-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GYgdFwTtSYspyuzcnj2nE68L8cGJewrvBYToeJc1HAcEN9bbsnPcoAsQXeTGp4HA SWn/JEMjhoS3E135R83Nzw== 0001084869-04-000014.txt : 20040205 0001084869-04-000014.hdr.sgml : 20040205 20040205101155 ACCESSION NUMBER: 0001084869-04-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040120 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040205 FILER: COMPANY DATA: COMPANY CONFORMED NAME: 1 800 FLOWERS COM INC CENTRAL INDEX KEY: 0001084869 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RETAIL STORES, NEC [5990] IRS NUMBER: 113117311 STATE OF INCORPORATION: DE FISCAL YEAR END: 0627 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26841 FILM NUMBER: 04568785 BUSINESS ADDRESS: STREET 1: 1600 STEWART AVE CITY: WESTBURY STATE: NY ZIP: 11590 BUSINESS PHONE: 5162376000 MAIL ADDRESS: STREET 1: 1600 STEWART AVE CITY: WESTBURY STATE: NY ZIP: 11590 8-K 1 eight.txt SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event Reported): January 20, 2004 1-800-FLOWERS.COM, INC. ---------------------------------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) Delaware 0-26841 11-3117311 --------------------------------------------------------------------------- (State or Other Jurisdiction of (Commission File Number) (I.R.S. Employer Identification Incorporation) Number) 1600 Stewart Avenue Westbury, New York 11590 (516) 237-6000 ------------------------------------------------------------------------- (Addresses, including zip code, and telephone numbers, including area code, of principal executive offices) Item 7. Financial Statements and Exhibits. (c) Exhibits 99.1 Press release of 1-800-FLOWERS.COM, Inc., dated January 20, 2004, disclosing financial results for its fiscal 2004 second quarter ended December 28, 2003. Item 9. Regulation FD Disclosure The Press Release attached as Exhibit 99.1 and incorporated by reference herein is being furnished pursuant to Item 12- Results of Operations and Financial Condition, of Form 8-K and is being presented under Item 9 of Form 8-K in accordance with interim guidance issued by the Securities and Exchange Commission in Release Nos. 33-8216 and 34-47583. This information is not deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any registration statement filed under the Securities Act of 1933. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 1-800-FLOWERS.COM, INC. DATE: January 20, 2004 By: /s/ William E. Shea ------------------- William E.Shea Chief Financial Officer Senior Vice-President-Finance and Administration Exhibit Index Exhibit Number Description - --------- ------------------------------------------------------------------- 99.1 Press release of 1-800-FLOWERS.COM, Inc., dated January 20, 2004, disclosing financial results for its fiscal 2004 second quarter ended December 28, 2003. EX-99 2 release.txt Exhibit 99.1-Press Release [1-800-FLOWERS.COM, Inc. LOGO] Investor Contact: Media Contacts: Joseph D. Pititto Ken Young Mike Rosen, Bratskeir & Co. (516) 237-6131 (516) 237-6102 (212) 233-2939 (Ext. 2939) E-mail: invest@1800flowers.com kyoung@1800flowers.com mrosen@bratskeir.com 1-800-FLOWERS.COM(R) Reports Record Revenues of $213 Million for its Fiscal 2004 Second Quarter Driven by Online Revenue Growth of 20 Percent; EPS Grew 33 percent to $0.20 Company acquired approximately 1.2 million new customers; Repeat customers represented 48.6 percent of combined online and telephonic orders Company reaffirms full fiscal-year guidance which calls for total revenue growth in a range of 7-to-10 percent and EPS growth of more than 75 percent Westbury, NY, January 20, 2004 - 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading multi-channel retailer of thoughtful gifts for all occasions, today reported record revenues of $213.2 million in its recent fiscal second quarter ended December 28, 2003. The revenue figure represents total growth of 8 percent compared with revenue of $197.4 million in the prior year period. Online revenues increased 20 percent to $90.9 million compared with $75.8 million in the second quarter of 2003. Telephonic revenues were $113.4 million, essentially flat compared with $114.0 million reported in the prior year period, reflecting the increasing utilization of the Company's online channels. During the quarter, the Company achieved double-digit sales growth in all of its key gift product categories including floral gifts, its expanded gift food offering; unique children's gifts, gift baskets and gift packs, and its growing collection of premium gift brands, including Lenox, Waterford and Godiva. Sales of the Company's high-margin home decor gift items, however, came in below expectations. As a result of this sales mix, the Company's gross profit margin for the quarter was 44.9 percent, compared with 45.6 in the prior year period. The slightly lower gross profit margin was offset by continued improvements in the Company's operating expense ratio, which declined 220 basis points to 38.3 percent. This reduction of operating expenses as a percentage of total sales, combined with the solid sales growth, enabled the Company to achieve fully diluted EPS of $0.20, representing growth of 33 percent compared with $0.15 earned in the prior year period. Jim McCann, CEO of 1-800-FLOWERS.COM, said, "We are pleased with our ability to grow our organic business by a solid 8 percent