Floor & Decor(US:FND)2025-05-01 20:21Financial Performance - Net sales for the quarter ended March 27, 2025, increased to $1,160,740, 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, up from $470,026 in the prior year, indicating a gross margin improvement[17] - Operating income rose to $64,229, 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, slightly down from $50,032 in the same quarter last year, resulting in basic earnings per share of $0.45[17] - Net income for the thirteen weeks ended March 27, 2025, was $48,878,000, a decrease of 2.3% from $50,032,000 for the same period in 2024[23] - Basic earnings per share for the period was $0.45, down from $0.47 in the prior year, while diluted earnings per share also decreased to $0.45 from $0.46[64] - Operating income for the Retail segment was $61.929 million, compared to $57.050 million in the prior year, indicating a growth in operational efficiency[73] Assets and Liabilities - Total assets increased to $5,368,264, up from $5,050,478 as of December 26, 2024, showing a growth of 6.3%[15] - Total liabilities rose to $3,146,501, compared to $2,880,320 at the end of the previous quarter, indicating an increase of 9.3%[15] - Current liabilities totaled $1,253,504, slightly higher than $1,244,192 from the previous quarter, indicating a marginal increase[15] - Long-term debt as of March 27, 2025, was $194,424,000, slightly down from $194,527,000 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 $167.7 million at the end of 2024[70] Cash Flow - Net cash provided by operating activities decreased to $71,164,000 from $147,510,000 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, 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 $60.164 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 $83.161 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 $1,548,000 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 $199.8 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 $11.0 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 $4.502 million to $0.750 million during the thirteen weeks ended March 27, 2025, reflecting a fair value adjustment of $(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 $0.1 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]