1-800-FLOWERS.COM, Inc. Reports Fiscal 2023 Third Quarter Results

1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships, today reported results for its fiscal 2023 third quarter, ended April 2, 2023.

Fiscal 2023 Third Quarter Highlights

• Total consolidated revenues decreased 11.1% to $417.6 million, compared with total consolidated revenues of $469.6 million in the prior year period.
• Gross profit margin for the quarter increased 80 basis points to 33.6%, compared with 32.8% in the prior year period.
• Operating expenses increased $44.7 million from the prior year period, including a $64.6 million non-cash goodwill and intangible assets impairment charge. Excluding the impact of this charge, operating expenses declined $19.8 million or 11.0%, as compared with the prior year period.
• Net loss for the quarter was $71.0 million, or $1.10 per share, which includes an after-tax non-cash goodwill and intangible assets impairment charge of $53.1 million or $0.82 per share. Adjusted Net Loss¹ was $17.8 million, or $0.27 per share.
• Adjusted EBITDA¹ for the quarter was a loss of $5.5 million, as compared with an Adjusted EBITDA¹ loss of $12.0 million in the prior year period.

Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said “Our third quarter results reflect a continuation of the trends that we have experienced throughout this fiscal year. In this challenging consumer environment, we are executing on our strategy to invest in and develop stronger customer relationships, while continuing to identify operating efficiencies to reduce expenses. As a result of our expense optimization efforts, combined with improving gross margin, we exceeded our Adjusted EBITDA¹ expectations for the quarter and are raising our full year Adjusted EBITDA¹ guidance.”

McCann added, “We will continue to optimize operating expenses in this environment, while simultaneously investing in the long-term growth of our business, as evidenced by the recent acquisitions of Things Remembered and SmartGift. We believe these efforts position us well once the broader consumer environment improves and reinforce our company as a premier gifting destination that helps our customers connect with the important people in their lives.”

Third Quarter 2023 Financial Results

Total consolidated revenues decreased 11.1% to $417.6 million, as compared with total consolidated revenues of $469.6 million in the prior year period.

Gross profit margin for the quarter was 33.6%, increasing 80 basis points from the prior year period led by the Consumer Floral and Gifts and BloomNet segments. Operating expenses, excluding the impairment charge noted above, stock-based compensation, appreciation-or-depreciation of investments in the Company’s non-qualified compensation plan, and the costs associated with a legal settlement in the prior year period, were 38.1% of total sales, or flat with the prior year period, as lower advertising and labor costs were offset by higher depreciation and amortization due to our capital investments in technology and automation.

As a result, the Company generated a net loss of $71.0 million, or ($1.10) per share, and an Adjusted Net Loss¹ of $17.8 million, or ($0.27) per share, compared with a net loss of $23.4 million, or ($0.36) per share, and an Adjusted Net Loss¹ of $21.0 million, or ($0.32) per share, in the prior year period.

Adjusted EBITDA¹ for the quarter was a loss of $5.5 million, as compared with an Adjusted EBITDA¹ loss of $12.0 million in the prior year period.

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 decreased 11.7% to $147.9 million, compared with $167.4 million in the prior year period. Gross profit margin was 24.6%, compared with 25.3% in the prior year period, declining on continued higher commodity costs, increased promotional activity and overhead cost deleveraging. Segment contribution margin¹ without the impairment charge was a loss of $13.9 million, compared with an adjusted loss¹ of $14.2 million a year ago.
• Consumer Floral and Gifts: Revenues decreased 11.8% to $233.0 million, compared with $264.2 million in the prior year period. Gross profit margin increased to 37.9%, compared with 36.7% in the prior year period, on strategic pricing initiatives and lower cost of merchandise in part due to lower ocean freight costs. Segment contribution margin¹ was $26.1 million, compared with $20.5 million the prior year.
• BloomNet: Revenues for the quarter decreased 3.8% to $37.0 million, compared with $38.4 million in the prior year period. Gross profit margin increased to 42.5%, compared with 38.7% in the prior year on strategic pricing initiatives and lower ocean freight costs. Segment contribution margin¹ was $11.0 million, compared with $9.8 million in the prior year period.

