(Mark One) | |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 32-0255852 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
3113 Woodcreek Drive, Downers Grove, Illinois (Address of principal executive offices) | 60515 (Zip Code) |
Large accelerated filer | o | Accelerated filer | x | |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | o | |
Emerging growth company | o |
Page | ||||
June 30, 2018 | December 31, 2017 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 20,436 | $ | 29,496 | ||||
Accounts receivable, net of allowances of $6,242 and $4,957 as of June 30, 2018 and December 31, 2017, respectively | 21,319 | 26,028 | ||||||
Inventories | 24,816 | 25,356 | ||||||
Prepaid expenses and other current assets | 11,705 | 14,911 | ||||||
Total current assets | 78,276 | 95,791 | ||||||
Property and equipment, net | 44,779 | 33,880 | ||||||
Intangible assets, net | 104,958 | 181,965 | ||||||
Goodwill | 211,978 | 277,041 | ||||||
Other assets | 10,311 | 21,648 | ||||||
Total assets | $ | 450,302 | $ | 610,325 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 69,943 | $ | 70,480 | ||||
Accrued liabilities | 61,430 | 77,058 | ||||||
Accrued compensation | 9,203 | 14,261 | ||||||
Deferred revenue | 6,377 | 5,280 | ||||||
Income taxes payable | 3,846 | 872 | ||||||
Current portion of long-term debt | 189,690 | 189,666 | ||||||
Total current liabilities | 340,489 | 357,617 | ||||||
Deferred tax liabilities, net | 9,311 | 30,854 | ||||||
Other liabilities | 7,538 | 7,330 | ||||||
Total liabilities | 357,338 | 395,801 | ||||||
Commitments and contingencies (Note 14) | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, 5,000,000 shares, par value $0.0001, authorized; no shares issued and outstanding | — | — | ||||||
Common stock, 60,000,000 shares, par value $0.0001, authorized; 30,364,811 and 30,073,087 shares issued as of June 30, 2018 and December 31, 2017, respectively | 3 | 3 | ||||||
Treasury stock, 2,430,897 shares as of June 30, 2018 and December 31, 2017 | (65,221 | ) | (65,221 | ) | ||||
Additional paid-in capital | 710,750 | 705,388 | ||||||
Accumulated deficit | (508,913 | ) | (384,232 | ) | ||||
Accumulated other comprehensive loss | (43,655 | ) | (41,414 | ) | ||||
Total stockholders’ equity | 92,964 | 214,524 | ||||||
Total liabilities and stockholders’ equity | $ | 450,302 | $ | 610,325 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues: | ||||||||||||||||
Products | $ | 268,006 | $ | 293,228 | $ | 551,009 | $ | 574,192 | ||||||||
Services | 31,915 | 34,918 | 67,082 | 70,447 | ||||||||||||
Total revenues | 299,921 | 328,146 | 618,091 | 644,639 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of revenues—products | 189,946 | 198,682 | 396,217 | 390,809 | ||||||||||||
Cost of revenues—services | 4,536 | 4,497 | 9,012 | 8,744 | ||||||||||||
Sales and marketing | 71,067 | 76,224 | 153,349 | 145,120 | ||||||||||||
General and administrative | 23,133 | 27,039 | 48,834 | 55,794 | ||||||||||||
Amortization of intangible assets | 1,495 | 3,819 | 2,997 | 7,639 | ||||||||||||
Restructuring and other exit costs | — | 136 | — | 944 | ||||||||||||
Impairment of goodwill, intangible assets, and other long-lived assets | 136,861 | — | 139,216 | — | ||||||||||||
Total operating expenses | 427,038 | 310,397 | 749,625 | 609,050 | ||||||||||||
Operating income/(loss) | (127,117 | ) | 17,749 | (131,534 | ) | 35,589 | ||||||||||
Interest income | 120 | 122 | 241 | 237 | ||||||||||||
Interest expense | (4,509 | ) | (2,562 | ) | (7,116 | ) | (4,950 | ) | ||||||||
Other income, net | 160 | 223 | 136 | 198 | ||||||||||||
Income/(loss) before income taxes | (131,346 | ) | 15,532 | (138,273 | ) | 31,074 | ||||||||||
Provision for/(benefit from) income taxes | (13,261 | ) | 5,816 | (13,592 | ) | 12,335 | ||||||||||
Net income/(loss) | $ | (118,085 | ) | $ | 9,716 | $ | (124,681 | ) | $ | 18,739 | ||||||
Earnings/(loss) per common share: | ||||||||||||||||
Basic earnings/(loss) per share | $ | (4.25 | ) | $ | 0.35 | $ | (4.49 | ) | $ | 0.67 | ||||||
Diluted earnings/(loss) per share | $ | (4.25 | ) | $ | 0.35 | $ | (4.49 | ) | $ | 0.67 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income/(loss) | $ | (118,085 | ) | $ | 9,716 | $ | (124,681 | ) | $ | 18,739 | ||||||
Other comprehensive income/(loss): | ||||||||||||||||
Foreign currency translation | (6,396 | ) | 4,124 | (2,461 | ) | 5,846 | ||||||||||
Cash flow hedges: | ||||||||||||||||
Changes in net gains on derivatives, net of tax of $23 and $53 for the three months ended June 30, 2018 and 2017, respectively, and $59 and $107 for the six months ended June 30, 2018 and 2017, respectively. | 116 | 87 | 220 | 172 | ||||||||||||
Other comprehensive income/(loss) | (6,280 | ) | 4,211 | (2,241 | ) | 6,018 | ||||||||||
Total comprehensive income/(loss) | $ | (124,365 | ) | $ | 13,927 | $ | (126,922 | ) | $ | 24,757 |
Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Balance as of December 31, 2017 | 30,073 | $ | 3 | (2,431 | ) | $ | (65,221 | ) | $ | 705,388 | $ | (41,414 | ) | $ | (384,232 | ) | $ | 214,524 | ||||||||||||
Net loss | — | — | — | — | — | — | (124,681 | ) | (124,681 | ) | ||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (2,241 | ) | — | (2,241 | ) | ||||||||||||||||||||
Stock-based compensation | — | — | — | — | 5,410 | — | — | 5,410 | ||||||||||||||||||||||
Vesting of restricted stock units and related repurchases of common stock | 187 | — | — | — | (460 | ) | — | — | (460 | ) | ||||||||||||||||||||
Issuance of common stock through employee stock purchase plan | 105 | — | — | — | 412 | — | — | 412 | ||||||||||||||||||||||
Balance as of June 30, 2018 | 30,365 | $ | 3 | (2,431 | ) | $ | (65,221 | ) | $ | 710,750 | $ | (43,655 | ) | $ | (508,913 | ) | $ | 92,964 |
Six Months Ended June 30, | ||||||||
2018 | 2017 | |||||||
Cash flows from operating activities: | ||||||||
Net income/(loss) | $ | (124,681 | ) | $ | 18,739 | |||
Adjustments to reconcile net income/(loss) to net cash provided by/(used for) operating activities: | ||||||||
Depreciation and amortization | 8,220 | 18,583 | ||||||
Impairment of goodwill, intangible assets, and other long-lived assets | 139,216 | — | ||||||
Stock-based compensation | 5,410 | 5,870 | ||||||
Provision for doubtful accounts receivable | 1,067 | 779 | ||||||
Amortization of deferred financing fees | 1,058 | 680 | ||||||
Deferred taxes, net | (20,432 | ) | 1,758 | |||||
Other, net | 92 | (69 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | 3,585 | 3,887 | ||||||
Inventories | 529 | 170 | ||||||
Prepaid expenses and other assets | 3,492 | 5,049 | ||||||
Accounts payable and accrued liabilities | (23,087 | ) | (36,060 | ) | ||||
Deferred revenue | 1,144 | 1,154 | ||||||
Income taxes receivable or payable | 2,514 | 66 | ||||||
Other liabilities | 287 | (997 | ) | |||||
Net cash provided by/(used for) operating activities | (1,586 | ) | 19,609 | |||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (16,280 | ) | (6,370 | ) | ||||
Proceeds from life insurance | 10,003 | — | ||||||
Net cash used for investing activities | (6,277 | ) | (6,370 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from revolving lines of credit | 185,000 | 70,000 | ||||||
Payments on term debt and revolving lines of credit | (182,000 | ) | (85,000 | ) | ||||
Purchases from employee stock plan | 412 | 1,042 | ||||||
Payments for debt financing fees | (4,034 | ) | — | |||||
Repurchases of common stock withheld for taxes | (460 | ) | (1,969 | ) | ||||
Net cash used for financing activities | (1,082 | ) | (15,927 | ) | ||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (115 | ) | 1,042 | |||||
Change in cash and cash equivalents | (9,060 | ) | (1,646 | ) | ||||
Cash and cash equivalents, beginning of period | 29,496 | 81,002 | ||||||
Cash and cash equivalents, end of period | $ | 20,436 | $ | 79,356 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Products revenues: | ||||||||||||||||
U.S. Consumer | $ | 233,082 | $ | 259,804 | $ | 456,443 | $ | 488,476 | ||||||||
Florist | 11,703 | 12,813 | 26,474 | 28,982 | ||||||||||||
International | 27,319 | 25,446 | 76,411 | 65,887 | ||||||||||||
Segment products revenues | 272,104 | 298,063 | 559,328 | 583,345 | ||||||||||||
Services revenues: | ||||||||||||||||
Florist | 28,213 | 31,277 | 57,658 | 61,614 | ||||||||||||
International | 3,795 | 3,755 | 9,618 | 9,051 | ||||||||||||
Segment services revenues | 32,008 | 35,032 | 67,276 | 70,665 | ||||||||||||
Intersegment eliminations | (4,191 | ) | (4,949 | ) | (8,513 | ) | (9,371 | ) | ||||||||
Consolidated revenues | $ | 299,921 | $ | 328,146 | $ | 618,091 | $ | 644,639 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Intersegment revenues: | ||||||||||||||||
U.S. Consumer | $ | (4,098 | ) | $ | (4,835 | ) | $ | (8,319 | ) | $ | (9,153 | ) | ||||
Florist | (93 | ) | (114 | ) | (194 | ) | (218 | ) | ||||||||
Total intersegment revenues | $ | (4,191 | ) | $ | (4,949 | ) | $ | (8,513 | ) | $ | (9,371 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
U.S. Consumer segment revenues: | ||||||||||||||||
FTD.com | $ | 65,881 | $ | 80,113 | $ | 137,599 | $ | 152,917 | ||||||||
ProFlowers | 96,963 | 106,515 | 176,786 | 197,226 | ||||||||||||
Gourmet Foods | 45,536 | 49,205 | 96,617 | 101,198 | ||||||||||||
Personal Creations | 24,702 | 23,971 | 45,441 | 37,135 | ||||||||||||
Total U.S. Consumer segment revenues | $ | 233,082 | $ | 259,804 | $ | 456,443 | $ | 488,476 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
U.S. | $ | 268,807 | $ | 298,945 | $ | 532,062 | $ | 569,701 | ||||||||
U.K. | 31,114 | 29,201 | 86,029 | 74,938 | ||||||||||||
Consolidated revenues | $ | 299,921 | $ | 328,146 | $ | 618,091 | $ | 644,639 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Segment operating income/(loss)(a) | ||||||||||||||||
U.S. Consumer | $ | 6,474 | $ | 21,120 | $ | (1,761 | ) | $ | 40,227 | |||||||
Florist | 10,849 | 12,248 | 23,115 | 26,202 | ||||||||||||
International | 2,710 | 3,066 | 9,765 | 8,598 | ||||||||||||
Total segment operating income | 20,033 | 36,434 | 31,119 | 75,027 | ||||||||||||
Unallocated expenses(b) | (6,171 | ) | (9,400 | ) | (15,217 | ) | (20,855 | ) | ||||||||
Impairment of goodwill, intangible assets, and other long-lived assets | (136,861 | ) | — | (139,216 | ) | — | ||||||||||
Depreciation expense and amortization of intangible assets | (4,118 | ) | (9,285 | ) | (8,220 | ) | (18,583 | ) | ||||||||
Operating income/(loss) | (127,117 | ) | 17,749 | (131,534 | ) | 35,589 | ||||||||||
Interest expense, net | (4,389 | ) | (2,440 | ) | (6,875 | ) | (4,713 | ) | ||||||||
Other income, net | 160 | 223 | 136 | 198 | ||||||||||||
Income/(loss) before income taxes | $ | (131,346 | ) | $ | 15,532 | $ | (138,273 | ) | $ | 31,074 |
(a) | Segment operating income/(loss) is operating income/(loss) excluding depreciation, amortization, impairment of goodwill, intangible assets, and other long-lived assets, litigation and dispute settlement charges and gains, transaction-related costs, and restructuring and other exit costs. In addition, stock-based and incentive compensation and general corporate expenses are not allocated to the segments. Segment operating income is prior to intersegment eliminations and excludes other income/(expense), net. |
(b) | Unallocated expenses include various corporate costs, such as executive management, corporate finance, and legal costs. In addition, unallocated expenses include stock-based and incentive compensation, restructuring and other exit costs, transaction-related costs, and litigation and dispute settlement charges and gains. |
June 30, 2018 | December 31, 2017 | |||||||
Current | $ | 9,589 | $ | 10,571 | ||||
Past due: | ||||||||
1 - 150 days past due | 229 | 167 | ||||||
151 - 364 days past due | 168 | 213 | ||||||
365 - 730 days past due | 234 | 184 | ||||||
731 or more days past due | 380 | 357 | ||||||
Total | $ | 10,600 | $ | 11,492 |
Six Months Ended June 30, | ||||||||
2018 | 2017 | |||||||
Allowance for credit losses: | ||||||||
Balance as of January 1 | $ | 912 | $ | 846 | ||||
Provision | 178 | 184 | ||||||
Write-offs charged against allowance | (102 | ) | (249 | ) | ||||
Balance at June 30 | $ | 988 | $ | 781 | ||||
Ending balance collectively evaluated for impairment | $ | 944 | $ | 745 | ||||
Ending balance individually evaluated for impairment | $ | 44 | $ | 36 | ||||
Recorded investments in financing receivables: | ||||||||
Balance collectively evaluated for impairment | $ | 1,093 | $ | 856 | ||||
Balance individually evaluated for impairment | $ | 9,507 | $ | 11,044 |
U.S. Consumer | Florist | International | Total | |||||||||||||
Goodwill as of December 31, 2017 | $ | 106,356 | $ | 90,651 | $ | 80,034 | $ | 277,041 | ||||||||
Purchase accounting adjustment - Bloom That acquisition | (792 | ) | — | — | (792 | ) | ||||||||||
Foreign currency translation | — | — | (1,812 | ) | (1,812 | ) | ||||||||||
Impairment of Goodwill | (62,459 | ) | — | — | (62,459 | ) | ||||||||||
Goodwill as of June 30, 2018 | $ | 43,105 | $ | 90,651 | $ | 78,222 | $ | 211,978 |
June 30, 2018 | December 31, 2017 | |||||||||||||||||||||||
Gross Value (a) | Accumulated Amortization | Net | Gross Value (a) | Accumulated Amortization | Net | |||||||||||||||||||
Complete technology | $ | 60,584 | $ | (60,584 | ) | $ | — | $ | 61,274 | $ | (60,653 | ) | $ | 621 | ||||||||||
Customer contracts and relationships | 193,298 | (193,298 | ) | — | 193,775 | (193,667 | ) | 108 | ||||||||||||||||
Trademarks and trade names: | ||||||||||||||||||||||||
Finite-lived | 41,466 | (27,772 | ) | 13,694 | 93,593 | (24,875 | ) | 68,718 | ||||||||||||||||
Indefinite-lived (b) | 91,264 | — | 91,264 | 112,518 | — | 112,518 | ||||||||||||||||||
Total | $ | 386,612 | $ | (281,654 | ) | $ | 104,958 | $ | 461,160 | $ | (279,195 | ) | $ | 181,965 |
(a) | Gross value has been reduced by the impairments recorded as follows (in thousands): |
Three Months Ended June 30, 2018 | Year Ended December 31, 2017 | |||||||
Complete technology | $ | 561 | $ | 16,335 | ||||
Customer contracts and relationships | 90 | — | ||||||
Trademarks and trade names: | ||||||||
Finite-lived | 52,108 | 27,000 | ||||||
Indefinite-lived (b) | 20,400 | 38,300 |
(b) | As indefinite-lived assets are not amortized, the indefinite-lived trademarks and trade names have no associated amortization expense or accumulated amortization. |
For the Year Ended | Future Amortization Expense | ||
2018 (remainder of the year) | $ | 628 | |
2019 | 1,256 | ||
2020 | 1,248 | ||
2021 | 1,244 | ||
2022 | 1,188 | ||
Thereafter | 8,130 | ||
Total | $ | 13,694 |
June 30, 2018 | December 31, 2017 | |||||||
Land and improvements | $ | 1,578 | $ | 1,583 | ||||
Buildings and improvements | 17,265 | 16,375 | ||||||
Leasehold improvements | 10,976 | 10,883 | ||||||
Equipment | 13,590 | 13,122 | ||||||
Computer equipment | 25,736 | 25,208 | ||||||
Computer software | 72,589 | 58,991 | ||||||
Furniture and fixtures | 3,269 | 3,215 | ||||||
Property and equipment, gross (a) | 145,003 | 129,377 | ||||||
Accumulated depreciation | (100,224 | ) | (95,497 | ) | ||||
Property and equipment, net | $ | 44,779 | $ | 33,880 |
(a) | Impairment charges of $3.6 million recorded during the six months ended June 30, 2018 and $22.0 million recorded during the year ended December 31, 2017 are reflected as reductions in the gross balances as of June 30, 2018. |
