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FTD Group, Inc. Reports Second Quarter of Fiscal Year 2006

DOWNERS GROVE, Ill.--(BUSINESS WIRE)--Jan. 25, 2006--FTD Group, Inc. (NYSE:FTD):

  • Revenue of $109.2 Million for the Second Quarter of Fiscal Year 2006


  • Net Income of $5.9 Million for the Second Quarter of Fiscal Year 2006


  • EBITDA of $17.4 Million for the Second Quarter of Fiscal Year 2006

FTD Group, Inc. (NYSE:FTD), a leading provider of floral services and products, today announced second quarter fiscal year 2006 financial results for the period ended December 31, 2005.

SECOND QUARTER FISCAL YEAR 2006 RESULTS

As previously announced on December 29, 2005, the Consumer Segment experienced a decrease of approximately 4% in total orders during the 2005 Christmas season (December 1, 2005 - December 25, 2005), compared to the same period of the prior fiscal year. As a result, second quarter fiscal year 2006 consolidated revenues grew approximately 1% to $109.2 million, compared to revenues of $108.3 million for the same period of fiscal year 2005.

Net income for the second quarter of fiscal year 2006 was $5.9 million, or $0.19 per diluted share, compared to net income for the second quarter of fiscal year 2005 of $0.8 million. Management believes it is helpful to investors to be presented with the Company's prior year second quarter net income and earnings per diluted share on a pro forma basis, based on the Company's new capital structure following the completion of its initial public offering in February 2005 (the "IPO") and the elimination of certain expenses in connection with the IPO which are not reflective of ongoing operations. Pro forma net income for the second quarter of fiscal year 2005 was $6.2 million, or $0.21 per diluted share, reflecting the elimination of $5.1 million of interest expense related to the Company's preferred shares subject to mandatory redemption, which were repurchased with a portion of the proceeds from the IPO, the elimination of $0.3 million, net of tax, of management fees related to the Management Services Agreement, which was terminated in connection with the IPO, and the issuance of 15.8 million shares of Common Stock issued in connection with the IPO.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the second quarter of fiscal year 2006 was $17.4 million compared to Adjusted EBITDA of $17.8 million for the same period of the prior fiscal year, representing a 2.3% decrease. Adjusted EBITDA for the second quarter of fiscal year 2005 excludes expenses related to the Management Services Agreement which was terminated in connection with the Company's IPO.

"As previously announced, the Consumer Business's order growth for the 2005 Christmas season was below expectations due to our decision not to pursue high cost order volume associated with online search. In anticipation of continued competitiveness in the online search environment and to better manage the Consumer Segment business going forward, we have made management changes within this segment including the replacement of our head of marketing. Further, our marketing will continue to evolve as we focus on a more broad based marketing strategy," said Michael J. Soenen, President and Chief Executive Officer of FTD. "While I anticipate that these changes will take some time to take effect, I believe that this is the right long-term course of action for the business and we have adjusted our financial targets accordingly."

Tables reconciling net income/(loss) to pro forma net income, EBITDA and Adjusted EBITDA, along with explanations and definitions of pro forma net income, EBITDA and Adjusted EBITDA, are included with the attached consolidated financial statements. Also included in the attached consolidated financial statements is a table reconciling weighted average shares outstanding to pro forma weighted average shares outstanding, which is used to calculate pro forma earnings per share. The Company believes pro forma net income, EBITDA, Adjusted EBITDA and pro forma earnings per share are useful and relevant because the expenses eliminated are not reflective of the Company's current capital structure or ongoing operations, and a comparison excluding these expenses provides supplemental information related to the Company's operations and results.

Consumer Segment

The Consumer Segment is comprised of FTD.COM, a leading Internet and telephone marketer of flowers and specialty gifts, which sells products directly to consumers primarily through the Internet via the www.FTD.COM Web site and through the 1-800-SEND-FTD toll-free telephone number. The Consumer Segment achieved revenues of $63.3 million in the second quarter of fiscal year 2006, compared to revenues of $62.1 million in the same period of fiscal year 2005, representing a 1.8% increase. Operating income for the Consumer Segment was $3.9 million for the second quarter of fiscal year 2006, reflecting 6.2% operating income margins, compared to $3.8 million for the second quarter of the prior fiscal year, reflecting 6.0% operating income margins. While October and November order volume growth was within management's expectations, Christmas order volume was affected by the decision to forgo high cost order volume that would have resulted from significant increases in certain online search engine costs.

Consumer orders during the second quarter of fiscal year 2006 totaled 1.1 million compared to 1.0 million orders in the same period of the prior fiscal year. Average order value decreased slightly to $59.33 in the second quarter of fiscal year 2006 from $60.31 in the same period of the prior fiscal year, in line with management expectations. The percentage of Internet orders continues to grow in this segment, increasing to 89.3% for the second quarter of fiscal year 2006 from 85.0% in the second quarter of fiscal year 2005. Specialty gift orders, which include all orders delivered via common carrier, comprised 37.0% of total orders for the second quarter of the current fiscal year compared to 30.4% of total orders for the same period of fiscal year 2005.

