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FTD Group, Inc. Reports Third Quarter Fiscal Year 2007 Results

-- Consolidated Revenues Increased to $182.9 Million from $128.6 Million -- Strong Operating Income Margin In All Segments -- Third Quarter Diluted EPS Increased to $0.32 (Which Included $0.02 of Costs Related to the Secondary Offering) versus Diluted EPS of $0.26 in the Prior Year Quarter -- Fiscal Year 2007 Targets for EBITDA (Excluding Other Expense (Income), Net) and Diluted EPS Increased to $90 Million and $0.98 (Including $0.02 of Other Expense Related to the Secondary Offering), Respectively

DOWNERS GROVE, IL. – April 30, 2007 – FTD Group, Inc. (NYSE:FTD), a leading provider of floral related products and services, today announced third quarter fiscal year 2007 financial results for the period ended March 31, 2007.

THIRD QUARTER FISCAL YEAR 2007 RESULTS

Third quarter fiscal year 2007 consolidated revenue grew $54.3 million, or 42.2%, to $182.9 million, compared to revenue of $128.6 million for the same period of fiscal year 2006.

Resulting net income for the third quarter of fiscal year 2007 was $9.6 million, or $0.32 per diluted share, compared to net income of $7.4 million, or $0.26 per diluted share, in the prior year quarter.

Net income for the third quarter of fiscal year 2007 includes $0.5 million, after tax, of expense related to the costs FTD incurred during the secondary offering of 6,900,000 shares by affiliates of Leonard Green & Partners, L.P. ("LGP") and certain members of management. The offering expenses are recorded in other expense (income), net.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the third quarter of fiscal year 2007 was $25.6 million compared to EBITDA of $19.6 million for the same period of the prior fiscal year. Third quarter fiscal 2007 EBITDA, excluding other expense (income), net, was $26.1 million, which represents growth of $6.6 million over the same period of the prior fiscal year. Fiscal 2007 other expense (income), net, of $0.6 million is primarily related to secondary offering costs, net of foreign currency gains recognized during the third quarter of fiscal year 2007.

A table reconciling net income to EBITDA (including adjustments) is included with the attached consolidated financial statements. The Company believes EBITDA (including adjustments) provides useful supplemental information related to the Company's operations and results.

Domestic Consumer Segment

The Domestic Consumer Segment achieved revenues of $80.2 million in the third quarter of fiscal year 2007, compared to revenues of $75.7 million in the same period of fiscal year 2006, representing a 6.0% increase. Growth was driven by a 4.1% increase in order volume. Third quarter operating income in the Domestic Consumer Segment was $4.2 million, or 5.3% of Domestic Consumer Segment revenue, compared to $2.9 million in the prior year quarter, or 3.8% of Domestic Consumer Segment revenue. Operating margins during the period strengthened due to management's focus on profitable revenue growth.

Domestic Consumer orders during the third quarter of fiscal year 2007 totaled 1,243,000 compared to 1,194,000 orders in the same period of fiscal year 2006. Average order value increased to $63.04 in the current quarter from $62.18 in the prior year's quarter. The percentage of Internet orders increased slightly to 91.6% from 91.3% in the third quarter of fiscal year 2006.

Domestic Florist Segment

The Domestic Florist Segment achieved revenues of $49.1 million in the third quarter of fiscal year 2007, compared to revenues of $52.9 million in the same period of the prior fiscal year. The decline in Florist Segment revenues was due to decreased clearinghouse order volume, a decrease in fresh flower sales resulting from one large customer contract in the prior year that was not renewed in the current year and reduced container sales. Third quarter fiscal year 2007 operating income for the Domestic Florist Segment was $16.4 million, or 33.3% of Domestic Florist Segment revenue, compared to $17.3 million in the prior year quarter, or 32.7% of Domestic Florist Segment revenue. The margin improvement in the current year was partially related to the revenue decreases described above, as these are lower margin product lines.

International Segment

For the third quarter of fiscal year 2007, the International Segment, comprised of the Interflora business which was acquired in July 2006, achieved revenues of $53.6 million and operating income of $5.3 million, or 9.9% of revenues. The International Segment experienced strong Valentine's Day and Mother's Day holiday seasons. Mother's Day in the U.K. was March 18, 2007. Consumer order volume in the International Segment totaled 665,000, up 12.9% over Interflora's orders for the same period of the prior fiscal year. Average order value in the International Segment was $66.87 for the quarter and Internet orders comprised 73.4% of the order volume.

