FORM8-K. DateofReport(Dateofearliesteventreported):May3,2018 Floor&DecorHoldings,Inc. Delaware (Stateorotherjurisdiction

Transcription

1 UNITEDSTATES SECURITIESANDEXCHANGECOMMISSION Washington,D.C FORM8-K CURRENTREPORT PursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934 DateofReport(Dateofearliesteventreported):May3,2018 Floor&DecorHoldings,Inc. (Exactnameofregistrantasspecifiedinitscharter) Delaware (Stateorotherjurisdiction (Commission (IRSEmployer ofincorporation) FileNumber) IdentificationNo.) 2233LakeParkDrive Smyrna,GA (Addressofprincipalexecutiveoffices) (ZipCode) (404) (Registrant stelephonenumber,includingareacode) NotApplicable (Formernameorformeraddress,ifchangedsincelastreport) ChecktheappropriateboxbelowiftheForm8-Kfilingisintendedtosimultaneouslysatisfythefilingobligationoftheregistrantunderanyofthefollowing provisions(seegeneralinstructiona.2.below): WrittencommunicationspursuanttoRule425undertheSecuritiesAct(17CFR ) SolicitingmaterialpursuanttoRule14a-12undertheExchangeAct(17CFR240.14a-12) Pre-commencementcommunicationspursuanttoRule14d-2(b)undertheExchangeAct(17CFR240.14d-2(b)) Pre-commencementcommunicationspursuanttoRule13e-4(c)undertheExchangeAct(17CFR240.13e-4(c)) IndicatebycheckmarkwhethertheregistrantisanemerginggrowthcompanyasdefinedinRule405oftheSecuritiesActof1933( ofthischapter)or Rule12b 2oftheSecuritiesExchangeActof1934( b 2ofthischapter). Emerginggrowthcompany Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanynewor revisedfinancialaccountingstandardsprovidedpursuanttosection13(a)oftheexchangeact.

2 Item2.02ResultsofOperationsandFinancialCondition. OnMay3,2018,Floor&DecorHoldings,Inc.issuedapressreleaseannouncingitsfinancialresultsforthequarterendedMarch29,2018.Thetextofthe pressreleaseisincludedasexhibit99.1tothisform8-k. TheinformationdisclosedunderthisItem2.02,includingExhibit99.1hereto,isbeingfurnishedandshallnotbedeemed filed forpurposesofsection18 ofthesecuritiesexchangeactof1934andshallnotbedeemedincorporatedbyreferenceintoanyfilingmadeunderthesecuritiesactof1933,exceptas expresslysetforthbyspecificreferenceinsuchfiling. Item9.01.FinancialStatementsandExhibits. (d)exhibits: ExhibitNumberDescription 99.1PressRelease,datedMay3,2018 SIGNATURES PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbythe undersignedhereuntodulyauthorized. FLOOR&DECORHOLDINGS,INC. Date: May3,2018 By: /s/davidv.christopherson Name: DavidV.Christopherson Title: ExecutiveVicePresident,Secretaryand GeneralCounsel