December 31, 2017 | Draw Down of Debt | Repayments of Debt | June 30, 2018 | |||||||||||||
Credit Agreement: | ||||||||||||||||
Revolving Credit Facility | $ | 52,000 | $ | 185,000 | $ | (172,000 | ) | $ | 65,000 | |||||||
Term Loan | 140,000 | — | (10,000 | ) | 130,000 | |||||||||||
Total Principal Outstanding | 192,000 | $ | 185,000 | $ | (182,000 | ) | 195,000 | |||||||||
Deferred Financing Fees | (2,334 | ) | (5,310 | ) | ||||||||||||
Total Debt, Net of Deferred Financing Fees | $ | 189,666 | $ | 189,690 |
Estimated Fair Value of Derivative Instruments | Notional Value of Derivative Instruments | |||||||||||||||||
Balance Sheet Location | June 30, 2018 | December 31, 2017 | June 30, 2018 | December 31, 2017 | ||||||||||||||
Derivative Assets: | ||||||||||||||||||
Interest rate caps | Other assets | $ | — | $ | — | $ | — | $ | 130,000 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments: | ||||||||||||||||
Interest rate caps | $ | — | $ | — | $ | — | $ | (1 | ) |
June 30, 2018 | December 31, 2017 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash equivalents | $ | 3,584 | $ | 3,584 | $ | — | $ | 2,705 | $ | 2,705 | $ | — | ||||||||||||
Total | $ | 3,584 | $ | 3,584 | $ | — | $ | 2,705 | $ | 2,705 | $ | — | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Non-qualified deferred compensation plan | $ | 927 | $ | — | $ | 927 | $ | 1,228 | $ | — | $ | 1,228 | ||||||||||||
Total | $ | 927 | $ | — | $ | 927 | $ | 1,228 | $ | — | $ | 1,228 |
June 30, 2018 | December 31, 2017 | |||||||||||||||
Level 2 | Level 2 | |||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||
Debt outstanding | $ | 195,000 | $ | 195,000 | $ | 192,000 | $ | 192,000 |
Risk-free interest rate | 2.5% |
Expected term (in years) | 6.21 |
Dividend yield | 0.0% |
Expected volatility | 37.7% |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Cost of revenues | $ | 48 | $ | 63 | $ | 105 | $ | 134 | ||||||||
Sales and marketing | 933 | 1,615 | 1,865 | 2,330 | ||||||||||||
General and administrative | 1,623 | 1,851 | 3,440 | 3,406 | ||||||||||||
Total stock-based compensation expense | $ | 2,604 | $ | 3,529 | $ | 5,410 | $ | 5,870 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Numerator: | ||||||||||||||||
Net income/(loss) | $ | (118,085 | ) | $ | 9,716 | $ | (124,681 | ) | $ | 18,739 | ||||||
Income allocated to participating securities | — | (228 | ) | — | (434 | ) | ||||||||||
Net income/(loss) attributable to common stockholders | $ | (118,085 | ) | $ | 9,488 | $ | (124,681 | ) | $ | 18,305 | ||||||
Denominator: | ||||||||||||||||
Basic average common shares outstanding | 27,785 | 27,452 | 27,749 | 27,415 | ||||||||||||
Add: Dilutive effect of securities | — | — | — | 34 | ||||||||||||
Diluted average common shares outstanding | 27,785 | 27,452 | 27,749 | 27,449 | ||||||||||||
Basic earnings/(loss) per common share | $ | (4.25 | ) | $ | 0.35 | $ | (4.49 | ) | $ | 0.67 | ||||||
Diluted earnings/(loss) per common share | $ | (4.25 | ) | $ | 0.35 | $ | (4.49 | ) | $ | 0.67 |
Employee Termination Costs | Facility Closure Costs | Total | ||||||||||
Accrued as of December 31, 2017 | $ | 184 | $ | 193 | $ | 377 | ||||||
Charges | — | — | — | |||||||||
Cash paid | (172 | ) | (168 | ) | (340 | ) | ||||||
Other – non-cash | (12 | ) | — | (12 | ) | |||||||
Accrued as of June 30, 2018 | $ | — | $ | 25 | $ | 25 |
Six Months Ended June 30, | ||||||||
2018 | 2017 | |||||||
Cash paid for interest | $ | 5,733 | $ | 4,074 | ||||
Cash paid for income taxes, net | 3,781 | 10,517 |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | $ | % | ||||||||||||||||||||||
(in thousands, except for percentages, average order values, average revenues per member, and average currency exchange rates) | |||||||||||||||||||||||||||||
Consolidated: | |||||||||||||||||||||||||||||
Consolidated revenues | $ | 299,921 | $ | 328,146 | $ | (28,225 | ) | (9 | )% | $ | 618,091 | $ | 644,639 | $ | (26,548 | ) | (4 | )% | |||||||||||
U.S. Consumer: | |||||||||||||||||||||||||||||
Segment revenues(a) | $ | 233,082 | $ | 259,804 | $ | (26,722 | ) | (10 | )% | $ | 456,443 | $ | 488,476 | $ | (32,033 | ) | (7 | )% | |||||||||||
Segment operating income/(loss) | $ | 6,474 | $ | 21,120 | $ | (14,646 | ) | (69 | )% | $ | (1,761 | ) | $ | 40,227 | $ | (41,988 | ) | (104 | )% | ||||||||||
Consumer orders | 4,214 | 4,654 | (440 | ) | (9 | )% | 8,092 | 8,501 | (409 | ) | (5 | )% | |||||||||||||||||
Average order value | $ | 53.83 | $ | 54.39 | $ | (0.56 | ) | (1 | )% | $ | 54.93 | $ | 55.97 | $ | (1.04 | ) | (2 | )% | |||||||||||
Florist: | |||||||||||||||||||||||||||||
Segment revenues(a) | $ | 39,916 | $ | 44,090 | $ | (4,174 | ) | (9 | )% | $ | 84,132 | $ | 90,596 | $ | (6,464 | ) | (7 | )% | |||||||||||
Segment operating income | $ | 10,849 | $ | 12,248 | $ | (1,399 | ) | (11 | )% | $ | 23,115 | $ | 26,202 | $ | (3,087 | ) | (12 | )% | |||||||||||
Average revenues per member | $ | 3,873 | $ | 3,981 | $ | (108 | ) | (3 | )% | $ | 8,055 | $ | 8,122 | $ | (67 | ) | (1 | )% | |||||||||||
International: | |||||||||||||||||||||||||||||
In USD: | |||||||||||||||||||||||||||||
Segment revenues | $ | 31,114 | $ | 29,201 | $ | 1,913 | 7 | % | $ | 86,029 | $ | 74,938 | $ | 11,091 | 15 | % | |||||||||||||
Segment operating income | $ | 2,710 | $ | 3,066 | $ | (356 | ) | (12 | )% | $ | 9,765 | $ | 8,598 | $ | 1,167 | 14 | % | ||||||||||||
Consumer orders | 550 | 532 | 18 | 3 | % | 1,477 | 1,374 | 103 | 7 | % | |||||||||||||||||||
Average order value | $ | 45.89 | $ | 45.57 | $ | 0.32 | 1 | % | $ | 47.45 | $ | 44.91 | $ | 2.54 | 6 | % | |||||||||||||
In GBP: | |||||||||||||||||||||||||||||
Segment revenues | £ | 22,880 | £ | 22,798 | £ | 82 | — | % | £ | 62,264 | £ | 59,679 | £ | 2,585 | 4 | % | |||||||||||||
Average order value | £ | 33.77 | £ | 35.61 | £ | (1.84 | ) | (5 | )% | £ | 34.36 | £ | 35.79 | £ | (1.43 | ) | (4 | )% | |||||||||||
Average currency exchange rate: GBP to USD | 1.36 | 1.28 | 1.38 | 1.26 |
(a) | Segment revenues are prior to intersegment eliminations. See Note 2—“Segment Information” of the Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q for a reconciliation of segment revenues to consolidated revenues. |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | $ | % | |||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||||||
Revenues | $ | 299,921 | $ | 328,146 | $ | (28,225 | ) | (9 | )% | $ | 618,091 | $ | 644,639 | $ | (26,548 | ) | (4 | )% | ||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||
Cost of revenues | 194,482 | 203,179 | (8,697 | ) | (4 | )% | 405,229 | 399,553 | 5,676 | 1 | % | |||||||||||||||||||
Sales and marketing | 71,067 | 76,224 | (5,157 | ) | (7 | )% | 153,349 | 145,120 | 8,229 | 6 | % | |||||||||||||||||||
General and administrative | 23,133 | 27,039 | (3,906 | ) | (14 | )% | 48,834 | 55,794 | (6,960 | ) | (12 | )% | ||||||||||||||||||
Amortization of intangible assets | 1,495 | 3,819 | (2,324 | ) | (61 | )% | 2,997 | 7,639 | (4,642 | ) | (61 | )% | ||||||||||||||||||
Restructuring and other exit costs | — | 136 | (136 | ) | (100 | )% | — | 944 | (944 | ) | (100 | )% | ||||||||||||||||||
Impairment of goodwill, intangible assets, and other long-lived assets | 136,861 | — | 136,861 | NM | 139,216 | — | 139,216 | NM | ||||||||||||||||||||||
Total operating expenses | 427,038 | 310,397 | 116,641 | 38 | % | 749,625 | 609,050 | 140,575 | 23 | % | ||||||||||||||||||||
Operating income/(loss) | (127,117 | ) | 17,749 | (144,866 | ) | NM | (131,534 | ) | 35,589 | (167,123 | ) | NM | ||||||||||||||||||
Interest expense, net | (4,389 | ) | (2,440 | ) | (1,949 | ) | 80 | % | (6,875 | ) | (4,713 | ) | (2,162 | ) | 46 | % | ||||||||||||||
Other income, net | 160 | 223 | (63 | ) | (28 | )% | 136 | 198 | (62 | ) | (31 | )% | ||||||||||||||||||
Income/(loss) before income taxes | (131,346 | ) | 15,532 | (146,878 | ) | NM | (138,273 | ) | 31,074 | (169,347 | ) | NM | ||||||||||||||||||
Provision for/(benefit from) income taxes | (13,261 | ) | 5,816 | (19,077 | ) | NM | (13,592 | ) | 12,335 | (25,927 | ) | NM | ||||||||||||||||||
Net income/(loss) | $ | (118,085 | ) | $ | 9,716 | $ | (127,801 | ) | NM | $ | (124,681 | ) | $ | 18,739 | $ | (143,420 | ) | NM |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | $ | % | |||||||||||||||||||||||
(in thousands, except percentages and average order values) | ||||||||||||||||||||||||||||||
Segment revenues | $ | 233,082 | $ | 259,804 | $ | (26,722 | ) | (10 | )% | $ | 456,443 | $ | 488,476 | $ | (32,033 | ) | (7 | )% | ||||||||||||
Segment operating income/(loss) | $ | 6,474 | $ | 21,120 | $ | (14,646 | ) | (69 | )% | $ | (1,761 | ) | $ | 40,227 | $ | (41,988 | ) | (104 | )% | |||||||||||
Key metrics and other financial data: | ||||||||||||||||||||||||||||||
Consumer orders | 4,214 | 4,654 | (440 | ) | (9 | )% | 8,092 | 8,501 | (409 | ) | (5 | )% | ||||||||||||||||||
Average order value | $ | 53.83 | $ | 54.39 | $ | (0.56 | ) | (1 | )% | $ | 54.93 | $ | 55.97 | $ | (1.04 | ) | (2 | )% | ||||||||||||
Segment operating margin | 3 | % | 8 | % | — | % | 8 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | $ | % | |||||||||||||||||||||||
(in thousands, except percentages and average revenues per member) | ||||||||||||||||||||||||||||||
Segment revenues | $ | 39,916 | $ | 44,090 | $ | (4,174 | ) | (9 | )% | $ | 84,132 | $ | 90,596 | $ | (6,464 | ) | (7 | )% | ||||||||||||
Segment operating income | $ | 10,849 | $ | 12,248 | $ | (1,399 | ) | (11 | )% | $ | 23,115 | $ | 26,202 | $ | (3,087 | ) | (12 | )% | ||||||||||||
Key metrics and other financial data: | ||||||||||||||||||||||||||||||
Average revenues per member | $ | 3,873 | $ | 3,981 | $ | (108 | ) | (3 | )% | $ | 8,055 | $ | 8,122 | $ | (67 | ) | (1 | )% | ||||||||||||
Segment operating margin | 27 | % | 28 | % | 27 | % | 29 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | $ | % | ||||||||||||||||||||||
(in thousands, except percentages, average order values, and average currency exchange rates) | |||||||||||||||||||||||||||||
In USD: | |||||||||||||||||||||||||||||
Segment revenues | $ | 31,114 | $ | 29,201 | $ | 1,913 | 7 | % | $ | 86,029 | $ | 74,938 | $ | 11,091 | 15 | % | |||||||||||||
Impact of foreign currency | (1,807 | ) | — | (1,807 | ) | (7,877 | ) | — | (7,877 | ) | |||||||||||||||||||
Segment revenues (in constant currency)(a) | $ | 29,307 | $ | 29,201 | $ | 106 | — | % | $ | 78,152 | $ | 74,938 | $ | 3,214 | 4 | % | |||||||||||||
Segment operating income | $ | 2,710 | $ | 3,066 | $ | (356 | ) | (12 | )% | $ | 9,765 | $ | 8,598 | $ | 1,167 | 14 | % | ||||||||||||
Impact of foreign currency | (157 | ) | — | (157 | ) | (943 | ) | — | (943 | ) | |||||||||||||||||||
Segment operating income (in constant currency)(a) | $ | 2,553 | $ | 3,066 | $ | (513 | ) | (17 | )% | $ | 8,822 | $ | 8,598 | $ | 224 | 3 | % | ||||||||||||
Key metrics and other financial data: | |||||||||||||||||||||||||||||
Consumer orders | 550 | 532 | 18 | 3 | % | 1,477 | 1,374 | 103 | 7 | % | |||||||||||||||||||
Average order value | $ | 45.89 | $ | 45.57 | $ | 0.32 | 1 | % | $ | 47.45 | $ | 44.91 | $ | 2.54 | 6 | % | |||||||||||||
Segment operating margin | 9 | % | 10 | % | 11 | % | 11 | % | |||||||||||||||||||||
In GBP: | |||||||||||||||||||||||||||||
Segment revenues | £ | 22,880 | £ | 22,798 | £ | 82 | — | % | £ | 62,264 | £ | 59,679 | £ | 2,585 | 4 | % | |||||||||||||
Average order value | £ | 33.77 | £ | 35.61 | £ | (1.84 | ) | (5 | )% | £ | 34.36 | £ | 35.79 | £ | (1.43 | ) | (4 | )% | |||||||||||
Average currency exchange rate: GBP to USD | 1.36 | 1.28 | 1.38 | 1.26 |
(a) | USD at prior year foreign currency exchange rate. |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | $ | % | |||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||||||
Unallocated expenses | $ | 6,171 | $ | 9,400 | $ | (3,229 | ) | (34 | )% | $ | 15,217 | $ | 20,855 | $ | (5,638 | ) | (27 | )% |
Six Months Ended June 30, | ||||||||
2018 | 2017 | |||||||
Net cash provided by/(used for) operating activities | $ | (1,586 | ) | $ | 19,609 | |||
Net cash used for investing activities | $ | (6,277 | ) | $ | (6,370 | ) | ||
Net cash used for financing activities | $ | (1,082 | ) | $ | (15,927 | ) |
Discount Rates | Terminal Growth Rates | ||||
FTD.com | 26.5 | % | 2.0 | % | |
Florist | 20.0 | % | 0.5 | % | |
International | 13.5 | % | 2.0 | % | |
ProFlowers/Gourmet Foods | 26.5 | % | 2.0 | % | |
Personal Creations | 26.5 | % | 2.5 | % |
1. | The risk factor “Our management has concluded, and our independent registered public accounting firm has emphasized in their report on our financial statements as of and for the fiscal year ended December 31, 2017, that, due to our anticipated failure to satisfy financial covenant requirements and uncertainties surrounding our ability to amend or refinance our current credit facility, substantial doubt exists as to our ability to continue as a going concern” is deleted and replaced as follows: |
2. | The risk factor “We have a substantial amount of indebtedness. This level of indebtedness could adversely affect our ability to raise additional capital to fund operations, our flexibility in operating our business, and our ability to react to changes in the economy or our industry, including implementation of our strategic plan” is restated in its entirety as follows: |
• | If we fail to meet payment obligations or otherwise default under our debt or the Amended Credit Agreement, the lenders will have the right to accelerate the indebtedness and exercise other rights and remedies against us. |
• | We may be required to dedicate a greater percentage of our cash flows to payments on our debt, thereby reducing the availability of cash flows to fund our strategic initiatives, capital expenditures, pursue acquisitions or investments in new technologies, and fund other general corporate requirements. |
• | Our ability to obtain additional financing to fund future working capital needs, strategic initiatives, capital expenditures, acquisitions, and other general corporate requirements could be limited. If we are unable to raise additional capital when required, it could affect our liquidity, business, financial condition, results of operations, and cash flows. In addition, our ability to borrow additional amounts under our revolving credit facility, which is a significant source of liquidity, is subject to restrictions on our usage of the revolving credit facility and an obligation to make regularly scheduled payments, and in some circumstances prepayments, of the term loan portion of the Amended Credit Agreement. Failure to meet our borrowing conditions under our revolving credit facility could materially and adversely impact our liquidity. |
• | Our debt imposes operating and financial covenants and restrictions on us, including limitations on our ability to use cash flows for the benefit of our subsidiaries. Compliance with such covenants and restrictions may adversely affect our ability to adequately finance our operations or capital needs, pursue attractive business opportunities that may arise, sell assets, and make capital expenditures. |
