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  Title	1-800-FLOWERS.COM, Inc. Reports Fiscal 2025...
  ID	6387939
  External ID	7509978310
  Author	Unknown
  Published Date	Jan. 30, 2025, 6:32 a.m.
  Summary	Generates Revenues of $775.5 million and Net Income of $64.3 million Reports Adjusted EBITDA(1) of $116.3 million Updates Fiscal Year 2025 Outlook (1) Refer to "Definitions of Non-GAAP Financial Me
  Tags	press-release
  URL	https://www.benzinga.com/pressreleases/25/01/b43331456/1-800-flowers-com-inc-reports-fiscal-2025-second-quarter-results
  Sentiment	Negative: 0.96970    Neutral: 0.01737    Positive: 0.01292
  Relevance	0.03252

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  Content ID	3942931
  Key	1ddb0d88-7932-484a-ab7a-66537f8c1ae1
  Content	Generates Revenues of $775.5 million and Net Income of $64.3 million Reports Adjusted EBITDA(1) of $116.3 million Updates Fiscal Year 2025 Outlook (1) Refer to "Definitions of Non-GAAP Financial Measures" and the tables attached at the end of this press release for reconciliation of non-GAAP results to applicable GAAP results. 1-800-FLOWERS.COM, Inc. FLWS, a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships, today reported results for its Fiscal 2025 second quarter ended December 29, 2024. "Our second quarter revenue declined 5.7%, showing year-over-year improvement, but not at the pace that we had been anticipating," said Jim McCann, Chairman and Chief Executive Officer of 1-800-FLOWERS.COM, Inc. "Our business experienced a softer than anticipated and highly promotional consumer environment, along with a pullback in corporate gifting orders, which were slightly offset by an improvement in our wholesale business. These trends were further exacerbated by issues with our new Harry & David order management system implementation." Mr. McCann continued, "Shifting patterns in consumer engagement have affected our performance. We are implementing actions to accelerate our Work Smarter efficiency initiatives that will in turn fund investments in our growth-oriented Relationship Innovation™ initiatives and marketing and sales strategies. As we focus on expanding our customer base, we see significant opportunities to leverage new technology to enhance engagement and build deeper relationships with our customers. We are confident that our dedicated team and innovative solutions will help us navigate these headwinds and emerge stronger." Fiscal 2025 Second Quarter Highlights Total consolidated revenues decreased 5.7% to $775.5 million, as compared with the prior year period. Gross profit margin of 43.3% was flat with the prior year period. Operating expenses declined $19.9 million to $244.5 million, as compared with the prior year period. Excluding the impact of non-recurring charges in the current period associated with new systems implementation costs, impairment charges in the prior year period, as well as the impact of the Company's non-qualified deferred compensation plan in both periods, operating expenses declined by $2.9 million to $239.1 million, as compared with the prior year period. Net income for the quarter was $64.3 million, or $1.00 per diluted share, as compared with net income of $62.9 million, or $0.97 per diluted share in the prior year period. Adjusted Net Income1 was $69.2 million, or $1.08 per diluted share, compared with an Adjusted Net Income1 of $82.7 million, or $1.27 per diluted share, in the prior year period. Adjusted EBITDA1 for the quarter was $116.3 million, as compared with Adjusted EBITDA1 of $130.1 million in the prior year period. Segment Results The Company provides Fiscal 2025 second quarter financial results for its Gourmet Foods and Gift Baskets, Consumer Floral and Gifts, and BloomNet® segments in the tables attached to this release and as follows: Gourmet Foods and Gift Baskets: Revenues for the quarter declined 4.0% to $518.5 million as compared with the prior year period. The Company estimates that the issues associated with the implementation of its new order management system resulted in lost revenue of approximately $20 million. Gross profit margin increased 30 basis points to 43.5%, benefiting from the Company's inventory and labor optimization efforts that offset the incremental costs associated with the order management system issues. Excluding the impact of the systems implementation costs, adjusted