3 ExhibitIndex ExhibitNo. Description 99.1 PressRelease,datedMay3,2018

4 Exhibit99.1 Floor&DecorHoldings,Inc.AnnouncesFirstQuarterFiscal2018FinancialResults Netsalesincreased31.1%fromfirstquarter2017to$402.9million Comparablestoresalesincreased15.6%fromfirstquarter2017 Dilutedearningspershare( EPS )increased130.8%to$0.30from$0.13inthefirstquarter2017;adjusteddilutedeps increased100.0%to$0.26from$0.13inthefirstquarter2017 Raisingfullyearsalesandearningsoutlookreflectingyear-to-dateperformance ATLANTA--(BUSINESSWIRE)--May3,2018--Floor&DecorHoldings,Inc.(NYSE:FND)( We, Our the Company, or Floor&Decor )announcesits financialresultsforthefirstquarteroffiscal2018,whichendedmarch29,2018. TomTaylor,ChiefExecutiveOfficer,stated, Weareverypleasedwithourresultsinthefirstquarterthatonceagaindemonstratethepositiveresponsecustomers havetofloor&decor shighlydifferentiated,multi-channel,hardsurfaceflooringandaccessoriesbusiness.saleswereaboveourexpectations,andwhen combinedwithstrongstoreexecutionandcostcontrols,wegrewouradjusteddilutedeps100%.theseresultsweremadepossiblebyourhardworkingassociates andtheircommitmenttoprovidingoutstandingservicetoourcustomers. Mr.Taylorcontinued, Wecontinuetomakeprogressonourstrategicprioritiesthatenhanceourin-storeandconnectedcustomerexperience,whichareresonating withbothconsumersandprocustomersacrossthecountry.aswelooktotheremainderof2018andbeyond,weremainfocusedonexecutingourkeygrowth strategiesaswecapitalizeonthesignificantgrowthopportunitythatexistsforfloor&decor. Unlessindicatedotherwise,theinformationinthisreleasehasbeenadjustedtogiveeffecttoa for-onestocksplitofourcommonstockeffectedonApril 24,2017.See ComparableStoreSales belowforinformationonhowthecompanycalculatesitscomparablestoresalesgrowth. FortheMarch29,2018 Netsalesincreased31.1%to$402.9millionfrom$307.3millioninthefirstquarteroffiscal2017.Comparablestoresalesincreased15.6%,includingan estimated400basispointbenefitfrompost-hurricanedemandinhouston. TheCompanyopenedonenewstoreduringthefirstquarteroffiscal2018,endingthequarterwith84warehouseformatstores. Operatingincomeincreased61.0%to$36.5millionfrom$22.7millioninthefirstquarteroffiscal2017.Operatingmarginincreased170basispointsto 9.1%. Netincomeincreased186.4%to$31.9millioncomparedto$11.1millioninthefirstquarteroffiscal2017.DilutedEPSwas$0.30comparedto$0.13in thefirstquarteroffiscal2017. Adjustednetincome*increased103.2%to$26.7millioncomparedto$13.2millioninthefirstquarteroffiscal2017.AdjusteddilutedEPS*was$0.26 comparedto$0.13inthefirstquarteroffiscal2017,anincreaseof100.0%. AdjustedEBITDA*increased49.9%to$47.8millioncomparedto$31.9millioninthefirstquarteroffiscal2017. *Non-GAAPfinancialmeasures.Pleasesee Non-GAAPFinancialMeasures and ReconciliationofGAAPtoNon-GAAPFinancialMeasures belowformore information. BalanceSheetHighlightsasofMarch29,2018 Totalliquiditywas$160.9millionasofMarch29,2018,whichwasprimarilyfromtheavailabilityonourrevolvingcreditfacility. Totaldebtwas$177.6millionasofMarch29,2018,consistingofoutstandingcurrentandlong-termportionsofoursecuredtermloanandrevolvingcredit facilities.

5 SecondQuarterandFiscal2018Outlook (Inmillions,exceptEPSandstorecount) ThirteenWeeks Ended6/28/2018 Netsales $430-$437 Comparablestoresales 11.0%to13.0% DilutedEPS $0.23-$0.25 Dilutedweightedaveragesharesoutstanding AdjustedEBITDA $46.4-$49.1 Warehouseformatstorecount 88 Newwarehouseformatstores 4 UpdatedGuidance PriorGuidance TwelveMonths TwelveMonths Ended12/27/2018 Ended12/27/2018 Netsales $1,705-$1,735 $1,690-$1,730 Comparablestoresales 9.5%to11.5% 8.5%to11.5% AdjusteddilutedEPS $0.93-$1.01 $0.91-$1.00 Dilutedweightedaveragesharesoutstanding AdjustedEBITDA $190.8-$201.3 $189.0-$201.3 Depreciationandamortization Approximately$48 Approximately$48 Interestexpense Approximately$9 Approximately$10 Taxrate 23.4%fortheremainderoffiscal % Warehouseformatstorecount Newwarehouseformatstores CapitalExpenditures $150-$158 $140-$150 Theaboveguidanceincludescertainnon-GAAPfinancialmeasures(namelyAdjustedDilutedEPSandAdjustedEBITDA).Pleasesee Non-GAAPFinancial Measures and ReconciliationofGAAPtoNon-GAAPFinancialMeasures belowformoreinformation. ConferenceCallDetails Aconferencecalltodiscussthefirstquarterfiscal2018financialresultsisscheduledfortoday,May3,2018,at9:00a.m.EasternTime.Aliveaudiowebcastof theconferencecall,togetherwithrelatedmaterials,willbeavailableonlineatir.flooranddecor.com. Arecordedreplayoftheconferencecallisexpectedtobeavailableapproximatelytwohoursoftheconclusionofthecallandcanbeaccessedbothonlineat ir.flooranddecor.comandbydialing (internationalcallerspleasedial ).thepinnumbertoaccessthetelephonereplayis ThereplaywillbeavailableuntilMay10,2018. AboutFloor&DecorHoldings,Inc. Floor&Decorisamulti-channelspecialtyretailerofhardsurfaceflooringandrelatedaccessories,offeringabroadin-stockassortmentoftile,wood,laminateand naturalstoneflooringalongwithdecorativeandinstallationaccessoriesateverydaylowprices.

