Calculate the discounted cash flow for the company 1800Flowers
Years Ended June 28, June 30, 2019 July 1, 2018 2020 $ 58,998 $ 34,766 $ 40,791 32,513 646 (266) Operating activities: Net income Reconciliation of net income to net cash provided by operating activities net of dispositions: Depreciation and amortization Amortization of deferred financing costs Deferred income taxes Bad debt expense Stock-based compensation Other non-cash items Changes in operating items: Trade receivables Inventories Prepaid and other Accounts payable and accrued expenses Other assets and other liabilities Net cash provided by operating activities 29,965 969 2,698 1,383 6,310 (16) 32,469 953 (7,668) 1,068 3,726 565 4,143 8,434 1,032 (6,947) (4,371) (726) 44,359 1,602 139,417 (822) (3,536) (2,313) 8,846 (150) 78,100 70 (12,963) (6,286) 5,249 367 58,341 (32,560) (33,306) (34,703) (20,500) Investing activities: Capital expenditures, net of non-cash expenditures Acquisitions, net of cash acquired Working capital adjustment related to sale of Fannie May Purchase of equity investments Net cash used in investing activities (8,500) (1,176) (56,379) (32,560) (41,806) (10,680) 285 Financing activities: Acquisition of treasury stock Proceeds from exercise of employee stock options Proceeds from bank borrowings Repayment of notes payable and bank borrowings Debt issuance costs Net cash used in financing activities (14,766) 1,236 32,250 (37,187) (1,390) (19,857) (12,176) 337 30,000 (37,188) 20,000 (25,000) (60) (15,455) (19,027) 67,583 25,683 (2,492) Net change in cash and cash equivalents Cash and cash equivalents: Beginning of year End of year 172,923 $ 240,506 147,240 172,923 149,732 $ 147,240 $ Supplemental Cash Flow Information: - 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. See accompanying Notes to Consolidated Financial Statements. Consolidated Statements of Stockholders' Equity 1-800-FLOWERS.COM, Inc. and Subsidiaries Years ended June 28, 2020, June 30, 2019 and July 1, 2018 (in thousands, except share data) Accumulated Common Stock Additional Retained Other Class A Class B Paid-in Earnings Comprehensive Treasury Stock Shares Amount Shares Amount Capital (Deficit) Loss Shares Amount Total Stockholders' Equity Balance at July 2, 2017 51,227,779 $ 513 33,901,603 $ 339 $ 337,726 $ 32,638 $ (187) 19,989,731 $ (88,790) $ 282,239 Net Income 40,791 40,791 Translation adjustment (13) (13) Conversion of Class B stock into Class A stock 78,780 1 (78,780) (1) Stock-based compensation 622,734 5 3,721 3,726 Exercise of stock options 142,000 1 336 337 Acquisition of Class A treasury stock 1,269,059 (12,176) (12,176) Balance at July 1, 2018 52,071,293 520 33,822,823 338 341,783 73,429 (200) 21,258,790 (100,966) 314,904 Net Income 34,766 34,766 Translation adjustment (69) (69) Stock-based compensation 411,600 6,306 6,310 Exercise of stock options 601,234 1,230 1,236 Other 330 330 Acquisition of Class A treasury stock 1.230,303 (14,766) (14,766) Balance at June 30, 2019 53,084,127 530 33,822,823 338 349,319 108,525 (269) 22,489,093 (115,732) 342,711 Net Income 58,998 58,998 Translation adjustment 26 26 Stock-based compensation 470,350 5 8,429 8,434 Exercise of stock options 150,000 2 283 285 Acquisition of Class A treasury stock 754,458 (10,680) (10,680) Balance at June 28, 2020 53,704,477 $ 537 33,822,823 $ 338 $ 358,031 $ 167,523 $ (243) 23,243,551 $(126,412) $ 399,774 Consolidated Statements of Income 1-800-FLOWERS.COM, Inc. and Subsidiaries (in thousands, except per share data) June 28, 2020 Years Ended June 30, 2019 July 1, 2018 Net revenues $ 1,489,637 $ 1,248,623 $ 1,151,921 662,896 Cost of revenues 867,441 722,502 Gross profit 622,196 526,121 