segment contribution margin1 was $111.4 million, as compared with segment contribution margin1 of $118.2 million in the prior year period. Consumer Floral & Gifts: Revenues for the quarter declined 8.0% to $234.3 million as compared with the prior year period. Gross profit margin decreased 90 basis points to 41.9%, primarily due to deleveraging on the sales decline and a promotional consumer environment. Segment contribution margin1 was $21.6 million, compared with adjusted segment contribution margin1 of $30.4 million in the prior year period, excluding the intangible impairment. BloomNet: Revenues for the quarter declined 16.2% to $22.8 million as compared with the prior year period. Revenue and gross margin were impacted by the lower volume of lower margin orders processed by BloomNet. Gross profit margin increased 330 basis points to 50.9% due to lower florist rebates. Segment contribution margin1 was $7.5 million, compared with $9.1 million in the prior year period. Company Guidance Based on the Company's performance during its fiscal second quarter, the Company is updating its Fiscal 2025 guidance as outlined below. The Company expects its revenue trends to improve as the fiscal year progresses, benefiting from its Relationship Innovation initiatives that have expanded the Company's offerings, broadened price points and enhanced the user experience. For Fiscal 2025, the company now expects: total revenues to decline in the mid-single digits on a percentage basis, as compared with the prior year; Adjusted EBITDA 1 to be in a range of $65 million to $75 million; and to be in a range of $65 million to $75 million; and Free Cash Flow1 to be in a range of $25 million to $35 million. Credit Agreement Amendment The Company today announced that it has amended its credit agreement in order to provide more clarity and flexibility to the Company going forward. Key changes effected by the amendment include revising the definition of Consolidated EBITDA, clarifying the application of optional term loan prepayments toward scheduled principal payments, and revising the definition of Consolidated Fixed Charges. Additional information can be found in the Company's Form 8-K that was filed with the SEC this morning. Conference Call The Company will conduct a conference call to discuss the above details and attached financial results today, January 30, 2025, at 8:00 a.m. (ET). The conference call will be webcast from the Investors section of the Company's website at www.1800flowersinc.com. A recording of the call will be posted on the Investors section of the Company's website within two hours of the call's completion. A telephonic replay of the call can be accessed beginning at 2:00 p.m. (ET) today through February 6, 2025, at: (US) 1-877-344-7529; (Canada) 855-669-9658; (International) 1-412-317-0088; enter conference ID #: 4981439. Definitions of non-GAAP Financial Measures: We sometimes use financial measures derived from consolidated financial information, but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Certain of these are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. Non-GAAP financial measures referred to in this document are either labeled as "non-GAAP" or designated as such with a "1". See below for definitions and the reasons why we use these non-GAAP financial measures. Where applicable, see the Selected Financial Information below for reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures. Reconciliations for forward-looking figures would require unreasonable efforts at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including, for example, those related to compensation, tax items, amortization or others that may arise during the year, and the Company's management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The lack of such reconciling information should be considered when assessing the impact of such disclosures. EBITDA and Adjusted EBITDA: We define EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA adjusted for the impact of stock-based compensation, Non-Qualified Deferred Compensation Plan ("NQDC") Investment appreciation/depreciation, and for certain items affecting period-to-period comparability. See Selected Financial Information for details on how EBITDA and Adjusted EBITDA were calculated for each period presented. The Company presents EBITDA and Adjusted EBITDA because it considers such information meaningful supplemental measures of its performance and believes such information is frequently used by the investment community in the evaluation of similarly situated companies. The Company uses EBITDA and Adjusted EBITDA as factors to determine the total amount of incentive compensation available to be awarded to executive officers and other employees. The Company's credit agreement uses EBITDA and Adjusted EBITDA to determine its interest rate and to measure compliance with certain covenants. EBITDA and Adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates. 