Florist Segment

The Florist Segment primarily markets floral products and services to FTD members and other retail locations offering floral products in the U.S. and Canada. The Florist Segment achieved revenues of $45.9 million in the second quarter of fiscal year 2006, compared to revenues of $46.1 million in the same period of the prior fiscal year. The decline in Florist Segment revenues was due to a decrease in directory services revenues as well as lower sales resulting from a reduction of unprofitable specialty wholesaling SKUs, as discussed in the first quarter earnings release. This decrease was partially offset by an increase in technology system sales and fresh flower sales to florists. Second quarter fiscal year 2006 operating income in the Florist Segment was $13.1 million, representing operating income margins of 28.6%, compared to $13.5 million, representing operating margins of 29.4%, for the same period of the prior fiscal year. Margins compressed largely as the result of an increase in sales of the Company's lower margin product lines as a percent of total revenues.

Additionally, on December 21, 2005, the Florist Segment sold substantially all of the assets and certain liabilities of Renaissance Greeting Cards, Inc. Soenen commented, "This business was not core to our business objectives and allows us to expand the greeting card options which we provide to our FTD members without additional capital investments, through an ongoing vendor relationship with the purchaser."

BALANCE SHEET AND OTHER HIGHLIGHTS

The Company's debt balance was $233.1 million as of December 31, 2005, down from $243.9 million as of September 30, 2005. Capital expenditures for the fiscal year to date period ended December 31, 2005 were $5.4 million and were primarily related to the new call center that the Company opened in October 2005, in addition to continued technology improvements.

TREASURY SHARE REPURCHASE PROGRAM TO CONTINUE

As previously disclosed, on October 25, 2005 the Board of Directors authorized a share repurchase program totaling $30 million, effective through September 30, 2007. These purchases may be made from time to time in both open market and private transactions, dependent upon market and other conditions. The Company intends to repurchase shares pursuant to a 10b5-1 plan, which would generally permit the Company to repurchase shares at times when it might otherwise be prevented from doing so under certain securities laws. The Company plans to continue to repurchase shares under this program and, through January 20, 2006, has repurchased 1.4 million shares for a total of $13.7 million.

"Our strong cash flow and low capital expenditures has enabled us to balance our commitment to pay down debt and repurchase shares. We plan to continue this course of action, which we believe will continue to provide enduring shareholder value," explained Soenen.

FISCAL YEAR 2006 OUTLOOK

"Looking ahead, we remain committed to disciplined operations as we continue to prioritize cost effective marketing and innovation across all of our businesses," stated Soenen.

For the full fiscal year 2006, the Company is anticipating revenues of approximately $450 million to $460 million, recognizing the uncertainty in the online search arena and reflecting the sale of Renaissance Greeting Cards, Inc. described above. The Company anticipates targeted net income of approximately $23 million, targeted diluted earnings per share at approximately $0.76 and targeted EBITDA at approximately $67.5 million, with annual EBITDA margins of approximately 15%. Targeted EBITDA includes the effect of approximately $0.6 million of non-cash stock compensation expense associated with the Company's adoption of Statement of Financial Accounting Standards No. 123(R), of which the Company incurred $0.3 million in the fiscal year to date period ended December 31, 2005. There were no comparable expenses in fiscal year 2005. Without the effect of this non-cash expense, forecasted EBITDA would be targeted at approximately $68 million. The above targets are only estimates, which may be exceeded or alternatively may not be achieved.

"We will have better visibility of our annual financial outlook following the upcoming Valentine's Day holiday and will provide an update of our results following the holiday," said Soenen.

CONFERENCE CALL

A conference call has been scheduled for January 25, 2006 at 10:00 a.m., ET, to review the results for the second quarter of fiscal year 2006. To listen to the call over the Internet, go to the investor relations portion of the Company's Web site, www.FTD.COM, at least 15 minutes early to register, download and install any necessary audio software. To listen to the call by telephone, dial (877) 381-6199 (mention conference ID #21281531). A replay of the call will be available through February 8, 2006 through www.FTD.COM or by dialing (800) 633-8284 (mention conference ID #21281531). The conference call contains time-sensitive information that is accurate only as of January 25, 2006, the date of the live broadcast. The call is the property of FTD Group, Inc. Any redistribution, retransmission or rebroadcast of the conference call in any form without the express written consent of FTD Group, Inc. is strictly prohibited.

ABOUT FTD GROUP, INC.

FTD Group, Inc. is a leading provider of floral-related products and services to consumers and retail floral locations in the U.S. floral retail market. The business is supported by the highly recognized FTD brand, which was established in 1910 and enjoys 96% brand recognition among the Company's principal target market of U.S. consumers between the ages of 25 and 64, as well as by the Mercury Man logo, which is displayed in approximately 50,000 floral shops, globally. The Company conducts its business through two operating segments. The Consumer Segment, primarily through the www.FTD.COM Web site and the 1-800-SEND-FTD toll-free telephone number, offers same-day delivery of floral orders to nearly 100% of the U.S. and Canadian populations. As a result of the same-day delivery capability and broad product selection, the Consumer Segment is one of the largest direct marketers of floral arrangements and specialty gifts in the U.S. The Florist Segment provides a comprehensive suite of products and services to enable the network of approximately 20,000 FTD members to send and deliver floral orders. This suite of products and services is designed to promote revenue growth and enhance the operating efficiencies of FTD members.

