Press Releases
Board of Directors Appoints Scott D. Levin President and Chief Executive Officer
Reiterates Outlook for Full-Year 2018
Provides Initial Outlook for Full-Year 2019
“The chance to lead
Third Quarter Results
Consolidated revenues were
Net loss was
Adjusted EBITDA was a loss of
Nine-Month Results
Consolidated revenues were
Net loss was
Adjusted EBITDA was
Segment Results
U.S. Consumer Segment: U.S. Consumer segment revenues for the third quarter of 2018 decreased 7.2% to
U.S. Consumer segment revenues for the nine months ended
Florist Segment: Florist segment revenues for the third quarter of 2018 decreased 10.0% to
Florist segment revenues for the nine months ended
International Segment: International segment revenues for the third quarter of 2018 decreased 8.1% to
International segment revenues for the nine months ended
Balance Sheet, Cash Flow, and Financing Initiatives
Net cash used for operating activities was
Cash and cash equivalents were
2018 Business Outlook
- Consolidated revenues of
$1.02 billion to $1.03 billion ; - Adjusted EBITDA of approximately $37 million to
$41 million ; and - Capital expenditures of
$35 million to $38 million .
Initial Full-Year 2019 Business Outlook
- Consolidated revenues of
$1.03 billion to $1.06 billion ; - Adjusted EBITDA of approximately $58 million to
$68 million ; and - Capital expenditures of
$35 million to $40 million .
In connection with the full-year 2018 and 2019 outlooks provided above, please note that the seasonality of the Company’s business impacts the quarterly pattern of its profitability and cash flows from operations.
The Company is not providing 2018 or 2019 guidance for net income/(loss), the GAAP measure most directly comparable to Adjusted EBITDA, and similarly cannot provide a reconciliation between its forecasted Adjusted EBITDA and net income/(loss) metrics without unreasonable effort due to the unavailability of reliable estimates for certain items including transaction-related costs, impairments of goodwill, intangible assets, and other long-lived assets, and discrete tax items. These items may vary significantly between periods and could materially impact future financial results.
Conference Call
The Company will be hosting a conference call today,
A telephonic playback and archived webcast will be available through
About
Cautionary Information Regarding Forward-Looking Statements
This release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on our current expectations, estimates, and projections about our operations, industry, financial condition, performance, results of operations, and liquidity. Statements containing words such as “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “projections,” “business outlook,” “estimate,” or similar expressions constitute forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the exploration of strategic alternatives; the strategic and financial evaluation of the Company’s business; the Company’s corporate restructuring and cost savings plan and other strategies; and future financial performance, including 2018 and 2019 financial outlooks discussed herein. Potential factors that could affect these forward-looking statements include, among others, uncertainties associated with being able to identify, evaluate, or complete any strategic alternative or strategic transaction; the impact of the announcement of the Company’s review of strategic alternatives, as well as any strategic alternative or strategic transaction that may be pursued, on the Company’s business, including its financial and operating results and its employees, suppliers, and customers; the Company’s ability to implement and realize anticipated benefits from its corporate restructuring and cost savings plan and other initiatives; the Company’s ability to repay, refinance, or restructure its outstanding debt; and the other factors disclosed in the Company’s most recent Annual Report on Form 10-K, its most recent Quarterly Report on Form 10-Q, and the Company’s other filings with the Securities and Exchange Commission (www.sec.gov), as updated from time to time in our subsequent filings with the SEC, including, without limitation, information under the captions “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors.” Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company’s analysis only as of the date hereof. Such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that may cause actual performance and results to differ materially from those predicted. Except as required by law, we undertake no obligation to publicly release the results of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Non-GAAP Measures
To supplement the Company’s consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses Adjusted EBITDA as a measure of certain components of financial performance. The Company’s definition of Adjusted EBITDA, as set forth below, may be modified from time to time.
