Floor & Decor Holdings, Inc. Announces Fourth Quarter Fiscal 2021 Financial Results

Floor & Decor Holdings, Inc. (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the fourth quarter and fiscal year ended December 30, 2021. Tom Taylor, Chief Executive Officer, stated, “We are proud to have achieved several milestones in fiscal 2021 and, most important, continued to grow our market share in a challenging environment. Despite the continuing challenges presented by COVID, widespread disruption in the global supply chain, and related cost headwinds, we delivered record full-year fiscal 2021 sales and earnings results.”

Mr. Taylor continued, “For the 2021 fiscal year, we opened 27 new warehouse-format stores, representing 20.3% growth from fiscal 2020. We ended 2021 operating 160 warehouse-format stores and two design studios in 33 states, further extending our store footprint and brand awareness. We plan to open 32 new warehouse-format stores in fiscal 2022. As we look beyond 2022, we are excited to announce that we have expanded our new store opportunity in the United States. We now believe there is a path to operating at least 500 warehouse-format stores over the next 8 to 10 years compared with our prior market expectations of operating at least 400 warehouse-format stores.”

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), which affects comparability to the 52-week fiscal year ended December 30, 2021 (fiscal 2021) and the 52-week fiscal year ending December 29, 2022 (fiscal 2022). When presenting comparable store sales, we have excluded the last week of the fiscal fourth quarter and year ended December 31, 2020. Please see “Comparable Store Sales” below for information on how the Company calculates its comparable store sales growth.

For the Fiscal Quarter Ended December 30, 2021

• Net sales increased 26.4% to $914.3 million from $723.7 million in the fourth quarter of fiscal 2020.
• Comparable store sales increased 14.0%.
• We opened seven new warehouse stores during the fourth quarter of fiscal 2021, ending the quarter with 160 warehouse stores and two design studios.
• Operating income decreased 10.2% to $61.1 million from $68.0 million in the fourth quarter of fiscal 2020. Operating margin decreased 270 basis points to 6.7%.
• Net income decreased 12.7% to $49.9 million compared to $57.1 million in the fourth quarter of fiscal 2020. Diluted EPS was $0.46 compared to $0.54 in the fourth quarter of fiscal 2020, a decrease of 14.8%.
• Adjusted net income* decreased 6.1% to $47.1 million compared to $50.2 million in the fourth quarter of fiscal 2020. Adjusted diluted EPS* was $0.44 compared to $0.47 in the fourth quarter of fiscal 2020, a decrease of 6.4%.
• Adjusted EBITDA* increased 3.3% to $100.8 million compared to $97.6 million in the fourth quarter of fiscal 2020.

For the Fiscal Year Ended December 30, 2021

• Net sales increased 41.5% to $3,433.5 million from $2,425.8 million in fiscal 2020.
• Comparable store sales increased 27.6%.
• We opened 27 new warehouse stores.
• Operating income increased 58.0% to $339.0 million from $214.6 million in fiscal 2020. Operating margin increased 110 basis points to 9.9%.
• Net income increased 45.3% to $283.2 million compared to $195.0 million in fiscal 2020. Diluted EPS was $2.64 compared to $1.84 in fiscal 2020, an increase of 43.5%.
• Adjusted net income* increased 64.7% to $262.4 million compared to $159.3 million in fiscal 2020. Adjusted diluted EPS* was $2.44 compared to $1.50 in fiscal 2020, an increase of 62.7%.
• Adjusted EBITDA* increased 50.2% to $485.1 million compared to $323.0 million in fiscal 2020.

Fiscal 2020 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.

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 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.

Fiscal 2022 Sales and Earnings Outlook:

• Net sales of approximately $4,285 to $4,375 million
• Comparable store sales growth of approximately 10.5% to 13.0%
• Diluted EPS to be in the range of $2.75 to $3.00
• Adjusted EBITDA in the range of $575 million to $610 million
• Depreciation and amortization expense of approximately $151 million
• Interest expense, net of approximately $7 million
• Tax rate of approximately 24%, excluding tax benefits resulting from stock option exercises and the vesting of restricted stock and restricted stock units
• Diluted weighted average shares outstanding of approximately 108.4 million shares
• Open 32 new warehouse-format stores and four small design studios
• Capital expenditures in the range of approximately $550 million to $590 million

For the complete press release, click here.

About Floor & Decor Holdings, Inc.

Floor & Decor is a multi-channel specialty retailer and commercial flooring distributor operating 160 warehouse-format stores and two design studios across 33 states as of December 30, 2021. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate, vinyl, and natural stone along with decorative accessories and wall tile, installation materials, and adjacent categories at everyday low prices. The Company was founded in 2000 and is headquartered in Atlanta, Georgia.

Contact:

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

Source: Floor & Decor Holdings, Inc.