FORWARD-LOOKING STATEMENTS

This press release contains various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company's outlook, anticipated revenue growth and profitability; the anticipated benefits of investments in new products, programs and offerings; and opportunities and trends within both the Consumer and Florist Segments, including opportunities to expand these businesses and capitalize on growth opportunities or increase penetration of service offerings. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and its industry. Investors are cautioned that actual results could differ from those anticipated by the forward-looking statements as a result of: the Company's ability to acquire and retain FTD members and continued recognition by members of the value of the Company's products and services; the acceptance by members of new or modified service offerings recently introduced; the Company's ability to sell additional products and services to FTD members; the Company's ability to expand existing marketing partnerships and secure new marketing partners within the Consumer Segment; the success of the Company's marketing campaigns; the ability to retain customers and maintain average order value within the Consumer Segment; the existence of failures in the Mercury Network or the Company's Consumer Segment systems; competition from existing and potential new competitors; levels of discretionary consumer purchases of flowers and specialty gifts; the Company's ability to manage or reduce its level of expenses within both the Consumer and Florist Segments; actual growth rates for the markets in which the Company competes compared with forecasted growth rates; the Company's ability to increase capacity and introduce enhancements to its Web sites; and the Company's ability to integrate additional partners or acquisitions, if any are identified. These factors, along with other potential risks and uncertainties, are discussed in the Company's reports and other documents filed with the Securities and Exchange Commission. The Company expressly disclaims any obligation to update forward-looking statements.

Financial statements follow...

                            FTD GROUP, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)
               (In thousands, except per share amounts)


                             Three Months Ended     Six Months Ended
                                December 31,          December 31,
                           --------------------- ---------------------
                              2005       2004       2005       2004
                           ---------- ---------- ---------- ----------

Revenues:
  Florist segment            $45,903    $46,109    $90,213    $91,810
  Consumer segment            63,282     62,145    104,841     98,515
                           ---------- ---------- ---------- ----------
    Total revenues           109,185    108,254    195,054    190,325

Costs of goods sold and
 services provided:
  Florist segment             14,102     13,007     28,940     30,135
  Consumer segment            46,397     46,101     76,855     73,431
  Corporate                      623        582      1,185      1,194
                           ---------- ---------- ---------- ----------
    Total costs of goods
     sold and services
     provided                 61,122     59,690    106,980    104,760

Gross profit:
  Florist segment             31,801     33,102     61,273     61,675
  Consumer segment            16,885     16,044     27,986     25,084
  Corporate                     (623)      (582)    (1,185)    (1,194)
                           ---------- ---------- ---------- ----------
    Total gross profit        48,063     48,564     88,074     85,565

Advertising and selling:
  Florist segment             14,055     14,040     27,174     27,294
  Consumer segment             7,835      7,441     12,367     10,891
                           ---------- ---------- ---------- ----------
    Total advertising and
     selling                  21,890     21,481     39,541     38,185

General and administrative
 (includes management
 fees):
  Florist segment              1,937      2,543      4,221      5,117
  Consumer segment             4,248      4,127      7,476      7,484
  Corporate                    6,273      6,024     12,690     12,470
                           ---------- ---------- ---------- ----------
    Total general and
     administrative           12,458     12,694     24,387     25,071

Operating income (loss)
 before corporate
 allocations:
  Florist segment             15,809     16,519     29,878     29,264
  Consumer segment             4,802      4,476      8,143      6,709
  Corporate                   (6,896)    (6,606)   (13,875)   (13,664)
                           ---------- ---------- ---------- ----------
    Total operating income
     before corporate
     allocations              13,715     14,389     24,146     22,309
                           ---------- ---------- ---------- ----------

Corporate Allocations:
  Florist segment              2,683      2,984      5,496      6,009
  Consumer segment               867        717      1,602      1,494
  Corporate                   (3,550)    (3,701)    (7,098)    (7,503)
                           ---------- ---------- ---------- ----------
    Total corporate
     allocations                   -          -          -          -

Income (loss) from
 operations:
  Florist segment             13,126     13,535     24,382     23,255
  Consumer segment             3,935      3,759      6,541      5,215
  Corporate                   (3,346)    (2,905)    (6,777)    (6,161)
                           ---------- ---------- ---------- ----------
    Total income from
     operations               13,715     14,389     24,146     22,309
                           ---------- ---------- ---------- ----------

Other income and expenses:
  Interest income               (129)       (91)      (295)      (167)
  Interest expense             4,986      5,017      9,767     10,034
  Interest expense on
   shares subject to
   mandatory redemption            -      5,105          -     10,048
  Other income, net           (1,035)      (274)    (1,079)      (321)
                           ---------- ---------- ---------- ----------

    Total other expenses       3,822      9,757      8,393     19,594
                           ---------- ---------- ---------- ----------

    Income before income
     tax                       9,893      4,632     15,753      2,715

Income tax expense             3,992      3,876      6,425      5,106
                           ---------- ---------- ---------- ----------

    Net income (loss)         $5,901       $756     $9,328    $(2,391)
                           ========== ========== ========== ==========


Net income (loss) per
 common share - basic          $0.20      $0.06      $0.32     $(0.18)
                           ========== ========== ========== ==========
Net income (loss) per
 common share - diluted        $0.19      $0.06      $0.31     $(0.18)
                           ========== ========== ========== ==========

Weighted average common
 shares outstanding -
 basic                        29,404     13,609     29,429     13,473
                           ========== ========== ========== ==========
Weighted average common
 shares outstanding -
 diluted                      30,417     13,609     30,481     13,473
                           ========== ========== ========== ==========