6 ComparableStoreSales Comparablestoresales refertoperiod-over-periodcomparisonsofournetsalesamongthecomparablestorebase,whichhashistoricallybeenwhencustomers obtainedpossessionoftheirproduct.startingin2018,whenaccountingstandardsupdateno ,"revenuefromcontractswithcustomers (Topic606) wasadopted,ourcomparablestoresalesrefertoperiod-over-periodcomparisonsofournetsalesbasedonwhenthecustomerobtainscontroloftheirproduct, whichistypicallyatthetimeofsaleandmaybeslightlydifferentthanourhistoricallyreportednetsalesduetotimingofwhenfinaldeliveryoftheproducthas occurred.astoreisincludedinthecomparablestoresalescalculationonthefirstdayofthethirteenthfullfiscalmonthfollowingastore sopening,whichiswhen webelievecomparabilityhasbeenachieved.sinceoure-commercesalesarefulfilledbyindividualstores,theyareincludedincomparablestoresalesonlytothe extentthefulfillingstoremeetstheabovementionedstorecriteria.changesinourcomparablestoresalesbetweentwoperiodsarebasedonnetsalesforstoresthat wereinoperationduringbothofthetwoperiods.anychangeinsquarefootageofanexistingcomparablestore,includingremodelsandrelocations,doesnot eliminatethatstorefrominclusioninthecalculationofcomparablestoresales.storesthatareclosedtemporarilyandrelocatedwithintheirprimarytradeareasare includedinsamestoresales.additionally,anystoresthatwereclosedduringthecurrentorpriorfiscalyearareexcludedfromthedefinitionofcomparablestores. Non-GAAPFinancialMeasures Adjustednetincome,AdjusteddilutedEPS,EBITDAandAdjustedEBITDA(whichareshowninthereconciliationsbelow)havebeenpresentedinthisearnings releaseassupplementalmeasuresoffinancialperformancethatarenotrequiredby,orpresentedinaccordancewith,accountingprinciplesgenerallyacceptedinthe UnitedStates("GAAP").WedefineAdjustednetincomeasnetincomeadjustedtoeliminatetheimpactofcertainitemsthatwedonotconsiderindicativeofour coreoperatingperformanceandthetaxeffectrelatedtothoseitems.wedefineadjusteddilutedepsasadjustednetincomedividedbyadjusteddilutedweighted averagesharesoutstanding(i.e.,theweightedaveragesharesoutstandingduringtherelevantperiodplustheweightedaverageimpactofissuingsharesinourinitial publicoffering(our IPO ).WedefineEBITDAasnetincomebeforeinterest,lossonearlyextinguishmentofdebt,taxes,depreciationandamortization.We defineadjustedebitdaasnetincomebeforeinterest,lossonearlyextinguishmentofdebt,taxes,depreciationandamortization,adjustedtoeliminatetheimpact ofcertainitemsthatwedonotconsiderindicativeofourcoreoperatingperformance.reconciliationsofthesemeasurestothemostdirectlycomparablegaap financialmeasurearesetforthinthetablesbelow. Adjustednetincome,AdjusteddilutedEPS,EBITDAandAdjustedEBITDAarekeymetricsusedbymanagementandourboardofdirectorstoassessour financialperformanceandenterprisevalue.webelievethatadjustednetincome,adjusteddilutedeps,ebitdaandadjustedebitdaareusefulmeasures,as theyeliminatecertainitemsthatarenotindicativeofourcoreoperatingperformanceandfacilitateacomparisonofourcoreoperatingperformanceonaconsistent basisfromperiodtoperiod.wealsouseadjustedebitdaasabasistodeterminecovenantcompliancewithrespecttoourcreditfacilities,tosupplementgaap measuresofperformancetoevaluatetheeffectivenessofourbusinessstrategies,tomakebudgetingdecisions,andtocompareourperformanceagainstthatofother peercompaniesusingsimilarmeasures.adjustednetincome,adjusteddilutedeps,ebitdaandadjustedebitdaarealsousedbyanalysts,investorsandother interestedpartiesasperformancemeasurestoevaluatecompaniesinourindustry. Adjustednetincome,AdjusteddilutedEPS,EBITDAandAdjustedEBITDAarenon-GAAPmeasuresofourfinancialperformanceandshouldnotbeconsidered asalternativestonetincomeordilutedepsasameasureoffinancialperformance,oranyotherperformancemeasurederivedinaccordancewithgaapandthey shouldnotbeconstruedasaninferencethatourfutureresultswillbeunaffectedbyunusualornon-recurringitems.additionally,adjustednetincome,ebitda andadjustedebitdaarenotintendedtobemeasuresofliquidityorfreecashflowformanagement'sdiscretionaryuse.inaddition,thesenon-gaapmeasures excludecertainnon-recurringandothercharges.eachofthesenon-gaapmeasureshasitslimitationsasananalyticaltool,andyoushouldnotconsiderthemin isolationorasasubstituteforanalysisofourresultsasreportedundergaap.inevaluatingadjustednetincome,adjusteddilutedeps,ebitdaandadjusted EBITDA,youshouldbeawarethatinthefuturewewillincurexpensesthatarethesameasorsimilartosomeoftheitemseliminatedintheadjustmentsmadeto determineadjustednetincome,adjusteddilutedeps,ebitdaandadjustedebitda,suchasstockcompensationexpense,lossonassetdisposal,andother adjustments.ourpresentationofadjustednetincome,adjusteddilutedeps,ebitdaandadjustedebitdashouldnotbeconstruedtoimplythatourfuture resultswillbeunaffectedbyanysuchadjustments.definitionsandcalculationsofadjustednetincome,adjusteddilutedeps,ebitdaandadjustedebitda differamongcompaniesintheretailindustry,andthereforeadjustednetincome,adjusteddilutedeps,ebitdaandadjustedebitdadisclosedbyusmaynot becomparabletothemetricsdisclosedbyothercompanies.

