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1-800-FLOWERS.COM, Inc. - NASDAQ symbol FLWS; investor presentation PowerPoint
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NASDAQ: FLWS
““The WorldThe World’’s Leading Florist and Gift Shops Leading Florist and Gift Shop””5.8.13
Setting FLWS Investment ApartSetting FLWS Investment Apart
• 1-800-FLOWERS.COM: Strong Brand Equity, Site Traffic and
30+ Million Customer Database
• Growing Market Share in $16B Gourmet Food and Gift Baskets
• BloomNet Wire Service: Increasing Market Penetration & Share
• Proven Ability to Leverage Business Platform to Reduce OPEX
• Strong Balance Sheet: Generating Cash
• Early Adopter in Fast Growing Social/ Mobile Commerce
Positive Trends: Growing Top and Bottom Line
• Two+ years of solid top and bottom line growth.
• Consumer Floral: continued positive trends in revenue, gross margin and contribution margin.
• BloomNet wire service: increasing market penetration and share vs. competitors.
• Gourmet Food and Gift Baskets: expanding product offering and strong ecommerce growth.
• Balance sheet: net cash positive, growing cash position.
• FCF: generating >$20 per year
Business PlatformBusiness Platform
FloralGourmet
Food & Gift Baskets
Floral CategoryFloral Category
• Market Leadership• Powerful Brand
• Significant Website Traffic and Customer Database
• Social and Mobile Commerce Early Adopter and Leader
• Innovative Merchandising• Good, Better, Best Offerings
• “Truly Original” Designs
• Leveragable Same-Day, Any-Day Delivery Capability
• B-2-B Wire Service
• Quality & Innovation Leader
• Growing Market Penetration
• Strong Contribution Margin
• BloomNet Advantages:
• Largest # of Directable Orders
• Better Value Proposition
• Expanded Suite of Products
and Services
Gourmet Food & Gift Baskets CategoryGourmet Food & Gift Baskets Category
• Relevant Gift Brands Strategy:• Fragmented Market >$16B
• Multi-channel/ E-commerce focus
• Revenue ~ $250mm
• Cross-Brand Leveraging:• Multi-Brand Website
• Customer Database
• Manufacturing Capabilities
• Product Design & Sourcing
• Broadening National Recognition for Regional Brands
Multi-Brand Website Strategy
• Leverage 1-800-FLOWERS.COM Brand Equity, Web Traffic, Customer Database, Marketing and Advertising Programs
• Enable Gourmet Food Gift Brands to Market Year-Round for “Every Day” Gifting Occasions
• Capture Larger Share of Customers’ Gift “Wallet”
Key Strategic PrioritiesKey Strategic Priorities
• Know and Take Care of Our Customers:• Provide the right products and services with consistent,
excellent quality and value; help our customers send smiles everyday.
• Maintain our Financial Strength and Flexibility:• Aggressively reduce our operating costs; Strengthen
our balance sheet and add flexibility to our capital structure.
• Continue to Innovate and Invest for the Future:• Invest in Technology; Invest in our Brands; Invest in
New Growth areas that position us for enhanced future results.
Social Networking: Social Networking: Reaching Our CustomersReaching Our Customers
Innovate & Invest for the FutureInnovate & Invest for the FutureMobile traffic is growing rapidly as percent of totalMobile traffic is growing rapidly as percent of total
iPhone App Droid App
Maintain Financial Strength & FlexibilityMaintain Financial Strength & Flexibility
• Proven Operating Cost Leverage
• Continued focus on OPEX cost reduction opportunities
• Improving marketing leverage/ ROI
• Strong Balance Sheet
• Net cash positive position
• Paid down >$100 million of debt during past three years
• Managing inventories: flat to down while growing revenues
• Generating strong free cash flow: >$20MM annually
• New, amended bank credit facility: $200MM revolver; low interest
Historical Revenue & EBITDAHistorical Revenue & EBITDA
$ Millions
FY07 FY08 FY09
$726 $739
$57.2 $57.1
Revenue EBITDA
$714
$36.4
$668
$28.6
FY10
$690
$33.4
FY11
$716
$42.8
FY12
TopTop-- and Bottomand Bottom--Line Growth StrategiesLine Growth Strategies
• Manage Those Aspects of Our Business That We Can Control• Merchandising, Marketing, Operating Expenses
• Seek Organic Growth in Key Business Categories• Increase Cross-Brand Marketing: Multi-Brand Platform
• Grow Multi-Channel Gourmet Food & Gift Baskets Business
• Increase BloomNet Wire Service Market Penetration
• New Business Development• 1-800-Baskets.com; FM Berries; FruitBouquets.com; Social/ Mobile
Commerce; Franchising
• Acquisition Opportunities• Gourmet Food & Gift Baskets; Social Gifting
• Enhance Profitability• Increase Margins and Build on Revenue Growth Trends• Drive EBITDA, EPS and Free Cash Flow
Safe Harbor StatementSafe Harbor Statement
Special Note Regarding Forward-Looking Statements
A number of statements contained in this presentation are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. For a detailed description of these risk factors, please refer to the Company’s Securities and Exchange Commission filings including the Company’s Annual Reports on form 10-K and quarterly reports on form 10Q. The Company expressly disclaims any intent or obligation to update any of the forward looking statements included in this presentation.
(*A Reconciliation of Net Income to EBITDA is available at the Investor Relations section of the Company’s website at www.1800flowers.com as part of the Company’s tables attached to its quarterly filings with the SEC on forms 10Q and 10K as well as its quarterly results press releases.)
Contact:Joseph D. Pititto
VP Investor RelationsPhone: 1-(516)-237-6131
E-mail: [email protected]
NASDAQ: FLWS