| Building and building improvements (years) | 10-40 | |||
| Leasehold improvements (years) | 3-10 | |||
| Furniture, fixtures and production equipment (years) | 3-10 | |||
| Software (years) | 3-7 | |||
| Orchards in production and land improvements (years) | 15-35 |
| June 30, 2019 | July 1, 2018 | |||||||||||||||||||||||||||
| Amortization Period | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||
| (in years) | (in thousands) | |||||||||||||||||||||||||||
| Intangible assets with determinable lives | ||||||||||||||||||||||||||||
| Investment in licenses | 14-16 | $ | 7,420 | $ | 6,148 | $ | 1,272 | $ | 7,420 | $ | 6,042 | $ | 1,378 | |||||||||||||||
| Customer lists | 3-10 | 12,184 | 9,798 | 2,386 | 12,184 | 9,354 | 2,830 | |||||||||||||||||||||
| Other | 5-14 | 2,946 | 2,280 | 666 | 2,946 | 2,172 | 774 | |||||||||||||||||||||
| Total intangible assets with determinable lives | 22,550 | 18,226 | 4,324 | 22,550 | 17,568 | 4,982 | ||||||||||||||||||||||
| Trademarks with indefinite lives | 55,291 | - | 55,291 | 54,841 | - | 54,841 | ||||||||||||||||||||||
| Total identifiable intangible assets | $ | 77,841 | $ | 18,226 | $ | 59,615 | $ | 77,391 | $ | 17,568 | $ | 59,823 |
| Additions | ||||||||||||||||||||
| Description | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts- Describe | Deductions- Describe (a) | Balance at End of Period | |||||||||||||||
| Reserves and allowances deducted from asset accounts: | ||||||||||||||||||||
| Reserve for estimated doubtful accounts-accounts/notes receivable | ||||||||||||||||||||
| Year Ended June 30, 2019 | $ | 2,418,000 | $ | 1,383,000 | $ | - | $ | (1,024,000 | ) | $ | 2,777,000 | |||||||||
| Year Ended July 1, 2018 | $ | 1,846,000 | $ | 1,068,000 | $ | - | $ | (496,000 | ) | $ | 2,418,000 | |||||||||
| Year Ended July 2, 2017 | $ | 2,104,000 | $ | 1,158,000 | $ | - | $ | (1,416,000 | ) | $ | 1,846,000 |
| (a) Reduction in reserve due to write-off of accounts/notes receivable balances. |
| June 30, 2019 | July 1, 2018 | |||||||
| (in thousands) | ||||||||
| Payroll and employee benefits | $ | 28,585 | $ | 12,992 | ||||
| Deferred revenue | 17,305 | 13,524 | ||||||
| Accrued marketing expenses | 14,423 | 12,472 | ||||||
| Accrued florist payout | 8,038 | 6,890 | ||||||
| Other | 28,442 | 27,421 | ||||||
| Accrued Expenses | $ | 96,793 | $ | 73,299 |
| Additions | ||||||||||||||||||||
| Description | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts- Describe | Deductions- Describe (a) | Balance at End of Period | |||||||||||||||
| Reserves and allowances deducted from asset accounts: | ||||||||||||||||||||
| Reserve for estimated doubtful accounts-accounts/notes receivable | ||||||||||||||||||||
| Year Ended June 30, 2019 | $ | 2,418,000 | $ | 1,383,000 | $ | - | $ | (1,024,000 | ) | $ | 2,777,000 | |||||||||
| Year Ended July 1, 2018 | $ | 1,846,000 | $ | 1,068,000 | $ | - | $ | (496,000 | ) | $ | 2,418,000 | |||||||||
| Year Ended July 2, 2017 | $ | 2,104,000 | $ | 1,158,000 | $ | - | $ | (1,416,000 | ) | $ | 1,846,000 |
| - | Interest paid amounted to $4.7 million, $4.0 million, and $4.4 million, for the years ended June 30, 2019, July 1, 2018 and July 2, 2017, respectively. |
| - | The Company paid income taxes of approximately $8.8 million, $5.2 million, and $6.8 million, net of tax refunds received, for the years ended June 30, 2019, July 1, 2018, and July 2, 2017, respectively. |
| Operating Leases | ||||
| (in thousands) | ||||
| 2020 | $ | 16,588 | ||
| 2021 | 13,490 | |||
| 2022 | 12,081 | |||
| 2023 | 9,957 | |||
| 2024 | 9,498 | |||
| Thereafter | 44,953 | |||
| Total minimum lease payments | $ | 106,567 |
| June 30 , 2019 | July 1, 2018 | |||||||
| (in thousands) | ||||||||
| Revolver (1) | $ | - | $ | - | ||||
| Term Loan (1) | 100,000 | 104,938 | ||||||
| Deferred financing costs | (3,027 | ) | (2,608 | ) | ||||
| Total debt | 96,973 | 102,330 | ||||||
| Less: current debt | 5,000 | 10,063 | ||||||
| Long-term debt | $ | 91,973 | $ | 92,267 |
