Assets Current assets: Cash and cash equivalents Trade receivables, net Inventories Prepaid and other Total meat assds Property, plant and equipment net Goodwill Other intangibles, net Other assets Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued expenses Current maturities of longterm debt Total current liabilities Longterm debt Deferred tax liabilities Other liabilities Total liabilities Commitments and contingencies (Note 16) Stockholders' equity: Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued Class A common stock, $.01 par value, 200,000,000 shares authorized, $2,071,293 and 51,227,779 shares issued in 2018 and 201?, respectively Class B common stock, $.01 par value, 200,000,000 shares authorized, 33,822,823 and 33,901,603 shares issued in 2018 and 201 T, respectively Additional paidin capital Retained earnings (decit) Accumulated other comprehensive loss Treasury stock, at cost, 15,928,290 and 14,209,231 Class A shares in 2018 and 201?, respectively, and 5,280,000 Class B shares in 2018 and 201? Total stockholders' equity Total liabilities and stockholders' equity July 1, 2013 July 2, 2017 147,240 149,732 12,935 14,073 33,325 75,352 24,021 17,735 273,021 257,402 153,340 151,331 52,590 52,590 59,323 51,090 12,115 10,007 570,339 552,470 41,437 27,731 73,299 90,205 10,053 7,133 124,799 125,175 92,257 101,377 25,200 33,353 12,719 9,311 255935 270,231 520 513 333 339 341,733 337,725 73,429 32,533 (200) (137) (100,955) (33,790) 314304 232,239 570,339 552,470 \fYears ended July I, 2018 Jilly 2, 2017 Jilly 3, 2016 Net revenues $ 1,151,921 $ 1,193,625 $ 1,173,024 Cost ofrevenuec 662,896 673,344 655,566 Gross prot 489,025 520,281 517,458 Operating 681mm: Marketing and sales 298,810 317,527 318,175 Technology and development 39,258 38,903 39,234 Geml and administrative 77,440 84,116 84,383 Depreciation and amortization 32,469 33,376 32,384 Total operating expenses 447,977 473,922 474,176 Operating income 41,043 46,359 43,282 Interest expense, net 3,631 5,821 6,674 Othel (income) expense, net (605] (15,471) (14,839) Income before income taxes 38,022 56,009 51,447II Income tax expense (bmet) (2,769) 11,968 15,579 Net Income 40,791 44,041 35,868 Less: Net loss attributable to nonconlmlling interst (1,007) Net income attributable to 1800FLOWERSCOM, Inc. 3 40,791 $ 44,041 $ 36,875 Basic net income per common share attributable to 1-800FLOWERSCOM, Inc. 3 0.53 $ 0.68 $ 0.57 Diluted net income per common share attributable to 1S00FLOWERS.COM, Inc. 3 0-61 $ 0-65 $ 0-55 Weighted average shares used in the calculation ofnet income per common share: Basic 64,666 65,191 64,896 Diluted 66,938 67,735 67,083 \f(lass A Shares Amount Balsam at June23,2015 42,375,291 $ 429 Net income - Tnnslsm adjustmenl _ Noncoutrojng interest mite o" Conversion of Claw B sin-ck into [3113 A stock Stock-based compensaon Ezeitise of stock options Excess tax benet from stockbased compensaon - Acquisition of Class A Irenenlystock - 4,047,040 379,363 1,0445 10 {115313 Slum Amount 39,310,044 3 (4,047,040) Paidin Earning: Comm Loss Capital (Decit) 393 3 36,375 (49) - 6,334 - 3,507 319,103 $93,273) 5 Treasury Stock (371} $17,154,475 165 - - 1,714,550 (62,332} $ (15,223) 203,449 5 3 6,375 165 60 6,343 3,517 2,400 (15,223) 1,307 (1,007} 37 (337} Smokluleni' Nonmntmlng Tull] Interest 151'\"! $210,256 35,363 2.52 (327} 6,343 3,517 2,400 (15,23) Balanoe stJnlj' 3 2016 43,346,449 Net income Tnnslsm sdjuetlnun Conversion of Class 13 stuck into Class A stock Smithased cmpmsann Exercise of stock options Aoquisiiinn of Class A truism}? stuck Balsam atJnly 2, 2017 1,361,401 965,429 54,500 51,227,779 Net income - Tmslalm adjustment Conversion of Class B stuck into Class A stock Stock-based cmpmsstion Exercise of stock 01360113 73,730 622,734 142,000 14 10 35,263,004 (1,361,401) 33,901,603 5 (73,730} 353 331,349 (11,403) 44,04 1 (14) - . - 3,092 - 235 - 337,726 $ 32,633 40,79 1 (1) - - - 3,721 - - 336 - (146} 13,369,025 (41) - 1,120,706 (73,055} (10,735) (137} 19,939,731 3 (33,790)$ (1 3) 242,536 44,041 (4 1) 6,102 236 (10,735) 2 32,239 40,791 (13) 3,726 337 (12,176) 242,536 44,041 (41] 6102 236 (10,735] 3 232,239 40,791 (13) 3,726 337 (12,176] Operating activities: Net income Reconciliation ofnet income to net cash prm'idedbj' operating activities, net of acquisionae'dispositions: Gain on sale (1mele Depreciation and amortization Ammtizatimafdefeimdmncing meta Deferred income taxes Foreign equity imeetmeminniaiimem Loss on salea'iinpainnenr ofiFlmiat Bad bt upenae Stock-based compensation Excess tax bmel from stockhaed compensation Other non-cash items Changes in operating items: Trade receivables Inaniame receivable Invenioriei Prqieid and utter Accounts payable and accrued expenses Odieraaaete Otherliabjliliee Nercaahprovidbyeperang activities lmEm' Elm" at" "E5. Proceeds 'om sale ofbnsineae WorkingcapiteladjuxmnrelatedtoseofFaimieMay Capital expenditures, net ofnoncaahexpenditnree Netcaah proviMbj'IEmednl) iinruting activities FilliIIIiIIg activities: Acquisition oftreasnry stock Excess tax baiei from stock based computation Proceeds from exercise ofemployee stock options Prooeeda'omhank borrowings Repeyineni ofnotee payable andbenk borrowings Debtimnnoemsts Net cash need in nancing activities Netcbange jncaahandcashequivaknts Cashindcaahequivalents: Beginningofyea: Ecdofyear Yell-sailed July 1, 20111 July 2, 2017 July 5, 2015 40,791 44,041 3 35,358 _ (14:50?) _ 32,469 33,376 32,384 953 1,532 1,791 (7,553} (1,649} (3,000) 2,278 - 1,990 1,058 1,158 1,278 3,726 6,102 6,343 - - (1,400] 565 133 5 17 70 (6,220} (4,210) _ _ 1979 (12,963} (9,277} (10,216) {5,235} 12,509) (1,550] 5,249 9,132 (6,429) {35} (35) (29] 455 (65} 89 53,341 51,010 57,673 - 1 1 1,955 - {3,590} - - (33,306} (33,653} (33,938) {41,805} 78,302 (33,938] (12,176} (10,735} (15,223) _ _ 1,403 337 285 3,5 17 30,000 181 ,000 173,000 (37,188} (186,451) (192,543) _ {1:505} _ (19,027} (17,405} (23,849) (2,492} 121,905 (114) 149,732 27,826 27,940 147,240 149,732 3 27,325