Floor & Decor Holdings, Inc. Announces Second Quarter Fiscal 2017 Financial Results
ATLANTA--(BUSINESS WIRE)--July 27, 2017--Floor & Decor Holdings, Inc. (NYSE:FND) (“We,” the “Company,” or “Floor & Decor”) announces its financial results for the second quarter of fiscal 2017, which ended June 29, 2017.
Tom Taylor, Chief Executive Officer, stated, “We are very pleased to report a strong second quarter that once again demonstrates the positive response customers have to our highly differentiated, multi-channel, hard surface flooring and accessories business. Our success is a credit to our associates for their exceptional service to our customers, which, together with our broad in-stock assortment, makes shopping our stores an experience unlike any other.”
Mr. Taylor continued, “Given our strong year-to-date performance, we are raising our full year guidance. Looking ahead, the growth opportunity for Floor & Decor is significant, and we remain focused on disciplined execution of our key priorities to profitably grow our store base, drive comparable store sales, expand our connected customer experience and invest in our professional customers.”
Unless indicated otherwise, the information in this release has been adjusted to give effect to a 321.820-for-one stock split of our common stock effected on April 24, 2017. See “Comparable Store Sales” below for information on how the Company calculates its comparable store sales growth.
For the Thirteen Weeks Ended June 29, 2017
For the Twenty-six Weeks Ended June 29, 2017
*Non-GAAP financial measures. Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.
Balance Sheet Highlights as of June 29, 2017
Third Quarter and Fiscal 2017 Outlook (in millions, except EPS, percentages and store count) |
|||||
Thirteen Weeks | |||||
Ended 9/28/17 | |||||
Net sales | $331 - $337 | ||||
Comparable store sales growth | 9% to 11% | ||||
GAAP diluted EPS | $0.12 - $0.14 | ||||
Adjusted diluted EPS | $0.12 - $0.14 | ||||
Diluted weighted average shares outstanding | 104.1 | ||||
Adjusted EBITDA | $33.8 - $36.5 | ||||
Warehouse format store count | 79 - 80 | ||||
New warehouse format stores | 6 - 7 | ||||
Updated Guidance | Prior Guidance | ||||
Twelve Months | Twelve Months | ||||
Ended 12/28/17 | Ended 12/28/17 | ||||
Net sales | $1,318 - $1,331 | $1,285 - $1,304 | |||
Comparable store sales growth | 10% to 12% | 8% to 10% | |||
GAAP diluted EPS | $0.57 - $0.60 | $0.49 - $0.52 | |||
Adjusted diluted EPS | $0.57 - $0.60 | $0.54 - $0.57 | |||
Adjusted diluted weighted average shares outstanding | 103.1 | 102.9 | |||
Adjusted EBITDA | $143.1 - $147.5 | $137.9 - $142.0 | |||
Depreciation and amortization | $35 | $34 | |||
Interest Expense | $14 | $14 | |||
Tax rate | 37% for the remainder of fiscal 2017 | 37% for the remainder of fiscal 2017 | |||
Warehouse format store count | 83 | 83 | |||
New warehouse format stores | 14 | 14 | |||
Capital Expenditures | $100 - $104 | $95 - $104 | |||
The above guidance includes certain non-GAAP financial measures (namely adjusted diluted weighted average shares outstanding, adjusted diluted EPS and adjusted EBITDA). Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.
Recent Developments
Secondary Offering
On July 25, certain of the Company’s stockholders completed a secondary public offering (the “Secondary Offering”) of an aggregate of 10,718,550 shares of common stock at a price to the public of $40.00 per share. The underwriters also have the option to exercise their option to purchase an additional 1,607,782 shares of common stock at the public offering price less the underwriting discounts and commissions. The Company did not sell any shares in the Secondary Offering and did not receive any proceeds from the sales of shares by the selling stockholders.