7 Pleasesee ReconciliationofGAAPtoNon-GAAPFinancialMeasures belowforreconciliationsofnon-gaapfinancialmeasuresusedinthisreleasetotheir mostdirectlycomparablegaapfinancialmeasures. Floor&DecorHoldings,Inc. ConsolidatedStatementsofIncome (Inthousands,exceptpersharedata) (Unaudited) 3/29/2018 3/30/2017 %Increase Actual %ofsales Actual %ofsales (Decrease) Netsales $ 402, % $ 307, % 31.1% Costofsales 237, , Grossprofit 165, , Operatingexpenses: Selling&storeoperatingexpenses 102, , General&administrativeexpenses 23, , Pre-openingexpenses 2, , (28.6) Totaloperatingexpenses 128, , Operatingincome 36, , Interestexpense 1, , (67.0) Incomebeforeincometaxes 34, , Provisionforincometaxes 2, , (53.5) Netincome $ 31, % $ 11, % 186.4% Basicweightedaveragesharesoutstanding 95,714 83,529 Dilutedweightedaveragesharesoutstanding 104,665 88,645 Basicearningspershare $ 0.33 $ % Dilutedearningspershare $ 0.30 $ %

8 ConsolidatedBalanceSheets (Inthousands,exceptshareandpersharedata) (Unaudited) Asof Asof December March29, 28, Assets Currentassets: Cashandcashequivalents $ 572 $ 556 Incometaxesreceivable 9,766 12,472 Receivables,net 38,265 54,041 Inventories,net 426, ,950 Prepaidexpensesandothercurrentassets 11,096 8,193 Totalcurrentassets 486, ,212 Fixedassets,net 245, ,952 Intangibleassets,net 109, ,362 Goodwill 227, ,447 Otherassets 7,256 7,019 Totallong-termassets 589, ,780 Totalassets $1,075,882 $1,067,992 Liabilitiesandstockholders equity Currentliabilities: Currentportionoftermloans $ 3,500 $ 3,500 Tradeaccountspayable 255, ,730 Accruedexpenses 68,834 74,547 Deferredrevenue 3,742 22,523 Totalcurrentliabilities 331, ,300 Termloans 143, ,562 Revolvinglineofcredit 26,800 41,000 Deferredrent 28,450 25,570 Deferredincometaxliabilities,net 29,920 27,218 Tenantimprovementallowances 25,863 26,779 Otherliabilities 3, Totallong-termliabilities 257, ,832 Totalliabilities 588, ,132 Commitmentsandcontingencies Stockholders equity Capitalstock: Preferredstock,$0.001parvalue;10,000,000sharesauthorized;0sharesissuedandoutstandingatMarch29,2018andDecember28,2017 CommonstockClassA,$0.001parvalue;450,000,000sharesauthorized;96,094,164sharesissuedandoutstandingatMarch29,2018and95,509,179issuedand outstandingatdecember28, CommonstockClassB,$0.001parvalue;10,000,000sharesauthorized;0sharesissuedandoutstandingatMarch29,2018and0sharesissuedandoutstandingat December28,2017 CommonstockClassC,$0.001parvalue;30,000,000sharesauthorized;0sharesissuedandoutstandingatMarch29,2018and0sharesissuedandoutstandingat December28,2017 Additionalpaid-incapital 328, ,419 Accumulatedothercomprehensiveincome(loss),net 225 (205) Retainedearnings 159, ,550 Totalstockholders equity 487, ,860 Totalliabilitiesandstockholders equity $1,075,882 $1,067,992

