SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For
the Fiscal Year Ended December 31, 1999
Commission File Number 0-05531
GERALD STEVENS, INC. 401(K) PLAN
Gerald Stevens, Inc.
301 East Las Olas Boulevard
Ft. Lauderdale, Florida 33301
<PAGE>
Financial Statements
--------------------
Financial Statements. Filed as part of this Report on Form 11-K are the
financial statements of the Gerald Stevens, Inc. 401(k) Plan, as required by
Form 11-K. No audit was required for such financial statements.
2
<PAGE>
GERALD STEVENS, INC. 401(k) PLAN
---------------------------------
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
-----------------------------------------------
DECEMBER 31, 1999
-----------------
3
<PAGE>
<TABLE>
<CAPTION>
GERALD STEVENS, INC. 401(k) PLAN
--------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
---------------------------------------------------
DECEMBER 31, 1999
-----------------
December 31,
1999
------------
<S> <C>
ASSETS:
Investments (See Note 3) $ 2,468,319
Receivables:
Employer contribution 241,361
Participant contributions 21,425
-----------
Total receivables 262,786
-----------
Total assets 2,731,105
-----------
LIABILITIES --
-----------
Net assets available for plan benefits $ 2,731,105
===========
</TABLE>
The accompanying notes to financial statements are an integral part of these
statements.
4
<PAGE>
<TABLE>
<CAPTION>
GERALD STEVENS, INC. 401(k) PLAN
--------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
--------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1999
------------------------------------
Year Ended
December 31,
1999
-----------
<S> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Net appreciation in fair value of investments (see Note 3) $ 164,343
Accrued Income 620
Dividends 92,187
----------
LESS INVESTMENT EXPENSES --
----------
257,150
----------
CONTRIBUTIONS:
Participant contributions 987,998
Participant rollovers 1,296,975
Employer contributions 241,361
----------
2,526,334
----------
Total additions 2,783,484
----------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Benefits paid to participants 52,379
Administrative expenses (see Note 5) --
----------
Total deductions 52,379
----------
Net increase 2,731,105
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
Beginning of year --
----------
End of year $2,731,105
==========
</TABLE>
The accompanying notes to financial statements are an integral part of these
statements.
5
<PAGE>
GERALD STEVENS, INC. 401(k) PLAN
--------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
1. DESCRIPTION OF PLAN
-------------------
General
-------
The Gerald Stevens, Inc. 401(k) Plan (the "Plan") is a defined contribution plan
established by Gerald Stevens, Inc. (the "Company") beginning January 1, 1999.
It is subject to the provisions of the Employee Retirement Income Security Act
of 1974 (ERISA). Participants should refer to the Plan agreement, the Summary
Plan Description, and the Prospectus Supplement for the Plan for a more complete
description of the Plan's provisions.
Eligibility
-----------
All employees 21 years of age or older are eligible to participate in the Plan
once they have completed one year of service.
Contributions
-------------
The Plan provides that participants may contribute a percentage of their annual
compensation within the limitations prescribed by the IRS. An individual
participants' contributions are limited to an annual maximum of $10,000 for the
plan year ended December 31, 1999. The Company contributes, on behalf of each
participant, an amount equal to 50% of the first 3% of the participant's salary
deferral.
Employees may direct that their contributions be invested in the "Merrill Lynch
Retirement Preservation Trust," "PIMCO Total Return Fund," "Dreyfus Premier
Balanced Fund," "Franklin Balance Sheet Investment Fund," "Massachusetts
Investors Trust," "Alliance Premier Growth Fund," "GAM International Fund," "MFS
Capital Opportunities Fund," "Merrill Lynch Equity Index Trust," or "Gerald
Stevens, Inc. Stock Fund" with Merrill Lynch Trust Company ("MLT"), the Plan's
Trustee. The Company is the Plan's administrator. All contributions are
participant-directed and may be invested in one fund or allocated among
different funds, subject to certain limitations set forth in the Plan. Changes
in allocation of contributions among funds are permitted pursuant to plan
provisions.
6
<PAGE>
Participant Accounts
--------------------
Each participant's account is credited with the participant's and the Company's
matching contributions and an allocation of Plan earnings and investment gains
and losses. Allocations of Plan earnings and investment gains and losses are
based on actual participant account activity. The benefit to which a participant
is entitled is the benefit that can be provided from the participant's vested
account.
Vesting
-------
Participants are vested immediately in their contributions plus actual earnings
thereon. Vesting in the Company's contribution portion of their accounts is
based on years of continuous service. A participant is 100 % vested after six
years of credited service.
Withdrawals
-----------
The Plan allows a participant to withdraw up to 100% of the participant's
contribution account for qualifying emergencies in accordance with the Plan
agreement.
Payment of Benefits
-------------------
Upon retirement, death or disability of a participant the Plan Administrator
will direct the Trustee to pay the participant's benefits as a lump-sum amount
equal to the value of the participant's vested interest in his or her account.