Non-GAAP Financial Measures
Adjusted net income, Adjusted diluted EPS, EBITDA and Adjusted EBITDA (which are shown in the reconciliations below) have been presented in this earnings release 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 adjusted diluted weighted average shares outstanding (i.e., the weighted average shares outstanding during the relevant period plus the weighted average impact of issuing shares in our initial public offering (our “IPO”). We define EBITDA as net income before interest, loss on early extinguishment of debt, taxes, depreciation and amortization. We define Adjusted EBITDA as net income before interest, loss 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 equivalent measures under GAAP 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 expenses 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 (gain) on asset disposal, executive recruiting/relocation, 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. Condensed Consolidated Income Statements (in thousands, except per share data) (unaudited) |
||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||
6/29/2017 | 6/30/2016 | |||||||||||||||
% of | % of | % | ||||||||||||||
Actual | Sales | Actual | Sales |
Increase |
||||||||||||
Net sales | $344,047 | 100.0 | % | $265,853 | 100.0 | % | 29.4 | % | ||||||||
Cost of sales | 201,819 | 58.7 | 156,201 | 58.8 | 29.2 | |||||||||||
Gross profit | 142,228 | 41.3 | 109,652 | 41.2 | 29.7 | |||||||||||
Selling & store operating expenses | 85,650 | 24.9 | 66,787 | 25.1 | 28.2 | |||||||||||
General & administrative expenses | 19,518 | 5.6 | 15,610 | 5.8 | 25.0 | |||||||||||
Pre-opening expenses | 2,958 | 0.9 | 2,627 | 1.0 | 12.6 | |||||||||||
Litigation settlement | — | — | 14,000 | 5.3 | (100.0) | |||||||||||
Operating income | 34,102 | 9.9 | 10,628 | 4.0 | 220.9 | |||||||||||
Interest expense | 3,353 | 1.0 | 2,475 | 0.9 | 35.5 | |||||||||||
Loss on early extinguishment of debt | 5,442 | 1.5 | 153 | 0.1 | NM | |||||||||||
Income before income taxes | 25,307 | 7.4 | 8,000 | 3.0 | 216.3 | |||||||||||
Provision for income taxes | 4,878 | 1.5 | 2,988 | 1.1 | 63.3 | |||||||||||
Net income | $20,429 | 5.9 | % | $5,012 | 1.9 | % | 307.6 | % | ||||||||
Basic weighted average shares outstanding | 90,861 | 83,385 | 9.0 | % | ||||||||||||
Diluted weighted average shares outstanding | 99,919 | 87,898 | 13.7 | % | ||||||||||||
Basic earnings per share | $0.22 | $0.06 | 266.7 | % | ||||||||||||
Diluted earnings per share | $0.20 | $0.06 | 233.3 | % | ||||||||||||
Twenty-six Weeks Ended | |||||||||||||||||
6/29/2017 | 6/30/2016 | ||||||||||||||||
% of | % of | % | |||||||||||||||
Actual | Sales | Actual | Sales |
Increase |
|||||||||||||
Net sales | $651,343 | 100.0 | % | $501,154 | 100.0 | % | 30.0 | % | |||||||||
Cost of sales | 383,644 | 58.9 | 297,605 | 59.4 | 28.9 | ||||||||||||
Gross profit | 267,699 | 41.1 | 203,549 | 40.6 | 31.5 | ||||||||||||
Selling & store operating expenses | 166,401 | 25.5 | 128,836 | 25.7 | 29.2 | ||||||||||||
General & administrative expenses | 37,399 | 5.8 | 30,180 | 6.0 | 23.9 | ||||||||||||
Pre-opening expenses | 7,125 | 1.1 | 5,943 | 1.2 | 19.9 | ||||||||||||
Litigation settlement | — | — | 14,000 | 2.8 | (100.0) | ||||||||||||
Operating income | 56,774 | 8.7 | 24,590 | 4.9 | 130.9 | ||||||||||||
Interest expense | 8,767 | 1.4 | 4,961 | 1.0 | 76.7 | ||||||||||||
Loss on early extinguishment of debt | 5,442 | 0.8 | 153 | — | NM | ||||||||||||
Income before income taxes | 42,565 | 6.5 | 19,476 | 3.9 | 118.6 | ||||||||||||
Provision for income taxes | 11,008 | 1.7 | 7,363 | 1.5 | 49.5 | ||||||||||||
Net income | $31,557 | 4.8 | % | $12,113 | 2.4 | % | 160.5 | % | |||||||||
Basic weighted average shares outstanding | 87,195 | 83,380 | 4.6 | % | |||||||||||||
Diluted weighted average shares outstanding | 94,900 | 88,335 | 7.4 | % | |||||||||||||
Basic earnings per share | $0.36 | $0.15 | 140.0 | % | |||||||||||||
Diluted earnings per share | $0.33 | $0.14 | 135.7 | % | |||||||||||||
Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (unaudited) |
