DOWNERS GROVE, Ill., Oct. 28 /PRNewswire/ -- FTD.COM (Nasdaq: EFTD) today
announced financial results for its fiscal first quarter ended September 30,
1999. Total revenues in the quarter were $12.4 million, an increase of 104%
compared to $6.1 million in the quarter ended September 30, 1998. Net loss in
the quarter ended September 30, 1999 was $3.85 million, or $0.09 per share,
compared to a net loss of $1.0 million, or a pro forma net loss per share of
$0.02 in the year-ago quarter. FTD.COM closed its initial public offering
(IPO) shortly after the end of the quarter ended September 30, 1999.
During the quarter ended September 30, 1999, FTD.COM's customers placed
197,992 orders, an increase of 84% from the 107,642 orders our customers
placed in the same period last year. Internet orders increased 170% in the
current quarter to 136,966 or 69% of total orders from 50,752 or 47% of the
total in the quarter ended September 30, 1998. In the quarter ended September
30, 1999, FTD.COM's customer base increased to 1,582,887 from 1,465,642 at
June 30, 1999, an increase of 117,425 customers.
Michael J. Soenen, President and Chief Executive Officer, commented, "We
are very encouraged by our first quarter results. During the quarter, we
enjoyed exceptional growth in online revenue and new customers. We attribute
this growth to our targeted marketing efforts and consumers' overall awareness
of the FTD brand. We believe FTD.COM is being increasingly recognized as the
premier online destination for flowers and specialty gifts. This is evidenced
by our strong financial results, positive customer feedback, and by the
Forrester PowerRankings(TM), which rated FTD.COM as number one in both web
site features and transacting."
Soenen continued, "We expect that the online flower and specialty gift
market will continue its dramatic growth. We plan to pursue this market
opportunity by giving our customers the best products, superior customer
service, and easy-to-use reminder services. We believe this will enable
FTD.COM to fulfill our mission of becoming the leading online company for
helping people enhance their personal and professional relationships."
Earlier this month, FTD.COM launched its groundbreaking "Be A Hero"
advertising campaign, encompassing online, cable, cinema, radio, and print
programs. This campaign is being rolled out in phases and will be fully
implemented by November 1st. Building on the 96% awareness of the FTD brand,
the campaign's creative and media strategies are specifically targeted at
Internet consumers, people who are young, affluent, and looking for a unique
and exciting online shopping experience. This is believed to be the only
advertising campaign in the floral and specialty gift industry exclusively
focused on Internet customers.
In addition, FTD.COM continues to make significant investments in its web
site and technology infrastructure to further enhance the customer shopping
experience. The company intends to release the next version of its web site
in the third quarter of its fiscal year.
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 .
A conference call will be conducted October 28 at 8:30 a.m. Eastern Time
(ET) to review the results of the first 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.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.vcall.com or by dialing 703-925-2435 and providing confirmation
number 2242480.
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.
Selected Financial and Operating Information
Statements of Operations
(In thousands, except per share data)
Three Months Ended
September 30,
1998 1999
(unaudited) (unaudited)
Revenues:
Order revenues
and service fees,
net of discounts $5,574 $10,776
Commissions from FTDI 530 969
Other, principally
from FTDI 1 698
Total revenues 6,105 12,443
Fulfillment and
processing services 4,860 8,960
Gross profit 1,245 3,483
Operating expenses:
Marketing and promotion 1,585 4,128
Technology development 473 1,647
General and administrative 803 1,656
Total operating expenses 2,861 7,431
Loss from operations (1,616) (3,948)
Interest income (expense) (30) 98
Loss before income taxes (1,646) (3,850)
Income taxes 658 --
Net loss $(988) $(3,850)
Basic and diluted
net loss per share
of common stock $(0.02)(a) $(0.09)
Weighted average common
shares used in the
calculation of basic
and diluted net loss
per share 40,920(a) 41,018
(a) Pro forma presentation. Shares used in the calculation of basic and
diluted net loss per share consist of the common stock issued in
conjunction with the incorporation of the company on May 19, 1999
Operating Statistics
Three Months Ended
September 30,
1998 1999
Order data:
Internet orders 50,752 136,966
Phone orders 56,890 61,026
Total orders 107,642 197,992
% Internet Mix 47% 69%
Customer data:
Total customers,
beginning of period 988,798 1,465,462
Total customers,
end of period 1,050,788 1,582,887
Customers added
in period 61,990 117,425
SOURCE FTD.COM, Inc.
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Related links:
http://www.ftd.com
CONTACT:
Peter Poli, Chief Financial Officer of
FTD.COM, 630-724-6200; or Craig Dickson, General Info,
312-640-6693, or Mark Muehlfelt, Analysts, 312-640-6767, or Chris
Dever, Media Info, 312-274-2240, all of The Financial Relations
Board
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