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Floor & Decor Holdings, Inc. Announces Third Quarter Fiscal 2024 Financial Results

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Floor & Decor Holdings reported Q3 fiscal 2024 results with net sales of $1,117.9 million, up 0.9% year-over-year, despite challenging market conditions. Comparable store sales decreased 6.4%, while diluted earnings per share reached $0.48, down 21.3% from $0.61 in Q3 2023. The company opened 11 new warehouse-format stores during the quarter, expanding to 241 warehouse stores and five design studios. Operating income decreased 21.8% to $66.3 million, with operating margin declining 180 basis points to 5.9%. The company updated its fiscal 2024 outlook, projecting net sales between $4,400-4,430 million and comparable store sales decline of (8.5)% to (7.5)%.

Floor & Decor Holdings ha riportato i risultati del terzo trimestre dell'esercizio fiscale 2024 con vendite nette pari a 1.117,9 milioni di dollari, in aumento dello 0,9% rispetto all'anno precedente, nonostante le difficili condizioni di mercato. Le vendite comparabili dei negozi sono diminuite del 6,4%, mentre il risultato per azione diluito ha raggiunto 0,48 dollari, in calo del 21,3% rispetto a 0,61 dollari nel terzo trimestre del 2023. L'azienda ha aperto 11 nuovi negozi in formato magazzino durante il trimestre, espandendosi a 241 negozi in formato magazzino e cinque studi di design. Il reddito operativo è diminuito del 21,8% a 66,3 milioni di dollari, con un margine operativo in calo di 180 punti base al 5,9%. L'azienda ha aggiornato le previsioni per l'esercizio fiscale 2024, prevedendo vendite nette tra 4.400-4.430 milioni di dollari e un calo delle vendite comparabili tra il (8,5)% e il (7,5)%.

Floor & Decor Holdings informó los resultados del tercer trimestre del año fiscal 2024 con ventas netas de 1,117.9 millones de dólares, un aumento del 0.9% en comparación con el año anterior, a pesar de las difíciles condiciones del mercado. Las ventas comparables de las tiendas disminuyeron un 6.4%, mientras que las ganancias por acción diluidas alcanzaron 0.48 dólares, una caída del 21.3% desde 0.61 dólares en el tercer trimestre de 2023. La compañía abrió 11 nuevas tiendas en formato de almacén durante el trimestre, expandiéndose a 241 tiendas de almacén y cinco estudios de diseño. El ingreso operativo disminuyó un 21.8% a 66.3 millones de dólares, con un margen operativo que cayó 180 puntos base al 5.9%. La compañía actualizó su proyección para el año fiscal 2024, pronosticando ventas netas entre 4,400 y 4,430 millones de dólares y una disminución de las ventas comparables de entre (8.5)% y (7.5)%.

Floor & Decor Holdings는 2024 회계연도의 3분기 결과를 발표하며 순매출이 11억 1,790만 달러로 전년 대비 0.9% 증가했다고 보고했습니다. 어려운 시장 상황에도 불구하고 비교 가능한 매장 매출은 6.4% 감소했으며, 희석 주당 순이익은 0.48달러로, 2023년 3분기의 0.61달러에서 21.3% 하락했습니다. 회사는 이 분기 동안 11개의 신규 매장 형식의 창고를 열어 241개의 창고 매장과 5개의 디자인 스튜디오로 확장했습니다. 운영 소득은 21.8% 감소하여 6,630만 달러에 달했으며, 운영 마진은 180bp 감소하여 5.9%를 기록했습니다. 이 회사는 2024 회계연도 전망을 업데이트하며 순매출을 44억에서 44억 3천만 달러 사이로 예상하고, 비교 가능한 매장 매출 감소를 (8.5)%에서 (7.5)%로 예상했습니다.