| Years Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Floral | BloomNet Wire Service | Gourmet Food & Gift Baskets | Consolidated | Consumer Floral | BloomNet Wire Service | Gourmet Food & Gift Baskets | Consolidated | Consumer Floral | BloomNet Wire Service | Gourmet Food & Gift Baskets | Consolidated | |||||||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
| E-commerce | $ | 489,463 | $ | - | $ | 508,897 | $ | 998,360 | $ | 448,943 | $ | - | $ | 472,905 | $ | 921,848 | $ | 427,831 | $ | - | $ | 468,931 | $ | 896,762 | ||||||||||||||||||||||||
| Retail | 4,706 | - | 45,862 | 50,568 | 4,743 | - | 46,860 | 51,603 | 4,769 | - | 76,321 | 81,090 | ||||||||||||||||||||||||||||||||||||
| Wholesale | - | 29,744 | 93,659 | 123,403 | - | 28,747 | 85,758 | 114,505 | - | 27,033 | 125,425 | 152,458 | ||||||||||||||||||||||||||||||||||||
| BloomNet services | - | 73,132 | - | 73,132 | - | 60,822 | - | 60,822 | - | 60,667 | - | 60,667 | ||||||||||||||||||||||||||||||||||||
| Other | 3,596 | - | - | 3,596 | 3,774 | - | - | 3,774 | 4,532 | - | - | 4,532 | ||||||||||||||||||||||||||||||||||||
| Corporate | - | - | - | 1,105 | - | - | - | 1,114 | - | - | - | 1,102 | ||||||||||||||||||||||||||||||||||||
| Eliminations | - | - | - | (1,541 | ) | - | - | - | (1,745 | ) | - | - | - | (2,986 | ) | |||||||||||||||||||||||||||||||||
| Total n et revenues | $ | 497,765 | $ | 102,876 | $ | 648,418 | $ | 1,248,623 | $ | 457,460 | $ | 89,569 | $ | 605,523 | $ | 1,151,921 | $ | 437,132 | $ | 87,700 | $ | 670,677 | $ | 1,193,625 |
| Years Ended | ||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 (2) | ||||||||||
| (in thousand s ) | ||||||||||||
| Stock options | $ | 315 | $ | 429 | $ | 446 | ||||||
| Restricted stock awards | 5,995 | 3,297 | 5,248 | |||||||||
| Total | 6,310 | 3,726 | 5,694 | |||||||||
| Deferred income tax benefit | 1,578 | 961 | 2,213 | |||||||||
| Stock-based compensation expense, net | $ | 4,732 | $ | 2,765 | $ | 3,481 |
| Years Ended | ||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 (2) | ||||||||||
| (in thousands) | ||||||||||||
| Marketing and sales | $ | 2,725 | $ | 989 | $ | 1,624 | ||||||
| Technology and development | 411 | 198 | 315 | |||||||||
| General and administrative | 3,174 | 2,539 | 3,755 | |||||||||
| Total | $ | 6,310 | $ | 3,726 | $ | 5,694 |
| ( 1 ) | Stock-based compensation expense has not been allocated between business segments, but is reflected as part of Corporate overhead. (See Note .15 |
| ( 2 ) | Excludes approximately $0.4 million of stock-based compensation expense recorded within the gain on the sale of Fannie May, resulting from the acceleration of vesting of shares for Fannie May personnel, upon closing of the disposition. |
| Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||
| (in years) | (in thousands) | |||||||||||||||
| Outstanding beginning of period | 1,968,234 | $ | 2.35 | |||||||||||||
| Granted | - | $ | - | |||||||||||||
| Exercised | (601,234 | ) | $ | 2.06 | ||||||||||||
| Forfeited/Expired | (2,000 | ) | $ | 2.22 | ||||||||||||
| Outstanding end of period | 1,365,000 | $ | 2.48 | 2.1 | $ | 22,388 | ||||||||||
| Exercisable at June 30, 2019 | 1,235,000 | $ | 2.43 | 2.0 | $ | 20,312 |
| Options Outstanding | Options Exercisable | |||||||||||||||||||||
| Exercise Price | Options Outstanding | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | Options Exercisable | Weighted- Average Exercise Price | |||||||||||||||||
| (in years) | ||||||||||||||||||||||
| $ | 1.79 | 330,000 | 1.3 | $ | 1.79 | 330,000 | $ | 1.79 | ||||||||||||||
| $ | 2.44 | 25,000 | 0.4 | $ | 2.44 | 25,000 | $ | 2.44 | ||||||||||||||
| $ | 2.63 | 1,000,000 | 2.3 | $ | 2.63 | 875,000 | $ | 2.63 | ||||||||||||||
| $ | 10.20 | 10,000 | 5.8 | $ | 10.20 | 5,000 | $ | 10.20 | ||||||||||||||
1,365,000 | 2.1 | $ | 2.48 | 1,235,000 | $ | 2.43 |
| Shares | Weighted Average Grant Date Fair Value | |||||||
| Non-vested – beginning of period | 962,273 | $ | 7.72 | |||||
| Granted | 953,066 | $ | 12.74 | |||||
