(FTD) FTD top execs leave amid restructuring; board pondering sale

Discussion in 'Stocks' started by universaller, Jul 19, 2018.

  1. It's going to be an interesting play here...

    FTD Cos. Inc. FTD, +1.35% announced the departure of its chief executive, chief operating officer and chief marketing officer Thursday afternoon, and said the board was reviewing strategic alternatives while immediately restructuring the company. The beleaguered floral company said John Walden had stepped down as president and CEO effective immediately and would be replaced on an interim basis by General Counsel Scott Levin. The company also said it would eliminate the COO position, previously held by Simha Kumar, and that CMO Jeffrey Severts would leave the company. In addition to Levin, Chief Information Officer Jay Topper will remain with a new title of chief digital officer. The company said that it had hired Moelis & Co. to assist with a strategic review that will include the possibility of "a sale or merger of the company." In addition, the company said it was restructuring in an effort to save $18 million to $23 million in annualized costs in 2019, though it did not say how many employees would be let go. FTD said it expects to report second-quarter net income of $1.5 million to $4.5 million on revenue of $299 million to $301 million, well below the average analyst estimate of $11 million in profit and $320 million in sales, according to FactSet. The company also reduced its forecast for annual 2018 profit and revenue. FTD stock dropped 17% in after-hours trading following the announcement. The shares have plummeted 77.4% in the past year, as the S&P 500 index has gained 13.8%.