Floor & Decor Holdings a annoncé les résultats du troisième trimestre de l'exercice fiscal 2024 avec des ventes nettes de 1 117,9 millions de dollars, en hausse de 0,9 % par rapport à l'année précédente, malgré des conditions de marché difficiles. Les ventes comparables des magasins ont diminué de 6,4 %, tandis que le bénéfice par action dilué a atteint 0,48 dollar, en baisse de 21,3 % par rapport à 0,61 dollar au troisième trimestre 2023. L'entreprise a ouvert 11 nouveaux magasins au format entrepôt au cours du trimestre, portant son total à 241 magasins au format entrepôt et cinq studios de design. Le résultat opérationnel a diminué de 21,8 % pour atteindre 66,3 millions de dollars, avec une marge opérationnelle en baisse de 180 points de base à 5,9 %. L'entreprise a mis à jour ses prévisions pour l'exercice fiscal 2024, projetant des ventes nettes entre 4 400 et 4 430 millions de dollars et une diminution des ventes comparables entre (8,5)% et (7,5)%.

Floor & Decor Holdings hat die Ergebnisse des dritten Quartals des Geschäftsjahres 2024 gemeldet, mit Nettoverkauferlösen von 1.117,9 Millionen Dollar, was einem Anstieg von 0,9% im Vergleich zum Vorjahr entspricht, trotz herausfordernder Marktbedingungen. Die vergleichbaren Umsätze der Filialen sanken um 6,4%, während der verwässerte Gewinn pro Aktie bei 0,48 Dollar lag, was einem Rückgang von 21,3% gegenüber 0,61 Dollar im dritten Quartal 2023 entspricht. Das Unternehmen eröffnete im laufenden Quartal 11 neue Lagerformat-Filialen und erweiterte somit sein Netz auf 241 Lagerfilialen und fünf Designstudios. Der operative Gewinn fiel um 21,8% auf 66,3 Millionen Dollar, während die operative Marge um 180 Basispunkte auf 5,9% sank. Das Unternehmen aktualisierte seinen Ausblick für das Geschäftsjahr 2024 und prognostiziert Nettoverkäufe zwischen 4.400 und 4.430 Millionen Dollar sowie einen Rückgang der vergleichbaren Filialumsätze zwischen (8,5)% und (7,5)%.

Positive
  • Net sales increased 0.9% YoY to $1,117.9 million
  • Expanded retail footprint with 11 new warehouse stores in Q3
  • Strong store execution and cost management led to better-than-expected EPS
Negative
  • Comparable store sales declined 6.4%
  • Operating income decreased 21.8% to $66.3 million
  • Operating margin declined 180 basis points to 5.9%
  • Net income decreased 21.6% to $51.7 million
  • Diluted EPS fell 21.3% to $0.48
  • Adjusted EBITDA decreased 5.7% to $132.9 million
  • Lowered full-year comparable store sales guidance to -8.5% to -7.5%

Insights

Floor & Decor's Q3 results paint a challenging picture despite store expansion efforts. $1,117.9M in net sales showed minimal growth of 0.9%, while comparable store sales declined 6.4%. The 21.8% drop in operating income to $66.3M and compressed operating margin at 5.9% reflect significant profitability pressures.

The company's aggressive expansion continues with 11 new stores in Q3, bringing the total to 241 warehouse stores. However, the updated guidance suggests ongoing challenges, with full-year comparable store sales projected at -8.5% to -7.5%. The reduced EPS outlook of $1.65 to $1.75 indicates persistent headwinds in discretionary home improvement spending.

The home improvement sector continues to face significant headwinds, particularly in discretionary spending. Floor & Decor's performance reflects broader market challenges, with consumers postponing large renovation projects amid economic uncertainties. The company's store expansion strategy, while ambitious, may face pressure in maintaining profitability given the current demand environment.

The decline in comparable store sales suggests market share challenges despite new store openings. The company's $360M to $390M capital expenditure plan for store expansion amid declining comps represents a significant bet on future growth, though timing may be challenging in the current market environment.

Net sales of $1,117.9 million increased 0.9% from the third quarter of fiscal 2023

Comparable store sales decreased 6.4%

Diluted earnings per share of $0.48

Opened 11 new warehouse stores

ATLANTA--(BUSINESS WIRE)-- Floor & Decor Holdings, Inc. (NYSE: FND) (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the third quarter of fiscal 2024, which ended September 26, 2024.

