- Net sales increased 86.0% from the second quarter of fiscal
2020 to $860.1 million.
- Comparable store sales increased 68.4% from the second
quarter of fiscal 2020.
- Diluted earnings per share (“EPS”) increased 156.7% to $0.77
from $0.30 in the second quarter of fiscal 2020; Adjusted diluted
EPS* increased 461.5% to $0.73 from $0.13 in the second quarter of
fiscal 2020.
- Completed acquisition of Spartan Surfaces, Inc.
Floor & Decor Holdings, Inc. (NYSE: FND) (“We,” “Our,” the
“Company,” or “Floor & Decor”) announces record financial
results for the second quarter of fiscal 2021, which ended July 1,
2021.
Tom Taylor, Chief Executive Officer, stated, “We are thrilled
with our record fiscal 2021 second-quarter and year-to-date
financial results. We believe that our strong execution and growing
brand awareness coupled with the favorable economic environment
drove record sales and profitability in our year-to-date fiscal
2021 results. We are excited about being on a path towards
delivering our 13th consecutive year of positive comparable store
sales growth in fiscal 2021, driven by both new and returning
customers. We are particularly pleased that our strong year-to-date
fiscal 2021 results enabled us to reinvest back into our associates
with a broad market wage increase that benefited many of our store
associates. We continue to believe that sharing our success with
our associates and providing them with clear paths of growth is
essential to the success of our company.”
Mr. Taylor continued, “Year-to-date, we have successfully opened
14 new warehouse stores and intend to open six new warehouse stores
in the third quarter of fiscal 2021 towards our planned 27 new
warehouse store openings in fiscal 2021, representing 20.3% growth
from fiscal 2020. Our strong results in fiscal 2021 reinforce our
belief that the new store classes of 2020 and 2021 will likely
represent the strongest first-year sales and profit classes in our
history.”
Please see “Comparable Store Sales” below for information on how
the Company calculates its comparable store sales growth.
For the Thirteen Weeks Ended July 1, 2021
- Net sales increased 86.0% to $860.1 million from $462.4 million
in the second quarter of fiscal 2020.
- Comparable store sales increased 68.4%.
- We opened seven new warehouse-format stores during the second
quarter of fiscal 2021, ending the quarter with 147
warehouse-format stores and two design studios.
- Operating income increased 367.3% to $98.6 million from $21.1
million in the second quarter of fiscal 2020. Operating margin
increased 690 basis points to 11.5%.
- Net income increased 159.1% to $82.9 million compared to $32.0
million in the second quarter of fiscal 2020. Diluted EPS was $0.77
compared to $0.30 in the second quarter of fiscal 2020, an increase
of 156.7%.
- Adjusted net income* increased 485.5% to $78.3 million compared
to $13.4 million in the second quarter of fiscal 2020. Adjusted
diluted EPS* was $0.73 compared to $0.13 in the second quarter of
fiscal 2020, an increase of 461.5%.
- Adjusted EBITDA* increased 200.8% to $137.0 million compared to
$45.6 million in the second quarter of fiscal 2020.
For the Twenty-six Weeks Ended July 1, 2021
- Net sales increased 61.5% to $1,642.6 million from $1,017.3
million in the same period of fiscal 2020.
- Comparable store sales increased 48.1%.
- We opened fourteen new stores during the twenty-six weeks ended
July 1, 2021.
- Operating income increased 187.0% to $194.5 million from $67.8
million in the same period of fiscal 2020. Operating margin
increased 510 basis points to 11.8%.
- Net income increased 129.8% to $158.7 million compared to $69.1
million in the same period of fiscal 2020. Diluted EPS was $1.48
compared to $0.65 in the same period of fiscal 2020, an increase of
127.7%.
- Adjusted net income* increased 203.9% to $151.0 million
compared to $49.7 million in the same period of fiscal 2020.
Adjusted diluted EPS* was $1.41 compared to $0.47 in the same
period of fiscal 2020, an increase of 200.0%.
