FTD Companies, Inc. (NASDAQ:FTD) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim ReviewItem 4.02
Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
On February 20, 2018, the Audit Committee of the Board of Directors (the “Audit Committee”) of FTD Companies, Inc. (the “Company”) concluded, after considering the recommendation of the Company’s management and discussion with Deloitte & Touche LLP, our independent registered public accounting firm, that the Company’s previously issued interim unaudited condensed consolidated financial statements as of and for the three and nine months ended September 30, 2017, should no longer be relied upon. The Audit Committee reached this conclusion due to a material calculation error in the determination of the Company’s goodwill impairment. We will file an amendment to our Quarterly Report on Form 10-Q for the period ended September 30, 2017 to restate the previously issued interim unaudited condensed consolidated financial statements as soon as practicable. The primary impact of the restatement is to increase the goodwill impairments recorded by the Consumer and ProFlowers/Gourmet Foods reporting units by approximately $21.2 million and $1.8 million, respectively.
This restatement resulted in the identification of a material weakness in internal control over financial reporting which, along with our plan for remediation, will also be included in the aforementioned amended Quarterly Report on Form 10-Q/A in Part 1, Item 4—Controls and Procedures. We are committed to remediating this material weakness as promptly as possible. Implementation of our remediation plans has commenced and is being overseen by the Audit Committee.
About FTD Companies, Inc. (NASDAQ:FTD)
FTD Companies, Inc. (FTD) is a floral and gifting company. The Company operates through four segments: Consumer, Florist, International and Provide Commerce. Through its Consumer segment, FTD is a direct marketer of floral and gift products for consumers, primarily in the United States and Canada. Through its Florist segment, it is a provider of products and services to its floral network members, which include traditional retail florists and other non-florist retail locations. Its International segment consists of Interflora, which operates primarily in the United Kingdom and the Republic of Ireland. Through its Provide Commerce segment, FTD is a direct marketer of floral and gift products, including specialty foods, personalized gifts and other gifting products for consumers. Its portfolio of brands includes ProFlowers, ProPlants, Shari’s Berries, Personal Creations, RedEnvelope, Cherry Moon Farms, Flying Flowers, Flowers Direct, Sesame, Ink Cards, Postagram, and Gifts.com.