Tom Taylor, Chief Executive Officer, stated, “We are incredibly proud of how our store and store support teams executed our plans and managed costs during a period when demand for large project discretionary home improvement and hard surface flooring spending remained challenging. In the face of these challenges, the hard work and dedication of our associates enabled us to deliver fiscal 2024 third quarter diluted earnings per share of $0.48, which exceeded our expectations. We continue implementing and executing strategies designed to grow our market share while working prudently to manage our profitability and maintain a strong balance sheet in this challenging period. I particularly want to thank our associates affected by the recent hurricanes for their hard work and dedication to their communities. Thanks to their efforts, we quickly reopened our stores to begin serving customers affected by the hurricanes as they began their recovery and rebuilding efforts.”

In the third quarter of fiscal 2024, we opened 11 new warehouse-format stores, including eight openings in fiscal September. As a result, we ended the third quarter operating 241 warehouse-format stores and five design studios compared with 207 warehouse-format stores and five design studios in the same period last year. We plan to open ten warehouse-format stores in the fourth quarter of fiscal 2024 to achieve our 30 new warehouse-format store opening plan in fiscal 2024.

Please see “Comparable Store Sales” below for information on how the Company calculates period-over-period changes in comparable store sales.

For the Thirteen Weeks Ended September 26, 2024

  • Net sales of $1,117.9 million increased 0.9% from $1,107.8 million in the third quarter of fiscal 2023.
  • Comparable store sales decreased 6.4%.
  • We opened 11 new warehouse stores, ending the quarter with 241 warehouse stores and five design studios.
  • Operating income of $66.3 million decreased 21.8% from $84.8 million in the third quarter of fiscal 2023. Operating margin of 5.9% decreased 180 basis points from the third quarter of fiscal 2023.
  • Net income of $51.7 million decreased 21.6% from $65.9 million in the third quarter of fiscal 2023. Diluted earnings per share (“EPS”) of $0.48 decreased 21.3% from $0.61 in the third quarter of fiscal 2023.
  • Adjusted EBITDA* of $132.9 million decreased 5.7% from $140.9 million in the third quarter of fiscal 2023.

For the Thirty-nine Weeks Ended September 26, 2024

  • Net sales of $3,348.4 million decreased 0.5% from $3,365.8 million in the same period of fiscal 2023.
  • Comparable store sales decreased 9.0%.
  • We opened 20 new warehouse stores.
  • Operating income of $197.0 million decreased 28.4% from $275.3 million in the same period of fiscal 2023. Operating margin of 5.9% decreased 230 basis points from the same period of fiscal 2023.
  • Net income of $158.4 million decreased 24.2% from $208.9 million in the same period of fiscal 2023. Diluted EPS of $1.46 decreased 24.7% from $1.94 in the same period of fiscal 2023.
  • Adjusted EBITDA* of $392.8 million decreased 11.4% from $443.4 million in the same period of fiscal 2023.

*Non-GAAP financial measure. Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.

Updated Outlook for the Fiscal Year Ending December 26, 2024:

  • Net sales of approximately $4,400 million to $4,430 million
  • Comparable store sales of approximately (8.5)% to (7.5)%
  • Diluted EPS of approximately $1.65 to $1.75
  • Adjusted EBITDA* of approximately $490 million to $500 million
  • Depreciation and amortization expense of approximately $235 million
  • Interest expense, net of approximately $4 million
  • Tax rate of approximately 18%
  • Diluted weighted average shares outstanding of approximately 108 million shares
  • Open 30 new warehouse stores
  • Capital expenditures of approximately $360 million to $390 million

*Non-GAAP financial measure. Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.

Conference Call Details

A conference call to discuss the third quarter fiscal 2024 financial results is scheduled for today, October 30, 2024, at 5:00 p.m. Eastern Time. A live audio webcast of the conference call, together with related materials, will be available online at ir.flooranddecor.com.

A recorded replay of the conference call is expected to be available approximately three hours after the conclusion of the call and can be accessed both online at ir.flooranddecor.com and by dialing 844-512-2921 (international callers please dial 412-317-6671). The pin number to access the telephone replay is 13748389. The replay will be available until November 6, 2024.