• | Our failure to comply with the terms of the Amended Credit Agreement, including failure as a result of events beyond our control, could result in an event of default on our debt. Upon an event of default, our lenders could elect to cause all amounts outstanding with respect to that debt to become immediately due and payable, and we would be unable to access our revolving credit facility. An event of default could materially and adversely affect our operating results, financial condition, and liquidity. |
• | We may continue to experience increased vulnerability to and limited flexibility in planning for or reacting to changes in or challenges relating to our business and industry, thus creating competitive disadvantages compared to other competitors with lower debt levels and borrowing costs. |
• | We may continue to experience increased vulnerability to general adverse economic conditions, including the increases in interest rates under the Amended Credit Agreement, and if our borrowings bear interest at variable rates or if such indebtedness is refinanced at a time when interest rates are higher. |
3. | The risk factor “If we are unable to successfully implement our strategic initiatives, our business, financial condition, results of operations, and cash flows could be materially and adversely affected” is restated in its entirety as follows: |
4. | The risk factor “Our operations could be adversely affected if we fail to integrate and retain our executive leadership team” is restated in its entirety as follows: |
Incorporated by Reference to | ||||||||||||
No. | Exhibit Description | Filed with this Form 10-Q | Form | File No. | Date Filed | Exhibit Number (if different) | ||||||
Form of Restricted Stock Unit Issuance Agreement for Non-Employee Directors (Annual Grant)** | X | |||||||||||
Third Amendment to Credit Agreement | 8-K | 001-35901 | 06/01/18 | 10.1 | ||||||||
First Amendment to the FTD Companies, Inc. Third Amended and Restated 2013 Incentive Compensation Plan (amended and restated as of June 6, 2017)** | DEF 14A | 001-35901 | 04/26/18 | |||||||||
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 | X | |||||||||||
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 | X | |||||||||||
Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002 | X | |||||||||||
Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002 | X | |||||||||||
101.INS | XBRL Instance Document | X | ||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||||||||
101.CAL | XBRL Taxonomy Calculation Linkbase Document | X | ||||||||||
101.LAB | XBRL Taxonomy Label Linkbase Document | X | ||||||||||
101.PRE | XBRL Taxonomy Presentation Linkbase Document | X | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Document | X |
Date: August 9, 2018 | FTD Companies, Inc. (Registrant) | |
By: | /s/ Steven D. Barnhart | |
Steven D. Barnhart | ||
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
Award Date: | <Grant Date> |
Number of Restricted Stock Units Subject to Award: | <Shares Granted> Restricted Stock Units |
Vesting Schedule: | The Restricted Stock Units shall vest in full upon the Participant’s continued service as a Board member through June 1, 20__ (the “Vesting Date”). The Restricted Stock Units shall also be subject to accelerated vesting in whole or in part in accordance with the provisions of Paragraphs 4 and 6 of this Agreement. |
Issuance Schedule: | Subject to Paragraphs 6 and 7 of this Agreement, each Restricted Stock Unit in which the Participant vests in accordance with the Vesting Schedule or pursuant to the acceleration provision of either Paragraph 4 or Paragraph 6 of this Agreement shall be settled in shares of Common Stock on the earliest to occur of: |
(i) the Vesting Date; (ii) the date of the Participant’s Separation from Service; and (iii) the effective date of a Qualifying Change in Control (in the absence of such a Qualifying Change in Control, the distribution shall not be made until the date or dates on which those amounts are otherwise to be distributed under (i) or (ii) above). | |
The date on which the vested Restricted Stock Units are to be settled in accordance with the foregoing is hereby designated the “Issuance Date.” |
1. | I have reviewed this Quarterly Report on Form 10-Q of FTD Companies, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and to the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: August 9, 2018 | /s/ Scott D. Levin |
Scott D. Levin | |
Interim President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of FTD Companies, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and to the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: August 9, 2018 | /s/ Steven D. Barnhart |
Steven D. Barnhart | |
Executive Vice President and Chief Financial Officer |
(a) | The Quarterly Report on Form 10-Q of FTD Companies, Inc. for the quarter ended June 30, 2018, as filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(b) | The information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Scott D. Levin | |
Scott D. Levin | |
Interim President and Chief Executive Officer |
(a) | The Quarterly Report on Form 10-Q of FTD Companies, Inc. for the quarter ended June 30, 2018, as filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(b) | The information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Steven D. Barnhart | |
Steven D. Barnhart | |
Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Aug. 03, 2018 |
|
Document and Entity Information | ||
Entity Registrant Name | FTD Companies, Inc. | |
Entity Central Index Key | 0001575360 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,938,332 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 6,242 | $ 4,957 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares issued | 30,364,811 | 30,073,087 |
Treasury stock, shares issued | 2,430,897 | 2,430,897 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Revenues: | ||||
Products | $ 268,006 | $ 293,228 | $ 551,009 | $ 574,192 |
Services | 31,915 | 34,918 | 67,082 | 70,447 |
Total revenues | 299,921 | 328,146 | 618,091 | 644,639 |
Operating expenses: | ||||
Cost of revenues—products | 189,946 | 198,682 | 396,217 | 390,809 |
Cost of revenues—services | 4,536 | 4,497 | 9,012 | 8,744 |
Sales and marketing | 71,067 | 76,224 | 153,349 | 145,120 |
General and administrative | 23,133 | 27,039 | 48,834 | 55,794 |
Amortization of intangible assets | 1,495 | 3,819 | 2,997 | 7,639 |
Restructuring and other exit costs | 0 | 136 | 0 | 944 |
Impairment of goodwill, intangible assets, and other long-lived assets | 136,861 | 0 | 139,216 | 0 |
Total operating expenses | 427,038 | 310,397 | 749,625 | 609,050 |
Operating income/(loss) | (127,117) | 17,749 | (131,534) | 35,589 |
Interest income | 120 | 122 | 241 | 237 |
Interest expense | (4,509) | (2,562) | (7,116) | (4,950) |
Other income, net | 160 | 223 | 136 | 198 |
Income/(loss) before income taxes | (131,346) | 15,532 | (138,273) | 31,074 |
Provision for/(benefit from) income taxes | (13,261) | 5,816 | (13,592) | 12,335 |
Net income/(loss) | $ (118,085) | $ 9,716 | $ (124,681) | $ 18,739 |
Earnings/(loss) per common share: | ||||
Basic earnings/(loss) per share (in dollars per share) | $ (4.25) | $ 0.35 | $ (4.49) | $ 0.67 |
Diluted earning/(loss) per share (in dollars per share) | $ (4.25) | $ 0.35 | $ (4.49) | $ 0.67 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ (118,085) | $ 9,716 | $ (124,681) | $ 18,739 |
Other comprehensive income/(loss): | ||||
Foreign currency translation | (6,396) | 4,124 | (2,461) | 5,846 |
Cash flow hedges: | ||||
Changes in net gains on derivatives, net of tax of $23 and $53 for the three months ended June 30, 2018 and 2017, respectively, and $59 and $107 for the six months ended June 30, 2018 and 2017, respectively. | 116 | 87 | 220 | 172 |
Other comprehensive income/(loss) | (6,280) | 4,211 | (2,241) | 6,018 |
Total comprehensive income/(loss) | $ (124,365) | $ 13,927 | $ (126,922) | $ 24,757 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2018 |
Jun. 30, 2017 |
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Statement of Comprehensive Income [Abstract] | ||||
Changes in net gains on cash flow hedge derivatives, tax | $ 23 | $ 53 | $ 59 | $ 107 |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS |
6 Months Ended |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS | DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS Description of Business FTD Companies, Inc. (together with its subsidiaries, “FTD” or the “Company”), is a premier floral and gifting company with a vision to be the world’s floral innovator and leader, creating products, brands, and technology-driven services its customers love. The Company provides floral, specialty foods, gift and related products and services to consumers, retail florists, and other retail locations and companies in need of floral and gifting solutions. The business uses the highly recognized FTD® and Interflora® brands, both supported by the iconic Mercury Man® logo. While the Company operates primarily in the United States (“U.S.”) and the United Kingdom (“U.K.”), it has worldwide presence as its Mercury Man logo is displayed in approximately 35,000 floral shops in over 125 countries. The Company’s diversified portfolio of brands also includes ProFlowers®, ProPlants®, Shari’s Berries®, Personal Creations®, RedEnvelope®, Flying Flowers®, Ink Cards™, Postagram™, Gifts.com™, and BloomThat™. While floral arrangements and plants are its primary offerings, the Company also markets and sells gift items, including gourmet-dipped berries and other sweets, personalized gifts, gift baskets, wine and champagne, and jewelry. The principal operating subsidiaries of FTD Companies, Inc. are Florists’ Transworld Delivery, Inc., FTD.COM Inc. (“FTD.com”), Interflora British Unit (“Interflora”), and Provide Commerce, Inc. (“Provide Commerce”). The operations of the Company include those of its subsidiary, Interflora, Inc., of which one-third is owned by a third party. The Company’s corporate headquarters is located in Downers Grove, Illinois. The Company also maintains offices in San Diego and San Francisco, California; Woodridge, Illinois; Centerbrook, Connecticut; Sleaford, England; and Hyderabad, India; and distribution centers in various locations throughout the U.S. Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires management to make accounting policy elections, estimates and assumptions that affect a number of reported amounts and related disclosures in the consolidated financial statements. Management bases its estimates on historical experience and assumptions that it believes are reasonable. Actual results could differ from those estimates and assumptions. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2017. Going Concern The condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. On May 31, 2018, the Company entered into the Third Amendment to Credit Agreement (the Credit Agreement, dated September 19, 2014, as previously amended and as further amended by the Third Amendment, is referred to in this Form 10-Q as the “Amended Credit Agreement”) with its lenders, which includes an agreement by the lenders to waive existing defaults caused by (1) the inclusion of a going concern uncertainty explanatory paragraph in the audit opinion of the Company’s financial statements for the year ended December 31, 2017 and (2) the breach of the consolidated net leverage ratio covenant for the quarter ended March 31, 2018. The Amended Credit Agreement also restricts the Company’s combined usage of the revolving credit facility portion of the Amended Credit Agreement to (1) $150 million during the period from May 31, 2018 through and including September 30, 2018; (2) $175 million during the period from October 1, 2018 through and including December 31, 2018; and (3) $150 million during the period from January 1, 2019 through the September 19, 2019 maturity date, all subject to the Company’s obligation to make prepayments of the term loan portion of the Amended Credit Agreement with any net cash proceeds received from the sale of certain non-core or other assets. In addition, the consolidated net leverage ratio and fixed charge coverage ratio covenants were revised for each quarterly period through the September 19, 2019 maturity date as were the interest rates applicable to borrowings under the Amended Credit Agreement. See Note 6—“Financing Arrangements” for additional information regarding the Amended Credit Agreement. The Company was in compliance with the revised covenants under the Amended Credit Agreement as of June 30, 2018. The ability to continue as a going concern, however, is dependent on the Company generating profitable operating results and continuing to be in compliance with the revised covenants under the Amended Credit Agreement or refinancing, repaying, or obtaining new financing prior to maturity of the Amended Credit Agreement in September 2019. In this regard, on July 19, 2018, the Company announced that its board of directors has initiated a review of strategic alternatives. The strategic alternatives expected to be considered include, but are not limited to, a sale or merger of the Company, the Company continuing to pursue value-enhancing initiatives as a standalone company, a capital structure optimization that may involve potential financings, or the sale or other disposition of certain of FTD’s businesses or assets. The Company also announced a corporate restructuring and cost savings plan, under which opportunities to optimize operations, drive efficiency, and reduce costs have been identified. Notwithstanding these initiatives, based on the Company’s 2018 year-to-date results of operations and outlook for the remainder of the term of the Amended Credit Agreement, the Company currently anticipates that its Adjusted EBITDA (as defined in the Amended Credit Agreement) and other sources of earnings or adjustments used to calculate Consolidated Adjusted EBITDA under the Amended Credit Agreement may result in (1) the Company’s consolidated net leverage ratio, as defined in the Amended Credit Agreement, exceeding the maximum permitted consolidated net leverage ratio during the remainder of the term of the Amended Credit Agreement and (2) the Company’s fixed charge coverage ratio, as defined in the Amended Credit Agreement, falling below the minimum requirement during the remainder of the term of the Amended Credit Agreement. If the Company is unable to meet the revised covenants under the Amended Credit Agreement and the Company is unable to obtain waivers or amendments from its lenders, the lenders could exercise remedies under the Amended Credit Agreement and repayment of the debt owed under the Amended Credit Agreement could be accelerated. The Company does not expect that it could repay all of its outstanding indebtedness if the repayment of such indebtedness was accelerated. