1-800-Flowers.Com Inc at Oppenheimer Consumer Growth and E-Commerce Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Charles Moreau - Oppenheimer & Co. - Analyst : Thank you so much for that, Joe. (Conference Instructions) While we wait for that, Joe, just -- so on the guidance that you guys give out, do you typically -- is that more of a -- is that an organic forecast in general? Or do you guys ever incorporate some acquisition growth for that? Joe Pititto - 1-800-FLOWERS.COM - SVP of IR Well, we do. As I said, we closed on the Personalization Mall, that is the most recent acquisition we did. So we closed on that on August 3 last year, August 3, 2020. So each quarter, we have broken out what was organic growth and how much PMall added to it. And we had to file before -- when we closed on the deal because they were a meaningful size. We filed, so a year before we bought them, they did $170 million in revenue and $25 million in EBITDA. And we have since -- significantly, they were growing at high single digits. We have since increased their growth rate pretty significantly and increased their contribution margin pretty significantly. But each quarter, we have broken that out. Obviously, we anniversary that in our first quarter of this year, so the guidance double-digit growth that we have given for fiscal 2022 is organic growth. And we will continue to look for acquisitions to add to that, but otherwise, we are seeing strong double-digit organic growth this year. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Charles Moreau - Oppenheimer & Co. - Analyst : Thank you, Joe. And then kind of further on that, a couple questions came in, more of just on your appetite for acquisitions, the type of things that you might be looking at concept wise that might fill a gap and to what you guys are looking to accomplish. So any thoughts on (technical difficulty) of what could be a target for you guys. Joe Pititto - 1-800-FLOWERS.COM - SVP of IR Well, it's kind of more the same. You will see us -- I think the last two acquisitions just formed -- they formed nice bookends around 2020 and fiscal 2021. Shari's Berries was a small acquisition; it was a bolt-on. Again, we have just (inaudible) buy any assets and just put it on our platform. So small, something we could do pretty quickly. Personalization Mall was a bigger deal, something we actually tried to acquire in 2016 and we were outbid by Bed Bath & Beyond. We then subsequently, over the next four years, looked at a lot of different things in the personalization space because we wanted to get into that space. We weren't able to, fortunately, to close any of those. So we were able -- when Bed Bath & Beyond ran into their troubles, we were able to get that asset finally. And Chris McCann, our CEO, has mentioned since that acquisition, we think of it as a sort of land-and-expand opportunity. We think that because we have that platform now, hopefully, we will be able to roll up some of the other players in the personalization space. So we will continue to look there because we have capacity and we have advanced technology there that we can apply. We will continue to look in the food space. And the food space is a $20 billion industry. Gourmet food gifting in the United States is roughly $20 billion and growing. And it's made up of an awful lot of small, medium-size, some large, like Godiva, companies, but they are mostly standalone brands that quite frankly would do better on our platform. And so we will continue to look to add businesses in the gourmet food space. We will continue to look at expanding our marketplace activities. So we do a little bit of that now under the 1-800-FLOWERS banner in our gifts and collectibles section where we literally have a small marketplace, and we will look at more marketplace opportunities as we go forward and look at other acquisitions.

Question: Charles Moreau - Oppenheimer & Co. - Analyst : And then as far as just the deal landscape goes, is it -- do you feel as though seller expectations are elevated? Do you feel like you lose a lot of deals because of other competitors or other different entities coming in? Any thoughts on just kind of the pricing environment. Joe Pititto - 1-800-FLOWERS.COM - SVP of IR It's kind of funny in this day, deals have gotten inflated. I could've said that 10 years ago. I could've said it three years ago. The expectations are always very high. And now we do have some smaller companies coming out of the COVID -- that were benefited by the COVID pandemic and they want to sell off that elevated level. Like we have had to prove, is that a sustainable growth rate for them or is this just a pop for them. So we have to figure out whether or not on our platform, they become accretive because we can accelerate their growth rates, there are some growth synergies, there are some core synergies, things like that. So, yes, it is a tough market. You've got this backdrop here. You've got -- [although] they usually look at things much bigger than what we look at. But you've got just so much money sloshing around in the private equity market that it does make it tough. And we are pretty disciplined. If you look at things that we buy, we are very disciplined about that and we are not going to make a purchase just to make a purchase. But we do believe that there is a healthy pipeline. We are always looking at companies, looking at companies now. And hopefully, we can get something across the finish line sooner rather than later.

Question: Charles Moreau - Oppenheimer & Co. - Analyst : Thank you again. DISCLAIMER Refinitiv reserves the right to make changes to documents, content, or other information on this web site without obligation to notify any person of such changes. In the conference calls upon which Event Transcripts are based, companies may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks, which are more specifically identified in the companies' most recent SEC filings. Although the companies may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realized. THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS. IN NO WAY DOES REFINITIV OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.