FTD Quarter Apr-June '09

[CHR]

I'm listening to the conference call right now....

FTD numbers are out as part of the earnings announcement for United Online.

In a nut shell, year over year comparisons (same period last year when it was owned by FTD) revenues down 15% and average sale down 5%.

• Segment revenues, including a $7.7 million year-over-year negative impact from foreign currency exchange rates, were $149.2 million, a decrease of 15% versus the year-ago quarter.
• Segment revenues in constant currency terms decreased 10% versus the year-ago quarter, excluding the impact from foreign currency exchange rates resulting from a strengthened U.S. Dollar versus the British Pound.
• Segment adjusted OIBDA(1) was $26.2 million, representing 17.5% of segment revenues, the segment’s highest quarterly operating margin since the acquisition by United Online.
• Consumer orders were 1.7 million, a decrease of 11% versus the year-ago quarter.
• Average order value, including a $3.69 year-over-year negative impact from foreign currency exchange rates resulting from a strengthened U.S. Dollar versus the British Pound, was $59.78, a 5% decrease versus an AOV of $62.67 in the year-ago quarter. AOV in constant currency terms increased 1% versus the year-ago quarter, excluding the negative impact of foreign currency exchange rates.

Goldston has mentioned the following so far:

- FTD is receiving enthusiastic support from its florists
- The TV Commercial aired at Mother's Day was popular
- FTD.com has received benefit from increased attention to SEO
- Nearly 50% of all Mother's Day online shoppers opted for an upgrade on the products where FTD showed 3 different price point photos. (!)
- Competitors were aggressively discounting in their advertising
- Based on feedback from his Keynote speech at Superfloral, he believes the florist community is very supportive of the company.

What I don't 'get': In talking about the dial-up customers (who UNTD at one time said would be a perfect fit for FTD), they painted a rather 'lower income' picture of their customers.

They appear to have a significant problem with recurring credit card charges on both the ISP and Classmates.com. A significant number of their customers had CCs declined for payment.

The conference call is still going on - will update later...

 

[clay]

I can see where the images (yes, I know some are photoshopped, wrong flower count, pushed to the front, etc., etc.) of 3 different price points of the same arrangement can be something to persuade an upsale. I would like to include that as a feature on our website....but that means it would take 2 more designs for each arrangement...ugg.

I think 800 flowers is doing some now....not sure of TF.

 

[BOSS]

- Based on feedback from his Keynote speech at Superfloral, he believes the florist community is very supportive of the company.

Like I said in another thread... florists are stooopid... (I think Goldston is reading tea leaves)

What I don't 'get': In talking about the dial-up customers (who UNTD at one time said would be a perfect fit for FTD), they painted a rather 'lower income' picture of their customers.

They appear to have a significant problem with recurring credit card charges on both the ISP and Classmates.com. A significant number of their customers had CCs declined for payment.

One would think "dial up customers" would be in the lower income bracket yes? no?, obviously some of them would be based on availability of high speed...

The recurring declines could simply be folks registering with one CC and changing cards due to CC company offers/interest rates, failure to update etc... I see it often on Standing Orders, that are placed for a year or more of deliveries...folks forget to update data...

 

[sfox]

What I find interesting is the way FTD's financials are being reported.

The old FTD reported florist and consumer segments, this new way only shows FTD as a whole, making it very difficult to make comparisons.