BALANCE SHEET AND OTHER HIGHLIGHTS

As of March 31, 2007 the Company's cash and cash equivalents totaled $41.4 million with $37.4 million of operating cash flows generated during the nine-month period ended March 31, 2007. The Company's debt balance totaled $336.9 million, including notes payable of $24.5 million related to the Interflora acquisition, down from $344.2 million as of December 31, 2006. At the time of the acquisition of Interflora, the Company entered into a new senior secured credit facility consisting of a $150 million term loan and a $75 million revolving credit facility. As of March 31, 2007, the Company had $49 million available under its revolving credit facility. Capital expenditures for the quarter ended March 31, 2007 were $1.2 million and were primarily related to continued technology improvements. In addition, the Company paid its first ever quarterly cash dividend on April 2, 2007 to shareholders of record on March 19, 2007, in an amount totaling $4.7 million.

OUTLOOK

"Our continued focus on profitability allows us to increase our EBITDA and diluted EPS targets," stated Michael J. Soenen, President and Chief Executive Officer of FTD. "Additionally, we are reducing our revenue target for the year to reflect uncertainty around selected less profitable florist business product lines and the Mother's Day holiday," concluded Soenen.

For the full fiscal year 2007, the Company is updating its annual revenue target for 2007 to $615 million from $630 million in revenue, annual net income target to $29.0 million from $28.2 million, with targeted diluted earnings per share of $0.98, which includes $0.02 of expense related to the secondary offering, from $0.96 and targeted EBITDA (excluding other expense (income), net) to $90 million from $89 million. As previously announced, net income, diluted EPS and EBITDA targets include approximately $3 million of expense related to stock compensation in accordance with Statement of Financial Accounting Standards No. 123R, Share-Based Payment, and a deferred compensation plan related to Interflora. The EBITDA target excludes other expense (income), net, which is expected to primarily relate to foreign currency related gains and losses as well as expenses related to the secondary offering. The net income and diluted EPS targets are presented on a GAAP basis.

CONFERENCE CALL

A conference call has been scheduled for April 30, 2007 at 11:00 a.m., ET, to review results for the third quarter of fiscal year 2007. To listen to the call over the Internet, go to the investor relations portion of the Company's Web site, www.ftd.com. Please allow at least 15 minutes to register, download and install any necessary audio software. To listen to the call by phone dial (877) 381-6199 for North American callers or (706) 679-4384 for International callers; mention Conference ID #21337004. A replay of the conference call will be available through May 14, 2007 beginning one hour after the completion of the live call by phone at (800) 633-8284 for North American callers or (402) 977-9140 for International callers or on the Web at www.ftd.com. The conference call contains time-sensitive information that is accurate only as of April 30, 2007, the date of the live broadcast. The call is the property of FTD Group, Inc. Any redistribution, retransmission or rebroadcast of the conference call in any form without the express written consent of FTD Group, Inc. is strictly prohibited.

ABOUT FTD GROUP, INC.

FTD Group, Inc. is a leading provider of floral related products and services to consumers and retail florists, as well as other retail locations offering floral products, in the U.S., Canada, the U.K. and the Republic of Ireland. The business utilizes the highly recognized FTD and Interflora brands, both supported by the Mercury Man logo, which is displayed in approximately 45,000 floral shops worldwide. The consumer businesses operate primarily through the www.ftd.com Web site in the U.S. and Canada and the www.interflora.co.uk Web site in the U.K. and are complemented by the florist businesses which provide products and services to the Company's independent members.

FORWARD-LOOKING STATEMENTS

This press release contains various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include statements regarding the Company's outlook, anticipated revenue growth and profitability; anticipated benefits of its acquisition of Interflora, anticipated benefits of investments in new products, programs and offerings and opportunities and trends within both the domestic and international floral businesses, including opportunities to expand these businesses and capitalize on growth opportunities or increase penetration of service offerings. The international business reflects the operations of Interflora Holdings Limited. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the Company's industry. Investors are cautioned that actual results could differ from those contained in any forward-looking statements as a result of: the Company's ability to acquire and retain FTD and Interflora members and continued recognition by members of the value of the Company's products and services; the acceptance by members of new or modified service offerings recently introduced; the Company's ability to sell additional products and services to FTD and Interflora members; the Company's ability to expand existing marketing partnerships and secure new marketing partners within the domestic and international consumer businesses; the success of the Company's marketing campaigns; the ability to retain customers and maintain average order value within the domestic and international consumer businesses; the Company's performance during key holiday selling seasons such as Christmas, Valentine's Day and Mother's Day; the existence of failures in the Company's computer systems; competition from existing and potential new competitors; levels of discretionary consumer purchases of flowers and specialty gifts; the Company's ability to manage or reduce its level of expenses within both the domestic and international businesses; actual growth rates for the markets in which the Company competes compared with forecasted growth rates; the Company's ability to increase capacity and introduce enhancements to its Web sites; and the Company's ability to integrate Interflora and additional partners or acquisitions, if any are identified. These factors, along with other potential risks and uncertainties, are discussed in the Company's reports and other documents filed with the Securities and Exchange Commission. The Company expressly disclaims any obligation to update its forward-looking statements.

