FTD sold!

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Speaking of cesspools..............
We have had a blockage in our shop plumbing and it seems that it is in our area not in the rest of the mall. Plumber thinks it's a piece of hard plastic or similar as it seems to move and clears (like last Wednesday) only to block again today. Happened first when we moved in last April. I wonder what happened to that FTD sign I DESTROYED??? I sure hope I didn't flush it.................. :boggles:
If I see a FTD/Classmates pop up there might be a monitor bunging it up next week! :>
Rock on................................
 
Quote off the new FTD owner press release

"After spending many years marketing major retail brands in the fragrance, cosmetic and other image product industries and managing consumer retail businesses, I am especially looking forward to working with the thousands of FTD affiliated florists and the potential for developing specific programs designed to further invigorate the FTD florist channel and increase the number of orders delivered to that trade channel," says Mark R. Goldston, chairman, president and CEO of United Online, in a release.

Just what we need more incoming! Thanks Mark, maybe a visit to a real florist is in order?
 
Thanks for the TIP SFOX!

sfox said:
Now is the time to join more closely with FTD. Buy their technology, buy their Branded products, buy thru their fresh flower program, move your credit cards to them, buy into the websites.
Because this company will not compete will you. It's time to join with them. And if you believe anything I said, I have a bridge I want to sell you. God, it's great to be FTD!
Click to expand...

I've just been hanging back and waiting for the right opportunity to RE-JOIN-UP!

Your advice was TIMELY and with a new owner, things can only get better!

Looks to mee as if, they probably have a MUCH BIGGER WRINGER than either Perry or Green ever had.

Might as well buy three new delivery vehicles and hire three more drivers and three more designers NOW so that, I can get a jump on the curve. Just don't know if that's gonna be enough to deliver all of those $19.99 orders I'll expect to receive though?

Moving on to the question of bridges?

The Brooklyn Bridge has always been the most sought after. Then again, I have a desire for the George and Martha Washington Bridge, especially since the Port Authority just raised that toll to $6.00 and stopped the EZ PASS DISCOUNT (kind-uv-like rebates).

I'm so confused now, as to which bridge or tunnel I should buy! That's the problem with being a New Yorker! We have so many options (kind-uv-like also served bys) for Bridges and Tunnels along with TOLLS (kind-uv-like dues and fees), it makes our heads swim, especially since it's cheaper than paying their tolls.

http://www.citidex.com/113.htm#C1131

http://www.silive.com/news/index.ssf/2008/03/staten_islanders_grumble_about.html

Check em out and let me know what you think?

In the meantime, I'm gonna load up on some lube in 55 gallon drums so that, I can get to USE this new owner just like JB does! :FTDme
 
TOTO said:
In the meantime, I'm gonna load up on some lube in 55 gallon drums so that, I can get to USE this new owner just like JB does! :FTDme
Click to expand...

Here's the trick Toto.

If'n u want them to bend over, you just sprinkle hundred dollar bills on the floor, or in this case stock options.

:fdevil:

Bada-bing!
 
keith said:
I am especially looking forward to working with the thousands of FTD affiliated florists and the potential for developing specific programs designed to further invigorate the FTD florist channel and increase the number of orders delivered to that trade channel," says Mark R. Goldston, chairman, president and CEO of United Online, in a release.

Just what we need more incoming! Thanks Mark, maybe a visit to a real florist is in order?
Click to expand...
Keeping in mind the fact that order volume has not grown over the last 10 years, and that they simply move from one venue to another, their only hope is to take more away from florists, and feed them back...has to be what they mean by "looking forward to working with" and "specially designed programs"...TOTO..looks like you 'ole shell game is about to heat up...

And you folks thought I was stoooopid calling for a boycott! I may just have to go back to :drunk:

Added: Oh one other thing...I'm willing to bet Teleflora will miss another opportunity to gain market (florist) share...
 
Conference Call

John had posted the link from FTD. Worth a listen very informative.
Here is the link again
http://www.irconnect.com/untd/pages/events.html

A few comments from the first 30 minutes.

They are very excited for the purchase. Did mention the florist a couple of times. They want to enhance florist and continue to drive traffic to them. They hope to include the florist in a loyalty program from mypoints.com . The fact that thousands of florist use the logo is important to them.
They will have 1.1 billion in revenues. There are four major players in
Ftd , 1800, Tel, pro flowers. They serve 4 segments. International, Grocery, consumer and florist. FTD serves all four while the others do one well. FTD has a great brand name. Inventory free model. Florist makes FTD. same day delivery.
 
David said:
Inventory free model.
Click to expand...
Kind of like the "work from home" thing selling on the web and never touching the product, only taking a cut and having everyone else hold the bag...

OK, I'll shut up now...I do not have anything positive to say about this one...
 
What did you expect

David said:
John had posted the link from FTD. Worth a listen very informative.
Here is the link again
http://www.irconnect.com/untd/pages/events.html

A few comments from the first 30 minutes.

