FTD Q2 - Numbers out

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CHR

CHR

Design matters
Nov 28, 2002
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United Online has reported their 2nd quarter numbers (Oct - Dec '08) for FTD today.
  • Segment revenues were $133.7 million in the fourth quarter, a 14% decrease compared to revenues of $155.5 million for the quarter ended December 31, 2007 as reported by the predecessor FTD company. Excluding a $10.6 million foreign currency exchange rate impact resulting from the strengthening U.S. Dollar versus the British Pound, segment revenues for the 2008 fourth quarter decreased 7% versus the year-ago comparable quarter.
  • Segment adjusted OIBDA(1) was $20.2 million in the fourth quarter, representing 15.1% of segment revenues.
  • Consumer orders during the fourth quarter were 1,467,000, a 5% decrease versus 1,540,000 consumer orders for the quarter ended December 31, 2007 as reported by the predecessor FTD company.
  • Average order value (“AOV”) was $58.80 in the 2008 fourth quarter, versus $65.48 for the quarter ended December 31, 2007 as reported by the predecessor FTD company. The strengthening U.S. Dollar versus the British Pound contributed to the majority of the decline in AOV in the 2008 fourth quarter versus the prior-year comparable quarter reported by the predecessor company.
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My guess is the average order value decline was due to an increase in drop-ship (lower price point) orders.

“Our FTD segment results for the fourth quarter reflect both the weakening consumer spending environment, which we have continued to experience in the first quarter of 2009, and the strengthening of the U.S. Dollar against the British Pound throughout the fourth quarter. We expect that adverse macroeconomic factors in both the U.S. and U.K. will continue to negatively impact the FTD segment, at least in the near term, which is reflected in our adjusted OIBDA guidance for the first quarter. Primarily as a result of the adverse change in economic conditions and equity market dynamics since we acquired FTD in August 2008, we recorded non-cash impairment charges of $175.9 million during the fourth quarter to write down the carrying value of goodwill and certain intangible assets of FTD. However, we continue to be excited about our new marketing initiatives within the FTD segment and our ability to enhance our competitive position.”
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Conference call starts in 30 minutes.
 
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Go to http://investor.untd.com/earnings.cfm and you can listen online.

So far, Goldston has been very positive on FTD's future. A few of his points:

- consumers like the return to black and gold

- the drop ship packaging won a design award

- says FTD has increased support for local florists

- says FTD is more prominently featuring florist-delivered items on FTD.com

- very excited about the revival of the FTD Districts for networking and education

- said they expect FTD sales to be down in the low to mid teens for the current quarter, but net would be much lower due to the value of the dollar to the British pound. (If you recall, Soenen's era benefited greatly from the opposite when it came to currency conversion with Interflora.)
 
So trying to keep track and extrapolate - this looks like around 6 million orders a year for FTD, last report was around 10 million for 800 - wonder what Teleflora's got?
 
CHR said:
- very excited about the revival of the FTD Districts for networking and education
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Really? Seriously?....... Really?

Well, this should be interesting... Can I wear my FloristDetective.com T-shirt?

Are they really going to "help" the florists join forces?

I'm dumb founded....
 
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Yes he claimed they were going to revitalize the education deal and have the product committees (of florists) like they used to.
 
The problem is..... most of the district activity was run on the ground (grass roots) level by local florist volunteers. How many will step forward today to give free time to FTD? How many will be willing to even pay to attend a meeting or program?

If FTD has to pay staff to organize, handle registrations & logistics, they will burn through a lot of cash fairly quickly.

IIRC someone posted last month about FTD's cancellation of their Dallas florist meeting due to lack of participation.

Maybe if they sent all the members to some exotic location in Mexico for free, they could get a good turn out. ;) :>
 
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CHR said:
The problem is..... most of the district activity was run on the ground (grass roots) level by local florist volunteers. How many will step forward today to give free time to FTD? How many will be willing to even pay to attend a meeting or program?

If FTD has to pay staff to organize, handle registrations & logistics, they will burn through a lot of cash fairly quickly.

IIRC someone posted last month about FTD's cancellation of their Dallas florist meeting due to lack of participation.

Maybe if they sent all the members to some exotic location in Mexico for free, they could get a good turn out. ;) :>
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this will not happen.

This isn't pre-1990.

There is no way FTD will ever recapture the old district membership and loyalty because the florists have no incentive to see FTD succeed on a grassroots level anymore.

Cathy, you know what it was like back in the 80's and early to mid 90's.

I still remember my parents coming home from district meetings.

I also still have the minutes I kept from our district from 1990-1997. The migration away from FTD was huge back then and it hasn't improved in the last 15 years.

No way will they rebuild the old geographic districts. I doubt they could even get near the size of the TF districts now.

Judging from the size of the membership directory vs TF, re-establishing the old districts will be futile.

joe
 
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CHR said:
Maybe if they sent all the members to some exotic location in Mexico for free, they could get a good turn out. ;) :>
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how bout next month, say around Mar 12th......I invite all you guys to my son's wedding...Mayan Riviera
 
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Hmmmm

According to a release issued by Associated Press the company posted a loss because of a hefty impairment charge related to it's new FTD business, something which doesn't appear to be mentioned in the Alpha transcript of the earnings broadcast

When I looked up what an impairment charge was it says it's a re assessment of the purchased company's worth after the the sale has been completed - a writedown from what I can make out because it wasn't as valuable as they had first thought. Does it mean the same in the States?

C
 
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Carrington said:
According to a release issued by Associated Press the company posted a loss because of a hefty impairment charge related to it's new FTD business, something which doesn't appear to be mentioned in the Alpha transcript of the earnings broadcast

When I looked up what an impairment charge was it says it's a re assessment of the purchased company's worth after the the sale has been completed - a writedown from what I can make out because it wasn't as valuable as they had first thought. Does it mean the same in the States?

C
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Yup, same thing--although they would say "because things changed" not because they thought wrong.
 
We've recently decided to dump FTD. My rep came in all grinny and said "I wish I could tell you all the things FTD is going to do for florists, but I can't tell until the formal announcement is made. We'll waive this fee and that fee for 6 months, just sign up for one more book." I said no. I have half a notion to write her and tell her what the conditions must be in order for me to stay, just to see their response. I think I'll do it.
 
I heard yesterday from one of my hardgood salesmen that ftd is up for sale again don't know who true he just said he had heard that.
 
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