- Adjusted EBITDA* increased 122.5% to $264.1 million compared to
$118.7 million in the same period of fiscal 2020.
Spartan Acquisition
On June 4, 2021, we completed our acquisition of Spartan
Surfaces, Inc. ("Spartan"), a commercial specialty hard-surface
flooring distribution company. Spartan’s results of operations,
financial position, and cash flows have been consolidated in the
Company’s consolidated financial statements since the date of
acquisition. Net sales and net earnings for fiscal 2021
attributable to Spartan since the completion of the acquisition
were immaterial. Results of operations would not be materially
different as a result of the acquisition and therefore pro forma
information is not presented.
*Non-GAAP financial measures. Please see “Non-GAAP Financial
Measures” and “Reconciliation of GAAP to Non-GAAP Financial
Measures” below for more information.
The COVID-19 Pandemic Impact on Floor & Decor's
Business
The COVID-19 pandemic had a material negative impact on our
financial results during the first half of fiscal 2020. While our
financial results during the second half of fiscal 2020 and the
first half of fiscal 2021 have been strong, the full impact that
the pandemic could have on our business remains highly
uncertain.
We continue to monitor the impact of the COVID-19 pandemic on
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 COVID-19 pandemic on our business cannot be
reasonably estimated at this time. The extent of the impact of the
COVID-19 pandemic on our business and financial results will depend
on future developments, including the duration of the COVID-19
pandemic, the success of vaccination programs, the spread of
COVID-19 within the markets in which we operate, the impact to
countries from which we source inventory, fixed assets, and other
supplies, the effect of the pandemic on consumer confidence and
spending, and actions taken by government entities in response to
the pandemic, all of which are highly uncertain. Due to the
continued uncertainty regarding the ongoing impacts of the COVID-19
pandemic and the associated complexity of forecasting, we are
updating select annual guidance for new store openings and certain
other financial measures that we believe we can reasonably
forecast.
Updated Outlook for the Fiscal Year Ending December 30,
2021:
- Depreciation and amortization expense of approximately $115
million to $117 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 approximately $455 million
to $475 million
Conference Call Details
A conference call to discuss the second quarter fiscal 2021
financial results is scheduled for today, August 5, 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 will be available
within two hours of 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 10158275. The replay will be
available until August 12, 2021.
About Floor & Decor Holdings, Inc.
Floor & Decor is a multi-channel specialty retailer and
commercial flooring distributor operating 147 warehouse-format
stores and two design studios across 33 states at the end of the
second quarter of fiscal 2021. The Company offers a broad
assortment of in-stock hard-surface flooring, including tile, wood,
laminate, vinyl, 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 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 subsidiary do
not involve our stores and are therefore excluded from the
comparable store sales calculation.
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)
Thirteen Weeks Ended
July 1, 2021
June 25, 2020
% Increase
(Decrease)
Actual
% of Sales
Actual
% of Sales
Net sales
$
860,108
100.0
%
$
462,352
100.0
%
86.0
%
Cost of sales
494,670
57.5
265,660
57.5
86.2
Gross profit
365,438
42.5
196,692
42.5
85.8
Operating expenses:
