| 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 28, 2020 | Ju ne 30 , 201 9 | |||||||||||||||||||||||||||||
| 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 | $ | 6,253 | $ | 1,167 | $ | 7,420 | $ | 6,148 | $ | 1,272 | |||||||||||||||
| Customer lists | 3 | - | 10 | 12,825 | 10,474 | 2,351 | 12,184 | 9,798 | 2,386 | |||||||||||||||||||||
| Other | 5 | - | 14 | 2,946 | 2,382 | 564 | 2,946 | 2,280 | 666 | |||||||||||||||||||||
| Total intangible assets with determinable lives | 23,191 | 19,109 | 4,082 | 22,550 | 18,226 | 4,324 | ||||||||||||||||||||||||
| Trademarks with indefinite lives | 62,191 | - | 62,191 | 55,291 | - | 55,291 | ||||||||||||||||||||||||
| Total identifiable intangible assets | $ | 85,382 | $ | 19,109 | $ | 66,273 | $ | 77,841 | $ | 18,226 | $ | 59,615 |
| 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 28, 2020 | $ | 2,777,000 | $ | 4,143,000 | $ | - | $ | (1,255,000 | ) | $ | 5,665,000 | |||||||||
| 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 | |||||||||
| Valuation allowance for deferred tax assets | ||||||||||||||||||||
| Year Ended June 28, 2020 | $ | 9,872,000 | $ | 37,000 | $ | - | $ | (228,000 | ) | $ | 9,681,000 | |||||||||
| Year Ended June 30, 2019 | $ | 9,972,000 | $ | - | $ | - | $ | (100,000 | ) | $ | 9,872,000 | |||||||||
| Year Ended July 1, 2018 | $ | 11,772,000 | $ | 232,000 | $ | - | $ | (2,032,000 | ) | $ | 9,972,000 |
| 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 28, 2020 | $ | 2,777,000 | $ | 4,143,000 | $ | - | $ | (1,255,000 | ) | $ | 5,665,000 | |||||||||
| 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 | |||||||||
| Valuation allowance for deferred tax assets | ||||||||||||||||||||
| Year Ended June 28, 2020 | $ | 9,872,000 | $ | 37,000 | $ | - | $ | (228,000 | ) | $ | 9,681,000 | |||||||||
| Year Ended June 30, 2019 | $ | 9,972,000 | $ | - | $ | - | $ | (100,000 | ) | $ | 9,872,000 | |||||||||
| Year Ended July 1, 2018 | $ | 11,772,000 | $ | 232,000 | $ | - | $ | (2,032,000 | ) | $ | 9,972,000 |
| June 28, 2020 | Ju ne 30 , 201 9 | |||||||
| (in thousands) | ||||||||
| Payroll and employee benefits | $ | 41,931 | $ | 28,585 | ||||
| Deferred revenue | 25,867 | 17,305 | ||||||
| Accrued marketing expenses | 14,680 | 14,423 | ||||||
| Accrued florist payout | 16,755 | 8,038 | ||||||
| Other | 42,508 | 28,442 | ||||||
| Accrued Expenses | $ | 141,741 | $ | 96,793 |
| - | Interest paid amounted to $3.5 million, $4.7 million, and $4.0 million, for the years ended June 28, 2020, June 30, 2019 and July 1, 2018, respectively. |
| - | The Company paid income taxes of approximately $15.5 million, $8.8 million, and $5.2 million, net of tax refunds received, for the years ended June 28, 2020, June 30, 2019, and July 1, 2018, respectively. |
| June 28, 2020 | Ju ne 30 , 201 9 | |||||||
| (in thousands) | ||||||||
| Revolver (1), (2) | $ | - | $ | - | ||||
| Term Loan (1), (2) | 95,000 | 100,000 | ||||||
| Deferred financing costs | (2,441 | ) | (3,027 | ) | ||||
| Total debt | 92,559 | 96,973 | ||||||
| Less: current debt | 5,000 | 5,000 | ||||||
| Long-term debt | $ | 87,559 | $ | 91,973 |
| ( 1 ) | On May 31, 2019, the Company and certain of its U.S. subsidiaries (collectively, the “Subsidiary Guarantors”) entered into a Second Amended and Restated Credit Agreement (the “2019 Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders. The 2019 Credit Agreement amended and restated the Company's existing amended and restated credit agreement dated as of December 23, 2016 to, among other modifications: (i) increase the amount of the outstanding term loan (“Term Loan”) from approximately $97 million to $100 million, (ii) extend the maturity date of the outstanding Term Loan and the revolving credit facility (“Revolver”) by approximately 29 months to May 31, 2024, and (iii) decrease the applicable interest rate margins for LIBOR and base rate loans by 25 basis points. The Term Loan is payable in 19 quarterly installments of principal and interest beginning on September 29, 2019, with escalating principal payments, at the rate of 5.0% per annum for the first eight payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $62.5 million due upon maturity. The Revolver, in the aggregate amount of $200 million, subject to seasonal reduction to an aggregate amount of $100 million for the period from January 1 through August 1, may be used for working capital and general corporate purposes, subject to certain restrictions.For each borrowing under the 2019 Credit Agreement, the Company may elect that such borrowing bear interest at an annual rate equal to either: (1 ) a base rate plus the applicable margin for the relevant class of borrowing, which such margins vary based on the Company's consolidated leverage ratio, where the base rate is the highest of: (a) the prime rate, (b) the New York fed bank rate plus 0.5%, and (c) a LIBOR rate plus 1% (such rate, the “Base Rate”) or (2 ) an adjusted LIBOR rate plus the applicable margin for the relevant class of borrowing, which such margins vary based on the Company's consolidated leverage ratio. The 2019 Credit Agreement requires that while any borrowings or commitments are outstanding the Company comply with certain financial covenants and affirmative covenants as well as certain negative covenants that, subject to certain exceptions, limit the Company's ability to, among other things, incur additional indebtedness, make certain investments and make certain restricted payments. The Company was in compliance with these covenants as of June 28, 2020. The 2019 Credit Agreement is secured by substantially all of the assets of the Company and the Subsidiary Guarantors.Future principal payments under the Term Loan are as follows: $5.0 million – fiscal 2021, $10.0 million - fiscal 2022, $10.0 million – fiscal 2023, and $70.0 million – fiscal 2024 |
| ( 2 ) | The 2019 Credit Agreement was amended subsequent to year end – see Note for details.18. – Subsequent Events |
| Years Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
| June 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | ||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Floral | BloomNet | Gourmet Foods & Gift Baskets | Consolidated | Consumer Floral | BloomNet | Gourmet Foods & Gift Baskets | Consolidated | Consumer Floral | BloomNet | Gourmet Foods & Gift Baskets | Consolidated | |||||||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
| E-commerce | $ | 585,585 | $ | - | $ | 644,800 | $ | 1,230,385 | $ | 489,463 | $ | - | $ | 508,897 | $ | 998,360 | $ | 448,943 | $ | - | $ | 472,905 | $ | 921,848 | ||||||||||||||||||||||||
| Retail | 4,318 | - | 37,076 | 41,394 | 4,706 | - | 45,862 | 50,568 | 4,743 | - | 46,860 | 51,603 | ||||||||||||||||||||||||||||||||||||
| Wholesale | - | 33,675 | 103,671 | 137,346 | - | 29,744 | 93,659 | 123,403 | - | 28,747 | 85,758 | 114,505 | ||||||||||||||||||||||||||||||||||||
| BloomNet Services | - | 78,091 | - | 78,091 | - | 73,132 | - | 73,132 | - | 60,822 | - | 60,822 | ||||||||||||||||||||||||||||||||||||
| Other | 3,294 | - | - | 3,294 | 3,596 | - | - | 3,596 | 3,774 | - | - | 3,774 | ||||||||||||||||||||||||||||||||||||
| Corporate | - | - | - | 591 | - | - | - | 1,105 | - | - | - | 1,114 | ||||||||||||||||||||||||||||||||||||
| Eliminations | - | - | - | (1,464 | ) | - | - | - | (1,541 | ) | - | - | - | (1,745 | ) | |||||||||||||||||||||||||||||||||
| Total net revenues | $ | 593,197 | $ | 111,766 | $ | 785,547 | $ | 1,489,637 | $ | 497,765 | $ | 102,876 | $ | 648,418 | $ | 1,248,623 | $ | 457,460 | $ | 89,569 | $ | 605,523 | $ | 1,151,921 |
| Years Ended | ||||||||||||
| June 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | ||||||||||
| (in thousands) | ||||||||||||
| Stock options | $ | 104 | $ | 315 | $ | 429 | ||||||
| Restricted stock awards | 8,330 | 5,995 | 3,297 | |||||||||
| Total | 8,434 | 6,310 | 3,726 | |||||||||
| Deferred income tax benefit | 2,084 | 1,578 | 961 | |||||||||
| Stock-based compensation expense, net | $ | 6,350 | $ | 4,732 | $ | 2,765 |
| Years Ended | ||||||||||||
| June 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | ||||||||||
| (in thousands) | ||||||||||||
| Marketing and sales | $ | 3,999 | $ | 2,725 | $ | 989 | ||||||
