Floor & Decor Holdings, Inc. Announces Second Quarter Fiscal 2020 Financial Results

Floor & Decor Holdings, Inc. (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the second quarter of fiscal 2020, which ended June 25, 2020.

Tom Taylor, Chief Executive Officer, stated, “We remain committed to supporting our customers and associates as we continue to navigate the uncertainty caused by the COVID-19 pandemic. We are excited that we were able to bring all of our stores to full operations in June and by the positive response from our Pro and DIY customers as we fully opened our stores. Our comparable store sales trends accelerated throughout the back half of the second quarter, leading to June comparable store sales growth of 7.7%. We are encouraged to see our third quarter-to-date comparable store sales accelerate to 16% from the same period last year. While the impact of the COVID-19 pandemic remains uncertain into the second half of 2020, we believe we have a flexible business model that can be responsive to local market conditions and we have multiple avenues to remain engaged with our Pro and DIY customers. I remain inspired by our associates who have rallied together in collaborative and creative ways to face the unique challenges caused by the COVID-19 pandemic.”

Mr. Taylor continued, “We are pleased with our 2020 new store opening plan, which now includes 13 new warehouse stores, up from our most recent estimate of 11 stores. As we look to 2021 and beyond, we are excited about the new store pipeline for 2021, which we expect will lead to more balanced openings throughout the year, and we intend to grow our new store base by approximately 20% annually for the next several years. We have a strong balance sheet and the best liquidity in our company’s history, which has enabled us to withstand this period of uncertainty and continue to support our long-term growth initiatives.”

Please see “Comparable Store Sales” below for information on how the Company calculates its comparable store sales growth.

For the Thirteen Weeks Ended June 25, 2020

– Net sales decreased 11.1% to $462.4 million from $520.3 million in the second quarter of fiscal 2019. Comparable store sales decreased 20.8%.
– The Company opened two new stores during the second quarter of fiscal 2020, ending the quarter with 125 warehouse format stores.
– Operating income decreased 54.0% to $21.1 million from $45.9 million in the second quarter of fiscal 2019. Operating margin decreased 420 basis points to 4.6%.
– The Company recognized a $7.7 million income tax benefit resulting from net operating loss carrybacks under the CARES Act.
– Net income decreased 26.6% to $32.0 million compared to $43.6 million in the second quarter of fiscal 2019. Diluted EPS was $0.30 compared to $0.42 in the second quarter of fiscal 2019.
– Adjusted net income* decreased 62.2% to $13.4 million compared to $35.3 million in the second quarter of fiscal 2019.
– Adjusted diluted EPS* was $0.13 compared to $0.34 in the second quarter of fiscal 2019, a decrease of 61.8%.
– Adjusted EBITDA* decreased 31.6% to $45.6 million compared to $66.6 million in the second quarter of fiscal 2019.

For the Twenty-six Weeks Ended June 25, 2020

– Net sales increased 2.0% to $1,017.3 million from $997.4 million in the same period of fiscal 2019. Comparable store sales decreased 9.6%.
– The Company opened five new stores during the twenty-six weeks ended June 25, 2020.
– Operating income decreased 20.9% to $67.8 million from $85.7 million in the same period of fiscal 2019. Operating margin decreased 190 basis points to 6.7%.
– Net income decreased 7.1% to $69.1 million compared to $74.3 million in the same period of fiscal 2019. Diluted EPS was $0.65 compared to $0.71 in the same period of fiscal 2019.
– Adjusted net income* decreased 23.9% to $49.7 million compared to $65.3 million in the same period of fiscal 2019.
– Adjusted diluted EPS* was $0.47 compared to $0.62 in the same period of fiscal 2019, a decrease of 24.2%.
– Adjusted EBITDA* decreased 6.3% to $118.7 million compared to $126.7 million in the same period of fiscal 2019.

*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 Outlook: The COVID-19 pandemic has had a material negative impact on the Company’s operations and financial results to date. We are monitoring 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.

For the full second quarter results, click here.

About Floor & Decor Holdings, Inc.

Floor & Decor is a multi-channel specialty retailer operating 125 warehouse-format stores across 30 states at the end of the second 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.

Contact:

Wayne Hood – Vice President of Investor Relations – wayne.hood@flooranddecor.com – (678) 505-4415

Source: Floor & Décor Holdings, Inc.