||||
As of | ||||
6/29/2017 | 12/29/2016 | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $386 | $451 | ||
Income tax receivable | 2,081 | — | ||
Receivables, net | 38,500 | 34,533 | ||
Inventories, net | 367,473 | 293,702 | ||
Prepaid expenses and other current assets | 7,648 | 7,529 | ||
Total current assets | 416,088 | 336,215 | ||
Fixed assets, net | 183,649 | 150,471 | ||
Intangible assets, net | 109,378 | 109,394 | ||
Goodwill | 227,447 | 227,447 | ||
Other assets | 7,658 | 7,639 | ||
Total long-term assets | 528,132 | 494,951 | ||
Total assets | $944,220 | $831,166 | ||
Liabilities and stockholders’ equity | ||||
Current liabilities: | ||||
Current portion of term loans | $3,500 | $3,500 | ||
Trade accounts payable | 243,584 | 158,466 | ||
Accrued expenses | 53,828 | 61,505 | ||
Income taxes payable | — | 5,787 | ||
Deferred revenue | 21,519 | 14,456 | ||
Total current liabilities | 322,431 | 243,714 | ||
Term loans | 146,525 | 337,243 | ||
Revolving line of credit | 31,800 | 50,000 | ||
Deferred rent | 22,605 | 16,750 | ||
Deferred income tax liabilities, net | 35,385 | 28,265 | ||
Tenant improvement allowances | 23,682 | 20,319 | ||
Other liabilities | 648 | 592 | ||
Total long-term liabilities | 260,645 | 453,169 | ||
Total liabilities | 583,076 | 696,883 | ||
Commitments and contingencies | ||||
Stockholders’ equity | ||||
Capital stock: | ||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at June 29, 2017 and December 29, 2016 | — | — | ||
Common stock Class A, $0.001 par value; 450,000,000 shares authorized; 87,809,134 shares issued and outstanding at June 29, 2017 and 76,847,116 issued and outstanding at December 29, 2016 | 87 | 77 | ||
Common stock Class B, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at June 29, 2017 and 395,742 shares issued and outstanding at December 29, 2016 | — | — | ||
Common stock Class C, $0.001 par value; 30,000,000 shares authorized; 6,275,489 shares issued and outstanding June 29, 2017 and December 29, 2016 | 6 | 6 | ||
Additional paid-in capital | 313,323 | 117,270 | ||
Accumulated other comprehensive income (loss), net | (590) | 176 | ||
Retained earnings | 48,318 | 16,754 | ||
Total stockholders’ equity | 361,144 | 134,283 | ||
Total liabilities and stockholders’ equity | $944,220 | $831,166 | ||
Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
|||||
Twenty-six weeks Ended | |||||
6/29/2017 | 6/30/2016 | ||||
Operating activities | |||||
Net income | $31,557 | $12,113 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 18,058 | 13,696 | |||
Loss on early extinguishment of debt | 5,442 | 153 | |||
Loss on asset disposals | — | 263 | |||
Amortization of tenant improvement allowances | (1,547) | (1,188) | |||
Deferred income taxes | 7,586 | 1,546 | |||
Stock based compensation expense | 2,135 | 1,460 | |||
Changes in operating assets and liabilities: | |||||
Receivables, net | (3,967) | (535) | |||
Inventories, net | (73,771) | (26,332) | |||
Other assets | (1,643) | (1,303) | |||
Trade accounts payable | 85,118 | 20,330 | |||
Accrued expenses | (10,901) | 16,597 | |||
Income taxes | (7,868) | (2,711) | |||
Deferred revenue | 7,063 | 3,707 | |||
Deferred rent | 5,994 | 2,152 | |||
Tenant improvement allowances | 3,124 | 3,283 | |||
Other | 59 | 50 | |||
Net cash provided by operating activities | 66,439 | 43,281 | |||
Investing activities | |||||
Purchases of fixed assets | (45,498) | (30,920) | |||
Net cash used in investing activities | (45,498) | (30,920) | |||
Financing activities | |||||
Borrowings on revolving line of credit | 111,700 | 89,650 | |||
Payments on revolving line of credit | (129,900) | (113,050) | |||
Proceeds from term loans | — | 12,000 | |||
Payments on term loans | (195,750) | (733) | |||
Debt issuance costs | (993) | (197) | |||
Net proceeds from initial public offering | 192,082 | — | |||
Proceeds from exercise of stock options | 1,855 | 34 | |||
Net cash used in financing activities | (21,006) | (12,296) | |||
Net (decrease) increase in cash and cash equivalents | (65) | 65 | |||
