FTD Cos. (FTD) Prelim. Q2 Revs Miss Expectations

FTD Cos. (NASDAQ: FTD) is providing preliminary unaudited financial results for the second quarter ended June 30, 2014. The Company is also providing updated guidance ranges for the full year 2014.

Second Quarter Preliminary Results

The Company expects to report second quarter 2014 consolidated revenue of approximately $166 to $168 million, an increase of 1% to 2%, compared to $164.3 million in the same period of the prior year. Revenue in the second quarter was negatively impacted by lower consumer order volume in the U.S., offset by increases in consumer segment average order values, increased consumer order volume in the U.K. and favorable foreign currency exchange rates.

*** The consensus is at Q2 revs of $184 million.

Net income for the second quarter of 2014 is expected to be in the range of $4.2 million to $4.7 million compared to $5.5 million in the prior year period. Net income includes approximately $1.0 million net of tax ($1.7 million pre-tax) in transaction-related costs in connection with the planned acquisition of the Provide Commerce business. Adjusted net income for the second quarter of 2014 is expected to be in the range of $10.7 million to $11.2 million compared to $11.2 million in same period of the prior year. Adjusted net income excludes the after-tax impact of stock-based compensation, amortization, transaction-related costs, litigation and dispute settlement charges, and restructuring and other exit costs.

Adjusted EBITDA is expected to be in the range of $21.4 million to $22.5 million for the second quarter of 2014 compared to $23.6 million in the same period of the prior year. Adjusted net income and Adjusted EBITDA are non-GAAP financial measures. Please refer to the table in this press release for a reconciliation of all non-GAAP financial measures.

The preliminary, unaudited results presented herein are based on currently available information. These preliminary, unaudited results are subject to the completion of FTD's quarterly closing and review procedures and the regular quarterly review process by its independent registered public accounting firm. As a result, the information presented herein is subject to change.

Business Outlook

For the full year 2014, the Company is also providing the following updated guidance ranges, which do not include the impact of the planned acquisition of Provide Commerce, but do reflect an estimated $13 million to $15 million of transaction-related costs:

• Consolidated revenues of $640 million to $650 million
• Net income of $16.6 million to $20.6 million
• Adjusted net income of $40.8 million to $43.3 million*
• Adjusted EBITDA of $81 million to $85 million*
• Capital expenditures of approximately $10 million

*** The Street sees FY14 revs of $655 million and EPS of $1.71.

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