Highlights for the Fourth Quarter of Fiscal 2020:
- Net sales increased 37.3% from the fourth quarter of fiscal
2019 to $723.7 million
- Comparable store sales increased 21.6% from the fourth
quarter of fiscal 2019
- Diluted earnings per share (“EPS”) increased 58.8% to $0.54
from $0.34 in the fourth quarter of fiscal 2019; Adjusted diluted
EPS* increased 80.8% to $0.47 from $0.26 in the fourth quarter of
fiscal 2019
Floor & Decor Holdings, Inc. (NYSE: FND) (“We,” “Our,” the
“Company,” or “Floor & Decor”) announces its financial results
for the fourth quarter and fiscal year ended December 31, 2020,
which included an additional week of operations (53rd week)
compared to the prior year. Tom Taylor, Chief Executive Officer,
stated, “We are very pleased with our fiscal 2020 fourth quarter
and full-year 2020 earnings results, which reflect exceptional
execution by our associates and their tireless efforts towards
serving our customers and each other during the COVID-19
pandemic.
"Driven by strong transactions and broad-based regional and
category growth, our fiscal 2020 fourth-quarter comparable store
sales increased 21.6%, the strongest quarterly growth rate of the
year. For the full year, our fiscal 2020 comparable store sales
increased 5.5%, a significant achievement considering the impact of
the COVID-19 pandemic on our store operations beginning in late
March. Our fiscal 2020 fourth quarter total net sales exceeded our
expectations, increasing $196.7 million to $723.7 million, an
increase of 37.3% from the fourth quarter of fiscal 2019. Our
fiscal 2020 fourth quarter adjusted EBITDA* also exceeded our
expectations improving to a record $97.6 million, an increase of
65.9% from the fourth quarter of fiscal 2019. We are encouraged by
our fiscal 2020 fourth quarter comparable store sales growth exit
rate and the strong start to fiscal 2021.”
Mr. Taylor continued, “We opened five new warehouse stores in
the fourth quarter of fiscal 2020, bringing the total number of
warehouse stores that we operate to 133 and two design studios in
31 states at the end of fiscal 2020. As we look to fiscal 2021, we
expect to open seven new warehouse stores in the first quarter of
fiscal 2021, more than double the three new warehouse stores we
opened in the first quarter of fiscal 2020. For the fiscal 2021
full year, we intend to return to 20% annual unit growth following
having to slow growth in 2020 due to the impact of the COVID-19
pandemic. We have planned for a strong and balanced quarterly store
opening pipeline of 27 new warehouse stores in fiscal 2021, an
increase of 20.3% from 2020.”
Our fiscal year is the 52- or 53-week period ending on the
Thursday on or preceding December 31. Our fiscal year ended
December 31, 2020 (fiscal 2020) included an additional week of
operations (53rd week) compared to the fiscal year ended December
26, 2019 (fiscal 2019) and the fiscal year ending December 30, 2021
(fiscal 2021). Please see “Comparable Store Sales” below for
information on how the Company calculates its comparable store
sales growth.
For the Fiscal Quarter Ended December 31, 2020
- Net sales increased 37.3% to $723.7 million from $527.0 million
in the fourth quarter of fiscal 2019.
- Comparable store sales increased 21.6%.
- The Company opened five new warehouse-format stores during the
fourth quarter of fiscal 2020, ending the quarter with 133
warehouse-format stores and two design studios.
- Operating income increased 61.5% to $68.0 million from $42.1
million in the fourth quarter of fiscal 2019. Operating margin
increased 140 basis points to 9.4%. The fourth quarter of fiscal
2019 included income of $14.0 million related to estimated tariff
refunds.
- Net income increased 61.7% to $57.1 million compared to $35.3
million in the fourth quarter of fiscal 2019. Diluted EPS was $0.54
compared to $0.34 in the fourth quarter of fiscal 2019, an increase
of 58.8%.
- Adjusted net income* increased 86.0% to $50.2 million compared
to $27.0 million in the fourth quarter of fiscal 2019. Adjusted
diluted EPS* was $0.47 compared to $0.26 in the fourth quarter of
fiscal 2019, an increase of 80.8%.