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 are: (a) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on the Company's debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and EBITDA does not reflect any cash requirements for such capital expenditures. EBITDA and Adjusted EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company's performance. Segment Contribution Margin and Adjusted Segment Contribution Margin We define Segment Contribution Margin as earnings before interest, taxes, depreciation, and amortization, before the allocation of corporate overhead expenses. Adjusted Segment Contribution Margin is defined as Segment Contribution Margin adjusted for certain items affecting period-to-period comparability. See Selected Financial Information for details on how Segment Contribution Margin and Adjusted Segment Contribution Margin were calculated for each period presented. When viewed together with our GAAP results, we believe Segment Contribution Margin and Adjusted Segment Contribution Margin provide management and users of the financial statements meaningful information about the performance of our business segments. Segment Contribution Margin and Adjusted Segment Contribution Margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of Segment Contribution Margin and Adjusted Segment Contribution Margin is that they are an incomplete measure of profitability as they do not include all operating expenses or non-operating income and expenses. Management compensates for this limitation when using these measures by looking at other GAAP measures, such as Operating Income and Net Income. Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share: We define Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share as Net Income (Loss) and Net Income (Loss) Per Common Share adjusted for certain items affecting period-to-period comparability. See Selected Financial Information below for details on how Adjusted Net Income (Loss) Per Common Share and Adjusted or Comparable Net Income (Loss) Per Common Share were calculated for each period presented. We believe that Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share are meaningful measures because they increase the comparability of period-to-period results. Since these are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, GAAP Net Income (Loss) and Net Income (Loss) Per Common Share, as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies. Free Cash Flow: We define Free Cash Flow as net cash provided by operating activities less capital expenditures. The Company considers Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of fixed assets, which can then be used to, among other things, invest in the Company's business, make strategic acquisitions, strengthen the balance sheet, and repurchase stock or retire debt. Free Cash Flow is a liquidity measure that is frequently used by the investment community in the evaluation of similarly situated companies. Since Free Cash Flow is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. A limitation of the utility of Free Cash Flow as a measure of financial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period. About 1-800-FLOWERS.COM, Inc. 1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships. The Company's e-commerce business platform features an all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, CardIsle®, Cheryl's Cookies®, Harry & David®, PersonalizationMall.com®, Shari's Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman's Bakery®, Vital Choice®, Simply Chocolate® and Scharffen Berger®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge on eligible products across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad-range of products and services designed to help members grow their businesses profitably; Napco℠, a resource for floral gifts and seasonal décor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; Alice's Table®, a lifestyle business offering fully digital livestreaming and on demand floral, culinary and other experiences to guests across the country; and Card Isle®, an e-commerce greeting card service. 