliations for forward looking figures would require unreasonable efforts at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including for example those related to compensation, tax items, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The lack of such reconciling information should be considered when assessing the impact of such disclosures. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether because of new information, future events or otherwise, made in this release or in any of its SEC filings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed description of these and other risk factors, refer to the Company’s SEC filings, including the Company’s Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.

Conference Call:

The Company will conduct a conference call to discuss the above details and attached financial results today, Thursday, January 28, 2021, at 8:00 a.m. (ET). The conference call will be webcast live from the Investor Relations section of the Company’s website 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 beginning at 2:00 p.m. ET on the day of the call through November 5, 2020 at: (US) 1-877-344-7529; (Canada) 855-669-9658; (International) 1-412-317-0088; enter conference ID #:10148432.

Note: The 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
 
    December 27, 2020     June 28, 2020  
      (unaudited)          
Assets                
Current assets:                
Cash and cash equivalents   $ 370,586     $   240,506  
Trade receivables, net     72,590         15,178  
Inventories     89,389         97,760  
Prepaid and other     30,879         25,186  
Total current assets     563,444         378,630  
                 
Property, plant and equipment, net     197,598         169,075  
Operating lease right-of-use assets     88,096         66,760  
Goodwill     208,048         74,711  
Other intangibles, net     140,672         66,273  
Other assets     24,402         18,986  
Total assets   $ 1,222,260     $   774,435  
                 
Liabilities and Stockholders' Equity                
Current liabilities:                
Accounts payable   $ 104,965     $   25,306  
Accrued expenses     285,822         141,741  
Current maturities of long-term debt     15,000         5,000  
Current portion of long-term operating lease liabilities     10,953         8,285  
Total current liabilities     416,740         180,332  
                 
Long-term debt     170,912         87,559  
Long-term operating lease liabilities     81,308         61,964  
Deferred tax liabilities     27,244         28,632  
Other liabilities     28,448         16,174  
Total liabilities 724,652         374,661  
Total stockholders’ equity     497,608         399,774  
Total liabilities and stockholders’ equity   $ 1,222,260     $ $ 774,435  
Selected Financial Information
 
    Three Months Ended     Six Months Ended  
    December 27, 2020     December 29, 2019     December 27, 2020     December 29, 2019  
Net revenues:                                
E-Commerce   $ 777,810     $ 487,084     $ 1,016,673     $ 616,134  
Other     99,446       118,558       144,355       176,771  
Total net revenues     877,256       605,642       1,161,028       792,905  
Cost of revenues     479,010       336,470       647,302       447,587  
Gross profit     398,246       269,172       513,726       345,318  
Operating expenses:                                
Marketing and sales     194,696       127,404       274,981       184,243  
Technology and development     14,053       11,733       25,656       22,536  
General and administrative     30,835       22,634       59,048       44,156  
Depreciation and amortization     11,060       7,830       19,900       15,465  
Total operating expenses     250,644       169,601       379,585       266,400  
Operating income     147,602       99,571       134,141       78,918  
Interest expense, net     1,927       985       2,967       1,580  
Other (income) expense, net     (2,257)       (975)       (3,256)       (891)
Income before income taxes     147,932       99,561       134,430       78,229  
Income tax expense     34,255       25,409       30,515       19,348  
Net income   $ 113,677     $ 74,152     $ 103,915     $ 58,881  
                                 
Basic net income per common share   $ 1.76     $ 1.15     $ 1.61     $ 0.91  
                                 
Diluted net income per common share   $ 1.71     $ 1.12     $ 1.56     $ 0.89  
                                 
Weighted average shares used in the calculation of net income per common share:                                
Basic     64,728       64,687       64,524       64,595  
Diluted     66,543       66,401       66,593       66,486  
Selected Financial Information
 
  Six months ended
  December 27, 2020   December 29, 2019
       
Operating activities:      
Net income $ 103,915   $ 58,881
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization   19,900     15,465
Amortization of deferred financing costs   545     325
Deferred income taxes   (1,388)     (1,003)
Bad debt expense   341     731
Stock-based compensation   5,358     4,045
Other non-cash items   (321)     (187)
Changes in operating items:      
Trade receivables   (56,372)     (32,918)
Inventories   25,369     25,358
Prepaid and other   (1,937)     1,021
Accounts payable and accrued expenses   212,340     90,166
Other assets and liabilities   8,897     272
Net cash provided by operating activities   316,647     162,156
       
