(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Not Applicable | |||||||||||||||||
(Registrant’s telephone number, including area code) | (Former name, former address and former fiscal year, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated Filer | ☐ | |||||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | |||||||||||||||
Emerging Growth Company |
Class | Outstanding at August 1, 2022 | |||||||
Class A common stock, $0.001 par value per share |
Page | |||||||||||
in thousands, except for share and per share data | As of June 30, 2022 | As of December 30, 2021 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Income taxes receivable | |||||||||||
Receivables, net | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Fixed assets, net | |||||||||||
Right-of-use assets | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Deferred income tax assets, net | |||||||||||
Other assets | |||||||||||
Total long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Current portion of term loans | $ | $ | |||||||||
Current portion of lease liabilities | |||||||||||
Trade accounts payable | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Term loan | |||||||||||
Revolving line of credit | |||||||||||
Lease liabilities | |||||||||||
Deferred income tax liabilities, net | |||||||||||
Other liabilities | |||||||||||
Total long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and Contingencies (Note 5) | |||||||||||
Stockholders’ equity | |||||||||||
Capital stock: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock Class A, $ | |||||||||||
Common stock Class B, $ | |||||||||||
Common stock Class C, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income, net | |||||||||||
Retained earnings | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Thirteen Weeks Ended | Twenty-six Weeks Ended | ||||||||||||||||||||||
in thousands, except for per share data | June 30, 2022 | July 1, 2021 | June 30, 2022 | July 1, 2021 | |||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling and store operating | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Pre-opening | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Change in fair value of hedge instruments, net of tax | ( | ||||||||||||||||||||||
Total comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
in thousands | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Shares issued under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Common stock redeemed for tax liability | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Other comprehensive gain, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Forfeiture of restricted stock awards | ( | — | — | — | — | — | |||||||||||||||||||||||||||||
Issuance of common stock upon vesting of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Common stock redeemed for tax liability | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Other comprehensive gain, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Total Stockholders' Equity | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
in thousands | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | — | — | — | — | — | ||||||||||||||||||||||||||||||
Forfeiture of restricted stock awards | ( | — | — | — | — | — | |||||||||||||||||||||||||||||
Issuance of common stock upon vesting of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Shares issued under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Common stock redeemed for tax liability | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Other comprehensive gain, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, April 1, 2021 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | — | — | — | — | — | ||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Shares issued under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of stock related to acquisition | — | — | — | ||||||||||||||||||||||||||||||||
Common stock redeemed for tax liability | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, July 1, 2021 | $ | $ | $ | $ | $ |
Twenty-six Weeks Ended | |||||||||||
in thousands | June 30, 2022 | July 1, 2021 | |||||||||
Operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation expense | |||||||||||
Deferred income taxes | |||||||||||
Change in fair value of contingent earn-out liabilities | |||||||||||
Interest cap derivative contracts | |||||||||||
Changes in operating assets and liabilities, net of effects of acquisition: | |||||||||||
Receivables, net | ( | ( | |||||||||
Inventories, net | ( | ( | |||||||||
Trade accounts payable | |||||||||||
Accrued expenses and other current liabilities | ( | ||||||||||
Income taxes | ( | ( | |||||||||
Deferred revenue | |||||||||||
Other, net | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Investing activities | |||||||||||
Purchases of fixed assets | ( | ( | |||||||||
Acquisitions, net of cash acquired | ( | ( | |||||||||
Proceeds from sales of property | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing activities | |||||||||||
Borrowings on revolving line of credit | |||||||||||
Payments on revolving line of credit | ( | ( | |||||||||
Proceeds from term loans | |||||||||||
Payments on term loans | ( | ( | |||||||||
Payments of contingent earn-out consideration | ( | ||||||||||
Proceeds from exercise of stock options | |||||||||||
Proceeds from employee stock purchase plan | |||||||||||
Debt issuance costs | ( | ||||||||||
Tax payments for stock-based compensation awards | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net (decrease) increase in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of the period | |||||||||||
Cash and cash equivalents, end of the period | $ | $ | |||||||||
Supplemental disclosures of cash flow information | |||||||||||
Buildings and equipment acquired under operating leases | $ | $ | |||||||||
Cash paid for interest, net of capitalized interest | $ | $ | |||||||||
Cash paid for income taxes, net of refunds | $ | $ | |||||||||
Fixed assets accrued at the end of the period | $ | $ |
Thirteen Weeks Ended | ||||||||||||||||||||||||||
June 30, 2022 | July 1, 2021 | |||||||||||||||||||||||||