Reference should be made to the Plan agreement for additional information
concerning employee and employer contributions, eligibility, allocation of
income, withdrawals, vesting and other important features of the Plan.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------------------------------------------
The financial statements of the Plan have been prepared on the accrual basis of
accounting. The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan's management to use estimates
and assumptions that affect the accompanying financial statements and
disclosures. Actual results could differ from these estimates.
7
<PAGE>
The Plan's investments are stated at fair value. Quoted market prices are used
to value investments. Shares of mutual funds are valued at the net asset value
of shares held by the Plan at year end. The net appreciation in the fair value
of the Plan's investments, which consists of the realized gains or losses and
the unrealized appreciation on those investments, is presented in the statement
of changes in net assets available for plan benefits.
3. INVESTMENTS
-----------
The following presents investments that represent 5 percent or more of the
Plan's net assets.
<TABLE>
<CAPTION>
December 31, 1999
-------------------------
Market
Cost Value
-------- --------
<S> <C> <C>
Merrill Lynch Equity Index Trust, 4,267 shares 378,161 431,813
Merrill Lynch Retirement Preservation Trust,
308,847 shares 308,848 308,848
Dreyfus Premier Balanced Fund, 21,464 shares 327,563 332,483
PIMCO Total Return Fund, 16,400 shares 167,858 162,360
Alliance Premier Balanced Fund, 13,861 shares 453,586 505,933
MFS Capital Opportunities Fund, 10,824 shares 201,531 227,422
Massachusetts Investors Trust, 14,011 shares 282,389 293,539
</TABLE>
During 1999, the Plan's investments (including gains and losses on investments
bought and sold, as well as held during the year) appreciated in value by
$164,343 as follows:
1999
-------------
Common Stock $ (4,634)
Common/Collective Trusts 53,652
Mutual Funds 109,469
Realized gain on assets sold 5,856
-------------
$ 164,343
=============
4. RECONCILIATION TO FORM 5500
---------------------------
As of December 31, 1999, the Plan had $808 of pending distributions to
participants who elected to withdraw from the Plan. In accordance with generally
accepted accounting principles, such amounts are included as a component of net
assets available for plan benefits in the accompanying statement of net assets
available for benefits. In accordance with Department of Labor Rules and
Regulations, such amounts are reflected as benefit payments and benefit claims
payable in the Plan's Form 5500.
The following is a reconciliation of net assets available for benefits per the
financial statements Form 5500.
<TABLE>
<CAPTION>
--------------------------------------------------------------------- --------------------------
December 31,
1999
--------------------------------------------------------------------- --------------------------
<S> <C>
Net assets available for benefits per the financial statements $ 2,731,105
--------------------------------------------------------------------- --------------------------
Less: Amounts allocated to withdrawing participants 808
--------------------------------------------------------------------- --------------------------
--------------------------------------------------------------------- --------------------------
Net assets available for benefits per the
--------------------------------------------------------------------- --------------------------
Form 5500 $ 2,730,297
-----------
--------------------------------------------------------------------- --------------------------
</TABLE>
8
<PAGE>
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
<TABLE>
<CAPTION>
--------------------------------------------------------------------- --------------------------
December 31,
1999
--------------------------------------------------------------------- --------------------------
<S> <C>
Distributions to participants per the financial statements $ 52,379
--------------------------------------------------------------------- --------------------------
Add: Amounts allocated to withdrawing participants 808
-----------------
--------------------------------------------------------------------- --------------------------
--------------------------------------------------------------------- --------------------------
Distributions to participants per the Form 5500 $ 53,187
-----------------
--------------------------------------------------------------------- --------------------------
</TABLE>
5. ADMINISTRATIVE EXPENSES
-----------------------
Costs of the Plan's administration are paid for by the Company and are excluded
from the financial statements. In 1999 these costs were approximately $8,637.
6. TERMINATION
-----------
Although it has not expressed an intention to do so, the Company may terminate
the Plan at any time. In the event the Plan is terminated or upon the complete
discontinuance of contributions by the Company under the Plan, participants
would become 100 percent vested in all amounts credited to their accounts.
7. RELATED-PARTY TRANSACTIONS
--------------------------
Certain Plan investments are shares of mutual funds managed by Merrill Lynch.
Merrill Lynch is the trustee as defined by the Plan and, therefore, these
transactions qualify as party-in-interest transactions. No Fees were paid by the
Plan for investment management services for the year ended December 31, 1999.
8. INCOME TAX STATUS
-----------------
No provision for federal income taxes has been made in the accompanying
financial statements.
9 INFORMATION CERTIFIED BY TRUSTEE
--------------------------------
All information included in the financial statements and schedules were prepared
from data certified as complete and accurate by Merrill Lynch Trust Services. No
auditing procedures were performed on such data by the Plan's independent
certified public accountants.