during the recent holiday quarter. Importantly, this growth was driven by our online channel which increased 20 percent compared with the prior year quarter. Also, we achieved double-digit growth in all of the gift product categories that we have identified as our primary growth areas for the future, including our expanded food-gift offering, gift baskets and gift packs, unique children's gifts and flowers." (more) 1-800-FLOWERS.COM Reports Record Revenue of $213 Million for its Fiscal 2004 Sec01-ond Quarter, pg. 2: McCann said that the Company continues to be focused on growing its bottom-line metrics at a rate significantly higher than its sales growth. "Our emphasis on leveraging our infrastructure to further reduce our operating expense ratio enabled us to grow EPS for the quarter by 33 percent despite a sales mix that produced a slightly lower gross profit margin," noted McCann. "In addition, we continued to strengthen our balance sheet, ending the period with more than $100 million in cash and investments and our inventory was less than $19 million." The combination of the Company's convenient, multi-channel customer access and its expanded gift offerings helped attract 1.2 million new customers during the second quarter, 48 percent of whom (approximately 570,000) came to the Company online. Approximately 2.3 million customers placed orders during the period of which 48.6 percent were repeat customers, up from 46.9 percent in the second quarter of fiscal 2003. This reflects the Company's emphasis on deepening its relationship with existing customers through all of its marketing and selling efforts. During the quarter, customers continued to embrace the Company's expanded offering of gifts resulting in approximately 66 percent of combined online and telephonic revenues coming from non-floral gifts. Company Guidance: The Company reaffirmed its full-year guidance, which calls for organic revenue growth in a range of 7-to-10 percent and EPS growth in excess of 75 percent compared with fiscal 2003. "As we enter the second half of our fiscal year, it is worth noting that, unlike most specialty retail companies, we have two strong quarters ahead of us. Our current fiscal third quarter includes the busy Valentine's holiday, followed by the Spring quarter - our second largest in terms of revenue and earnings - which includes such important gift-giving occasions as Easter, Passover, Administrative Professional's Week, Mother's Day and Father's Day. "Looking forward, we believe we are well positioned to deliver solid, sustainable revenue growth and increasingly strong profitability and thereby enhance shareholder value," said McCann. About 1-800-FLOWERS.COM(R) For more than 25 years, 1-800-FLOWERS.COM has helped millions of customers connect to the people they care about with a broad range of thoughtful gifts, award-winning customer service and its unique technology and fulfillment infrastructure. The Company's product line - including flowers, plants, gourmet foods, candies, gift baskets and other unique gifts - is available to customers around the world via: the Internet (www.1800flowers.com); by calling 1-800-FLOWERS(R) 24 hours a day; or by visiting one of the Company-operated or franchised stores. The Company's collection of thoughtful gifting brands includes home decor and garden merchandise from Plow & Hearth(R) (www.plowandhearth.com), premium popcorn and other food gifts from The Popcorn Factory(R) (www.thepopcornfactory.com), gourmet food products from GreatFood.com(R) (www.greatfood.com), and children's gifts from HearthSong(R) (www.hearthsong.com) and Magic Cabinsm (www.magiccabin.com). The Company's Class A common stock is listed on the NASDAQ National Market (ticker symbol "FLWS"). Special Note Regarding Forward-Looking Statements: A number of statements contained in this press release, other than statements of historical fact, are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those (more) 1-800-FLOWERS.COM Reports Record Revenue of $213 Million for its Fiscal 2004 Second Quarter, pg. 3: expressed or implied in the applicable statements. These risks and uncertainties include, but are not limited to: the Company's ability to achieve solid, cost efficient growth; its ability to maintain and enhance its online shopping web sites to attract customers; its ability to successfully introduce new products and product categories; its ability to maintain and enhance profit margins for its various products; its ability to provide timely fulfillment of customer orders; its ability to cost effectively acquire and retain customers; its ability to continue growing revenues; its ability to compete against existing and new competitors; its ability to manage expenses associated with necessary general and administrative and technology investments; its ability to cost efficiently manage inventories; its ability to achieve enhanced bottom line results; its ability to leverage its operating infrastructure; its ability to achieve its stated results guidance for fiscal 2004, and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company's products. For a more detailed description of these and other risk factors, please refer to the Company's SEC filings including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company expressly disclaims any intent or obligation to update any of the