Product Category | Net Sales | % of Net Sales | Net Sales | % of Net Sales | ||||||||||||||||||||||
Laminate / luxury vinyl plank | $ | % | $ | % | ||||||||||||||||||||||
Tile | ||||||||||||||||||||||||||
Decorative accessories / wall tile | ||||||||||||||||||||||||||
Installation materials and tools | ||||||||||||||||||||||||||
Wood | ||||||||||||||||||||||||||
Natural stone | ||||||||||||||||||||||||||
Adjacent categories (1) | ||||||||||||||||||||||||||
Other (2) | ||||||||||||||||||||||||||
Total | $ | % | $ | % |
Twenty-six Weeks Ended | ||||||||||||||||||||||||||
June 30, 2022 | July 1, 2021 | |||||||||||||||||||||||||
Product Category | Net Sales | % of Net Sales | Net Sales | % of Net Sales | ||||||||||||||||||||||
Laminate / luxury vinyl plank | $ | % | $ | % | ||||||||||||||||||||||
Tile | ||||||||||||||||||||||||||
Decorative accessories / wall tile | ||||||||||||||||||||||||||
Installation materials and tools | ||||||||||||||||||||||||||
Wood | ||||||||||||||||||||||||||
Natural stone | ||||||||||||||||||||||||||
Adjacent categories (1) | ||||||||||||||||||||||||||
Other (2) | ( | |||||||||||||||||||||||||
Total | $ | % | $ | % |
in thousands | Maturity Date | Interest Rate Per Annum at June 30, 2022 | June 30, 2022 | December 30, 2021 | ||||||||||||||||||||||
Credit Facilities: | ||||||||||||||||||||||||||
Term Loan Facility | February 14, 2027 | Variable | $ | $ | ||||||||||||||||||||||
Asset-based Loan Facility (“ABL”) | February 14, 2025 | Variable | ||||||||||||||||||||||||
Total secured debt at par value | ||||||||||||||||||||||||||
Less: current maturities | ||||||||||||||||||||||||||
Long-term debt maturities | ||||||||||||||||||||||||||
Less: unamortized discount and debt issuance costs | ||||||||||||||||||||||||||
Total long-term debt | $ | $ |
in thousands | Fair Value Hierarchy Classification | June 30, 2022 | December 30, 2021 | ||||||||||||||
Term Loan Facility | Level 3 | $ | $ | ||||||||||||||
ABL Facility | Level 2 | ||||||||||||||||
Total | $ | $ |
in thousands | Amount | ||||
Twenty-six weeks ending December 29, 2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total minimum debt payments | $ |
Thirteen Weeks Ended | Twenty-six Weeks Ended | ||||||||||||||||||||||
in thousands | June 30, 2022 | July 1, 2021 | June 30, 2022 | July 1, 2021 | |||||||||||||||||||
Total interest costs | $ | $ | $ | $ | |||||||||||||||||||
Interest capitalized | |||||||||||||||||||||||
Interest expense, net | $ | $ | $ | $ |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||||||||
in thousands | Classification | June 30, 2022 | July 1, 2021 | June 30, 2022 | July 1, 2021 | |||||||||||||||||||||||||||
Fixed operating lease cost: | Selling and store operating | $ | $ | $ | $ | |||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||
Pre-opening | ||||||||||||||||||||||||||||||||
General and administrative | ||||||||||||||||||||||||||||||||
Total fixed operating lease cost | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Variable lease cost (1): | Selling and store operating | $ | $ | $ | $ | |||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||
Pre-opening | ||||||||||||||||||||||||||||||||
General and administrative | ( | ( | ||||||||||||||||||||||||||||||
Total variable lease cost | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Sublease income | Cost of sales | ( | ( | ( | ( | |||||||||||||||||||||||||||
Total operating lease cost (2) | $ | $ | $ | $ |
in thousands | Amount | |||||||
Twenty-six weeks ending December 29, 2022 | $ | |||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
Thereafter | ||||||||
Total minimum lease payments (1) (2) | ||||||||
Less: amount of lease payments representing interest | ||||||||
Present value of future minimum lease payments | ||||||||
Less: current obligations under leases | ||||||||
Long-term lease obligations | $ |
Options | Weighted Average Exercise Price | ||||||||||
Outstanding at December 31, 2021 | $ | ||||||||||
Exercised | ( | ||||||||||
Forfeited or expired | ( | ||||||||||
Outstanding at June 30, 2022 | $ | ||||||||||
Vested and exercisable at June 30, 2022 | $ |
Restricted Stock Units | |||||||||||||||||
Service-based | Performance-based | Total Restricted Stock Units | |||||||||||||||
Unvested at December 31, 2021 | |||||||||||||||||
Granted | |||||||||||||||||
Vested | ( | ( | |||||||||||||||
Forfeited | ( | ( | |||||||||||||||
Unvested at June 30, 2022 |
Restricted Stock Awards | |||||||||||||||||||||||
Service-based | Performance-based | Total Stock Return (TSR) | Total Restricted Stock Awards | ||||||||||||||||||||
Unvested at December 31, 2021 | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | ( | ( | |||||||||||||||||||
Unvested at June 30, 2022 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||
in thousands, except per share data | June 30, 2022 | July 1, 2021 | June 30, 2022 | July 1, 2021 | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Basic weighted average shares outstanding | ||||||||||||||||||||||||||
Dilutive effect of share-based awards | ||||||||||||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||
in thousands | June 30, 2022 | July 1, 2021 | June 30, 2022 | July 1, 2021 | ||||||||||||||||||||||
Stock options | ||||||||||||||||||||||||||
Restricted stock | ||||||||||||||||||||||||||
Restricted stock units | ||||||||||||||||||||||||||
in thousands | Contingent Earn-out Liabilities | |||||||
Balance at December 30, 2021 | $ | |||||||
Acquisition (1) | ||||||||
Fair value adjustments | ||||||||
Payments | ( | |||||||
Balance at June 30, 2022 | $ |
Thirteen Weeks Ended | ||||||||||||||||||||||||||||||||||||||
June 30, 2022 | July 1, 2021 | |||||||||||||||||||||||||||||||||||||
Actual | % of Sales | Actual | % of Sales | $ Increase/(Decrease) | % Increase/(Decrease) | |||||||||||||||||||||||||||||||||
Net sales | $ | 1,089,846 | 100.0 | % | $ | 860,108 | 100.0 | % | $ | 229.7 | 26.7 | % | ||||||||||||||||||||||||||
Cost of sales | 653,564 | 60.0 | 494,670 | 57.5 | 158.9 | 32.1 | ||||||||||||||||||||||||||||||||
Gross profit | 436,282 | 40.0 | 365,438 | 42.5 | 70.8 | 19.4 | ||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Selling and store operating | 268,202 | 24.5 | 205,072 | 23.8 | 63.1 | 30.8 | ||||||||||||||||||||||||||||||||
