FTD Amendment to S3

Status
Not open for further replies.
Bigted

Bigted

New Member
Feb 4, 2006
2,142
1,065
0
Anaheim
www.vissersflowers.com
State / Prov
CA
Wow...long is right!

I especially liked the **Forward Looking Statements**... In a pigs eye:hammer:
 
Ted -

Thanks for the 'heads up'. I hope every loyal FTD member reads this document thoroughly to see where FTD believes its future lies.

In a nutshell, florists' are looked to for filling same-day orders and to buy POS systems and services.

Key trends in the floral retail market include:
  • • the increasing role of floral direct marketers, particularly those marketing floral products over the Internet, which has resulted in increased orders for delivery placed through floral direct marketers versus traditional retail florists;

    • consumer purchasing of "cash and carry" flowers continues to shift away from traditional retail florists to supermarket and mass merchant retail locations;

    • the increasing dependence of traditional retail florists on wire services to provide incoming order volume to offset business lost to Internet, supermarket and mass merchant retailers; and

    • the expansion of product offerings by traditional retail florists and direct marketers to include specialty gift items.
Click to expand...
Emphasis mine. If you are dependent on incomings, esp from FTD, be very careful about staking your future on the relationship.

Here's where FTD believes a big part of their future sales growth will come:
Successfully Execute Supermarket and Mass Merchant Channel Initiatives. We are currently pursuing opportunities to expand our presence in a number of channels that have not historically represented a meaningful portion of our revenues. For example, we believe the supermarket and mass merchant channel represents an excellent opportunity to increase our membership and product penetration as consumers continue to shift "cash and carry" purchases away from traditional florists. To capitalize on this opportunity, we have begun to provide FTD-branded product offerings to supermarkets that sell flowers in North America. We plan to continue adding additional locations to our membership from the estimated 23,000 supermarkets that sell flowers in North America. We also believe we have a significant opportunity to expand in the mass merchant category, which has approximately 17,000 locations in North America.
Click to expand...
Does anyone read where FTD plans to help drive consumers to local B&M florists? I didn't think so.

It's a war and you think they're on your side. How many ways can DG say 'screw you' to florists before we get it?
 
Key trends in the floral retail market include:
• the increasing role of floral direct marketers, particularly those marketing floral products over the Internet, which has resulted in increased orders for delivery placed through floral direct marketers versus traditional retail florists;

TRANSLATION: We love our dOGs!! We think its great how they are taking orders from traditional florists, skimming them, and sending them back to them minus 7% for us and 20% for them. Obviously, our "member" florists have no clue, and we plan on milking them for as long as we can.

consumer purchasing of "cash and carry" flowers continues to shift away from traditional retail florists to supermarket and mass merchant retail locations;

• the increasing dependence of traditional retail florists on wire services to provide incoming order volume to offset business lost to Internet, supermarket and mass merchant retailers; and

TRANSLATION: Since almost our member florists have proven themselves to be dumb, we think we can keep selling them loads of unnessicary and overpriced services and goods, making us plenty of money to use in marketing efforts against them as we partner with the Big Boxes and Grocers

• the expansion of product offerings by traditional retail florists and direct marketers to include specialty gift items.

TRANSLATION: Flowers??? HAH! You must be kidding, right? Too much hassle and short shelf life...we need to start using our golden-assed MM to convince our loyal branded customers that perhaps flowers ARE NOT the best way to use FTD, and that this cheap-o Chinease whatchamadoodle that we get for 73cents would make a GREAT $25 gift!
 
  • Like
Reactions: 2 people
mark...

Great translations...

mark.

(must have something to do with *mark* ;) )
 
For example, we believe the supermarket and mass merchant channel represents an excellent opportunity to increase our membership and product penetration as consumers continue to shift "cash and carry" purchases away from traditional florists. To capitalize on this opportunity, we have begun to provide FTD-branded product offerings to supermarkets that sell flowers in North America.
Click to expand...

Emphasis mine.

This confirms what I have been thinking for a long time. FTD is using florists for as long as they can and when they have finally sucked the last of their members dry they will either dump them or no longer offer their services to trad. florists and move on to drop shipping and partnerships with supermarkets/grocery stores.

What florist in their right mind would want to continue a partnership with a company whose goal is to eliminate them from their "business plan"? Just sayin'.
 
Some of this stuff is absolutely fascinating, tho:

Referring to the U.K. market:
"Unlike the U.S., mass merchants play a significant role in the delivered flower market, offering next day delivery. "

The U.K. must be the future!

Regarding the U.S. market:
"the increasing dependence of traditional retail florists on wire services to provide incoming order volume to offset business lost to Internet, supermarket and mass merchant retailers"

Isn't that why many Mom & Pops can't afford to dump the WS?
What if you're not a .com filler? Local business or bust?
And if you are a .com filler for your city, are you not simply an independent Local Fulfillment Center?
Geez, they've vertically integrated across all other lines based on "we participate across every major floral retail distribution channel"....how long before they purchase the profitable LFC's?

Ahhhhh...maybe not..."Our members and direct ship partners maintain the "bricks and mortar" facilities and substantially all of the floral and specialty gift physical inventory, and bear the cost of warehousing and distribution."

Why buy the cow when you can have the milk for free?

"It also allows our consumer businesses to process peak order flow substantially above that of our average daily order flow without any meaningful incremental investment in systems or infrastructure."

