Company Increases Full-Year 2019 Cost Savings
FTD Companies, Inc. (Nasdaq: FTD) (“FTD” or the “Company”), a
premier floral and gifting company, today announced an expansion of
its corporate restructuring and cost savings plan
initiatives. The Company has identified incremental cost
savings opportunities and now expects to generate approximately $32
million to $37 million in cost savings in 2019. Previously,
FTD had announced expectations of approximately $18 million to $23
million in 2019 cost savings.
Scott Levin, FTD’s Interim President and Chief Executive
Officer, commented, “Our team continues to work diligently on our
corporate restructuring and cost savings plan and we are pleased to
have identified incremental opportunities to optimize our
operations, drive efficiency, and reduce costs. These additional
cost savings are primarily a result of evaluating, consolidating
and renegotiating supplier and vendor relationships. We remain
intently focused on stabilizing and driving improvement in our
financial performance as we work to create value for
stockholders.”
FTD has also updated its estimate of the pre-tax restructuring
and corporate reorganization costs which it expects to incur in the
second half of 2018 in connection with the implementation of its
corporate restructuring and cost savings plan to approximately $26
million to $30 million. The previous estimate was $24 million
to $30 million. The Company still expects approximately $5
million to $7 million of those costs will be non-cash.
2018 Business OutlookFTD is revising the
consolidated revenues outlook that it previously provided on July
19, 2018 and reiterating its expected adjusted EBITDA outlook for
the full year ending December 31, 2018. The annual outlook reflects
the Company’s year-to-date results, as well as the Company’s
expectations for the rest of the year, including savings from the
corporate restructuring and cost savings plan. The Company expects
the following for full-year 2018:
- Consolidated revenues of approximately $1.02 billion to $1.03
billion compared to prior expectations of $1.03 billion to $1.04
billion;
- Adjusted EBITDA of $37 million to $41 million; and
- Capital expenditures of $35 million to $38 million compared to
prior expectations of $35 million to $40 million.
In connection with the outlook provided above, please note that
the seasonality of the Company’s business impacts the quarterly
pattern of its profitability and cash flows from operations.
The Company is not providing 2018 guidance for net income/(loss)
the GAAP measure most directly comparable to Adjusted EBITDA, and
similarly cannot provide a reconciliation between its forecasted
Adjusted EBITDA and net income/(loss) metrics without unreasonable
effort due to the unavailability of reliable estimates for certain
items, including restructuring and other exit costs, corporate
reorganization costs, transaction-related costs, impairments of
goodwill, intangible assets, and other long-lived assets, and
discrete tax items. These items may vary significantly between
periods and could materially impact future financial results.
The Company expects to report financial results for the third
quarter ended September 30, 2018 in early to mid-November 2018.
About FTD Companies, Inc.
FTD Companies, Inc. is a premier floral and gifting company.
Through our diversified family of brands, we provide floral,
specialty foods, gifts, and related products to consumers primarily
in the United States and the United Kingdom. We also provide floral
products and services to retail florists and other retail locations
throughout these same geographies. FTD has been delivering flowers
since 1910, and the highly-recognized FTD® and Interflora® brands
are supported by the iconic Mercury Man logo®, which is displayed
in approximately 35,000 floral shops in over 125 countries. In
addition to FTD and Interflora, our diversified portfolio of brands
includes the following trademarks: ProFlowers®, ProPlants®, Shari’s
Berries®, Personal Creations®, RedEnvelope®, Flying Flowers®, and
Gifts.com™. FTD Companies, Inc. is headquartered in Downers Grove,
Ill. For more information, please visit www.ftdcompanies.com.