General and administrative | 53,107 | 4.9 | 52,819 | 6.1 | 0.3 | 0.5 | ||||||||||||||||||||||||||||||||
Pre-opening | 8,563 | 0.8 | 8,990 | 1.0 | (0.4) | (4.7) | ||||||||||||||||||||||||||||||||
Total operating expenses | 329,872 | 30.2 | 266,881 | 30.9 | 63.0 | 23.6 | ||||||||||||||||||||||||||||||||
Operating income | 106,410 | 9.8 | 98,557 | 11.5 | 7.9 | 8.0 | ||||||||||||||||||||||||||||||||
Interest expense, net | 1,672 | 0.2 | 1,293 | 0.2 | 0.4 | 29.3 | ||||||||||||||||||||||||||||||||
Income before income taxes | 104,738 | 9.6 | 97,264 | 11.3 | 7.5 | 7.7 | ||||||||||||||||||||||||||||||||
Provision for income taxes | 22,906 | 2.1 | 14,348 | 1.7 | 8.6 | 59.6 | ||||||||||||||||||||||||||||||||
Net income | $ | 81,832 | 7.5 | % | $ | 82,916 | 9.6 | % | $ | (1.1) | (1.3) | % |
Twenty-six Weeks Ended | ||||||||||||||||||||||||||||||||||||||
June 30, 2022 | July 1, 2021 | |||||||||||||||||||||||||||||||||||||
Actual | % of Sales | Actual | % of Sales | $ Increase/(Decrease) | % Increase/(Decrease) | |||||||||||||||||||||||||||||||||
Net sales | $ | 2,118,580 | 100.0 | % | $ | 1,642,645 | 100.0 | % | $ | 475.9 | 29.0 | % | ||||||||||||||||||||||||||
Cost of sales | 1,274,240 | 60.1 | 940,274 | 57.2 | 334.0 | 35.5 | ||||||||||||||||||||||||||||||||
Gross profit | 844,340 | 39.9 | 702,371 | 42.8 | 142.0 | 20.2 | ||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Selling and store operating | 517,702 | 24.4 | 395,018 | 24.0 | 122.7 | 31.1 | ||||||||||||||||||||||||||||||||
General and administrative | 107,752 | 5.1 | 96,860 | 5.9 | 10.9 | 11.2 | ||||||||||||||||||||||||||||||||
Pre-opening | 18,504 | 0.9 | 15,987 | 1.0 | 2.5 | 15.7 | ||||||||||||||||||||||||||||||||
Total operating expenses | 643,958 | 30.4 | 507,865 | 30.9 | 136.1 | 26.8 | ||||||||||||||||||||||||||||||||
Operating income | 200,382 | 9.5 | 194,506 | 11.8 | 5.9 | 3.0 | ||||||||||||||||||||||||||||||||
Interest expense, net | 2,834 | 0.2 | 2,681 | 0.2 | 0.2 | 5.7 | ||||||||||||||||||||||||||||||||
Income before income taxes | 197,548 | 9.3 | 191,825 | 11.7 | 5.7 | 3.0 | ||||||||||||||||||||||||||||||||
Provision for income taxes | 44,765 | 2.1 | 33,113 | 2.0 | 11.7 | 35.2 | ||||||||||||||||||||||||||||||||
Net income | $ | 152,783 | 7.2 | % | $ | 158,712 | 9.7 | % | $ | (5.9) | (3.7) | % |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||
June 30, 2022 | July 1, 2021 | June 30, 2022 | July 1, 2021 | |||||||||||||||||||||||
Comparable store sales (% change) | 9.2 | % | 68.4 | % | 11.7 | % | 48.1 | % | ||||||||||||||||||
Comparable average ticket (% change) | 17.9 | % | 3.9 | % | 17.2 | % | 2.9 | % | ||||||||||||||||||
Comparable customer transactions (% change) | (7.3) | % | 62.1 | % | (4.7) | % | 43.9 | % | ||||||||||||||||||
Number of warehouse-format stores | 174 | 147 | 174 | 147 | ||||||||||||||||||||||
Adjusted EBITDA (in thousands) (1) | $ | 150,297 | $ | 137,024 | $ | 286,074 | $ | 264,099 | ||||||||||||||||||
Adjusted EBITDA margin | 13.8 | % | 15.9 | % | 13.5 | % | 16.1 | % |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||
in thousands | June 30, 2022 | July 1, 2021 | June 30, 2022 | July 1, 2021 | ||||||||||||||||||||||
Net income | $ | 81,832 | $ | 82,916 | $ | 152,783 | $ | 158,712 | ||||||||||||||||||
Depreciation and amortization (a) | 37,517 | 27,377 | 71,637 | 52,897 | ||||||||||||||||||||||
Interest expense, net | 1,672 | 1,293 | 2,834 | 2,681 | ||||||||||||||||||||||
Income tax expense | 22,906 | 14,348 | 44,765 | 33,113 | ||||||||||||||||||||||
EBITDA | 143,927 | 125,934 | 272,019 | 247,403 | ||||||||||||||||||||||
Stock-based compensation expense (b) | 4,889 | 5,319 | 10,869 | 10,053 | ||||||||||||||||||||||
Acquisition and integration expense (c) | — | 3,166 | — | 3,166 | ||||||||||||||||||||||
Tariff refund adjustments (d) | — | 1,728 | — | 1,728 | ||||||||||||||||||||||
COVID-19 costs (e) | — | 408 | — | 624 | ||||||||||||||||||||||
Other (f) | 1,481 | 469 | 3,186 | 1,125 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 150,297 | $ | 137,024 | $ | 286,074 | $ | 264,099 |
Twenty-six Weeks Ended | ||||||||||||||
in thousands | June 30, 2022 | July 1, 2021 | ||||||||||||
Net cash provided by operating activities | $ | 7,853 | $ | 256,617 | ||||||||||
Net cash used in investing activities | (210,631) | (195,445) | ||||||||||||
Net cash provided by (used in) financing activities | 69,511 | (2,851) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (133,267) | $ | 58,321 |
Exhibit No. | Exhibit Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
FLOOR & DECOR HOLDINGS, INC. | ||||||||
Dated: August 4, 2022 | By: | /s/ Thomas V. Taylor | ||||||
Thomas V. Taylor | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
Dated: August 4, 2022 | By: | /s/ Trevor S. Lang | ||||||
Trevor S. Lang | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial Officer and Principal Accounting Officer) |
Date: August 4, 2022 | |||||
/s/ Thomas V. Taylor | |||||
Thomas V. Taylor | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) |
Date: August 4, 2022 | |||||
/s/ Trevor S. Lang | |||||
Trevor S. Lang | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer and Principal Accounting Officer) |
Date: August 4, 2022 | |||||
/s/ Thomas V. Taylor | |||||
Thomas V. Taylor | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) |
Date: August 4, 2022 | |||||
/s/ Trevor S. Lang | |||||
Trevor S. Lang | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer and Principal Accounting Officer) |
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2022 |
Jul. 01, 2021 |
Jun. 30, 2022 |
Jul. 01, 2021 |
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Income Statement [Abstract] | ||||
Net sales | $ 1,089,846 | $ 860,108 | $ 2,118,580 | $ 1,642,645 |
Cost of sales | 653,564 | 494,670 | 1,274,240 | 940,274 |
Gross profit | 436,282 | 365,438 | 844,340 | 702,371 |
Operating expenses: | ||||
Selling and store operating | 268,202 | 205,072 | 517,702 | 395,018 |
General and administrative | 53,107 | 52,819 | 107,752 | 96,860 |
Pre-opening | 8,563 | 8,990 | 18,504 | 15,987 |