| Technology and development | 649 | 411 | 198 | |||||||||
| General and administrative | 3,786 | 3,174 | 2,539 | |||||||||
| Total | $ | 8,434 | $ | 6,310 | $ | 3,726 |
| ( 1 ) | Stock-based compensation expense has not been allocated between business segments, but is reflected as part of Corporate overhead. (See Note 15 . for details). |
| Years ended | ||||||||||||
| Ju ne 28 , 20 20 | June 30 , 201 9 (1) | Ju ly 1 , 201 8 (1) | ||||||||||
| Weighted average fair value of options granted | $ | 10.11 | n/a | n/a | ||||||||
| Expected volatility | 60 | % | n/a | n/a | ||||||||
| Expected life (in years) | 8.0 | n/a | n/a | |||||||||
| Risk-free interest rate | n/a | n/a | n/a | |||||||||
| Expected dividend yield | 0.0 | % | n/a | n/a |
| ( 1 ) No June 30, 2019 or July 1, 2018. |
| Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||
| (in years) | (in thousands) | |||||||||||||||
| Outstanding beginning of period | 1,365,000 | $ | 2.48 | |||||||||||||
| Granted | 15,000 | $ | 20.72 | |||||||||||||
| Exercised | (150,000 | ) | $ | 1.90 | ||||||||||||
| Forfeited/Expired | - | $ | - | |||||||||||||
| Outstanding end of period | 1,230,000 | $ | 2.77 | 1.3 | $ | 21,043 | ||||||||||
| Exercisable at June 28, 2020 | 1,215,000 | $ | 2.55 | 1.3 | $ | 21,043 |
| 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 | 205,000 | 0.3 | $ | 1.79 | 205,000 | $ | 1.79 | ||||||||||||||
| $ | 2.63 | 1,000,000 | 1.4 | $ | 2.63 | 1,000,000 | $ | 2.63 | ||||||||||||||
| $ | 10.20 | 10,000 | 4.8 | $ | 10.20 | 10,000 | $ | 10.20 | ||||||||||||||
| $ | 20.72 | 15,000 | 9.9 | $ | 20.72 | - | $ | - | ||||||||||||||
1,230,000 | 1.3 | $ | 2.77 | 1,215,000 | $ | 2.55 |
| | | Shares | Weighted Average Grant Date Fair Value | | ||||
| | | | | | | | | |
| Non-vested – beginning of period | | | 1,438,592 | | | $ | 10.81 | |
| Granted | | | 759,554 | | | $ | 13.32 | |
| Vested | | | (470,350 | ) | | $ | 10.40 | |
| Forfeited | | | (119,328 | ) | | $ | 12.15 | |
| Non-vested - end of period | | | 1,608,468 | | | $ | 12.01 | |
| Years Ended | ||||||||||||
| June 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | ||||||||||
| (in thousands, except per share data) | ||||||||||||
| Numerator: | ||||||||||||
| Net income | $ | 58,998 | $ | 34,766 | $ | 40,791 | ||||||
| Denominator: | ||||||||||||
| Weighted average shares outstanding | 64,463 | 64,342 | 64,666 | |||||||||
| Effect of dilutive securities: | ||||||||||||
| Employee stock options | 1,042 | 1,404 | 1,580 | |||||||||
| Employee restricted stock awards | 903 | 711 | 692 | |||||||||
| Total effect of dilutive securities | 1,945 | 2,115 | 2,272 | |||||||||
| Adjusted weighted-average shares and assumed conversions | 66,408 | 66,457 | 66,938 | |||||||||
| Net income per common share : | ||||||||||||
| Basic | $ | 0.92 | $ | 0.54 | $ | 0.63 | ||||||
| Diluted | $ | 0.89 | $ | 0.52 | $ | 0.61 |
| 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 28, 2020 : | ||||||||||||||||
| Trading securities held in a “rabbi trust” (1) | $ | 13,442 | $ | 13,442 | $ | - | $ | - | ||||||||
| $ | 13,442 | $ | 13,442 | $ | - | $ | - | |||||||||
| Assets (liabilities) as of Ju ne 30 , 201 9 : | ||||||||||||||||
| Trading securities held in a “rabbi trust” (1) | $ | 11,816 | $ | 11,816 | $ | - | $ | - | ||||||||
| $ | 11,816 | $ | 11,816 | $ | - | $ | - |
| ( 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 | Gourmet Foods & Gift Baskets | Total | |||||||||||||
| (in thousands) | ||||||||||||||||
| Balance at July 1, 2018 | $ | 17,441 | $ | - | $ | 45,149 | $ | 62,590 | ||||||||
| Balance at June 30, 2019 | $ | 17,441 | $ | - | $ | 45,149 | $ | 62,590 | ||||||||
| Acquisition of Shari's Berries | $ | - | $ | - | $ | 12,121 | $ | 12,121 | ||||||||
| Balance at June 28, 2020 | $ | 17,441 | $ | - | $ | 57,270 | $ | 74,711 |
| June 28, 2020 | Ju ne 30 , 201 9 | |||||||||||||||||||||||||||||
| 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 | $ | 6,253 | $ | 1,167 | $ | 7,420 | $ | 6,148 | $ | 1,272 | |||||||||||||||
| Customer lists | 3 | - | 10 | 12,825 | 10,474 | 2,351 | 12,184 | 9,798 | 2,386 | |||||||||||||||||||||