Selling and store operating
205,072
23.8
138,457
29.9
48.1
General and administrative
52,819
6.1
33,713
7.3
56.7
Pre-opening
8,990
1.0
3,433
0.7
161.9
Total operating expenses
266,881
30.9
175,603
37.9
52.0
Operating income
98,557
11.5
21,089
4.6
367.3
Interest expense, net
1,293
0.2
2,303
0.5
(43.9
)
Gain on early extinguishment of debt
—
—
(1,015
)
(0.2
)
NM
Income before income taxes
97,264
11.3
19,801
4.3
391.2
Provision (benefit) for income taxes
14,348
1.7
(12,203
)
(2.6
)
217.6
Net income
$
82,916
9.6
%
$
32,004
6.9
%
159.1
%
Basic weighted average shares
outstanding
104,544
102,114
Diluted weighted average shares
outstanding
107,265
105,466
Basic earnings per share
$
0.79
$
0.31
154.8
%
Diluted earnings per share
$
0.77
$
0.30
156.7
%
Twenty-six Weeks Ended
July 1, 2021
June 25, 2020
% Increase
(Decrease)
Actual
% of Sales
Actual
% of Sales
Net sales
$
1,642,645
100.0
%
$
1,017,289
100.0
%
61.5
%
Cost of sales
940,274
57.2
584,565
57.5
60.9
Gross profit
702,371
42.8
432,724
42.5
62.3
Operating expenses:
Selling and store operating
395,018
24.0
291,523
28.7
35.5
General and administrative
96,860
5.9
64,571
6.3
50.0
Pre-opening
15,987
1.0
8,867
0.9
80.3
Total operating expenses
507,865
30.9
364,961
35.9
39.2
Operating income
194,506
11.8
67,763
6.7
187.0
Interest expense, net
2,681
0.2
4,110
0.4
(34.8
)
Gain on early extinguishment of debt
—
—
(1,015
)
(0.1
)
NM
Income before income taxes
191,825
11.7
64,668
6.4
196.6
Provision (benefit) for income taxes
33,113
2.0
(4,399
)
(0.4
)
852.7
Net income
$
158,712
9.7
%
$
69,067
6.8
%
129.8
%
Basic weighted average shares
outstanding
104,309
101,872
Diluted weighted average shares
outstanding
107,186
105,476
Basic earnings per share
$
1.52
$
0.68
123.5
%
Diluted earnings per share
$
1.48
$
0.65
127.7
%
Consolidated Balance Sheets
(In thousands, except share and per share
data)
(Unaudited)
As of July 1, 2021
As of December 31,
2020
Assets
Current assets:
Cash and cash equivalents
$
366,093
$
307,772
Receivables, net
72,804
50,427
Inventories, net
683,811
654,000
Prepaid expenses and other current
assets
42,733
28,257
Total current assets
1,165,441
1,040,456
Fixed assets, net
727,108
579,359
Right-of-use assets
1,055,246
916,325
Intangible assets, net
153,422
109,269
Goodwill
255,473
227,447
Other assets
7,605
7,569
Total long-term assets
2,198,854
1,839,969
Total assets
$
3,364,295
$
2,880,425
Liabilities and stockholders’
equity
Current liabilities:
Current portion of term loans
$
2,103
$
1,647
Revolving line of credit
3,366
—
Current portion of lease liabilities
86,110
94,502
Trade accounts payable
529,220
417,898
Accrued expenses and other current
liabilities
212,466
162,283
Income taxes payable
3,850
12,391
Deferred revenue
23,099
10,115
Total current liabilities
860,214
698,836
Term loans
195,443
207,157
Lease liabilities
1,077,456
941,125
Deferred income tax liabilities, net
34,510
27,990
Other liabilities
17,070
7,929
Total long-term liabilities
1,324,479
1,184,201
Total liabilities
2,184,693
1,883,037
Stockholders’ equity
Capital stock:
Preferred stock, $0.001 par value;
10,000,000 shares authorized; 0 shares issued and outstanding at
July 1, 2021 and December 31, 2020
—
—
Common stock Class A, $0.001 par value;
450,000,000 shares authorized; 105,111,284 shares issued and
outstanding at July 1, 2021 and 104,368,212 issued and outstanding
at December 31, 2020
105
104
Common stock Class B, $0.001 par value;
10,000,000 shares authorized; 0 shares issued and outstanding at
July 1, 2021 and December 31, 2020
—
—
Common stock Class C, $0.001 par value;
30,000,000 shares authorized; 0 shares issued and outstanding at
July 1, 2021 and December 31, 2020
—
—
Additional paid-in capital
431,549
408,124
Accumulated other comprehensive income,