forward looking statements made in this release or in any of its SEC filings except as may be otherwise stated by the Company. (See Attached Tables) 1-800-FLOWERS.COM Reports Record Revenue of $213.2 Million for its Fiscal 2004 Second Quarter, pg. 4: 1-800-FLOWERS.COM, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) December 28, 2003 June 29, 2003 ------------------ ------------- (Unaudited) Assets Cash and equivalents $84,696 $49,079 Short-term investments 7,870 12,139 Receivables, net 15,686 7,767 Inventories 18,429 20,370 Prepaid and other current assets 2,750 2,208 -------------- ------------- Total current assets 129,431 91,563 Property, plant and equipment, net 43,202 46,500 Investments 10,508 19,471 Capitalized investment in leases 215 276 Goodwill 37,692 37,692 Other intangibles, net 2,895 3,211 Other assets 15,318 16,083 -------------- ------------- Total assets $239,261 $214,796 ============== ============= Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued expenses $77,816 $61,663 Current maturities of long-term debt and obligations under capital leases 2,871 3,025 -------------- ------------- Total current liabilities 80,687 64,688 Long-term debt and obligations under capital leases 7,834 9,124 Other liabilities 3,915 3,696 -------------- ------------- Total liabilities 92,436 77,508 Total stockholders' equity 146,825 137,288 -------------- ------------- ------------- Total liabilities and stockholders' equity $239,261 $214,796 ============== =============
(more) 1-800-FLOWERS.COM Reports Record Revenue of $213.2 Million for its Fiscal 2004 Second Quarter, pg. 5: 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Income (In thousands, except for per share data) (Unaudited) Three Months Ended Six Months Ended ------------------------------------- ----------------------------------- December 28, December 29, December 28, December 29, 2003 2002 2003 2002 ----------------- ------------------ ----------------- ----------------- Net revenues: Online $90,878 $75,750 $139,814 $116,550 Telephonic 113,374 113,999 153,745 156,530 Retail/fulfillment 8,930 7,680 14,783 13,574 ------------- ------------- ------------ ------------ Total net revenues 213,182 197,429 308,342 286,654 Cost of revenues 117,550 107,335 173,643 159,882 ------------- ------------- ------------ ------------ Gross profit 95,632 90,094 134,699 126,772 Operating expenses: Marketing and sales 66,762 64,978 95,608 93,931 Technology and development 3,503 3,415 6,934 6,993 General and administrative 7,577 7,462 15,356 14,869 Depreciation and amortization 3,843 4,068 7,760 8,097 ------------- ------------- ------------ ------------ Total operating expenses 81,685 79,923 125,658 123,890 ------------- ------------- ------------ ------------ Operating income 13,947 10,171 9,041 2,882 Other income (expense): Interest income 223 284 415 635 Interest expense (186) (262) (419) (576) Other (14) (106) (213) (148) ------------- ------------- ------------ ------------ Total other income (expense), net 23 (84) (217) (89) ------------- ------------- ------------ ------------ Income before income taxes 13,970 10,087 8,824 2,793 Income taxes (292) - (292) - ------------- ------------- ------------ ------------ Net income 13,678 $10,087 $8,532 $2,793 ============= ============= ============ ============ Net income per common share: Basic $0.21 $0.15 $0.13 $0.04 ============= ============= ============ ============ Diluted $0.20 $0.15 $0.12 $0.04 ============= ============= ============ ============ Weighted average shares used in the calculation of net income per common share: Basic 65,881 65,522 65,828 65,500 ============= ============= ============ ============ Diluted 69,074 67,804 68,811 67,704 ============= ============= ============ ============
(more) 1-800-FLOWERS.COM Reports Record Revenue of $213.2 Million for its Fiscal 2004 Second Quarter, pg. 6: 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended -------------------------------- December 28, December 29, 2003 2002 --------------- -------------- Operating activities: Net income $8,532 $2,793 Reconciliation of net income to net cash provided by operations: Depreciation and amortization 7,760 8,097 Bad debt expense 279 317 Other non-cash items 157 187 Changes in operating items: Receivables (8,198) (6,339) Inventories 1,941 (4,761) Prepaid and other (542) (617) Accounts payable and accrued expenses 16,154 13,315 Other assets 619 648 Other liabilities 219 1,553 --------------- -------------- Net cash provided by operating activities 26,921 15,193 Investing activities: Purchase of investments (23,018) (18,364) Sale of investments 36,250 38,434 Capital expenditures, net of non-cash expenditures (4,296) (3,522) Other 145 132 --------------- -------------- Net cash provided by investing activities 9,081 16,680 Financing activities: Proceeds from employee stock options/stock purchase plan 1,005 333 Repayment of notes payable and bank borrowings (528) (466) Payment of capital lease obligations (862) (1,192) --------------- -------------- Net cash used in financing activities (385) (1,325) --------------- -------------- Net change in cash and equivalents 35,617 30,548 Cash and equivalents: Beginning of period 49,079 40,601 --------------- -------------- End of period $84,696 $71,149 =============== ==============
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