FTD Companies, Inc. (NASDAQ:FTD) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 08, 2018 • 05:00 pm ET

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FTD Companies, Inc. (NASDAQ:FTD) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Thank you for standing by. This is the conference operator. Welcome to the FTD Companies First Quarter 2018 Earnings Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. (Operator Instructions)

I would now like to turn the conference over to Katie Turner. Please go ahead.

Executive
Katie Turner

Thank you. Good afternoon, and welcome to the FTD Companies first quarter fiscal year 2018 earnings conference call and webcast. With me today on the call are John Walden, President and Chief Executive Officer and Steve Barnhart, Executive Vice President and Chief Financial Officer. Before we begin, please remember that during the course of this call, management may make forward-looking statements within the meaning of the federal securities laws that address the company's expected future business, financial performance and financial condition. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in our forward-looking statements.

In addition to the company's reports filed with the Securities and Exchange Commission, please refer to the text in the company's press release issued today for a discussion of the risks and uncertainties associated with such forward-looking statements.

Also, please note, on today's call, management will refer to certain non-GAAP financial measures, including adjusted EBITDA, free cash flow and constant currency comparisons. The company believes these non-GAAP financial measures provide useful information for investors. Please refer to today's press release for definitions and calculations of these non-GAAP performance measures as well as a reconciliation of the non-GAAP performance measures to the company's GAAP financial results.

Now, I'd like to turn the call over to Steve Barnhart, Chief Financial Officer.

Executive
Steve Barnhart

Thanks, Katie. Good afternoon, everyone and thank you for joining us on today's call. I will discuss our first quarter financial results, full year 2018 outlook and provide an update on our financing activities. John will then provide a brief business review and after that, we will be available to take your questions.

For the first quarter of 2018, consolidated net revenues were $318.2 million an increase of 0.5% compared to $316.5 million for the first quarter last year. Foreign currency exchange rates had a $6.1 million favorable impact on consolidated net revenues during the first quarter of 2018.Net loss was $6.6 million compared to net income of $9 million for the first quarter of 2017.

Included in the net loss is a pretax non-cash impairment charge of $2.4 million related to other long-lived assets. Adjusted EBITDA was $4.9 million or 1.5% of consolidated revenues for the first quarter of 2018 compared to $31.1 million or 9.8% of consolidated revenues for the first quarter of 2017.

Before I review our quarterly operating segment performance in more detail, I would like to note that starting with Q1 2018 we have three reportable segments; US Consumer, Florist and International. Prior to January 1, 2018, we had four reportable segments.

As a result of the change in segment