Previous company name
IOS BRANDS CORPORATION
Name change date
FTD Inc is the world’s leading floral delivery service company offering the widest variety of floral products available through a single source. The company offers an extensive line of the finest branded, generic, and licensed products for every special occasion and floral holiday. The company’s corporate headquarters is located in Downers Grove, Illinois, United States. The company’s origin dates back to 1910 when it offered the first flowers-by-wire service in the country.
FTD’s products and services include glassware, baskets, gourmet, perishables, candles, balloons, silk flowers, greeting cards, add-ons, including a large assortment of floral supplies in varied case counts. These products are available to both FTD member and nonmember florists. The company offers a collection of well-known products that meet customer’s everyday gift-giving needs such as birthdays and anniversaries. FTD’s Flower Exchange program is a one-stop online wholesaler for all fresh flower needs direct from the grower. This online buying service is available to all FTD members. The company offers more than 400 floral arrangements and 800 specialty products delivered within 24 hours across the United States.
FTD connects approximately 20,000 North American florists and nearly 50,000 additional florists in 150 countries through its largest subsidiary, Florists’ Transworld Delivery, Inc. (FTDI). FTD is responsible for furnishing technology for FTDI, which covers billing and marketing.
FTD Inc is a subsidiary of the FTD Group, America’s leading provider of floral-related products and services to consumers and retail florists as well as other retail locations.
FTD, Inc. is engaged in the florist business through its wholly owned subsidiary, Florists’ Transworld Delivery, Inc. (FTD) and FTD’s subsidiaries, FTD.COM INC., FTD Canada, Inc. and Renaissance Greeting Cards, Inc. The Company provides products and services, such as clearinghouse services, technology products and services and floral shop supplies, to approximately 20,000 member florists and other retail locations offering floral products in the United States and Canada. It connects approximately 29,000 additional florists through affiliated or related organizations in 150 countries outside of North America. The Company’s indirect subsidiary, FTD.COM, is an Internet and telephone marketer of flowers and specialty gifts. FTD.COM sells directly to consumers, primarily through its www.ftd.com Website and its 1-800-SEND-FTD toll-free telephone number. In February 2004, the Company was merged into Nectar Merger Corporation, a subsidiary of Mercury Man Holdings Corporation.
Description and history
FTD, Inc. is a provider of floral services and products to member florists and consumers. Through its florist business, the Company provides products and services, such as clearinghouse services, technology products and services and floral shop supplies, to approximately 20,000 member florists in the United States and Canada, and, through affiliated or related organizations, connects approximately 28,000 additional florists in 152 countries outside of North America. The consumer business segment is comprised of FTD.COM INC. (FTD.COM), an Internet and telephone marketer of flowers and specialty gifts. FTD.COM sells directly to consumers, primarily through its www.ftd.com Website and its 1-800-SEND-FTD toll-free telephone number. In February 2004, the Company was merged into Nectar Merger Corporation, a subsidiary of Mercury Man Holdings Corporation.
Effective June 28, 2002, the Company, Florists’ Transworld Delivery, Inc. (the Company’s principal operating subsidiary) and FTD.COM completed a merger transaction, pursuant to which FTD.COM became an indirect wholly owned subsidiary of FTD. In July 2002, FTD, through FTD.COM, acquired Flowers Direct LLP, a direct marketer of floral products and specialty gifts, including everyday and special occasion floral arrangements, green and blooming plants and gourmet food items. In October 2002, the Company acquired Flowers USA, a direct marketer of floral products and specialty gifts, including everyday and special occasion floral arrangements, green and blooming plants and gourmet food items.
The florist business segment includes revenue associated with the services and products provided to member florists. These services and products are comprised of clearinghouse services, publications products and services, Mercury network services, Mercury computer equipment products and services and specialty wholesaling products.
Clearinghouse services primarily consist of the provision of billing and collection services to both the sending and receiving florists in flowers-by-wire transactions. Revenues from the clearinghouse are generated by retaining a percentage of the sales price of orders sent through the clearinghouse and are recorded in the month the orders are filled. Revenue is also generated from the monthly access fee charged to member florists and credit card processing services provided to member florists. Cash rebates, which are earned by florists under a customer incentive program in conjunction with the credit card processing service offered by FTD, are classified as contra-revenue.