489,025 Operating expenses: Marketing and sales Technology and development 319,636 298,810 363,227 48,698 97,394 43,758 39,258 General and administrative 87,654 77,440 Depreciation and amortization 32,513 29,965 32,469 541,832 481,013 447,977 80,364 45, 108 41,048 Total operating expenses Operating income Interest expense, net Other income (loss) 2,438 2,769 3,631 644 605 (84) 77,842 Income before income taxes 42,983 38,022 Income tax expense (benefit) 18,844 8,217 (2,769) 40,791 Net Income $ 58,998 $ 34,766 $ Basic net income per common share $ 0.92 $ 0.54 $ 0.63 Diluted net income per common share $ 0.89 $ 0.52 $ 0.61 Weighted average shares used in the calculation of net income per common share: Basic 64,463 64,342 64,666 Diluted 66,408 66,457 66,938 See accompanying Notes to Consolidated Financial Statements. Management's Discussion and Analysis (continued) 1-800-FLOWERS.COM, Inc. and Subsidiaries Quarterly Results of Operations The following table provides unaudited quarterly consolidated results of operations for each quarter of fiscal years 2020 and 2019. The Company believes this unaudited information has been prepared substantially on the same basis as the annual audited consolidated financial statements and all necessary adjustments, consisting of only normal recurring adjustments, have been included in the amounts stated below to present fairly the Company's results of operations. The operating results for any quarter are not necessarily indicative of the operating results for any future period. Jun. 28, Mar. 29, Dec 29, Sep. 29, Jun. 30, Mar. 31, Dec 30, Sep. 30, 2020 2020 2019 2019 2019 2019 2018 2018 (in thousands, except per share data) Net revenues: E-commerce (telephonic/online) $ 382,400 $ 231,851 487,084 $ 129,050 $ 217,477 $ 204,361 $ 458,821 $ 117,700 Other 35,556 46,925 118,558 58,213 41,921 44,052 112,495 51,796 Total net revenues 417,956 278,776 605,642 187,263 259,398 248,413 571,316 169,496 Cost of revenues 248,530 171,324 336,470 111,117 154,164 150,893 316,489 100,956 Gross profit 169,426 107,452 269,172 76,146 105,234 97,520 254,827 68,540 Operating expenses: Marketing and sales 100,378 78,606 127,404 56,839 75,855 71,163 119,664 52,954 Technology and development 14,262 11,900 11,733 10,803 11,062 11,511 10,906 10,279 General and administrative 33,207 20,031 22,634 21,522 23, 174 22,447 21,603 20,430 Depreciation and amortization 9,245 7.803 7,830 7,635 7,125 7,028 7,969 7,843 Total operating expenses 157,092 118,340 169,601 96,799 117,216 112,149 160,142 91,506 12,334 (10,888) 99,571 (20,653) (11,982) (14,629) 94,685 (22,966) 711 147 985 595 379 (30) 1,430 990 Operating income (loss) Interest (income) expense, net Other income (expense), net Income (loss) before income taxes 1,630 (2,605) 975 (84) 351 1,285 (1,266) 274 13,253 (13,640) 99,561 (21,332) (12,010) (13,314) 91,989 (23,682) Income tax expense (benefit) 3,479 25,409 (3,705) (6,416) (3,983) (9,657) $ (6,061 ) $ (15,271) $ (5,073) 23,411 (8,241) $ 68,578 Net income (loss) $ 9,774 $ 74,152 (8,305) $ $ (17,266) Basic net income (loss) per common share $ 0.15 $ (0.15) $ 1.15 $ (0.24) $ (0.13) $ (0.13) $ 1.07 $ (0.27) Diluted net income (loss) per common share $ 0.15 $ (0.15) $ 1.12 $ (0.24) $ (0.13) $ (0.13) $ 1.04 $ (0.27) Weighted average shares used in the calculation of net income (loss) per common share: Basic Diluted 64,283 66,385 64,348 64,348 64,687 66,401 64,503 64,503 64,343 64,343 64,194 64,194 64,209 66,136 64.620 64,620 The Company's quarterly results may experience seasonal fluctuations - see the Seasonality section in Item 1 for details. Refer above to the Results of Operations section in Item 7 for a discussion of significant events and transactions. 