Financial statements follow...   

				   FTD GROUP, INC.
		    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       		      (Unaudited)
             	        (In thousands, except per share amounts)
                               Three Months Ended   Nine Months Ended
                                    March 31,           March 31,
                               ------------------- -------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------
Revenues:
  Consumer segment             $ 80,216  $ 75,680  $197,084  $180,521
  Florist segment                49,123    52,905   137,522   143,118
  International segment          53,560         -   108,604         -
                               --------- --------- --------- ---------
    Total revenues              182,899   128,585   443,210   323,639
Costs of goods sold and
 services provided:
  Consumer segment               56,980    55,409   140,467   132,264
  Florist segment                16,639    18,021    44,167    46,961
  International segment          37,491         -    75,203         -
  Corporate                         493       533     1,507     1,718
                               --------- --------- --------- ---------
    Total costs of goods sold
     and services provided      111,603    73,963   261,344   180,943
Gross profit:
  Consumer segment               23,236    20,271    56,617    48,257
  Florist segment                32,484    34,884    93,355    96,157
  International segment          16,069         -    33,401         -
  Corporate                        (493)     (533)   (1,507)   (1,718)
                               --------- --------- --------- ---------
    Total gross profit           71,296    54,622   181,866   142,696
Advertising and selling:
  Consumer segment               11,346    10,401    25,087    22,768
  Florist segment                11,793    12,342    35,042    39,516
  International segment           4,209         -     8,638         -
                               --------- --------- --------- ---------
    Total advertising and
     selling                     27,348    22,743    68,767    62,284
General and administrative:
  Consumer segment                6,525     6,146    16,750    13,622
  Florist segment                 2,052     2,377     6,348     5,607
  International segment           6,547         -    15,549         -
  Corporate                       6,374     6,525    19,615    19,215
                               --------- --------- --------- ---------
    Total general and
     administrative              21,498    15,048    58,262    38,444
Operating income (loss) before
 corporate allocations:
  Consumer segment                5,365     3,724    14,780    11,867
  Florist segment                18,639    20,165    51,965    51,034
  International segment           5,313         -     9,214         -
  Corporate                      (6,867)   (7,058)  (21,122)  (20,933)
                               --------- --------- --------- ---------
    Total operating income
     before corporate
     allocations                 22,450    16,831    54,837    41,968
                               --------- --------- --------- ---------
Corporate Allocations:
  Consumer segment                1,151       849     3,021     2,451
  Florist segment                 2,284     2,868     7,007     8,364
  International segment               -         -         -         -
  Corporate                      (3,435)   (3,717)  (10,028)  (10,815)
                               --------- --------- --------- ---------
    Total corporate
     allocations                      -         -         -         -
Income (loss) from operations:
  Consumer segment                4,214     2,875    11,759     9,416
  Florist segment                16,355    17,297    44,958    42,670
  International segment           5,313         -     9,214         -
  Corporate                      (3,432)   (3,341)  (11,094)  (10,118)
                               --------- --------- --------- ---------
    Total income from
     operations                  22,450    16,831    54,837    41,968
                               --------- --------- --------- ---------
Other income and expenses:
  Interest income                  (489)     (233)   (1,126)     (528)
  Interest expense                6,444     4,829    21,679    14,596
  Other expense (income), net       570      (118)     (725)     (206)
                               --------- --------- --------- ---------
    Total other expenses          6,525     4,478    19,828    13,862
                               --------- --------- --------- ---------
    Income before income tax     15,925    12,353    35,009    28,106
Income tax expense                6,310     4,932    13,844    11,357
                               --------- --------- --------- ---------
    Net income                 $  9,615  $  7,421  $ 21,165  $ 16,749
                               ========= ========= ========= =========
Net income per common share -
 basic                         $   0.34  $   0.26  $   0.75  $   0.58
                               ========= ========= ========= =========
Net income per common share -
 diluted                       $   0.32  $   0.26  $   0.72  $   0.56
                               ========= ========= ========= =========
Weighted average common shares
 outstanding - basic             28,462    28,111    28,343    28,989
                               ========= ========= ========= =========
Weighted average common shares
 outstanding - diluted           29,827    29,031    29,510    30,025
                               ========= ========= ========= =========
                           FTD GROUP, INC.
                CONDENSED CONSOLIDATED BALANCE SHEETS
                 (In thousands, except share amounts)
                                                March 31,   June 30,