Management believes that Adjusted EBITDA is an important measure of operating performance because it allows for a period-to-period comparison of the Company’s operating performance by removing the impact of the Company’s capital structure (interest expense on outstanding debt), asset base (depreciation, amortization, and impairment charges), tax consequences, stock-based compensation, and certain other items that are not considered reflective of the Company’s core operations. The Company further emphasizes the importance of Adjusted EBITDA as an operating performance measure by utilizing the Adjusted EBITDA measure as a basis for determining certain incentive compensation targets for certain members of the Company’s management. The Adjusted EBITDA measure also is used as a performance measure under the Company’s senior secured credit facility and includes adjustments such as the items defined above and other further adjustments, which are defined in the senior secured credit facility.
Management believes that presenting this non-GAAP financial measure provides additional information to facilitate comparison of the Company’s historical operating results and trends in its underlying operating results and provides additional transparency on how the Company evaluates its businesses.
In addition to the use of this non-GAAP measure by management for the purposes outlined above, the Company believes Adjusted EBITDA is a measure widely used by securities analysts, investors, and others to evaluate the financial performance of the Company and its competitors.
Adjusted EBITDA is not determined in accordance with GAAP and should be considered in addition to, not as a substitute for, or superior to financial measures determined in accordance with GAAP. A limitation associated with the use of Adjusted EBITDA is that it does not reflect depreciation and amortization expense for various long-lived assets, impairment charges, interest expense, income taxes, and other items that have been and will be incurred. Each of these items should also be considered in the overall evaluation of the Company’s results. In addition, Adjusted EBITDA does not reflect capital expenditures and other investing activities. An additional limitation associated with Adjusted EBITDA is that the measure does not include stock-based compensation expenses related to the Company’s workforce. A further limitation associated with the use of this non-GAAP financial measure is that it does not reflect expenses or gains that are not considered reflective of the Company’s core operations. Management compensates for these limitations by providing the relevant disclosure of its depreciation and amortization, impairment charges, interest and income tax expenses, capital expenditures, stock-based compensation, and other items within its financial press releases and
A further limitation associated with the use of this measure is that the term “Adjusted EBITDA” does not have a standardized meaning. Therefore, other companies may use the same or a similarly named measure but exclude different items or use different computations, which may not provide investors a comparable view of the Company’s performance in relation to other companies. Management compensates for this limitation by presenting the most comparable GAAP measure: net income/(loss), directly ahead of Adjusted EBITDA; within this and other financial press releases and by providing reconciliations that show and describe the adjustments made. In addition, many of the adjustments to the Company’s GAAP financial measures reflect the exclusion of items that are recurring in nature and will be reflected in the Company’s financial results for the foreseeable future.
Definitions
(1) Segment operating income/(loss). The Company’s chief operating decision maker uses segment operating income/(loss) to evaluate the performance of the business segments and to make decisions about allocating resources among segments. Segment operating income/(loss) is operating income/(loss) excluding depreciation, amortization, impairment of goodwill, intangible assets, and other long-lived assets, litigation and dispute settlement charges and gains, transaction-related costs, restructuring and other exit costs, and corporate reorganization costs. In addition, stock-based and incentive compensation and general corporate expenses are not allocated to the segments. Segment operating income/(loss) is prior to intersegment eliminations and excludes other income/(expense), net. Please refer to the tables in this press release for a reconciliation of segment operating income/(loss) to net income/(loss).
(2) Consumer orders. The Company monitors the number of consumer orders for floral, gift, and related products during a given period. Consumer orders are individual units delivered during the period that were originated through our consumer websites, associated mobile sites and applications, and various telephone numbers. The number of consumer orders is not adjusted for non-delivered orders that are refunded on or after the scheduled delivery date. Orders originating with a florist or other retail location for delivery to consumers are not included as part of this number.
(3) Average order value. The Company monitors the average value for consumer orders delivered in a given period, which is referred to as the average order value. Average order value represents the average amount received for consumer orders delivered during a period. The average order value of consumer orders within the U.S. Consumer and International segments is tracked in their local currency, the U.S. Dollar for the U.S. Consumer segment and the British Pound for the International segment. The local currency amounts received for the International segment are then translated into U.S. dollars at the average currency exchange rate for the period. Average order value includes merchandise revenues and shipping or service fees paid by the consumer, less discounts and refunds (net of refund-related fees charged to floral network members).
