Florists' Transworld Delivery

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FTD Group
Type	Public company (NYSE: FTD) Former retailers' cooperative
Founded	1910
Headquarters	Downers Grove, Illinois, United States
Key people	Michael J. Soenen, President and CEO Peter J. Nolan, Chairman[1]
Industry	Floral industry
Revenue	▲$613 million (2007)[1]
Operating income	▲$78 million (2007)[1]
Net income	▲$32 million (2007)[1]
Total assets	▲$749 million [2][1]
Total equity	▲$262 million [2][1]
Employees	984 (2007) [2][1]
Subsidiaries	FTD.COM (direct sales) FTD, Inc. (floral trade services, North America) Interflora (floral trade services, UK and Ireland)
Website	FTD.COM www.ftdi.com

FTD Group, Inc. (NYSE: FTD), also trading as Florists' Transworld Delivery, is a floral service provider 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 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.

In 2008, United Online (NASDAQ: UNTD) announced a merger agreement with FTD Group, valued at $800 million. ^[3]

[edit] History

On August 18, 1910, fifteen American florists agreed to serve each others' out-of-town customers by exchanging orders via telegraph, and 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.^[4]

[edit] 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, 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.^[6][7]

[edit] Acquisitions

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]

[edit] 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. The Mercury Network was developed by John D. Goeken, a telecommunications entrepreneur who co-founded MCI Communications.

[edit] Competitors

• 1-800-Flowers
• ProFlowers
• Teleflora

[edit] Lawsuits

Florists' Transworld Delivery (FTD), sued its competitor ProFlowers for false advertising in August 2005. The suit focused on ProFlowers's 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.^{[citation needed]}

[edit] Sources

1. ^ ^{a b c d e f g} 2007 Annual Report. FTD Group, Inc.. Retrieved on 2008-05-20.
2. ^ ^{a b c} Figures at financial year end, June 30, 2007
3. ^ Press release: United Online, Inc. to Acquire FTD Group, Inc. for Approximately $800 Million. United Online and FTD Group (2008-04-30).
4. ^ About Us: The History of FTD. FTD.COM. Retrieved on 2008-05-20.
5. ^ In this case, the members are the retail florists
6. ^ About Us: A letter from the President. Retrieved on 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.”
7. ^ "Reorganized Association Links Consumers With Local Retail Florists", Business Wire via findarticles.com, 2001-06-07. Retrieved on 2008-05-20. 
8. ^ FTD Group, Inc. (2006-07-31). "FTD Group, Inc. Completes Purchase of Interflora Holdings Limited". Press release. Retrieved on 2006-09-23.
9. ^ FTD Group, Inc. (2006-08-09). "FTD Group, Inc. Reports Fourth Quarter and Fiscal Year 2006 Results". Press release. Retrieved on 2006-09-23.

[edit] External links

• FTD, Inc. – florist trade business
• FTD.COM – consumer direct sales
• US Department of Justice settles charges against FTD
• www.etfa.org – Retail Florist Association corporate website (separated from FTD in 2001)