Floor & Decor Holdings, Inc. (NYSE:FND) Q2 2020 Earnings Conference Call July 30, 2020 5:00 PM ET Company Participants Wayne Hood – Vice President of Investor Relations Tom Taylor – Chief Executive Officer Lisa Laube – President Trevor Lang – Executive Vice President and Chief Financial Officer Conference Call Participants Christopher Horvers – JPMorgan Zach Fadem – Wells Fargo Chuck Grom – Gordon Haskett Steven Forbes – Guggenheim Securities Michael Lasser – UBS Kate McShane – Goldman Sachs Simeon Gutman – ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________ FORM 10-Q _________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 25, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission file number 001-38070 ______________________ ...

Floor & Decor Holdings, Inc. (NYSE:FND) Q1 2020 Earnings Conference Call April 30, 2020 5:00 PM ET Company Participants Wayne Hood - VP of IR Thomas Taylor - CEO Trevor Lang - EVP & CFO Lisa Laube - President Conference Call Participants Simeon Gutman - Morgan Stanley Steven Forbes - Guggenheim Securities Chris Horvers - JPMorgan Seth Sigman - Crédit Suisse Mike Lasser - UBS Matt McClintock - Raymond James John Baugh - Stifel Peter Keith - Piper Sandler Chuck Grom - Gordon Haskett Kate McShane - Goldman Sac ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 26, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38070 Floor & Decor Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 27-3730271 (State or o ...

Floor & Decor Holdings, Inc. (NYSE:FND) Q4 2019 Earnings Conference Call February 20, 2020 5:00 PM ET Company Participants Wayne Hood - Vice President of Investor Relations Thomas Taylor - Chief Executive Officer Trevor Lang - Executive Vice President and Chief Financial Officer Lisa Laube - President Conference Call Participants Christopher Horvers - JPMorgan Steven Forbes - Guggenheim Securities Michael Lasser - UBS Zack Fadem - Wells Fargo Securities, LLC Matt McClintock - Raymond James & Associates, Inc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 26, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Securities registered pursuant to Section 12(g) of the Act: Commission file number 001-38070 Floor & Decor Holdings, Inc. (Exact name of registrant as sp ...

Floor & Decor Holdings, Inc. (NYSE:FND) Q3 2019 Earnings Conference Call November 1, 2019 9:00 AM ET Company Participants Wayne Hood - Vice President, Investor Relations Tom Taylor - Chief Executive Officer Trevor Lang - Executive Vice President & Chief Financial Officer Lisa Laube - Executive Vice President & Chief Merchandising Officer Conference Call Participants Seth Sigman - Credit Suisse Zack Fadem - Wells Fargo Christopher Horvers - JPMorgan Simeon Gutman - Morgan Stanley Atul Maheswari - UBS Kate Mc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 27-3730271 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Washington, D.C. 20549 For the transition period from to Commission file number 001-38070 Floor & Decor Holdings, Inc. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name ...

Floor & Decor Holdings (NYSE:FND) Q2 2019 Earnings Conference Call August 1, 2019 4:30 PM ET Company Participants Wayne Hood – Vice President of Investor Relations Tom Taylor – Chief Executive Officer Trevor Lang – Executive Vice President and Chief Financial Officer Lisa Laube – Executive Vice President and Chief Merchandising Officer Conference Call Participants Simeon Gutman – Morgan Stanley John Baugh – Stifel Michael Lasser – UBS Chuck Grom – Gordon Haskett Zach Fadem – Wells Fargo Peter Keith – Piper ...