About Floor & Decor Holdings, Inc.

Floor & Decor is a multi-channel specialty retailer and commercial flooring distributor operating 241 warehouse-format stores and five design studios across 38 states as of September 26, 2024. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate and vinyl, and natural stone along with decorative accessories and wall tile, installation materials, and adjacent categories at everyday low prices. The Company was founded in 2000 and is headquartered in Atlanta, Georgia.

Comparable Store Sales

Comparable store sales refer to period-over-period comparisons of our net sales among the comparable store base and are based on when the customer obtains control of the product, which is typically at the time of sale. A store is included in the comparable store sales calculation on the first day of the thirteenth full fiscal month following a store’s opening, which is when we believe comparability has been achieved. Changes in our comparable store sales between two periods are based on net sales for stores that were in operation during both of the two periods. Any change in the square footage of an existing comparable store, including for remodels and relocations within the same primary trade area of the existing store being relocated, does not eliminate that store from inclusion in the calculation of comparable store sales. Stores that are closed for a full fiscal month or longer are excluded from the comparable store sales calculation for each full fiscal month that they are closed. Since our e-commerce, regional account manager, and design studio sales are fulfilled by individual stores, they are included in comparable store sales only to the extent the fulfilling store meets the above mentioned store criteria. Sales through our Spartan Surfaces, LLC (“Spartan”) subsidiary do not involve our stores and are therefore excluded from the comparable store sales calculation.

Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA (which are shown in the reconciliation below) are presented as supplemental measures of financial performance that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). We define EBITDA as net income before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, adjusted to eliminate the impact of non-cash stock-based compensation expense and certain items that we do not consider indicative of our core operating performance. Reconciliations of these measures to the most directly comparable GAAP financial measure are set forth in the table below.

EBITDA and Adjusted EBITDA are key metrics used by management and our board of directors to assess our financial performance and enterprise value. We believe that EBITDA and Adjusted EBITDA are useful measures, as they eliminate certain items that are not indicative of our core operating performance and facilitate a comparison of our core operating performance on a consistent basis from period to period. We also use Adjusted EBITDA as a basis to determine covenant compliance with respect to our credit facilities, to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. EBITDA and Adjusted EBITDA are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry.

EBITDA and Adjusted EBITDA are non-GAAP measures of our financial performance and should not be considered as alternatives to net income as a measure of financial performance, or any other performance measure derived in accordance with GAAP, and they should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Additionally, EBITDA and Adjusted EBITDA are not intended to be measures of liquidity or free cash flow for management’s discretionary use. In addition, these non-GAAP measures exclude certain non-recurring and other charges. Each of these non-GAAP measures has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the items eliminated in the adjustments made to determine EBITDA and Adjusted EBITDA, such as stock-based compensation expense, fair value adjustments related to contingent earn-out liabilities, and other adjustments. Our presentation of EBITDA and Adjusted EBITDA should not be construed to imply that our future results will be unaffected by any such adjustments. Definitions and calculations of EBITDA and Adjusted EBITDA differ among companies in the retail industry, and therefore EBITDA and Adjusted EBITDA disclosed by us may not be comparable to the metrics disclosed by other companies.

Please see “Reconciliation of GAAP to Non-GAAP Financial Measures” below for reconciliations of non-GAAP financial measures used in this release to their most directly comparable GAAP financial measures. The Company does not provide a reconciliation of forward-looking measures where it believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and the Company is unable to reasonably predict certain items contained in the GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company’s control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

 

Floor & Decor Holdings, Inc.