                            FTD GROUP, INC.
                      CONSOLIDATED BALANCE SHEETS
                 (in thousands, except share amounts)

              ASSETS               December 31, 2005   June 30, 2005
              ------               ----------------- -----------------
                                      (unaudited)
Current assets:
  Cash and cash equivalents                 $14,488            $8,890
  Accounts receivable, less
   allowance for doubtful accounts
   of $3,586 at December 31, 2005
   and $2,521 at June 30, 2005               29,597            23,419
  Inventories, net                            5,099             6,495
  Deferred income taxes                       2,147             2,550
  Prepaid expenses and other
   current assets                             4,855             7,782
                                   ----------------- -----------------
    Total current assets                     56,186            49,136

Property and equipment:
  Land and improvements                       1,380             1,380
  Building and improvements                  14,845            14,291
  Computer equipment                          4,609             3,345
  Furniture and equipment                     3,260             2,814
                                   ----------------- -----------------
    Total                                    24,094            21,830
  Less accumulated depreciation               4,766             3,790
                                   ----------------- -----------------
    Property and equipment, net              19,328            18,040

Other assets:
  Deferred financing fees, net                7,751             8,527
  Computer software, net                     11,179            11,010
  Other noncurrent assets, net               11,863             8,985
  Other intangible assets, less
   accumulated amortization of
   $4,693 at December 31, 2005
   and $3,393 at June 30, 2005               16,080            17,380
  Trademark                                 121,577           121,577
  Goodwill                                  336,659           336,659
                                   ----------------- -----------------
    Total other assets                      505,109           504,138
                                   ----------------- -----------------
    Total assets                           $580,623          $571,314
                                   ================= =================

  LIABILITIES AND STOCKHOLDERS' EQUITY
  ------------------------------------

Current liabilities:
  Accounts payable                          $51,363           $41,498
  Customer deposits                           5,047             5,143
  Unearned income                             1,685             2,522
  Accrued interest                            5,011             4,993
  Accrued compensation                        2,580             4,128
  Other accrued liabilities                   5,791             5,058
  Current maturities of long-term
   debt                                         642             1,633
                                   ----------------- -----------------
    Total current liabilities                72,119            64,975

Senior secured credit facility               62,386            67,330
Senior subordinated notes                   170,117           170,117
Post-retirement benefits and
 accrued pension obligations                  2,693             2,856
Deferred income taxes                        60,748            60,289

Stockholders' equity:
  Common stock: $0.01 par value,
   75,000,000 shares authorized;
   29,482,182 and 29,451,791
   shares issued and outstanding
   as of December 31, 2005 and
   June 30, 2005, respectively                  295               295
  Additional paid-in capital                233,089           232,759
  Accumulated deficit                       (17,769)          (27,097)
  Accumulated other comprehensive
   loss                                         (80)             (210)
  Treasury stock, at cost, 274,388
   shares as of December 31, 2005            (2,975)                -
                                   ----------------- -----------------
    Total stockholders' equity              212,560           205,747
                                   ----------------- -----------------
    Total liabilities and
     stockholders' equity                  $580,623          $571,314
                                   ================= =================



                            FTD GROUP, INC.
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Unaudited)
                            (In thousands)


                                          Six Months Ended
                                             December 31,
                                   -----------------------------------

                                         2005              2004
                                   ----------------- -----------------


Cash flows from operating
 activities:
  Net income (loss)                          $9,328           $(2,391)
  Adjustments to reconcile net
   income (loss) to net cash
   provided by operating activities:
    Depreciation                              2,134             2,903
    Amortization                              2,982             2,712
    Interest expense on
     mandatorily redeemable shares                -            10,048
    Gain from sale of business                 (991)                -
    Stock-based compensation                    304                 -
    Amortization and write off of
     deferred financing costs                   776               669
    Provision for doubtful
     accounts                                 1,769             1,971
    Provision for obsolete
     inventory                                1,197               171
    Deferred income taxes                       862                 -
    Increase (decrease) in cash
     due to changes in operating
     assets and liabilities:
      Accounts receivable                   (10,930)           (6,574)
      Inventories                            (2,173)           (2,123)
      Prepaid expenses and other              2,518             3,082
      Other noncurrent assets                   179              (257)
      Accounts payable                       10,315            10,890
      Other accrued liabilities,
       unearned income, customer
       deposits and other                    (2,014)              339
                                   ----------------- -----------------

                Net cash provided
                 by operating
                 activities                  16,256            21,440
                                   ----------------- -----------------

Cash flows from investing
 activities:
  Capital expenditures                       (5,425)           (1,906)
  Proceeds from sale of business              3,500                 -
  Acquisition                                     -            (3,129)
                                   ----------------- -----------------

                Net cash used in
                 investing
                 activities                  (1,925)           (5,035)
                                   ----------------- -----------------

Cash flows from financing
 activities:
  Repayments of long-term debt               (5,936)             (425)
  Purchase of company stock net of
   reissue                                   (3,214)                -
  Proceeds from exercise of stock
   options                                       91                 -
  Tax effect of stock option
   benefit                                      196                 -
  Capital contribution                            -               827
                                   ----------------- -----------------

                Net cash provided
                 by (used in)
                 financing
                 activities                  (8,863)              402
                                   ----------------- -----------------

  Effect of foreign exchange rate
   changes on cash                              130               184
                                   ----------------- -----------------