Total operating expenses | 329,872 | 266,881 | 643,958 | 507,865 |
Operating income | 106,410 | 98,557 | 200,382 | 194,506 |
Interest expense, net | 1,672 | 1,293 | 2,834 | 2,681 |
Income before income taxes | 104,738 | 97,264 | 197,548 | 191,825 |
Provision for income taxes | 22,906 | 14,348 | 44,765 | 33,113 |
Net income | 81,832 | 82,916 | 152,783 | 158,712 |
Change in fair value of hedge instruments, net of tax | 822 | (7) | 2,376 | 76 |
Total comprehensive income | $ 82,654 | $ 82,909 | $ 155,159 | $ 158,788 |
Basic earnings per share (in dollars per share) | $ 0.78 | $ 0.79 | $ 1.45 | $ 1.52 |
Diluted earnings per share (in dollars per share) | $ 0.76 | $ 0.77 | $ 1.42 | $ 1.48 |
Basis of Presentation and Summary of Significant Accounting Policies |
6 Months Ended |
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Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Nature of Business Floor & Decor Holdings, Inc., together with its subsidiaries (the “Company,” “we,” “our,” or “us”) is a multi-channel specialty retailer and commercial flooring distributor. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate, vinyl, and natural stone along with decorative accessories and wall tile, installation materials, and adjacent categories at everyday low prices. Our stores appeal to a variety of customers, including professional installers and commercial businesses (“Pro”), Do it Yourself customers (“DIY”), and customers who buy our products for professional installation (“Buy it Yourself” or “BIY”). We operate within one reportable segment. As of June 30, 2022, the Company, through its wholly owned subsidiary, Floor and Decor Outlets of America, Inc. (“F&D” or“Outlets”), operates 174 warehouse-format stores, which average 78,000 square feet, and five small-format standalone design studios in 34 states, as well as four distribution centers and an e-commerce site, FloorandDecor.com. Fiscal Year The Company’s fiscal year is the 52- or 53-week period ending on the Thursday on or preceding December 31st. The fiscal year ending December 29, 2022 (“fiscal 2022”) and the fiscal year ended December 30, 2021 (“fiscal 2021”) include 52 weeks. When a 53-week fiscal year occurs, we report the additional week at the end of the fiscal fourth quarter. 52-week fiscal years consist of thirteen-week periods in each quarter of the fiscal year. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. The Condensed Consolidated Balance Sheet as of December 30, 2021 has been derived from the audited Consolidated Balance Sheet for the fiscal year then ended. The interim condensed consolidated financial statements should be read together with the audited consolidated financial statements and related footnote disclosures included in the Company’s Annual Report on Form 10-K for fiscal 2021, filed with the Securities and Exchange Commission (the “SEC”) on February 24, 2022 (the “Annual Report”). Management believes the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments considered necessary for a fair statement of results for the interim periods presented. Results of operations for the twenty-six weeks ended June 30, 2022 and July 1, 2021 are not necessarily indicative of the results to be expected for the full years. Impact of the COVID-19 Pandemic The ongoing presence of COVID-19 and its potential impact on the Company’s business remains an evolving situation and is highly uncertain. While the Company’s operations during the first twenty-six weeks of fiscal 2022 did not appear to be negatively impacted, the COVID-19 pandemic could have additional negative impacts in the future. The extent of the impact of the pandemic on the Company’s business and financial results will depend on future developments, including the duration of the pandemic, the success of vaccination programs, the spread of COVID-19, including its developing variants, within the markets in which the Company operates, as well as the countries from which the Company sources inventory, fixed assets, and other supplies, the effect of the pandemic on consumer confidence and spending, and actions taken by government entities in response to the pandemic, all of which are highly uncertain. Summary of Significant Accounting Policies There have been no updates to our Significant Accounting Policies since the Annual Report. For more information regarding our Significant Accounting Policies and Estimates, see the “Summary of Significant Accounting Policies” section of “Item 8. Financial Statements and Supplementary Data” of our Annual Report. Recently Issued Accounting Pronouncements Reference Rate Reform. In January 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-01, “Reference Rate Reform (Topic 848),” which provides optional guidance to ease the potential accounting and financial reporting burden of reference rate reform, including the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The new guidance provides temporary optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and the sale or transfer of debt securities classified as held-to-maturity. Entities may apply the provisions of the new standard as of the beginning of the reporting period when the election is made. Unlike other topics, the provisions of this update are only available until December 31, 2022, by which time the reference rate replacement activity is expected to be completed. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures and has yet to elect an adoption date. Business Combinations. In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The ASU addresses diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination and requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. This standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the standard is permitted, including adoption in an interim period. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements or related disclosures.