net
240
164
Retained earnings
747,708
588,996
Total stockholders’ equity
1,179,602
997,388
Total liabilities and stockholders’
equity
$
3,364,295
$
2,880,425
Consolidated Statements of Cash
Flows
(In thousands)
(Unaudited)
Twenty-six Weeks Ended
July 1, 2021
June 25, 2020
Operating activities
Net income
$
158,712
$
69,067
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
54,097
44,389
Stock-based compensation expense
10,053
7,142
Deferred income taxes
6,520
20,552
Interest cap derivative contracts
76
170
Gain on early extinguishment of debt
—
(1,015
)
Gain on asset impairments and disposals,
net
—
(29
)
Changes in operating assets and
liabilities, net of effects of acquisition:
Receivables, net
(11,109
)
15,183
Inventories, net
(25,338
)
(12,404
)
Trade accounts payable
105,103
(42,427
)
Accrued expenses and other current
liabilities
(19,065
)
258
Income taxes
(8,541
)
(25,100
)
Deferred revenue
11,765
1,704
Other, net
(25,656
)
19,215
Net cash provided by operating
activities
256,617
96,705
Investing activities
Purchases of fixed assets
(132,091
)
(65,994
)
Acquisition, net of cash acquired
(63,354
)
—
Net cash used in investing activities
(195,445
)
(65,994
)
Financing activities
Borrowings on revolving line of credit
4,453
275,000
Payments on revolving line of credit
(3,592
)
(275,000
)
Proceeds from term loans
65,000
75,000
Payments on term loans
(75,676
)
(1,237
)
Proceeds from exercise of stock
options
6,326
8,660
Proceeds from employee stock purchase
plan
3,063
1,131
Debt issuance costs
(1,409
)
(6,882
)
Tax payments for stock-based compensation
awards
(1,016
)
—
Net cash (used in) provided by financing
activities
(2,851
)
76,672
Net increase in cash and cash
equivalents
58,321
107,383
Cash and cash equivalents, beginning of
the period
307,772
27,037
Cash and cash equivalents, end of the
period
$
366,093
$
134,420
Supplemental disclosures of cash flow
information
Buildings and equipment acquired under
operating leases
$
185,349
$
91,670
Cash paid for interest, net of capitalized
interest
$
1,340
$
3,486
Cash paid for income taxes, net of
refunds
$
35,118
$
147
Fixed assets accrued at the end of the
period
$
101,708
$
22,631
Reconciliation of GAAP to Non-GAAP
Financial Measures
(In thousands, except EPS)
(Unaudited)
Adjusted net income and Adjusted
diluted EPS
Thirteen Weeks Ended
July 1, 2021
June 25, 2020
Net income (GAAP):
$
82,916
$
32,004
Acquisition and integration expense
(a)
3,166
—
Tariff refund adjustments (b)
1,703
(3,928
)
Distribution center relocation (c)
475
—
COVID-19 costs (d)
408
1,601
Secondary offering costs (f)
—
252
Gain on early extinguishment of debt
(g)
—
(1,015
)
Tax benefit of stock-based compensation
awards (h)
(8,953
)
(8,992
)
Tax benefit of CARES Act (i)
—
(7,676
)
Tax impact of adjustments to net income
(j)
(1,400
)
1,129
Adjusted net income
$
78,315
$
13,375
Diluted weighted average shares
outstanding
107,265
105,466
Adjusted diluted EPS
$
0.73
$
0.13
Twenty-six Weeks Ended
July 1, 2021
June 25, 2020
Net income (GAAP):
$
158,712
$
69,067
Acquisition and integration expense
(a)
3,166
—
Tariff refund adjustments (b)
1,631
(4,578
)
Distribution center relocation (c)
955
—
COVID-19 costs (d)
624
2,911
Debt modification expense (e)
171
722
Secondary offering costs (f)
—
519
Gain on early extinguishment of debt
(g)
—
(1,015
)
Tax benefit of stock-based compensation
awards (h)
(12,625
)
(13,276
)
Tax benefit of CARES Act (i)
—
(7,676
)
Tax impact of adjustments to net income
(j)
(1,592
)
3,035
Adjusted net income
$
151,042
$
49,709
Diluted weighted average shares
outstanding
107,186
105,476
Adjusted diluted EPS
$
1.41
$
0.47
(a)
Represents acquisition and integration
expenses incurred related to the acquisition of Spartan.
