Document



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
Form 8-K
 
CURRENT REPORT
 
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): May 8, 2018
 
FTD Companies, Inc.
(Exact Name of Registrant as Specified in Charter)
 
Delaware
 
001-35901
 
32-0255852
(State or Other jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
3113 Woodcreek Drive
Downers Grove, Illinois 60515
(Address of Principal Executive Offices) (ZIP Code)
Telephone: (630) 719-7800
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging Growth Company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o






Item 2.02
Results of Operations and Financial Condition

FTD Companies, Inc. (the “Company”) has revised its reportable segments effective January 1, 2018. The Company’s financial results will now be presented as three reportable segments: U.S. Consumer, Florist, and International. The change in segments is as a result of a change in the information provided to and utilized by the Company’s Chief Executive Officer (who is also the Company’s Chief Operating Decision Maker) to assess the performance of the business. The Company combined the previous Provide Commerce and Consumer segments into the U.S. Consumer segment, which is comprised of the FTD.com, ProFlowers, Gourmet Foods, and Personal Creations businesses.

This realignment has no impact on the Company’s historical consolidated balance sheet, statement of operations, or cash flows. Exhibit 99.1 includes selected supplemental financial information related to the Company’s previously issued historical financial information for the years ended December 31, 2017, 2016, and 2015 and the quarterly periods within the years ended December 31, 2017 and 2016 as revised consistent with the reorganization of the Company’s reportable segments. This information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

The information in this Item 2.02 and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01    Financial Statements and Exhibits.
(d)    Exhibits
Exhibit
Description
Supplemental Financial Information Related to Changes in Reportable Segments






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
FTD COMPANIES, INC.
Dated:
May 8, 2018
By:
/s/ Steven D. Barnhart
 
 
Name:
Steven D. Barnhart
 
 
Title:
Executive Vice President, Chief Financial Officer



Exhibit



Exhibit 99.1

FTD Companies, Inc.
Segment Information
For the Year Ended December 31, 2017
(Unaudited, dollars in thousands)

 
 
As Originally Reported
 
As Revised
 
 
Quarterly Periods Ended
 
Year Ended
 
Quarterly Periods Ended
 
Year Ended
 
 
Mar 31, 2017
 
Jun 30, 2017
 
Sep 30, 2017
 
Dec 31, 2017
 
Dec 31, 2017
 
Mar 31, 2017
 
Jun 30, 2017
 
Sep 30, 2017
 
Dec 31, 2017
 
Dec 31, 2017
U.S. Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 

 

 

 

 

 
$
228,672

 
$
259,804

 
$
98,264

 
$
202,272

 
$
789,011

Intersegment Revenues
 

 

 

 

 

 
$
(4,318
)
 
$
(4,835
)
 
$
(3,030
)
 
$
(4,119
)
 
$
(16,302
)
Operating Income/(Loss)
 

 

 

 

 

 
$
19,107

 
$
21,120

 
$
(3,079
)
 
$
9,291

 
$
46,439

Consumer Orders
 

 

 

 

 

 
3,847

 
4,654

 
1,636

 
4,788

 
14,926

Average Order Value
 

 

 

 

 

 
$
57.89

 
$
54.39

 
$
57.51

 
$
40.91

 
$
51.31

Operating Margin
 

 

 

 

 

 
8
%
 
8
%
 
(3
)%
 
5
%
 
6
%
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

Provide Commerce
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
155,868

 
$
179,691

 
$
54,633

 
$
140,733

 
$
530,926

 

 

 

 

 

Intersegment Revenues
 
$
(476
)
 
$
(505
)
 
$
(355
)
 
$
(336
)
 
$
(1,672
)
 

 

 

 

 

Operating Income/(Loss)
 
$
13,447

 
$
14,543

 
$
(6,304
)
 
$
6,076

 
$
27,764

 

 

 

 

 

Consumer Orders
 
2,906

 
3,562

 
1,081

 
3,969

 
11,518

 

 

 

 

 

Average Order Value
 
$
52.99

 
$
49.86

 
$
49.30

 
$
34.83

 
$
45.41

 

 

 

 

 

Operating Margin
 
9
%
 
8
%
 
(12
)%
 
4
%
 
5
%
 

 

 

 

 

 
 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
72,804

 
$
80,113

 
$
43,631

 
$
61,539

 
$
258,085

 

 

 

 

 

Intersegment Revenues
 
$
(3,842
)
 
$
(4,330
)
 
$
(2,675
)
 
$
(3,783
)
 
$
(14,630
)
 

 

 

 

 

Operating Income
 
$
5,660

 
$
6,577

 
$
3,225

 
$
3,215

 
$
18,675

 

 

 

 

 

Consumer Orders
 
941

 
1,092

 
555

 
819

 
3,408

 

 

 

 

 

Average Order Value
 
$
73.05

 
$
69.17

 
$
73.51

 
$
70.36

 
$
71.23

 

 

 

 

 

Operating Margin
 
8
%
 
8
%
 
7
 %
 
5
%
 
7
%
 

 

 

 

 


Note: There are no changes to results previously presented for the Florist and International segments for the periods disclosed. Therefore, the results of those segments are not presented herein.




