Massive share slump at FTD/Interflora and President steps down

FTD news HeroSince July 19th, following a press release posted on their corporate site, FTD, owners of the Interflora brand and the company responsible for florist memberships here in the UK, have seen their share price slip a massive 19%; a further drop on the losses we reported back in March.  The release, which we print verbatim below, announced a mass change of personnel following poor Q2 results and a lack lustre performance overall.  Any comment we make will appear in the Editors Blog next week.

FTD Companies, Inc. Announces Review of Strategic Alternatives, Corporate Restructuring and Cost Savings Plan and Preliminary Second Quarter Financial Results

Scott D. Levin Appointed Interim President and Chief Executive Officer
Company Provides Update on 2018 Business Outlook

FTD Companies, Inc. (Nasdaq:FTD) (“FTD” or the “Company”), a premier floral and gifting company, today announced that its Board of Directors has initiated a review of strategic alternatives focused on maximizing stockholder value. The strategic alternatives expected to be considered include, but are not limited to, a sale or merger of the Company,

FTD continuing to pursue value-enhancing initiatives as a standalone company, a capital structure optimization that may involve potential financings, or the sale or other disposition of certain of the Company’s businesses or assets. FTD has retained Moelis & Company LLC as financial advisor to assist with its strategic alternatives review.
The FTD Board of Directors also announced that it has appointed Scott D. Levin, currently FTD’s Executive Vice President, General Counsel and Secretary, as interim President and Chief Executive Officer. Mr. Levin succeeds John C. Walden, who has stepped down from these positions and from FTD's board of directors, effective immediately.

FTD also announced today a corporate restructuring and cost savings plan, under which it has identified opportunities to optimize its operations, drive efficiency and reduce costs. Under this plan, FTD expects to generate approximately $18 million to $23 million in annualized run-rate cost savings in 2019, with approximately $4 million to $5 million in savings expected in the second half of 2018. FTD expects to incur pre-tax restructuring and corporate reorganization costs in the second half of 2018 in connection with the implementation of this plan. The Company expects to disclose an estimate of these costs when it reports financial results for the second quarter ended June 30, 2018.

As a result of these corporate restructuring efforts, the Chief Operating Officer position held by Simha Kumar has been eliminated, effective immediately. In addition, Jeffrey D. T. Severts, FTD’s Executive Vice President and Chief Marketing Officer, will be leaving the Company following a transition of his marketing responsibilities to Jay Topper. Mr. Topper, who joined FTD as Chief Information Officer in October 2016, has been promoted to the newly expanded role of Executive Vice President and Chief Digital Officer. FTD’s floral and gifting general managers will now report directly to the Chief Digital Officer.

“The Board of Directors is committed to enhancing stockholder value and has determined, after careful consideration, that it is prudent to conduct a thorough review of strategic alternatives,” said Robert Berglass, Chairman of FTD’s Board of Directors. “FTD remains a leader in the floral and gifting industry, with widely recognized consumer brands and a global fulfillment network that includes its member florists. While the review is ongoing, FTD will remain focused on the execution of its strategic initiatives, in conjunction with the new corporate restructuring and cost savings plan announced today, as the Company works to create value for stockholders.”

Mr. Berglass continued, “The Board of Directors believes that Scott is best positioned to lead the Company as we begin our strategic review process and work to execute on opportunities to achieve greater operational efficiencies. Scott is a strong executive with a deep understanding of our business and we have tremendous confidence that he and the Company’s experienced management team are well prepared to implement these initiatives.”

FTD’s Board of Directors has not set a definitive timetable for the process of reviewing and evaluating strategic alternatives. There can be no assurance that the strategic alternatives review will result in any particular strategic alternative or strategic transaction. The Company does not intend to disclose developments or provide updates on the progress or status of this process unless and until further disclosure is appropriate or required.

To read the whole release including numbers click here

For one investor view click here