| Vested | (411,600 | ) | $ | 7.91 | ||||
| Forfeited | (65,147 | ) | $ | 11.62 | ||||
| Non-vested - end of period | 1,438,592 | $ | 10.81 |
Years Ended | ||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 | ||||||||||
| (in thousands, except per share data) | ||||||||||||
| Numerator: | ||||||||||||
| Net income | $ | 34,766 | $ | 40,791 | $ | 44,041 | ||||||
| Denominator: | ||||||||||||
| Weighted average shares outstanding | 64,342 | 64,666 | 65,191 | |||||||||
| Effect of dilutive securities: | ||||||||||||
| Employee stock options | 1,404 | 1,580 | 1,519 | |||||||||
| Employee restricted stock awards | 711 | 692 | 1,025 | |||||||||
| Total effect of dilutive securities | 2,115 | 2,272 | 2,544 | |||||||||
| Adjusted weighted-average shares and assumed conversions | 66,457 | 66,938 | 67,735 | |||||||||
| Net income per common share from continuing operations attributable to 1-800-FLOWERS.COM, Inc. | ||||||||||||
| Basic | $ | 0.54 | $ | 0.63 | $ | 0.68 | ||||||
| Diluted | $ | 0.52 | $ | 0.61 | $ | 0.65 |
| Level 1 | Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. |
| Level 2 | Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. |
| Level 3 | Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
| Carrying Value | Fair Value Measurements Assets (Liabilities) | |||||||||||||||
| Level 1 | Level 2 | Level 3 | ||||||||||||||
| (in thousands) | ||||||||||||||||
| Assets (liabilities) as of June 30, 2019: | ||||||||||||||||
| Trading securities held in a “rabbi trust” (1) | $ | 11,816 | $ | 11,816 | $ | - | $ | - | ||||||||
| $ | 11,816 | $ | 11,816 | $ | - | $ | - | |||||||||
| Assets (liabilities) as of July 1, 2018: | ||||||||||||||||
| Trading securities held in a “rabbi trust” (1) | $ | 9,368 | $ | 9,368 | $ | - | $ | - | ||||||||
| $ | 9,368 | $ | 9,368 | $ | - | $ | - |
| ( 1 ) | The Company has established a Non-qualified Deferred Compensation Plan (the “NQDC Plan”) for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a “rabbi trust,” which is restricted for payment to participants of the NQDC Plan. Trading securities held in the rabbi trust are measured using quoted market prices at the reporting date and are included in the “Other assets” line item, with the corresponding liability included in the “Other liabilities” line item in the consolidated balance sheets. |
| Consumer Floral | BloomNet Wire Service | Gourmet Foods & Gift Baskets | Total | |||||||||||||
| (in thousands) | ||||||||||||||||
| Balance at July 2, 2017 | $ | 17,441 | $ | - | $ | 45,149 | $ | 62,590 | ||||||||
| Balance at July 1, 2018 | $ | 17,441 | $ | - | $ | 45,149 | $ | 62,590 | ||||||||
| Balance at June 30, 2019 | $ | 17,441 | $ | - | $ | 45,149 | $ | 62,590 |
| June 30, 2019 | July 1, 2018 | |||||||||||||||||||||||||||
| Amortization Period | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||
| (in years) | (in thousands) | |||||||||||||||||||||||||||
| Intangible assets with determinable lives | ||||||||||||||||||||||||||||
| Investment in licenses | 14-16 | $ | 7,420 | $ | 6,148 | $ | 1,272 | $ | 7,420 | $ | 6,042 | $ | 1,378 | |||||||||||||||
| Customer lists | 3-10 | 12,184 | 9,798 | 2,386 | 12,184 | 9,354 | 2,830 | |||||||||||||||||||||
| Other | 5-14 | 2,946 | 2,280 | 666 | 2,946 | 2,172 | 774 | |||||||||||||||||||||
| Total intangible assets with determinable lives | 22,550 | 18,226 | 4,324 | 22,550 | 17,568 | 4,982 | ||||||||||||||||||||||
| Trademarks with indefinite lives | 55,291 | - | 55,291 | 54,841 | - | 54,841 | ||||||||||||||||||||||
| Total identifiable intangible assets | $ | 77,841 | $ | 18,226 | $ | 59,615 | $ | 77,391 | $ | 17,568 | $ | 59,823 |
| Years ended | ||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 | ||||||||||
| (in thousands) | ||||||||||||
| Current provision: | ||||||||||||
| Federal | $ | 2,809 | $ | 3,385 | $ | 11,859 | ||||||
| State | 2,710 | 1,514 | 1,758 | |||||||||
| Foreign | - | - | - | |||||||||
| Current income tax expense | 5,519 | 4,899 | 13,617 | |||||||||