Condensed Consolidated Statements of Income

(In thousands, except for per share data)

(Unaudited)

 

 

Thirteen Weeks Ended

 

 

 

September 26, 2024

 

September 28, 2023

 

% Increase

(Decrease)

 

Amount

 

% of Net Sales

 

Amount

 

% of Net Sales

 

Net sales

$

1,117,926

 

100.0

%

 

$

1,107,812

 

100.0

%

 

0.9

%

Cost of sales

 

632,056

 

56.5

 

 

 

640,357

 

57.8

 

 

(1.3

)%

Gross profit

 

485,870

 

43.5

 

 

 

467,455

 

42.2

 

 

3.9

%

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling and store operating

 

339,135

 

30.3

 

 

 

308,581

 

27.9

 

 

9.9

%

General and administrative

 

67,687

 

6.1

 

 

 

59,870

 

5.3

 

 

13.1

%

Pre-opening

 

12,731

 

1.2

 

 

 

14,232

 

1.3

 

 

(10.5

)%

Total operating expenses

 

419,553

 

37.6

 

 

 

382,683

 

34.5

 

 

9.6

%

Operating income

 

66,317

 

5.9

 

 

 

84,772

 

7.7

 

 

(21.8

)%

Interest expense, net

 

189

 

 

 

 

1,246

 

0.2

 

 

(84.8

)%

Income before income taxes

 

66,128

 

5.9

 

 

 

83,526

 

7.5

 

 

(20.8

)%

Income tax expense

 

14,438

 

1.3

 

 

 

17,603

 

1.5

 

 

(18.0

)%

Net income

$

51,690

 

4.6

%

 

$

65,923

 

6.0

%

 

(21.6

)%

Basic weighted average shares outstanding

 

107,185

 

 

 

 

106,393

 

 

 

 

Diluted weighted average shares outstanding

 

108,292

 

 

 

 

108,002

 

 

 

 

Basic earnings per share

$

0.48

 

 

 

$

0.62

 

 

 

(22.6

)%

Diluted earnings per share

$

0.48

 

 

 

$

0.61

 

 

 

(21.3

)%

 

 

Thirty-nine Weeks Ended

 

 

 

September 26, 2024

 

September 28, 2023

 

% Increase

(Decrease)

 

Amount

 

% of Net Sales

 

Amount

 

% of Net Sales

 

Net sales

$

3,348,354

 

100.0

%

 

$

3,365,763

 

100.0

%

 

(0.5

)%

Cost of sales

 

1,901,424

 

56.8

 

 

 

1,949,557

 

57.9

 

 

(2.5

)%

Gross profit

 

1,446,930

 

43.2

 

 

 

1,416,206

 

42.1

 

 

2.2

%

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling and store operating

 

1,014,888

 

30.3

 

 

 

923,658

 

27.4

 

 

9.9

%

General and administrative

 

202,135

 

6.0

 

 

 

185,060

 

5.5

 

 

9.2

%

Pre-opening

 

32,951

 

1.0

 

 

 

32,226

 

1.0

 

 

2.2

%

Total operating expenses

 

1,249,974

 

37.3

 

 

 

1,140,944

 

33.9

 

 

9.6

%

Operating income

 

196,956

 

5.9

 

 

 

275,262

 

8.2

 

 

(28.4

)%

Interest expense, net

 

2,807

 

0.1

 

 

 

9,006

 

0.3

 

 

(68.8

)%

Income before income taxes

 

194,149

 

5.8

 

 

 

266,256

 

7.9

 

 

(27.1

)%

Income tax expense

 

35,761

 

1.1

 

 

 

57,357

 

1.7

 

 

(37.7

)%

Net income

$

158,388

 

4.7

%

 

$

208,899

 

6.2

%

 

(24.2

)%

Basic weighted average shares outstanding

 

107,000

 

 

 

 

106,187

 

 

 

 

Diluted weighted average shares outstanding

 

108,282

 

 

 

 

107,850

 

 

 

 

Basic earnings per share

$

1.48

 

 

 

$

1.97

 

 

 

(24.9

)%

Diluted earnings per share

$

1.46

 

 

 

$

1.94

 

 

 

(24.7

)%

 

Condensed Consolidated Balance Sheets

(In thousands, except for share and per share data)

(Unaudited)

 

 

As of September 26, 2024

 

As of December 28, 2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

180,771

 

 

$

34,382

Income taxes receivable

 

3,317

 

 

 

27,870

Receivables, net

 

104,351

 

 

 

99,513

Inventories, net

 

1,046,007

 

 

 

1,106,150

Prepaid expenses and other current assets

 

54,419

 

 

 

48,725

Total current assets

 

1,388,865

 

 

 