- Adjusted EBITDA* increased 65.9% to $97.6 million compared to
$58.8 million in the fourth quarter of fiscal 2019.
For the Fiscal Year Ended December 31, 2020
- Net sales increased 18.6% to $2,425.8 million from $2,045.5
million in fiscal 2019.
- Comparable store sales increased 5.5%.
- The Company opened 13 new warehouse-format stores and one
design studio.
- Operating income increased 34.8% to $214.6 million from $159.2
million in fiscal 2019. Operating margin increased 100 basis points
to 8.8%.
- Net income increased 29.4% to $195.0 million compared to $150.6
million in fiscal 2019. Diluted EPS was $1.84 compared to $1.44 in
fiscal 2019, an increase of 27.8%.
- Adjusted net income* increased 32.4% to $159.3 million compared
to $120.3 million in fiscal 2019. Adjusted diluted EPS* was $1.50
compared to $1.15 in fiscal 2019, an increase of 30.4%.
- Adjusted EBITDA* increased 33.1% to $323.0 million compared to
$242.6 million in fiscal 2019.
Estimated 53rd Week Impact
We estimate that the 53rd week added the following amounts in
fiscal 2020:
- Net sales of $41.8 million;
- Operating income of $8.5 million;
- Net income of $6.4 million and diluted EPS of $0.06;
- Adjusted EBITDA* of $8.8 million.
*Non-GAAP financial measures. Please see “Non-GAAP Financial
Measures” and “Reconciliation of GAAP to Non-GAAP Financial
Measures” below for more information.
Fiscal 2021 Outlook
The COVID-19 pandemic had a material negative impact on our
financial results during the first two quarters of fiscal 2020.
While our financial results improved during the second half of
fiscal 2020 relative to the first half of the year, the full impact
that the pandemic could have on the broader economy and our
business in fiscal 2021 remains highly uncertain. We continue to
monitor the situation closely with regards to our associates,
customers, business partners, and supply chain. However, given the
evolving nature of the pandemic and uncertainty regarding its
potential severity and duration, the full financial impact of the
pandemic on our business cannot be reasonably estimated at this
time, and we are planning for fiscal 2021 based on a range of
potential outcomes. Due to the continued uncertainty regarding the
ongoing impacts of the COVID-19 pandemic and the associated
complexity of forecasting, we are providing select annual guidance
for new store openings and certain other financial measures that we
believe we can reasonably forecast.
Outlook for the Fiscal Year (Fifty-two weeks) Ending December
30, 2021:
- Depreciation and amortization expense of approximately $116
million to $118 million
- Interest expense, net of approximately $5 million
- Tax rate of approximately 24%
- Diluted weighted average shares outstanding of approximately
107 million shares
- Open 27 new warehouse-format stores and two small design
studios
- Capital expenditures in the range of $440 million to $460
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 fourth quarter fiscal 2020
financial results is scheduled for today, February 25, 2021, 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 two hours following 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
13715433. The replay will be available until March 4, 2021.
About Floor & Decor Holdings, Inc.
Floor & Decor is a multi-channel specialty retailer
operating 133 warehouse-format stores and two design studios across
31 states at the end of the fourth quarter of fiscal 2020. The
Company offers a broad assortment of in-stock hard-surface
flooring, including tile, wood, laminate/luxury vinyl plank, and
natural stone along with decorative and installation accessories,
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, 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.
Non-GAAP Financial Measures
Adjusted net income, Adjusted diluted EPS, EBITDA and Adjusted
EBITDA (which are shown in the reconciliations 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
Adjusted net income as net income adjusted to eliminate the impact
of certain items that we do not consider indicative of our core
operating performance and the tax effect related to those items. We
define Adjusted diluted EPS as Adjusted net income divided by
weighted average shares outstanding. We define EBITDA as net income
before interest, loss (gain) on early extinguishment of debt,
taxes, depreciation and amortization. We define Adjusted EBITDA as
net income before interest, loss (gain) on early extinguishment of
debt, taxes, depreciation and amortization, adjusted to eliminate
the impact of 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 tables below.