Company Guidance

Based on its third quarter performance and outlook for the balance of the year, the Company is updating its Fiscal 2023 guidance. This outlook includes a continuation of the challenging consumer environment, which is expected to be mitigated by the Company’s expense management efforts.

The Company expects:

• total revenues to decline approximately 8% as compared with the prior year;
• adjusted EBITDA¹ to be in a range of $85 million to $90 million; and
• Free Cash Flow¹ to exceed $75 million.

Conference Call

The Company will conduct a conference call to discuss the above details and attached financial results today, Thursday, May 11, at 8:00 a.m. (ET). The conference call will be webcast from the Investors section of the Company’s website at www.1800flowersinc.com. A recording of the call will be posted on the Investors section of the Company’s website within two hours of the call’s completion. A telephonic replay of the call can be accessed beginning at 2:00 p.m. (ET) today through May 18, 2023, at: (US) 1-877-344-7529; (Canada) 855-669-9658; (International) 1-412-317-0088; enter conference ID #: 4785326.

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. 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. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The lack of such reconciling information should be considered when assessing the impact of such disclosures.

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 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 this limitation when using these measures 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) Per Common Share 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 Net Income (Loss) Per Common Share 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.

Free Cash Flow:

We define Free Cash Flow as net cash provided by operating activities less capital expenditures. The Company considers Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of fixed assets, which can then be used to, among other things, invest in the Company’s business, make strategic acquisitions, strengthen the balance sheet, and repurchase stock or retire debt. Free Cash Flow is a liquidity measure that is frequently used by the investment community in the evaluation of similarly situated companies. Since Free Cash Flow is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. A limitation of the utility of Free Cash Flow as a measure of financial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period.

About 1-800-FLOWERS.COM, Inc.

1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships. The Company’s e-commerce business platform features an 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, Things Remembered, Moose Munch, The Popcorn Factory, Wolferman’s Bakery, Vital Choice, Stock Yards and Simply Chocolate. 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; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; and Alice’s Table, a lifestyle business offering fully digital livestreaming and on demand floral, culinary and other experiences to guests across the country. 1-800-FLOWERS.COM, Inc. was recognized among the top 5 on the National Retail Federation’s 2021 Hot 25 Retailers list, which ranks the nation’s fastest-growing retail companies, and was named to the Fortune 1000 list in 2022. 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.

FLWS–COMP
FLWS-FN

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 guidance for the full Fiscal year; the Company’s ability to leverage its operating platform and reduce its operating expense ratio; its ability to sell through existing inventories; its ability to successfully integrate acquired businesses and assets; its ability to successfully execute its strategic initiatives; 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 industry and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. 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.

Note: The following 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 Condensed Consolidated Balance Sheets (in thousands)
		April 2, 2023			July 3, 2022
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	51,598		$	31,465
Trade receivables, net			36,792			23,812
Inventories			191,894			247,563
Prepaid and other			39,183			45,398
Total current assets			319,467			348,238
Property, plant and equipment, net			231,476			236,481
Operating lease right-of-use assets			128,746			129,390
Goodwill			153,376			213,287
Other intangibles, net			141,002			145,568
Other assets			24,720			21,927
Total assets		$	998,787		$	1,094,891
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	21,825		$	57,386
Accrued expenses			147,750			175,392
Current maturities of long-term debt			20,000			20,000
Current portion of long-term operating lease liabilities			15,517			12,919
Total current liabilities			205,092			265,697
Long-term debt, net			128,112			142,497
Long-term operating lease liabilities			121,568			123,662
Deferred tax liabilities, net			31,352			35,742
Other liabilities			20,665			17,884
Total liabilities			506,789			585,482
Total stockholders’ equity			491,998			509,409
Total liabilities and stockholders’ equity		$	998,787		$	1,094,891