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Net sales consist of revenue associated with contracts with customers for the sale of goods and services in amounts that reflect the consideration the Company is entitled to receive in exchange for those goods and services. Deferred Revenue & Contract Liabilities In accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, the Company recognizes revenue when the customer obtains control of the inventory. Amounts in deferred revenue at period-end reflect orders for which the inventory was not yet ready for physical transfer to customers. Contract liabilities within the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 30, 2021 primarily consisted of deferred revenue as well as amounts in accrued expenses and other current liabilities related to the Pro Premier loyalty program and unredeemed gift cards. As of June 30, 2022, contract liabilities totaled $57.1 million and included $20.2 million of deferred revenue, $27.5 million of loyalty program liabilities, and $9.4 million of unredeemed gift cards. As of December 30, 2021, contract liabilities totaled $40.2 million and included $14.5 million of deferred revenue, $20.4 million of loyalty program liabilities, and $5.3 million of unredeemed gift cards. Of the contract liabilities outstanding as of December 30, 2021, approximately $14.9 million was recognized in revenue during the twenty-six weeks ended June 30, 2022. Disaggregated Revenue The Company has one reportable segment. The following table presents the net sales of each major product category (in thousands):
(1) Adjacent categories primarily includes bathroom and kitchen products and accessories. (2) Other includes delivery, sample, and other product revenue and adjustments for deferred revenue, sales returns reserves, customer rewards under the Company’s Pro Premier Loyalty program, and other revenue related adjustments that are not allocated on a product-level basis.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following table summarizes the Company’s long-term debt as of June 30, 2022 and December 30, 2021:
Market risk associated with the Company’s long-term debt relates to the potential change in fair value and negative impact to future earnings, respectively, from a change in interest rates. The aggregate fair value of debt is based primarily on the Company’s estimates of interest rates, maturities, credit risk, and underlying collateral. The estimated fair values and classifications within the fair value hierarchy of the Term Loan Facility and ABL were as follows as of June 30, 2022 and December 30, 2021:
The following table summarizes scheduled maturities of the Company’s debt as of June 30, 2022:
Components of interest expense are as follows for the periods presented:
Term Loan Facility The Term Loan Facility provides a margin for loans of: (x) in the case of ABR Loans (as defined in the Term Loan Facility) 1.00% per annum (subject to a leverage-based step-up to 1.25% if Outlets exceeds certain leverage ratio tests), and (y) in the case of Eurodollar Loans (as defined in the Term Loan Facility) 2.00% per annum (subject to a leverage-based step-up to 2.25% if Outlets exceeds certain leverage ratio tests and a 0.00% floor on Eurodollar Loans). All obligations under the Term Loan Facility are secured by (1) a first-priority security interest in substantially all of the property and assets of Outlets and the other guarantors under the Term Loan Facility, with certain exceptions, and (2) a second-priority security interest in the collateral securing the asset-based loan facility (“ABL” or “ABL Facility”). ABL Facility As of June 30, 2022, the Company’s ABL Facility had a maximum availability of $400.0 million with actual available borrowings limited to the sum, at the time of calculation, of (a) eligible credit card receivables multiplied by the credit card advance rate, plus (b) the cost of eligible inventory, net of inventory reserves, multiplied by the applicable appraisal percentage, plus (c) 85% of eligible net trade receivables, plus (d) all eligible cash on hand, plus (e) 100% of the amount for which the eligible letter of credit must be honored after giving effect to any draws, minus certain Availability Reserves (each component as defined in the ABL Facility). The ABL Facility is available for issuance of letters of credit and contains a sublimit of $50.0 million for standby letters of credit and commercial letters of credit combined. Available borrowings under the facility are reduced by the face amount of outstanding letters of credit. All obligations under the ABL Facility are secured by (1) a first-priority security interest in the cash and cash equivalents, accounts receivable, inventory, and related assets of Outlets and the other guarantors under the ABL Facility, with certain exceptions, and (2) a second-priority security interest in substantially all of the other property and assets of Outlets and the other guarantors under the Term Loan Facility. Net availability under the ABL Facility, as reduced by outstanding borrowings of $68.6 million and letters of credit of $22.5 million, was $308.9 million based on financial data as of June 30, 2022. Covenants The credit agreements governing the Term Loan Facility and ABL Facility contain customary restrictive covenants, which, among other things and with certain exceptions, limit the Company’s ability to (i) incur additional indebtedness and liens in connection with such indebtedness, (ii) pay dividends and make certain other restricted payments, (iii) effect mergers or consolidations, (iv) enter into transactions with affiliates, (v) sell or dispose of property or assets, and (vi) engage in unrelated lines of business. In addition, these credit agreements subject the Company to certain reporting obligations and require that the Company satisfy certain financial covenants, including, among other things, a requirement that if borrowings under the ABL Facility exceed 90% of availability, the Company will maintain a certain fixed charge coverage ratio (defined as Consolidated EBITDA less non-financed capital expenditures and income taxes paid to consolidated fixed charges, in each case as more fully defined in the ABL Facility). The Term Loan Facility has no financial maintenance covenants. The Company is currently in compliance with all material covenants under the credit agreements.
