Earnings Highlights and Review: Floor & Decor Holdings’ Sales Jumped 31%; Adjusted Earnings Rocketed 82%

LONDON, UK / ACCESSWIRE / June 19, 2017 / Pro-Trader Daily publishes post-earnings coverage on Floor & Decor Holdings, Inc. (NYSE: FND) following the Company’s release of its first quarter fiscal 2017 financial results on May 25, 2017. The retailer of hard surface flooring and related accessories outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

For the Thirteen Weeks Ended March 30, 2017, Floor & Decor’s net sales surged 30.6% to $307.3 million compared to net sales of $235.3 million in Q1 2016. The Company’s revenue numbers surpassed analysts’ estimates of $306.6 million. Floor & Decor noted a double digit growth in comparable store sales of 12.8%.

For Q1 2017, Floor & Decor’s operating income soared 62.4% to $22.7 million compared to $14.0 million in Q1 2016. The Company’s operating margin increased 145 basis points to 7.4% in the quarter under review. Floor & Decor’s adjusted EBITDA jumped 58.7% to $31.9 million compared to $20.1 million in Q1 2016.

Floor & Decor’s net income rose 56.7% to $11.1 million, or $0.13 per diluted share, for Q1 2017 compared to $7.1 million, or $0.08 per diluted share, in Q1 2016. The Company’s adjusted net income surged 82.0% to $13.0 million compared to $7.2 million in the prior year’s same quarter. Adjusted diluted EPS totaled $0.13 in Q1 2017 compared to $0.07 in Q1 2016. The Company’s earnings surpassed Wall Street’s expectations of $0.03 per share.

Balance Sheet Highlights

Floor & Decor’s total liquidity was $173.4 million as of March 30, 2017, which primarily was from the availability on the Company’s revolving credit facility. Floor & Decor’s total debt was $354.7 million as of March 30, 2017, consisting of outstanding current and long-term portions of its secured term loan and revolving credit facilities.

Store Update

Floor & Decor opened three new stores and relocated one store during Q1 2017, ending the quarter with 72 stores, representing a unit increase of 20.0% over Q1 2016.

Recent Developments

On April 26, 2017, Floor & Decor priced its initial public offering (“IPO”) at $21.00 per share. The Company sold 10,147,025 shares of common stock resulting in total net proceeds of approximately $192.0 million after deducting underwriting discounts and commissions and other offering expenses. Floor & Decor utilized net proceeds from the IPO to repay a portion of the amounts outstanding under its $350.0 million senior secured term loan facility maturing on September 30, 2023. The Company stated that the repayment will result in a loss on extinguishment of debt of approximately $5.4 million, which will be recorded in Q2 2017. Total debt as of March 30, 2017, was $354.7 million.

On March 31, 2017, Floor & Decor entered into an a repricing amendment to the credit agreement governing the Term Loan Facility that lowered interest rate on the Company’s term loan facility by 75 basis points beginning Q2 2017. The Term Loan Repricing also included a leverage-based step-down of another 50 basis points upon completion of the IPO and leverage ratio falling below 2.0x. Based on the terms of its Term Loan Facility, the Company expects to receive the additional 50 basis points of lower interest in Q4 2017.

Stock Performance

Floor & Decor Holdings’ share price finished last Friday’s trading session at $40.42, marginally sliding 0.20%. A total volume of 956.66 thousand shares have exchanged hands, which was higher than the 3-month average volume of 586.68 thousand shares. The Company’s stock price surged 11.41% in the last one month. Additionally, the stock rallied 26.12% since the start of the year. Shares of the Company have a PE ratio of 75.41 and currently have a market cap of $3.80 billion.

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