(4) Average revenues per member. The Company monitors average revenues per member for floral network members in the Florist segment. Average revenues per member represents the average revenues earned from a member of the Company’s floral network during a period. Revenues include services revenues and products revenues, but exclude revenues from sales to non-members. Floral network members include retail florists and other non-florist retail locations that offer floral and gifting solutions. Average revenues per member is calculated by dividing Florist segment revenues for the period, excluding sales to non-members, by the average number of floral network members for the period.
(5) Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”). The Company defines Adjusted EBITDA as net income/(loss) before net interest expense; provision for/(benefit from) income taxes; depreciation; amortization; impairment of goodwill, intangible assets, and other long-lived assets; stock-based compensation; transaction-related costs; litigation and dispute settlement charges and gains; gains on sale of business; restructuring and other exit costs; and corporate reorganization costs.
Litigation and dispute settlement charges and gains include estimated losses for which the Company has established a reserve, as well as actual settlements, judgments, fines, penalties, assessments or other resolutions against, or in favor of, the Company related to litigation, arbitration, investigations, disputes, or similar matters. Insurance recoveries received by the Company related to such matters are also included in these adjustments.
Transaction-related costs are certain expense items resulting from actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, (i) transaction-related bonuses and (ii) expenses for advisors and representatives such as investment bankers, consultants, attorneys, and accounting firms. Transaction-related costs may also include, without limitation, transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees, in addition to consulting, compensation, and other incremental costs associated with integration projects.
Corporate reorganization costs are costs, other than restructuring and other exit costs, associated with our corporate restructuring and cost savings plan such as financial consulting fees, retention bonuses for key employees, travel expenses related to transition of responsibilities between locations, and other similar costs.
(6) Free Cash Flow. The Company defines Free Cash Flow as net cash provided by or used for operating activities less capital expenditures, plus cash paid for transaction-related costs, cash paid or received for litigation and dispute settlement charges or gains, cash paid for restructuring and other exit costs, and cash paid for corporate reorganization costs.
FTD COMPANIES, INC. | ||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues: | ||||||||||||||||
U.S. Consumer segment | $ | 91,160 | $ | 98,264 | $ | 547,603 | $ | 586,739 | ||||||||
Florist segment | 31,184 | 34,665 | 115,316 | 125,261 | ||||||||||||
International segment | 28,936 | 31,477 | 114,965 | 106,416 | ||||||||||||
Intersegment eliminations | (2,659 | ) | (3,102 | ) | (11,172 | ) | (12,473 | ) | ||||||||
Total revenues | 148,621 | 161,304 | 766,712 | 805,943 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of revenues | 96,801 | 103,175 | 502,030 | 502,728 | ||||||||||||
Sales and marketing | 36,202 | 36,450 | 189,551 | 181,570 | ||||||||||||