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Operations (in thousands, except for per share data) (unaudited)
		Three Months Ended								Nine Months Ended
		April 2, 2023				March 27, 2022				April 2, 2023				March 27, 2022
Net revenues:
E-Commerce		$	357,801			$	409,777			$	1,387,133			$	1,500,670
Other			59,765				59,799				231,914				221,323
Total net revenues			417,566				469,576				1,619,047				1,721,993
Cost of revenues			277,126				315,485				1,009,383				1,063,938
Gross profit			140,440				154,091				609,664				658,055
Operating expenses:
Marketing and sales			106,472				130,645				390,077				432,795
Technology and development			14,837				14,456				44,529				41,369
General and administrative			25,922				22,553				81,075				78,491
Depreciation and amortization			13,267				12,693				40,276				36,251
Goodwill and intangible impairment			64,586				-				64,586				-
Total operating expenses			225,084				180,347				620,543				588,906
Operating income (loss)			(84,644	)			(26,256	)			(10,879	)			69,149
Interest expense, net			1,712				1,226				8,676				4,477
Other expense (income), net			1,404				4,007				2,474				954
Income (loss) before income taxes			(87,760	)			(31,489	)			(22,029	)			63,718
Income tax expense (benefit)			(16,767	)			(8,080	)			126				11,858
Net income (loss)		$	(70,993	)		$	(23,409	)		$	(22,155	)		$	51,860
Basic net income (loss) per common share		$	(1.10	)		$	(0.36	)		$	(0.34	)		$	0.80
Diluted net income (loss) per common share		$	(1.10	)		$	(0.36	)		$	(0.34	)		$	0.79
Weighted average shares used in the calculation of net income (loss) per common share:
Basic			64,767				65,028				64,660				65,086
Diluted			64,767				65,028				64,660				65,849

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Cash Flows (in thousands) (unaudited)
		Nine Months Ended
		April 2, 2023				March 27, 2022
Operating activities:
Net income (loss)		$	(22,155	)		$	51,860
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Goodwill and intangible asset impairment			64,586
Depreciation and amortization			40,276				36,251
Amortization of deferred financing costs			998				943
Deferred income taxes			(4,390	)			(1,678	)
Bad debt expense			2,997				(873	)
Stock-based compensation			5,941				6,803
Other non-cash items			(245	)			1,352
Changes in operating items:
Trade receivables			(15,977	)			(18,570	)
Inventories			57,031				(51,928	)
Prepaid and other			2,706				7,174
Accounts payable and accrued expenses			(59,806	)			6,847
Other assets and liabilities			1,102				547
Net cash provided by operating activities			73,064				38,728
Investing activities:
Acquisitions, net of cash acquired			(5,000	)			(22,105	)
Capital expenditures, net of non-cash expenditures			(31,351	)			(47,945	)
Net cash used in investing activities			(36,351	)			(70,050	)
Financing activities:
Acquisition of treasury stock			(1,197	)			(34,788	)
Proceeds from exercise of employee stock options			-				846
Proceeds from bank borrowings			195,900				125,000
Repayment of notes payable and bank borrowings			(210,900	)			(140,000	)
Debt issuance cost			(383	)			(284	)
Net cash used in financing activities			(16,580	)			(49,226	)
Net change in cash and cash equivalents			20,133				(80,548	)
Cash and cash equivalents:
Beginning of period			31,465				173,573
End of period		$	51,598			$	93,025