| Deferred provision (benefit): | ||||||||||||
| Federal | 3,138 | (9,331 | ) | (1,563 | ) | |||||||
| State | (427 | ) | 1,648 | (90 | ) | |||||||
| Foreign | (13 | ) | 15 | 4 | ||||||||
| Deferred income tax expense (benefit) | 2,698 | (7,668 | ) | (1,649 | ) | |||||||
| Income tax expense (benefit) | $ | 8,217 | $ | (2,769 | ) | $ | 11,968 |
| Years ended | ||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 | ||||||||||
| Tax at U.S. statutory rates | 21.0 | % | 28.0 | % | 35.0 | % | ||||||
| State income taxes, net of federal tax benefit | 4.4 | 5.7 | 2.3 | |||||||||
| Valuation allowance change | (0.3 | ) | 2.6 | 14.9 | ||||||||
| Non-deductible compensation | 0.7 | - | - | |||||||||
| Excess tax benefit from stock-based compensation | (4.4 | ) | (1.6 | ) | (1.6 | ) | ||||||
| Domestic production deduction | - | (2.0 | ) | (2.1 | ) | |||||||
| Tax credits | (1.8 | ) | (2.5 | ) | (1.7 | ) | ||||||
| Tax Act impact on deferred tax balance (1) | - | (32.0 | ) | - | ||||||||
| Return to provision | (1.0 | ) | (5.8 | ) | - | |||||||
| Tax effect of Fannie May disposition | - | - | (25.3 | ) | ||||||||
| Other, net | 0.5 | 0.3 | (0.1 | ) | ||||||||
| Effective tax rate | 19.1 | % | (7.3 | )% | 21.4 | % |
| ( 1 ) | On December 22, 2017, the U.S. government enacted comprehensive tax legislation pursuant to the Tax Cuts and Jobs Act (the “Tax Act”), which significantly revised the ongoing U.S. corporate income tax law by lowering the U.S. federal corporate income tax rate from 35% to 21%. Due to the Company’s fiscal year end, the lower income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 28% for the Company’s fiscal year ended July 1, 2018, and 21% for the fiscal year ended June 30, 2019. Accordingly, for the fiscal year ended July 1, 2018, the Company recorded a deferred tax benefit of $12.2 million related to the change in deferred tax liabilities. |
| Years ended | ||||||||
| June 30, 2019 | July 1, 2018 | |||||||
| (in thousands) | ||||||||
| Deferred income tax assets: | ||||||||
| Loss and credit carryforwards | $ | 10,955 | $ | 11,286 | ||||
| Accrued expenses and reserves | 3,866 | 3,871 | ||||||
| Stock-based compensation | 1,798 | 1,344 | ||||||
| Deferred compensation | 2,150 | 1,711 | ||||||
| Gross deferred income tax assets | 18,769 | 18,212 | ||||||
| Less: Valuation allowance | (9,872 | ) | (9,972 | ) | ||||
| Deferred tax assets, net | 8,897 | 8,240 | ||||||
| Deferred income tax liabilities: | ||||||||
| Other intangibles | (14,664 | ) | (14,983 | ) | ||||
| Tax in excess of book depreciation | (23,131 | ) | (19,457 | ) | ||||
| Deferred tax liabilities | (37,795 | ) | (34,440 | ) | ||||
| Net deferred income tax liabilities | $ | (28,898 | ) | $ | (26,200 | ) |
| June 30, 2019 | July 1, 2018 | |||||||
| (in thousands) | ||||||||
| Finished goods | $ | 36,820 | $ | 33,930 | ||||
| Work-in-process | 17,535 | 17,575 | ||||||
| Raw materials | 38,006 | 37,320 | ||||||
| Total inventory | $ | 92,361 | $ | 88,825 |
| Building and building improvements (years) | 10-40 | |||
| Leasehold improvements (years) | 3-10 | |||
| Furniture, fixtures and production equipment (years) | 3-10 | |||
| Software (years) | 3-7 | |||
| Orchards in production and land improvements (years) | 15-35 |
| - | E-commerce revenues - consumer products sold through our online and telephonic channels. Revenue is recognized when control of the merchandise is transferred to the customer, which generally occurs upon shipment. Payment is typically due prior to the date of shipment. |
| - | Retail revenues - consumer products sold through our retail stores. Revenue is recognized when control of the goods is transferred to the customer, at the point of sale, at which time payment is received. |
| - | Wholesale revenues - products sold to our wholesale customers for subsequent resale. Revenue is recognized when control of the goods is transferred to the customer, in accordance with the terms of the applicable agreement. Payment terms are typically 30 days from the date control over the product is transferred to the customer. |