| Other | 5 | - | 14 | 2,946 | 2,382 | 564 | 2,946 | 2,280 | 666 | |||||||||||||||||||||
| Total intangible assets with determinable lives | 23,191 | 19,109 | 4,082 | 22,550 | 18,226 | 4,324 | ||||||||||||||||||||||||
| Trademarks with indefinite lives | 62,191 | - | 62,191 | 55,291 | - | 55,291 | ||||||||||||||||||||||||
| Total identifiable intangible assets | $ | 85,382 | $ | 19,109 | $ | 66,273 | $ | 77,841 | $ | 18,226 | $ | 59,615 |
| Years ended | ||||||||||||
| June 28, 2020 | June 30, 2019 | July 1, 2018 | ||||||||||
| (in thousands) | ||||||||||||
| Current provision: | ||||||||||||
| Federal | $ | 14,727 | $ | 2,809 | $ | 3,385 | ||||||
| State | 4,383 | 2,710 | 1,514 | |||||||||
| Foreign | - | - | - | |||||||||
| Current income tax expense | 19,110 | 5,519 | 4,899 | |||||||||
| Deferred provision (benefit): | ||||||||||||
| Federal | (62 | ) | 3,138 | (9,331 | ) | |||||||
| State | (204 | ) | (427 | ) | 1,648 | |||||||
| Foreign | - | (13 | ) | 15 | ||||||||
| Deferred income tax expense (benefit) | (266 | ) | 2,698 | (7,668 | ) | |||||||
| Income tax expense (benefit) | $ | 18,844 | $ | 8,217 | $ | (2,769 | ) |
| Years ended | ||||||||||||
| June 28, 2020 | June 30, 2019 | July 1, 2018 | ||||||||||
| Tax at U.S. statutory rates | 21.0 | % | 21.0 | % | 28.0 | % | ||||||
| State income taxes, net of federal tax benefit | 4.5 | 4.4 | 5.7 | |||||||||
| Valuation allowance change | (0.3 | ) | (0.3 | ) | 2.6 | |||||||
| Non-deductible compensation | 1.1 | 0.7 | - | |||||||||
| Excess tax benefit from stock-based compensation | (1.0 | ) | (4.4 | ) | (1.6 | ) | ||||||
| Domestic production deduction | - | - | (2.0 | ) | ||||||||
| Tax credits | (1.1 | ) | (1.8 | ) | (2.5 | ) | ||||||
| Tax Act impact on deferred tax balance (1) | - | - | (32.0 | ) | ||||||||
| Return to provision | (0.3 | ) | (1.0 | ) | (5.8 | ) | ||||||
| Other, net | 0.3 | 0.5 | 0.3 | |||||||||
| Effective tax rate | 24.2 | % | 19.1 | % | (7.3 | )% |
| ( 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% June 30, 2019 and June 28, 2020. As a result of the Tax Act, the Company recorded a deferred tax benefit of $12.2 million during the fiscal year ended July 1, 2018, related to the change in deferred tax liabilities.Shortly after the Tax Act was enacted, the SEC Staff issued Staff Accounting Bulletin 118, “Income Tax Implications of the Tax Cuts and Jobs Act” (“SAB 118” ), which provided guidance on accounting for the Tax Act's impact. SAB 118 provided a measurement period during which a company acting in good faith may complete the accounting for the impacts of the Tax Act. We completed the assessment of the income tax effects of the Tax Act in the second quarter of fiscal 2019, with no adjustments recorded to the provisional amounts. |
| Years ended | ||||||||
| June 28, 2020 | June 30, 2019 | |||||||
| (in thousands) | ||||||||
| Deferred income tax assets: | ||||||||
| Loss and credit carryforwards | $ | 10,530 | $ | 10,955 | ||||
| Accrued expenses and reserves | 4,676 | 3,866 | ||||||
| Stock-based compensation | 2,190 | 1,798 | ||||||
| Deferred compensation | 2,455 | 2,150 | ||||||
| Operating lease liability | 17,551 | - | ||||||
| Gross deferred income tax assets | 37,402 | 18,769 | ||||||
| Less: Valuation allowance | (9,681 | ) | (9,872 | ) | ||||
| Deferred tax assets, net | 27,721 | 8,897 | ||||||
| Deferred income tax liabilities: | ||||||||
| Other intangibles | (15,337 | ) | (14,664 | ) | ||||
| Tax in excess of book depreciation | (24,336 | ) | (23,131 | ) | ||||
| Operating lease right-of-use asset | (16,680 | ) | ||||||
| Deferred tax liabilities | (56,353 | ) | (37,795 | ) | ||||
| Net deferred income tax liabilities | $ | (28,632 | ) | $ | (28,898 | ) |
| June 28, 2020 | Ju ne 30 , 201 9 | |||||||
| (in thousands) | ||||||||
| Finished goods | $ | 35,779 | $ | 36,820 | ||||
| Work-in-process | 16,536 | 17,535 | ||||||
| Raw materials | 45,445 | 38,006 | ||||||
| Total inventory | $ | 97,760 | $ | 92,361 |
| Year Ended | ||||
| June 28, 2020 | ||||
| (in thousands) | ||||
| Lease costs: | ||||
| Operating lease costs | $ | 13,646 | ||