Publications products and services primarily consist of a telephone directory of Company member florists that is published on a quarterly basis in both CD-ROM and paper book form. Revenues relating to publications are recognized in the periods in which the publications are issued. In addition, FTD provides services related to the set-up and maintenance of florists’ Websites for FTD Florists’ Online hosted through FTD.COM’s www.ftd.com Website, pursuant to a Website hosting agreement with FTD.COM. Revenue for FTD Florists’ Online Website hosting is recognized ratably over the one-year life of the agreement.
The Company’s Mercury Network is a proprietary telecommunications network linking FTD and approximately 50% of its member florists. Florists who are linked by the Mercury Network are able to transmit orders cleared through the Company or through competing clearinghouses and to send each other messages based on a per-order or per-message fee. Revenues for the services related to the processing of orders (including transmission charges) are recorded in the period the service is provided.
Mercury computer equipment and software sales include both the sales and leasing of hardware and software designed for the floral industry. The software provides a variety of options as it offers access to FTD’s Mercury Network to allow for sending and receiving orders, billing capabilities, order-entry capabilities, an interface to various accounting software packages and a comprehensive range of payroll and accounting functions. The Company recognizes revenue from software products (including specified upgrades/enhancements) at the time of shipment for systems sold. For systems that are being leased, FTD recognizes revenue ratably over the period of the lease agreement. Support revenue is recognized over the period of the support agreement. Installation and training revenues are recognized at the time of occurrence.
The Company sells both FTD-branded and non-branded holiday and everyday floral arrangement containers and products. FTD also sells packaging, promotional products and a wide variety of other floral-related supplies, including greeting cards and the Floral Selections Guide, a counter display catalog published by FTD, featuring products for all occasions. By capitalizing on the Company’s sourcing expertise and volume purchases, it is able to provide florists with a broad selection of products at competitive prices.
FTD.COM is an Internet and telephone marketer of flowers and specialty gifts that began selling products directly to consumers through the 1-800-SEND-FTD toll-free telephone number in 1993, and electronically to consumers through the www.ftd.com Website in 1994. FTD.COM offers same-day delivery of floral orders to nearly 100% of the United States population. The majority of orders are fulfilled by a group of independent FTD florists. FTD.COM offers over 400 floral arrangements and over 800 specialty gift items, including gourmet gift baskets, holiday gift sets, bath and beauty products, garden products and stuffed animals.
Orders placed through FTD.COM’s Website or 1-800-SEND-FTD typically are paid for using a credit card. When a customer makes a purchase that will be fulfilled by an FTD florist, FTD.COM processes the order, charges the customer’s credit card and transmits the order to the Mercury Network. The Mercury Network then transmits the order to the fulfilling florist. FTD.COM charges the customer a service fee of $8.99 for floral orders placed through its Website and $9.99 for floral orders placed through the toll-free telephone number, 1-800-SEND-FTD, prior to any promotional discounts.
Orders from FTD.COM’s specialty gift selection are fulfilled by a manufacturer or a third-party distributor based on a pre-negotiated price. FTD.COM charges the customer shipping and handling fees for these specialty gift product orders. Amounts charged to the customer for the product and shipping and handling are recorded as revenue, while the pre-negotiated price of the product and the costs incurred for shipping and handling are recorded as costs of goods sold and services provided.
The Company competes with Teleflora LLC and 1-800-FLOWERS.COM, Inc.
It offered the first flowers-by-wire service in the country
Offers an extensive line of the finest branded, generic, and licensed products for every special occasion and floral holiday
FLORISTS’ TRANSWORLD DELIVERY, INC.
ERNST & YOUNG LLP
US SIC Code
3113, Woodcreek Drive
City province or state postal code
60515, DOWNERS GROVE, IL
Phone: +1 630 719 7800
Country address: UNITED STATES OF AMERICA
Website url: www.ftdi.com