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FTD Group, Inc. Reports 12% Growth in Mother's Day Orders
for the Domestic Consumer Segment

 

DOWNERS GROVE, IL. – May 20, 2008 –  FTD Group, Inc. (NYSE:FTD), a leading international provider of floral related products and services, today announced that its Domestic Consumer Segment experienced an increase of approximately 12% in orders delivered during the 2008 Mother's Day holiday season (which is defined as April 28, 2008 through May 11, 2008) compared to the comparable period of the prior year (which was April 30, 2007 through May 13, 2007).

The Company is reaffirming its previously announced annual revenue target of approximately $645 million and targeted Adjusted EBITDA of approximately $98 million (which excludes other (income) expense, net and $3.5 million of expenses incurred in the third quarter related to the pending acquisition by United Online, Inc., expenses related to acquisition opportunities which were abandoned due to the pending acquisition and advisory costs incurred in conjunction with the resolution of a sales tax audit). Before these adjustments, EBITDA is expected to be approximately $95 million. The Adjusted EBITDA and EBITDA targets exclude the impact of any expenses related to the pending acquisition by United Online, Inc. that may be incurred during the fourth quarter. The Company's targeted Adjusted EBITDA and EBITDA include approximately $4 million of compensation expense related to both stock compensation associated with Statement of Financial Accounting Standards No. 123(R) and a deferred compensation plan at Interflora U.K. The Company expects targeted net income for the fiscal year to be approximately $39 million, or $1.31 per diluted share. These net income and diluted EPS targets include the charges incurred and projected above, but exclude any fourth quarter charges that may be incurred related to the United Online, Inc. transaction. The above targets are only estimates, which may be exceeded or alternatively may not be achieved.

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. Failure to complete the transaction with United Online, Inc. could materially and adversely affect the Company's results of operations and stock price. Forward looking statements in this press release may include statements regarding the Company's outlook, anticipated revenue growth and profitability; 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 U.K. 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 U.K. 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 U.K. 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 ability to manage foreign currency exchange rate risk; 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 U.K. 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.
                     NON-GAAP FINANCIAL MEASURES
                 Targeted EBITDA and Adjusted 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 and minus income
 items that are not considered reflective of the Company's core
 operations.

Targeted EBITDA and Adjusted EBITDA is calculated below for the year
 ending June 30, 2008. The other (income) expense, net presented below
 reflects the Company's actual other (income) expense, net for the
 nine-month period ended March 31, 2008. The Company has not
 estimated, and the GAAP net income forecast does not reflect, fourth
 quarter expenses that may be incurred in connection with the pending
 United Online, Inc. transaction. The Company is not projecting any
 additional other (income) expense, net or other items not reflective
 of core operations for the year ending June 30, 2008. Targeted EBITDA
 and Adjusted EBITDA include approximately $4 million of expense
 related to stock compensation associated with SFAS No. 123(R) and a
 deferred compensation plan related to Interflora.

                                                   Forecasted Targets
                                                       Year Ending
                                                      June 30, 2008
                                                   -------------------

   Net income (GAAP basis)                                    $39,100
   plus: Interest expense, net                                 22,000
   plus: Depreciation and amortization                         12,600
   plus: Income tax expense                                    21,200
                                                   -------------------
   EBITDA (1)                                                 $94,900
                                                   ===================
   less: Other (income) expense, net                             (325)
   Items not reflective of core operations (2)                  3,462
                                                   -------------------
   Adjusted EBITDA (1)                                        $98,037
                                                   ===================

(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), other
     (income) expense, net (including foreign currency transactions)
     and other expenses or income items that are not considered
     reflective of the Company's core operations. 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.

(2) During the third quarter of fiscal year 2008, the Company recorded
     $2.0 million of expenses related to abandoned acquisition
     opportunities, $0.9 million of expenses related to the pending
     acquisition by United Online, Inc. and $0.6 million in advisory
     costs incurred in conjunction with the resolution of a sales tax
     audit. Management does not consider these expenses reflective of
     core operations.

   
     
FTD Group, Inc. 
Jandy Tomy (Investor Relations)
(630) 724-6984
jtomy@ftdi.com

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