1-800-FLOWERS.COM, Inc. was recognized among America's Most Trustworthy Companies by Newsweek for 2024. 1-800-FLOWERS.COM, Inc. was also recognized as one of America's Most Admired Workplaces for 2025 by Newsweek and was named to the Fortune 1000 list in 2022. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com. FLWS–COMP FLWS-FN Special Note Regarding Forward Looking Statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company's current expectations or beliefs concerning future events and can generally be identified using statements that include words such as "estimate," "expects," "project," "believe," "anticipate," "intend," "plan," "foresee," "forecast," "likely," "should," "will," "target" or similar words or phrases. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company's control, which could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, but not limited to, statements regarding the Company's ability to achieve its guidance for the full Fiscal year; the Company's ability to leverage its operating platform and reduce its operating expense ratio; its ability to successfully integrate acquired businesses and assets; its ability to successfully execute its strategic initiatives; its ability to cost effectively acquire and retain customers; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to reduce promotional activities and achieve more efficient marketing programs; and general consumer sentiment and industry and economic conditions that may affect levels of discretionary customer purchases of the Company's products. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether because of new information, future events or otherwise, made in this release or in any of its SEC filings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed description of these and other risk factors, refer to the Company's SEC filings, including the Company's Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. Note: The following tables are an integral part of this press release without which the information presented in this press release should be considered incomplete. 1-800-FLOWERS.COM, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) December 29, 2024 June 30, 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 247,220 $ 159,437 Trade receivables, net 61,352 18,024 Inventories 157,438 176,591 Prepaid and other 26,884 31,680 Total current assets 492,894 385,732 Property, plant and equipment, net 223,178 223,789 Operating lease right-of-use assets 110,455 113,926 Goodwill 156,648 156,537 Other intangibles, net 115,079 116,216 Other assets 39,516 36,448 Total assets $ 1,137,770 $ 1,032,648 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 113,588 $ 80,005 Accrued expenses 193,558 121,303 Current maturities of long-term debt - 10,000 Current portion of long-term operating lease liabilities 18,490 16,511 Total current liabilities 325,636 227,819 Long-term debt, net 157,474 177,113 Long-term operating lease liabilities 102,038 105,866 Deferred tax liabilities, net 17,905 19,402 Other liabilities 39,610 36,106 Total liabilities 642,663 566,306 Total stockholders' equity 495,107 466,342 Total liabilities and stockholders' equity $ 1,137,770 $ 1,032,648 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Operations (in thousands, except for per share data) (unaudited) Three Months Ended Six Months Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 Net revenues: E-Commerce $ 677,326 $ 738,406 $ 870,500 $ 948,317 Other 98,166 83,648 147,082 142,787 Total net revenues 775,492 822,054 1,017,582 1,091,104 Cost of revenues 439,899 466,357 589,670 633,479 Gross profit 335,593 355,697 427,912 457,625 Operating expenses: Marketing and sales 187,003 188,557 269,100 271,075 Technology and development 15,973 14,822 31,612 30,126 General and administrative 27,410 27,154 55,936 55,643 Depreciation and amortization 14,130 14,152 27,168 27,346 Intangible impairment - 19,762 - 19,762 Total operating expenses 244,516 264,447 383,816 403,952 Operating income 