                                                    2007       2006
                                                ----------- ----------
                    ASSETS                      (Unaudited)
-----------------------------------------------
Current Assets:
  Cash and cash equivalents                     $   41,379  $  10,954
  Accounts receivable, less allowance for
   doubtful accounts of $5,047 at March 31,
   2007 and $4,437 at June 30, 2006                 47,649     26,044
  Inventories, net                                   3,998      3,542
  Other current assets                               9,812      5,985
                                                ----------- ----------
    Total current assets                           102,838     46,525
Property and equipment:
  Property and equipment                            34,268     25,265
  Less accumulated depreciation                      9,702      6,051
                                                ----------- ----------
    Property and equipment, net                     24,566     19,214
Other assets:
  Computer software, net                            13,509     10,577
  Other noncurrent assets                           21,172     21,405
  Other intangible assets, less accumulated
   amortization of $8,345 at March 31, 2007 and
   $5,993 at June 30, 2006                          14,228     14,780
  Trademark                                        186,504    121,577
  Goodwill                                         416,567    336,659
                                                ----------- ----------
    Total other assets                             651,980    504,998
                                                ----------- ----------
    Total assets                                $  779,384  $ 570,737
                                                =========== ==========
     LIABILITIES AND STOCKHOLDERS' EQUITY
-----------------------------------------------
Current liabilities:
  Accounts payable                              $   69,700  $  45,273
  Notes payable                                     22,829          -
  Other accrued liabilities                         32,054     24,083
  Current maturities of long-term debt               1,430      1,125
  Dividends payable                                  4,699          -
                                                ----------- ----------
    Total current liabilities                      130,712     70,481
Senior secured credit facility                     140,820     48,875
Senior subordinated notes                          170,117    170,117
Post-retirement benefits, accrued pension
 obligations and other liabilities                   5,066      2,368
Deferred income taxes                               83,116     61,160
Stockholders' equity:
  Common stock: $0.01 par value, 75,000,000
   shares authorized; 29,482,182 shares issued
   as of March 31, 2007 and June 30, 2006              295        295
  Additional paid-in capital                       232,865    233,362
  Retained earnings (accumulated deficit)           14,912     (1,554)
  Accumulated other comprehensive income             6,675        200
  Treasury stock, at cost, 541,447 shares as of
   March 31, 2007 and 1,504,480 shares as of
   June 30, 2006                                    (5,194)   (14,567)
                                                ----------- ----------
    Total stockholders' equity                     249,553    217,736
                                                ----------- ----------
    Total liabilities and stockholders' equity  $  779,384  $ 570,737
                                                =========== ==========
                           FTD GROUP, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Unaudited)
                            (In thousands)
                                                   Nine Months Ended
                                                       March 31,
                                                  --------------------
                                                     2007      2006
                                                  ---------- ---------
Cash flows from operating activities:
  Net income                                      $  21,165  $ 16,749
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation and amortization of intangibles
     and computer software                           10,890     7,740
    Gain from sale of business and related
     transaction                                          -      (991)
    Stock-based compensation expense                  1,451       458
    Amortization and write off of deferred
     financing costs                                  2,512     1,204
    Provision for doubtful accounts                   2,088     2,589
    Deferred income taxes                             2,706       500
    Decrease in cash due to changes in operating
     assets and liabilities, net of acquisition      (3,419)   (7,519)
                                                  ---------- ---------
        Net cash provided by operating activities    37,393    20,730
                                                  ---------- ---------
Cash flows from investing activities:
  Acquisition of business, excluding cash
   acquired                                         (96,717)        -
  Capital expenditures                               (6,027)   (7,370)
  Proceeds from sale of business                          -     3,500
                                                  ---------- ---------
        Net cash used in investing activities      (102,744)   (3,870)
                                                  ---------- ---------
Cash flows from financing activities:
  Proceeds from issuance of long-term debt, net
   of financing costs                               148,536         -
  Repayments of long-term debt                      (57,750)  (11,096)