Now ain't that a mouthful!!!

Mikey S. has 633,000 shares, and is offering 330,000 of them at what...$20/share? Nice pocket change at $6.6m...

So now that we've seen the future...where do YOU fit into the big picture...BIG FILLER...BIG O.G....BIG LOCAL...OR BIG BYE BYE???
 
3:47 here in soggy, but now sunny in Long Island.

So what is the answer beyond the fact that every B&M florist should immediately & publicly cease doing business with the WS unless squeaking out a few more bucks is more important.
 
The price per share has dropped from $20.50 on Monday to $18.36 today.

Don't you love how they sweetened the share sales with the cash dividend (maybe to get them sold faster by that March 19 holding date). What's $.1625/share dividend when you stand to make $6, $10 or more profit on each share sold.

We have agreed to pay substantially all of the selling stockholders' expenses in connection with the offering, excluding underwriting discounts and commissions, which we estimate will be $700,000.
Click to expand...

And Soenen is selling off more than 1/2 of his shares. So are Jon Burney, Larry Johnson, George Kanganis, and Bill VanCleave. Hmmmmm.....
 
CHR said:
The price per share has dropped from $20.50 on Monday to $18.36 today.

Don't you love how they sweetened the share sales with the cash dividend (maybe to get them sold faster by that March 19 holding date). What's $.1625/share dividend when you stand to make $6, $10 or more profit on each share sold.



And Soenen is selling off more than 1/2 of his shares. So are Jon Burney, Larry Johnson, George Kanganis, and Bill VanCleave. Hmmmmm.....
Click to expand...

How did you come up with the info on the FTD Management Team dumping shares? I may have missed something along the way.
 
CHR said:
And Soenen is selling off more than 1/2 of his shares. So are Jon Burney, Larry Johnson, George Kanganis, and Bill VanCleave. Hmmmmm.....
Click to expand...
The RATS are always the first to leave a sinking ship!!!
 
CHR said:
And Soenen is selling off more than 1/2 of his shares. So are Jon Burney, Larry Johnson, George Kanganis, and Bill VanCleave. Hmmmmm.....
Click to expand...

"All executive officers and directors as a group (16 persons)(16) 16,800,449 57.6 % 6,000,000 10,800,449 37.0 % 9,900,449 33.9 % "

Sorry, the formatting did not copy properly.

The gist is that there are currently 16 executive offices & directors (which includes the FTD Management Group), which as a group hold 16,800,449 shares, of which 6,000,000 are being liquidated.

As a group, their ownership would drop from 57.6% of the company to 37.0%.

In "plain English" at $20/share, divesting $120 million dollars in ownership.

Hmmmmm indeed.
 
The Rats

David said:
To keep the loss in perspective, Wall Street had its worst week in about 5 years.
Click to expand...

" Ain't no cheese coming out the this shop anymore ".
Actually hoping that there will be a shortage in the near future.
Never cared much for RATS, especially two legged ones.


Left a message with FTD after I read the S.E.C. document a few times.
I guess my phones aren't working !:fdevil:
 
Our florist segment revenues are derived disproportionately from our largest 10,000 members. As a result, and because the mix of our membership is changing as we add more supermarket members and seek to add mass merchants, we no longer consider the absolute number of members to necessarily be indicative of segment performance. We focus primarily on the penetration of goods and services sold to our members, which has more than offset the impact of overall membership declines and allowed us to increase segment revenue (excluding the impact of Renaissance).

:FTDme Now I see what FTDme means!
 
Got the picture now !
Thanks

Dinner, a couple of Absolutes and a whole lot of re-evaluation ahead of this shop.
Thanks to all on FC who have been so helpful and informative !
 
prestonway said:
Some of this stuff is absolutely fascinating, tho:

Referring to the U.K. market:
"Unlike the U.S., mass merchants play a significant role in the delivered flower market, offering next day delivery. "

The U.K. must be the future!

Regarding the U.S. market:
"the increasing dependence of traditional retail florists on wire services to provide incoming order volume to offset business lost to Internet, supermarket and mass merchant retailers"

Isn't that why many Mom & Pops can't afford to dump the WS?
What if you're not a .com filler? Local business or bust?
And if you are a .com filler for your city, are you not simply an independent Local Fulfillment Center?
Geez, they've vertically integrated across all other lines based on "we participate across every major floral retail distribution channel"....how long before they purchase the profitable LFC's?

Ahhhhh...maybe not..."Our members and direct ship partners maintain the "bricks and mortar" facilities and substantially all of the floral and specialty gift physical inventory, and bear the cost of warehousing and distribution."

Why buy the cow when you can have the milk for free?

"It also allows our consumer businesses to process peak order flow substantially above that of our average daily order flow without any meaningful incremental investment in systems or infrastructure."

Now ain't that a mouthful!!!

Mikey S. has 633,000 shares, and is offering 330,000 of them at what...$20/share? Nice pocket change at $6.6m...

So now that we've seen the future...where do YOU fit into the big picture...BIG FILLER...BIG O.G....BIG LOCAL...OR BIG BYE BYE???
Click to expand...


Is this a company you would want to buy stock in?

Hopefully, that one sentence can stand on its own as my commentary as to where FTD is headed.

j
 
Status
Not open for further replies.
Top Bottom
Back