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Floor & Decor Holdings, Inc. Announces Third Quarter Fiscal 2022 Financial Results

General News
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Floor & Decor Holdings, Inc. (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the third quarter of fiscal 2022, which ended September 29, 2022.

Tom Taylor, Chief Executive Officer, stated, “We are pleased with our fiscal 2022 third-quarter financial results and excited about approaching 14 consecutive years of comparable store sales growth, a significant accomplishment considering current macroeconomic challenges. Additionally, we are pleased with our continued strong execution, enabling us to deliver better-than-expected third-quarter 2022 adjusted diluted earnings per share of $0.70, an increase of 16.7% from the third quarter of last year’s $0.60 per share. I particularly want to express my gratitude to our associates in Florida for their hard work and deep dedication to their communities and each other. We were able to quickly reopen our stores to serve customers impacted by Hurricane Ian as they begin recovery and rebuilding efforts.”

Mr. Taylor continued, “We opened four new warehouse-format stores in the third quarter of fiscal 2022 and intend to open 13 warehouse-format stores in the fourth quarter of fiscal 2022, ending the year with 191 warehouse stores operating in 36 states.”

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

For the Thirteen Weeks Ended September 29, 2022

  • Net sales increased 25.2% to $1,097.8 million from $876.6 million in the third quarter of fiscal 2021.
  • Comparable store sales increased 11.6%.
  • We opened four new warehouse stores during the third quarter of fiscal 2022, ending the quarter with 178 warehouse stores and five design studios.
  • Operating income increased 21.9% to $101.7 million from $83.4 million in the third quarter of fiscal 2021. Operating margin decreased 20 basis points to 9.3%.
  • Net income increased 2.0% to $76.2 million from $74.6 million in the third quarter of fiscal 2021. Diluted EPS was $0.71 compared to $0.69 in the third quarter of fiscal 2021, an increase of 2.9%.
  • Adjusted net income* increased 17.2% to $75.3 million from $64.2 million in the third quarter of fiscal 2021. Adjusted diluted EPS* was $0.70 compared to $0.60 in the third quarter of fiscal 2021, an increase of 16.7%.
  • Adjusted EBITDA* increased 23.0% to $147.9 million from $120.2 million in the third quarter of fiscal 2021.

For the Thirty-nine Weeks Ended September 29, 2022

  • Net sales increased 27.7% to $3,216.4 million from $2,519.2 million in the same period of fiscal 2021.
  • Comparable store sales increased 11.6%.
  • We opened 19 new warehouse stores and three design studios and closed one warehouse store during the thirty-nine weeks ended September 29, 2022.
  • Operating income increased 8.7% to $302.0 million from $277.9 million in the same period of fiscal 2021. Operating margin decreased 160 basis points to 9.4%.
  • Net income decreased 1.9% to $229.0 million compared to $233.4 million in the same period of fiscal 2021. Diluted EPS was $2.13 compared to $2.17 in the same period of fiscal 2021, a decrease of 1.8%.
  • Adjusted net income* increased 5.9% to $228.0 million from $215.3 million in the same period of fiscal 2021. Adjusted diluted EPS* was $2.12 compared to $2.01 in the same period of fiscal 2021, an increase of 5.5%.
  • Adjusted EBITDA* increased 12.9% to $434.0 million from $384.3 million in the same period of fiscal 2021.

*Non-GAAP financial measures. Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.

Updated Outlook for the Fiscal Year Ending December 29, 2022:

  • Net sales of approximately $4,250 to $4,285 million
  • Comparable store sales growth of approximately 9% to 10%
  • Diluted EPS to be in the range of $2.65 to $2.75
  • Adjusted EBITDA in the range of $565 million to $575 million
  • Depreciation and amortization expense of approximately $153 million
  • Interest expense, net of approximately $11 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 107.5 million shares
  • Open 32 new warehouse-format stores and four small design studios
  • Capital expenditures in the range of approximately $445 million to $465 million

For the full third quarter results, click here.

About Floor & Decor Holdings, Inc.

Floor & Decor is a multi-channel specialty retailer and commercial flooring distributor operating 178 warehouse-format stores and five design studios across 35 states at the end of the third quarter of fiscal 2022. 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.