(b)
Represents a reduction in estimated tariff
refund receivables during the thirteen and twenty-six weeks ended
July 1, 2021. During the thirteen and twenty-six weeks ended June
25, 2020, represents income for incremental tariff refunds
recognized for certain bamboo and other flooring products.
(c)
Represents amounts related to the
relocation of our Houston distribution center.
(d)
Amounts are comprised of sanitation,
personal protective equipment, and other costs that directly
related to efforts to mitigate the impact of the COVID-19 pandemic
on our business.
(e)
Represents legal fees incurred in
connection with amendments to the senior secured term loan credit
facility.
(f)
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.
(g)
Represents gain on partial debt
extinguishment due to the May 2020 amendment to the senior secured
term loan credit facility.
(h)
Tax benefit resulting from stock option
exercises and the vesting of restricted stock and restricted stock
units.
(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
(In thousands)
(Unaudited)
Thirteen Weeks Ended
July 1, 2021
June 25, 2020
Net income (GAAP):
$
82,916
$
32,004
Depreciation and amortization (a)
27,377
21,991
Interest expense, net
1,293
2,303
Gain on early extinguishment of debt
(b)
—
(1,015
)
Income tax expense (benefit)
14,348
(12,203
)
EBITDA
125,934
43,080
Stock-based compensation expense (c)
5,319
4,234
Acquisition and integration expense
(d)
3,166
—
Tariff refund adjustments (e)
1,728
(3,615
)
COVID-19 costs (f)
408
1,601
Other (g)
469
255
Adjusted EBITDA
$
137,024
$
45,555
Twenty-six Weeks Ended
July 1, 2021
June 25, 2020
Net income (GAAP):
$
158,712
$
69,067
Depreciation and amortization (a)
52,897
43,664
Interest expense, net
2,681
4,110
Gain on early extinguishment of debt
(b)
—
(1,015
)
Income tax expense (benefit)
33,113
(4,399
)
EBITDA
247,403
111,427
Stock-based compensation expense (c)
10,053
7,142
Acquisition and integration expense
(d)
3,166
—
Tariff refund adjustments (e)
1,728
(4,016
)
COVID-19 costs (f)
624
2,911
Other (g)
1,125
1,217
Adjusted EBITDA
$
264,099
$
118,681
(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)
Represents acquisition and integration
expenses incurred related to the acquisition of Spartan.
(e)
Represents a reduction in estimated tariff
refund receivables during the thirteen weeks ended July 1, 2021.
During the thirteen weeks ended June 25, 2020, represents income
for incremental tariff refunds recognized for certain bamboo and
other flooring products. Interest income for tariff refunds is
included within interest expense, net in the table above.
(f)
Amounts are comprised of sanitation,
personal protective equipment, and other costs that directly
related to efforts to mitigate the impact of the COVID-19 pandemic
on our business.
(g)
Other adjustments include amounts
management does not consider indicative of our core operating
performance. Amounts for the thirteen weeks ended July 1, 2021
primarily relate to relocation expenses for our Houston
distribution center, and amounts for the twenty-six weeks ended
July 1, 2021 primarily relate to relocation expenses for our
Houston distribution center and legal fees associated with the
February 2021 amendment to our senior secured term loan credit
facility. Amounts for the thirteen and twenty-six weeks ended June
25, 2020 primarily relate to legal fees associated with the
February 2020 amendment to our senior secured term loan credit
facility and 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 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. 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, the impact of the Spartan acquisition on our
operating results, 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,
those factors described in Item 2, “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and Item
1A, “Risk Factors” of the Company’s Quarterly Report on Form 10-Q
for the quarterly period ended July 1, 2021 (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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210805005966/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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