Cash and cash equivalents, beginning of the period | 451 | 318 | |||
Cash and cash equivalents, end of the period | $386 | $383 | |||
Supplemental disclosures of cash flow information | |||||
Cash paid for interest | $11,682 | $4,194 | |||
Cash paid for income taxes | $11,134 | $8,692 | |||
Fixed assets accrued at the end of the period | $8,472 | $8,459 | |||
Fixed assets acquired as part of lease - paid for by lessor | $1,786 | $— | |||
Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data) (unaudited) |
|||||
Adjusted diluted weighted average shares outstanding | |||||
Thirteen Weeks Ended | |||||
6/29/2017 | 6/30/2016 | ||||
Diluted weighted average shares outstanding (GAAP) | 99,919 | 87,898 | |||
Adjustments for issuance of shares at IPO | 3,011 | 10,147 | |||
Adjusted diluted weighted average shares outstanding | 102,930 | 98,045 | |||
Twenty-six Weeks Ended | |||||
6/29/2017 | 6/30/2016 | ||||
Diluted weighted average shares outstanding (GAAP) | 94,900 | 88,335 | |||
Adjustments for issuance of shares at IPO | 6,579 | 10,147 | |||
Adjusted diluted weighted average shares outstanding | 101,479 | 98,482 | |||
Adjusted net income and Adjusted diluted EPS | |||||
Thirteen Weeks Ended | |||||
6/29/2017 | 6/30/2016 | ||||
Net income (GAAP): | $20,429 | $5,012 | |||
Interest due to IPO | 1,365 | 2,730 | |||
Loss on early extinguishment of debt | 5,442 | 153 | |||
Secondary offering costs | 285 | — | |||
Tax benefit of stock option exercises | (4,408) | — | |||
Legal settlement | — | 14,000 | |||
Interest due to refinancing of credit facilities | — | (2,928) | |||
Repricing amendment to term loan facility | — | 293 | |||
Tax impact of adjustments to net income | (2,624) | (5,414) | |||
Adjusted net income | $20,489 | $13,846 | |||
Adjusted diluted weighted average shares outstanding | 102,930 | 98,045 | |||
Adjusted diluted EPS | $0.20 | $0.14 | |||
Twenty-six Weeks Ended | |||||
6/29/2017 | 6/30/2016 | ||||
Net income (GAAP): | $31,557 | $12,113 | |||
Interest due to IPO | 4,095 | 5,460 | |||
Loss on early extinguishment of debt | 5,442 | 153 | |||
Secondary offering costs | 285 | — | |||
Tax benefit of stock option exercises | (4,408) | — | |||
Legal settlement | — | 14,000 | |||
Interest due to refinancing of credit facilities | — | (5,856) | |||
Repricing amendment to term loan facility | 295 | 588 | |||
Tax impact of adjustments to net income | (3,743) | (5,451) | |||
Adjusted net income | $33,523 | $21,007 | |||
Adjusted diluted weighted average shares outstanding | 101,479 | 98,482 | |||
Adjusted diluted EPS | $0.33 | $0.21 | |||
EBITDA and Adjusted EBITDA |
||||||
Thirteen Weeks Ended | ||||||
6/29/2017 | 6/30/2016 | |||||
Net income (GAAP): | $20,429 | $5,012 | ||||
Depreciation and amortization | 8,026 | 6,447 | ||||
Interest expense | 3,353 | 2,475 | ||||
Loss on early extinguishment of debt | 5,442 | 153 | ||||
Income tax expense | 4,878 | 2,988 | ||||
EBITDA | 42,128 | 17,075 | ||||
Stock compensation expense | 1,250 | 706 | ||||
Loss on asset disposal | — | 211 | ||||
Legal settlement | — | 14,000 | ||||
Other | 303 | — | ||||
Adjusted EBITDA | $43,681 | $31,992 | ||||
Twenty-six Weeks Ended | ||||||
6/29/2017 | 6/30/2016 | |||||
Net income (GAAP): | $31,557 | $12,113 | ||||
Depreciation and amortization | 15,794 | 11,784 | ||||
Interest expense | 8,767 | 4,961 | ||||
Loss on early extinguishment of debt | 5,442 | 153 | ||||
Income tax expense | 11,008 | 7,363 | ||||
EBITDA | 72,568 | 36,374 | ||||
Stock compensation expense | 2,135 | 1,461 | ||||
Loss on asset disposal | — | 258 | ||||
Legal settlement | — | 14,000 | ||||
Other | 875 | — | ||||
Adjusted EBITDA | $75,578 | $52,093 | ||||
Comparable Store Sales
“Comparable store sales”’ includes net sales from the Company’s stores beginning on the first day of the thirteenth full fiscal month following the store’s opening. Because the Company’s e-commerce sales are fulfilled by individual stores, they are included in comparable store sales only to the extent such fulfilling store meets the above mentioned store criteria.