Net increase in cash and cash
 equivalents                                  5,598            16,991

Cash and cash equivalents at
 beginning of period                          8,890             2,491
                                   ----------------- -----------------

Cash and cash equivalents at end
 of period                                  $14,488           $19,482
                                   ================= =================



                            FTD GROUP, INC.
                          SEGMENT INFORMATION
                              (Unaudited)
                            (In thousands)


                                        Three Months Ended
                                         December 31, 2005
                             -----------------------------------------
                             Gross Segment  Eliminations Consolidated
                             ------------- ------------- -------------

Revenues:
Florist segment                   $45,989          $(86)      $45,903
Consumer segment                   68,003        (4,721)       63,282
                             ------------- ------------- -------------
       Total                      113,992        (4,807)      109,185
                             ------------- ------------- -------------

Costs of Goods Sold
 and Services Provided:
Florist segment                    14,953          (851)       14,102
Consumer segment                   47,040          (643)       46,397
Corporate                             623             -           623
                             ------------- ------------- -------------
       Total                       62,616        (1,494)       61,122
                             ------------- ------------- -------------

Gross Profit:
Florist segment                    31,036           765        31,801
Consumer segment                   20,963        (4,078)       16,885
Corporate                            (623)            -          (623)
                             ------------- ------------- -------------
       Total                       51,376        (3,313)       48,063
                             ------------- ------------- -------------


Advertising and Selling:
Florist segment                    17,368        (3,313)       14,055
Consumer segment                    7,835             -         7,835
                             ------------- ------------- -------------
  Total                            25,203        (3,313)       21,890
                             ------------- ------------- -------------

General and Administrative
 (includes Management Fees):
Florist segment                     1,937             -         1,937
Consumer segment                    4,871          (623)        4,248
Corporate                           5,650           623         6,273
                             ------------- ------------- -------------
       Total                       12,458             -        12,458
                             ------------- ------------- -------------

Operating Income (Loss)
 before Corporate
 Allocations:
Florist segment                    11,731         4,078        15,809
Consumer segment                    8,257        (3,455)        4,802
Corporate                          (6,273)         (623)       (6,896)
                             ------------- ------------- -------------
       Total                       13,715             -        13,715
                             ------------- ------------- -------------

Corporate Allocations:
Florist segment                     2,683             -         2,683
Consumer segment                      867             -           867
Corporate                          (3,550)            -        (3,550)
                             ------------- ------------- -------------
       Total                            -             -             -
                             ------------- ------------- -------------

Operating Income (Loss):
Florist segment                     9,048         4,078        13,126
Consumer segment                    7,390        (3,455)        3,935
Corporate                          (2,723)         (623)       (3,346)
                             ------------- ------------- -------------
       Total                      $13,715            $-       $13,715
                             ============= ============= =============

Depreciation and
 Amortization:
Florist segment                       862            $-          $862
Consumer segment                      840             -           840
Corporate                             965             -           965
                             ------------- ------------- -------------
       Total                       $2,667            $-        $2,667
                             ============= ============= =============


                                        Three Months Ended
                                         December 31, 2004
                             -----------------------------------------
                             Gross Segment  Eliminations Consolidated
                             ------------- ------------- -------------

Revenues:
Florist segment                   $46,157          $(48)      $46,109
Consumer segment                   67,097        (4,952)       62,145
                             ------------- ------------- -------------
       Total                      113,254        (5,000)      108,254
                             ------------- ------------- -------------

Costs of Goods Sold
 and Services Provided:
Florist segment                    13,811          (804)       13,007
Consumer segment                   46,736          (635)       46,101
Corporate                             582             -           582
                             ------------- ------------- -------------
       Total                       61,129        (1,439)       59,690
                             ------------- ------------- -------------

Gross Profit:
Florist segment                    32,346           756        33,102
Consumer segment                   20,361        (4,317)       16,044
Corporate                            (582)            -          (582)
                             ------------- ------------- -------------
       Total                       52,125        (3,561)       48,564
                             ------------- ------------- -------------


Advertising and Selling:
Florist segment                    17,600        (3,560)       14,040
Consumer segment                    7,441             -         7,441
                             ------------- ------------- -------------
  Total                            25,041        (3,560)       21,481
                             ------------- ------------- -------------

General and Administrative
 (includes Management Fees):
Florist segment                     2,543             -         2,543
Consumer segment                    4,742          (615)        4,127
Corporate                           5,410           614         6,024
                             ------------- ------------- -------------
       Total                       12,695            (1)       12,694
                             ------------- ------------- -------------

Operating Income (Loss)
 before Corporate
 Allocations:
Florist segment                    12,203         4,316        16,519
Consumer segment                    8,178        (3,702)        4,476
Corporate                          (5,992)         (614)       (6,606)
                             ------------- ------------- -------------
       Total                       14,389             -        14,389
                             ------------- ------------- -------------

Corporate Allocations:
Florist segment                     2,984             -         2,984
Consumer segment                      717             -           717
Corporate                          (3,701)            -        (3,701)
                             ------------- ------------- -------------
       Total                            -             -             -
                             ------------- ------------- -------------

Operating Income (Loss):
Florist segment                     9,219         4,316        13,535
Consumer segment                    7,461        (3,702)        3,759
Corporate                          (2,291)         (614)       (2,905)
                             ------------- ------------- -------------
       Total                      $14,389            $-       $14,389
                             ============= ============= =============