Investing activities:      
Acquisitions, net of cash acquired   (250,943)     (20,500)
Capital expenditures, net of non-cash expenditures   (15,708)     (10,712)
Purchase of equity investments   (1,285)     (1,001)
Net cash used in investing activities   (267,936)     (32,213)
       
Financing activities:      
Acquisition of treasury stock   (12,470)     (5,030)
Proceeds from exercise of employee stock options   1,032     285
Proceeds from bank borrowings   265,000     20,000
Repayment of notes payable and bank borrowings   (170,000)     (22,500)
Debt issuance cost   (2,193)     (60)
Net cash provided by (used in) financing activities   81,369     (7,305)
       
Net change in cash and cash equivalents   130,080     122,638
Cash and cash equivalents:      
Beginning of period   240,506     172,923
End of period $ 370,586   $ 295,561
Selected Financial Information – Category Information
 
Three Months Ended
December 27, 2020 Personalization Mall Litigation and Transaction Costs Harry & David Store Closure Costs As Adjusted (non-GAAP) December 27, 2020   December 29, 2019 % Change
Net revenues:
Consumer Floral & Gifts $ 305,357 $ - $ - $ 305,357 $ 115,716 163.9%
BloomNet   34,051   34,051   25,722 32.4%
Gourmet Foods & Gift Baskets   538,265   538,265   464,584 15.9%
Corporate   135   135   165 -18.2%
Intercompany eliminations   (552)       (552)   (545) -1.3%
Total net revenues $ 877,256 $ - $ - $ 877,256 $ 605,642 44.8%
 
Gross profit:
Consumer Floral & Gifts $ 134,474 $ - $ - $ 134,474 $ 44,544 201.9%
44.0%   44.0%   38.5%
 
BloomNet 16,820   16,820   13,161 27.8%
49.4%   49.4%   51.2%
 
Gourmet Foods & Gift Baskets 246,890 246,890 211,362 16.8%
45.9%   45.9%   45.5%
 
Corporate 62   62   105 -41.0%
45.9%   45.9%   63.6%
         
Total gross profit $ 398,246 $ - $ - $ 398,246 $ 269,172 48.0%
45.4% -   -   45.4%   44.4%
 
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP) (a):
Consumer Floral & Gifts $ 45,657 $ - $ - $ 45,657 $ 10,890 319.3%
BloomNet 12,141   12,141   9,134 32.9%
Gourmet Foods & Gift Baskets 135,621     (78)   135,543   113,387 19.5%
Segment Contribution Margin Subtotal 193,419 -   (78)   193,341   133,411 44.9%
Corporate (b) (34,757) 513     (34,244)   (26,010) -31.7%
EBITDA (non-GAAP) 158,662 513   (78)   159,097 $ 107,401 48.1%
Add: Stock-based compensation 2,965   2,965   2,280 30.0%
Add: Compensation charge related to NQ Plan Investment Appreciation 2,227       2,227   1,002 122.2%
Adjusted EBITDA (non-GAAP) $ 163,854 $ 513 $ (78) $ 164,289 $ 110,683 48.4%
Selected Financial Information – Category Information
 
Six Months Ended
December 27, 2020 Personalization Mall Litigation and Transaction Costs Harry & David Store Closure Costs As Adjusted (non-GAAP) December 27, 2020   December 29, 2019 % Change
Net revenues:
Consumer Floral & Gifts $ 466,903 $ - $ - $ 466,903 $ 206,484 126.1%
BloomNet   66,789   66,789   51,162 30.5%
Gourmet Foods & Gift Baskets   628,194   628,194   535,799 17.2%
Corporate   241   241   360 -33.1%
Intercompany eliminations   (1,099)       (1,099)   (900) -22.1%
Total net revenues $ 1,161,028 $ - $ - $ 1,161,028 $ 792,905 46.4%
 
Gross profit:
Consumer Floral & Gifts $ 200,060 $ - $ - $ 200,060 $ 80,594 148.2%
  42.8%   42.8%   39.0%
 
