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Ftdpic

Source: FTD Companies.

As weakness in the economy is causing some companies to be pushing up daisies, FTD Companies (NASDAQ:FTD) continues to produce solid results in its short public history from its most recent IPO in October 2013. The original idea of a network of florists serving each other's out-of-town customers began in 1910 and has made the company what it is today.

The flowery results
On Aug. 12, FTD Companies reported fiscal second-quarter results. Revenue bumped up 2.3% to $168.1 million. Adjusted net income increased a bit by 0.9% to $11.3 million. This is rather decent considering it included the costs of being public this year compared to last year when there were no such costs yet net income still managed to rise.

Breaking it down by its three segments, the consumer segment saw revenue slip by 2.2% to $96.1 million based on a 5.8% decline in orders, which is obviously not a good thing. The florist segment inched up 0.8% to $41.7 million, but it was the international segment that saved the day, with 17.6% revenue growth to $35.8 million.

In the earnings press release, CEO Robert S. Apatoff stated, "While the consumer environment in the U.S. remains challenging, we remain focused on managing the controllable aspects of our business and the execution of our strategic initiatives to fuel long-term profitable growth." He put it more succinctly in the conference call by saying, "We continue to benefit from our stable and consistently profitable business model."  

Ftdpic

Source: FTD Companies.

Planting the seeds
During the conference call, the company attributed the decline in orders for the consumer segment to "lower performance with one of our larger partners." It should be noted that the decline in orders was offset by an average order value increase of 4%, which bodes well for the future. The company has "identified and is executing on multiple initiatives" which it expects will bear fruit in the second half of the year across all three segments.

For the full year 2014, FTD Companies expects revenue of $640 million to $650 million along with adjusted net income of $40.8 million to $43.3 million. The revenue figure excludes any effect of the pending acquisition of floral and gifting company Provide Commerce, but the net income estimate does reflect estimated acquisition-related transaction costs of $13 million to $15 million.

If results hit guidance, this will continue a nice trend of FTD slowly but surely growing revenue and earnings, if you exclude the transaction costs. Revenue for fiscal 2013 and 2012 was $627.3 million and $613.5 million, respectively. Adjusted net income was $45.2 million and $40.8 million for those two years, respectively.

Ftdpic

Source: FTD Companies.

The guidance numbers don't reflect any potential benefits from the proposed acquisition as it hasn't even been voted on yet by shareholders. If the deal closes, it will significantly increase FTD's revenue to over the $1 billion mark, according to the company.

Foolish final thoughts
It remains to be seen how successful the integration and possible synergies between the acquired company and the parent company will be, if the acquisition does occur. It adds a degree of speculation to the already profitably growing FTD Companies. Meanwhile, the numbers suggest the company is doing something very right internationally, and if management can duplicate some of that success domestically, we could all be in for a surprise.

Nickey Friedman has no position in any stocks mentioned. The Motley Fool owns shares of FTD Companies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.