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. There can be no assurance that the strategic alternatives review noted above will result in any particular strategic alternative or strategic transaction or that the Company will be able to refinance its outstanding indebtedness or obtain alternative financing on acceptable terms, when required or if at all. If the Company is not successful in its initiatives, the Company may be forced to limit its business activities or be unable to continue as a going concern, which would have a material adverse effect on its results of operations and financial condition. The financial statements included in this Form 10-Q do not include any adjustments that might result from the outcome of these uncertainties. Accounting Policies With the exception of the Company’s revenue recognition policy as noted below, refer to the Company’s audited consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2017 for a discussion of the Company’s accounting policies, as updated below for recently adopted accounting standards. Revenue Recognition The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers effective January 1, 2018, using the modified retrospective method. This method requires that the cumulative effect of the initial application is recognized as an adjustment to the opening balance of the Company’s retained earnings at January 1, 2018. However, the adoption did not have a material impact on the Company’s revenue recognition. As such, the Company did not record an adjustment to its beginning balance of retained earnings as of January 1, 2018. The Company recognizes revenue from short-term contracts for the sale of various products and services to its customers, which include consumers, floral network members, and wholesale customers. Sales to consumers are generated via the Company’s websites, mobile sites, or over the telephone with payment made either at the time the order is placed or upon shipment. Product revenues from these short-term contracts are single performance obligations and are considered complete upon delivery to the recipient. Amounts collected from customers upon placement of an order are recorded as deferred revenue and recognized upon delivery of the product. Products revenues, less discounts and refunds, and the related cost of revenues are recognized when control of the goods is transferred to the recipient, which is generally upon delivery. Product sales are not refundable other than as related to customer service issues. Shipping and service fees charged to customers are recognized at the time the related products revenues are recognized and are included in products revenues. Shipping and delivery costs are included in cost of revenues. Sales taxes are collected from customers and remitted to the appropriate taxing authorities and are not reflected in the Company’s condensed consolidated statements of operations as revenues. The Company generally recognizes revenues for sales to consumers on a gross basis because the Company controls the goods before they are transferred to the recipient as the Company (i) bears primary responsibility for fulfilling the promise to the customer; (ii) bears inventory risk before and/or after the good or service is transferred to the customer; and (iii) has discretion in establishing the price for the sale of the good or service to the customer. Services revenues related to orders sent through the floral network are variable based on either the number of orders or the value of orders and are recognized in the period in which the orders are delivered. Membership and other subscription-based fees are recognized monthly as earned, on a month-to-month basis. Each service offered by the Company is separate and distinct from other services and represents an individual performance obligation. The Company also sells point-of-sale systems and related technology services to its floral network members and recognizes revenue in accordance with ASC 606. For hardware sales that include software, revenues are recognized when delivery, installation and customer acceptance have all occurred. The transaction price for point-of-sale systems is based on the equipment and the software modules ordered by the customer and include installation and training for the system. The sale of the system is considered a single performance obligation since the installation and training are a significant part of the sale in order for the floral network member to access the clearinghouse to send and receive floral orders. The Company recognizes revenues on hardware which is sold without software at the time of delivery. Probability of collection for both products and services revenue is assessed based on a number of factors, including past transaction history with the customer and the creditworthiness of the customer. If it is determined that collectability is not reasonably assured, revenues are not recognized until collectability becomes reasonably assured. The Company incurs contract costs that are incremental costs incurred for obtaining a contract. These contract costs are short-term (less than a year) and are expensed as incurred based on the practical expedient provided in ASC 606. As such, the Company does not capitalize costs incurred for obtaining a contract. Recent Accounting Pronouncements Recently Adopted Accounting Standards In March 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-05, Income Taxes (Topic 740)—Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, which provides guidance from the SEC allowing for the recognition of provisional amounts in the financial statements for the year ended December 31, 2017 as a result of the U.S. Tax Cuts and Jobs Act (“TCJA”) that was signed into law in December 2017. The guidance allows for a measurement period of up to one year from the enactment date to finalize the accounting related to the TCJA. The Company has applied the guidance in this update in its financial statements for the six months ended June 30, 2018 and will finalize and record any adjustments related to the TCJA within the one year measurement period. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016, and December 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2016-20, respectively (collectively, “Topic 606”). Topic 606 supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of Topic 606 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Company adopted the guidance under this topic as of January 1, 2018 with no material impact to its consolidated financial statements. See Accounting Policies—Revenue Recognition above. The disclosures required by ASC 606 have been included in Note 2—Segment Information. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). The updated guidance enhances the reporting model for financial instruments, and includes amendments to address aspects of recognition, measurement, presentation and disclosure. The Company adopted the guidance under this topic as of January 1, 2018 with no impact to its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update was issued to address the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows by adding or clarifying guidance on eight specific cash flow issues. The Company adopted the guidance under this topic as of January 1, 2018 with no impact to its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This update was issued to provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718 to the modification of terms or conditions of a share-based payment award. The amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards would require an entity to apply modification accounting under Topic 718. The Company adopted the guidance under this topic as of January 1, 2018 with no impact to its consolidated financial statements. Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This update requires the recognition of certain lease assets and lease liabilities on the balance sheet as well as the disclosure of key information about leasing arrangements. The amendments in this ASU require the recognition and measurement of leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients which may be elected by the Company. The amendments in this ASU will be effective for the Company for fiscal years, and the interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). This update seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments, including trade receivables, and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require an entity to replace the incurred loss impairment methodology in current GAAP with a methodology that reflects current expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The amendments will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which guidance is effective, which is a modified-retrospective approach. The Company is currently assessing the impact of this update on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This update seeks to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. For cash flow and net investment hedges as of the adoption date, this ASU requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively. The amendments in this ASU are effective for the Company’s fiscal year beginning after December 31, 2018, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This update allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. This update also requires certain disclosures about stranded tax effects. The amendments in this ASU will be effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This update allows existing employee guidance to apply to non-employee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. The amendments in this ASU will be effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. |
SEGMENT INFORMATION |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION The Company reports its business in three reportable segments: U.S. Consumer, Florist, and International. Prior to January 1, 2018, the Company reported its business in four reportable segments. As a result of a change in the information provided to and utilized by the Company’s then-current Chief Executive Officer (who was also the Company’s Chief Operating Decision Maker (“CODM”)) to assess the performance of the business, the Company combined the previous Provide Commerce and Consumer segments into one reportable segment. There have been no changes to the Company’s reporting units, which remain FTD.com (previously referred to as Consumer), Florist, International, ProFlowers/Gourmet Foods, and Personal Creations. The Company follows the reporting requirements of ASC 280, Segment Reporting. Management measures and reviews the Company’s operating results by segment in accordance with the “management approach” defined in ASC 280. The reportable segments identified below were the segments of the Company for which separate financial information was available and for which segment results were regularly reviewed by the Company’s CODM to make decisions about the allocation of resources and to assess performance. The CODM uses segment operating income to evaluate the performance of the business segments and make decisions about allocating resources among segments. Segment operating income is operating income excluding depreciation, amortization, litigation and dispute settlement charges or gains, transaction-related costs, restructuring and other exit costs, and impairment of goodwill, intangible assets and other long-lived assets. Stock-based and incentive compensation and general corporate expenses are not allocated to the segments. Segment operating income is prior to intersegment eliminations and excludes other expense, net. Below is a reconciliation of segment revenues to consolidated revenues (in thousands):
Intersegment revenues represent amounts charged from one segment to the other for services provided based on order volume at a set rate per order. Intersegment revenues by segment were as follows (in thousands):
The U.S. Consumer segment is comprised of the FTD.com, ProFlowers, Gourmet Foods, and Personal Creations business units. The revenues for the business units were as follows (in thousands):
Geographic revenues from sales to external customers were as follows for the periods presented (in thousands):
Below is a reconciliation of segment operating income/(loss) to consolidated operating income/(loss) and income/(loss) before income taxes (in thousands):
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FINANCING RECEIVABLES |
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FINANCING RECEIVABLES | FINANCING RECEIVABLES The Company has financing receivables related to equipment sales to its floral network members. The current and noncurrent portions of financing receivables are included in accounts receivable and other assets, respectively, in the condensed consolidated balance sheets. The Company assesses financing receivables individually for balances due from current floral network members and collectively for balances due from terminated floral network members. The credit quality and the aging of financing receivables was as follows (in thousands):
Financing receivables on nonaccrual status totaled $1.1 million and $1.0 million at June 30, 2018 and December 31, 2017, respectively. The allowance for credit losses and the recorded investment in financing receivables were as follows (in thousands):
Individually evaluated impaired loans, including the recorded investment in such loans, the unpaid principal balance, and the allowance related to such loans, each totaled less than $0.1 million as of both June 30, 2018 and December 31, 2017. The average recorded investment in such loans was less than $0.1 million for both the six months ended June 30, 2018 and 2017. Interest income recognized on impaired loans was less than $0.1 million for both the six months ended June 30, 2018 and 2017. |
TRANSACTIONS WITH RELATED PARTIES |
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Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES | TRANSACTIONS WITH RELATED PARTIES Transactions with Qurate As of June 30, 2018, Qurate Retail, Inc. (“Qurate”), formerly Liberty Interactive Corporation, owned 36.5% of the issued and outstanding shares of FTD common stock. An Investor Rights Agreement governs certain rights of and restrictions on Qurate in connection with the shares of FTD common stock that Qurate owns. The I.S. Group Limited Interflora holds an equity investment of 20.4% in The I.S. Group Limited (“I.S. Group”). The investment was $1.7 million as of both June 30, 2018 and December 31, 2017, and is included in other assets in the condensed consolidated balance sheets. I.S. Group supplies floral-related products to Interflora’s floral network members in both the U.K. and the Republic of Ireland as well as to other customers. Interflora derives revenues from I.S. Group from (i) the sale of products (sourced from third-party suppliers) to I.S. Group for which revenue is recognized on a gross basis, (ii) commissions on products sold by I.S. Group (sourced from third-party suppliers) to floral network members, and (iii) commissions for acting as a collection agent on behalf of I.S. Group. Revenues related to products sold to and commissions earned from I.S. Group were $0.4 million for each of the three months ended June 30, 2018 and 2017, and $1.3 million and $1.1 million for the six months ended June 30, 2018 and 2017, respectively. In addition, Interflora purchases products from I.S. Group for sale to consumers. The cost of revenues related to products purchased from I.S. Group was $0.1 million for each of the three months ended June 30, 2018 and 2017, and $0.2 million and $0.1 million for the six months ended June 30, 2018 and 2017, respectively. Amounts due from I.S. Group were $0.2 million and $0.3 million at June 30, 2018 and December 31, 2017, respectively, and amounts payable to the I.S. Group were $0.8 million and $1.0 million at June 30, 2018 and December 31, 2017, respectively. |