91,077 91,250 44,096 53,673 Interest expense, net 4,396 4,611 7,756 8,093 Other income, net (1,164 ) (2,736 ) (2,931 ) (2,262 ) Income before income taxes 87,845 89,375 39,271 47,842 Income tax expense 23,497 26,468 9,113 16,177 Net income $ 64,348 $ 62,907 $ 30,158 $ 31,665 Basic net income per common share $ 1.01 $ 0.97 $ 0.47 $ 0.49 Diluted net income per common share $ 1.00 $ 0.97 $ 0.47 $ 0.49 Weighted average shares used in the calculation of net income per common share: Basic 63,836 64,835 64,017 64,814 Diluted 64,306 65,177 64,501 65,155 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Cash Flows (in thousands) (unaudited) Six Months Ended December 29, 2024 December 31, 2023 Operating activities: Net income $ 30,158 $ 31,665 Adjustments to reconcile net income to net cash provided by operating activities: Intangible impairment - 19,762 Depreciation and amortization 27,168 27,346 Amortization of deferred financing costs 361 361 Deferred income taxes (1,496 ) (6,108) Bad debt expense 131 225 Stock-based compensation 6,108 4,595 Other non-cash items (412 ) (385) Changes in operating items: Trade receivables (43,400 ) (26,384) Inventories 20,446 29,808 Prepaid and other 5,850 6,640 Accounts payable and accrued expenses 104,671 125,404 Other assets and liabilities 1,722 (169) Net cash provided by operating activities 151,307 212,760 Investing activities: Acquisitions, net of cash acquired (3,000 ) - Capital expenditures (23,023 ) (17,807) Net cash used in investing activities (26,023 ) (17,807) Financing activities: Acquisition of treasury stock (7,683 ) (4,787) Proceeds from exercise of employee stock options 182 44 Proceeds from bank borrowings 110,000 82,000 Repayment of bank borrowings (140,000 ) (87,000) Net cash used in financing activities (37,501 ) (9,743) Net change in cash and cash equivalents 87,783 185,210 Cash and cash equivalents: Beginning of period 159,437 126,807 End of period $ 247,220 $ 312,017 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited) Three Months Ended December 29, 2024 System Implementation costs As Adjusted (non-GAAP) December 29, 2024 December 31, 2023 Intangible Impairment As Adjusted (non-GAAP) December 31, 2023 % Change Net revenues: Consumer Floral & Gifts $ 234,349 $ - $ 234,349 $ 254,835 $ - $ 254,835 -8.0% BloomNet 22,837 - 22,837 27,236 - 27,236 -16.2% Gourmet Foods & Gift Baskets 518,454 - 518,454 539,963 - 539,963 -4.0% Corporate 113 - 113 279 - 279 -59.5% Intercompany eliminations (261) - (261) (259) - (259) -0.8% Total net revenues $ 775,492 $ - $ 775,492 $ 822,054 $ - $ 822,054 -5.7% Gross profit: Consumer Floral & Gifts $ 98,288 $ - $ 98,288 $ 109,176 $ - $ 109,176 -10.0% 41.9% 41.9% 42.8% 42.8% BloomNet 11,624 - 11,624 12,974 - 12,974 -10.4% 50.9% 50.9% 47.6% 47.6% Gourmet Foods & Gift Baskets 225,390 1,992 227,382 233,200 - 233,200 -2.5% 43.5% 43.9% 43.2% 43.2% Corporate 291 - 291 347 - 347 -16.1% 257.5% 257.5% 124.4% 124.4% Total gross profit $ 335,593 $ 1,992 $ 337,585 $ 355,697 $ - $ 355,697 -5.1% 43.3% - 43.5% 43.3% - 43.3% EBITDA (non-GAAP): Segment Contribution Margin (non-GAAP) (a): Consumer Floral & Gifts $ 21,587 $ - $ 21,587 $ 10,593 $ 19,762 $ 30,355 -28.9% BloomNet 7,460 - 7,460 9,088 - 9,088 -17.9% Gourmet Foods & Gift Baskets 107,277 4,166 111,443 118,153 - 118,153 -5.7% Segment Contribution Margin Subtotal 136,324 4,166 140,490 137,834 19,762 157,596 -10.9% Corporate (b) (31,117) 2,141 (28,976) (32,432) - (32,432) 10.7% EBITDA (non-GAAP) 105,207 6,307 111,514 105,402 19,762 125,164 -10.9% Add: Stock-based compensation 3,629 - 3,629 2,231 - 2,231 62.7% Add: Compensation charge related to NQDC Plan Investment Appreciation 1,135 - 1,135 2,682 - 2,682 -57.7% Adjusted EBITDA (non-GAAP) $ 109,971 $ 6,307 $ 116,278 $ 110,315 $ 19,762 $ 130,077 -10.6% 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited) Six Months Ended December 29, 2024 System Implementation Cost As Adjusted (non-GAAP) December 29, 2024 December 31, 2023 Intangible Impairment As Adjusted (non-GAAP) December 31, 2023 % Change Net revenues: Consumer Floral & Gifts $ 369,529 $ - $ 369,529 $ 397,029 $ - $ 397,029 -6.9% BloomNet 45,912 - 45,912 56,106 - 56,106 -18.2% Gourmet Foods & Gift Baskets 602,457 - 602,457 638,072 - 638,072 -5.6% Corporate 202 - 202 549 - 549 -63.2% Intercompany eliminations (518) - (518) (652) - (652) 20.6% Total net revenues $ 1,017,582 $ - $ 