General and administrative | 25,249 | 27,656 | 74,083 | 83,450 | ||||||||||||
Amortization of intangible assets | 314 | 3,820 | 3,311 | 11,459 | ||||||||||||
Restructuring and other exit costs | 18,097 | 1,113 | 18,097 | 2,057 | ||||||||||||
Impairment of goodwill, intangible assets, and other long-lived assets | 411 | 105,735 | 139,627 | 105,735 | ||||||||||||
Total operating expenses | 177,074 | 277,949 | 926,699 | 886,999 | ||||||||||||
Operating loss | (28,453 | ) | (116,645 | ) | (159,987 | ) | (81,056 | ) | ||||||||
Interest expense, net | (5,691 | ) | (2,599 | ) | (12,566 | ) | (7,312 | ) | ||||||||
Other income, net | 706 | 126 | 842 | 324 | ||||||||||||
Net loss before income taxes | (33,438 | ) | (119,118 | ) | (171,711 | ) | (88,044 | ) | ||||||||
Benefit from income taxes | (2,228 | ) | (19,799 | ) | (15,820 | ) | (7,464 | ) | ||||||||
Net Loss | $ | (31,210 | ) | $ | (99,319 | ) | $ | (155,891 | ) | $ | (80,580 | ) | ||||
Loss per common share | ||||||||||||||||
Basic loss per share | $ | (1.11 | ) | $ | (3.61 | ) | $ | (5.59 | ) | $ | (2.93 | ) | ||||
Diluted loss per share | $ | (1.11 | ) | $ | (3.61 | ) | $ | (5.59 | ) | $ | (2.93 | ) | ||||
Average Shares Outstanding: | ||||||||||||||||
Basic | 28,154 | 27,546 | 27,886 | 27,459 | ||||||||||||
Diluted | 28,154 | 27,546 | 27,886 | 27,459 | ||||||||||||
FTD COMPANIES, INC. | ||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands) | ||||||
September 30, 2018 |
December 31, 2017 |
|||||
ASSETS | ||||||
Cash and cash equivalents | $ | 23,124 | $ | 29,496 | ||
Accounts receivable, net | 23,829 | 26,028 | ||||
Inventories | 30,148 | 25,356 | ||||
Property and equipment, net | 47,598 | 33,880 | ||||
Intangible assets, net | 104,149 | 181,965 | ||||
Goodwill | 210,935 | 277,041 | ||||
Other assets | 21,712 | 36,559 | ||||
Total assets | $ | 461,495 | $ | 610,325 | ||
LIABILITIES AND EQUITY | ||||||
Accounts payable and accrued liabilities | $ | 110,257 | $ | 161,799 | ||
Debt | 255,904 | 189,666 | ||||
Deferred tax liabilities, net | 9,659 | 30,854 | ||||
Other liabilities | 17,712 | 13,482 | ||||
Total liabilities | 393,532 | 395,801 | ||||
Total equity | 67,963 | 214,524 | ||||
Total liabilities and equity | $ | 461,495 | $ | 610,325 | ||
FTD COMPANIES, INC. | |||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net loss | $ | (31,210 | ) | $ | (99,319 | ) | $ | (155,891 | ) | $ | (80,580 | ) | |||
Adjustments to reconcile net loss to net cash used for operating activities: | |||||||||||||||
Depreciation and amortization | 3,342 | 9,194 | 11,562 | 27,778 | |||||||||||
Impairment of goodwill, intangible assets, and other long-lived assets | 411 | 105,735 | 139,627 | 105,735 | |||||||||||
Stock-based compensation | 7,494 | 2,351 | 12,904 | 8,221 | |||||||||||
Provision for doubtful accounts receivable | 859 | 736 | 1,926 | 1,515 | |||||||||||
Amortization of deferred financing fees | 1,096 | 340 | 2,154 | 1,020 | |||||||||||
Deferred taxes, net | (717 | ) | (19,072 | ) | (21,149 | ) | (17,314 | ) | |||||||
Gain on sale of business | (426 | ) | — | (426 | ) | — | |||||||||
Other, net | (230 | ) | (25 | ) | (138 | ) | (95 | ) | |||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable, net | (3,256 | ) | (2,964 | ) | 329 | 923 | |||||||||
Inventories | (5,330 | ) | (5,940 | ) | (4,801 | ) | (5,770 | ) | |||||||
Prepaid expenses and other assets | 1,259 | (910 | ) | 4,751 | 4,139 | ||||||||||
Accounts payable and accrued liabilities | (27,081 | ) | (26,175 | ) | (50,168 | ) | (62,235 | ) | |||||||
Income taxes receivable or payable | (1,942 | ) | (1,099 | ) | 572 | (1,033 | ) | ||||||||