| Variable lease costs | 14,706 | |||
| Short-term lease cost | 6,638 | |||
| Sublease income | (941 | ) | ||
| Total lease costs | $ | 34,049 |
| Year Ended | ||||
| June 28, 2020 | ||||
| (in thousands) | ||||
| Cash paid for amounts included in measurement of operating lease liabilities | $ | 11,916 | ||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 178 |
| June 28, 2020 | ||||
| (in thousands) | ||||
| Weighted-average remaining lease term - operating leases (in years) | 9.6 | |||
| Weighted-discount rate - operating leases | 3.8 | % |
| 2021 | $ | 10,812 | ||
| 2022 | 10,038 | |||
| 2023 | 9,890 | |||
| 2024 | 9,530 | |||
| 2025 | 7,163 | |||
| Thereafter | 37,802 | |||
| Total Future Minimum Lease Payments | 85,235 | |||
| Less Imputed Remaining Interest | 14,986 | |||
| Total | $ | 70,249 |
| Year Ended | ||||
| June 28, 2020 | ||||
| (in thousands) | ||||
| Lease costs: | ||||
| Operating lease costs | $ | 13,646 | ||
| Variable lease costs | 14,706 | |||
| Short-term lease cost | 6,638 | |||
| Sublease income | (941 | ) | ||
| Total lease costs | $ | 34,049 |
| Year Ended | ||||
| June 28, 2020 | ||||
| (in thousands) | ||||
| Cash paid for amounts included in measurement of operating lease liabilities | $ | 11,916 | ||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 178 |
| June 28, 2020 | ||||
| (in thousands) | ||||
| Weighted-average remaining lease term - operating leases (in years) | 9.6 | |||
| Weighted-discount rate - operating leases | 3.8 | % |
| 2021 | $ | 10,812 | ||
| 2022 | 10,038 | |||
| 2023 | 9,890 | |||
| 2024 | 9,530 | |||
| 2025 | 7,163 | |||
| Thereafter | 37,802 | |||
| Total Future Minimum Lease Payments | 85,235 | |||
| Less Imputed Remaining Interest | 14,986 | |||
| Total | $ | 70,249 |
| 2020 | $ | 16,588 | ||
| 2021 | 13,490 | |||
| 2022 | 12,081 | |||
| 2023 | 9,957 | |||
| 2024 | 9,498 | |||
| Thereafter | 44,953 | |||
| Total Future Minimum Lease Payments | $ | 106,567 |
| Shari's Berries Preliminary & Final Purchase Price Allocation | ||||
| (in thousands) | ||||
| Current assets | $ | 1,029 | ||
| Intangible assets | 7,540 | |||
| Goodwill | 12,121 | |||
| Total assets acquired | 20,690 | |||
| Current liabilities | 190 | |||
| Net assets acquired | $ | 20,500 |
| 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 28, 2020 | Ju ne 30 , 201 9 | |||||||
| (in thousands) | ||||||||
| Land | $ | 30,789 | $ | 30,789 | ||||
| Orchards in production and land improvements | 17,139 | 11,339 | ||||||
| Building and building improvements | 61,159 | 59,236 | ||||||
| Leasehold improvements | 13,675 | 13,861 | ||||||
| Production equipment and furniture and fixtures | 65,348 | 61,415 | ||||||
| Computer and telecommunication equipment | 55,381 | 53,694 | ||||||
| Software | 151,264 | 132,078 | ||||||
| Capital projects in progress - orchards | 8,130 | 9,902 | ||||||
| Property, plant and equipment, gross | 402,885 | 372,314 | ||||||
| Accumulated depreciation and amortization | (233,810 | ) | (205,633 | ) | ||||
| Property, plant and equipment, net | $ | 169,075 | $ | 166,681 |
| 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 28, 2020 | Ju ne 30 , 201 9 | |||||||
| (in thousands) | ||||||||
| Land | $ | 30,789 | $ | 30,789 | ||||
| Orchards in production and land improvements | 17,139 | 11,339 | ||||||
| Building and building improvements | 61,159 | 59,236 | ||||||
| Leasehold improvements | 13,675 | 13,861 | ||||||
| Production equipment and furniture and fixtures | 65,348 | 61,415 | ||||||
| Computer and telecommunication equipment | 55,381 | 53,694 | ||||||
| Software | 151,264 | 132,078 | ||||||
| Capital projects in progress - orchards | 8,130 | 9,902 | ||||||
| Property, plant and equipment, gross | 402,885 | 372,314 | ||||||
| Accumulated depreciation and amortization | (233,810 | ) | (205,633 | ) | ||||
| Property, plant and equipment, net | $ | 169,075 | $ | 166,681 |
| - | 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 28, 2020 | Ju ne 30 , 201 9 | |||||||
| (in thousands) | ||||||||
| Payroll and employee benefits | $ | 41,931 | $ | 28,585 | ||||