Depreciation and
 Amortization:
Florist segment                    $1,102            $-        $1,102
Consumer segment                      598             -           598
Corporate                             960             -           960
                             ------------- ------------- -------------
       Total                       $2,660            $-        $2,660
                             ============= ============= =============



                            FTD GROUP, INC.
                          SEGMENT INFORMATION
                              (Unaudited)
                            (In thousands)


                                         Six Months Ended
                                         December 31, 2005
                             -----------------------------------------
                             Gross Segment  Eliminations Consolidated
                             ------------- ------------- -------------

Revenues:
Florist segment                   $90,344         $(131)      $90,213
Consumer segment                  112,953        (8,112)      104,841
                             ------------- ------------- -------------
       Total                      203,297        (8,243)      195,054
                             ------------- ------------- -------------

Costs of Goods Sold and
Services Provided:
Florist segment                    30,636        (1,696)       28,940
Consumer segment                   77,917        (1,062)       76,855
Corporate                           1,185             -         1,185
                             ------------- ------------- -------------
       Total                      109,738        (2,758)      106,980
                             ------------- ------------- -------------

Gross Profit:
Florist segment                    59,708         1,565        61,273
Consumer segment                   35,036        (7,050)       27,986
Corporate                          (1,185)            -        (1,185)
                             ------------- ------------- -------------
       Total                       93,559        (5,485)       88,074
                             ------------- ------------- -------------


Advertising and Selling:
Florist segment                    32,659        (5,485)       27,174
Consumer segment                   12,367             -        12,367
                             ------------- ------------- -------------
  Total                            45,026        (5,485)       39,541
                             ------------- ------------- -------------

General and Administrative
 (includes Management Fees):
Florist segment                     4,221             -         4,221
Consumer segment                    8,526        (1,050)        7,476
Corporate                          11,640         1,050        12,690
                             ------------- ------------- -------------
       Total                       24,387             -        24,387
                             ------------- ------------- -------------

Operating Income (Loss)
 before Corporate Allocations:
Florist segment                    22,828         7,050        29,878
Consumer segment                   14,143        (6,000)        8,143
Corporate                         (12,825)       (1,050)      (13,875)
                             ------------- ------------- -------------
       Total                       24,146             -        24,146
                             ------------- ------------- -------------

Corporate Allocations:
Florist segment                     5,496             -         5,496
Consumer segment                    1,602             -         1,602
Corporate                          (7,098)            -        (7,098)
                             ------------- ------------- -------------
       Total                            -             -             -
                             ------------- ------------- -------------

Operating Income (Loss):
Florist segment                    17,332         7,050        24,382
Consumer segment                   12,541        (6,000)        6,541
Corporate                          (5,727)       (1,050)       (6,777)
                             ------------- ------------- -------------
       Total                      $24,146            $-       $24,146
                             ============= ============= =============

Depreciation and
 Amortization:
Florist segment                    $1,730            $-        $1,730
Consumer segment                    1,457             -         1,457
Corporate                           1,929             -         1,929
                             ------------- ------------- -------------
       Total                       $5,116            $-        $5,116
                             ============= ============= =============


                                         Six Months Ended
                                         December 31, 2004
                             -----------------------------------------
                             Gross Segment  Eliminations Consolidated
                             ------------- ------------- -------------

Revenues:
Florist segment                   $91,870          $(60)      $91,810
Consumer segment                  106,817        (8,302)       98,515
                             ------------- ------------- -------------
       Total                      198,687        (8,362)      190,325
                             ------------- ------------- -------------

Costs of Goods Sold and
 Services Provided:
Florist segment                    31,653        (1,518)       30,135
Consumer segment                   74,457        (1,026)       73,431
Corporate                           1,194             -         1,194
                             ------------- ------------- -------------
       Total                      107,304        (2,544)      104,760
                             ------------- ------------- -------------

Gross Profit:
Florist segment                    60,217         1,458        61,675
Consumer segment                   32,360        (7,276)       25,084
Corporate                          (1,194)            -        (1,194)
                             ------------- ------------- -------------
       Total                       91,383        (5,818)       85,565
                             ------------- ------------- -------------


Advertising and Selling:
Florist segment                    33,110        (5,816)       27,294
Consumer segment                   10,891             -        10,891
                             ------------- ------------- -------------
  Total                            44,001        (5,816)       38,185
                             ------------- ------------- -------------

General and Administrative
 (includes Management Fees):
Florist segment                     5,117             -         5,117
Consumer segment                    8,468          (984)        7,484
Corporate                          11,488           982        12,470
                             ------------- ------------- -------------
       Total                       25,073            (2)       25,071
                             ------------- ------------- -------------

Operating Income (Loss)
 before Corporate Allocations:
Florist segment                    21,990         7,274        29,264
Consumer segment                   13,001        (6,292)        6,709
Corporate                         (12,682)         (982)      (13,664)
                             ------------- ------------- -------------
       Total                       22,309             -        22,309
                             ------------- ------------- -------------

Corporate Allocations:
Florist segment                     6,009             -         6,009
Consumer segment                    1,494             -         1,494
Corporate                          (7,503)            -        (7,503)
                             ------------- ------------- -------------
       Total                            -             -             -
                             ------------- ------------- -------------

