EX-99.2 6 a19-11043_1ex99d2.htm EX-99.2

EXHIBIT 99.2

 

FTD COMPANIES, INC.

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION

 

On May 31, 2019, FTD, Inc. (“FTD Inc.”), a wholly-owned subsidiary of FTD Companies, Inc. (the “Company”), completed the sale of the Company’s Interflora business in the U.K. (the “Interflora Sale”) through the sale of all of the issued and outstanding equity interests of its wholly owned subsidiary, FTD UK Holdings Limited, pursuant to the agreement for the sale and purchase of shares in the capital of FTD UK Holdings Limited, dated May 31, 2019, by and between FTD Inc. and Teleflora UK Holdings Ltd. (the “Sale and Purchase Agreement”).  FTD UK Holdings Limited is the parent company of Interflora Holdings Limited, Interflora Investments Limited, Interflora Group Limited and Interflora British Unit, comprising the Company’s Interflora business in the U.K.

 

Pursuant to the terms and subject to the conditions in the Sale and Purchase Agreement, the purchase price for FTD UK Holdings Limited was $59.5 million.

 

The following unaudited pro forma condensed consolidated financial information is based on the historical consolidated financial statements of the Company including certain pro forma adjustments and has been prepared to illustrate the pro forma effect of the Interflora Sale. The unaudited pro forma condensed consolidated statement of operations gives effect to the pro forma adjustments necessary to reflect the Interflora Sale as if it had occurred on January 1, 2018.  The unaudited pro forma condensed consolidated balance sheet gives effect to the pro forma adjustments necessary to reflect the Interflora Sale as if it had occurred on December 31, 2018.  This unaudited financial information may not be predictive of the future results of operations or financial condition of the Company, as the Company’s future results of operations and financial position may differ significantly from the pro forma amounts reflected herein due to a variety of factors.

 

This unaudited pro forma condensed consolidated financial information should be read in conjunction with the consolidated financial statements, notes to the consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our annual report on Form 10-K for the year ended December 31, 2018.

 

 

FTD COMPANIES, INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

December 31, 2018

(in thousands)

 

 

 

Historical

 

Pro-forma
adjustments for
Interflora sale

 

Unaudited Pro-
forma

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

16,227

 

$

(12,038

)(A)

$

4,189

 

Accounts receivable, net

 

24,920

 

(2,027

)(A)

22,893

 

Inventories

 

27,450

 

(2,343

)(A)

25,107

 

Income taxes receivable

 

1,407

 

—

 

1,407

 

Prepaid expenses

 

12,874

 

(1,486

)(A)

11,388

 

Total current assets

 

82,878

 

(17,894

)

64,984

 

Property and equipment, net

 

41,334

 

(3,440

)(A)

37,894

 

Intangible assets, net

 

91,403

 

(31,909

)(A)

59,494

 

Goodwill

 

162,316

 

(75,539

)(A)

86,777

 

Other assets

 

9,049

 

(1,982

)(A)

7,067

 

Total assets

 

$

386,980

 

$

(130,764

)

$

256,216

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

71,240

 

$

(11,335

)(A)

$

59,905

 

Accrued liabilities

 

60,511

 

(17,300

)(A)

43,211

 

Accrued compensation

 

18,641

 

(497

)(A)

18,144

 

Interest payable

 

7,332

 

—

 

7,332

 

Deferred revenue

 

5,146

 

(962

)(A)

4,184

 

Income taxes payable

 

1,152

 

(1,152

)(A)

—

 

Current portion of long-term debt

 

208,076

 

(57,728

)(C)

150,348

 

Total current liabilities

 

372,098

 

(88,974

)

283,124

 

Long-term debt, net of discounts

 

—

 

—

 

—

 

Deferred tax liabilities, net

 

6,959

 

(5,302

)(A)

1,657

 

Other liabilities

 

9,323

 

(292

)(A)

9,031

 

Total liabilities

 

388,380

 

(94,568

)

293,812

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholder’s equity:

 

 

 

 

 

 

 

Preferred stock

 

—

 

—

 

—

 

Common stock

 

3

 

—

 

3

 

Treasury Stock

 

(65,221

)

—

 

(65,221

)

Additional paid-in capital

 