FTD Companies, Inc.
Segment Information
For the Year Ended December 31, 2016
(Unaudited, dollars in thousands)
 
 
As Originally Reported
 
As Revised
 
 
Quarterly Periods Ended
 
Year Ended
 
Quarterly Periods Ended
 
Year Ended
 
 
Mar 31, 2016
 
Jun 30, 2016
 
Sep 30, 2016
 
Dec 31, 2016
 
Dec 31, 2016
 
Mar 31, 2016
 
Jun 30, 2016
 
Sep 30, 2016
 
Dec 31, 2016
 
Dec 31, 2016
U.S. Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 

 

 

 

 

 
$
235,704

 
$
267,418

 
$
108,372

 
$
209,514

 
$
821,008

Intersegment Revenues
 

 

 

 

 

 
$
(4,781
)
 
$
(5,557
)
 
$
(3,391
)
 
$
(4,523
)
 
$
(18,252
)
Operating Income
 

 

 

 

 

 
$
13,505

 
$
33,055

 
$
3,172

 
$
20,992

 
$
70,724

Consumer Orders
 

 

 

 

 

 
4,145

 
4,765

 
1,760

 
4,624

 
15,293

Average Order Value
 

 

 

 

 

 
$
55.34

 
$
54.58

 
$
58.84

 
$
43.93

 
$
52.06

Operating Margin
 

 

 

 

 

 
6
%
 
12
%
 
3
%
 
10
%
 
9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Provide Commerce
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
157,097

 
$
176,542

 
$
57,112

 
$
138,982

 
$
529,733

 

 

 

 

 

Intersegment Revenues
 
$
(610
)
 
$
(656
)
 
$
(440
)
 
$
(391
)
 
$
(2,097
)
 

 

 

 

 

Operating Income/(Loss)
 
$
7,076

 
$
22,177

 
$
(1,847
)
 
$
13,108

 
$
40,514

 

 

 

 

 

Consumer Orders
 
3,123

 
3,542

 
1,115

 
3,692

 
11,472

 

 

 

 

 

Average Order Value
 
$
49.69

 
$
49.22

 
$
49.78

 
$
37.09

 
$
45.50

 

 

 

 

 

Operating Margin
 
5
%
 
13
%
 
(3
)%
 
9
%
 
8
%
 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
78,607

 
$
90,876

 
$
51,260

 
$
70,532

 
$
291,275

 

 

 

 

 

Intersegment Revenues
 
$
(4,171
)
 
$
(4,901
)
 
$
(2,951
)
 
$
(4,132
)
 
$
(16,155
)
 

 

 

 

 

Operating Income
 
$
6,429

 
$
10,878

 
$
5,019

 
$
7,884

 
$
30,210

 

 

 

 

 

Consumer Orders
 
1,022

 
1,223

 
645

 
932

 
3,821

 

 

 

 

 

Average Order Value
 
$
72.62

 
$
70.14

 
$
74.52

 
$
71.05

 
$
71.76

 

 

 

 

 

Operating Margin
 
8
%
 
12
%
 
10
 %
 
11
%
 
10
%
 

 

 

 

 


Note: There are no changes to results previously presented for the Florist and International segments for the periods disclosed. Therefore, the results of those segments are not presented herein.




FTD Companies, Inc.
Segment Information
For the Year Ended December 31, 2015
(Unaudited, dollars in thousands)
 
 
As Originally Reported
 
As Revised
 
 
Year Ended
 
Year Ended
 
 
Dec 31, 2015
 
Dec 31, 2015
U.S. Consumer
 
 
 
 
Revenues
 

 
$
904,739

Intersegment Revenues
 

 
$
(18,806
)
Operating Income
 

 
$
78,606

Consumer Orders
 

 
16,778

Average Order Value
 

 
$
52.27

Operating Margin
 

 
9
%
 
 
 
 
 
Provide Commerce
 
 
 
 
Revenues
 
$
583,326

 

Intersegment Revenues
 
$
(1,245
)
 

Operating Income
 
$
41,802

 

Consumer Orders
 
12,549

 

Average Order Value
 
$
46.02

 

Operating Margin
 
7
%
 

 
 

 
 
Consumer
 

 
 
Revenues
 
$
321,413

 

Intersegment Revenues
 
$
(17,561
)
 

Operating Income
 
$
36,804

 

Consumer Orders
 
4,229

 

Average Order Value
 
$
70.83

 

Operating Margin
 
11
%
 


Note: There are no changes to results previously presented for the Florist and International segments for the periods disclosed. Therefore, the results of those segments are not presented herein.