Adjusted net income, Adjusted diluted EPS, 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 Adjusted net income, Adjusted diluted EPS, 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. Adjusted net income,
Adjusted diluted EPS, EBITDA and Adjusted EBITDA are also used by
analysts, investors and other interested parties as performance
measures to evaluate companies in our industry.
Adjusted net income, Adjusted diluted EPS, EBITDA and Adjusted
EBITDA are non-GAAP measures of our financial performance and
should not be considered as alternatives to net income or diluted
EPS 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,
Adjusted net income, 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 Adjusted net
income, Adjusted diluted EPS, EBITDA and Adjusted EBITDA, you
should be aware that in the future we will incur expenses that are
the same as or similar to some of the items eliminated in the
adjustments made to determine Adjusted net income, Adjusted diluted
EPS, EBITDA and Adjusted EBITDA, such as stock compensation
expense, loss on asset impairments and disposals, and other
adjustments. Our presentation of Adjusted net income, Adjusted
diluted EPS, 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 Adjusted net income,
Adjusted diluted EPS, EBITDA and Adjusted EBITDA differ among
companies in the retail industry, and therefore Adjusted net
income, Adjusted diluted EPS, 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.
Floor & Decor Holdings,
Inc.
Consolidated Statements of
Income
(In thousands, except per share data)
(Unaudited)
Fiscal Quarter Ended
December 31, 2020
December 26, 2019
% Increase
(Decrease)
Actual
% of Sales
Actual
% of Sales
Net sales
$
723,652
100.0
%
$
527,002
100.0
%
37.3%
Cost of sales
416,112
57.5
296,973
56.4
40.1
Gross profit
307,540
42.5
230,029
43.6
33.7
Operating expenses:
Selling and store operating
191,064
26.4
147,869
28.1
29.2
General and administrative
40,858
5.6
34,022
6.5
20.1
Pre-opening
7,604
1.1
6,014
1.1
26.4
Total operating expenses
239,526
33.1
187,905
35.7
27.5
Operating income
68,014
9.4
42,124
8.0
61.5
Interest expense, net
2,255
0.3
1,679
0.3
34.3
Income before income taxes
65,759
9.1
40,445
7.7
62.6
Provision for income taxes
8,619
1.2
5,104
1.0
68.9
Net income
$
57,140
7.9
%
$
35,341
6.7
%
61.7%
Basic weighted average shares
outstanding
103,755
101,177
Diluted weighted average shares
outstanding
106,799
105,383
Basic earnings per share
$
0.55
$
0.35
57.1%
Diluted earnings per share
$
0.54
$
0.34
58.8%
Fiscal Year Ended
December 31, 2020
December 26, 2019
% Increase
(Decrease)
Actual
% of Sales
Actual
% of Sales
Net sales
$
2,425,788
100.0
%
$
2,045,456
100.0
%
18.6%
Cost of sales
1,390,896
57.3
1,182,442
57.8
17.6
Gross profit
1,034,892
42.7
863,014
42.2
19.9
Operating expenses:
Selling and store operating
654,100
27.0
546,853
26.7
19.6
General and administrative
144,715
6.0
132,386
6.5
9.3
Pre-opening
21,498
0.9
24,594
1.2
(12.6)
Total operating expenses
820,313
33.8
703,833
34.4
16.5
Operating income
214,579
8.8
159,181
7.8
34.8
Interest expense, net
8,389
0.3
8,801
0.4
(4.7)
Gain on early extinguishment of debt
(1,015)
—
—
—
NM
Income before income taxes
207,205
8.5
150,380
7.4
37.8
Provision (benefit) for income taxes
12,224
0.5
(251)
—
NM
Net income
$
194,981
8.0
%
$
150,631
7.4
%
29.4%
Basic weighted average shares
outstanding
102,690
99,435
Diluted weighted average shares
outstanding
106,142
104,962
Basic earnings per share
$
1.90
$
1.51
25.8%
Diluted earnings per share
$
1.84
$
1.44
27.8%
NM – Not Meaningful
Consolidated Balance Sheets
(In thousands, except share and per share
data)
(Unaudited)