Other liabilities | 1,226 | (605 | ) | 2,657 | (448 | ) | |||||||||
Net cash used for operating activities | (54,505 | ) | (37,753 | ) | (56,091 | ) | (18,144 | ) | |||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment | (10,074 | ) | (4,307 | ) | (26,354 | ) | (10,677 | ) | |||||||
Proceeds from life insurance | — | — | 10,003 | — | |||||||||||
Proceeds from sale of business | 2,186 | — | 2,186 | — | |||||||||||
Net cash used for investing activities | (7,888 | ) | (4,307 | ) | (14,165 | ) | (10,677 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from revolving lines of credit | 87,000 | 20,000 | 272,000 | 90,000 | |||||||||||
Payments on term debt and revolving lines of credit | (21,346 | ) | (30,000 | ) | (203,346 | ) | (115,000 | ) | |||||||
Purchases from employee stock plan | — | — | 412 | 1,042 | |||||||||||
Payments for debt financing fees | (535 | ) | — | (4,569 | ) | — | |||||||||
Repurchases of common stock withheld for taxes | (34 | ) | (14 | ) | (494 | ) | (1,983 | ) | |||||||
Net cash provided by/(used for) financing activities | 65,085 | (10,014 | ) | 64,003 | (25,941 | ) | |||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (4 | ) | 563 | (119 | ) | 1,605 | |||||||||
Change in cash and cash equivalents | 2,688 | (51,511 | ) | (6,372 | ) | (53,157 | ) | ||||||||
Cash and cash equivalents, beginning of period | 20,436 | 79,356 | 29,496 | 81,002 | |||||||||||
Cash and cash equivalents, end of period | $ | 23,124 | $ | 27,845 | $ | 23,124 | $ | 27,845 | |||||||
Supplemental Cash Flow Information: | |||||||||||||||
Cash paid for interest | $ | 4,277 | $ | 2,187 | $ | 10,010 | $ | 6,261 | |||||||
Cash paid for income taxes, net | 512 | 615 | 4,293 | 11,132 | |||||||||||
Cash paid for restructuring and other exit costs | 2,119 | 3,906 | 2,459 | 7,139 | |||||||||||
Cash paid for corporate reorganization costs | 1,108 | — | 1,108 | — | |||||||||||
Cash paid for litigation and dispute settlement charges | — | — | — | 25 | |||||||||||
Cash paid for transaction and integration costs | 168 | 77 | 235 | 2,133 | |||||||||||
FTD COMPANIES, INC. | |||||||||||||||
UNAUDITED SEGMENT INFORMATION | |||||||||||||||
(in thousands, except average order values, average revenues per member, and average currency exchange rates) |
|||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
U.S. Consumer: | |||||||||||||||
Segment revenues | $ | 91,160 | $ | 98,264 | $ | 547,603 | $ | 586,739 | |||||||
Segment operating income/(loss) (1) | $ | (8,234 | ) | $ | (3,079 | ) | $ | (9,994 | ) | $ | 37,146 | ||||
Consumer orders (2) | 1,580 | 1,636 | 9,672 | 10,137 | |||||||||||
Average order value (3) | $ | 55.43 | $ | 57.51 | $ | 55.01 | $ | 56.22 | |||||||
Florist: | |||||||||||||||
Segment revenues | $ | 31,184 | $ | 34,665 | $ | 115,316 | $ | 125,261 | |||||||
Segment operating income (1) | $ | 8,837 | $ | 9,552 | $ | 31,951 | $ | 35,757 | |||||||
Average revenues per member (4) | $ | 3,180 | $ | 3,263 | $ | 11,257 | $ | 11,397 | |||||||
International: | |||||||||||||||
In USD: | |||||||||||||||
Segment revenues | $ | 28,936 | $ | 31,477 | $ | 114,965 | $ | 106,416 | |||||||
Segment operating income (1) | $ | 1,963 | $ | 3,384 | $ | 11,728 | $ | 11,982 | |||||||
Consumer orders (2) | 565 | 559 | 2,042 | 1,933 | |||||||||||
Average order value (3) | $ | 44.32 | $ | 46.86 | $ | 46.58 | $ | 45.48 | |||||||
In GBP: | |||||||||||||||
Segment revenues | £ | 22,183 | £ | 24,017 | £ | 84,447 | £ | 83,696 | |||||||
