DOWNERS GROVE, Ill. – Ftd.com Inc., an Internet and telephone marketer of flowers and specialty gifts, went public September 29, offering 4.5 million shares at $8 apiece. The company’s stock priced below its $10 to $12 filing range.
Underwritten by Bear, Stearns & Co. Inc., Thomas Weisel Partners, Volpe Brown Whelan & Co. and E*OFFERING, the initial public offering left 5.9 million shares of Class A common stock, and 40.9 million shares of Class B common stock, outstanding.
There were no selling shareholders. Venture backers included Florists’ Transworld Delivery Inc., Bain Capital Inc., Perry Acquisition Partners and Fleet Growth Resources Inc.
Ftd.com, through its Web site and its toll-free telephone number, 1-800-SEND-FTD, provides same-day delivery of floral orders to more than 97% of the United States population by utilizing a network of about 6,500 FTD florists nationwide.
The company plans to use between $25 million and $28 million of the expected $31.7 million generated from the sale of Class A common stock for advertising, promotion and other marketing activities. The company also plans to use about $3 million of the proceeds for capital expenditures including technology and physical infrastructure. The remainder of the proceeds will be used for general corporate purposes including working capital and for a possible investment or acquisition of complementary businesses, services or products.
Ftd.com has never been profitable, losing $3.9 million in 1998 and $5.4 million in 1999.
Richard Perry, managing partner and sole general partner at Perry Acquisition, has served as the company’s chairman of the board since May. Habib Gorgi, president at Fleet Private Equity, joined the company’s board of directors in May.
ftd.com – Selected Financial
(in thousands, except per share data)
Year Ended June 30
1997 1998 1999
Total revenue 26,255 30,663 49,618
Net loss -3,583 -3,895 -5,447
Net loss per share -0.13