Florists' Transworld Delivery

FTD Companies, Inc.
Public
Traded as NASDAQ: FTD
Industry Floral industry
Founded 1910
Headquarters Downers Grove, Illinois, United States
Key people
 Robert Apatoff, President and CEO
Revenue Increase$613 million (2007)[1]
Increase$78 million (2007)[1]
Increase$32 million (2007)[1]
Total assets Increase$749 million [1][2]
Total equity Increase$262 million [1][2]
Owner Former retailers' cooperative
Number of employees
 984 (2007) [1][2]
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, thirteen 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.[3]

Demutualization of co-operatives

Demutualization of a co-operative is sometimes known as privatization, and involves the consumer members[4] 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.[5][6]

In 2008, United Online (NASDAQ: UNTD) announced a merger agreement with FTD Group, valued at $800 million.[7] 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. 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." [8]

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.[9]

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

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.[10][11]

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.

References

  1. 1 2 3 4 5 6 "2007 Annual Report" (PDF). FTD Group, Inc. Retrieved 2008-05-20.
  2. 1 2 3 Figures at financial year end, June 30, 2007
  3. ↑ "About Us: The History of FTD". FTD.COM. Retrieved 2008-05-20.
  4. ↑ In this case, the members are the retail florists
  5. ↑ "About Us: A letter from the President". Retrieved 2008-05-20. Retail Florist Association was founded in 2001 (as Extra Touch Floral Association) to promote and support growth, education and networking for the individual brick and mortar retail florist
  6. ↑ "Reorganized Association Links Consumers With Local Retail Florists". Business Wire via findarticles.com. 2001-06-07. Retrieved 2008-05-20.
  7. ↑ "Press release: United Online, Inc. to Acquire FTD Group, Inc. for Approximately $800 Million". United Online and FTD Group. 2008-04-30.
  8. ↑ "FTD Group, Inc. Completes Purchase of Interflora Holdings Limited" (Press release). FTD Group, Inc. 2006-07-31. Retrieved 2006-09-23.
  9. ↑ "FTD Group, Inc. Reports Fourth Quarter and Fiscal Year 2006 Results" (Press release). FTD Group, Inc. 2006-08-09. Retrieved 2006-09-23.
  10. ↑ "JUSTICE DEPARTMENT SETTLES CHARGES AGAINST FTD, THE LEADING FLOWERS-BY-WIRE COMPANY, FOR VIOLATING 1990 CONSENT DECREE". United States Department of Justice. 1995-08-02. Retrieved 2008-07-03.
  11. ↑ "F.T.D. Agrees to Settle Antitrust Complaint". New York Times. 1995-08-03. Retrieved 2008-07-03.

External links

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