They are very excited for the purchase. Did mention the florist a couple of times. They want to enhance florist and continue to drive traffic to them. They hope to include the florist in a loyalty program from mypoints.com . The fact that thousands of florist use the logo is important to them.
They will have 1.1 billion in revenues. There are four major players in
Ftd , 1800, Tel, pro flowers. They serve 4 segments. International, Grocery, consumer and florist. FTD serves all four while the others do one well. FTD has a great brand name. Inventory free model. Florist makes FTD. same day delivery.
Click to expand...


What did you expect them to say? When Perry Capital bought FTD, they said great things at first. When Bob Norton came to power, he said great things. When Mike Soenon came to power he said great things.

They are just taking the company over. They are not going to tip their hand as to what they plan to do. The last thing they need, is for their" CASH COW" ie florists, to start jumping ship before they can implement their plans.

But keep in mind that they paid a hefty price for FTD, which means they will have increased costs. This means that they will need to raise even more money from their existing revenue channels again florists. Who paid the bills for the past owners, FLORISTS. Who is going to pay the bills for the new owners, FLORISTS.

Man, I am so jealous of all the FTD florists. They are now going to be part of an even deeper in debt company who will need to extract even larger sums of money from florists.

That FTD Brand belongs right up there with, ENRON, MCI, Countrywide Financial and all those other great corporations. Corporations that worked with their partners.
 
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This Was Posted On The Wall Street Journal

This was posted on the Wall Street Journal Online :

The good news: companies are negotiating mergers again. The bad news: these so-called strategic buyers don’t always seem to be acting very strategically.

Consider the Deal Journal’s “Say What?” deal of the day: today’s $465 million tie-up between United Online and FTD Group. United Online provides Internet access through its NetZero and Juno services, and flowers are sometimes sold over the Internet. Voila, an Internet marriage. Is it 1999 again?

Actually, dot-com mash-up synergies are part of United Online’s stated reasoning, as seen in the conference call to discuss the deal with analysts. United touted its “proven marketing expertise to attract consumers to FTD’s websites and thousands of member florists while cross-selling FTD products to United Online’s existing member base of more than 50 million accounts that have similar demographic characteristics as FTD’s customer base.”

Really, United Online is marrying up, buying FTD’s stronger and slightly larger business, by revenue. The combined company will get only 25% of its annual revenue from Juno and NetZero, which are still attached to the dying market of dial-up Internet access. But does every person with Internet access really want flowers? And as for the timing, if we really are in a recession in which consumers are stockpiling food and struggling to afford gas for their cars, how well is the business of discretionary items like flowers going to hold up?

United Online CEO, Mark Goldston told Deal Journal that his company should get more credit for its successful record of acquisitions; United Online bought Classmates.com in 2004, for instance, and revamped the site to boost users to 50 million from around 38 million. “This could be another one of those contrarian deals that turns out to be a jewel,” argues Goldston. “United Online has shown repeatedly that it can purchase Internet businesses that are underdeveloped and bring its marketing savvy and power of its Internet franchises to grow the revenue and profitability of businesses such as Juno, Classmates.com and MyPoints.com….the company feels it can do that again with FTD.”


Also, posted on the Wall Street Journal Online:



United Online to Acquire FTD
By DONNA KARDOS
April 30, 2008 9:53 a.m.

United Online Inc. announced plans to acquire FTD Group Inc. for about $456 million in cash, stock and notes in a deal that will combine the operator of the NetZero and Juno Internet-service providers with a huge network of florists and floral-products suppliers.

The deal values FTD at $15.08 a share, a 12% premium to FTD's closing price Tuesday. The offer is made up of $7.34 a share in cash, 0.4087 share of United Online and $3.31 worth of 13% senior secured notes. United Online also has the option to remove the notes from the bid and replace them with additional cash.

FTD stockholders would own 15% of United Online, which is expected to see higher per-share net income from the deal starting in the second quarter of 2009. After the deal closes, United Online plans to halve its dividend payment to 10 cents a share.

"This transaction will meaningfully diversify our revenue base within a large global market experiencing significant migration to the Internet," said United Online Chief Executive Mark R. Goldston.

Meanwhile, FTD announced preliminary results for its fiscal third quarter, which ended March 31. Net income is seen around $9 million, or 31 cents a share, flat with $9 million a year earlier. The latest quarter includes a one-cent tax benefit and seven cents in impacts from abandoning acquisition opportunities in light of the United Online deal. Revenue is seen rising 4.9% to $192 million.

FTD will release its results Tuesday. At that time, the company expects to reiterate its fiscal-year revenue forecast but lower its net-income outlook because of the third-quarter charges.
 
sfox said:
That FTD Brand belongs right up there with, ENRON, MCI, Countrywide Financial and all those other great corporations. Corporations that worked with their partners.
Click to expand...

Probably liberal democrats to boot.
 