GOODWILL, INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS |
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Goodwill Tangible and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL, INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS | GOODWILL, INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS Goodwill is tested for impairment at the reporting unit level. A reporting unit is a business or a group of businesses for which discrete financial information is available and is regularly reviewed by management. An operating segment is made up of one or more reporting units. The Company reports its business operations in three operating and reportable segments: U.S. Consumer, Florist, and International. Each of the Florist and International segments is a reporting unit. The U.S Consumer segment is comprised of three reporting units: FTD.com, ProFlowers/Gourmet Foods, and Personal Creations. The Company tests goodwill and indefinite-lived intangible assets for impairment annually during the fourth quarter of each year at the reporting unit level and on an interim basis if events or substantive changes in circumstances indicate that the carrying amount of a reporting unit or an indefinite-lived asset may exceed its fair value (i.e. that a triggering event has occurred). Additionally, the Company evaluates finite-lived intangible assets and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset groupings may not be recoverable. During the quarter ended June 30, 2018, due to continued declines in financial results and reductions in the projected results for the remainder of 2018, the Company determined that a triggering event had occurred that required an interim impairment assessment for all of its reporting units other than the International reporting unit, as that reporting unit’s year-to-date and projected results were relatively in line with expectations. The intangible assets and other long-lived assets associated with the reporting units assessed were also reviewed for impairment. Impairment charges are included in operating expenses in the condensed consolidated statement of operations under the caption impairment of goodwill, intangible assets, and other long-lived assets. The Company performed a quantitative interim test. In calculating the fair value of the reporting units, the Company used a combination of the income approach and the market approach valuation methodologies. For all reporting units other than the ProFlowers/Gourmet Foods reporting unit, the income approach was used primarily, as management believes that a discounted cash flow approach is the most reliable indicator of the fair values of the businesses. Under the market approach, the guideline company method was used, which focuses on comparing the Company’s risk profile and growth prospects to select reasonably similar companies based on business description, revenue size, markets served, and profitability. For the ProFlowers/Gourmet Foods reporting unit, the cost approach was used. The interim test resulted in the Company’s determination that the fair value of the Florist reporting unit exceeded its carrying value and, therefore, its goodwill was not impaired. The reporting unit’s fair value exceeded its carrying value by approximately 6%. The fair values of the FTD.com, ProFlowers/Gourmet Foods, and Personal Creations reporting units were less than their carrying values and, as such, goodwill impairment charges of $35.2 million, $14.8 million, and $12.5 million, respectively, were recorded during the three months ended June 30, 2018 related to these reporting units. Such goodwill impairment charges are not deductible for tax purposes. The remaining goodwill balances for the U.S Consumer, Florist, and International segments are as noted in the table below. The ProFlowers/Gourmet Foods reporting unit’s goodwill was fully impaired as of June 30, 2018. Within the U.S. Consumer segment, the remaining goodwill balances for the FTD.com and Personal Creations reporting units were $29.3 million and $13.8 million, respectively, as of June 30, 2018. Goodwill The changes in the net carrying amount of goodwill for the six months ended June 30, 2018 were as follows (in thousands):
In 2017, 2016, 2015, and 2008, the Company recorded goodwill impairment charges of $196.7 million, $84.0 million, $85.0 million, and $116.3 million, respectively. The table above reflects the Company’s June 30, 2018 goodwill balances, net of the previously recorded impairment charges. The total accumulated goodwill impairment was $544.5 million as of June 30, 2018. Intangible Assets Intangible assets are primarily related to the acquisition of the Company by United Online, Inc. in August 2008 and the acquisition of Provide Commerce in December 2014, and consist of the following (in thousands):
As of June 30, 2018, estimated future intangible assets amortization expense for each of the next five years and thereafter was as follows (in thousands):
Other Long-Lived Assets Property and equipment consisted of the following (in thousands):
During the year ended December 31, 2017, the other long-lived assets related to the ProFlowers/Gourmet Foods reporting unit were fully impaired as the projected undiscounted cash flows of that reporting unit were less than the carrying amount of such assets. Additional impairment charges of $1.2 million and $3.6 million were recorded during the three and six months ended June 30, 2018, respectively, related to capital additions for that reporting unit as the undiscounted cash flows continue to be less than the carrying amount of the assets of that asset group. Depreciation expense, including the amortization of leasehold improvements, was $2.6 million and $5.5 million for the three months ended June 30, 2018 and 2017, respectively, and $5.2 million and $10.9 million for the six months ended June 30, 2018 and 2017, respectively. |
FINANCING ARRANGEMENTS |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Credit Agreement On September 19, 2014, the Company entered into a credit agreement (the “Credit Agreement”) with Interflora, certain wholly owned domestic subsidiaries of FTD Companies, Inc. party thereto as guarantors, the financial institutions party thereto from time to time, Bank of America Merrill Lynch and Wells Fargo Securities, LLC, as joint lead arrangers and book managers, and Bank of America, N.A., as administrative agent for the lenders. The Credit Agreement provided for a term loan in an aggregate principal amount of $200 million, the proceeds of which were used to repay a portion of outstanding revolving loans, and also provided for a $350 million revolving credit facility. On December 31, 2014, the Company borrowed $120 million under the revolving credit facility to fund the cash portion of the acquisition purchase price of Provide Commerce. The obligations under the Credit Agreement are guaranteed by certain of FTD Companies, Inc.’s wholly owned domestic subsidiaries (together with FTD Companies, Inc., the “U.S. Loan Parties”). In addition, the obligations under the Credit Agreement are secured by a lien on substantially all of the assets of the U.S. Loan Parties, including a pledge of all of the outstanding capital stock of certain direct subsidiaries of the U.S. Loan Parties (except with respect to foreign subsidiaries and certain domestic subsidiaries whose assets consist primarily of foreign subsidiary equity interests, in which case such pledge is limited to 66% of the outstanding capital stock). The Credit Agreement contains customary representations and warranties, events of default, affirmative covenants and negative covenants, that, among other things, require the Company to maintain compliance with a maximum net leverage ratio and a minimum consolidated fixed charge coverage ratio, and impose restrictions and limitations on, among other things, investments, dividends, share repurchases, asset sales, and the Company’s ability to incur additional debt and additional liens. On May 31, 2018, the Company entered into the Amended Credit Agreement with its lenders, which includes an agreement by the lenders to waive existing defaults caused by (1) the inclusion of a going concern uncertainty explanatory paragraph in the audit opinion of the Company’s financial statements for the year ended December 31, 2017 and (2) the breach of the consolidated net leverage ratio covenant for the quarter ended March 31, 2018. The Amended Credit Agreement also restricts the Company’s combined usage of the revolving credit facility portion of the Amended Credit Agreement to (1) $150 million during the period from May 31, 2018 through and including September 30, 2018; (2) $175 million during the period from October 1, 2018 through and including December 31, 2018; and (3) $150 million during the period from January 1, 2019 through the September 19, 2019 maturity date, all subject to the Company’s obligation to make prepayments of the term loan portion of the Amended Credit Agreement with any net cash proceeds received from the sale of certain non-core or other assets. In addition, the consolidated net leverage ratio and fixed charge coverage ratio covenants were revised for each quarterly period through the September 19, 2019 maturity date, as were the interest rates, as noted below. The Company is also required to pay a quarterly fee of 0.125% times the actual daily amount of the revolver commitments and outstanding loans beginning October 1, 2018 through December 31, 2018, which fee increases to 0.25% beginning January 1, 2019 through the maturity date. The Company paid an amendment fee of 0.625% times the revolver commitments and outstanding term loan ($1.9 million) in addition to a $0.5 million work fee related to the structuring and arranging of the amendment. The Company was in compliance with the revised covenants under the Amended Credit Agreement as of June 30, 2018. The ability to continue as a going concern is dependent on the Company generating profitable operating results and continuing to be in compliance with its revised covenants under the Amended Credit Agreement or refinancing, repaying, or obtaining new financing prior to maturity of the Amended Credit Agreement in September 2019, as discussed in Note 1—“Description of Business, Basis of Presentation, Accounting Policies, and Recent Accounting Pronouncements.” The interest rates applicable to borrowings under the Amended Credit Agreement are based on either LIBOR plus a margin ranging from 2.50% per annum to 7.50% per annum, or a base rate plus a margin ranging from 1.50% per annum to 6.50% per annum, calculated according to the Company’s net leverage ratio. In addition, under the Amended Credit Agreement, the Company pays a commitment fee of 0.50% per annum on the unused portion of the revolving credit facility and a letters of credit fee ranging between 2.50% per annum to 7.50% per annum. The stated interest rates (based on LIBOR) as of June 30, 2018 under the term loan and the revolving credit facility were 7.83% and 7.74%, respectively. The effective interest rates as of June 30, 2018 under the term loan and the revolving credit facility portions of the Amended Credit Agreement were 10.46% and 10.97%, respectively. The effective interest rates include the amortization of both the debt issuance costs and the effective portion of the interest rate swap and commitment fees. The commitment fee rate as of June 30, 2018 was 0.50%. As of June 30, 2018, the remaining borrowing capacity under the Amended Credit Agreement, which was reduced by $1.8 million in outstanding letters of credit, was $83.2 million. The changes in the Company’s debt balances for the six months ended June 30, 2018 were as follows (in thousands):
The term loan is subject to amortization payments of $5 million per quarter and customary mandatory prepayments under certain conditions. |
DERIVATIVE INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS In March 2012, the Company purchased, for $1.9 million, forward starting interest rate cap instruments based on 3-month LIBOR, effective January 2015 through June 2018. The forward starting interest rate cap instruments had aggregated notional values totaling $130 million. The interest rate cap instruments were designated as cash flow hedges against expected future cash flows attributable to future 3-month LIBOR interest payments on a portion of the outstanding borrowings under the Credit Agreement. The gains or losses on the instruments were reported in other comprehensive income/(loss) to the extent that they were effective and were reclassified into earnings when the cash flows attributable to 3-month LIBOR interest payments were recognized in earnings. The estimated fair values and notional values of outstanding derivative instruments as of June 30, 2018 and December 31, 2017 were as follows (in thousands):
The Company recognized the following losses from derivatives, before tax, in other comprehensive income/(loss) (in thousands):
As of June 30, 2018, the interest rate caps had matured. As of December 31, 2017, the effective portion, before tax effect, of the Company’s interest rate caps designated as cash flow hedging instruments was $0.3 million. During the three months ended June 30, 2018 and 2017, respectively, $0.1 million and $0.2 million was reclassified from accumulated other comprehensive income/(loss) to interest expense in the condensed consolidated statements of operations. During each of the six months ended June 30, 2018 and 2017, $0.3 million was reclassified from accumulated other comprehensive income/(loss) to interest expense in the condensed consolidated statement of operations. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table presents estimated fair values of financial assets and liabilities and derivative instruments that were required to be measured at fair value on a recurring basis (in thousands):