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Income Taxes |
6 Months Ended |
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Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesEffective tax rates for the thirteen and twenty-six weeks ended June 30, 2022 and July 1, 2021 were based on the Company’s forecasted annualized effective tax rates and were adjusted for discrete items that occurred within each period. The Company’s effective income tax rate was 21.9% and 14.8% for the thirteen weeks ended June 30, 2022 and July 1, 2021, respectively, and 22.7% and 17.3% for the twenty-six weeks ended June 30, 2022 and July 1, 2021, respectively. For the thirteen and twenty-six weeks ended June 30, 2022, the effective income tax rate was higher than the statutory federal income tax rate of 21.0% primarily due to state income taxes. For the thirteen and twenty-six weeks ended July 1, 2021, the effective income tax rate was lower than the statutory federal income tax rate of 21.0% primarily due to the recognition of income tax benefits from tax deductions in excess of book expense related to stock option exercises and other discrete items. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Lease Commitments The Company accounts for leases in accordance with ASC 842, Leases. The majority of the Company’s long-term operating lease agreements are for its corporate office, retail locations, and distribution centers, which expire in various years through 2042. Most of these agreements are retail leases wherein both the land and building are leased. For a small number of retail locations, the Company has ground leases in which only the land is leased. The initial lease terms for the Company's corporate office, retail, and distribution center facilities generally range from 10-20 years. The majority of the Company’s retail and ground leases also include options to extend, which are factored into the recognition of their respective assets and liabilities when appropriate based on management’s assessment of the probability that the options will be exercised. When readily determinable, the rate implicit in the lease is used to discount lease payments to present value; however, substantially all of the Company’s leases do not provide a readily determinable implicit rate. If the rate implicit in the lease is not readily determinable, the Company uses a third party to assist in the determination of a secured incremental borrowing rate, determined on a collateralized basis, to discount lease payments based on information available at lease commencement. The secured incremental borrowing rate is estimated based on yields obtained from Bloomberg for U.S. consumers with a BB- credit rating and is adjusted for collateralization as well as inflation. As of June 30, 2022 and July 1, 2021, the Company’s weighted average discount rate was 5.2% and 5.2%, respectively. As of both June 30, 2022 and July 1, 2021, the Company’s weighted average remaining lease term was approximately 11 years. Lease Costs The table below presents components of lease expense for operating leases.
(1) Includes variable costs for common area maintenance, property taxes, and insurance on leased real estate. (2) Excludes short-term lease costs, which were immaterial for the twenty-six weeks ended June 30, 2022 and July 1, 2021. Undiscounted Cash Flows Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of June 30, 2022 were as follows:
(1) Future lease payments exclude approximately $220.3 million of legally binding minimum lease payments for operating leases signed but not yet commenced. (2) Operating lease payments include $138.3 million related to options to extend lease terms that are reasonably certain of being exercised. For the twenty-six weeks ended June 30, 2022 and July 1, 2021, cash paid for operating leases was $86.7 million and $89.6 million, respectively. Typically, cash paid for operating leases during a fiscal quarter includes only three months of lease payments. Cash paid for operating leases during the twenty-six weeks ended July 1, 2021 included approximately seven months of lease payments due to the majority of July payments being made on the final day of the fiscal quarter. Litigation On November 15, 2021, the Company was added as a defendant in a wrongful death lawsuit, Nguyen v. Inspections Now, Inc., No. 21-DCV-287142, pending in the 434th Judicial District Court of Fort Bend County, Texas. Inspections Now, Inc. and Jason Post Homes, LLC were also named as defendants in the case. On March 28, 2022, Plaintiff voluntarily dismissed her claims against Jason Post Homes without prejudice. Plaintiff’s petition alleges that unspecified “wood paneling” allegedly purchased from the Company was installed in the vicinity of plaintiff’s fireplace and caught fire while the fireplace was lit. The fire consumed plaintiff’s home and resulted in injuries to plaintiff and the death of plaintiff’s three children and mother. Plaintiff alleges product defect and failure to warn claims against the Company and negligent inspection claims against Inspections Now. Plaintiff’s petition seeks damages in excess of $1.0 million for property damage, personal injury, and wrongful death. The petition also seeks exemplary damages. The Company responded to Plaintiff’s petition on December 13, 2021, denying the allegations, and the case is in the early stages of discovery. On June 18, 2020, an alleged stockholder filed a putative derivative complaint, Lincolnshire Police Pension Fund v. Taylor, et al., No. 2020-0487-JTL, in the Delaware Court of Chancery, purportedly on behalf of the Company against certain of the Company’s officers, directors, and stockholders. The complaint alleges breaches of fiduciary duties and unjust enrichment. The factual allegations underlying these claims are similar to the factual allegations made in the previously dismissed In re Floor & Decor Holdings, Inc. Securities Litigation. The complaint seeks unspecified damages and restitution for the Company from the individual defendants and the payment of costs and attorneys’ fees. The time for the defendants to respond to the complaint has not yet expired. The Company maintains insurance that may cover any liability arising out of the above-referenced litigation up to the policy limits and subject to meeting certain deductibles and to other terms and conditions thereof. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult, particularly where the matters involve indeterminate claims for monetary damages and are in the stages of the proceedings where key factual and legal issues have not been resolved. For these reasons, the Company is currently unable to predict the ultimate timing or outcome of or reasonably estimate the possible losses or a range of possible losses resulting from the above-referenced litigation. The Company is also subject to various other legal actions, claims and proceedings arising in the ordinary course of business, which may include claims related to general liability, workers’ compensation, product liability, intellectual property and employment-related matters resulting from its business activities. As with most actions such as these, an estimation of any possible and/or ultimate liability cannot always be determined. The Company establishes reserves for specific legal proceedings when it determines that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. These various other ordinary course proceedings are not expected to have a material impact on the Company's consolidated financial position, cash flows, or results of operations, however regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors.
