Internet Orders Up 202%
Internet Revenues Up 221%
Total Revenues Up 86%
Internet Orders 74% of Total Orders
DOWNERS GROVE, Ill., Jan. 27 /PRNewswire/ -- FTD.COM (Nasdaq: EFTD) today
announced financial results for its fiscal second quarter ended
December 31, 1999. Total revenues in the quarter were $23.6 million, an
increase of 86% compared to $12.7 million in the quarter ended
December 31, 1998. Net loss in the quarter ended December 31, 1999 was
$11.2 million, or $0.24 per share, compared to a net loss of $1.1 million, or
a pro forma net loss per share of $0.03, in the same quarter of the prior
year. FTD.COM closed its initial public offering (IPO) in October 1999.
During the quarter ended December 31, 1999, FTD.COM's customers placed
383,627 orders, an increase of 73% from the 221,701 orders our customers
placed in the same period last year. Internet orders increased 202% in the
current quarter to 282,309, or 74% of total orders, from 93,518, or 42% of
total orders, in the quarter ended December 31, 1998. Cumulative customer
accounts totaled 1,795,557 at December 31, 1999, an increase of 13% from
1,582,887 customers at September 30, 1999 and a 54% increase in customer
accounts over December 31, 1998.
Michael J. Soenen, President and Chief Executive Officer, commented, "The
second quarter results have clearly demonstrated the value of the FTD.COM
brand as we recognized strong year over year growth in online revenue and new
customers. The successful launch of our "Be a Hero" advertising campaign has
been the driving force behind the significant increases in our customer base
and orders placed. By continuing to improve our web site, expanding our
product line and maintaining our commitment to provide superior customer
service, we will achieve our mission of helping people enhance their personal
and professional relationships."
Other recent highlights include:
-- Traffic Increases 203% / Internet Revenues Up 221%. Traffic on the
FTD.COM web site increased more than 203% in the second quarter of
fiscal 2000 compared to the same period of the prior year. Internet
revenues in the second quarter were approximately $17.0 million, an
increase of 221% compared to $5.3 million in the quarter ended
December 31, 1998.
-- Egreetings Partnership. FTD.COM announced a partnership with
Egreetings to offer consumers enhanced greeting and gift options.
Elements of the agreement include special boutique offerings and
cross-marketing efforts at both web sites. Under this marketing
partnership, FTD.COM will offer its customers exclusive digital
greeting cards designed by Egreetings. On the Egreetings.com(R) site,
FTD.COM will become the exclusive flower provider through a jointly
developed boutique that will provide floral arrangements and specialty
gifts to Egreetings.com customers.
-- Victoria's Secret Partnership. FTD.COM announced a partnership with
victoriassecret.com to combine FTD.COM flowers and a Victoria's Secret
electronic gift certificate. These products will be featured
extensively on both web sites throughout the Valentine's season.
-- Yahoo! / MSN Alliances. FTD.COM became the featured store on Yahoo!
Shopping and renewed its position on MSN eShop. On Yahoo! Shopping,
FTD.COM is the featured floral and specialty gift provider with a fixed
placement module in the "Featured Stores" section. On MSN eShop,
FTD.COM became the featured store in the flower and gifts department.
-- Corporate Relationship with Cendant Real Estate Franchises. FTD.COM
was chosen as the exclusive flower and custom gift basket partner for
Cendant Corporation's real estate brokers and agents, which include
Century 21, Coldwell Banker and ERA realtors. The three-year
relationship gives FTD.COM exclusive rights to market to realtors
through Cendant and its Realty Division's meetings and conventions.
Cendant's Real Estate Division sells more than 1.9 million homes
annually.
-- New Product Introductions. During the second quarter of fiscal year
2000, FTD.COM's specialty gift line grew to include new gourmet
products (Lobstergrams(R), Pfaelzer meat and fresh baked cakes), picnic
baskets, major league baseball baskets, dried floral arrangements, new
bath and beauty products (H2O products), candles, and newly licensed
products incorporating Mickey, Pooh and M&M's. A total of 110 new
products were added in this quarter.
About FTD.COM
FTD.COM is an Internet and telephone marketer of flowers and specialty
gifts. Founded by FTD, the world's largest floral services organization,
FTD.COM sells directly to consumers through its http://www.FTD.COM web site and its
1-800-SEND-FTD telephone number. Utilizing a group of approximately 6,500 FTD
florists who adhere to the highest quality and service standards, FTD.COM
provides same-day delivery of floral orders to nearly 100% of the U.S.
population. FTD.COM offers a wide variety of unique floral arrangements and
specialty gifts for holidays and other occasions. Additional information
about FTD.COM, including investor relations, is available at the company's web
site, http://www.FTD.COM .
Conference Call
A conference call will be conducted January 27 at 11:00 a.m. Eastern Time
(ET) to review the results of the second quarter. The conference call will be
available to all interested parties over the Internet. To listen to the call
on the web go to http://www.FTD.COM or http://www.vcall.com at least fifteen
minutes early to register, download, and install any necessary audio software.
For those who cannot listen to the live broadcast, a replay will be available
shortly after the call at http://www.FTD.COM, http://www.vcall.com or by
dialing 703-925-2435 and providing confirmation number 2747738.