Operating Income (Loss):
Florist segment                    15,981         7,274        23,255
Consumer segment                   11,507        (6,292)        5,215
Corporate                          (5,179)         (982)       (6,161)
                             ------------- ------------- -------------
       Total                      $22,309            $-       $22,309
                             ============= ============= =============

Depreciation and
 Amortization:
Florist segment                    $2,435            $-        $2,435
Consumer segment                    1,249             -         1,249
Corporate                           1,931             -         1,931
                             ------------- ------------- -------------
       Total                       $5,615            $-        $5,615
                             ============= ============= =============



                            FTD GROUP, INC.
                      NON-GAAP FINANCIAL MEASURES
         PRO FORMA NET INCOME AND PROFORMA EARNINGS PER SHARE
                              (Unaudited)
                 (In thousands, except per share data)


Reconciliation of certain financial measures reported in accordance
with Generally Accepted Accounting Principles ("GAAP") to those
presented on the basis of methodologies other than in accordance with
GAAP ("non-GAAP").

In addition to the GAAP financial measures set forth in this press
release, the Company has included certain non-GAAP financial measures
within the meaning of Regulation G as a result of significant changes
in the Company's capital structure resulting from the Company's
initial public offering in February 2005 (the "IPO"). The Company has
included "pro forma EPS," calculated based on "pro forma net income,"
and "pro forma weighted average shares outstanding," which are all
non-GAAP financial measures. The Company's management believes that
these measurements are important to investors and other interested
persons and that such persons benefit from having a consistent basis
for comparison between quarters and for comparison with other
companies in the industry.

While management believes that pro forma net income and pro forma EPS
will be helpful to investors in understanding and evaluating the
Company's performance in the periods immediately following the IPO,
management does not expect to continue to provide pro forma net income
and pro forma EPS once the effects of the significant changes to the
Company's capital structure are able to be fully reflected in the
Company's financial statements.

The Company is providing pro forma net income, pro forma EPS and pro
forma weighted average shares outstanding for the three- and six-month
periods ended December 31, 2004, assuming that the following
transactions had occurred on June 30, 2004:

(i) the issuance of 15,842,893 shares in connection with the IPO;
(ii) the repurchase of the 14% Senior Redeemable Exchangeable
    Cumulative Preferred Stock and the 12% Junior Redeemable
    Exchangeable Cumulative Preferred Stock; and
(iii) the termination of the Management Services Agreement.



                                            Three Months   Six Months
                                                Ended        Ended
                                            December 31,  December 31,
                                                2004         2004
                                            ------------- ------------

Net income (loss), as reported (GAAP basis)         $756      $(2,391)
Plus: management fees, net of 40% tax effect         300          628
Plus: interest expense on shares subject to
 mandatory redemption                              5,105       10,048
                                            ------------- ------------

Pro forma net income                              $6,161       $8,285
                                            ============= ============

Pro forma EPS:
--------------
Basic                                              $0.21        $0.28
                                            ============= ============
Diluted                                            $0.21        $0.28
                                            ============= ============


Basic:
------
Weighted average shares outstanding, as
 reported (GAAP basis)                            13,609       13,473
Add: weighted average effect as if IPO
 occurred on 6/30/04                              15,843       15,843
                                            ------------- ------------
Pro forma weighted average shares
 outstanding                                      29,452       29,316
                                            ============= ============


Diluted:
--------
Weighted average shares outstanding, as
 reported (GAAP basis)                            13,609       13,473
Add: weighted average effect as if IPO
 occurred on 6/30/04                              15,843       15,843
                                            ------------- ------------
Pro forma weighted average shares
 outstanding                                      29,452       29,316
                                            ============= ============



                            FTD GROUP, INC.
                      NON-GAAP FINANCIAL MEASURES
                      EBITDA AND ADJUSTED EBITDA
                              (Unaudited)
                            (In thousands)

Reconciliation of certain financial measures reported in accordance
with Generally Accepted Accounting Principles ("GAAP") to those
presented on the basis of methodologies other than in accordance with
GAAP ("non-GAAP").

The Company defines EBITDA as net income (loss) before net interest
expense, income tax expense, depreciation and amortization. The
Company defines Adjusted EBITDA as EBITDA plus (i) expenses that are
not considered reflective of the Company's ongoing operations and (ii)
management fees, because these fees were excluded in measuring the
Company's performance under the executive compensation plan, the
senior credit agreement and the indenture governing the 7.75% Senior
Subordinated Notes (the "Notes"). EBITDA and Adjusted EBITDA are
calculated as follows for the periods presented:



                            Three Months Ended     Six Months Ended
                               December 31,           December 31,
                           --------------------- ---------------------
                              2005       2004       2005       2004
                           ---------- ---------- ---------- ----------


Net income (loss), as
 reported (GAAP basis)        $5,901       $756     $9,328    $(2,391)
plus: Interest expense,
 net                           4,857      4,926      9,472      9,867
plus: Interest expense on
 shares subject to
 mandatory redemption              -      5,105          -     10,048
plus: Depreciation and
 amortization                  2,667      2,660      5,116      5,615
plus: Income tax expense       3,992      3,876      6,425      5,106
                           ---------- ---------- ---------- ----------
EBITDA                        17,417     17,323     30,341     28,245
plus: Management fees (1)          -        500          -      1,047
                           ---------- ---------- ---------- ----------
Adjusted EBITDA (2)          $17,417    $17,823    $30,341    $29,292
                           ========== ========== ========== ==========


(1) The Management Services Agreement was terminated in connection
    with the Company's initial public offering in February 2005.