1,316,640

Fixed assets, net

 

1,763,980

 

 

 

1,629,917

Right-of-use assets

 

1,346,653

 

 

 

1,282,625

Intangible assets, net

 

151,119

 

 

 

153,869

Goodwill

 

257,940

 

 

 

257,940

Deferred income tax assets, net

 

16,635

 

 

 

14,227

Other assets

 

7,037

 

 

 

7,332

Total long-term assets

 

3,543,364

 

 

 

3,345,910

Total assets

$

4,932,229

 

 

$

4,662,550

Liabilities and stockholders’ equity

 

 

Current liabilities:

 

 

Current portion of term loan

$

2,103

 

 

$

2,103

Current portion of lease liabilities

 

134,629

 

 

 

126,428

Trade accounts payable

 

737,845

 

 

 

679,265

Accrued expenses and other current liabilities

 

305,971

 

 

 

332,940

Deferred revenue

 

12,472

 

 

 

11,277

Total current liabilities

 

1,193,020

 

 

 

1,152,013

Term loan

 

194,630

 

 

 

194,939

Lease liabilities

 

1,368,514

 

 

 

1,301,754

Deferred income tax liabilities, net

 

53,373

 

 

 

67,188

Other liabilities

 

11,637

 

 

 

15,666

Total long-term liabilities

 

1,628,154

 

 

 

1,579,547

Total liabilities

 

2,821,174

 

 

 

2,731,560

Stockholders’ equity

 

 

Capital stock:

 

 

Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at September 26, 2024 and December 28, 2023

 

 

 

 

Common stock Class A, $0.001 par value; 450,000,000 shares authorized; 107,223,985 shares issued and outstanding at September 26, 2024 and 106,737,532 issued and outstanding at December 28, 2023

 

107

 

 

 

107

Common stock Class B, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at September 26, 2024 and December 28, 2023

 

 

 

 

Common stock Class C, $0.001 par value; 30,000,000 shares authorized; 0 shares issued and outstanding at September 26, 2024 and December 28, 2023

 

 

 

 

Additional paid-in capital

 

536,238

 

 

 

513,060

Accumulated other comprehensive (loss) income, net

 

(79

)

 

 

1,422

Retained earnings

 

1,574,789

 

 

 

1,416,401

Total stockholders’ equity

 

2,111,055

 

 

 

1,930,990

Total liabilities and stockholders’ equity

$

4,932,229

 

 

$

4,662,550

 

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Thirty-nine Weeks Ended

 

September 26, 2024

 

September 28, 2023

Operating activities

 

 

 

Net income

$

158,388

 

$

208,899

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

Depreciation and amortization

 

172,690

 

 

146,947

 

Stock-based compensation expense

 

25,618

 

 

20,336

 

Deferred income taxes

 

(15,813

)

 

4,953

 

Loss on asset impairments and disposals, net

 

1,511

 

 

 

858

 

Change in fair value of contingent earn-out liabilities

 

(866

)

 

 

2,329

 

Interest cap derivative contracts

 

110

 

 

85

 

Changes in operating assets and liabilities, net of effects of acquisition:

 

Receivables, net

 

(4,838

)

 

2,931

 

Inventories, net

 

60,143

 

 

195,590

 

Trade accounts payable

 

60,747

 

 

109,338

 

Accrued expenses and other current liabilities

 

21,939

 

 

2,950

 

Income taxes

 

24,840

 

 

(8,912

)

Deferred revenue

 

1,195

 

 

3,323

 

Other, net

 

(3,896

)

 

9,348

 

Net cash provided by operating activities

 

501,768

 

 

698,975

 

Investing activities

 

 

Purchases of fixed assets

 

(349,360

)

 

(413,717

)

Acquisition, net of cash acquired

 

 

 

(17,353

)

Net cash used in investing activities

 

(349,360

)

 

 

(431,070

)

Financing activities

 

 

Payments on term loan

 

(1,577

)

 

(1,577

)

Borrowings on revolving line of credit

 

258,600

 

 

 

518,900

 

Payments on revolving line of credit

 

(258,600

)

 

 

(729,100

)

Payments of contingent earn-out liabilities

 