20 Years Ended June 28, June 30, 2019 July 1, 2018 2020 $ 58,998 $ 34,766 $ 40,791 32,513 646 (266) Operating activities: Net income Reconciliation of net income to net cash provided by operating activities net of dispositions: Depreciation and amortization Amortization of deferred financing costs Deferred income taxes Bad debt expense Stock-based compensation Other non-cash items Changes in operating items: Trade receivables Inventories Prepaid and other Accounts payable and accrued expenses Other assets and other liabilities Net cash provided by operating activities 29,965 969 2,698 1,383 6,310 (16) 32,469 953 (7,668) 1,068 3,726 565 4,143 8,434 1,032 (6,947) (4,371) (726) 44,359 1,602 139,417 (822) (3,536) (2,313) 8,846 (150) 78,100 70 (12,963) (6,286) 5,249 367 58,341 (32,560) (33,306) (34,703) (20,500) Investing activities: Capital expenditures, net of non-cash expenditures Acquisitions, net of cash acquired Working capital adjustment related to sale of Fannie May Purchase of equity investments Net cash used in investing activities (8,500) (1,176) (56,379) (32,560) (41,806) (10,680) 285 Financing activities: Acquisition of treasury stock Proceeds from exercise of employee stock options Proceeds from bank borrowings Repayment of notes payable and bank borrowings Debt issuance costs Net cash used in financing activities (14,766) 1,236 32,250 (37,187) (1,390) (19,857) (12,176) 337 30,000 (37,188) 20,000 (25,000) (60) (15,455) (19,027) 67,583 25,683 (2,492) Net change in cash and cash equivalents Cash and cash equivalents: Beginning of year End of year 172,923 $ 240,506 147,240 172,923 149,732 $ 147,240 $ Supplemental Cash Flow Information: - 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. See accompanying Notes to Consolidated Financial Statements. Consolidated Statements of Stockholders' Equity 1-800-FLOWERS.COM, Inc. and Subsidiaries Years ended June 28, 2020, June 30, 2019 and July 1, 2018 (in thousands, except share data) Accumulated Common Stock Additional Retained Other Class A Class B Paid-in Earnings Comprehensive Treasury Stock Shares Amount Shares Amount Capital (Deficit) Loss Shares Amount Total Stockholders' Equity Balance at July 2, 2017 51,227,779 $ 513 33,901,603 $ 339 $ 337,726 $ 32,638 $ (187) 19,989,731 $ (88,790) $ 282,239 Net Income 40,791 40,791 Translation adjustment (13) (13) Conversion of Class B stock into Class A stock 78,780 1 (78,780) (1) Stock-based compensation 622,734 5 3,721 3,726 Exercise of stock options 142,000 1 336 337 Acquisition of Class A treasury stock 1,269,059 (12,176) (12,176) Balance at July 1, 2018 52,071,293 520 33,822,823 338 341,783 73,429 (200) 21,258,790 (100,966) 314,904 Net Income 34,766 34,766 Translation adjustment (69) (69) Stock-based compensation 411,600 6,306 6,310 Exercise of stock options 601,234 1,230 1,236 Other 330 330 Acquisition of Class A treasury stock 1.230,303 (14,766) (14,766) Balance at June 30, 2019 53,084,127 530 33,822,823 338 349,319 108,525 (269) 22,489,093 (115,732) 342,711 Net Income 58,998 58,998 Translation adjustment 26 26 Stock-based compensation 470,350 5 8,429 8,434 Exercise of stock options 150,000 2 283 285 Acquisition of Class A treasury stock 754,458 (10,680) (10,680) Balance at June 28, 2020 53,704,477 $ 537 33,822,823 $ 338 $ 358,031 $ 167,523 $ (243) 23,243,551 $(126,412) $ 399,774 Consolidated Statements of Income 1-800-FLOWERS.COM, Inc. and Subsidiaries (in thousands, except per share data) June 28, 2020 Years Ended June 30, 2019 July 1, 2018 Net revenues $ 1,489,637 $ 1,248,623 $ 1,151,921 662,896 Cost of revenues 867,441 722,502 Gross profit 622,196 526,121 489,025 Operating expenses: Marketing and sales Technology and development 319,636 298,810 363,227 48,698 97,394 43,758 39,258 General and administrative 87,654 77,440 Depreciation and amortization 32,513 29,965 32,469 541,832 481,013 447,977 80,364 45, 108 41,048 Total operating expenses Operating income Interest expense, net Other income (loss) 2,438 2,769 3,631 644 605 (84) 77,842 Income before income taxes 42,983 38,022 Income tax expense (benefit) 18,844 8,217 (2,769) 40,791 Net Income $ 58,998 $ 34,766 $ Basic net income per common share $ 0.92 $ 0.54 $ 0.63 Diluted net income per common share $ 0.89 $ 0.52 $ 0.61 Weighted average shares used in the calculation of net income per common share: Basic 64,463 64,342 64,666 Diluted 66,408 66,457 66,938 See accompanying Notes to Consolidated Financial Statements. Management's Discussion and Analysis (continued) 1-800-FLOWERS.COM, Inc. and Subsidiaries Quarterly Results of Operations The following table provides unaudited quarterly consolidated results of operations for each quarter of fiscal years 2020 and 2019. The Company believes this unaudited information has been prepared substantially on the same basis as the annual audited consolidated financial statements and all necessary adjustments, consisting of only normal recurring adjustments, have been included in the amounts stated below to present fairly the Company's results of operations. The operating results for any quarter are not necessarily indicative of the operating results for any future period. Jun. 28, Mar. 29, Dec 29, Sep. 29, Jun. 30, Mar. 31, Dec 30, Sep. 30, 2020 2020 2019 2019 2019 2019 2018 2018 (in thousands, except per share data) Net revenues: E-commerce (telephonic/online) $ 382,400 $ 231,851 487,084 $ 129,050 $ 217,477 $ 204,361 $ 458,821 $ 117,700 Other 35,556 46,925 118,558 58,213 41,921 44,052 112,495 51,796 Total net revenues 417,956 278,776 605,642 187,263 259,398 248,413 571,316 169,496 Cost of revenues 248,530 171,324 336,470 111,117 154,164 150,893 316,489 100,956 Gross profit 169,426 107,452 269,172 76,146 105,234 97,520 254,827 68,540 Operating expenses: Marketing and sales 100,378 78,606 127,404 56,839 75,855 71,163 119,664 52,954 Technology and development 14,262 11,900 11,733 10,803 11,062 11,511 10,906 10,279 General and administrative 33,207 20,031 22,634 21,522 23, 174 22,447 21,603 20,430 Depreciation and amortization 9,245 7.803 7,830 7,635 7,125 7,028 7,969 7,843 Total operating expenses 157,092 118,340 169,601 96,799 117,216 112,149 160,142 91,506 12,334 (10,888) 99,571 (20,653) (11,982) (14,629) 94,685 (22,966) 711 147 985 595 379 (30) 1,430 990 Operating income (loss) Interest (income) expense, net Other income (expense), net Income (loss) before income taxes 1,630 (2,605) 975 (84) 351 1,285 (1,266) 274 13,253 (13,640) 99,561 (21,332) (12,010) (13,314) 91,989 (23,682) Income tax expense (benefit) 3,479 25,409 (3,705) (6,416) (3,983) (9,657) $ (6,061 ) $ (15,271) $ (5,073) 23,411 (8,241) $ 68,578 Net income (loss) $ 9,774 $ 74,152 (8,305) $ $ (17,266) Basic net income (loss) per common share $ 0.15 $ (0.15) $ 1.15 $ (0.24) $ (0.13) $ (0.13) $ 1.07 $ (0.27) Diluted net income (loss) per common share $ 0.15 $ (0.15) $ 1.12 $ (0.24) $ (0.13) $ (0.13) $ 1.04 $ (0.27) Weighted average shares used in the calculation of net income (loss) per common share: Basic Diluted 64,283 66,385 64,348 64,348 64,687 66,401 64,503 64,503 64,343 64,343 64,194 64,194 64,209 66,136 64.620 64,620 The Company's quarterly results may experience seasonal fluctuations - see the Seasonality section in Item 1 for details. Refer above to the Results of Operations section in Item 7 for a discussion of significant events and transactions. 20