| Deferred revenue | 25,867 | 17,305 | ||||||
| Accrued marketing expenses | 14,680 | 14,423 | ||||||
| Accrued florist payout | 16,755 | 8,038 | ||||||
| Other | 42,508 | 28,442 | ||||||
| Accrued Expenses | $ | 141,741 | $ | 96,793 |
| Shari's Berries Preliminary & Final Purchase Price Allocation | ||||
| (in thousands) | ||||
| Current assets | $ | 1,029 | ||
| Intangible assets | 7,540 | |||
| Goodwill | 12,121 | |||
| Total assets acquired | 20,690 | |||
| Current liabilities | 190 | |||
| Net assets acquired | $ | 20,500 |
| Years Ended | ||||||||||||
| June 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | ||||||||||
| (in thousands) | ||||||||||||
| Stock options | $ | 104 | $ | 315 | $ | 429 | ||||||
| Restricted stock awards | 8,330 | 5,995 | 3,297 | |||||||||
| Total | 8,434 | 6,310 | 3,726 | |||||||||
| Deferred income tax benefit | 2,084 | 1,578 | 961 | |||||||||
| Stock-based compensation expense, net | $ | 6,350 | $ | 4,732 | $ | 2,765 |
| Years ended | ||||||||||||
| June 28, 2020 | June 30, 2019 | July 1, 2018 | ||||||||||
| (in thousands) | ||||||||||||
| Current provision: | ||||||||||||
| Federal | $ | 14,727 | $ | 2,809 | $ | 3,385 | ||||||
| State | 4,383 | 2,710 | 1,514 | |||||||||
| Foreign | - | - | - | |||||||||
| Current income tax expense | 19,110 | 5,519 | 4,899 | |||||||||
| Deferred provision (benefit): | ||||||||||||
| Federal | (62 | ) | 3,138 | (9,331 | ) | |||||||
| State | (204 | ) | (427 | ) | 1,648 | |||||||
| Foreign | - | (13 | ) | 15 | ||||||||
| Deferred income tax expense (benefit) | (266 | ) | 2,698 | (7,668 | ) | |||||||
| Income tax expense (benefit) | $ | 18,844 | $ | 8,217 | $ | (2,769 | ) |
| June 28, 2020 | Ju ne 30 , 201 9 | |||||||
| (in thousands) | ||||||||
| Revolver (1), (2) | $ | - | $ | - | ||||
| Term Loan (1), (2) | 95,000 | 100,000 | ||||||
| Deferred financing costs | (2,441 | ) | (3,027 | ) | ||||
| Total debt | 92,559 | 96,973 | ||||||
| Less: current debt | 5,000 | 5,000 | ||||||
| Long-term debt | $ | 87,559 | $ | 91,973 |
| Years ended | ||||||||
| June 28, 2020 | June 30, 2019 | |||||||
| (in thousands) | ||||||||
| Deferred income tax assets: | ||||||||
| Loss and credit carryforwards | $ | 10,530 | $ | 10,955 | ||||
| Accrued expenses and reserves | 4,676 | 3,866 | ||||||
| Stock-based compensation | 2,190 | 1,798 | ||||||
| Deferred compensation | 2,455 | 2,150 | ||||||
| Operating lease liability | 17,551 | - | ||||||
| Gross deferred income tax assets | 37,402 | 18,769 | ||||||
| Less: Valuation allowance | (9,681 | ) | (9,872 | ) | ||||
| Deferred tax assets, net | 27,721 | 8,897 | ||||||
| Deferred income tax liabilities: | ||||||||
| Other intangibles | (15,337 | ) | (14,664 | ) | ||||
| Tax in excess of book depreciation | (24,336 | ) | (23,131 | ) | ||||
| Operating lease right-of-use asset | (16,680 | ) | ||||||
| Deferred tax liabilities | (56,353 | ) | (37,795 | ) | ||||
| Net deferred income tax liabilities | $ | (28,632 | ) | $ | (28,898 | ) |
| Years Ended | ||||||||||||
| June 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | ||||||||||
| (in thousands, except per share data) | ||||||||||||
| Numerator: | ||||||||||||
| Net income | $ | 58,998 | $ | 34,766 | $ | 40,791 | ||||||
| Denominator: | ||||||||||||
| Weighted average shares outstanding | 64,463 | 64,342 | 64,666 | |||||||||
| Effect of dilutive securities: | ||||||||||||
| Employee stock options | 1,042 | 1,404 | 1,580 | |||||||||
| Employee restricted stock awards | 903 | 711 | 692 | |||||||||
| Total effect of dilutive securities | 1,945 | 2,115 | 2,272 | |||||||||
| Adjusted weighted-average shares and assumed conversions | 66,408 | 66,457 | 66,938 | |||||||||
| Net income per common share : | ||||||||||||
| Basic | $ | 0.92 | $ | 0.54 | $ | 0.63 | ||||||
| Diluted | $ | 0.89 | $ | 0.52 | $ | 0.61 |
| Years ended | ||||||||||||
| June 28, 2020 | June 30, 2019 | July 1, 2018 | ||||||||||
| Tax at U.S. statutory rates | 21.0 | % | 21.0 | % | 28.0 | % | ||||||
| State income taxes, net of federal tax benefit | 4.5 | 4.4 | 5.7 | |||||||||
| Valuation allowance change | (0.3 | ) | (0.3 | ) | 2.6 | |||||||