| - | BloomNet Services - membership fees as well as other service offerings to florists. Membership and other subscription-based fees are recognized monthly as earned. Services revenues related to orders sent through the floral network are variable, based on either the number of orders or the value of orders, and are recognized in the period in which the orders are delivered. The contracts within BloomNet Services are typically month-to-month and as a result no consideration allocation is necessary across multiple reporting periods. Payment is typically due less than 30 days from the date the services were performed. |
| June 30, 2019 | July 1, 2018 | |||||||
| (in thousands) | ||||||||
| Land | $ | 30,789 | $ | 30,789 | ||||
| Orchards in production and land improvements | 11,339 | 10,962 | ||||||
| Building and building improvements | 59,236 | 58,450 | ||||||
| Leasehold improvements | 13,861 | 12,997 | ||||||
| Production equipment and furniture and fixtures | 61,415 | 53,066 | ||||||
| Computer and telecommunication equipment | 53,694 | 46,925 | ||||||
| Software | 132,078 | 115,944 | ||||||
| Capital projects in progress - orchards | 9,902 | 10,789 | ||||||
| Property, plant and equipment, gross | 372,314 | 339,922 | ||||||
| Accumulated depreciation and amortization | (205,633 | ) | (176,582 | ) | ||||
| Property, plant and equipment, net | $ | 166,681 | $ | 163,340 |
| Building and building improvements (years) | 10-40 | |||
| Leasehold improvements (years) | 3-10 | |||
| Furniture, fixtures and production equipment (years) | 3-10 | |||
| Software (years) | 3-7 | |||
| Orchards in production and land improvements (years) | 15-35 |
| June 30, 2019 | July 1, 2018 | |||||||
| (in thousands) | ||||||||
| Land | $ | 30,789 | $ | 30,789 | ||||
| Orchards in production and land improvements | 11,339 | 10,962 | ||||||
| Building and building improvements | 59,236 | 58,450 | ||||||
| Leasehold improvements | 13,861 | 12,997 | ||||||
| Production equipment and furniture and fixtures | 61,415 | 53,066 | ||||||
| Computer and telecommunication equipment | 53,694 | 46,925 | ||||||
| Software | 132,078 | 115,944 | ||||||
| Capital projects in progress - orchards | 9,902 | 10,789 | ||||||
| Property, plant and equipment, gross | 372,314 | 339,922 | ||||||
| Accumulated depreciation and amortization | (205,633 | ) | (176,582 | ) | ||||
| Property, plant and equipment, net | $ | 166,681 | $ | 163,340 |
| - | E-commerce revenues - consumer products sold through our online and telephonic channels. Revenue is recognized when control of the merchandise is transferred to the customer, which generally occurs upon shipment. Payment is typically due prior to the date of shipment. |
| - | Retail revenues - consumer products sold through our retail stores. Revenue is recognized when control of the goods is transferred to the customer, at the point of sale, at which time payment is received. |
| - | Wholesale revenues - products sold to our wholesale customers for subsequent resale. Revenue is recognized when control of the goods is transferred to the customer, in accordance with the terms of the applicable agreement. Payment terms are typically 30 days from the date control over the product is transferred to the customer. |
| - | BloomNet Services - membership fees as well as other service offerings to florists. Membership and other subscription-based fees are recognized monthly as earned. Services revenues related to orders sent through the floral network are variable, based on either the number of orders or the value of orders, and are recognized in the period in which the orders are delivered. The contracts within BloomNet Services are typically month-to-month and as a result no consideration allocation is necessary across multiple reporting periods. Payment is typically due less than 30 days from the date the services were performed. |