Forward-Looking Statements
This press release contains various "forward-looking statements" regarding
future results of operations and market opportunities that are based on
FTD.COM's current expectations, assumptions, estimates, and projections about
the company and its industry. Investors are cautioned that actual results
could differ from those anticipated by the forward-looking statements as a
result of the success of FTD.COM's marketing campaign; competition from
existing and potential new competitors; levels of discretionary consumer
purchases of flowers and specialty gifts; market growth expectations;
FTD.COM's ability to increase capacity and introduce enhancements to its web
site; and the existence of system failures. These factors, along with other
potential risks and uncertainties, are discussed in FTD.COM's reports and
other documents filed with the Securities and Exchange Commission.
FTD.COM INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
December 31, December 31,
1998 1999 1998 1999
(In thousands except per share data)
Revenues:
Order revenues and
service fees, net
of discounts $11,566 $20,947 $17,140 $31,723
Commissions
from FTDI 1,056 1,714 1,586 2,683
Other, principally
from FTDI 66 927 67 1,625
Total revenues 12,688 23,588 18,793 36,031
Fulfillment and
processing service 9,870 16,955 14,730 25,915
Gross profit 2,818 6,633 4,063 10,116
Operating expenses:
Marketing and
promotions 3,115 14,276 4,700 18,404
Technology development 396 1,571 869 3,218
General and
administrative 1,087 2,605 1,890 4,261
Total operating expenses 4,598 18,452 7,459 25,883
Loss from operations (1,780) (11,819) (3,396) (15,767)
Interest income -- 600 -- 698
Interest expense (75) -- (105) --
Loss before income taxes (1,855) (11,219) (3,501) (15,069)
Income tax benefit 742 -- 1,400 --
Net loss $(1,113) $(11,219) $(2,101) $(15,069)
Basic and diluted net
loss per share of
common stock $(0.03)(a) $(0.24) $(0.05)(a) $(0.34)
Weighted average common
shares used in the
calculation of
basic and diluted net
loss per share 40,920(a) 47,234 40,920(a) 44,127
(a) Pro forma presentation. Shares used in the calculation of basic
and diluted net loss per share give pro forma effect to the common
stock issued to Florists' Transworld Delivery, Inc. (FTDI) in
connection with the formation of the Company on
May 19, 1999. FTD.COM INC.
FTD.COM INC.
BALANCE SHEETS
(In thousands)
June 30, December 31,
ASSETS 1999 1999
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $8,205 $33,284
Accounts receivable 233 124
Prepaid expenses 215 1,426
Distribution agreements 1,707 881
Deferred offering expenses 1,062 --
Total current assets 11,422 35,715
OTHER ASSETS:
Software development costs -- 2,509
Total other assets -- 2,509
Total assets $11,422 $38,224
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $2,021 $8,248
Payable to FTDI 311 740
Unearned revenue 129 74
Accrued offering expenses 638 364
Other accrued liabilities 154 678
Total current liabilities 3,253 10,104
Series A 8% Cumulative Redeemable
Convertible Preferred Stock, $.01 par
value; 90,000 shares issued and
outstanding at June 30, 1999;
no shares issued and outstanding
at December 31, 1999 9,074 --
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock, $.01 par value;
5,000,000 shares authorized; 90,000 shares of
Series A 8% Cumulative Redeemable
Preferred Stock issued and outstanding
at June 30, 1999; no shares issued and
outstanding at December 31, 1999 -- --
Class A common stock, $.01 par value;
250,000,000 shares authorized; no shares
issued and outstanding at June 30,1999;
6,379,614 shares issued and outstanding
at December 31, 1999 -- 64
Class B common stock, $.01 par value;
100,000,000 shares authorized; 40,920,000
shares issued and outstanding at
June 30, 1999 and December 31, 1999 409 409
Additional paid-in capital -- 44,119
Deferred compensation -- (163)
Retained deficit (1,314) (16,309)
Total stockholders' equity (deficit) (905) 28,120
Total liabilities and stockholders'
equity (deficit) $11,422 $38,224
FTD.COM INC.
OPERATING STATISTICS
Three Months Ended Six Months Ended
December 31, December 31,
1998 1999 1998 1999
Order data:
Internet orders 93,518 282,309 144,270 419,275
Phone orders 128,183 101,318 185,073 162,344
Total orders 221,701 383,627 329,343 581,619
% Internet mix 42% 74% 44% 72%
Customer data:
Total customers,
beginning of
the period 1,050,788 1,582,887 988,798 1,465,462
Total customers,
end of the
period 1,162,187 1,795,557 1,162,187 1,795,557
Total customers,
added in the
period 111,399 212,670 173,389 330,095
SOURCE FTD.COM
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Related links:
http://www.FTD.COM
CONTACT:
Peter Poli, Chief Financial Officer of
FTD.COM, 630-724-6200; or General Info, Craig Dickson,
312-640-6693, Analyst Inquires, Mark Muehlfelt, 312-640-6767, or
Media Info, Darcy Bretz, 312-640-6756, all of The Financial
Relations Board for FTD.COM
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