Floor & Decor Holdings, Inc. Announces Third Quarter Fiscal 2024 Financial Results
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)%.
- 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
- 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.
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
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
Net sales of
Comparable store sales decreased
Diluted earnings per share of
Opened 11 new warehouse stores
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
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
increased$1,117.9 million 0.9% from in the third quarter of fiscal 2023.$1,107.8 million -
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
decreased$66.3 million 21.8% from in the third quarter of fiscal 2023. Operating margin of$84.8 million 5.9% decreased 180 basis points from the third quarter of fiscal 2023. -
Net income of
decreased$51.7 million 21.6% from in the third quarter of fiscal 2023. Diluted earnings per share (“EPS”) of$65.9 million decreased$0.48 21.3% from in the third quarter of fiscal 2023.$0.61 -
Adjusted EBITDA* of
decreased$132.9 million 5.7% from in the third quarter of fiscal 2023.$140.9 million
For the Thirty-nine Weeks Ended September 26, 2024
-
Net sales of
decreased$3,348.4 million 0.5% from in the same period of fiscal 2023.$3,365.8 million -
Comparable store sales decreased
9.0% . - We opened 20 new warehouse stores.
-
Operating income of
decreased$197.0 million 28.4% from in the same period of fiscal 2023. Operating margin of$275.3 million 5.9% decreased 230 basis points from the same period of fiscal 2023. -
Net income of
decreased$158.4 million 24.2% from in the same period of fiscal 2023. Diluted EPS of$208.9 million decreased$1.46 24.7% from in the same period of fiscal 2023.$1.94 -
Adjusted EBITDA* of
decreased$392.8 million 11.4% from in the same period of fiscal 2023.$443.4 million
*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
to$4,400 million $4,430 million - Comparable store sales of approximately (8.5)% to (7.5)%
-
Diluted EPS of approximately
to$1.65 $1.75 -
Adjusted EBITDA* of approximately
to$490 million $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
to$360 million $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
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
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, |
|
— |
|
|
|
— |
|
Common stock Class A, |
|
107 |
|
|
|
107 |
|
Common stock Class B, |
|
— |
|
|
|
— |
|
Common stock Class C, |
|
— |
|
|
|
— |
|
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
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030358030/en/
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
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