| June 30, 2019 | July 1, 2018 | |||||||
| (in thousands) | ||||||||
| Payroll and employee benefits | $ | 28,585 | $ | 12,992 | ||||
| Deferred revenue | 17,305 | 13,524 | ||||||
| Accrued marketing expenses | 14,423 | 12,472 | ||||||
| Accrued florist payout | 8,038 | 6,890 | ||||||
| Other | 28,442 | 27,421 | ||||||
| Accrued Expenses | $ | 96,793 | $ | 73,299 |
| Years Ended | ||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 (2) | ||||||||||
| (in thousand s ) | ||||||||||||
| Stock options | $ | 315 | $ | 429 | $ | 446 | ||||||
| Restricted stock awards | 5,995 | 3,297 | 5,248 | |||||||||
| Total | 6,310 | 3,726 | 5,694 | |||||||||
| Deferred income tax benefit | 1,578 | 961 | 2,213 | |||||||||
| Stock-based compensation expense, net | $ | 4,732 | $ | 2,765 | $ | 3,481 |
| Years ended | ||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 | ||||||||||
| (in thousands) | ||||||||||||
| Current provision: | ||||||||||||
| Federal | $ | 2,809 | $ | 3,385 | $ | 11,859 | ||||||
| State | 2,710 | 1,514 | 1,758 | |||||||||
| Foreign | - | - | - | |||||||||
| Current income tax expense | 5,519 | 4,899 | 13,617 | |||||||||
| Deferred provision (benefit): | ||||||||||||
| Federal | 3,138 | (9,331 | ) | (1,563 | ) | |||||||
| State | (427 | ) | 1,648 | (90 | ) | |||||||
| Foreign | (13 | ) | 15 | 4 | ||||||||
| Deferred income tax expense (benefit) | 2,698 | (7,668 | ) | (1,649 | ) | |||||||
| Income tax expense (benefit) | $ | 8,217 | $ | (2,769 | ) | $ | 11,968 |
| June 30 , 2019 | July 1, 2018 | |||||||
| (in thousands) | ||||||||
| Revolver (1) | $ | - | $ | - | ||||
| Term Loan (1) | 100,000 | 104,938 | ||||||
| Deferred financing costs | (3,027 | ) | (2,608 | ) | ||||
| Total debt | 96,973 | 102,330 | ||||||
| Less: current debt | 5,000 | 10,063 | ||||||
| Long-term debt | $ | 91,973 | $ | 92,267 |
| Years ended | ||||||||
| June 30, 2019 | July 1, 2018 | |||||||
| (in thousands) | ||||||||
| Deferred income tax assets: | ||||||||
| Loss and credit carryforwards | $ | 10,955 | $ | 11,286 | ||||
| Accrued expenses and reserves | 3,866 | 3,871 | ||||||
| Stock-based compensation | 1,798 | 1,344 | ||||||
| Deferred compensation | 2,150 | 1,711 | ||||||
| Gross deferred income tax assets | 18,769 | 18,212 | ||||||
| Less: Valuation allowance | (9,872 | ) | (9,972 | ) | ||||
| Deferred tax assets, net | 8,897 | 8,240 | ||||||
| Deferred income tax liabilities: | ||||||||
| Other intangibles | (14,664 | ) | (14,983 | ) | ||||
| Tax in excess of book depreciation | (23,131 | ) | (19,457 | ) | ||||
| Deferred tax liabilities | (37,795 | ) | (34,440 | ) | ||||
| Net deferred income tax liabilities | $ | (28,898 | ) | $ | (26,200 | ) |
Years Ended | ||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 | ||||||||||
| (in thousands, except per share data) | ||||||||||||
| Numerator: | ||||||||||||
| Net income | $ | 34,766 | $ | 40,791 | $ | 44,041 | ||||||
| Denominator: | ||||||||||||
| Weighted average shares outstanding | 64,342 | 64,666 | 65,191 | |||||||||
| Effect of dilutive securities: | ||||||||||||
| Employee stock options | 1,404 | 1,580 | 1,519 | |||||||||
| Employee restricted stock awards | 711 | 692 | 1,025 | |||||||||
| Total effect of dilutive securities | 2,115 | 2,272 | 2,544 | |||||||||
| Adjusted weighted-average shares and assumed conversions | 66,457 | 66,938 | 67,735 | |||||||||
| Net income per common share from continuing operations attributable to 1-800-FLOWERS.COM, Inc. | ||||||||||||
| Basic | $ | 0.54 | $ | 0.63 | $ | 0.68 | ||||||
| Diluted | $ | 0.52 | $ | 0.61 | $ | 0.65 |
| Years ended | ||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 | ||||||||||
| Tax at U.S. statutory rates | 21.0 | % | 28.0 | % | 35.0 | % | ||||||
| State income taxes, net of federal tax benefit | 4.4 | 5.7 | 2.3 | |||||||||
| Valuation allowance change | (0.3 | ) | 2.6 | 14.9 | ||||||||
| Non-deductible compensation | 0.7 | - | - | |||||||||
| Excess tax benefit from stock-based compensation | (4.4 | ) | (1.6 | ) | (1.6 | ) | ||||||