Posted On Barron's

April 30, 2008, 1:25 pm
United Online To Buy FTD Group; Ups Q1 Forecast
Posted by Eric Savitz
In one of the weirdest acquisition I’ve seen in a long time, United Online (UNTD) today announced it has reached a deal to buy FTD Group (FTD) for about $15.08 in cash, stock and debt.

What makes this is a weird deal? Let me count the ways.

For starters, United Online’s core business is being an ISP: the company operates the Juno Online and Net Zero dial-up access brands. The company also operates Classmates.com, a second-tier social networking site that not that long ago tried but failed to go public, as well as MyPoints, an online loyalty marketing operation. FTD, by contrast, sells flowers via the FTD and Interflora brands. The synergies are not entirely obvious.

And then there are the convoluted deal terms. United Online will pay FTD holders $7.34 a share in cash, plus 0.4087 of a share of UNTD, plus $3.31 of 13% senior secured notes due 2013 for each FTD share. United says the package of securities and cash is worth $15.08 based on the April 29 closing price of UNTD shares of $10.83. In total, holders will get $456 million, including $222 million in cash, 12.35 million shares and $100 million in notes. United says the total acquisition price is $800 million; the difference consists of the repayment of FTD indebtedness and expenses incurred in the transaction. Current FTD holders will end up with a 15% stake in United once the deal closes.

Oh, and holders will have the option of taking $10.15 in cash and 0.4087 of a share of UNTD, and skipping the note, although the total value per share then drops to $14.58.

Ya still with me?

To fund the deal, United has enlisted Wells Fargo, which is committing $375 million in term loans to FTD, and a $75 million revolving credit facility for working capital requirements of FTD. Existing 7.75% FTD senior notes will be retired. The company said that affiliates of Leonard Green & Partners, which owns 31.7% of FTD, have agree to vote in favor of the deal.

After the deal, United will cut its dividend to 10 cents a share from 20 cents.

Meanwhile, United today said it now sees Q1 revenue of $121 million to $121.8 million, ahead of its previous forecast of $116 million to $120 million, with adjusted OIBDA of $38.1 million to $38.7 million, up from $30 million to $34 million. The company sees adjusted EPS of 30-31 cents, above the Street consensus of 24 cents.

And finally, FTD Group today said it expects to report revenue for its fiscal third quarter ended March 31 of $192 million, with profits of 31 cents a share. The Street had expected $192.8 million and 38 cents. The company said the company’s latest quarter profits were reduced by 7 cents due to “abandoned opportunities in light of the pending acquisition” of the company and advisory costs related to a sales tax audit. FTD said it still sees full year revenue of $645 million; its EPS guidance for the full year is trimmed to $1.31, from $1.35. FTD will report full results on Tuesday.

UNTD shares today are down 35 cents, or 3.2%, to $10.48. FTD Group is up 19 cents, or 1.4%, to $13.69.

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BOSS said:
And you folks thought I was stoooopid calling for a boycott! I may just have to go back to :drunk:

Added: Oh one other thing...I'm willing to bet Teleflora will miss another opportunity to gain market (florist) share...
Click to expand...


Can you Smellllllllllllllllllllllllllllll what the BOSS is cookin'
 
From Bloomberg:

Dial-up Internet access is going the way of the dinosaur, not to mention buggy whips and eight-track tapes. That's reason enough for United Online Inc., the owner of the Juno and NetZero services, to go into the flower-delivery business.

United Online's proposed purchase of FTD Group Inc. for $456 million in cash, stock and notes would allow the Woodland Hills, California-based company to start generating most of its revenue from businesses other than access. The company owns the Classmates social-networking site and MyPoints rewards program.
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Emphasis mine. So they purchased a 'forward thinking company'? Seems like wire services belong right there with buggy whips & eight-track tapes.

A friend surmised that the dial-up customer set from United Online is most likely older and lower income. He thinks they may have purchased FTD to take advantage of unsold ad space on their ISPs and in the open market. They'll hammer users with loads of ad impressions, but that still doesn't keep customers. Only a quality shopping experience will do that over the long haul.

A 1.5 star rating in Yahoo Shopping, equally as dismal marks in other consumer ratings sites and fierce competition from all around will make it very difficult to maintain let alone grow the retail segment in the US.

And somebody must be halucinating to think florist members want FTD to 'get more orders for them' the way they've gone about it the last few years.

FTD (Interflora) has succeeded in the UK mainly because florists can only be a member of one wire service there, and Interflora limits the number of members in a service area. Carrington can tell you that Interflora forbids its members from even participating in her Master Florists group - which only exists to help consumers find quality local florists, not to serve as a relay organization.

These guys spent $800m to buy FTD (including the purchade price and assumed debt of $350 million or so.) Do you think they plan on giving local florists a better deal? (At least you'll probably get offered a good price on dial-up internet services.) Expect their MyPoints service (similar to Web Loyalty) to be tacked on to your shopping carts soon.

Anyway....dinosours, buggy whips and FTD do seem to go together.
 
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