9 ConsolidatedStatementsofCashFlows (Inthousands) (Unaudited) March29, March30, Operatingactivities Netincome $ 31,871 $ 11,128 Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities: Depreciationandamortization 11,534 8,933 Amortizationoftenantimprovementallowances (1,045) (755) Deferredincometaxes 2,111 5,453 Interestcapderivativecontracts (535) Stockbasedcompensationexpense 1, Changesinoperatingassetsandliabilities: Receivables,net 15,775 1,150 Inventories,net (9,262) (22,838) Otherassets (2,204) (2,755) Tradeaccountspayable (3,723) 47,473 Accruedexpenses (12,926) (7,073) Incometaxes Deferredrevenue 1,500 6,470 Deferredrent 2,707 2,785 Tenantimprovementallowances 128 4,495 Other 2, Netcashprovidedbyoperatingactivities 40,612 56,074 Investingactivities Purchasesoffixedassets (27,841) (19,801) Netcashusedininvestingactivities (27,841) (19,801) Financingactivities Borrowingsonrevolvinglineofcredit 51,900 25,300 Paymentsonrevolvinglineofcredit (66,100) (60,800) Paymentsontermloans (1,750) (875) Proceedsfromexerciseofstockoptions 3, Netcashusedinfinancingactivities (12,755) (36,279) Netincrease(decrease)incashandcashequivalents 16 (6) Cashandcashequivalents,beginningoftheperiod Cashandcashequivalents,endoftheperiod $ 572 $ 445 Supplementaldisclosuresofcashflowinformation Cashpaidforinterest $ 2,368 $ 7,945 Cashpaidforincometaxes $ 19 $ Fixedassetsaccruedattheendoftheperiod $ 16,332 $ 7,372

10 ReconciliationofGAAPtoNon-GAAPFinancialMeasures (Inthousands,exceptEPS) (Unaudited) Adjusteddilutedweightedaveragesharesoutstanding 3/29/2018 3/30/2017 Dilutedweightedaveragesharesoutstanding(GAAP) 104,665 88,645 AdjustmentsforissuanceofsharesatIPO 10,147 Adjusteddilutedweightedaveragesharesoutstanding 104,665 98,792 AdjustednetincomeandAdjusteddilutedEPS 3/29/2018 3/30/2017 Netincome(GAAP): $ 31,871 $ 11,128 InterestduetoIPO (a) 2,730 Termloanrepricing (b) 491 Hurricanedisasterrecovery (c) (311) Taxbenefitofstockoptionexercises (d) (4,902) Taximpactofadjustmentstonetincome (e) 73 (1,192) Adjustednetincome $ 26,731 $ 13,157 Adjusteddilutedweightedaveragesharesoutstanding 104,665 98,792 Adjusteddilutedearningspershare $ 0.26 $ 0.13 (a) AdjustmenttodecreaseinterestexpenseduetoutilizingnetIPOproceedsofapproximately$192.0milliontopaydownaportionoftheTermLoanFacility(asdescribedintheCompany s AnnualReportforfiscal2017filedwiththeSecuritiesandExchangeCommissiononMarch5,2018(the AnnualReport )). (b) AdjustmenttoreflectthedecreaseininterestexpenseduetotherepricingoftheTermLoanFacilityonMarch31,2017,tolowerourinterestrateby0.75%andanother0.50%effective October1,2017(asdescribedintheAnnualReport). (c) NetinsurancerecoveriesfromhurricanesHarveyandIrma. (d) Taxbenefitduetostockoptionexercises. (e) Adjustmentsfortaxesrelatedtopre-taxadjustmentsabove. EBITDAandAdjustedEBITDA 3/29/2018 3/30/2017 Netincome(GAAP): $ 31,871 $ 11,128 Depreciationandamortization (a) 10,228 7,768 Interestexpense 1,784 5,414 Incometaxexpense 2,851 6,130 EBITDA 46,734 30,440 Stockcompensationexpense (b) 1, Other (c) (322) 572 AdjustedEBITDA $ 47,827 $ 31,897 (a) Netofamortizationoftenantimprovementallowancesandexcludesdeferredfinancingamortization,whichisincludedasapartofinterestexpenseinthetableabove. (b) Non-cashchargesrelatedtostock-basedcompensationprograms,whichvaryfromperiodtoperioddependingontimingofawardsandforfeitures. (c) Otheradjustmentsincludeamountsmanagementdoesnotconsiderindicativeofourcoreoperatingperformance.AmountsforthethirteenweeksendedMarch29,2018andMarch30,2017 primarilyrelatetocostsinconnectionwiththenetinsurancerecoveriesfromhurricanesharveyandirmaandtheipoin2017.