  Excess tax benefit from stock-based
   compensation                                       1,904       217
  Proceeds from exercise of stock options             2,315       209
  Purchase of company stock                               -   (14,999)
                                                  ---------- ---------
        Net cash provided by (used in) financing
         activities                                  95,005   (25,669)
                                                  ---------- ---------
  Effect of foreign exchange rate changes on cash
   and cash equivalents                                 771       142
                                                  ---------- ---------
Net increase (decrease) in cash and cash
 equivalents                                         30,425    (8,667)
Cash and cash equivalents at beginning of period     10,954     8,890
                                                  ---------- ---------
Cash and cash equivalents at end of period        $  41,379  $    223
                                                  ========== =========
Supplemental disclosures of cash flow information
  Cash paid for:
    Interest                                      $  20,994  $ 16,131
                                                  ========== =========
    Income taxes, net                             $  13,356  $  4,570
                                                  ========== =========
  Non-cash disclosure:
    Issuance of notes payable associated with the
     purchase of Interflora Holdings Limited      $  23,313
                                                  ==========
    Issuance of treasury stock associated with
     the purchase of Interflora Holdings Limited  $   3,206
                                                  ==========
    Notes receivable associated with the sale of
     Renaissance                                             $  1,805
                                                             =========
                           FTD GROUP, INC.
                         SEGMENT INFORMATION
                             (Unaudited)
                            (In thousands)
                    Three Months Ended         Three Months Ended
                       March 31, 2007             March 31, 2006
                 -------------------------- --------------------------
                  Gross   Elimin-  Consol-   Gross   Elimin-  Consol-
                  Segment  ations   idated   Segment  ations   idated
                 -----------------------------------------------------
Revenues:
Consumer segment $84,642  $(4,426) $80,216  $80,883  $(5,203) $75,680
Florist segment   49,290     (167)  49,123   52,979      (74)  52,905
International
 segment          53,476       84   53,560        -        -        -
                 -------- -------- -------- -------- -------- --------
  Total          187,408   (4,509) 182,899  133,862   (5,277) 128,585
                 -------- -------- -------- -------- -------- --------
Costs of Goods
 Sold and
 Services
 Provided:
Consumer segment  57,721     (741)  56,980   56,156     (747)  55,409
Florist segment   17,465     (826)  16,639   18,849     (828)  18,021
International
 segment          37,528      (37)  37,491        -        -        -
Corporate            493        -      493      533        -      533
                 -------- -------- -------- -------- -------- --------
  Total          113,207   (1,604) 111,603   75,538   (1,575)  73,963
                 -------- -------- -------- -------- -------- --------
Gross Profit:
Consumer segment  26,921   (3,685)  23,236   24,727   (4,456)  20,271
Florist segment   31,825      659   32,484   34,130      754   34,884
International
 segment          15,948      121   16,069        -        -        -
Corporate           (493)       -     (493)    (533)       -     (533)
                 -------- -------- -------- -------- -------- --------
  Total           74,201   (2,905)  71,296   58,324   (3,702)  54,622
                 -------- -------- -------- -------- -------- --------
Advertising and
 Selling:
Consumer segment  11,346        -   11,346   10,401        -   10,401
Florist segment   14,821   (3,028)  11,793   16,044   (3,702)  12,342
International
 segment           4,292      (83)   4,209        -        -        -
                 -------- -------- -------- -------- -------- --------
Total             30,459   (3,111)  27,348   26,445   (3,702)  22,743
                 -------- -------- -------- -------- -------- --------
General and
 Administrative:
Consumer segment   7,311     (786)   6,525    6,881     (735)   6,146
Florist segment    2,052        -    2,052    2,377        -    2,377
International
 segment           6,486       61    6,547        -        -        -
Corporate          5,588      786    6,374    5,790      735    6,525
                 -------- -------- -------- -------- -------- --------
  Total           21,437       61   21,498   15,048        -   15,048
                 -------- -------- -------- -------- -------- --------
Operating Income
 (Loss) before
 Corporate
 Allocations:
Consumer segment   8,264   (2,899)   5,365    7,445   (3,721)   3,724
Florist segment   14,952    3,687   18,639   15,709    4,456   20,165
International
 segment           5,170      143    5,313        -        -        -
Corporate         (6,081)    (786)  (6,867)  (6,323)    (735)  (7,058)
                 -------- -------- -------- -------- -------- --------
  Total           22,305      145   22,450   16,831        -   16,831
                 -------- -------- -------- -------- -------- --------
Corporate
 Allocations:
Consumer segment   1,151        -    1,151      849        -      849
Florist segment    2,284        -    2,284    2,868        -    2,868
International
 segment               -        -        -        -        -        -
Corporate         (3,435)       -   (3,435)  (3,717)       -   (3,717)