Cautionary Information Regarding Forward-Looking
Statements
This release contains certain forward-looking statements within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, as amended, based on our
current expectations, estimates, and projections about our
operations, industry, financial condition, performance, results of
operations, and liquidity. Statements containing words such as
“may,” “believe,” “anticipate,” “expect,” “intend,” “plan,”
“project,” “projections,” “business outlook,” “estimate,” or
similar expressions constitute forward-looking statements. These
forward-looking statements include, but are not limited to,
statements regarding the exploration of strategic alternatives, the
strategic and financial evaluation of the Company’s business, the
Company’s corporate restructuring and cost savings plan and other
strategies, and future financial performance, including 2018
financial outlooks discussed herein. Potential factors that could
affect these forward-looking statements include, among others,
uncertainties associated with being able to identify, evaluate, or
complete any strategic alternative or strategic transaction; the
impact of the announcement of the Company’s review of strategic
alternatives, as well as any strategic alternative or strategic
transaction that may be pursued, on the Company’s business,
including its financial and operating results and its employees,
suppliers, and customers; the Company’s ability to implement and
realize anticipated benefits from its corporate restructuring and
cost savings plan and other initiatives; the Company’s ability to
repay, refinance, or restructure its outstanding debt; and the
other factors disclosed in the Company’s most recent Annual Report
on Form 10-K and the Company’s other filings with the Securities
and Exchange Commission (www.sec.gov), as updated from time to time
in our subsequent filings with the SEC, including, without
limitation, information under the captions “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” and
“Risk Factors.” Readers are cautioned not to place undue reliance
on these forward-looking statements, which reflect the Company’s
analysis only as of the date hereof. Such forward-looking
statements are not guarantees of future performance or results and
involve risks and uncertainties that may cause actual performance
and results to differ materially from those predicted. Except as
required by law, we undertake no obligation to publicly release the
results of any revision to these forward-looking statements that
may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
Non-GAAP Measures
To supplement the Company’s consolidated financial statements
presented in accordance with generally accepted accounting
principles (“GAAP”), the Company uses Adjusted EBITDA as a measure
of certain components of financial performance. The Company’s
definition of Adjusted EBITDA, as set forth below, may be modified
from time to time.
Management believes that Adjusted EBITDA is an important measure
of operating performance because it allows for a period-to-period
comparison of the Company’s operating performance by removing the
impact of the Company’s capital structure (interest expense on
outstanding debt), asset base (depreciation, amortization, and
impairment charges), tax consequences, stock-based compensation and
certain other items that are not considered reflective of the
Company’s core operations. The Company further emphasizes the
importance of Adjusted EBITDA as an operating performance measure
by utilizing the Adjusted EBITDA measure as a basis for determining
certain incentive compensation targets for certain members of the
Company’s management. The Adjusted EBITDA measure also is used as a
performance measure under the Company’s senior secured credit
facility and includes adjustments such as the items defined above
and other further adjustments, which are defined in the senior
secured credit facility.
Management believes that presenting this non-GAAP financial
measure provides additional information to facilitate comparison of
the Company’s historical operating results and trends in its
underlying operating results and provides additional transparency
on how the Company evaluates its businesses.
In addition to the use of this non-GAAP measure by management
for the purposes outlined above, the Company believes Adjusted
EBITDA is a measure widely used by securities analysts, investors,
and others to evaluate the financial performance of the Company and
its competitors.
Adjusted EBITDA is not determined in accordance with GAAP and
should be considered in addition to, not as a substitute for, or
superior to financial measures determined in accordance with GAAP.
A limitation associated with the use of Adjusted EBITDA is that it
does not reflect depreciation and amortization expense for various
long-lived assets, impairment charges, interest expense, income
taxes, and other items that have been and will be incurred. Each of
these items should also be considered in the overall evaluation of
the Company’s results. In addition, Adjusted EBITDA does not
reflect capital expenditures and other investing activities. An
additional limitation associated with Adjusted EBITDA is that the
measure does not include stock-based compensation expenses related
to the Company’s workforce. A further limitation associated with
the use of this non-GAAP financial measure is that it does not
reflect expenses or gains that are not considered reflective of the
Company’s core operations. Management compensates for these
limitations by providing the relevant disclosure of its
depreciation and amortization, impairment charges, interest and
income tax expenses, capital expenditures, stock-based
compensation, and other items within its financial press releases
and SEC filings, all of which should be considered when evaluating
the Company’s performance.
A further limitation associated with the use of this measure is
that the term “Adjusted EBITDA” does not have a standardized
meaning. Therefore, other companies may use the same or a similarly
named measure but exclude different items or use different
computations, which may not provide investors a comparable view of
the Company’s performance in relation to other companies.
Management compensates for this limitation by presenting the most
comparable GAAP measure: net income/(loss), directly ahead of
Adjusted EBITDA; within this and other financial press releases and
by providing reconciliations that show and describe the adjustments
made. In addition, many of the adjustments to the Company’s GAAP
financial measures reflect the exclusion of items that are
recurring in nature and will be reflected in the Company’s
financial results for the foreseeable future.
Contact:Katie Turner646-277-1228ir@ftdi.com
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