(2,002

)

 

 

(5,241

)

Proceeds from exercise of stock options

 

6,211

 

 

7,909

 

Proceeds from employee stock purchase plan

 

5,459

 

 

5,159

 

Tax payments for stock-based compensation awards

 

(14,110

)

 

 

(12,121

)

Net cash used in financing activities

 

(6,019

)

 

(216,071

)

Net increase in cash and cash equivalents

 

146,389

 

 

51,834

 

Cash and cash equivalents, beginning of the period

 

34,382

 

 

9,794

 

Cash and cash equivalents, end of the period

$

180,771

 

$

61,628

 

Supplemental disclosures of cash flow information

 

Buildings and equipment acquired under operating leases

$

167,135

 

$

192,906

 

Cash paid for interest, net of capitalized interest

$

3,959

 

$

8,871

 

Cash paid for income taxes, net of refunds

$

26,728

 

 

$

62,105

 

Fixed assets accrued at the end of the period

$

89,090

 

$

150,111

 

 

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

EBITDA and Adjusted EBITDA

 

 

Thirteen Weeks Ended

 

September 26, 2024

 

September 28, 2023

Net income (GAAP):

$

51,690

 

 

$

65,923

Depreciation and amortization (a)

 

57,328

 

 

 

50,336

Interest expense, net

 

189

 

 

 

1,246

Income tax expense

 

14,438

 

 

 

17,603

EBITDA

 

123,645

 

 

 

135,108

Stock-based compensation expense (b)

 

10,031

 

 

 

5,289

Other (c)

 

(779

)

 

 

542

Adjusted EBITDA

$

132,897

 

 

$

140,939

 

 

Thirty-nine Weeks Ended

 

September 26, 2024

 

September 28, 2023

Net income (GAAP):

$

158,388

 

 

$

208,899

Depreciation and amortization (a)

 

171,044

 

 

 

145,439

Interest expense, net

 

2,807

 

 

 

9,006

Income tax expense

 

35,761

 

 

 

57,357

EBITDA

 

368,000

 

 

 

420,701

Stock-based compensation expense (b)

 

25,618

 

 

 

20,336

Other (c)

 

(866

)

 

 

2,329

Adjusted EBITDA

$

392,752

 

 

$

443,366

 

(a)

Excludes amortization of deferred financing costs, which is included as part of interest expense, net in the table above.

(b)

Non-cash charges related to stock-based compensation programs, which vary from period to period depending on the timing of awards and forfeitures.

(c)

Other adjustments include amounts management does not consider indicative of our core operating performance. Amounts for both the thirteen and thirty-nine weeks ended September 26, 2024 and September 28, 2023 relate to changes in the fair value of contingent earn-out liabilities.

Forward-Looking Statements

This release and the associated webcast/conference call contain forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact contained in this release and the associated webcast/conference call, including statements regarding the Company’s future operating results and financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “budget,” “potential,” or “continue” or the negative of these terms or other similar expressions.

The forward-looking statements contained in this release and the associated webcast/conference call are based on our current expectations, assumptions, estimates, and projections regarding the Company’s business, the economy, and other future conditions, including the impact of natural disasters on sales. These statements involve known and unknown risks, uncertainties, and other important factors that may cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.