11 GuidanceReconciliation SecondQuarter2018 (Inmillions,exceptpersharedata) (Unaudited) Adjusteddilutedweightedaveragesharesoutstanding 6/28/2018 6/29/2017 LowEnd HighEnd Actual Dilutedweightedaveragesharesoutstanding(GAAP) AdjustmentsforissuanceofsharesatIPO 3.0 Adjusteddilutedweightedaveragesharesoutstanding AdjustednetincomeandAdjusteddilutedEPS 6/28/2018 6/29/2017 LowEnd HighEnd Actual Netincome(GAAP): $ 24.1 $ 26.2 $ 20.4 InterestduetoIPO (a) 1.4 Termloanrepricing (b) 0.2 SecondaryOfferingcosts (c) 0.3 Lossonearlyextinguishmentofdebt (d) 5.4 Taxbenefitofstockoptionexercises (e) (4.4) Taximpactofadjustmentstonetincome (f) (2.7) Adjustednetincome $ 24.1 $ 26.2 $ 20.6 Adjustedweightedaveragesharesoutstanding AdjusteddilutedEPS $ 0.23 $ 0.25 $ 0.20 (a) AdjustmenttodecreaseinterestexpenseduetoutilizingnetIPOproceedsofapproximately$192.0milliontopaydownaportionoftheTermLoanFacility. (b) AdjustmenttoreflectthedecreaseininterestexpenseduetotherepricingoftheTermLoanFacilityonOctober1,2017,tolowerourinterestrateby0.50%(asdescribedintheAnnual Report). (c) ReflectscostsaccruedinconnectionwithasecondarypublicofferingoftheCompany scommonstockbycertainofthecompany sstockholderscompletedonjuly25,2017(the July SecondaryOffering ).TheCompanydidnotsellanysharesintheJulySecondaryOfferinganddidnotreceiveanyproceedsfromthesalesofsharesbythesellingstockholders. (d) ReflectstheuseofnetproceedsfromtheIPOofapproximately$192.0milliontorepayaportionoftheamountsoutstandingundertheTermLoanFacility,whichresultedinalosson extinguishmentofdebtintheamountofapproximately$5.4million. (e) Taxbenefitduetostockoptionexercises. (f) Adjustmentfortaxesrelatedtopre-taxadjustmentsabove.