As of December 31,
2020
As of December 26,
2019
Assets
Current assets:
Cash and cash equivalents
$
307,772
$
27,037
Income taxes receivable
—
2,868
Receivables, net
50,427
69,301
Inventories, net
654,000
581,865
Prepaid expenses and other current
assets
28,257
20,415
Total current assets
1,040,456
701,486
Fixed assets, net
579,359
456,289
Right-of-use assets
916,325
822,256
Intangible assets, net
109,269
109,299
Goodwill
227,447
227,447
Other assets
7,569
7,532
Total long-term assets
1,839,969
1,622,823
Total assets
$
2,880,425
$
2,324,309
Liabilities and stockholders’
equity
Current liabilities:
Current portion of term loan
$
1,647
$
—
Current portion of lease liabilities
94,502
74,592
Trade accounts payable
417,898
368,459
Accrued expenses and other current
liabilities
162,283
102,807
Income taxes payable
12,391
—
Deferred revenue
10,115
6,683
Total current liabilities
698,836
552,541
Term loans
207,157
142,606
Lease liabilities
941,125
844,269
Deferred income tax liabilities, net
27,990
18,378
Other liabilities
7,929
2,179
Total long-term liabilities
1,184,201
1,007,432
Total liabilities
1,883,037
1,559,973
Stockholders’ equity
Capital stock:
Preferred stock, $0.001 par value;
10,000,000 shares authorized; 0 shares issued and outstanding at
December 31, 2020 and December 26, 2019
—
—
Common stock Class A, $0.001 par value;
450,000,000 shares authorized; 104,368,212 shares issued and
outstanding at December 31, 2020 and 101,457,858 issued and
outstanding at December 26, 2019
104
101
Common stock Class B, $0.001 par value;
10,000,000 shares authorized; 0 shares issued and outstanding at
December 31, 2020 and December 26, 2019
—
—
Common stock Class C, $0.001 par value;
30,000,000 shares authorized; 0 shares issued and outstanding at
December 31, 2020 and December 26, 2019
—
—
Additional paid-in capital
408,124
370,413
Accumulated other comprehensive income
(loss), net
164
(193)
Retained earnings
588,996
394,015
Total stockholders’ equity
997,388
764,336
Total liabilities and stockholders’
equity
$
2,880,425
$
2,324,309
Consolidated Statements of Cash
Flows
(In thousands)
(Unaudited)
Fiscal Year Ended
December 31, 2020
December 26, 2019
Operating activities
Net income
$
194,981
$
150,631
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
91,640
74,001
Gain on early extinguishment of debt
(1,015)
—
Loss on asset impairments and disposals,
net
14
4,111
Operating lease termination
—
1,926
Deferred income taxes
9,614
(10,584)
Interest cap derivative contracts
372
446
Stock-based compensation expense
16,115
8,711
Changes in operating assets and
liabilities:
Receivables, net
18,874
(17,850)
Inventories, net
(72,135)
(110,851)
Trade accounts payable
49,439
54,956
Accrued expenses and other current
liabilities
59,017
20,744
Income taxes
15,264
3,894
Deferred revenue
3,432
1,439
Other, net
20,552
23,084
Net cash provided by operating
activities
406,164
204,658
Investing activities
Purchases of fixed assets
(212,448)
(196,008)
Net cash used in investing activities
(212,448)
(196,008)
Financing activities
Borrowings on revolving line of credit
275,000
100,100
Payments on revolving line of credit
(275,000)
(100,100)
Proceeds from term loans
75,000
—
Payments on term loans
(2,697)
(3,500)
Proceeds from exercise of stock
options
19,254
18,798
Debt issuance costs
(6,882)
—
Proceeds from employee stock purchase
plan
2,344
2,445
Net cash provided by (used in) financing
activities
87,019
17,743
Net increase in cash and cash
equivalents
280,735
26,393
Cash and cash equivalents, beginning of
the period
27,037
644
Cash and cash equivalents, end of the
period
$
307,772
$
27,037
Supplemental disclosures of cash flow