| Non-deductible compensation | 1.1 | 0.7 | - | |||||||||
| Excess tax benefit from stock-based compensation | (1.0 | ) | (4.4 | ) | (1.6 | ) | ||||||
| Domestic production deduction | - | - | (2.0 | ) | ||||||||
| Tax credits | (1.1 | ) | (1.8 | ) | (2.5 | ) | ||||||
| Tax Act impact on deferred tax balance (1) | - | - | (32.0 | ) | ||||||||
| Return to provision | (0.3 | ) | (1.0 | ) | (5.8 | ) | ||||||
| Other, net | 0.3 | 0.5 | 0.3 | |||||||||
| Effective tax rate | 24.2 | % | 19.1 | % | (7.3 | )% |
| Years Ended | ||||||||||||
| June 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | ||||||||||
| (in thousands) | ||||||||||||
| Marketing and sales | $ | 3,999 | $ | 2,725 | $ | 989 | ||||||
| Technology and development | 649 | 411 | 198 | |||||||||
| General and administrative | 3,786 | 3,174 | 2,539 | |||||||||
| Total | $ | 8,434 | $ | 6,310 | $ | 3,726 |
| Carrying Value | Fair Value Measurements Assets (Liabilities) | |||||||||||||||
| Level 1 | Level 2 | Level 3 | ||||||||||||||
| (in thousands) | ||||||||||||||||
| Assets (liabilities) as of June 28, 2020 : | ||||||||||||||||
| Trading securities held in a “rabbi trust” (1) | $ | 13,442 | $ | 13,442 | $ | - | $ | - | ||||||||
| $ | 13,442 | $ | 13,442 | $ | - | $ | - | |||||||||
| Assets (liabilities) as of Ju ne 30 , 201 9 : | ||||||||||||||||
| Trading securities held in a “rabbi trust” (1) | $ | 11,816 | $ | 11,816 | $ | - | $ | - | ||||||||
| $ | 11,816 | $ | 11,816 | $ | - | $ | - |
| 2020 | $ | 16,588 | ||
| 2021 | 13,490 | |||
| 2022 | 12,081 | |||
| 2023 | 9,957 | |||
| 2024 | 9,498 | |||
| Thereafter | 44,953 | |||
| Total Future Minimum Lease Payments | $ | 106,567 |
| Consumer Floral | BloomNet | Gourmet Foods & Gift Baskets | Total | |||||||||||||
| (in thousands) | ||||||||||||||||
| Balance at July 1, 2018 | $ | 17,441 | $ | - | $ | 45,149 | $ | 62,590 | ||||||||
| Balance at June 30, 2019 | $ | 17,441 | $ | - | $ | 45,149 | $ | 62,590 | ||||||||
| Acquisition of Shari's Berries | $ | - | $ | - | $ | 12,121 | $ | 12,121 | ||||||||
| Balance at June 28, 2020 | $ | 17,441 | $ | - | $ | 57,270 | $ | 74,711 |
| June 28, 2020 | Ju ne 30 , 201 9 | |||||||
| (in thousands) | ||||||||
| Finished goods | $ | 35,779 | $ | 36,820 | ||||
| Work-in-process | 16,536 | 17,535 | ||||||
| Raw materials | 45,445 | 38,006 | ||||||
| Total inventory | $ | 97,760 | $ | 92,361 |
| | | Shares | Weighted Average Grant Date Fair Value | | ||||
| | | | | | | | | |
| Non-vested – beginning of period | | | 1,438,592 | | | $ | 10.81 | |
| Granted | | | 759,554 | | | $ | 13.32 | |
| Vested | | | (470,350 | ) | | $ | 10.40 | |
| Forfeited | | | (119,328 | ) | | $ | 12.15 | |
| Non-vested - end of period | | | 1,608,468 | | | $ | 12.01 | |
| Years ended | ||||||||||||
| Net revenues | June 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | |||||||||
| (in thousands) | ||||||||||||
| Net revenues: | ||||||||||||
| 1-800-Flowers.com Consumer Floral | $ | 593,197 | $ | 497,765 | $ | 457,460 | ||||||
| BloomNet | 111,766 | 102,876 | 89,569 | |||||||||
| Gourmet Foods & Gift Baskets | 785,547 | 648,418 | 605,523 | |||||||||
| Corporate | 591 | 1,105 | 1,114 | |||||||||
| Intercompany eliminations | (1,464 | ) | (1,541 | ) | (1,745 | ) | ||||||
| Total net revenues | $ | 1,489,637 | $ | 1,248,623 | $ | 1,151,921 |
| Years ended | ||||||||||||
| Operating Income from Continuing Operations | June 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | |||||||||
| (in thousands) | ||||||||||||
| Segment Contribution Margin: | ||||||||||||
| 1-800-Flowers.com Consumer Floral | $ | 73,806 | $ | 49,653 | $ | 50,808 | ||||||
| BloomNet | 35,111 | 34,705 | 31,683 | |||||||||
| Gourmet Foods & Gift Baskets | 110,627 | 82,319 | 70,927 | |||||||||
| Segment Contribution Margin Subtotal | 219,544 | 166,677 | 153,418 | |||||||||
| Corporate (a) | (106,667 | ) | (91,604 | ) | (79,901 | ) | ||||||
| Depreciation and amortization | (32,513 | ) | (29,965 | ) | (32,469 | ) | ||||||
| Operating income | $ | 80,364 | $ | 45,108 | $ | 41,048 |
| 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 | 205,000 | 0.3 | $ | 1.79 | 205,000 | $ | 1.79 | ||||||||||||||