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited)
		Three Months Ended
		April 2, 2023				Goodwill and Intangible Impairment			Things Remembered Transaction Costs			As Adjusted (non-GAAP) April 2, 2023				March 27, 2022				Vital Choice and Alice's Table Transaction Costs			Litigation Settlement			As Adjusted (non-GAAP) March 27, 2022				% Change
Net revenues:
Consumer Floral & Gifts		$	233,019			$	-		$	-		$	233,019			$	264,243			$	-		$	-		$	264,243			-11.8	%
BloomNet			36,968										36,968				38,448										38,448			-3.8	%
Gourmet Foods & Gift Baskets			147,863										147,863				167,402										167,402			-11.7	%
Corporate			36										36				43										43			-16.3	%
Intercompany eliminations			(320	)									(320	)			(560	)									(560	)		42.9	%
Total net revenues		$	417,566			$	-		$	-		$	417,566			$	469,576			$	-		$	-		$	469,576			-11.1	%
Gross profit:
Consumer Floral & Gifts		$	88,317									$	88,317			$	96,875									$	96,875			-8.8	%
			37.9	%									37.9	%			36.7	%									36.7	%
BloomNet			15,720										15,720				14,895										14,895			5.5	%
			42.5	%									42.5	%			38.7	%									38.7	%
Gourmet Foods & Gift Baskets			36,371										36,371				42,343										42,343			-14.1	%
			24.6	%									24.6	%			25.3	%									25.3	%
Corporate			32										32				(22	)									(22	)		245.5	%
			88.9	%									88.9	%			-51.2	%									-51.2	%
Total gross profit		$	140,440			$	-		$	-		$	140,440			$	154,091			$	-		$	-		$	154,091			-8.9	%
			33.6	%			-			-			33.6	%			32.8	%			-			-			32.8	%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP) (a):
Consumer Floral & Gifts		$	26,136			$	-					$	26,136			$	20,523			$	-		$	-		$	20,523			27.3	%
BloomNet			10,982										10,982				9,783										9,783			12.3	%
Gourmet Foods & Gift Baskets			(78,480	)			64,586						(13,894	)			(17,134	)						2,900			(14,234	)		2.4	%
Segment Contribution Margin Subtotal			(41,362	)			64,586			-			23,224				13,172				-			2,900			16,072			44.5	%
Corporate (b)			(30,015	)						201			(29,814	)			(26,735	)			25						(26,710	)		-11.6	%
EBITDA (non-GAAP)			(71,377	)			64,586			201			(6,590	)			(13,563	)			25			2,900			(10,638	)		38.1	%
Add: Stock-based compensation			2,487										2,487				1,507										1,507			65.0	%
Add: Compensation charge related to NQ Plan Investment (Depreciation) Appreciation			(1,446	)									(1,446	)			(2,881	)									(2,881	)		49.8	%
Adjusted EBITDA (non-GAAP)		$	(70,336	)		$	64,586		$	201		$	(5,549	)		$	(14,937	)		$	25		$	2,900		$	(12,012	)		53.8	%

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited)
		Nine Months Ended
		April 2, 2023				Goodwill and Intangible Impairment			Things Remembered Transaction Costs			As Adjusted (non-GAAP) April 2, 2023				March 27, 2022				Vital Choice and Alice's Table Transaction Costs			Litigation Settlement			As Adjusted (non-GAAP) March 27, 2022				% Change
Net revenues:
Consumer Floral & Gifts		$	672,248			$	-		$	-		$	672,248			$	760,555			$	-		$	-		$	760,555			-11.6	%
BloomNet			103,187										103,187				107,212										107,212			-3.8	%
Gourmet Foods & Gift Baskets			844,522										844,522				855,830										855,830			-1.3	%
Corporate			152										152				157										157			-3.2	%
Intercompany eliminations			(1,062	)									(1,062	)			(1,761	)									(1,761	)		39.7	%
Total net revenues		$	1,619,047			$	-		$	-		$	1,619,047			$	1,721,993			$	-		$	-		$	1,721,993			-6.0	%
Gross profit:
Consumer Floral & Gifts		$	262,510			$	-		$	-		$	262,510			$	302,903			$	-		$	-		$	302,903			-13.3	%
			39.0	%									39.0	%			39.8	%									39.8	%
BloomNet			44,086										44,086				46,325										46,325			-4.8	%
			42.7	%									42.7	%			43.2	%									43.2	%
Gourmet Foods & Gift Baskets			302,902										302,902				308,745										308,745			-1.9	%
			35.9	%									35.9	%			36.1	%									36.1	%
Corporate			166										166				82										82			102.4	%
			109.2	%									109.2	%			52.2	%									52.2	%
Total gross profit		$	609,664			$	-		$	-		$	609,664			$	658,055			$	-		$	-		$	658,055			-7.4	%
			37.7	%			-			-			37.7	%			38.2	%			-			-			38.2	%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP) (a):
Consumer Floral & Gifts		$	64,832			$	-		$	-		$	64,832			$	77,869			$	-		$	-		$	77,869			-16.7	%
BloomNet			29,847										29,847				32,530										32,530			-8.2	%
Gourmet Foods & Gift Baskets			26,313				64,586						90,899				85,695							2,900			88,595			2.6	%
Segment Contribution Margin Subtotal			120,992				64,586			-			185,578				196,094				-			2,900			198,994			-6.7	%
Corporate (b)			(91,595	)						444			(91,151	)			(90,694	)			540						(90,154	)		-1.1	%
EBITDA (non-GAAP)			29,397				64,586			444			94,427				105,400				540			2,900			108,840			-13.2	%
Add: Stock-based compensation			5,941										5,941				6,803										6,803			-12.7	%
Add: Compensation charge related to NQ Plan Investment (Depreciation) Appreciation			(2,548	)									(2,548	)			111										111			-2,395.5	%
Adjusted EBITDA (non-GAAP)		$	32,790			$	64,586		$	444		$	97,820			$	112,314			$	540		$	2,900		$	115,754			-15.5	%

