FTD sees revenues slip

FTD Companies announced financial results for the fourth quarter and full year ended December 31, 2018.

“We are disappointed we did not achieve our financial objectives for the fourth quarter and full year 2018. The shortfall was largely due to business performance during the fourth quarter holiday period,” commented Scott Levin, FTD’s President and Chief Executive Officer. “For 2019, we are updating our outlook based on lower than expected results for the Valentine’s Day holiday, and we are focused on improving the Company’s performance for the upcoming Mother’s Day holiday. Our Board of Directors and management team remain committed to our ongoing review of strategic alternatives as we seek to maximize stockholder value. We are also focused on realizing the benefits from our previously announced corporate restructuring and cost savings plan, which we expect will total $25 million to $28 million for 2019.”

Fourth quarter results
Consolidated revenues were $247.5 million for the fourth quarter of 2018, a decrease of 11.0% compared to $278.1 million for the fourth quarter of 2017, due to lower revenues in all of the company’s business segments. Foreign currency exchange rates had a $1.3 million unfavorable impact on consolidated revenues during the fourth quarter of 2018.

Net loss was $68.8 million for the fourth quarter of 2018, compared to a net loss of $153.5 million for the fourth quarter of 2017. Net loss includes pre-tax non-cash impairment charges related to goodwill, intangible assets, and other long-lived assets of $67.1 million and $194.6 million, for the fourth quarters of 2018 and 2017, respectively.

Adjusted EBITDA was $12.6 million, or 5.1% of consolidated revenues, for the fourth quarter of 2018, compared to Adjusted EBITDA of $15.6 million, or 5.6% of consolidated revenues, for the fourth 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.

Full year results
Consolidated revenues were $1.01 billion for the year ended December 31, 2018, a decrease of 6.4% compared to $1.08 billion for the year ended December 31, 2017, due to lower revenues in all of the Company’s business segments. Foreign currency exchange rates had a $6.5 million favorable impact on consolidated revenues for the year ended December 31, 2018.

Net loss was $224.7 million for the year ended December 31, 2018, compared to a net loss of $234.0 million for the year ended December 31, 2017. Net loss includes pre-tax non-cash impairment charges related to goodwill, intangible assets, and other long-lived assets of $206.7 million and $300.3 million for the years ended December 31, 2018 and 2017, respectively. Restructuring and other exit costs incurred were $18.2 million and $2.2 million for the years ended December 31, 2018 and 2017, respectively.

Access the full results here.


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