Triple-Digit Increases in Key Operating Benchmarks
Fiscal Third Quarter Highlights:
-- Internet Revenues Up 188%
-- Internet Orders Up 166%
-- Traffic Up 152%
-- Total Revenues Up 114%
Financial Summary (Unaudited)
(In thousands, except per share data)
3 Months Ended % 9 Months Ended %
3/31/00 3/31/99 Change 3/31/00 3/31/99 Change
Total revenues $ 26,550 $ 12,390 114% $62,581 $ 31,183 101%
Gross profit $7,659 $2,601 194% $17,775 $6,664 167%
Marketing &
promotions $ 11,528 $3,097 --- $29,932 $7,797 ---
Net loss $(8,493) $(1,431) --- $(23,562) $(3,532) ---
Basic and
diluted net
loss per
share of
common stock $(0.18) $(0.03) --- $(0.52) $(0.09) ---
"The continuation of FTD.COM's better than anticipated operating results
is accelerating the timeframe in which we believe FTD.COM will be cash flow
positive and profitable. This was another extremely strong quarter for
FTD.COM as we continue to see improvements in our operating and net income
margins. Additionally, FTD.COM continues to be recognized as the category
leader in terms of quality, as evidenced by The Wall Street Journal's ranking
of FTD.COM as "Best Overall" in its online shopping evaluation."
-- Michael J. Soenen, President and Chief Executive Officer
DOWNERS GROVE, Ill., April 27 /PRNewswire/ -- FTD.COM (Nasdaq: EFTD) today
announced financial results for its fiscal third quarter ended March 31, 2000.
Total revenues for the quarter were $26.6 million, an increase of 114%
compared to $12.4 million for the quarter ended March 31, 1999. Net loss for
the quarter ended March 31, 2000 was $8.5 million, or $0.18 per share,
compared to a net loss of $1.4 million, or a pro forma net loss per share of
$0.03, for the same quarter of the prior fiscal year.
Michael J. Soenen, President and Chief Executive Officer of FTD.COM,
commented, "The continuation of FTD.COM's better than anticipated operating
results is accelerating the timeframe in which we believe FTD.COM will be cash
flow positive and profitable."
During the quarter ended March 31, 2000, FTD.COM's customers placed
405,364 orders, an increase of 94% from the 208,845 orders placed during the
same period of the prior fiscal year. Internet orders increased 166% in the
current quarter to 317,747, or 78% of total orders, from 119,588, or 57% of
total orders, for the quarter ended March 31, 1999. Customer accounts totaled
2.1 million at March 31, 2000, an increase of 15% from 1.8 million customers
at December 31, 1999 and a 61% increase in customer accounts from
March 31, 1999.
Mr. Soenen stated, "This was another extremely strong quarter for FTD.COM
as we continue to see improvements in our operating and net income margins.
Additionally, FTD.COM continues to be recognized as the category leader in
terms of quality, as evidenced by The Wall Street Journal's ranking of
FTD.COM as "Best Overall" in its online shopping evaluation."
Other recent highlights include:
-- Internet Revenues Up 188%. Internet revenues in the third quarter were
approximately $20.2 million, an increase of 188% compared to $7.0
million for the quarter ended March 31, 1999.
-- Traffic Up 152%. Traffic on the FTD.COM Web site increased more than
152% in the third quarter of fiscal 2000 compared to the same period of
the prior year.
-- Average Order Value Increases 8%. FTD.COM's average order value has
increased 8% to almost $59 for the third quarter of fiscal 2000
compared to the third quarter of fiscal 1999.
-- Valentine's Day Orders Increase More Than 125%. FTD.COM -- named a
"Red Hot Site" by Nielson/NetRatings for the week leading up to
Valentine's Day -- saw a significant increase in sales this Valentine's
Day season over 1999, with more than a 125% increase in total orders of
flowers and specialty gifts from the same period in 1999.
-- The Wall Street Journal Ranks FTD.COM "Best Overall." FTD.COM's Web
site was ranked "Best Overall" for ordering flowers online by The Wall
Street Journal. In an online shopping experiment by the Catalog
Critic, the FTD(TM) Classic Long-Stemmed Rose Bouquet was described as
"gorgeous," while the Web site was cited as "a breeze to navigate,"
making FTD.COM its choice as "Best Overall."
-- Top Score In Web Sites Analysis. FTD.COM led all floral Web sites in
performance and fulfillment during the Valentine's Day season,
according to a study by Keynote Systems, the largest provider of
Internet performance measurement, diagnostic and consulting services to
companies that operate e-commerce Web sites. FTD.COM was the quickest
to access orders and achieved a 100-percent on-time delivery rating,
the highest rating in the flower category.
-- Successful Victoria's Secret Promotion. FTD.COM executed a successful
Valentine's Day promotion along with victoriassecret.com. Consumers
could purchase flowers bundled with Victoria's Secret electronic gift
certificates and enter to win prizes that included electronic gift
certificates from FTD.COM and Victoria's Secret.
