FTD sees lower flower sales in U.S.

FTD announced financial results for the second quarter and six months ended June 30, 2018.

Scott Levin, FTD’s Interim President and Chief Executive Officer, commented, “Our results for the second quarter were impacted by continued headwinds from lower than expected traffic and conversion in our U.S. consumer segment as well as the resulting lower order volume that affected the florist segment. Our team is focused on stabilizing the company’s performance. We believe our recently announced corporate restructuring and cost savings plan will help propel our organization forward, as we seek to capitalize on opportunities to optimize our operations, drive efficiency, and reduce costs. Our Board of Directors and management team are committed to the previously announced review of strategic alternatives to maximize stockholder value. At the same time, our organization intends to execute on our strategic initiatives in conjunction with our new corporate restructuring and cost savings plan.”

Second quarter results
Consolidated revenues were $299.9 million for the second quarter of 2018, a decrease of 8.6% compared to $328.1 million for the second quarter of 2017, primarily due to a decrease in revenues in the U.S. consumer and florist segments. International segment revenues were relatively stable in constant currency for the second quarter of 2018 compared to the prior-year quarter. Foreign currency exchange rates had a $1.8 million favorable impact on consolidated revenues during the second quarter of 2018.

Net loss was $118.1 million for the second quarter of 2018, compared to net income of $9.7 million for the second quarter of 2017. Net loss includes pre-tax non-cash impairment charges related to goodwill, intangible assets, and other long-lived assets of $136.9 million for the second quarter of 2018.

Adjusted EBITDA was $17.0 million, or 5.7% of consolidated revenues, for the second quarter of 2018, compared to $31.2 million, or 9.5% of consolidated revenues, for the second quarter of 2017. Adjusted EBITDA is a non-GAAP financial measure. Please refer to the tables in this press release for a reconciliation of all non-GAAP financial measures.

Six-month results
Consolidated revenues were $618.1 million for six months ended June 30, 2018, a decrease of 4.1% compared to $644.6 million for the first six months of 2017, primarily due to a decrease in revenues in the U.S. consumer and florist segments, partially offset by an increase in revenues in the International segment. Foreign currency exchange rates had a $7.9 million favorable impact on consolidated revenues for the six months ended June 30, 2018.

Net loss was $124.7 million for the six months ended June 30, 2018, compared to net income of $18.7 million for the first six months of 2017. Net loss includes pre-tax non-cash impairment charges related to goodwill, intangible assets, and other long-lived assets of $139.2 million for the 2018 period.

Adjusted EBITDA was $21.8 million, or 3.5% of consolidated revenues, for the six months ended June 30, 2018, compared to $62.3 million, or 9.7% of consolidated revenues, for the first six months of 2017.

Florist segment
Florist segment revenues for the second quarter of 2018 decreased 9.5% to $39.9 million, compared to $44.1 million for the second quarter of 2017. This decrease was primarily due to lower order-related and online services revenues and lower products revenues, primarily related to a planned reduction in container offerings and related pricing and a decline in technology system sales. Average revenues per member decreased 2.7% to $3,873 for the second quarter of 2018, compared to $3,981 for the prior-year quarter. Florist segment operating income was $10.8 million, or 27.2% of segment revenues, for the second quarter of 2018, compared to $12.2 million, or 27.8% of segment revenues, for the second quarter of 2017.

Florist segment revenues for the six months ended June 30, 2018 decreased 7.1% to $84.1 million, compared to $90.6 million for the first six months of 2017. This decrease was primarily due to lower order-related and online services revenues and products revenues, primarily related to a planned reduction in container offerings and related pricing and a decline in technology system sales, partially offset by an increase in fresh flower sales. Average revenues per member decreased 0.8% to $8,055 for the six months ended June 30, 2018, compared to $8,122 for the first six months of 2017. Florist segment operating income was $23.1 million, or 27.5% of segment revenues, for the six months ended June 30, 2018, compared to $26.2 million, or 28.9% of segment revenues, for the first six months of 2017.


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