                 -------- -------- -------- -------- -------- --------
  Total                -        -        -        -        -        -
                 -------- -------- -------- -------- -------- --------
Operating Income
 (Loss):
Consumer segment   7,113   (2,899)   4,214    6,596   (3,721)   2,875
Florist segment   12,668    3,687   16,355   12,841    4,456   17,297
International
 segment           5,170      143    5,313        -        -        -
Corporate         (2,646)    (786)  (3,432)  (2,606)    (735)  (3,341)
                 -------- -------- -------- -------- -------- --------
  Total          $22,305     $145  $22,450  $16,831       $-  $16,831
                 ======== ======== ======== ======== ======== ========
Depreciation and
 Amortization:
Consumer segment    $950       $-     $950     $836       $-     $836
Florist segment      799        -      799      821        -      821
International
 segment           1,078        -    1,078        -        -        -
Corporate            862        -      862      967        -      967
                 -------- -------- -------- -------- -------- --------
  Total           $3,689       $-   $3,689   $2,624       $-   $2,624
                 ======== ======== ======== ======== ======== ========
                           FTD GROUP, INC.
                         SEGMENT INFORMATION
                             (Unaudited)
                            (In thousands)
                Nine Months Ended             Nine Months Ended
                  March 31, 2007                March 31, 2006
           ----------------------------- -----------------------------
            Gross     Elimin-   Consol-   Gross     Elimin-   Consol-
            Segment   ations    idated    Segment   ations    idated
           -----------------------------------------------------------
Revenues:
Consumer
 segment   $209,451  $(12,367) $197,084  $193,836  $(13,315) $180,521
Florist
 segment    137,873      (351)  137,522   143,323      (205)  143,118
Intern-
ational
 segment    108,422       182   108,604         -         -         -
           --------- --------- --------- --------- --------- ---------
  Total     455,746   (12,536)  443,210   337,159   (13,520)  323,639
           --------- --------- --------- --------- --------- ---------
Costs of
 Goods
 Sold and
 Services
 Provided:
Consumer
 segment    142,335    (1,868)  140,467   134,073    (1,809)  132,264
Florist
 segment     46,664    (2,497)   44,167    49,485    (2,524)   46,961
Inter-
national
 segment     75,280       (77)   75,203         -         -         -
Corporate     1,507         -     1,507     1,718         -     1,718
           --------- --------- --------- --------- --------- ---------
  Total     265,786    (4,442)  261,344   185,276    (4,333)  180,943
           --------- --------- --------- --------- --------- ---------
Gross
 Profit:
Consumer
 segment     67,116   (10,499)   56,617    59,763   (11,506)   48,257
Florist
 segment     91,209     2,146    93,355    93,838     2,319    96,157
Inter-
national
 segment     33,142       259    33,401         -         -         -
Corporate    (1,507)        -    (1,507)   (1,718)        -    (1,718)
           --------- --------- --------- --------- --------- ---------
  Total     189,960    (8,094)  181,866   151,883    (9,187)  142,696
           --------- --------- --------- --------- --------- ---------
Advert-
ising and
 Selling:
Consumer
 segment     25,087         -    25,087    22,768         -    22,768
Florist
 segment     43,395    (8,353)   35,042    48,703    (9,187)   39,516
Inter-
national
 segment      8,834      (196)    8,638         -         -         -
           --------- --------- --------- --------- --------- ---------
Total        77,316    (8,549)   68,767    71,471    (9,187)   62,284
           --------- --------- --------- --------- --------- ---------
General
 and
 Admin-
istrative:
Consumer
 segment     18,690    (1,940)   16,750    15,407    (1,785)   13,622
Florist
 segment      6,348         -     6,348     5,607         -     5,607
Intern-
ational
 segment     15,231       318    15,549         -         -         -
Corporate    17,675     1,940    19,615    17,430     1,785    19,215
           --------- --------- --------- --------- --------- ---------
  Total      57,944       318    58,262    38,444         -    38,444
           --------- --------- --------- --------- --------- ---------
Operating
 Income
 (Loss)
 before
 Corporate
 Allo-
cations:
Consumer
 segment     23,339    (8,559)   14,780    21,588    (9,721)   11,867
Florist
 segment     41,466    10,499    51,965    39,528    11,506    51,034
Inter-
national
 segment      9,077       137     9,214         -         -         -
Corporate   (19,182)   (1,940)  (21,122)  (19,148)   (1,785)  (20,933)
           --------- --------- --------- --------- --------- ---------
  Total      54,700       137    54,837    41,968         -    41,968
           --------- --------- --------- --------- --------- ---------
Corporate
 Allo-
cations:
Consumer
 segment      3,021         -     3,021     2,451         -     2,451
Florist
 segment      7,007         -     7,007     8,364         -     8,364
Inter-
national
 segment          -         -         -         -         -         -
Corporate   (10,028)        -   (10,028)  (10,815)        -   (10,815)
           --------- --------- --------- --------- --------- ---------
  Total           -         -         -         -         -         -
           --------- --------- --------- --------- --------- ---------
Operating
 Income
 (Loss):
Consumer
 segment     20,318    (8,559)   11,759    19,137    (9,721)    9,416
Florist
 segment     34,459    10,499    44,958    31,164    11,506    42,670
Inter-
national
 segment      9,077       137     9,214         -         -         -
Corporate    (9,154)   (1,940)  (11,094)   (8,333)   (1,785)  (10,118)