12 EBITDAandAdjustedEBITDA 6/28/2018 6/29/2017 LowEnd HighEnd Actual Netincome(GAAP): $ 24.1 $ 26.2 $ 20.4 Depreciationandamortization (a) Interestexpense Lossonearlyextinguishmentofdebt (b) 5.4 Incometaxexpense EBITDA Stockcompensationexpense (c) Other (d) 0.3 AdjustedEBITDA $ 46.4 $ 49.1 $ 43.7 (a) Netofamortizationoftenantimprovementallowancesandexcludesdeferredfinancingamortization,whichisincludedasapartofinterestexpenseinthetableabove. (b) ReflectstheuseofnetproceedsfromtheIPOofapproximately$192.0milliontorepayaportionoftheamountsoutstandingundertheTermLoanFacility,whichresultedinalosson extinguishmentofdebtintheamountofapproximately$5.4million. (c) Non-cashchargesrelatedtostock-basedcompensationprograms,whichvaryfromperiodtoperioddependingontimingofawardsandforfeitures. (d) Otheradjustmentsincludeamountsmanagementdoesnotconsiderindicativeofourcoreoperatingperformance.AmountsforthethirteenweeksendedJune29,2017,relatetocostsin connectionwiththeipoandthejulysecondaryoffering. GuidanceReconciliation-FiscalYear2018 (Inmillions,exceptpersharedata) (Unaudited) Adjusteddilutedweightedaveragesharesoutstanding YearEnded 12/27/ /28/2017 LowEnd HighEnd Actual Dilutedweightedaveragesharesoutstanding(GAAP) AdjustmentsforissuanceofsharesatIPO 3.3 Adjusteddilutedweightedaveragesharesoutstanding AdjustednetincomeandAdjusteddilutedEPS YearEnded 12/27/ /28/2017 LowEnd HighEnd Actual Netincome(GAAP): $ $ $ InterestduetoIPO (a) 4.1 Termloanrepricing (b) 0.9 SecondaryOfferingcosts (c) 1.7 Hurricanedisasterexpenses (d) (0.3) (0.3) 0.1 Lossonearlyextinguishmentofdebt (e) 5.4 Taxbenefitofstockoptionexercises (f) (4.9) (4.9) (21.8) Researchanddevelopmenttaxcredits (g) (0.4) Deferredtaxadjustmentfortaxreform (h) (17.8) Taximpactofadjustmentstonetincome (i) (3.9) Adjustednetincome $ 98.2 $ $ 71.0 Adjustedweightedaveragesharesoutstanding AdjusteddilutedEPS $ 0.93 $ 1.01 $ 0.69 Certainnumbersmaynotsumduetorounding (a) AdjustmenttodecreaseinterestexpenseduetoutilizingnetIPOproceedsofapproximately$192.0milliontopaydownaportionoftheTermLoanFacility. (b) AdjustmenttoreflectthedecreaseininterestexpenseduetotherepricingoftheTermLoanFacilityonMarch31,2017,tolowerourinterestrateby0.75%andanother0.50%effective October1,2017(asdescribedintheAnnualReport). (c) ReflectscostsaccruedinconnectionwiththeJulySecondaryOfferingandasecondarypublicofferingoftheCompany scommonstockbycertainofthecompany sstockholderscompleted onnovember20,2017(the NovemberSecondaryOffering and,togetherwiththejulysecondaryoffering,the SecondaryOfferings ).TheCompanydidnotsellanysharesinthe SecondaryOfferingsanddidnotreceiveanyproceedsfromthesalesofsharesbythesellingstockholders. (d) Expensesandlosses,netofrecoveries,fromhurricanesHarveyandIrmarecordedin2018and2017. (e) ReflectstheuseofnetproceedsfromtheIPOofapproximately$192.0milliontorepayaportionoftheamountsoutstandingundertheTermLoanFacility,whichresultedinalosson extinguishmentofdebtintheamountofapproximately$5.4millionin2017. (f) Taxbenefitduetostockoptionexercises. (g) Researchanddevelopmenttaxcreditsrelatedtopriorperiodsrecordedasareductionofcurrentyeartaxexpense. (h) Effectofourdeferredtaxrateadjustmenttoreflecttheexpectedrateourdeferredtaxliabilitiesandassetswillactualizeatinfutureperiodsrelatedtothe2017taxreformactpassedin December2017. (i) Adjustmentfortaxesrelatedtopre-taxadjustmentsabove.

13 EBITDAandAdjustedEBITDA YearEnded 12/27/ /28/2017 LowEnd HighEnd Actual Netincome(GAAP): $ $ $ Depreciationandamortization (a) Interestexpense Lossonearlyextinguishmentofdebt (b) 5.4 Incometaxexpense (4.2) EBITDA Stockcompensationexpense (c) Lossonassetdisposal 0.1 Other (d) (0.3) (0.3) 2.4 AdjustedEBITDA $ $ $ (a) Netofamortizationoftenantimprovementallowancesandexcludesdeferredfinancingamortization,whichisincludedasapartofinterestexpenseinthetableabove. (b) ReflectstheuseofnetproceedsfromtheIPOofapproximately$192.0milliontorepayaportionoftheamountsoutstandingundertheTermLoanFacility,whichresultedinalosson extinguishmentofdebtintheamountofapproximately$5.4million. (c) Non-cashchargesrelatedtostock-basedcompensationprograms,whichvaryfromperiodtoperioddependingontimingofawardsandforfeitures. (d) Otheradjustmentsincludeamountsmanagementdoesnotconsiderindicativeofourcoreoperatingperformance.Amountsfortheyearended2018relatetonetinsurancerecoveriesfrom hurricanesharveyandirma.amountsfortheyearended2017relatetocostsinconnectionwiththeipo,secondaryofferings,andexpensesandlosses,netofrecoveries,fromhurricanes HarveyandIrma.