information
Buildings and equipment acquired under
operating leases
$
177,932
$
277,392
Cash paid for interest, net of capitalized
interest
$
8,043
$
7,388
Cash paid for income taxes, net of
refunds
$
12,670
$
6,453
Fixed assets accrued at the end of the
period
$
19,987
$
19,527
Reconciliation of GAAP to Non-GAAP
Financial Measures
(In thousands, except EPS)
(Unaudited)
Adjusted net income and Adjusted
diluted EPS
Fiscal Quarter Ended
12/31/2020
12/26/2019
Net income (GAAP):
$
57,140
$
35,341
COVID-19 costs (a)
80
—
Secondary offering costs (b)
—
60
Tariff refunds (d)
274
(8,483
)
Store support center relocation and
distribution center closure (f)
346
2,448
Tax benefit of stock option exercises
(h)
(7,800
)
(3,797
)
Tax impact of adjustments to net income
(j)
121
1,406
Adjusted net income
$
50,161
$
26,975
Diluted weighted average shares
outstanding
106,799
105,383
Adjusted diluted EPS
$
0.47
$
0.26
Fiscal Year Ended
12/31/2020
12/26/2019
Net income (GAAP):
$
194,981
$
150,631
COVID-19 costs (a)
3,562
—
Secondary offering costs (b)
785
708
Debt modification expense (c)
722
—
Tariff refunds (d)
(4,304
)
(8,483
)
Gain on early extinguishment of debt
(e)
(1,015
)
—
Store support center relocation and
distribution center closure (f)
346
7,832
Operating lease right-of-use asset
impairment (g)
—
4,136
Tax benefit of stock option exercises
(h)
(30,771
)
(33,808
)
Tax benefit due to CARES Act (i)
(7,676
)
—
Tax impact of adjustments to net income
(j)
2,683
(684
)
Adjusted net income
$
159,313
$
120,332
Diluted weighted average shares
outstanding
106,142
104,962
Adjusted diluted EPS
$
1.50
$
1.15
(a)
Amounts are comprised of sanitation,
personal protective equipment, and other costs directly related to
disruptions caused by or efforts to mitigate the impact of the
COVID-19 pandemic on our business.
(b)
Amounts relate to costs associated with
secondary public offerings of the Company’s Class A common stock by
certain of our stockholders. The Company did not sell any shares or
receive any proceeds from the sale of shares by the selling
stockholders.
(c)
Represents legal fees incurred in
connection with the February 2020 amendment to the senior secured
term loan credit facility.
(d)
Represents income and adjustments for
estimated tariff refunds recognized for certain bamboo and other
flooring products in fiscal 2020. In fiscal 2019, represents income
for the portion of expected tariff refunds related to products sold
prior to November 20, 2019, the date on which U.S. Customs issued
Chapter 99 tariff exclusions for certain of our click-vinyl and
engineered flooring products, net of a resulting increase to
incentive compensation.
(e)
Represents gain on partial debt
extinguishment due to the May 2020 amendment to the senior secured
term loan credit facility.
(f)
Amounts in fiscal 2020 are related to the
relocation of our Houston distribution center. Amounts in fiscal
2019 are related to the relocation of our store support center and
the closure of our Miami distribution center.
(g)
Impairment loss for the operating lease
right-of-use asset related to our former store support center in
Smyrna, Georgia.
(h)
Tax benefit due to stock option
exercises.
(i)
Represents income tax benefit recognized
due to the enactment of the Coronavirus Aid, Relief, and Economic
Security Act (“CARES Act”), which resulted in a fiscal 2019 tax net
operating loss carryback to prior years in which the federal tax
rate of 35% was higher than the current federal tax rate of
21%.
(j)
Tax adjustments for pre-tax adjustments
above and tax reserves, including for uncertain tax positions,
related to prior years.