           --------- --------- --------- --------- --------- ---------
  Total     $54,700      $137   $54,837   $41,968        $-   $41,968
           ========= ========= ========= ========= ========= =========
Depre-
ciation
 and
 Amort-
ization:
Consumer
 segment     $2,883        $-    $2,883    $2,293        $-    $2,293
Florist
 segment      2,430         -     2,430     2,551         -     2,551
Intern-
ational
 segment      2,783         -     2,783         -         -         -
Corporate     2,794         -     2,794     2,896         -     2,896
           --------- --------- --------- --------- --------- ---------
  Total     $10,890        $-   $10,890    $7,740        $-    $7,740
           ========= ========= ========= ========= ========= =========
                           FTD GROUP, INC.
                     NON-GAAP FINANCIAL MEASURES
                                EBITDA
                             (Unaudited)
                            (In thousands)
Reconciliation of certain financial measures reported in accordance
 with Generally Accepted Accounting Principles ("GAAP") to those
 presented on the basis of methodologies other than in accordance with
 GAAP ("non-GAAP").
The Company defines EBITDA as net income before net interest expense,
 income tax expense, depreciation and amortization. The Company
 defines Adjusted EBITDA as EBITDA plus expenses that are not
 considered reflective of the Company's core operations. For the
 periods presented, the items not considered part of the Company's
 core operations are the income from the Renaissance operations,
 including the gain on the sale, and other (income) expense, which
 primarily consists of net foreign currency gains and losses and the
 costs associated with the March 2007 secondary stock offering. EBITDA
 and Adjusted EBITDA are calculated as follows for the periods
 presented:
                                 Three Months Ended  Nine Months Ended
                                     March 31,           March 31,
                                 ------------------  -----------------
                                   2007     2006      2007     2006
                                 --------- --------  -------- --------
    Net income, as reported
     (GAAP basis)                  $9,615   $7,421   $21,165  $16,749
    plus: Interest expense, net     5,955    4,596    20,553   14,068
    plus: Depreciation and
     amortization                   3,689    2,624    10,890    7,740
    plus: Income tax expense        6,310    4,932    13,844   11,357
                                 --------- --------  -------- --------
    EBITDA (1)                     25,569   19,573    66,452   49,914
    Income attributable to the
     Renaissance operations and
     sale                               -        -         -     (906)
    Other expense (income), net       570     (118)     (725)    (206)
                                 --------- --------  -------- --------
    Adjusted EBITDA (1)           $26,139  $19,455   $65,727  $48,802
                                 ========= ========  ======== ========
(1) The Company uses EBITDA and Adjusted EBITDA as supplemental
     measures of performance.  The Company presents Adjusted EBITDA
     because it considers it an important supplemental measure of
     performance, as it is used as a performance measure under the
     senior credit facility entered into in connection with the
     acquisition of Interflora Holdings Limited, the indenture
     governing the Notes and the Company's executive compensation
     plan. The adjustments made in the calculation of Adjusted EBITDA,
     as described above, are adjustments that would be made in
     calculating the Company's performance for purposes of coverage
     ratios under the senior credit facility and the indenture
     governing the Notes, and the Company's executive compensation
     plan bases incentive compensation payments in significant part on
     the Company's performance measured using Adjusted EBITDA as
     presented above. Measures similar to EBITDA and Adjusted EBITDA
     are also widely used by the Company and by others in the
     Company's industry to evaluate and price potential acquisition
     candidates.
    The Company believes EBITDA and Adjusted EBITDA facilitate
     operating performance comparisons from period to period and
     company to company by backing out potential differences caused by
     variations in capital structure (affecting relative interest
     expense), tax positions (such as the impact on periods or
     companies of changes in effective tax rates or net operating
     losses), the age and book depreciation of facilities and
     equipment (affecting relative depreciation expense), profits or
     losses related to sold businesses, currency fluctuations
     (primarily resulting from the Interflora business, which is based
     in the U.K.) and expenses related to financing transactions. The
     Company also presents EBITDA and Adjusted EBITDA because it
     believes they are frequently used by investors and other
     interested parties in the evaluation of high yield issuers, many
     of which present EBITDA and/or Adjusted EBITDA when reporting
     their results.
    EBITDA and Adjusted EBITDA have limitations as analytical tools,
     and should not be considered in isolation, or as a substitute for
     analysis of the Company's results as reported under GAAP. Some of
     the limitations of EBITDA and Adjusted EBITDA are that they do
     not reflect the Company's cash expenditures for capital
     expenditures, they do not reflect the significant interest
     expense or the cash requirements necessary to service interest or
     principal payments on the Company's debt, they do not reflect
     changes in, or cash requirements for, the Company's working
     capital requirements, they do not reflect other expenses or gains
