FND Floor and Decor Holdings Inc

• Net sales increased 29.4% from second quarter 2016 to $344.0 million
• Comparable store sales increased 14.7% from second quarter 2016
• Diluted earnings per share (“EPS”) increased to $0.20 from $0.06 in the second quarter 2016; adjusted diluted EPS increased 42.9% to $0.20 from $0.14 in the second quarter 2016
• Raising full year financial outlook reflecting year-to-date performance

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

• Net sales increased 29.4% to $344.0 million from $265.9 million in the second quarter of fiscal 2016. Comparable store sales increased 14.7%.
• The Company opened one new store during the second quarter of fiscal 2017, ending the quarter with 73 warehouse format stores. This represents a unit increase of 15.9% over the second quarter of fiscal 2016.
• Operating income increased 220.9% to $34.1 million from $10.6 million in the second quarter of fiscal 2016, which included a $14.0 million charge to reserve for a legal settlement. Operating margin increased 590 basis points to 9.9%.
• Net income increased 307.6% to $20.4 million compared to $5.0 million in the second quarter of fiscal 2016; Net income per diluted share was $0.20 compared to $0.06 per diluted share in the second quarter of fiscal 2016.
• Adjusted net income* increased 48.0% to $20.5 million compared to $13.8 million in the second quarter of fiscal 2016; Adjusted diluted EPS* was $0.20 compared to $0.14 in the second quarter of fiscal 2016, an increase of 42.9%.
• Adjusted EBITDA* increased 36.5% to $43.7 million compared to $32.0 million in the second quarter of fiscal 2016.

For the Twenty-six Weeks Ended June 29, 2017

• Net sales increased 30.0% to $651.3 million from $501.2 million in the first half of fiscal 2016. Comparable store sales increased 13.8%.
• The Company opened four new stores and relocated one store during the first half of fiscal 2017.
• Operating income increased 130.9% to $56.8 million compared to $24.6 million in the first half of fiscal 2016, which included a $14.0 million charge to reserve for a legal settlement. Operating margin increased 380 basis points to 8.7%.
• Net income increased 160.5% to $31.6 million compared to $12.1 million in the second quarter of fiscal 2016; Net income per diluted share was $0.33 compared to $0.14 per diluted share in the first half of fiscal 2016.
• Adjusted net income* increased 59.6% to $33.5 million compared to $21.0 million in the first half of fiscal 2016; Adjusted diluted EPS* was $0.33 compared to $0.21 in the first half of fiscal 2016, an increase of 57.1%.
• Adjusted EBITDA* increased 45.1% to $75.6 million compared to $52.1 million in the first half of fiscal 2016.

*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

• Total liquidity was $156.1 million as of June 29, 2017, which primarily was from the availability on our revolving credit facility.
• Total debt was $181.8 million as of June 29, 2017, consisting of outstanding current and long-term portions of our secured term loan and revolving credit facilities.

 

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 (Decrease)

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 (Decrease)

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(in millions, except per share data)(unaudited)

        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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170727006499/en/

Investor Contacts:Floor & Decor Holdings, Inc.Matthew McConnell770-257-1374InvestorRelations@flooranddecor.comorICR, Inc.Farah Soi/Rachel Schacter203-682-8200InvestorRelations@flooranddecor.com