1,017,582 $ 1,091,104 $ - $ 1,091,104 -6.7% Gross profit: Consumer Floral & Gifts $ 152,217 $ - $ 152,217 $ 165,498 $ - $ 165,498 -8.0% 41.2% 41.2% 41.7% 41.7% BloomNet 23,152 - 23,152 27,472 - 27,472 -15.7% 50.4% 50.4% 49.0% 49.0% Gourmet Foods & Gift Baskets 252,234 1,992 254,226 264,107 - 264,107 -3.7% 41.9% 42.2% 41.4% 41.4% Corporate 309 - 309 548 - 548 -43.6% 153.0% 153.0% 99.8% 99.8% Total gross profit $ 427,912 $ 1,992 $ 429,904 $ 457,625 $ - $ 457,625 -6.1% 42.1% - 42.2% 41.9% - 41.9% EBITDA (non-GAAP): Segment Contribution Margin (non-GAAP) (a): Consumer Floral & Gifts $ 26,531 $ - $ 26,531 $ 19,419 $ 19,762 $ 39,181 -32.3% BloomNet 14,301 - 14,301 18,475 - 18,475 -22.6% Gourmet Foods & Gift Baskets 95,024 5,079 100,103 107,125 - 107,125 -6.6% Segment Contribution Margin Subtotal 135,856 5,079 140,935 145,019 19,762 164,781 -14.5% Corporate (b) (64,592) 3,008 (61,584) (64,000) - (64,000) 3.8% EBITDA (non-GAAP) 71,264 8,087 79,351 81,019 19,762 100,781 -21.3% Add: Stock-based compensation 6,108 - 6,108 4,595 - 4,595 32.9% Add: Compensation charge related to NQDC Plan Investment Appreciation 2,873 - 2,873 2,178 - 2,178 31.9% Adjusted EBITDA (non-GAAP) $ 80,245 $ 8,087 $ 88,332 $ 87,792 $ 19,762 $ 107,554 -17.9% 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited) Reconciliation of net income to adjusted net income (non-GAAP): Three Months Ended Six Months Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 Net income $ 64,348 $ 62,907 $ 30,158 $ 31,665 Adjustments to reconcile net income to adjusted net income (non-GAAP) Add: System implementation costs 6,307 - 8,087 - Add: Intangible impairment - 19,762 - 19,762 Deduct: Income tax effect on adjustments (1,475) - (2,002) - Adjusted net income (non-GAAP) $ 69,180 $ 82,669 $ 36,243 $ 51,427 Basic and diluted net income per common share Basic $ 1.01 $ 0.97 $ 0.47 $ 0.49 Diluted $ 1.00 $ 0.97 $ 0.47 $ 0.49 Basic and diluted adjusted net income per common share (non-GAAP) Basic $ 1.08 $ 1.28 $ 0.57 $ 0.79 Diluted $ 1.08 $ 1.27 $ 0.56 $ 0.79 Weighted average shares used in the calculation of basic and diluted net income and adjusted net income per common share Basic 63,836 64,835 64,017 64,814 Diluted 64,306 65,177 64,501 65,155 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited) Reconciliation of net income to adjusted EBITDA (non-GAAP): Three Months Ended Six Months Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 Net income $ 64,348 $ 62,907 $ 30,158 $ 31,665 Add: Interest expense and other, net 3,232 1,875 4,825 5,831 Add: Depreciation and amortization 14,130 14,152 27,168 27,346 Add: Income tax expense 23,497 26,468 9,113 16,177 EBITDA 105,207 105,402 71,264 81,019 Add: Stock-based compensation 3,629 2,231 6,108 4,595 Add: Compensation charge related to NQDC Plan Investment Appreciation 1,135 2,682 2,873 2,178 Add: System implementation costs 6,307 - 8,087 - Add: Intangible impairment - 19,762 - 19,762 Adjusted EBITDA $ 116,278 $ 130,077 $ 88,332 $ 107,554 (a) Segment performance is measured based on segment contribution margin or segment Adjusted EBITDA, reflecting only the direct controllable revenue and operating expenses of the segments, both of which are non-GAAP measurements. As such, management's measure of profitability for these segments does not include the effect of corporate overhead, described above, depreciation and amortization, other income (net), and other items that we do not consider indicative of our core operating performance. (b) Corporate expenses consist of the Company's enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation. In order to leverage the Company's infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment. 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited) Reconciliation of net cash provided by operating activities to free cash flow (non-GAAP): Six Months Ended December 29, 2024 December 31, 2023 Net cash provided by operating activities $ 151,307 $ 212,760 Capital expenditures (23,023) (17,807) Free cash flow $ 128,284 $ 194,953 View source version on businesswire.com: https://www.businesswire.com/news/home/20250130324553/en/ Investor Contact: Andy Milevoj amilevoj@1800flowers.com Media Contact: Cherie Gallarello cgallarello@1800flowers.com
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  Publisher URL	https://www.benzinga.com
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