(2) The Company uses EBITDA and Adjusted EBITDA as supplemental
    measures of performance. The Company presents Adjusted EBITDA
    because it considers it an important supplemental measure of
    performance, as it is used as a performance measure under the
    senior credit facility entered into in connection with the 2004
    Going Private Transaction, the indenture governing the Notes and
    the Company's executive compensation plan. The adjustment made in
    the calculation of Adjusted EBITDA, as described above, is an
    adjustment that would be made in calculating the Company's
    performance for purposes of coverage ratios under the senior
    credit facility and the indenture governing the Notes, and the
    Company's executive compensation plan bases incentive compensation
    payments in significant part on the Company's performance measured
    using Adjusted EBITDA as presented above. Measures similar to
    EBITDA and Adjusted EBITDA are also widely used by the Company and
    by others in the Company's industry to evaluate and price
    potential acquisition candidates.
    The Company believes EBITDA and Adjusted EBITDA facilitate
    operating performance comparisons from period to period and
    company to company by backing out potential differences caused by
    variations in capital structure (affecting relative interest
    expense), tax positions (such as the impact on periods or
    companies of changes in effective tax rates or net operating
    losses) and the age and book depreciation of facilities and
    equipment (affecting relative depreciation expense). The Company
    also presents EBITDA and Adjusted EBITDA because it believes they
    are frequently used by investors and other interested parties in
    the evaluation of high yield issuers, many of which present EBITDA
    and/or Adjusted EBITDA when reporting their results.

    EBITDA and Adjusted EBITDA have limitations as analytical tools,
    and should not be considered in isolation, or as a substitute for
    analysis of the Company's results as reported under GAAP. Some of
    the limitations of EBITDA and Adjusted EBITDA are that they do not
    reflect the Company's cash expenditures for capital expenditures,
    they do not reflect the significant interest expense or the cash
    requirements necessary to service interest or principal payments
    on the Company's debt, they do not reflect changes in, or cash
    requirements for, the Company's working capital requirements, they
    do not reflect the impact of management fees paid, and other
    companies in the Company's industry may calculate these measures
    differently than presented above. The Company compensates for
    these limitations by relying primarily on GAAP results and using
    EBITDA and Adjusted EBITDA only supplementally.



                            FTD GROUP, INC.
                      NON-GAAP FINANCIAL MEASURES
                                EBITDA
                              (Unaudited)
                            (In thousands)


Reconciliation of certain financial measures reported in accordance
with Generally Accepted Accounting Principles ("GAAP") to those
presented on the basis of methodologies other than in accordance with
GAAP ("non-GAAP").

The Company defines EBITDA as net income (loss) before net interest
expense, income tax expense, depreciation and amortization. EBITDA is
calculated as follows for the period presented:


                                                      Year Ending
                                                      June 30, 2006
                                                  (Forecasted Targets)
                                                  --------------------
                                                     (in thousands)

Revenues                                          $450,000 - $460,000

Net income (GAAP basis)                                       $23,000
plus: Interest expense, net                                    18,500
plus: Depreciation and amortization                            10,750
plus: Income tax expense                                       15,250
                                                  --------------------
EBITDA (1)                                                    $67,500
                                                  ====================


(1) The Company uses EBITDA as a supplemental measure of performance.
    The Company presents EBITDA because it considers it an important
    supplemental measure of performance, as it is materially the same
    performance measure that is used as a performance measure under
    the senior credit facility entered into in connection with the
    2004 Going Private Transaction, the indenture governing the Notes
    and the Company's executive compensation plan. The senior credit
    facility, the indenture governing the Notes and the executive
    compensation plan also allow for the adjustment to EBITDA of
    non-cash stock compensation expenses related to the adoption of
    Statement of Financial Accounting Standards No. 123(R). Measures
    similar to EBITDA are also widely used by the Company and by
    others in the Company's industry to evaluate and price potential
    acquisition candidates. The Company believes EBITDA facilitates
    operating performance comparisons from period to period and
    company to company by backing out potential differences caused by
    variations in capital structure (affecting relative interest
    expense), tax positions (such as the impact on periods or
    companies of changes in effective tax rates or net operating
    losses) and the age and book depreciation of facilities and
    equipment (affecting relative depreciation expense). The Company
    also presents EBITDA because it believes it is frequently used by
    investors and other interested parties in the evaluation of high
    yield issuers, many of which present EBITDA when reporting their
    results. EBITDA has limitations as an analytical tool, and should
    not be considered in isolation, or as a substitute for analysis of
    the Company's results as reported under GAAP. Some of the
    limitations of EBITDA is that it does not reflect the Company's
    cash expenditures for capital expenditures, it does not reflect
    the significant interest expense or the cash requirements
    necessary to service interest or principal payments on the
    Company's debt, it does not reflect changes in, or cash
    requirements for, the Company's working capital requirements, and
    other companies in the Company's industry may calculate these
    measures differently than presented above. The Company compensates
    for these limitations by relying primarily on GAAP results and
    using EBITDA only supplementally.

CONTACT: FTD Group, Inc.
Jandy Tomy, 630-724-6984
jtomy@ftdi.com

SOURCE: FTD Group, Inc.

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