Average order value (3) | £ | 34.01 | £ | 35.78 | £ | 34.26 | £ | 35.78 | |||||||
Average currency exchange rate: GBP to USD | 1.30 | 1.31 | 1.36 | 1.27 | |||||||||||
FTD COMPANIES, INC. | ||||||||||||||||
UNAUDITED RECONCILIATIONS | ||||||||||||||||
(in thousands) | ||||||||||||||||
The following tables contain reconciliations of Adjusted EBITDA and Free Cash Flow to financial measures reported in accordance with Generally Accepted Accounting Principles ("GAAP"). |
||||||||||||||||
RECONCILIATION OF SEGMENT OPERATING INCOME/(LOSS) TO NET LOSS AND NET LOSS TO ADJUSTED EBITDA |
||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2018 |
2017 |
2018 |
2017 |
|||||||||||||
Segment Operating Income/(loss) (1) : | ||||||||||||||||
U.S. Consumer | $ | (8,234 | ) | $ | (3,079 | ) | $ | (9,994 | ) | $ | 37,146 | |||||
Florist | 8,837 | 9,552 | 31,951 | 35,757 | ||||||||||||
International | 1,963 | 3,384 | 11,728 | 11,982 | ||||||||||||
Unallocated expenses | (27,266 | ) | (11,573 | ) | (42,483 | ) | (32,428 | ) | ||||||||
Impairment of goodwill, intangible assets, and other long-lived assets | (411 | ) | (105,735 | ) | (139,627 | ) | (105,735 | ) | ||||||||
Depreciation and amortization | (3,342 | ) | (9,194 | ) | (11,562 | ) | (27,778 | ) | ||||||||
Operating loss | (28,453 | ) | (116,645 | ) | (159,987 | ) | (81,056 | ) | ||||||||
Interest expense, net | (5,691 | ) | (2,599 | ) | (12,566 | ) | (7,312 | ) | ||||||||
Other income, net | 706 | 126 | 842 | 324 | ||||||||||||
Benefit from income taxes | 2,228 | 19,799 | 15,820 | 7,464 | ||||||||||||
Net loss (GAAP Basis) | $ | (31,210 | ) | $ | (99,319 | ) | $ | (155,891 | ) | $ | (80,580 | ) | ||||
Net loss (GAAP Basis) | $ | (31,210 | ) | $ | (99,319 | ) | $ | (155,891 | ) | $ | (80,580 | ) | ||||
Interest expense, net | 5,691 | 2,599 | 12,566 | 7,312 | ||||||||||||
Benefit from income taxes | (2,228 | ) | (19,799 | ) | (15,820 | ) | (7,464 | ) | ||||||||
Depreciation and amortization | 3,342 | 9,194 | 11,562 | 27,778 | ||||||||||||
Stock-based compensation | 1,971 | 2,351 | 7,381 | 8,221 | ||||||||||||
Transaction and integration costs | 712 | 40 | 912 | 1,110 | ||||||||||||
Litigation and dispute settlement charges | 2 | — | 190 | — | ||||||||||||
Impairment of goodwill, intangible assets, and other long-lived assets | 411 | 105,735 | 139,627 | 105,735 | ||||||||||||
Gain on sale of business | (426 | ) | — | (426 | ) | — | ||||||||||
Corporate reorganzation costs | 2,682 | — | 2,682 | — | ||||||||||||
Restructuring and other exit costs | 18,097 | 1,113 | 18,097 | 2,057 | ||||||||||||
Adjusted EBITDA (5) | $ | (956 | ) | $ | 1,914 | $ | 20,880 | $ | 64,169 | |||||||
RECONCILIATION OF NET CASH USED FOR OPERATING ACTIVITIES TO FREE CASH FLOW |
||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2018 |
2017 |
2018 |
2017 |
|||||||||||||
Net cash used for operating activities (GAAP Basis) | $ | (54,505 | ) | $ | (37,753 | ) | $ | (56,091 | ) | $ | (18,144 | ) | ||||
Capital expenditures | (10,074 | ) | (4,307 | ) | (26,354 | ) | (10,677 | ) | ||||||||
Cash paid for transaction and integration costs | 168 | 77 | 235 | 2,133 | ||||||||||||
Cash paid for litigation and dispute settlement charges | — | — | — | 25 | ||||||||||||
Cash paid for corporate reorganization costs | 1,108 | — | 1,108 | — | ||||||||||||
Cash paid for restructuring and other exit costs | 2,119 | 3,906 | 2,459 | 7,139 | ||||||||||||
Free Cash Flow (6) | $ | (61,184 | ) | $ | (38,077 | ) | $ | (78,643 | ) | $ | (19,524 | ) | ||||
Contacts
Investor Relations:
646-277-1228
ir@ftdi.com
Source: FTD Companies, Inc.