| $ | 2.63 | 1,000,000 | 1.4 | $ | 2.63 | 1,000,000 | $ | 2.63 | ||||||||||||||
| $ | 10.20 | 10,000 | 4.8 | $ | 10.20 | 10,000 | $ | 10.20 | ||||||||||||||
| $ | 20.72 | 15,000 | 9.9 | $ | 20.72 | - | $ | - | ||||||||||||||
1,230,000 | 1.3 | $ | 2.77 | 1,215,000 | $ | 2.55 |
| Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||
| (in years) | (in thousands) | |||||||||||||||
| Outstanding beginning of period | 1,365,000 | $ | 2.48 | |||||||||||||
| Granted | 15,000 | $ | 20.72 | |||||||||||||
| Exercised | (150,000 | ) | $ | 1.90 | ||||||||||||
| Forfeited/Expired | - | $ | - | |||||||||||||
| Outstanding end of period | 1,230,000 | $ | 2.77 | 1.3 | $ | 21,043 | ||||||||||
| Exercisable at June 28, 2020 | 1,215,000 | $ | 2.55 | 1.3 | $ | 21,043 |
| Years ended | ||||||||||||
| Ju ne 28 , 20 20 | June 30 , 201 9 (1) | Ju ly 1 , 201 8 (1) | ||||||||||
| Weighted average fair value of options granted | $ | 10.11 | n/a | n/a | ||||||||
| Expected volatility | 60 | % | n/a | n/a | ||||||||
| Expected life (in years) | 8.0 | n/a | n/a | |||||||||
| Risk-free interest rate | n/a | n/a | n/a | |||||||||
| Expected dividend yield | 0.0 | % | n/a | n/a |
| Years ended | ||||||||||||
| Net revenues | June 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | |||||||||
| (in thousands) | ||||||||||||
| Net revenues: | ||||||||||||
| 1-800-Flowers.com Consumer Floral | $ | 593,197 | $ | 497,765 | $ | 457,460 | ||||||
| BloomNet | 111,766 | 102,876 | 89,569 | |||||||||
| Gourmet Foods & Gift Baskets | 785,547 | 648,418 | 605,523 | |||||||||
| Corporate | 591 | 1,105 | 1,114 | |||||||||
| Intercompany eliminations | (1,464 | ) | (1,541 | ) | (1,745 | ) | ||||||
| Total net revenues | $ | 1,489,637 | $ | 1,248,623 | $ | 1,151,921 |
| Years ended | ||||||||||||
| Operating Income from Continuing Operations | June 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | |||||||||
| (in thousands) | ||||||||||||
| Segment Contribution Margin: | ||||||||||||
| 1-800-Flowers.com Consumer Floral | $ | 73,806 | $ | 49,653 | $ | 50,808 | ||||||
| BloomNet | 35,111 | 34,705 | 31,683 | |||||||||
| Gourmet Foods & Gift Baskets | 110,627 | 82,319 | 70,927 | |||||||||
| Segment Contribution Margin Subtotal | 219,544 | 166,677 | 153,418 | |||||||||
| Corporate (a) | (106,667 | ) | (91,604 | ) | (79,901 | ) | ||||||
| Depreciation and amortization | (32,513 | ) | (29,965 | ) | (32,469 | ) | ||||||
| Operating income | $ | 80,364 | $ | 45,108 | $ | 41,048 |
| (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 28, 2020 | Ju ne 30 , 201 9 | July 1 , 201 8 | ||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Floral | BloomNet | Gourmet Foods & Gift Baskets | Consolidated | Consumer Floral | BloomNet | Gourmet Foods & Gift Baskets | Consolidated | Consumer Floral | BloomNet | Gourmet Foods & Gift Baskets | Consolidated | |||||||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
| E-commerce | $ | 585,585 | $ | - | $ | 644,800 | $ | 1,230,385 | $ | 489,463 | $ | - | $ | 508,897 | $ | 998,360 | $ | 448,943 | $ | - | $ | 472,905 | $ | 921,848 | ||||||||||||||||||||||||
| Retail | 4,318 | - | 37,076 | 41,394 | 4,706 | - | 45,862 | 50,568 | 4,743 | - | 46,860 | 51,603 | ||||||||||||||||||||||||||||||||||||
| Wholesale | - | 33,675 | 103,671 | 137,346 | - | 29,744 | 93,659 | 123,403 | - | 28,747 | 85,758 | 114,505 | ||||||||||||||||||||||||||||||||||||
| BloomNet Services | - | 78,091 | - | 78,091 | - | 73,132 | - | 73,132 | - | 60,822 | - | 60,822 | ||||||||||||||||||||||||||||||||||||
| Other | 3,294 | - | - | 3,294 | 3,596 | - | - | 3,596 | 3,774 | - | - | 3,774 | ||||||||||||||||||||||||||||||||||||
| Corporate | - | - | - | 591 | - | - | - | 1,105 | - | - | - | 1,114 | ||||||||||||||||||||||||||||||||||||
| Eliminations | - | - | - | (1,464 | ) | - | - | - | (1,541 | ) | - | - | - | (1,745 | ) | |||||||||||||||||||||||||||||||||
| Total net revenues | $ | 593,197 | $ | 111,766 | $ | 785,547 | $ | 1,489,637 | $ | 497,765 | $ | 102,876 | $ | 648,418 | $ | 1,248,623 | $ | 457,460 | $ | 89,569 | $ | 605,523 | $ | 1,151,921 |