| Domestic production deduction | - | (2.0 | ) | (2.1 | ) | |||||||
| Tax credits | (1.8 | ) | (2.5 | ) | (1.7 | ) | ||||||
| Tax Act impact on deferred tax balance (1) | - | (32.0 | ) | - | ||||||||
| Return to provision | (1.0 | ) | (5.8 | ) | - | |||||||
| Tax effect of Fannie May disposition | - | - | (25.3 | ) | ||||||||
| Other, net | 0.5 | 0.3 | (0.1 | ) | ||||||||
| Effective tax rate | 19.1 | % | (7.3 | )% | 21.4 | % |
| Years Ended | ||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 (2) | ||||||||||
| (in thousands) | ||||||||||||
| Marketing and sales | $ | 2,725 | $ | 989 | $ | 1,624 | ||||||
| Technology and development | 411 | 198 | 315 | |||||||||
| General and administrative | 3,174 | 2,539 | 3,755 | |||||||||
| Total | $ | 6,310 | $ | 3,726 | $ | 5,694 |
| Carrying Value | Fair Value Measurements Assets (Liabilities) | |||||||||||||||
| Level 1 | Level 2 | Level 3 | ||||||||||||||
| (in thousands) | ||||||||||||||||
| Assets (liabilities) as of June 30, 2019: | ||||||||||||||||
| Trading securities held in a “rabbi trust” (1) | $ | 11,816 | $ | 11,816 | $ | - | $ | - | ||||||||
| $ | 11,816 | $ | 11,816 | $ | - | $ | - | |||||||||
| Assets (liabilities) as of July 1, 2018: | ||||||||||||||||
| Trading securities held in a “rabbi trust” (1) | $ | 9,368 | $ | 9,368 | $ | - | $ | - | ||||||||
| $ | 9,368 | $ | 9,368 | $ | - | $ | - |
| Operating Leases | ||||
| (in thousands) | ||||
| 2020 | $ | 16,588 | ||
| 2021 | 13,490 | |||
| 2022 | 12,081 | |||
| 2023 | 9,957 | |||
| 2024 | 9,498 | |||
| Thereafter | 44,953 | |||
| Total minimum lease payments | $ | 106,567 |
| Consumer Floral | BloomNet Wire Service | Gourmet Foods & Gift Baskets | Total | |||||||||||||
| (in thousands) | ||||||||||||||||
| Balance at July 2, 2017 | $ | 17,441 | $ | - | $ | 45,149 | $ | 62,590 | ||||||||
| Balance at July 1, 2018 | $ | 17,441 | $ | - | $ | 45,149 | $ | 62,590 | ||||||||
| Balance at June 30, 2019 | $ | 17,441 | $ | - | $ | 45,149 | $ | 62,590 |
| June 30, 2019 | July 1, 2018 | |||||||
| (in thousands) | ||||||||
| Finished goods | $ | 36,820 | $ | 33,930 | ||||
| Work-in-process | 17,535 | 17,575 | ||||||
| Raw materials | 38,006 | 37,320 | ||||||
| Total inventory | $ | 92,361 | $ | 88,825 |
| Shares | Weighted Average Grant Date Fair Value | |||||||
| Non-vested – beginning of period | 962,273 | $ | 7.72 | |||||
| Granted | 953,066 | $ | 12.74 | |||||
| Vested | (411,600 | ) | $ | 7.91 | ||||
| Forfeited | (65,147 | ) | $ | 11.62 | ||||
| Non-vested - end of period | 1,438,592 | $ | 10.81 |
| Years ended | ||||||||||||
| Net revenues | June 30, 2019 | July 1, 2018 | July 2, 2017 | |||||||||
| (in thousands) | ||||||||||||
| Net revenues: | ||||||||||||
| 1-800-Flowers.com Consumer Floral | $ | 497,765 | $ | 457,460 | $ | 437,132 | ||||||
| BloomNet Wire Service | 102,876 | 89,569 | 87,700 | |||||||||
| Gourmet Foods & Gift Baskets | 648,418 | 605,523 | 670,677 | |||||||||
| Corporate | 1,105 | 1,114 | 1,102 | |||||||||
| Intercompany eliminations | (1,541 | ) | (1,745 | ) | (2,986 | ) | ||||||
| Total net revenues | $ | 1,248,623 | $ | 1,151,921 | $ | 1,193,625 |
| Years ended | ||||||||||||
| Operating Income from Continuing Operations | June 30, 2019 | July 1, 2018 | July 2, 2017 | |||||||||
| (in thousands) | ||||||||||||
| Segment Contribution Margin: | ||||||||||||
| 1-800-Flowers.com Consumer Floral | $ | 49,653 | $ | 50,808 | $ | 51,860 | ||||||
| BloomNet Wire Service | 34,705 | 31,683 | 32,383 | |||||||||
| Gourmet Foods & Gift Baskets | 82,319 | 70,927 | 77,312 | |||||||||
| Segment Contribution Margin Subtotal | 166,677 | 153,418 | 161,555 | |||||||||
| Corporate (a) | (91,604 | ) | (79,901 | ) | (81,820 | ) | ||||||
| Depreciation and amortization | (29,965 | ) | (32,469 | ) | (33,376 | ) | ||||||
| Operating income | $ | 45,108 | $ | 41,048 | $ | 46,359 |
| Options Outstanding | Options Exercisable | |||||||||||||||||||||