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Stock-based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | Stock-based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation (“ASC 718”). In accordance with ASC 718, the Company measures compensation cost for all stock-based awards at fair value on the date of grant and recognizes compensation expense, net of forfeitures, using the straight-line method over the requisite service period of awards expected to vest, which for each of the awards is the service vesting period. Stock-based compensation expense for the twenty-six weeks ended June 30, 2022 and July 1, 2021 was $10.9 million and $10.1 million, respectively, and was included in general and administrative expenses within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income. Stock Options The table below summarizes stock option activity for the twenty-six weeks ended June 30, 2022.
Restricted Stock Units During the twenty-six weeks ended June 30, 2022, the Company granted service-based restricted stock units (“RSUs”) to certain employees, executive officers, and non-employee directors and performance-based restricted stock units (“PSUs”) to certain executive officers that represent an unfunded, unsecured right to receive a share of the Company’s Class A common stock upon vesting. The RSUs granted during the period have an aggregate grant-date fair value of $21.4 million and vest in ratable annual installments on each of the first anniversaries of the grant date, subject to the grantee’s continued service through the applicable vesting date. The PSUs granted during the period have an aggregate grant-date fair value of $3.5 million and cliff vest after a three-year period based on the achievement of specific targets for adjusted EBIT (earnings before interest and taxes) growth and return on invested capital, subject to the grantee’s continued service through the applicable vesting date. Based on the extent to which the performance goals are achieved, vested shares may range from 0% to 200% of the target award amount, and the Company assesses the probability of achieving these performance goals on a quarterly basis. The fair values of the service-based and performance-based restricted stock units were determined based on the closing price of the Company’s Class A common stock on the date of grant. The following table summarizes restricted stock unit activity during the twenty-six weeks ended June 30, 2022:
Restricted Stock Awards The following table summarizes restricted stock award activity during the twenty-six weeks ended June 30, 2022:
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Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Net Income per Common Share The Company calculates basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding adjusted for the dilutive effect of share-based awards. The following table shows the computation of basic and diluted earnings per share:
The following potentially dilutive securities were excluded from the computation of diluted earnings per share as a result of their anti-dilutive effect:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value MeasurementsAs of June 30, 2022 and December 30, 2021, the Company had certain financial assets and liabilities on its Condensed Consolidated Balance Sheets that were required to be measured at fair value on a recurring or non-recurring basis. The estimated fair values of financial assets and liabilities such as cash and cash equivalents, receivables, prepaid expenses and other current assets, other assets, accounts payable, and accrued expenses and other current liabilities approximate their respective carrying values as reported within the Condensed Consolidated Balance Sheets. See Note 3, “Debt” for discussion of the fair value of the Company’s debt. Contingent Earn-out Liabilities As of June 30, 2022, contingent earn-out liabilities, primarily related to the Spartan Surfaces, Inc. acquisition that was completed during the second quarter of fiscal 2021, had an estimated fair value of $9.3 million (classified as level 3 within the fair value hierarchy), of which $5.3 million is included in other liabilities and $4.0 million is included in accrued expenses and other current liabilities within the Condensed Consolidated Balance Sheets. The table below summarizes changes in contingent earn-out liabilities during the twenty-six weeks ended June 30, 2022.
(1) During the twenty-six weeks ended June 30, 2022, the Company acquired two small commercial flooring sales distributors and their customer lists for total consideration of $1.3 million, including $1.1 million of cash and $0.3 million of contingent earn-out consideration. The acquisition was accounted for in accordance with ASC 805, Business Combinations. The fair values of the customer lists and contingent earn-out consideration related to this acquisition were immaterial. The $1.4 million net increase in the fair value of contingent earn-out liabilities during the twenty-six weeks ended June 30, 2022 was recognized in general and administrative expense within the Condensed Consolidated Statements of Operations and Comprehensive Income. There were no outstanding contingent earn-out liabilities or related fair value adjustments to such earn-out liabilities during the twenty-six weeks ended July 1, 2021. Interest Rate Cap Contracts Changes in interest rates impact the Company’s results of operations. In an effort to manage exposure to this risk, the Company enters into derivative contracts and may adjust its derivative portfolio as market conditions change. The Company has outstanding interest rate cap contracts that are designated as cash flow hedges. The effective portion of the gain or loss on effective cash flow hedges is reported as a component of Accumulated Other Comprehensive Income (“AOCI”) and reclassified into earnings in the same period in which the hedged transaction affects earnings. The effective portion of the derivative represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. To the extent the change in the fair value of the hedge does not perfectly offset the change in the fair value of the hedged item, the ineffective portion of the hedge is immediately recognized in earnings. The Company’s outstanding interest rate cap contracts were valued primarily using level 2 inputs based on data readily observable in public markets. The Company's interest rate cap contracts were negotiated with counterparties without going through a public exchange. Accordingly, the Company's fair value assessments for these derivative contracts gave consideration to the risk of counterparty default (as well as the Company's own credit risk). As of June 30, 2022 and December 30, 2021, the total fair value of the Company's interest rate cap contracts was approximately $4.0 million and $0.5 million, respectively, which are presented as a component of accumulated other comprehensive income within stockholders’ equity on the Condensed Consolidated Balance Sheets net of tax of $1.1 million and less than $0.1 million, respectively.