Guidance Reconciliation - Third Quarter 2017 |
|||||||
Adjusted diluted weighted average shares outstanding | |||||||
Thirteen Weeks Ended | |||||||
9/28/2017 | 9/29/2016 | ||||||
Low End | High End | Actual | |||||
Diluted weighted average shares outstanding (GAAP) | 104.1 | 104.1 | 88.4 | ||||
Adjustments for issuance of shares at IPO | — | — | 10.1 | ||||
Adjusted diluted weighted average shares outstanding | 104.1 | 104.1 | 98.5 | ||||
Adjusted net income and Adjusted diluted EPS | |||||||
Thirteen Weeks Ended | |||||||
9/28/2017 | 9/29/2016 | ||||||
Low End | High End | Actual | |||||
Net income (GAAP): | $12.7 | $14.4 | $14.2 | ||||
Interest due to refinancing of credit facilities | — | — | (2.9) | ||||
Interest due to IPO | — | — | 2.7 | ||||
Repricing amendment to term loan facility | — | — | 0.3 | ||||
Legal settlement | — | — | (3.5) | ||||
Secondary offering expenses | 0.4 | 0.4 | — | ||||
Tax impact of adjustments to net income | (0.2) | (0.2) | 1.3 | ||||
Adjusted net income | $12.9 | $14.6 | $12.1 | ||||
Adjusted weighted average shares outstanding | 104.1 | 104.1 | 98.5 | ||||
Adjusted diluted EPS | $0.12 | $0.14 | $0.12 | ||||
EBITDA and Adjusted EBITDA | |||||||
Thirteen Weeks Ended | |||||||
9/28/2017 | 9/29/2016 | ||||||
Low End | High End | Actual | |||||
Net income (GAAP): | $12.7 | $14.4 | $14.2 | ||||
Depreciation and amortization | 9.1 | 9.1 | 6.2 | ||||
Interest expense | 2.6 | 2.6 | 2.4 | ||||
Income tax expense | 7.5 | 8.5 | 7.9 | ||||
EBITDA | 31.9 | 34.6 | 30.7 | ||||
Stock compensation expense | 1.5 | 1.5 | 0.8 | ||||
Loss on asset disposal | — | — | 0.2 | ||||
Legal settlement | — | — | (3.5) | ||||
IPO costs | 0.4 | 0.4 | — | ||||
Adjusted EBITDA | $33.8 | $36.5 | $28.2 | ||||
Guidance Reconciliation - Fiscal Year 2017
(in millions, except per share data) (unaudited)
Adjusted diluted weighted average shares outstanding |
|||||||
Fiscal Year | |||||||
12/28/2017 | 12/29/2016 | ||||||
Low End | High End | Actual | |||||
Diluted weighted average shares outstanding (GAAP) | 99.8 | 99.8 | 88.4 | ||||
Adjustments for issuance of shares at IPO | 3.3 | 3.3 | 10.1 | ||||
Adjusted diluted weighted average shares outstanding | 103.1 | 103.1 | 98.6 | ||||
Adjusted net income and Adjusted diluted EPS | |||||||
Fiscal Year | |||||||
12/28/2017 | 12/29/2016 | ||||||
Low End | High End | Actual | |||||
Net income (GAAP): | $56.6 | $59.4 | $43.0 | ||||
Interest due to refinancing of credit facilities | — | — | (8.8) | ||||
Interest due to IPO | 4.1 | 4.1 | 10.9 | ||||
Repricing amendment to term loan facility | 0.3 | 0.3 | 1.2 | ||||
Legal settlement | — | — | 10.5 | ||||
Secondary offering expenses | 0.7 | 0.7 | — | ||||
Loss on early extinguishment of debt | 5.4 | 5.4 | 1.8 | ||||
Tax benefit of stock option exercises | (4.4) | (4.4) | — | ||||
Tax benefit of 2016 dividend | — | — | (8.5) | ||||
Tax impact of adjustments to net income | (3.9) | (3.9) | (5.9) | ||||
Adjusted net income | $58.8 | $61.6 | $44.2 | ||||
Adjusted weighted average shares outstanding | 103.1 | 103.1 | 98.6 | ||||
Adjusted diluted EPS | $0.57 | $0.60 | $0.45 | ||||
EBITDA and Adjusted EBITDA | |||||||
