1-800-FLOWERS explores financing options as adjusted earnings weaken

1-800-FLOWERS ($FLWS) reported annual revenue of approximately $1.50 billion, down 10.8%, while adjusted EBITDA fell to $2.9 million from $29.2 million. The reported net loss narrowed to $134.8 million from roughly $200 million, but lower impairment charges explain much of that comparison. Its adjusted net loss actually widened to $77.5 million from $52.5 million.

The company amended its credit agreement to extend covenant relief and is evaluating financing and strategic alternatives, including potential debt, equity and asset-sale transactions. Guggenheim is advising on those options. These discussions do not mean that new financing has already been secured. The combination of falling sales, weaker adjusted earnings and changes to lender terms makes liquidity and the execution of any restructuring measures central features of the update.

Sources:

• 1-800-FLOWERS — annual results, Business Wire