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Floor & Decor(FND) - 2025 Q1 - Quarterly Report
FNDFloor & Decor(FND)2025-05-01 20:21
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Financial Performance - Net sales for the quarter ended March 27, 2025, increased to 1,160,740,representingagrowthof5.81,160,740, representing a growth of 5.8% compared to 1,097,289 for the same period in 2024[17] - Gross profit for the quarter was 508,168,upfrom508,168, up from 470,026 in the prior year, indicating a gross margin improvement[17] - Operating income rose to 64,229,comparedto64,229, compared to 59,311 in the previous year, reflecting a year-over-year increase of 3.1%[17] - Net income for the quarter was 48,878,slightlydownfrom48,878, slightly down from 50,032 in the same quarter last year, resulting in basic earnings per share of 0.45[17]−NetincomeforthethirteenweeksendedMarch27,2025,was0.45[17] - Net income for the thirteen weeks ended March 27, 2025, was 48,878,000, a decrease of 2.3% from 50,032,000forthesameperiodin2024[23]−Basicearningspersharefortheperiodwas50,032,000 for the same period in 2024[23] - Basic earnings per share for the period was 0.45, down from 0.47intheprioryear,whiledilutedearningspersharealsodecreasedto0.47 in the prior year, while diluted earnings per share also decreased to 0.45 from 0.46[64]−OperatingincomefortheRetailsegmentwas0.46[64] - Operating income for the Retail segment was 61.929 million, compared to 57.050millionintheprioryear,indicatingagrowthinoperationalefficiency[73]AssetsandLiabilities−Totalassetsincreasedto57.050 million in the prior year, indicating a growth in operational efficiency[73] Assets and Liabilities - Total assets increased to 5,368,264, up from 5,050,478asofDecember26,2024,showingagrowthof6.35,050,478 as of December 26, 2024, showing a growth of 6.3%[15] - Total liabilities rose to 3,146,501, compared to 2,880,320attheendofthepreviousquarter,indicatinganincreaseof9.32,880,320 at the end of the previous quarter, indicating an increase of 9.3%[15] - Current liabilities totaled 1,253,504, slightly higher than 1,244,192fromthepreviousquarter,indicatingamarginalincrease[15]−Long−termdebtasofMarch27,2025,was1,244,192 from the previous quarter, indicating a marginal increase[15] - Long-term debt as of March 27, 2025, was 194,424,000, slightly down from 194,527,000attheendofthepreviousfiscalyear[37]−AsofMarch27,2025,amountsduetofinancialintermediariesforsupplychainfinanceprogramswere194,527,000 at the end of the previous fiscal year[37] - As of March 27, 2025, amounts due to financial intermediaries for supply chain finance programs were 177.3 million, up from 167.7millionattheendof2024[70]CashFlow−Netcashprovidedbyoperatingactivitiesdecreasedto167.7 million at the end of 2024[70] Cash Flow - Net cash provided by operating activities decreased to 71,164,000 from 147,510,000year−over−year,reflectingadeclineof51.7147,510,000 year-over-year, reflecting a decline of 51.7%[23] Equity and Stockholder Information - The company reported total stockholders' equity of 2,221,763, up from 2,170,158,reflectingagrowthof2.42,170,158, reflecting a growth of 2.4%[15] - The number of outstanding stock options as of March 27, 2025, was 1,097,465, with a weighted average exercise price of 31.16[59] Risks and Future Strategies - The company continues to face risks related to economic conditions, competition, and supply chain disruptions, which could impact future performance[11] - Future growth strategies include managing new store openings and enhancing brand awareness to drive sales[11] - The Company plans to continue expanding its product offerings and market presence, focusing on both professional and DIY customer segments[26] Lease and Interest Expenses - Total fixed operating lease costs for the thirteen weeks ended March 27, 2025, were 60.164million,comparedto60.164 million, compared to 53.279 million for the same period in 2024, representing an increase of 13.5%[50] - Total operating lease costs for the thirteen weeks ended March 27, 2025, were 83.161million,upfrom83.161 million, up from 72.724 million in the prior year, reflecting a year-over-year increase of 14.3%[50] - The effective income tax rate for the thirteen weeks ended March 27, 2025, was 22.0%, up from 12.8% for the same period in 2024[47] - The Company recognized interest expense of 1,548,000forthethirteenweeksendedMarch27,2025,comparedto1,548,000 for the thirteen weeks ended March 27, 2025, compared to 1,955,000 for the same period in 2024[38] - A 1.0% increase in the effective interest rate on the company’s 199.8millionoutstandingCreditFacilitieswouldresultinanadditionalinterestexpenseofapproximately199.8 million outstanding Credit Facilities would result in an additional interest expense of approximately 2.0 million over the next twelve months[116] Legal Matters - The Company is currently involved in litigation with potential damages exceeding 11.0millionrelatedtoawrongfuldeathlawsuit[55]OtherFinancialMetrics−Thelaminateandvinylcategorygenerated11.0 million related to a wrongful death lawsuit[55] Other Financial Metrics - The laminate and vinyl category generated 286,160,000 in sales, representing 25% of total net sales, up from 24% in the previous year[36] - The company’s contingent earn-out liability decreased from 4.502millionto4.502 million to 0.750 million during the thirteen weeks ended March 27, 2025, reflecting a fair value adjustment of (375,000)andpaymentsof(375,000) and payments of (3.377 million)[66] - The change in fair value of the company’s interest rate cap contracts was less than 0.1millionforthethirteenweeksendedMarch27,2025,comparedtoa0.1 million for the thirteen weeks ended March 27, 2025, compared to a 1.0 million change in the prior year[69] - The company’s fair value assessment for its interest rate cap contract considered counterparty default risk and its own credit risk, utilizing Level 2 inputs for valuation[69]