-- Momentum Building With Cendant. With an exclusive relationship with
Cendant Real Estate Franchises, FTD.COM is the only floral and custom
gift basket provider for Cendant's real estate brokers and agents,
which include Century 21, Coldwell Banker and ERA realtors. The
Cendant Real Estate Division sells more than 1.9 million homes
annually.
-- Expands Specialty Gifts. FTD.COM dramatically increased its selection
of specialty gifts through new relationships with a number of
well-known gift companies. FTD.COM has partnered with leading brands
such as Mikasa(R), Spafinders(R) and Gevalia(R) Kaffe, to provide
consumers with an expanding selection of high-quality products, which
includes more than 700 floral arrangements and specialty gifts.
-- Marketing Partnerships With Top Companies. FTD.COM has established a
number of marketing partnerships with various leading companies
including: Netcentives(R), Inc., SkyMall(R), Perksatwork(R), Markets
In Motion(R) and Market Day(R).
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 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 April 27 at 2:00 p.m. Eastern Time
(ET) to review the results of the third 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.
To listen to the call on the telephone, dial 888-792-1069 toll-free or dial
703-871-3019. 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 888-266-2086 toll-free or 703-925-2435 and
providing confirmation number 3715077.
Forward-Looking Statements
This press release contains various "forward-looking statements" regarding
future results of operations, including expectations regarding cash flow and
profitability, 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; FTD.COM's ability to manage or reduce its level of expenses;
actual growth rates for the markets in which FTD.COM competes compared with
forecasted growth rates; 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
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
1999 2000 1999 2000
Revenues:
Order revenues and
service fees,
net of discounts $11,380 $23,870 $28,520 $55,593
Commissions from FTDI 1,010 1,852 2,596 4,535
Other, principally
from FTDI - 828 67 2,453
Total revenues 12,390 26,550 31,183 62,581
Fulfillment and
processing service 9,789 18,891 24,519 44,806
Gross profit 2,601 7,659 6,664 17,775
Operating expenses:
Marketing and promotions 3,097 11,528 7,797 29,932
Technology development 573 2,073 1,442 5,291
General and administrative 1,290 3,026 3,180 7,287
Total operating expenses 4,960 16,627 12,419 42,510
Loss from operations (2,359) (8,968) (5,755) (24,735)
Interest income - 475 - 1,173
Interest expense (26) - (131) -
Loss before income taxes (2,385) (8,493) (5,886) (23,562)
Income tax benefit 954 - 2,354 -
Net loss $(1,431) $(8,493) $(3,532) $(23,562)
Basic and diluted net loss
per share of common stock $(0.03)(a) $(0.18) $(0.09)(a) $(0.52)
Weighted average common
shares used in the calculation
of basic and diluted
net loss per share 40,920(a) 47,300 40,920(a) 45,184
(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 FTDI in connection with the formation of the Company on
May 19, 1999
FTD.COM INC.
BALANCE SHEETS
(In thousands)
ASSETS
June 30, March 31,
1999 2000
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $8,205 $26,540
Accounts receivable 233 286
Prepaid expenses 215 1,176
Distribution agreements 1,707 913
Deferred offering expenses 1,062 -
Total current assets 11,422 28,915
OTHER ASSETS:
Software development costs - 3,187
Other long term assets - 294
Total other assets - 3,481
Total assets $11,422 $32,396
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $2,021 $8,794
Payable to FTDI 311 2,328
Unearned revenue 129 403
Accrued offering expenses 638 -
Other accrued liabilities 154 1,230
Total current liabilities 3,253 12,755
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 March 31, 2000 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 March 31, 2000 - -
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 March 31, 2000 - 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 March 31, 2000 409 409
Additional paid-in capital - 44,119
Deferred compensation - (149)
Retained deficit (1,314) (24,802)
Total stockholders' equity (deficit) (905) 19,641
Total liabilities and stockholders'
equity (deficit) $11,422 $32,396
FTD.COM INC,
OPERATING STATISTICS
Three Months Ended Nine Months Ended
March 31, March 31,
1999 2000 1999 2000
Order data:
Internet orders 119,588 317,747 263,858 737,022
Phone orders 89,257 87,617 274,330 249,961
Total orders 208,845 405,364 538,188 986,983
% Internet mix 57% 78% 49% 75%
Customer data:
Total customers,
beginning of
the period 1,162,187 1,795,557 988,798 1,465,462
Total customers,
end of the period 1,285,111 2,066,849 1,285,111 2,066,849
Total customers,
added in
the period 122,924 271,292 296,313 601,387
SOURCE FTD.COM
 back to top
Related links:
http://www.FTD.COM
CONTACT:
Lisa A. Witek of FTD.COM, 630-719-6174; Mark
Muehlfelt, Analyst Contact, 312-640-6767, Jeff Wilhoit, General
Inquiries, 312-640-6757, or Tim Grace, Media Inquiries,
312-266-7800, all of The Financial Relations Board
|