9
<PAGE>
<TABLE>
<CAPTION>
GERALD STEVENS, INC. 401(k) PLAN
--------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
AS OF DECEMBER 31, 1999
-----------------------
---------------------------- -------------------------------------------------- -------------------- --------------------
Contract
Or
Identity of Market
Party Involved Description of Investment Cost Value
---------------------------- -------------------------------------------------- -------------------- --------------------
<S> <C> <C> <C>
*Merrill Lynch Gerald Stevens Inc. common stock $ 15,823 $ 11,189
---------------------------- -------------------------------------------------- -------------------- --------------------
*Merrill Lynch Merrill Lynch Equity Index Trust 378,161 431,813
---------------------------- -------------------------------------------------- -------------------- --------------------
*Merrill Lynch Merrill Lynch Retirement Preservation Trust 308,848 308,848
---------------------------- -------------------------------------------------- -------------------- --------------------
*Merrill Lynch GAM International Fund 114,390 135,695
---------------------------- -------------------------------------------------- -------------------- --------------------
*Merrill Lynch Dreyfus Premier Balanced Fund 327,563 332,483
---------------------------- -------------------------------------------------- -------------------- --------------------
*Merrill Lynch PIMCO Total Return Fund 167,858 162,360
---------------------------- -------------------------------------------------- -------------------- --------------------
*Merrill Lynch Alliance Premier Balanced Fund 453,586 505,933
---------------------------- -------------------------------------------------- -------------------- --------------------
*Merrill Lynch MFS Capital Opportunities Fund 201,531 227,422
---------------------------- -------------------------------------------------- -------------------- --------------------
*Merrill Lynch Franklin Balance Sheet Investment Fund 59,842 59,196
---------------------------- -------------------------------------------------- -------------------- --------------------
*Merrill Lynch Massachusetts Investors Trust 282,389 293,539
---------------------------- -------------------------------------------------- -------------------- --------------------
</TABLE>
* Denotes a Party-in-Interest
10
<PAGE>
<TABLE>
<CAPTION>
GERALD STEVENS, INC. 401(k) PLAN
--------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
----------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1999
------------------------------------
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
Identity of Purchase Sales Cost Net Gain/
Party Involved Description of Asset Price Price of Asset (Loss)
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
Merrill Lynch
Trust Company Gerald Stevens Inc. common stock $ 15,823 $ -- $ -- $ --
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
Merrill Lynch Equity Index Trust 381,112 -- --
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
Merrill Lynch Equity Index Trust 3,267 2,951 316
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
Merrill Lynch Retirement Preservation Trust 330,863 -- --
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
Merrill Lynch Retirement Preservation Trust 22,015 22,015 --
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
GAM International Fund 116,916 -- --
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
GAM International Fund 2,411 2,527 (116)
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
PIMCO Total Return Fund 177,772 -- --
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
PIMCO Total Return Fund 9,728 9,918 (190)
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
Alliance Premier Balanced fund 474,747 -- --
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
Alliance Premier Balanced fund 23,638 21,161 2,477
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
Franklin Balance Sheet Investment Fund 67,085 -- --
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
Franklin Balance Sheet Investment Fund 7,023 7,243 (220)
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
Massachusetts Investors Trust 310,675 -- --
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
Massachusetts Investors Trust 28,811 28,825 526
----------------------- ------------------------------------------------------------- ------------- --------------- ----------------
</TABLE>
(Continued)
11
<PAGE>
<TABLE>
<CAPTION>
GERALD STEVENS, INC. 401(k) PLAN
--------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
----------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1999
------------------------------------
(Continued)
----------------------- ----------------------------------------------------- --------------- ---------------- ---------------------
Identity of Purchase Sales Cost Net Gain/
Party Involved Description of Asset Price Price of Asset (Loss)
----------------------- ----------------------------------------------------- --------------- ---------------- ---------------------
<S> <C> <C> <C> <C> <C>
Merrill Lynch MFS Capital Opportunities Fund 216,196 -- --
Trust Company MFS Capital Opportunities Fund 17,669 14,666 3,001
----------------------- ----------------------------------------------------- --------------- ---------------- ---------------------
----------------------- ----------------------------------------------------- --------------- ---------------- ---------------------
Dreyfus Premier Balanced Fund 340,731 -- --
----------------------- ----------------------------------------------------- --------------- ---------------- ---------------------
Dreyfus Premier Balanced Fund 13,229 13,168 61
----------------------- ----------------------------------------------------- --------------- ---------------- ---------------------
</TABLE>
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Administrator has duly caused this annual report to be signed on its behalf
by the undersigned thereunto duly authorized.
Gerald Stevens, Inc. 401(k) Plan
By: Gerald Stevens, Inc.
Its: Administrator
By: /s/ Adam D. Phillips
------------------------
Adam D. Phillips, Sr. VP
Date: June 28, 2000
13