14 Forward-LookingStatements Thisreleaseandtheassociatedwebcast/conferencecallcontainforward-lookingstatements,includingwithrespecttotheCompany sestimatednetsales, comparablestoresalesgrowth,dilutedeps,dilutedweightedaveragesharesoutstanding,adjustedebitda,warehouseformatstorecountandnewwarehouse formatstoresforboththethirteenweeksendedjune28,2018andalloffiscal2018andwithrespecttothecompany sestimateddepreciationandamortization expenses,interestexpense,taxrateandcapitalexpendituresforfiscal2018.allstatementsotherthanstatementsofhistoricalfactcontainedinthisrelease, includingstatementsregardingthecompany sfutureoperatingresultsandfinancialposition,businessstrategyandplansandobjectivesofmanagementforfuture operations,areforward-lookingstatements.thesestatementsinvolveknownandunknownrisks,uncertaintiesandotherimportantfactorsthatmaycausethe Company sactualresults,performanceorachievementstobemateriallydifferentfromanyfutureresults,performanceorachievementsexpressedorimpliedbythe forward-lookingstatements.forward-lookingstatementsarebasedonmanagement scurrentexpectationsandassumptionsregardingthecompany sbusiness,the economyandotherfutureconditions,includingtheimpactofrecentnaturaldisastersonsales. Insomecases,youcanidentifyforward-lookingstatementsbytermssuchas may, will, should, expects, intends, plans, anticipates, could, seeks, intends, target, projects, contemplates, believes, estimates, predicts, budget, potential, focusedon or continue orthenegativeof thesetermsorothersimilarexpressions.theforward-lookingstatementsinthisreleaseareonlypredictions.althoughthecompanybelievesthattheexpectations reflectedintheforward-lookingstatementsinthisreleasearereasonable,thecompanycannotguaranteefutureevents,results,performanceorachievements.a numberofimportantfactorscouldcauseactualresultstodiffermateriallyfromthoseindicatedbytheforward-lookingstatementsinthisreleaseortheassociated webcast/conferencecall,including,withoutlimitation,thosefactorsdescribedin RiskFactors, SpecialNoteRegardingForward-LookingStatements, Management sdiscussionandanalysisoffinancialconditionandresultsofoperations, and Business sectionsandelsewhereintheannualreportonform 10-K. Becauseforward-lookingstatementsareinherentlysubjecttorisksanduncertainties,someofwhichcannotbepredictedorquantified,youshouldnotrelyonthese forward-lookingstatementsaspredictionsoffutureevents.theforward-lookingstatementscontainedinthisreleaseortheassociatedwebcast/conferencecall speakonlyasofthedatehereof.newrisksanduncertaintiesariseovertime,anditisnotpossibleforthecompanytopredictthoseeventsorhowtheymayaffect thecompany.ifachangetotheeventsandcircumstancesreflectedinthecompany sforward-lookingstatementsoccurs,thecompany sbusiness,financial conditionandoperatingresultsmayvarymateriallyfromthoseexpressedinthecompany sforward-lookingstatements.exceptasrequiredbyapplicablelaw,the Companydoesnotplantopubliclyupdateorreviseanyforward-lookingstatementscontainedhereinorintheassociatedwebcast/conferencecall,whetherasa resultofanynewinformation,futureeventsorotherwise,includingthecompany sestimatednetsales,comparablestoresalesgrowth,dilutedeps,diluted weightedaveragesharesoutstanding,adjustedebitda,warehouseformatstorecountandnewwarehouseformatstoresforboththethirteenweeksendedjune 28,2018andalloffiscal2018andwithrespecttotheCompany sestimateddepreciationandamortizationexpenses,interestexpense,taxrateandcapital expendituresforfiscal2018. CONTACT: InvestorContacts: Floor&DecorHoldings,Inc. MatthewMcConnell or ICR,Inc. FarahSoi/RachelSchacter