BloomNet   31,658   31,658   26,119 21.2%
  47.4%   47.4%   51.1%
 
Gourmet Foods & Gift Baskets   281,897   281,897   238,404 18.2%
  44.9%   44.9%   44.5%
 
Corporate   111   111   201 -44.8%
  46.1%   46.1%   55.8%
         
Total gross profit $ 513,726 $ - $ - $ 513,726 $ 345,318 48.8%
  44.2%   -   -   44.2%   43.6%
 
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP) (a):
Consumer Floral & Gifts $ 64,893 $ - $ - $ 64,893 $ 19,414 234.3%
BloomNet   22,562   22,562   17,491 29.0%
Gourmet Foods & Gift Baskets   133,040     (483)   132,557   106,787 24.1%
Segment Contribution Margin Subtotal   220,495   -   (483)   220,012   143,692 53.1%
Corporate (b)   (66,454)   5,403     (61,051)   (49,309) -23.8%
EBITDA (non-GAAP)   154,041   5,403   (483)   158,961   94,383 68.4%
Add: Stock-based compensation   5,358   5,358   4,045 32.5%
Add: Compensation charge related to NQ Plan Investment Appreciation   3,207   3,207   958 234.8%
Adjusted EBITDA (non-GAAP) $ 162,606 $ 5,403 $ (483) $ 167,526 $ 99,386 68.6%
 
Selected Financial Information
 
Reconciliation of net income to adjusted net income (non-GAAP):   Three Months Ended   Six Months Ended
  December 27, 2020   December 29, 2019   December 27, 2020   December 29, 2019
 
Net income   $ 113,677 $ 74,152 $ 103,915 $ 58,881
Adjustments to reconcile net income to adjusted net income (non-GAAP)  
Add: Personalization Mall litigation and transaction costs     513   5,403
Deduct: Harry & David store closure cost adjustment     (78)   (483)
Deduct: Income tax (benefit) on adjustments     125   (1,117)
Adjusted net income (non-GAAP)   $ 114,237 $ 74,152 $ 107,718 $ 58,881
 
Basic and diluted net income per common share  
Basic   $ 1.76 $ 1.15 $ 1.61 $ 0.91
Diluted   $ 1.71 $ 1.12 $ 1.56 $ 0.89
 
 
Basic and diluted adjusted net income per common share (non-GAAP)  
Basic   $ 1.76 $ 1.15 $ 1.67 $ 0.91
Diluted   $ 1.72 $ 1.12 $ 1.62 $ 0.89
 
Weighted average shares used in the calculation of net income and adjusted net income per common share  
Basic     64,728   64,687   64,524   64,595
Diluted     66,543   66,401   66,593   66,486
 
Selected Financial Information
 
Reconciliation of net income to adjusted EBITDA (non-GAAP): Three Months Ended   Six Months Ended
December 27, 2020   December 29, 2019   December 27, 2020   December 29, 2019
 
Net income $ 113,677 $ 74,152 $ 103,915 $ 58,881
Add: Interest expense, net   (330)   10   (289)   689
Add: Depreciation and amortization   11,060   7,830   19,900   15,465
Add: Income tax expense   34,255   25,409   30,515   19,348
EBITDA   158,662   107,401   154,041   94,383
Add: Stock-based compensation   2,965       5,358    
Add: Compensation charge related to NQ plan investment   2,227   1,002   3,207   958
Add: Personalization Mall litigation and transaction costs   513   5,403
Deduct: Harry & David store closure cost adjustment   (78)   (483)
Adjusted EBITDA $ 164,289 $ 110,683 $ 167,526 $ 99,386
 
 

(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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210128005216/en/

SOURCE: 1-800-FLOWERS.COM, Inc.

Investor Contact:
Joseph D. Pititto
(516) 237-6131
E-mail: invest@1800flowers.com Media Contact:
Kathleen Waugh
(516) 237-6028
kwaugh@1800flowers.com

COMTEX_379734999/2456/2021-01-28T06:45:25

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

Copyright Business Wire 2021

/zigman2/quotes/204552624/composite
US : U.S.: Nasdaq
$ 33.03
+1.49 +4.72%
Volume: 591,865
May 14, 2021 4:00p
P/E Ratio
19.15
Dividend Yield
N/A
Market Cap
$2.15 billion
Rev. per Employee
$346,427
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