| Exercise Price | Options Outstanding | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | Options Exercisable | Weighted- Average Exercise Price | |||||||||||||||||
| (in years) | ||||||||||||||||||||||
| $ | 1.79 | 330,000 | 1.3 | $ | 1.79 | 330,000 | $ | 1.79 | ||||||||||||||
| $ | 2.44 | 25,000 | 0.4 | $ | 2.44 | 25,000 | $ | 2.44 | ||||||||||||||
| $ | 2.63 | 1,000,000 | 2.3 | $ | 2.63 | 875,000 | $ | 2.63 | ||||||||||||||
| $ | 10.20 | 10,000 | 5.8 | $ | 10.20 | 5,000 | $ | 10.20 | ||||||||||||||
1,365,000 | 2.1 | $ | 2.48 | 1,235,000 | $ | 2.43 |
| Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||
| (in years) | (in thousands) | |||||||||||||||
| Outstanding beginning of period | 1,968,234 | $ | 2.35 | |||||||||||||
| Granted | - | $ | - | |||||||||||||
| Exercised | (601,234 | ) | $ | 2.06 | ||||||||||||
| Forfeited/Expired | (2,000 | ) | $ | 2.22 | ||||||||||||
| Outstanding end of period | 1,365,000 | $ | 2.48 | 2.1 | $ | 22,388 | ||||||||||
| Exercisable at June 30, 2019 | 1,235,000 | $ | 2.43 | 2.0 | $ | 20,312 |
| Years ended | ||||||||||||
| Net revenues | June 30, 2019 | July 1, 2018 | July 2, 2017 | |||||||||
| (in thousands) | ||||||||||||
| Net revenues: | ||||||||||||
| 1-800-Flowers.com Consumer Floral | $ | 497,765 | $ | 457,460 | $ | 437,132 | ||||||
| BloomNet Wire Service | 102,876 | 89,569 | 87,700 | |||||||||
| Gourmet Foods & Gift Baskets | 648,418 | 605,523 | 670,677 | |||||||||
| Corporate | 1,105 | 1,114 | 1,102 | |||||||||
| Intercompany eliminations | (1,541 | ) | (1,745 | ) | (2,986 | ) | ||||||
| Total net revenues | $ | 1,248,623 | $ | 1,151,921 | $ | 1,193,625 |
| Years ended | ||||||||||||
| Operating Income from Continuing Operations | June 30, 2019 | July 1, 2018 | July 2, 2017 | |||||||||
| (in thousands) | ||||||||||||
| Segment Contribution Margin: | ||||||||||||
| 1-800-Flowers.com Consumer Floral | $ | 49,653 | $ | 50,808 | $ | 51,860 | ||||||
| BloomNet Wire Service | 34,705 | 31,683 | 32,383 | |||||||||
| Gourmet Foods & Gift Baskets | 82,319 | 70,927 | 77,312 | |||||||||
| Segment Contribution Margin Subtotal | 166,677 | 153,418 | 161,555 | |||||||||
| Corporate (a) | (91,604 | ) | (79,901 | ) | (81,820 | ) | ||||||
| Depreciation and amortization | (29,965 | ) | (32,469 | ) | (33,376 | ) | ||||||
| Operating income | $ | 45,108 | $ | 41,048 | $ | 46,359 |
| (a) | Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment. |
| Years Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2019 | July 1, 2018 | July 2, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Floral | BloomNet Wire Service | Gourmet Food & Gift Baskets | Consolidated | Consumer Floral | BloomNet Wire Service | Gourmet Food & Gift Baskets | Consolidated | Consumer Floral | BloomNet Wire Service | Gourmet Food & Gift Baskets | Consolidated | |||||||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
| E-commerce | $ | 489,463 | $ | - | $ | 508,897 | $ | 998,360 | $ | 448,943 | $ | - | $ | 472,905 | $ | 921,848 | $ | 427,831 | $ | - | $ | 468,931 | $ | 896,762 | ||||||||||||||||||||||||
| Retail | 4,706 | - | 45,862 | 50,568 | 4,743 | - | 46,860 | 51,603 | 4,769 | - | 76,321 | 81,090 | ||||||||||||||||||||||||||||||||||||
| Wholesale | - | 29,744 | 93,659 | 123,403 | - | 28,747 | 85,758 | 114,505 | - | 27,033 | 125,425 | 152,458 | ||||||||||||||||||||||||||||||||||||
| BloomNet services | - | 73,132 | - | 73,132 | - | 60,822 | - | 60,822 | - | 60,667 | - | 60,667 | ||||||||||||||||||||||||||||||||||||
| Other | 3,596 | - | - | 3,596 | 3,774 | - | - | 3,774 | 4,532 | - | - | 4,532 | ||||||||||||||||||||||||||||||||||||
| Corporate | - | - | - | 1,105 | - | - | - | 1,114 | - | - | - | 1,102 | ||||||||||||||||||||||||||||||||||||
| Eliminations | - | - | - | (1,541 | ) | - | - | - | (1,745 | ) | - | - | - | (2,986 | ) | |||||||||||||||||||||||||||||||||
| Total n et revenues | $ | 497,765 | $ | 102,876 | $ | 648,418 | $ | 1,248,623 | $ | 457,460 | $ | 89,569 | $ | 605,523 | $ | 1,151,921 | $ | 437,132 | $ | 87,700 | $ | 670,677 | $ | 1,193,625 |