Fiscal Year | |||||||
12/28/2017 | 12/29/2016 | ||||||
Low End | High End | Actual | |||||
Net income (GAAP): | $56.6 | $59.4 | $43.0 | ||||
Depreciation and amortization | 34.7 | 34.7 | 25.1 | ||||
Interest expense | 14.1 | 14.1 | 12.8 | ||||
Loss on early extinguishment of debt | 5.4 | 5.4 | 1.8 | ||||
Income tax expense | 25.7 | 27.3 | 11.5 | ||||
EBITDA | 136.5 | 140.9 | 94.2 | ||||
Stock compensation expense | 5.0 | 5.0 | 3.2 | ||||
Loss on asset disposal | 0.2 | 0.2 | 0.5 | ||||
Legal settlement | — | — | 10.5 | ||||
Offering costs | 1.4 | 1.4 | — | ||||
Adjusted EBITDA | $143.1 | $147.5 | $108.4 | ||||
Note: Certain numbers may not sum due to rounding
Conference Call Details
A conference call to discuss the second quarter fiscal 2017 financial results is scheduled for today, July 27, 2017, at 4:30 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 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 8629077. The replay will be available until August 3, 2017.
About Floor & Decor Holdings, Inc.
Floor & Decor is a multi-channel specialty retailer of hard surface flooring and related accessories, offering a broad in-stock assortment of tile, wood, laminate and natural stone flooring along with decorative and installation accessories at everyday low prices.
Forward-Looking Statements
This release and the associated webcast/conference call contain forward-looking statements, including with respect to the Company’s estimated net sales, comparable store sales growth, GAAP EPS, adjusted diluted EPS, diluted share count, adjusted EBITDA, warehouse format store count and new warehouse format stores for both the thirteen weeks ended 9/28/17 and all of fiscal 2017 and with respect to the Company’s estimated depreciation and amortization expenses, interest expense, tax rate and capital expenditures for fiscal 2017. 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 and objectives of management for future operations, are forward-looking statements. 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.
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 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 “Risk Factors,” “Special Note Regarding Forward-Looking Statements,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Business” sections and elsewhere in the Company’s final prospectus, dated April 26, 2017 and filed with the SEC in accordance with Rule 424(b) of the Securities Act of 1933 on April 28, 2017.
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 net sales, comparable store sales growth, GAAP EPS, adjusted diluted EPS, diluted share count, adjusted diluted weighted average shares outstanding, adjusted EBITDA, warehouse format store count and new warehouse format stores for both the thirteen weeks ended 9/28/17 and all of fiscal 2017 and with respect to the Company’s estimated depreciation and amortization expenses, interest expense, tax rate and capital expenditures for fiscal 2017.
CONTACT:
Investor Contacts:
Floor & Decor Holdings, Inc.
Matthew McConnell
770-257-1374
InvestorRelations@flooranddecor.com
or
ICR, Inc.
Farah Soi/Rachel Schacter
203-682-8200
InvestorRelations@flooranddecor.com