Part I – Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended June 27, 2019, show significant changes from adopting the new lease accounting standard, recognizing substantial right-of-use assets and lease liabilities, while achieving strong growth in net sales, net income, and operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 27, 2019, total assets increased to $2.01 billion from $1.23 billion at year-end 2018, largely due to $720 million in Right of Use assets from a new lease standard, while total liabilities rose to $1.34 billion from $650 million primarily from $792 million in lease liabilities, and cash increased to $51.5 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 27, 2019 | December 27, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $51,450 | $644 | | Inventories, net | $446,397 | $471,014 | | Right of use assets | $720,009 | $— | | **Total assets** | **$2,011,124** | **$1,234,091** | | **Liabilities** | | | | Current portion of lease liabilities | $44,461 | $— | | Lease liabilities (non-current) | $747,595 | $— | | **Total liabilities** | **$1,340,236** | **$649,782** | | **Total stockholders' equity** | **$670,888** | **$584,309** | - The adoption of the new lease accounting standard (ASU No. 2016-02) in Q1 2019 materially impacted the balance sheet, resulting in the addition of **$621 million** of right-of-use assets and a corresponding **$683 million** of lease liabilities[29](index=29&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For the thirteen weeks ended June 27, 2019, net sales grew 19.8% to $520.3 million and net income increased 9.4% to $43.6 million, while for the twenty-six week period, net sales grew 19.1% to $997.4 million and net income rose 3.6% to $74.3 million, with diluted EPS at $0.42 for the quarter Statement of Operations Summary (in thousands, except per share data) | Metric | Thirteen Weeks Ended June 27, 2019 | Thirteen Weeks Ended June 28, 2018 | Twenty-six Weeks Ended June 27, 2019 | Twenty-six Weeks Ended June 28, 2018 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $520,311 | $434,279 | $997,361 | $837,227 | | Gross profit | $217,823 | $177,638 | $419,197 | $343,024 | | Operating income | $45,895 | $37,245 | $85,657 | $73,751 | | Net income | $43,596 | $39,846 | $74,316 | $71,717 | | Diluted EPS | $0.42 | $0.38 | $0.71 | $0.68 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the twenty-six weeks ended June 27, 2019, net cash provided by operating activities increased to $122.2 million from $83.9 million, driven by higher net income and improved working capital, funding $78.2 million in investing activities primarily for new stores, resulting in a $50.8 million net increase in cash Cash Flow Summary (in thousands) | Activity | Twenty-six Weeks Ended June 27, 2019 | Twenty-six Weeks Ended June 28, 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $122,157 | $83,923 | | Net cash used in investing activities | ($78,172) | ($63,438) | | Net cash provided by (used in) financing activities | $6,821 | ($20,494) | | **Net increase (decrease) in cash** | **$50,806** | **($9)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) Key notes detail the company's business as a specialty hard surface flooring retailer operating 106 stores, highlight Laminate/Luxury Vinyl Plank as a key sales driver, explain the material balance sheet impact from adopting the new lease accounting standard, and disclose a putative class action lawsuit filed in May 2019 - The company is a specialty retailer of hard surface flooring, operating **106 warehouse-format stores** and **one design center** as of June 27, 2019[16](index=16&type=chunk)[17](index=17&type=chunk) Disaggregated Revenue by Product Category (Twenty-six Weeks Ended June 27, 2019) | Product Category | Net Sales (in thousands) | % of Net Sales | | :--- | :--- | :--- | | Tile | $261,629 | 26% | | Laminate / Luxury Vinyl Plank | $205,720 | 21% | | Decorative Accessories | $192,034 | 19% | | Installation Materials and Tools | $168,301 | 17% | | Wood | $101,992 | 10% | | Natural Stone | $63,790 | 6% | | Delivery and Other | $3,895 | 1% | | **Total** | **$997,361** | **100%** | - A putative class action lawsuit was filed against the company and certain officers and directors in May 2019, alleging violations of federal securities laws. The company denies the allegations and intends to defend itself vigorously[39](index=39&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong first-half 2019 performance to strategic investments, product innovation, and customer engagement, with net sales growing 19.1% to $997.4 million driven by comparable store sales and new openings, gross margin improving by 100 basis points to 42.0%, and active management of U.S. tariffs on Chinese goods, with planned capital expenditures of $205 million to $215 million for store expansion [Results of Operations](index=22&type=section&id=Results%20of%20Operations) For the twenty-six weeks ended June 27, 2019, net sales increased 19.1% to $997.4 million due to comparable store sales and new openings, gross margin expanded by 100 basis points to 42.0% from better product margins and supply chain efficiencies, and operating income rose 16.1% to $85.7 million despite increased operating expenses Key Performance Indicators | Metric | Thirteen Weeks Ended June 27, 2019 | Thirteen Weeks Ended June 28, 2018 | Twenty-six Weeks Ended June 27, 2019 | Twenty-six Weeks Ended June 28, 2018 | | :--- | :--- | :--- | :--- | :--- | | Comparable store sales | 3.0% | 11.4% | 3.1% | 13.4% | | Comparable average ticket | 1.9% | (0.5)% | 1.5% | 0.6% | | Comparable customer transactions | 1.1% | 12.0% | 1.5% | 12.7% | | Number of warehouse-format stores | 106 | 88 | 106 | 88 | - Net sales for the twenty-six weeks ended June 27, 2019 increased by **$160.1 million (19.1%)**, with **$25.6 million** from a **3.1% comparable store sales increase** and **$134.5 million** from non-comparable stores[63](index=63&type=chunk) - Gross margin for the first half of 