     excluded above and other companies in the Company's industry may
     calculate these measures differently than presented above. The
     Company compensates for these limitations by relying primarily on
     GAAP results and using EBITDA and Adjusted EBITDA only
     supplementally.
                           FTD GROUP, INC.
                     NON-GAAP FINANCIAL MEASURES
                                EBITDA
                             (Unaudited)
                            (In thousands)
Reconciliation of certain financial measures reported in accordance
 with Generally Accepted Accounting Principles ("GAAP") to those
 presented on the basis of methodologies other than in accordance with
 GAAP ("non-GAAP").
The Company defines EBITDA as net income before net interest expense,
 income tax expense, depreciation and amortization. The Company
 defines Adjusted EBITDA as EBITDA plus expenses that are not
 considered reflective of the Company's core operations. For the year
 ending June 30, 2007, the item not considered reflective of the
 Company's core operations is other expense (income), net, which
 primarily consists of foreign currency gains and losses and the costs
 associated with the March 2007 secondary stock offering. The other
 expense (income), net presented below reflects the Company's actual
 other expense (income), net for the nine-month period ended March 31,
 2007, and the Company is not projecting any additional other expense
 (income), net for the year ending June 30, 2007. Targeted EBITDA and
 Adjusted EBITDA are calculated as follows for the period presented:
                                                      Year Ending
                                                      June 30, 2007
                                                  (Forecasted Targets)
                                                  --------------------
    Revenues                                      $           615,000
    Net income (GAAP basis)                       $            29,000
    plus: Interest expense, net                                27,100
    plus: Depreciation and amortization                        15,500
    plus: Income tax expense                                   19,100
                                                  --------------------
    EBITDA (1)                                                 90,700
    less: Other expense (income), net                            (725)
                                                  --------------------
    Adjusted EBITDA (1)                           $            89,975
                                                  ====================
(1) The Company uses EBITDA and Adjusted EBITDA as supplemental
     measures of performance.  The Company presents Adjusted EBITDA
     because it considers it an important supplemental measure of
     performance, as it is used as a performance measure under the
     senior credit facility entered into in connection with the
     acquisition of Interflora Holdings Limited, the indenture
     governing the Notes and the Company's executive compensation
     plan. The adjustment made in the calculation of Adjusted EBITDA,
     as described above, is an adjustment that would be made in
     calculating the Company's performance for purposes of coverage
     ratios under the senior credit facility and the indenture
     governing the Notes, and the Company's executive compensation
     plan bases incentive compensation payments in significant part on
     the Company's performance measured using Adjusted EBITDA as
     presented above. Measures similar to EBITDA and Adjusted EBITDA
     are also widely used by the Company and by others in the
     Company's industry to evaluate and price potential acquisition
     candidates.
    The Company believes EBITDA and Adjusted EBITDA facilitate
     operating performance comparisons from period to period and
     company to company by backing out potential differences caused by
     variations in capital structure (affecting relative interest
     expense), tax positions (such as the impact on periods or
     companies of changes in effective tax rates or net operating
     losses), the age and book depreciation of facilities and
     equipment (affecting relative depreciation expense), profits or
     losses related to sold businesses, currency fluctuations
     (primarily resulting from the Interflora business, which is based
     in the U.K.) and expenses related to financing transactions. The
     Company also presents EBITDA and Adjusted EBITDA because it
     believes they are frequently used by investors and other
     interested parties in the evaluation of high yield issuers, many
     of which present EBITDA and/or Adjusted EBITDA when reporting
     their results.
    EBITDA and Adjusted EBITDA have limitations as analytical tools,
     and should not be considered in isolation, or as a substitute for
     analysis of the Company's results as reported under GAAP. Some of
     the limitations of EBITDA and Adjusted EBITDA are that they do
     not reflect the Company's cash expenditures for capital
     expenditures, they do not reflect the significant interest
     expense or the cash requirements necessary to service interest or
     principal payments on the Company's debt, they do not reflect
     changes in, or cash requirements for, the Company's working
     capital requirements, they do not reflect other expenses or gains
     excluded above and other companies in the Company's industry may
     calculate these measures differently than presented above. The
     Company compensates for these limitations by relying primarily on
     GAAP results and using EBITDA and Adjusted EBITDA only
     supplementally.
FTD Group, Inc. 
Jandy Tomy (Investor Relations)
(630) 724-6984
jtomy@ftdi.com

###

 

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