EBITDA and Adjusted EBITDA
Fiscal Quarter Ended
12/31/2020
12/26/2019
Net income (GAAP):
$
57,140
$
35,341
Depreciation and amortization (a)
24,290
20,568
Interest expense, net
2,255
1,679
Income tax expense
8,619
5,104
EBITDA
92,304
62,692
Stock compensation expense (c)
4,573
2,051
COVID-19 costs (d)
80
—
Tariff refunds (e)
356
(8,148
)
Other (g)
272
2,221
Adjusted EBITDA
$
97,585
$
58,816
Fiscal Year Ended
12/31/2020
12/26/2019
Net income (GAAP):
$
194,981
$
150,631
Depreciation and amortization (a)
90,520
73,019
Interest expense, net
8,389
8,801
Gain on early extinguishment of debt
(b)
(1,015
)
—
Income tax expense (benefit)
12,224
(251
)
EBITDA
305,099
232,200
Stock compensation expense (c)
16,115
8,711
COVID-19 costs (d)
3,562
—
Tariff refunds (e)
(3,660
)
(8,148
)
Loss on asset impairments and disposals,
net (f)
—
4,111
Other (g)
1,879
5,749
Adjusted EBITDA
$
322,995
$
242,623
(a)
Excludes amortization of deferred
financing costs, which is included as a part of interest expense,
net in the table above.
(b)
Represents gain on partial debt
extinguishment in connection with the May 2020 amendment to the
senior secured term loan credit facility.
(c)
Non-cash charges related to stock-based
compensation programs, which vary from period to period depending
on the timing of awards and forfeitures.
(d)
Amounts are comprised of sanitation,
personal protective equipment, and other costs directly related to
disruptions caused by or efforts to mitigate the impact of the
COVID-19 pandemic on our business.
(e)
Represents income and adjustments for
estimated tariff refunds recognized for certain bamboo and other
flooring products in fiscal 2020. In fiscal 2019, represents income
for the portion of expected tariff refunds related to products sold
prior to November 20, 2019, the date on which U.S. Customs issued
Chapter 99 tariff exclusions for certain of our click-vinyl and
engineered flooring products, net of a resulting increase to
incentive compensation. Interest income for tariff refunds is
included within interest expense, net in the table above.
(f)
Amount primarily represents impairment
loss for the operating lease right-of-use asset related to our
former store support center in Smyrna, Georgia.
(g)
Other adjustments include amounts
management does not consider indicative of our core operating
performance. Amounts for fiscal 2020 primarily relate to relocation
expenses for our Houston distribution center, costs associated with
two secondary public offerings of the Company’s Class A common
stock by certain of our stockholders, and legal fees associated
with the February 2020 amendment to our senior secured term loan
credit facility. Amounts for fiscal 2019 primarily relate to costs
associated with the secondary public offering of our Class A common
stock by certain of our stockholders, the relocation of our store
support center in Smyrna, Georgia, and the closure of our Miami
distribution center. The Company did not sell any shares in the
offerings and did not receive any proceeds from the sale of shares
by the selling stockholders.
Forward-Looking Statements
This release and the associated webcast/conference call contain
forward-looking statements, including with respect to the Company’s
estimated store count, new stores, depreciation and amortization
expenses, interest expense, tax rate, diluted weighted average
shares outstanding, and capital expenditures. All statements other
than statements of historical fact contained in this release,
including statements regarding the Company’s future operating
results and financial position, business strategy and plans,
objectives of management for future operations and the impact of
the COVID-19 pandemic, are forward-looking statements. These
statements are based on our current expectations, assumptions,
estimates and projections. 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. Forward-looking statements are based on management’s
current expectations and assumptions regarding the Company’s
business, the economy and other future conditions, including the
impact of the COVID-19 pandemic.
In some cases, you can identify forward-looking statements by
terms such as “may,” “will,” “should,” “expects,” “intends,”
“plans,” “anticipates,” “could,” “seeks,” “intends,” “target,”
“projects,” “contemplates,” “believes,” “estimates,” “predicts,”
“budget,” “potential,” “focused on” or “continue” or the negative
of these terms or other similar expressions. The forward-looking
statements contained in this release are only predictions. Although
the Company believes that the expectations reflected in the
forward-looking statements in this release 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, those
factors described in “Forward-Looking Statements,” Item 1,
“Business” and Item 1A, “Risk Factors” 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 for fiscal 2020 filed with
the Securities and Exchange Commission (the “SEC”) on February 25,
2021 (the “Annual Report”) and elsewhere in the Annual Report, 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, including the Company’s
estimated store count, new stores, depreciation and amortization
expenses, interest expense, tax rate, diluted weighted average
shares outstanding, and capital expenditures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210225006005/en/
Investor Contacts: Wayne Hood 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
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