Provide Commerce, Inc. has an executive deferred compensation plan for key management level employees under which such employees could elect to defer receipt of current compensation. This plan is intended to be an unfunded, non-qualified deferred compensation plan that complies with the provisions of section 409A of the Internal Revenue Code. At the time of the acquisition of Provide Commerce, contributions to the plan were suspended except those relating to any compensation earned but not yet paid as of the same date. The plan assets consist primarily of life insurance contracts recorded at their cash surrender value. During the three months ended June 30, 2018, the Company cancelled certain of the life insurance contracts and received proceeds totaling $10.0 million from the cash surrender value. At June 30, 2018 and December 31, 2017, the life insurance policies had cash surrender values of $1.7 million and $11.7 million, respectively, and are included in other assets in the accompanying condensed consolidated balance sheets. As a result of triggering events within the periods, the Company performed impairment tests of its intangible and other long-lived assets during the three months ended June 30, 2018 and the year ended December 31, 2017. Based on these tests, the Company determined that the carrying value of certain intangible assets and other long-lived assets exceeded their fair values as determined using the income approach as of June 30, 2018 and December 31, 2017. As such, non-cash, pre-tax impairment charges of $76.7 million (excluding goodwill impairment charges of $62.5 million) were recorded during the six months ended June 30, 2018 and $103.6 million (excluding goodwill impairment charges of $196.7 million) were recorded during the year ended December 31, 2017. The determination of fair value is subjective in nature and requires the use of significant estimates and assumptions, considered to be Level 3 inputs, including projected cash flows over the estimated projection period and the discount rate. See Note 5—“Goodwill, Intangible Assets, and Other Long-Lived Assets” for additional information. The Company estimated the fair value of its outstanding debt using a discounted cash flow approach that incorporates a market interest yield curve with adjustments for duration and risk profile. In determining the market interest yield curve, the Company considered, among other factors, its estimated credit spread. As of June 30, 2018, the Company estimated its credit spread as 6.9% and 8.6% for the term loan and revolving credit facility, respectively, resulting in yield-to-maturity estimates for the term loan and revolving credit facility of 9.2% and 11.0%, respectively. As of December 31, 2017, the Company estimated its credit spread as 1.0% and 1.6% for the term loan and revolving credit facility, respectively, resulting in yield-to-maturity estimates for the term loan and revolving credit facility of 2.9% and 3.4%, respectively. The table below summarizes the carrying amounts and estimated fair values for the Company’s debt (in thousands):
Fair value approximates the carrying amount of financing receivables because such receivables are discounted at a rate comparable to market. Fair values of cash and cash equivalents, short-term accounts receivable, accounts payable, and accrued liabilities approximate their carrying amounts because of their short-term nature. |
STOCKHOLDERS' EQUITY |
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Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Common Stock Repurchases Upon the exercise of stock options or the vesting of restricted stock units (“RSUs”) or other equity compensation awards, the Company does not collect withholding taxes in cash from employees. Instead, the Company automatically withholds, from the awards that vest or stock options that are exercised, the portion of those shares with a fair market value equal to the amount of the minimum statutory withholding taxes due. The withheld shares are accounted for as repurchases of common stock but are not counted against the limits under a repurchase program. The Company then pays the minimum statutory withholding taxes in cash. During the six months ended June 30, 2018, 0.3 million RSUs vested for which 0.1 million shares were withheld to cover the minimum statutory withholding taxes of $0.5 million. |
INCENTIVE COMPENSATION PLANS |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCENTIVE COMPENSATION PLANS | INCENTIVE COMPENSATION PLANS In June 2018, stockholders approved the amendment to the FTD Companies, Inc. Third Amended and Restated 2013 Incentive Compensation Plan (as so amended, the “Amended Plan”), which provides for the granting of awards to employees and non-employee directors, including stock options, stock appreciation rights, restricted stock units (“RSUs”), and other stock based awards. As of June 30, 2018, the Company had 5.0 million shares available for issuance under the Amended Plan. During the six months ended June 30, 2018, the Company granted RSUs, performance stock units (“PSUs”), and stock options to certain employees totaling 0.9 million shares, 1.3 million shares, and 0.8 million shares, respectively. The RSUs and stock options granted will generally vest in four equal annual installments. The per share weighted average fair market value of the underlying stock on the grant date of the RSUs and PSUs was $6.39 and $6.64, respectively. The options were granted with a weighted average exercise price of $6.64 per share. The following weighted average assumptions were used to estimate the fair value of the stock options at the grant date:
Vesting of the PSUs is based on the achievement of certain performance criteria, as specified in the plan, at the end of a three-year performance period ending on December 31, 2020. The actual number of shares that will ultimately vest is dependent upon the level of achievement of the performance conditions. If the minimum targets are not achieved, none of the shares will vest and any compensation expense previously recognized will be reversed. The Company recognizes stock-based compensation expense related to performance awards based upon the Company’s estimate of the likelihood of achievement of the performance targets at each reporting date. As of June 30, 2018, the Company does not expect the PSUs to vest. As such, no expense was recorded during the six months ended June 30, 2018 related to these awards. In addition to the equity awards noted above, eligible employees of the Company are able to participate in the FTD Companies, Inc. 2015 Employee Stock Purchase Plan (“ESPP Plan”) through which employees may purchase shares of FTD common stock at a purchase price equal to 85% of the lower of (i) the closing market price per share of FTD common stock on the first day of the offering period or (ii) the closing market price per share of FTD common stock on the purchase date. Each offering period has a six-month duration and purchase interval. The purchase dates are January 1 and July 1. As of June 30, 2018, the Company had 0.2 million shares available for grant under the ESPP Plan. The stock-based compensation expense incurred for all equity plans in the three months ended June 30, 2018 and 2017 and the six months ended June 30, 2018 and 2017 have been included in the condensed consolidated statements of operations as follows (in thousands):
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INCOME TAXES |
6 Months Ended |
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Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES During the three months ended June 30, 2018, the Company recorded a tax benefit of $13.3 million on a pre-tax loss of $131.3 million, compared to a tax provision of $5.8 million on pre-tax income of $15.5 million for the three months ended June 30, 2017. During the three months ended June 30, 2018, management determined that the future reversals of existing taxable temporary differences and available tax strategies would not generate sufficient future taxable income to be able to realize its state net operating loss carryforward tax assets prior to their expiration and, therefore, a valuation allowance of $1.6 million was recorded. In addition, the goodwill impairment charges recorded during the three months ended June 30, 2018 are not tax deductible and, therefore, there was no tax benefit recorded on such charges. During the six months ended June 30, 2018, the Company recorded a tax benefit of $13.6 million on a pre-tax loss of $138.3 million, compared to a tax provision of $12.3 million on pre-tax income of $31.1 million for the six months ended June 30, 2017. The placement of a valuation allowance on the state net operating loss carryforwards and shortfalls related to vesting of equity awards increased tax expense by $1.6 million and $2.6 million, respectively, for the six months ended June 30, 2018. For the six months ended June 30, 2017, shortfalls related to vesting of equity awards were $1.4 million. In addition, the goodwill impairment charges recorded during the six months ended June 30, 2018 are not tax deductible and, therefore, there was no tax benefit recorded on such charges. |
EARNINGS/(LOSS) PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS/(LOSS) PER SHARE | EARNINGS/(LOSS) PER SHARE Certain of the Company’s RSUs and PSUs are considered participating securities because they contain a non-forfeitable right to dividends irrespective of whether dividends are actually declared or paid or whether the awards ultimately vest. Accordingly, the Company computes earnings/(loss) per share pursuant to the two-class method in accordance with ASC 260, Earnings Per Share. The following table sets forth the computation of basic and diluted earnings/(loss) per common share (in thousands, except per share amounts):
The diluted earnings/(loss) per common share computations exclude stock options and RSUs which are antidilutive. Weighted-average antidilutive shares for the three months ended June 30, 2018 and 2017 were 4.5 million and 4.1 million, respectively, and for the six months ended June 30, 2018 and 2017, were 3.9 million and 3.5 million, respectively. |
RESTRUCTURING AND OTHER EXIT COSTS |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING AND OTHER EXIT COSTS | RESTRUCTURING AND OTHER EXIT COSTS Restructuring and other exit costs were as follows (in thousands):
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CONTINGENCIES - LEGAL MATTERS |
6 Months Ended |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES-LEGAL MATTERS | CONTINGENCIES—LEGAL MATTERS Commencing on August 19, 2009, the first of a series of putative consumer class action lawsuits was brought against Provide Commerce, Inc. and co-defendant Regent Group, Inc. d/b/a Encore Marketing International (“EMI”). These cases were ultimately consolidated during the next three years into Case No. 09 CV 2094 in the United States District Court for the Southern District of California under the title In re EasySaver Rewards Litigation. Plaintiffs’ claims arise from their online enrollment in subscription based membership programs known as EasySaver Rewards, RedEnvelope Rewards, and Preferred Buyers Pass (collectively, the “Membership Programs”). Plaintiffs claim that after they ordered items from certain of Provide Commerce’s websites, they were presented with an offer to enroll in one of the Membership Programs, each of which is offered and administered by EMI. Plaintiffs purport to represent a nationwide class of consumers allegedly damaged by Provide Commerce’s purported unauthorized or otherwise allegedly improper transferring of billing information to EMI, who then posted allegedly unauthorized charges to their credit or debit card accounts for membership fees for the Membership Programs. In the operative fourth amended complaint, plaintiffs asserted ten claims against Provide Commerce and EMI: (1) breach of contract (against Provide Commerce only); (2) breach of contract (against EMI only); (3) breach of implied covenant of good faith and fair dealing; (4) fraud; (5) violations of the California Consumers Legal Remedies Act; (6) unjust enrichment; (7) violation of the Electronic Funds Transfer Act (against EMI only); (8) invasion of privacy; (9) negligence; and (10) violations of the Unfair Competition Law. Plaintiffs seek damages, attorneys’ fees, and costs. After motion practice regarding the claims asserted and numerous settlement conferences and mediations in an effort to informally resolve the matter, the parties reached an agreement on the high level terms of a settlement on April 9, 2012, conditioned on the parties negotiating and executing a complete written agreement. In the weeks following April 9, 2012, the parties negotiated a formal written settlement agreement (the “Settlement”), which the court preliminarily approved on June 13, 2012. After notice to the purported class and briefing by the parties, the court conducted a final approval hearing (also known as a fairness hearing) on January 28, 2013, but did not rule. On February 4, 2013, the court entered its final order approving the Settlement, granting plaintiffs’ motion for attorneys’ fees, costs, and incentive awards, and overruling objections filed by a single objector. The court entered judgment on the Settlement on February 21, 2013. The objector filed a notice of appeal with the Ninth Circuit Court of Appeals on March 4, 2013. After the completion of briefing, the Ninth Circuit set oral argument for February 2, 2015. But on January 29, 2015, the Ninth Circuit entered an order deferring argument and resolution of the appeal pending the Ninth Circuit’s decision in a matter captioned Frank v. Netflix, No. 12 15705+. On March 19, 2015, the Ninth Circuit entered an order vacating the judgment in this matter and remanding it to the district court for further proceedings consistent with its opinion in Frank v. Netflix issued on February 27, 2015. The district court ordered supplemental briefing on the issue of final Settlement approval May 21, 2015. After briefing, the district court conducted a hearing on July 27, 2016 and took the matter under submission. On August 9, 2016, the district court entered an order reapproving the Settlement without any changes, and accordingly entered judgment and dismissed the case with prejudice. On September 6, 2016, the objector filed a notice of appeal. On November 22, 2016, plaintiffs filed a motion for summary affirmance of the district court’s judgment, to which the objector responded and filed a cross-motion for sanctions. Plaintiffs’ motion for summary affirmance temporarily stayed briefing on the appeal. On March 2, 2017, the Ninth Circuit denied plaintiffs’ motion for summary affirmance and objector’s cross-motion for sanctions, and reset the briefing schedule. The Objector filed his opening brief on May 1, 2017. Thirteen state Attorneys General filed an amicus brief in support of the Objector on May 8, 2017. The parties filed their answering briefs on June 30, 2017. Various legal aid organizations filed an amicus brief in support of no party regarding cy pres relief also on June 30, 2017. The Objector’s optional reply brief was filed on August 14, 2017. The Ninth Circuit heard oral arguments on May 17, 2018, but has not yet made its ruling. There are no assurances that other legal actions or governmental investigations will not be instituted in connection with the Company’s current or former business practices. The Company cannot predict the outcome of governmental investigations or other legal actions or their potential implications for its business. The Company records a liability when it believes that it is both probable that a loss has been incurred, and the amount of loss can be reasonably estimated. The Company evaluates, at least quarterly, developments in its legal matters that could affect the assessment of the probability of loss or the amount of liability and makes adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount. The Company may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (i) if the damages sought are indeterminate, (ii) if the proceedings are in early stages, (iii) if there is uncertainty as to the outcome of pending appeals, motions or settlements, (iv) if there are significant factual issues to be determined or resolved, and (v) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any. As of June 30, 2018 and December 31, 2017, the Company had reserves totaling $2.8 million and $2.5 million for estimated losses related to certain legal matters. With respect to other legal matters, the Company has determined, based on its current knowledge, that the amount of possible loss or range of loss, including any reasonably possible losses in excess of amounts already accrued, is not reasonably estimable. However, legal matters are inherently unpredictable and subject to significant uncertainties, some of which are beyond the Company’s control. As such, there can be no assurance that the final outcome of these matters will not materially and adversely affect the Company’s business, financial condition, results of operations, or cash flows. |
