Lower revenue & net loss for FTD Companies in Q3 2016
"Our performance for the quarter showed improved segment operating income, reflecting our ongoing cost management discipline," commented Christopher W. Shean, FTD's Interim President and Chief Executive Officer. "With our combination of world class brands and a talented management team, we believe that we are well positioned to more aggressively pursue growth strategies across our floral and gifting businesses. As part of our strategies, we intend to strengthen and differentiate the market positions of ProFlowers as a leader in providing consumers with great value, fresh flowers, and FTD as a leader in premium flowers, celebrating the artistry of our member florists. Our goal is to achieve the appropriate balance between revenue growth and profitability through our strategic initiatives."
Third quarter results
Consolidated revenues were $173.2 million for the third quarter of 2016, compared to $188.5 million for the third quarter of 2015. Changes in foreign currency exchange rates negatively impacted 2016 third quarter revenues by $5.7 million. Consumer revenues in the third quarter of 2015 included $4.1 million of revenues related to gift card and voucher breakage ("breakage"), as previously reported. The decrease in consolidated revenues for the third quarter of 2016 compared to 2015 was more modest excluding the impact of these items and was driven by a decrease in revenues in the Consumer and Provide Commerce segments, partially offset by an increase in revenues in the International segment, excluding foreign currency fluctuations. Revenues in the Florist segment in the third quarter of 2016 were relatively flat compared to the prior year period.
Net loss was $10.0 million for the third quarter of 2016, compared to a net loss of $16.5 million for the third quarter of 2015. Adjusted Net Income for the third quarter of 2016 was $4.9 million, compared to $2.7 million for the same period of the prior year. Adjusted Net Income excludes the after-tax impact of stock-based compensation, amortization, transaction-related costs, litigation and dispute settlement charges, and restructuring and other exit costs.
Adjusted EBITDA was $14.7 million, or 8.5% of consolidated revenues, for the third quarter of 2016, compared to $12.4 million, or 6.6% of consolidated revenues, for the third quarter of 2015. As noted above, the third quarter of 2015 included $4.1 million of revenues and operating income related to breakage. Adjusted EBITDA was $8.3 million for the third quarter of 2015, or 4.5% of consolidated revenues, excluding breakage. Adjusted Net Income and Adjusted EBITDA are non-GAAP financial measures. Please refer to the tables in this press release for a reconciliation of all non-GAAP financial measures.
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