Florists' Transworld Delivery

FTD Companies, Inc.

File:Logo1910.png
Type	Public
Traded as	NASDAQ: FTD
Industry	Floral industry
Founded	1910
Headquarters	Downers Grove, Illinois, United States
Key people	Robert Apatoff, President and CEO
Revenue	$613 million (2007)
Operating income	$78 million (2007)
Net income	$32 million (2007)
Total assets	$749 million
Total equity	$262 million
Owner	Former retailers' cooperative
Number of employees	984 (2007)
Subsidiaries	http://www.ftd.com http://www.interflora.co.uk http://www.flyingflowers.co.uk http://www.flowersdirect.co.uk http://www.drakealgar.com
Website	www.ftdcompanies.com

FTD Companies, Inc. (FTD), also trading as Florists' Transworld Delivery is a floral wire service, retailer and wholesaler based in Downers Grove, Illinois, in the United States. FTD was founded as Florists' Telegraph Delivery in 1910, to help customers send flowers remotely on the same day by using florists in the FTD network who are near the intended recipient. It was based in Detroit, Michigan and then moved to Southfield, Michigan prior to its move to Downers Grove. It originated as a retailers' cooperative and began a process of demutualization in 1994. It operates two main businesses: The Consumer Business sells flowers and gift items through its websites and The Floral Business sells computer services, software and even fresh cut flowers to FTD and Interflora affiliated florists.

Retail Florist Association (formerly Extra Touch Florist Association and FTD Association) is a trade association that originated as the member education, advocacy and quality assurance arm of FTD, breaking formal ties with FTD in 2001.

FTD processes orders through the Mercury Network, its international telecommunications service.

History

On August 18, 1910, fifteen American florists led by John Valentine, a Denver lawyer and floral company owner agreed to serve each other's out-of-town customers by exchanging orders via telegraph. This group was called Florists' Telegraph Delivery. In 1914, the company adopted Mercury Man as its logo, to emphasize the speed of delivery. In 1965, it began offering international order, and took the name of Florists' Transworld Delivery.

Demutualization of co-operatives

Demutualization of a co-operative is sometimes known as privatization, and involves the consumer members surrendering their "one member one vote" democratic control of the business, in exchange for a windfall of cash, or shares of a joint stock company. The stock company acquires control of the business, and ownership of its assets.

Going public

In 1994, FTD began a process of demutualization. On December 19, 1994, a precursor to the FTD Corporation, a private, for-profit company Perry Capital, acquired FTD, which then divided FTD into two organizations: FTD Incorporated, a for profit corporation, and FTD Association, a non-profit trade association.

FTD Incorporated retained FTD's businesses, including the Mercury Network and the clearinghouse, and controlled FTD Association's rules, regulations, and bylaws. The FTD Association retained member education, advocacy and quality assurance.

In 2000, FTD Incorporated held an initial public offering of FTD.com on the NASDAQ. FTD Group was listed on the NYSE in 2005. The company is based in Downers Grove, Illinois.

In 2001, the FTD Association separated from FTD Incorporated, terminated all contracts, and, in exchange for $14 million, renamed itself Extra Touch Floral Association, and later, Retail Florist Association. It is based in Livonia, Michigan.

In 2008, United Online (NASDAQ: UNTD) announced a merger agreement with FTD Group, valued at $800 million. The acquisition was completed and shares of FTD ceased to trade on the NYSE August 26, 2008.

In 2013, FTD is spun off from United Online resulting in FTD Companies, Inc.[1] becoming an independent, publicly traded company listed on NASDAQ.

Acquisitions

In 1994, FTD was acquired by Perry Capital Corporation from the florists and converted into a for-profit corporation

On July 31, 2006, FTD, Inc. announced its acquisition of Interflora Holdings, a UK-based sister co-operative that offered the FTD network in Britain and Ireland under the Interflora brand. "The acquisition, first announced on July 7th, 2006, was made for a purchase price of GBP 66 million, or approximately [US]$122 million, excluding transaction costs."

In 2012, Interflora acquired Flying Flowers, Flowers Direct and Drake Algar in the U.K.

Operations

Fiscal year 2006 revenues grew 6.2% to $465.1 million, compared with revenues of $437.8 million for fiscal 2005. This revenue growth was driven by an 11.6% increase in revenue in the Consumer Segment.

The Mercury Network, the electronic network used by FTD, processes about fifteen million orders annually, through about 50,000 FTD affiliates in 154 countries, of which about 20,000 are in the United States and Canada.

CEO Compensation
As President, FTD Group, Inc. at UNITED ONLINE INC, Robert S. Apatoff made $1,742,379 in total compensation. Of this total $630,000 was received as a salary, $587,038 was received as a bonus, $0 was received in stock options, $506,000 was awarded as stock and $19,341 came from other types of compensation. This information is according to proxy statements filed for the 2012 fiscal year.

Competitors

• 1-800-Flowers
• ProFlowers
• Teleflora
• The Bouqs
• JustFlowers

Lawsuits

FTD had obtained a near-monopoly position in its market. It has been sued several times by the United States Department of Justice to ensure it does not engage in non-competitive behavior, namely prohibiting members from affiliating with competing flowers-by-wire services. FTD entered into consent decrees with the Department of Justice after 1956, 1969, and 1990 suits.

Florists' Transworld Delivery (FTD), sued its competitor ProFlowers for false advertising in August 2005. The suit focused on ProFlowers' claim to ship "direct from the fields" with "no middlemen". Stating that the lawsuit was "without merit", ProFlowers brought counterclaims against FTD. The lawsuit was settled a year later out of court.

External links

• FTD, Inc. – florist trade business
• FTD.COM – consumer direct sales
• www.etfa.org – Retail Florist Association corporate website (separated from FTD in 2001)