SUPPLEMENTAL CASH FLOW INFORMATION |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The following table sets forth supplemental cash flow disclosures (in thousands):
At June 30, 2018, non-cash investing items included $6.3 million of purchases of property and equipment that were included in accounts payable and other liabilities in the Company’s consolidated balance sheet. These purchases will be reflected in investing activities in the consolidated statement of cash flows in the periods in which they are paid. |
SUBSEQUENT EVENTS |
6 Months Ended |
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Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 18, 2018, the Company announced that its board of directors initiated a review of strategic alternatives focused on maximizing stockholder value, including but not limited to, a sale or merger of the Company, the Company pursuing value-enhancing initiatives as a standalone company, a capital structure optimization that may involve potential financings, or the sale or other disposition of certain of the Company’s businesses or assets. In addition, the Company’s board of directors appointed Scott D. Levin, the Company’s then-current Executive Vice President, General Counsel and Secretary, as interim President and Chief Executive Officer. Mr. Levin succeeds John C. Walden, who has stepped down from these positions and from FTD’s board of directors. Under the terms of Mr. Walden’s employment agreement, he is entitled to the severance and other benefits described in such agreement, including cash severance payments, as well as accelerated vesting of a portion of his outstanding nonvested restricted stock units and unvested stock options, subject in each case to his compliance with certain covenants in his employment agreement. In addition, in the event of a change in control involving the Company during 2018, Mr. Walden will be entitled to receive a pro-rated target bonus calculated under the terms of his employment agreement. The foregoing description of Mr. Walden’s employment agreement is qualified in its entirety by reference to (1) the Employment Agreement between FTD Companies, Inc. and John C. Walden (the “Walden Employment Agreement”), filed as Exhibit 10.38 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, and (2) the First Amendment to the Walden Employment Agreement, filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018. The Company also announced a corporate restructuring and cost savings plan, under which it has identified opportunities to optimize its operations, drive efficiency, and reduce costs. In conjunction with the corporate restructuring and cost savings plan, the Company expects to incur pre-tax restructuring and corporate reorganization costs ranging between approximately $23.5 million and approximately $29.5 million. The restructuring costs will include cash severance payments ranging from approximately $12.0 million to approximately $15.0 million and non-cash stock-based compensation related to the acceleration of certain equity awards ranging from approximately $5.5 million to approximately $6.5 million. Other costs associated with the corporate reorganization and cost savings plan, such as costs to retain key employees, are expected to range from approximately $6.0 million to approximately $8.0 million. |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS (Policies) |
6 Months Ended |
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Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires management to make accounting policy elections, estimates and assumptions that affect a number of reported amounts and related disclosures in the consolidated financial statements. Management bases its estimates on historical experience and assumptions that it believes are reasonable. Actual results could differ from those estimates and assumptions. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2017. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Standards In March 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-05, Income Taxes (Topic 740)—Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, which provides guidance from the SEC allowing for the recognition of provisional amounts in the financial statements for the year ended December 31, 2017 as a result of the U.S. Tax Cuts and Jobs Act (“TCJA”) that was signed into law in December 2017. The guidance allows for a measurement period of up to one year from the enactment date to finalize the accounting related to the TCJA. The Company has applied the guidance in this update in its financial statements for the six months ended June 30, 2018 and will finalize and record any adjustments related to the TCJA within the one year measurement period. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016, and December 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2016-20, respectively (collectively, “Topic 606”). Topic 606 supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of Topic 606 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Company adopted the guidance under this topic as of January 1, 2018 with no material impact to its consolidated financial statements. See Accounting Policies—Revenue Recognition above. The disclosures required by ASC 606 have been included in Note 2—Segment Information. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). The updated guidance enhances the reporting model for financial instruments, and includes amendments to address aspects of recognition, measurement, presentation and disclosure. The Company adopted the guidance under this topic as of January 1, 2018 with no impact to its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update was issued to address the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows by adding or clarifying guidance on eight specific cash flow issues. The Company adopted the guidance under this topic as of January 1, 2018 with no impact to its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This update was issued to provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718 to the modification of terms or conditions of a share-based payment award. The amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards would require an entity to apply modification accounting under Topic 718. The Company adopted the guidance under this topic as of January 1, 2018 with no impact to its consolidated financial statements. Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This update requires the recognition of certain lease assets and lease liabilities on the balance sheet as well as the disclosure of key information about leasing arrangements. The amendments in this ASU require the recognition and measurement of leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients which may be elected by the Company. The amendments in this ASU will be effective for the Company for fiscal years, and the interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). This update seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments, including trade receivables, and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require an entity to replace the incurred loss impairment methodology in current GAAP with a methodology that reflects current expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The amendments will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which guidance is effective, which is a modified-retrospective approach. The Company is currently assessing the impact of this update on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This update seeks to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. For cash flow and net investment hedges as of the adoption date, this ASU requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively. The amendments in this ASU are effective for the Company’s fiscal year beginning after December 31, 2018, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This update allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. This update also requires certain disclosures about stranded tax effects. The amendments in this ASU will be effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This update allows existing employee guidance to apply to non-employee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. The amendments in this ASU will be effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. |
SEGMENT INFORMATION (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of segment revenues to consolidated revenues | Below is a reconciliation of segment revenues to consolidated revenues (in thousands):
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Schedule of intersegment revenues by segment | Intersegment revenues represent amounts charged from one segment to the other for services provided based on order volume at a set rate per order. Intersegment revenues by segment were as follows (in thousands):
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Schedule of revenues for business units | The U.S. Consumer segment is comprised of the FTD.com, ProFlowers, Gourmet Foods, and Personal Creations business units. The revenues for the business units were as follows (in thousands):
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Schedule of geographic revenues to external customers | Geographic revenues from sales to external customers were as follows for the periods presented (in thousands):
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of segment operating income/(loss) to consolidated operating income/(loss) and income/(loss) before income taxes | Below is a reconciliation of segment operating income/(loss) to consolidated operating income/(loss) and income/(loss) before income taxes (in thousands):
|
FINANCING RECEIVABLES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of aging of past due financing receivables | The credit quality and the aging of financing receivables was as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of allowance for credit losses and the recorded investment in financing receivables | The allowance for credit losses and the recorded investment in financing receivables were as follows (in thousands):
|
GOODWILL, INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Tangible and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the net carrying amount of goodwill | The changes in the net carrying amount of goodwill for the six months ended June 30, 2018 were as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of finite-lived intangible assets | Intangible assets are primarily related to the acquisition of the Company by United Online, Inc. in August 2008 and the acquisition of Provide Commerce in December 2014, and consist of the following (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of indefinite-lived intangible assets | Intangible assets are primarily related to the acquisition of the Company by United Online, Inc. in August 2008 and the acquisition of Provide Commerce in December 2014, and consist of the following (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated future intangible assets amortization expense | As of June 30, 2018, estimated future intangible assets amortization expense for each of the next five years and thereafter was as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property and equipment | Property and equipment consisted of the following (in thousands):
|
FINANCING ARRANGEMENTS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in debt balances | The changes in the Company’s debt balances for the six months ended June 30, 2018 were as follows (in thousands):
|
DERIVATIVE INSTRUMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated fair values and notional values of outstanding derivative instruments | The estimated fair values and notional values of outstanding derivative instruments as of June 30, 2018 and December 31, 2017 were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of losses from derivatives, before tax, recognized in other comprehensive loss | The Company recognized the following losses from derivatives, before tax, in other comprehensive income/(loss) (in thousands):
|
FAIR VALUE MEASUREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated fair values of financial assets and derivative instruments measured at fair value on a recurring basis | The following table presents estimated fair values of financial assets and liabilities and derivative instruments that were required to be measured at fair value on a recurring basis (in thousands):
|
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Summary of the carrying amount and estimated fair values for long-term debt | The table below summarizes the carrying amounts and estimated fair values for the Company’s debt (in thousands):
|
INCENTIVE COMPENSATION PLANS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of valuation assumptions | The following weighted average assumptions were used to estimate the fair value of the stock options at the grant date:
|
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Summary of the stock-based compensation incurred | The stock-based compensation expense incurred for all equity plans in the three months ended June 30, 2018 and 2017 and the six months ended June 30, 2018 and 2017 have been included in the condensed consolidated statements of operations as follows (in thousands):
|
EARNINGS/(LOSS) PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings/(loss) per common share (in thousands, except per share amounts):
|
RESTRUCTURING AND OTHER EXIT COSTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restructuring and other exit costs | Restructuring and other exit costs were as follows (in thousands):
|
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental cash flow disclosures | The following table sets forth supplemental cash flow disclosures (in thousands):
|
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS (Details) floral_shop in Thousands, $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2018
country
floral_shop
|
Jan. 01, 2019
USD ($)
|
Oct. 01, 2018
USD ($)
|
May 31, 2018
USD ($)
|
|
Description of business | ||||
Number of floral shops | floral_shop | 35 | |||
Number of countries in which floral shops are located | country | 125 | |||
Revolving Credit Facility | Credit Agreement | ||||