720,092

 

—

 

720,092

 

Retained deficit

 

(608,961

)

(85,027

)(B)

(693,988

)

Accumulated other comprehensive loss

 

(47,313

)

48,831

(B)

1,518

 

Total stockholder’s equity

 

(1,400

)

(36,196

)

(37,596

)

Total liabilities and stockholder’s equity

 

$

386,980

 

$

(130,764

)

$

256,216

 

 

See accompanying notes to the Unaudited Pro-Forma Condensed Consolidated Financial Information

 

 

FTD COMPANIES, INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Year ended December 31, 2018

(in thousands except per share amounts)

 

 

 

Historical

 

Pro-forma
adjustments for
Interflora sale

 

Unaudited Pro-
forma

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

Product

 

$

891,506

 

$

(133,806

)(D)

$

757,700

 

Services

 

122,738

 

(17,340

)(D)

105,398

 

Total revenues

 

1,014,244

 

(151,146

)

863,098

 

Operating Expenses:

 

 

 

 

 

 

 

Cost of revenues-—products

 

643,242

 

(106,686

)(D)

536,556

 

Cost of revenues-—services

 

17,207

 

47

(D)

17,254

 

Sales and marketing

 

249,028

 

(19,618

)(D)

229,410

 

General and administrative

 

100,823

 

(13,547

)(D)

87,276

 

Amortization of intangible assets

 

3,624

 

(83

)(D)

3,541

 

Restructuring and other exit costs

 

18,247

 

—

 

18,247

 

Impairment loss

 

206,704

 

(3,925

)(D)

202,779

 

Total operating expenses

 

1,238,875

 

(143,812

)

1,095,063

 

Operating income/(loss)

 

(224,631

)

7,334

 

(231,965

)

Interest income

 

468

 

1,096

(D)

1,564

 

Interest expense

 

(22,020

)

—

 

(22,020

)

Other income/(expense), net

 

2,640

 

(558

)(D)

2,082

 

Income/(loss) before income taxes

 

(243,543

)

6,796

 

(250,339

)

Provision for/(benefit from) income taxes

 

(18,814

)

2,147

(D)

(20,961

)

Net income (loss)

 

$

(224,729

)

$

4,649

 

$

(229,378

)

 

 

 

 

 

 

 

 

Loss per share:

 

 

 

 

 

 

 

Basic

 

$

(8.03

)

 

 

$

(8.20

)

Diluted

 

$

(8.03

)

 

 

$

(8.20

)

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

 

27,972

 

 

 

27,972

 

Diluted

 

27,972

 

 

 

27,972

 

 

See accompanying notes to the Unaudited Pro-Forma Condensed Consolidated Financial Information

 

 

FTD COMPANIES, INC.

 

NOTES TO UNAUDITED PRO FORMA CONDENSED

 

CONSOLIDATED FINANCIAL INFORMATION

 

Note 1 — Basis of presentation

 

The historical condensed consolidated financial statements have been adjusted in the unaudited pro forma condensed consolidated financial statements to illustrate the pro forma effects that are (1) directly attributable to the Interflora Sale, (2) factually supportable and, (3) with respect to the unaudited pro forma condensed consolidated statement of operations, expected to have a continuing impact on the consolidated results following the Interflora Sale.

 

The unaudited pro forma financial information does not reflect the realization of any anticipated savings from costs that may be reduced or eliminated as a result of possible cost savings initiatives implemented following the completion of the Interflora Sale.

 

Note 2 — Pro forma adjustments

 

The pro forma adjustments are based on our preliminary estimates and assumptions and are subject to change.  The following adjustments have been reflected in the unaudited pro forma condensed financial statements.

 

(A)       – Adjustment reflects the elimination of the assets and liabilities of the Interflora business assuming a transaction date of December 31, 2018.

 

(B)       – Adjustment reflects the elimination of the other comprehensive loss attributed to the Interflora business which is offset by the gain on sale reflected in retained deficit.

 

(C)       – Adjustment represents cash consideration of $59.5 million, net customary purchase price adjustments and closing transaction expenses, applied against the current portion of long-term debt.

 

(D)       – Adjustment reflects the elimination of Interflora’s operations for the year ended December 31, 2018.