FTD spinoff from United Online complete

FTD spinoff from United Online complete; 3Q profit falls on spinoff-related costs

Associated Press

NEWS: FTD, whose separation from United Online was completed on Friday, reported its third-quarter net income dropped sharply mostly due to costs related to the spinoff.

DETAILS: United Online Inc. bought FTD Cos. in 2008, but the flower and gift company has struggled since then as consumers pulled back on discretionary purchases. All FTD common stock held by United Online was distributed to United Online stockholders. Each stockholder received one share of FTD for every five shares of United Online held on Oct. 10.

NUMBERS: For the period ended Sept. 30, FTD earned $180,000. That compares with $1.5 million in the prior-year period.

The latest quarter included $3.3 million in costs tied to its spinoff.

Excluding these costs and a $1.4 million loss on debt extinguishment, net income was $4.5 million.

Revenue rose 2 percent to $118.5 million from $116.4 million. Order values climbed 2 percent on average, excluding the unfavorable impact of foreign currency exchange rates. Consumer order volume edged up 1 percent.

FUTURE: FTD anticipates 2013 revenue between $625 million and $631 million.

STOCK: Shares of the company will begin trading on the Nasdaq under the symbol "FTD" on Friday.

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