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited)
Reconciliation of net income (loss) to adjusted net income (loss) (non-GAAP):		Three Months Ended								Nine Months Ended
		April 2, 2023				March 27, 2022				April 2, 2023				March 27, 2022
Net income (loss)		$	(70,993	)		$	(23,409	)		$	(22,155	)		$	51,860
Adjustments to reconcile net income (loss) to adjusted net income (loss) (non-GAAP)
Add: Transaction costs			201				25				444				540
Add: Litigation settlement			-				2,900				-				2,900
Add: Goodwill and Intangibles Impairment			64,586				-				64,586				-
Deduct: Income tax effect on adjustments			(11,546	)			(533	)			(11,609	)			(641	)
Adjusted net income (loss) (non-GAAP)		$	(17,752	)		$	(21,017	)		$	31,266			$	54,659
Basic and diluted net income (loss) per common share
Basic		$	(1.10	)		$	(0.36	)		$	(0.34	)		$	0.80
Diluted		$	(1.10	)		$	(0.36	)		$	(0.34	)		$	0.79
Basic and diluted adjusted net income (loss) per common share (non-GAAP)
Basic		$	(0.27	)		$	(0.32	)		$	0.48			$	0.84
Diluted		$	(0.27	)		$	(0.32	)		$	0.48			$	0.83
Weighted average shares used in the calculation of basic and diluted net income (loss) and adjusted net income (loss) per common share
Basic			64,767				65,028				64,660				65,086
Diluted			64,767				65,028				64,660				65,849

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited)
Reconciliation of net income (loss) to adjusted EBITDA (non-GAAP):		Three Months Ended								Nine Months Ended
		April 2, 2023				March 27, 2022				April 2, 2023				March 27, 2022
Net income (loss)		$	(70,993	)		$	(23,409	)		$	(22,155	)		$	51,860
Add: Interest expense and other, net			3,116				5,233				11,150				5,431
Add: Depreciation and amortization			13,267				12,693				40,276				36,251
Add: Income tax expense (benefit)			(16,767	)			(8,080	)			126				11,858
EBITDA			(71,377	)			(13,563	)			29,397				105,400
Add: Stock-based compensation			2,487				1,507				5,941				6,803
Add: Compensation charge related to NQ plan investment (depreciation) appreciation			(1,446	)			(2,881	)			(2,548	)			111
Add: Goodwill and Intangible Impairment			64,586				-				64,586				-
Add: Transaction costs			201				25				444				540
Add: Litigation settlement			-				2,900				-				2,900
Adjusted EBITDA		$	(5,549	)		$	(12,012	)		$	97,820			$	115,754
(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/20230511005059/en/

The 1-800-Flowers.com (A) Stock at the time of publication of the news with a raise of +1,51 % to 8,73USD on Nasdaq stock exchange (11. Mai 2023, 12:02 Uhr).