2019 improved by **100 basis points** to **42.0%** from **41.0%** in the prior year, driven by better product margins and leveraging supply chain costs on higher sales[65](index=65&type=chunk) [Non-GAAP Financial Measures](index=27&type=section&id=Non-GAAP%20Financial%20Measures) The company uses EBITDA and Adjusted EBITDA to assess financial performance, with Adjusted EBITDA for the twenty-six weeks ended June 27, 2019, increasing to $126.7 million from $98.5 million in the prior-year period, and the Adjusted EBITDA margin expanding to 12.7% from 11.8% Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Twenty-six Weeks Ended June 27, 2019 | Twenty-six Weeks Ended June 28, 2018 | | :--- | :--- | :--- | | Net income | $74,316 | $71,717 | | Depreciation and amortization | $34,263 | $20,911 | | Interest expense | $5,144 | $3,929 | | Income tax expense (benefit) | $6,197 | ($1,895) | | **EBITDA** | **$119,920** | **$94,662** | | Stock compensation expense | $4,418 | $2,952 | | Other adjustments | $2,322 | $896 | | **Adjusted EBITDA** | **$126,660** | **$98,510** | [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 27, 2019, the company had $325.7 million in total liquidity, comprising $51.5 million in cash and $274.2 million available under its ABL Facility, with planned fiscal 2019 capital expenditures of $205 million to $215 million primarily for new store openings, remodels, and IT investments - Total liquidity as of June 27, 2019 was **$325.7 million**, consisting of **$51.5 million** in cash and **$274.2 million** available for borrowing under the ABL Facility[87](index=87&type=chunk) - Planned capital expenditures for fiscal 2019 are approximately **$205 million to $215 million**, with **$125 million to $132 million** allocated for opening **20 new stores**[91](index=91&type=chunk)[96](index=96&type=chunk) [U.S. Tariffs and Global Economy](index=32&type=section&id=U.S.%20Tariffs%20and%20Global%20Economy) The company is addressing the impact of U.S. tariffs on Chinese goods, which affect a significant portion of its products, through mitigation strategies including vendor negotiations, selective price increases, and alternative country sourcing, while monitoring a U.S. International Trade Commission investigation into ceramic tile imports from China - The U.S. has increased tariffs to **25%** on many products from China, which historically supplied about half of the company's products[101](index=101&type=chunk) - Mitigation efforts include negotiating lower costs from vendors, increasing retail prices where appropriate, and sourcing from alternative countries[101](index=101&type=chunk) - The company is also exposed to a preliminary antidumping and countervailing duty investigation on ceramic tile from China, with preliminary determinations expected in September 2019[102](index=102&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to market risk has not materially changed since the fiscal year-end of December 27, 2018 - There have been no material changes in the company's market risk exposure since December 27, 2018[108](index=108&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that as of June 27, 2019, the company's disclosure controls and procedures were not effective due to a previously disclosed material weakness in internal control over financial reporting, for which a remediation plan is underway and expected to be completed before the end of fiscal 2019 - The company's disclosure controls and procedures were deemed **not effective** as of June 27, 2019, due to a previously disclosed material weakness in internal control over financial reporting[110](index=110&type=chunk) - A remediation plan is in progress, and the company expects the material weakness to be remediated prior to the end of fiscal 2019[112](index=112&type=chunk) Part II – Other Information [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a putative class action lawsuit filed in May 2019, with further details provided in Note 5 of the Condensed Consolidated Financial Statements - Refers to the 'Litigation' section in Note 5 of the financial statements for details on legal proceedings[114](index=114&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) A key risk factor highlighted is the ongoing securities class action lawsuit filed in May 2019 against the company, certain officers, directors, and stockholders, which can be costly, divert management attention, and adversely affect financial condition and stock price regardless of outcome - A putative securities class action lawsuit has been filed against the company, which could result in substantial damages, costs, and diversion of management's time[116](index=116&type=chunk)[117](index=117&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) The company provides a disclosure pursuant to the Iran Threat Reduction and Syria Human Rights Act (ITRA), detailing that while Floor & Decor has no dealings with Iran, an affiliate of a significant shareholder (Ares Management) had a portfolio company (AgriBriefing) with five terminated subscription contracts with customers in Iran generating less than €25,000 annually - Disclosure is required under ITRA because a major shareholder, Ares Management, has an affiliate that may be deemed to control a company (AgriBriefing) with minor business activities related to Iran[124](index=124&type=chunk)[125](index=125&type=chunk) - AgriBriefing had **five subscription contracts** with customers in Iran, generating less than **€25,000** in annual revenue. These subscriptions have been terminated[127](index=127&type=chunk)[128](index=128&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including the company's Restated Certificate of Incorporation, Bylaws, a consulting agreement amendment, and certifications by the CEO and CFO as required by the Sarbanes-Oxley Act - Filed exhibits include corporate governance documents, a management contract amendment, Sarbanes-Oxley certifications (302 and 906), and XBRL data files[130](index=130&type=chunk)