Description of business | ||||
Maximum borrowing capacity | $ 150 | |||
Revolving Credit Facility | Credit Agreement | Forecast | ||||
Description of business | ||||
Maximum borrowing capacity | $ 150 | $ 175 | ||
Interflora, Inc. | ||||
Description of business | ||||
Portion of operation of subsidiary owned by third party (as a percent) | 33.00% |
SEGMENT INFORMATION - Geographic revenues (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Segment information | ||||
Revenues | $ 299,921 | $ 328,146 | $ 618,091 | $ 644,639 |
U.S. | ||||
Segment information | ||||
Revenues | 268,807 | 298,945 | 532,062 | 569,701 |
U.K. | ||||
Segment information | ||||
Revenues | $ 31,114 | $ 29,201 | $ 86,029 | $ 74,938 |
FINANCING RECEIVABLES - Credit quality and aging of past due receivables (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 9,589 | $ 10,571 |
Total | 10,600 | 11,492 |
1 - 150 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 229 | 167 |
151 - 364 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 168 | 213 |
365 - 730 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 234 | 184 |
731 or more days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 380 | $ 357 |
FINANCING RECEIVABLES - Credit losses and Recorded investment (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Allowance for credit losses: | ||
Balance at the beginning of the period | $ 912 | $ 846 |
Provision | 178 | 184 |
Write-offs charged against allowance | (102) | (249) |
Balance at the end of the period | 988 | 781 |
Ending balance collectively evaluated for impairment | 944 | 745 |
Ending balance individually evaluated for impairment | 44 | 36 |
Recorded investments in financing receivables: | ||
Balance collectively evaluated for impairment | 1,093 | 856 |
Balance individually evaluated for impairment | $ 9,507 | $ 11,044 |
FINANCING RECEIVABLES - Impaired receivables (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
---|---|---|---|
Individually evaluated impaired loans | |||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 1,100 | $ 1,000 | |
Allowance related to individually evaluated impaired loans | 44 | $ 36 | |
Maximum | |||
Individually evaluated impaired loans | |||
Recorded investment in individually evaluated impaired loans | 100 | 100 | |
Unpaid principal balance related to individually evaluated impaired loans | 100 | 100 | |
Allowance related to individually evaluated impaired loans | $ 100 | $ 100 |
FINANCING RECEIVABLES - Impaired receivables - Average recorded investment and Interest income (Details) - Maximum - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Individually evaluated impaired loans | ||
Average recorded investment in individually evaluated impaired loans | $ 0.1 | $ 0.1 |
Interest income recognized on impaired loans | $ 0.1 | $ 0.1 |
TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Qurate Retail, Inc. | FTD Common Stock [Member] | ||||
Transactions with related parties | ||||
Ownership percentage | 36.50% | 36.50% | ||
Interflora | I.S. Group | ||||
Transactions with related parties | ||||
Ownership percentage | 20.40% | 20.40% | ||
Amount of investment in related party | $ 1.7 | $ 1.7 | $ 1.7 | |
I.S. Group | Interflora | ||||
Transactions with related parties | ||||
Revenues from related party | 0.4 | 1.3 | $ 1.1 | |
Cost of revenues related to products purchased | $ 0.1 | $ 0.2 | $ 0.1 |
TRANSACTIONS WITH RELATED PARTIES - Receivable and Payable (Details) - I.S. Group - Interflora - USD ($) $ in Millions |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Transactions with related parties | ||
Amounts due from related party | $ 0.2 | $ 0.3 |
Amounts payable to related party | $ 0.8 | $ 1.0 |
GOODWILL, INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS - Goodwill, Narrative (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
reportable_segment
|
Jun. 30, 2017
reportable_segment
|
Dec. 31, 2017
USD ($)
reportable_segment
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2008
USD ($)
|
|
Goodwill [Line Items] | |||||||
Number of reportable segments | reportable_segment | 3 | 4 | 4 | ||||
Impairment of goodwill | $ 62,459 | $ 196,700 | $ 84,000 | $ 85,000 | $ 116,300 | ||
Goodwill impairment | $ 544,500 | 544,500 | |||||
Impairment charges | 3,600 | 22,000 | |||||
Goodwill | 211,978 | 211,978 | 277,041 | ||||
ProFlowers/Gourmet Foods | |||||||
Goodwill [Line Items] | |||||||
Impairment charges | $ 1,200 | $ 3,600 | |||||
Florist | |||||||
Goodwill [Line Items] | |||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 6.00% | 6.00% | |||||
Goodwill | $ 90,651 | $ 90,651 | 90,651 | ||||
U.S. Consumer | |||||||
Goodwill [Line Items] | |||||||
Impairment of goodwill | 62,459 | ||||||
Goodwill | 43,105 | 43,105 | $ 106,356 | ||||
U.S. Consumer | FTD.com | |||||||
Goodwill [Line Items] | |||||||
Impairment of goodwill | 35,200 | ||||||
Goodwill | 29,300 | 29,300 | |||||
U.S. Consumer | ProFlowers/Gourmet Foods | |||||||
Goodwill [Line Items] | |||||||
Impairment of goodwill | 14,800 | ||||||
U.S. Consumer | Personal Creations | |||||||
Goodwill [Line Items] | |||||||
Impairment of goodwill | 12,500 | ||||||
Goodwill | $ 13,800 | $ 13,800 |
GOODWILL, INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS - Schedule of Intangible Assets (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Indefinite-lived intangibles | |||||
Amortization expense | $ 1,495,000 | $ 3,819,000 | $ 2,997,000 | $ 7,639,000 | |
Intangible assets | |||||
Gross Value | 386,612,000 | 386,612,000 | $ 461,160,000 | ||
Accumulated Amortization | (281,654,000) | (281,654,000) | (279,195,000) | ||
Net | 104,958,000 | 104,958,000 | 181,965,000 | ||
Trademarks and trade names | |||||
Indefinite-lived intangibles | |||||
Indefinite-lived | 91,264,000 | 91,264,000 | 112,518,000 | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 20,400,000 | 38,300,000 | |||
Amortization expense | 0 | ||||
Complete technology | |||||
Intangible assets | |||||
Gross Value | 60,584,000 | 60,584,000 | 61,274,000 | ||
Accumulated Amortization | (60,584,000) | (60,584,000) | (60,653,000) | ||
Net | 0 | 0 | 621,000 | ||
Impairment of intangible assets, finite-lived | 561,000 | 16,335,000 | |||
Customer contracts and relationships | |||||
Intangible assets | |||||
Gross Value | 193,298,000 | 193,298,000 | 193,775,000 | ||
Accumulated Amortization | (193,298,000) | (193,298,000) | (193,667,000) | ||
Net | 0 | 0 | 108,000 | ||
Impairment of intangible assets, finite-lived | 90,000 | 0 | |||
Trademarks and trade names | |||||
Intangible assets | |||||
Gross Value | 41,466,000 | 41,466,000 | 93,593,000 | ||
Accumulated Amortization | (27,772,000) | (27,772,000) | (24,875,000) | ||
Net | 13,694,000 | $ 13,694,000 | 68,718,000 | ||
Impairment of intangible assets, finite-lived | $ 52,108,000 | $ 27,000,000 |
GOODWILL, INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS - Intangible Assets Future Amortization (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
Estimated future intangible assets amortization expense | |
2018 (remainder of the year) | $ 628 |
2019 | 1,256 |
2020 | 1,248 |
2021 | 1,244 |
2022 | 1,188 |
Thereafter | 8,130 |
Total | $ 13,694 |
GOODWILL, INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS - Other Long-Lived Assets, Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Goodwill Tangible and Intangible Assets Disclosure [Abstract] | ||||
Depreciation | $ 2.6 | $ 5.5 | $ 5.2 | $ 10.9 |
FINANCING ARRANGEMENTS - Change in the Company's debt balances, net of discounts (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2014 |
Dec. 31, 2017 |
|
Changes in debt balances, net of discounts | ||||
Long-term debt, gross | $ 195,000 | $ 192,000 | ||
Draw down of debt | 185,000 | $ 70,000 | ||
Repayments of Debt | (182,000) | $ (85,000) | ||
Debt Issuance Costs | (5,310) | (2,334) | ||
Total Debt, Net of Debt Issuance Costs | 189,690 | 189,666 | ||
Term Loan | Credit Agreement | ||||
Changes in debt balances, net of discounts | ||||
Long-term debt, gross | 130,000 | 140,000 | ||
Draw down of debt | 0 | |||
Repayments of Debt | (10,000) | |||
Revolving credit facility | Credit Agreement | ||||
Changes in debt balances, net of discounts | ||||
Long-term debt, gross | 65,000 | $ 52,000 | ||
Draw down of debt | 185,000 | $ 120,000 | ||
Repayments of Debt | $ (172,000) |
DERIVATIVE INSTRUMENTS - Fair value and notional amounts (Details) - Derivatives designated as hedging instruments - Cash flow hedging instruments - Interest rate caps - USD ($) $ in Thousands |
1 Months Ended | ||
---|---|---|---|
Mar. 31, 2012 |
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Estimated fair values and notional values of outstanding derivative instruments | |||
Purchase of derivative instruments | $ 1,900 | ||
Notional Value of Derivative Instruments | $ 130,000 | ||
Other assets. | |||
Estimated fair values and notional values of outstanding derivative instruments | |||
Estimated Fair Value of Derivative Instruments | $ 0 | $ 0 | |
Notional Value of Derivative Instruments | $ 0 | $ 130,000 |
DERIVATIVE INSTRUMENTS - Cash flow hedge disclosures (Details) - Derivatives designated as hedging instruments - Cash flow hedging instruments - Interest rate caps - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Effect of derivative instruments | |||||
Gains (losses) from derivatives, before tax, recognized in other comprehensive income (loss) | $ 0 | $ 0 | $ 0 | $ (1) | |
Effective loss portion, before tax effect, of the derivative instruments | $ 300 | ||||
Reclassifications out of accumulated other comprehensive loss | |||||
Effect of derivative instruments | |||||
Gains (losses) from derivatives, before tax, recognized in other comprehensive income (loss) | $ (100) | $ (300) | $ (300) |
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets: | ||
Cash equivalents | $ 3,584 | $ 2,705 |
Total | 3,584 | 2,705 |
Liabilities: | ||
Non-qualified deferred compensation plan | 927 | 1,228 |
Total | 927 | 1,228 |
Level 1 | ||
Assets: | ||
Cash equivalents | 3,584 | 2,705 |
Total | 3,584 | 2,705 |
Liabilities: | ||
Non-qualified deferred compensation plan | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Non-qualified deferred compensation plan | 927 | 1,228 |
Total | $ 927 | $ 1,228 |
FAIR VALUE MEASUREMENTS - Long Term Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets measured at fair value | ||
Long-term debt | $ 189,690 | $ 189,666 |
Carrying Amount | ||
Assets measured at fair value | ||
Long-term debt | 195,000 | 192,000 |
Level 2 | Estimated Fair Value | ||
Assets measured at fair value | ||
Long-term debt outstanding, including current portion | $ 195,000 | $ 192,000 |
STOCKHOLDERS' EQUITY (Details) - RSUs shares in Millions, $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
shares
| |
Restricted Stock Units Vesting and Tax Withholdings | |
Awards vested during the period (in shares) | 0.3 |
Shares withheld to pay employee tax withholding | 0.1 |
Value of shares withheld to pay employee tax withholding | $ | $ 0.5 |
INCENTIVE COMPENSATION PLANS - Schedule of valuation assumptions (Details) - Amended and Restated 2013 Plan - Stock Options |
6 Months Ended |
---|---|
Jun. 30, 2018
Rate
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.50% |
Expected term (in years) | 6 years 77 days |
Dividend yield | 0.00% |
Expected volatility | 37.70% |
INCENTIVE COMPENSATION PLANS - Allocation of stock-based compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Stock-Based Compensation | ||||
Total stock-based compensation expense | $ 2,604 | $ 3,529 | $ 5,410 | $ 5,870 |
Cost of revenues | ||||
Stock-Based Compensation | ||||
Total stock-based compensation expense | 48 | 63 | 105 | 134 |
Sales and marketing | ||||
Stock-Based Compensation | ||||
Total stock-based compensation expense | 933 | 1,615 | 1,865 | 2,330 |
General and administrative | ||||
Stock-Based Compensation | ||||
Total stock-based compensation expense | $ 1,623 | $ 1,851 | $ 3,440 | $ 3,406 |
INCOME TAXES - Provision (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Income before income taxes | ||||
Provision for/(benefit from) income taxes | $ (13,261) | $ 5,816 | $ (13,592) | $ 12,335 |
Income (loss) before income taxes | (131,346) | $ 15,532 | (138,273) | 31,074 |
Valuation allowance for state net operating loss carryforwards | $ 1,600 | 1,600 | ||
Accounting Standards Update 2016-09, Statutory Tax Withholding Component [Member] | ||||
Income before income taxes | ||||
Share-based compensation, excess tax expense, amount | $ (2,600) | $ (1,400) |
EARNINGS/(LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Numerator: | ||||
Net income/(loss) | $ (118,085) | $ 9,716 | $ (124,681) | $ 18,739 |
Income allocated to participating securities | 0 | (228) | 0 | (434) |
Net income/(loss) attributable to common stockholders | $ (118,085) | $ 9,488 | $ (124,681) | $ 18,305 |
Denominator: | ||||
Basic average common shares outstanding | 27,785 | 27,452 | 27,749 | 27,415 |
Add: Dilutive effect of securities | 0 | 0 | 0 | 34 |
Diluted average common shares outstanding | 27,785 | 27,452 | 27,749 | 27,449 |
Basic earnings/(loss) per share (in dollars per share) | $ (4.25) | $ 0.35 | $ (4.49) | $ 0.67 |
Diluted earning/(loss) per share (in dollars per share) | $ (4.25) | $ 0.35 | $ (4.49) | $ 0.67 |
Weighted-average antidilutive shares | 4,500 | 4,100 | 3,900 | 3,500 |
RESTRUCTURING AND OTHER EXIT COSTS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Changes in restructuring and other exit costs | ||||
Accrued restructuring at the beginning of the period | $ 377 | |||
Charges | $ 0 | $ 136 | 0 | $ 944 |
Cash paid | (340) | |||
Other – non-cash | (12) | |||
Accrued restructuring at the end of the period | 25 | 25 | ||
Employee Termination Costs | ||||
Changes in restructuring and other exit costs | ||||
Accrued restructuring at the beginning of the period | 184 | |||
Charges | 0 | |||
Cash paid | (172) | |||
Other – non-cash | (12) | |||
Accrued restructuring at the end of the period | 0 | 0 | ||
Facility Closure Costs | ||||
Changes in restructuring and other exit costs | ||||
Accrued restructuring at the beginning of the period | 193 | |||
Charges | 0 | |||
Cash paid | (168) | |||
Other – non-cash | 0 | |||
Accrued restructuring at the end of the period | $ 25 | $ 25 |
CONTINGENCIES - Legal Matters (Details) $ in Millions |
May 08, 2017
stateattorneygeneral
|
Dec. 14, 2011
claim_filed
|
Aug. 19, 2009 |
Jun. 30, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
---|---|---|---|---|---|
Contingencies-legal matters | |||||
Reserve for estimated losses related to certain of the matters | $ | $ 2.8 | $ 2.8 | |||
Provide Commerce | |||||
Contingencies-legal matters | |||||
Period for consolidation of cases filed since the original August 19, 2009 lawsuit | 3 years | ||||
Number of claims | claim_filed | 10 | ||||
number of state attorneys filing an amicus brief | stateattorneygeneral | 13 |
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Supplemental cash flow disclosures: | ||
Cash paid for interest | $ 5,733 | $ 4,074 |
Cash paid for income taxes, net | 3,781 | $ 10,517 |
Purchases of property and equipment included in accounts payable and other liabilities | $ 6,300 |
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