FTD Companies announces 2017 results
John Walden, President and Chief Executive Officer of FTD, said, “Preliminary 2017 financial results are in-line with our expectations. For 2018, our team laid out an ambitious, new five-year strategic plan focused on rebuilding winning customer brands, recreating a network of strong florist partners, gaining supply chain efficiencies and extending our business in complementary non-floral categories. It will take time for these efforts to deliver benefits across our businesses as we build new capabilities and test new consumer offers in order to reverse negative trends from prior years. For the Valentine’s Day holiday this year we took a different approach to media-based marketing in certain brands, and the results were substantially short of our expectations. We will incorporate our many learnings from Valentine’s Day to inform our plans throughout this year and in the future.”
Preliminary and unaudited full-year 2017 results
Preliminary full-year 2017 results are expected to be within the ranges the company has previously provided, including consolidated revenues in the range of $1.082 billion to $1.086 billion, net loss in the range of $220 million to $250 million and Adjusted EBITDA in the range of $77 million to $82 million. Included in the expected net loss are expected impairments of goodwill and intangible and other long-lived assets, net of taxes, of $250 million to $275 million. Adjusted EBITDA is a non-GAAP financial measure.
2018 business outlook
The company recently completed the Valentine’s Day holiday sales period, which typically represents a seasonally strong period in the company’s first quarter. As a result of the company’s performance during the 2018 Valentine’s Day period, the company expects consolidated revenues for the first quarter of 2018 to be approximately $20 million below internal expectations, with unfavorable performance from ProFlowers and Gourmet Foods due largely to media campaign investments that generated lower than expected sales, offset in part by favorable sales performance in FTD.com, the International and Florist segments, and Personal Creations. While lower expenses throughout 2018, primarily reduced performance-based compensation costs, are expected to provide some offset to the shortfall in first quarter revenues, this shortfall will largely flow through to lower Adjusted EBITDA for the first quarter of 2018. Taking into account the full year impact of these 2018 year-to-date results, the company expects that its results for the full year will be in the lower half of its previously communicated guidance range for consolidated revenues and Adjusted EBITDA.
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