Although the Company believes that the expectations reflected in the forward-looking statements in this release and the associated webcast/conference call are reasonable, the Company cannot guarantee future events, results, performance or achievements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements in this release or the associated webcast/conference call, including, without limitation, (1) an overall decline in the health of the economy, the hard surface flooring industry, consumer confidence and discretionary spending, and the housing market, including as a result of persistently high or rising inflation or interest rates, (2) our failure to successfully manage the challenges that our planned new store growth poses or the impact of unexpected difficulties or higher costs during our expansion, (3) our inability to enter into leases for additional stores on acceptable terms or renew or replace our current store leases, (4) our failure to successfully anticipate and manage trends, consumer preferences, and demand, (5) our inability to successfully manage increased competition, (6) our inability to manage our inventory, including the impact of inventory obsolescence, shrinkage, and damage, (7) political and regulatory conditions that contribute to uncertainty and market volatility, including the upcoming U.S. presidential election and legislative, regulatory, trade and policies associated with a new administration, (8) any disruption in our distribution capabilities, supply chain, and our related planning and control processes, including carrier capacity constraints, port congestion or shut down, transportation costs, and other supply chain costs or product shortages, (9) any increases in wholesale prices of products, materials, and transportation costs beyond our control, including increases in costs due to inflation, (10) the resignation, incapacitation, or death of any key personnel, including our executive officers, (11) our inability to attract, hire, train, and retain highly qualified managers and staff, (12) the impact of any labor activities, (13) our dependence on foreign imports for the products we sell, including risks associated with obtaining products from abroad, (14) geopolitical risks, such as the conflict in the Middle East, the ongoing war in Ukraine, and U.S. policies related to global trade and tariffs, such as import restrictions under the Uyghur Forced Labor Prevention Act, or any antidumping and countervailing duties, any of which could impact our ability to import from foreign suppliers or raise our costs, (15) our ability to manage our comparable store sales, (16) any failure by any of our suppliers to supply us with quality products on attractive terms and prices or to adhere to the quality standards that we set for our products, (17) our inability to locate sufficient suitable natural products, (18) the effects of weather conditions, natural disasters, or other unexpected events, including public health crises, that may disrupt our operations, (19) our inability to maintain sufficient levels of cash flow or liquidity to fund our expanding business and service our existing indebtedness, (20) restrictions imposed by our indebtedness on our current and future operations, including risks related to our variable rate debt, (21) any allegations, investigations, lawsuits, or violations of laws and regulations applicable to us, our products, or our suppliers, (22) our inability to adequately protect the privacy and security of information related to our customers, us, our associates, our suppliers, and other third parties, (23) any material disruption in our information systems, including our website, (24) new or changing laws or regulations, including tax laws and trade policies and regulations, (25) any failure to protect our intellectual property rights or disputes regarding our intellectual property or the intellectual property of third parties, (26) the impact of any future strategic transactions, and (27) our ability to manage risks related to corporate social responsibility. Additional information concerning these and other factors are described in “Forward-Looking Statements,” Item 1, “Business,” Item 1A, “Risk Factors,” and Item 1C “Cybersecurity” of Part I and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 9A, “Controls and Procedures” of Part II of the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 22, 2024 (the “Annual Report”) and elsewhere in the Annual Report, as well as those described in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 26, 2024 (the “10-Q”) and elsewhere in the 10-Q, and those described in the Company’s other filings with the SEC.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The forward-looking statements contained in this release or the associated webcast/conference call speak only as of the date hereof. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company’s forward-looking statements occurs, the Company’s business, financial condition, and operating results may vary materially from those expressed in the Company’s forward-looking statements. Except as required by applicable law, the Company does not plan to publicly update or revise any forward-looking statements contained herein or in the associated webcast/conference call, whether as a result of any new information, future events, or otherwise.

Investor Contacts:

Wayne Hood

Senior Vice President of Investor Relations

678-505-4415

wayne.hood@flooranddecor.com

or

Matt McConnell

Senior Manager of Investor Relations

770-257-1374

matthew.mcconnell@flooranddecor.com

Source: Floor & Decor Holdings, Inc.

FAQ

What was Floor & Decor's (FND) comparable store sales growth in Q3 2024?

Floor & Decor reported a comparable store sales decrease of 6.4% in Q3 2024.

How many new stores did Floor & Decor (FND) open in Q3 2024?

Floor & Decor opened 11 new warehouse-format stores in Q3 2024, including eight openings in September.

What is Floor & Decor's (FND) updated sales guidance for fiscal 2024?

Floor & Decor updated its fiscal 2024 net sales guidance to approximately $4,400-4,430 million with comparable store sales between -8.5% to -7.5%.

What was Floor & Decor's (FND) earnings per share in Q3 2024?

Floor & Decor reported diluted earnings per share of $0.48 in Q3 2024, down 21.3% from $0.61 in Q3 2023.

Floor & Decor Holdings, Inc.

NYSE:FND

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Home Improvement Retail
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