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Subsequent Event |
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Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn August 4, 2022, the Company entered into a second amendment to the ABL Facility which, among other things, (a) increased the Company’s revolving commitments to a total aggregate principal amount of $800 million, (b) allows for the Company, under certain circumstances, to increase the size of the facility by an additional amount of up to $200 million, and (c) extended the stated maturity date of the ABL Facility to August 4, 2027. |
Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Year | Fiscal Year The Company’s fiscal year is the 52- or 53-week period ending on the Thursday on or preceding December 31st. The fiscal year ending December 29, 2022 (“fiscal 2022”) and the fiscal year ended December 30, 2021 (“fiscal 2021”) include 52 weeks. When a 53-week fiscal year occurs, we report the additional week at the end of the fiscal fourth quarter. 52-week fiscal years consist of thirteen-week periods in each quarter of the fiscal year.
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Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. The Condensed Consolidated Balance Sheet as of December 30, 2021 has been derived from the audited Consolidated Balance Sheet for the fiscal year then ended. The interim condensed consolidated financial statements should be read together with the audited consolidated financial statements and related footnote disclosures included in the Company’s Annual Report on Form 10-K for fiscal 2021, filed with the Securities and Exchange Commission (the “SEC”) on February 24, 2022 (the “Annual Report”). Management believes the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments considered necessary for a fair statement of results for the interim periods presented. Results of operations for the twenty-six weeks ended June 30, 2022 and July 1, 2021 are not necessarily indicative of the results to be expected for the full years.
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Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Reference Rate Reform. In January 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-01, “Reference Rate Reform (Topic 848),” which provides optional guidance to ease the potential accounting and financial reporting burden of reference rate reform, including the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The new guidance provides temporary optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and the sale or transfer of debt securities classified as held-to-maturity. Entities may apply the provisions of the new standard as of the beginning of the reporting period when the election is made. Unlike other topics, the provisions of this update are only available until December 31, 2022, by which time the reference rate replacement activity is expected to be completed. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures and has yet to elect an adoption date. Business Combinations. In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The ASU addresses diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination and requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. This standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the standard is permitted, including adoption in an interim period. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements or related disclosures.
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Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregated Revenue | The following table presents the net sales of each major product category (in thousands):
(1) Adjacent categories primarily includes bathroom and kitchen products and accessories. (2) Other includes delivery, sample, and other product revenue and adjustments for deferred revenue, sales returns reserves, customer rewards under the Company’s Pro Premier Loyalty program, and other revenue related adjustments that are not allocated on a product-level basis.
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long Term Debt | The following table summarizes the Company’s long-term debt as of June 30, 2022 and December 30, 2021:
The estimated fair values and classifications within the fair value hierarchy of the Term Loan Facility and ABL were as follows as of June 30, 2022 and December 30, 2021:
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Schedule of Maturities of Debt | The following table summarizes scheduled maturities of the Company’s debt as of June 30, 2022:
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Schedule of Components of Interest Expense | Components of interest expense are as follows for the periods presented:
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Commitments and Contingencies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Expense | The table below presents components of lease expense for operating leases.
(1) Includes variable costs for common area maintenance, property taxes, and insurance on leased real estate. (2) Excludes short-term lease costs, which were immaterial for the twenty-six weeks ended June 30, 2022 and July 1, 2021.
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Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of June 30, 2022 were as follows:
(1) Future lease payments exclude approximately $220.3 million of legally binding minimum lease payments for operating leases signed but not yet commenced. (2) Operating lease payments include $138.3 million related to options to extend lease terms that are reasonably certain of being exercised.
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Stock-based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Activity | The table below summarizes stock option activity for the twenty-six weeks ended June 30, 2022.
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Restricted Stock Unit Activity | The following table summarizes restricted stock unit activity during the twenty-six weeks ended June 30, 2022:
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Restricted Stock Award Activity | The following table summarizes restricted stock award activity during the twenty-six weeks ended June 30, 2022:
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Earnings Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share:
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Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Earnings Per Share | The following potentially dilutive securities were excluded from the computation of diluted earnings per share as a result of their anti-dilutive effect:
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Fair Value Measurements (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The table below summarizes changes in contingent earn-out liabilities during the twenty-six weeks ended June 30, 2022.
(1) During the twenty-six weeks ended June 30, 2022, the Company acquired two small commercial flooring sales distributors and their customer lists for total consideration of $1.3 million, including $1.1 million of cash and $0.3 million of contingent earn-out consideration. The acquisition was accounted for in accordance with ASC 805, Business Combinations. The fair values of the customer lists and contingent earn-out consideration related to this acquisition were immaterial.
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Basis of Presentation and Summary of Significant Accounting Policies (Details) ft² in Thousands |
6 Months Ended |
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Jun. 30, 2022
ft²
designStudio
distributionCenter
state
segment
store
| |
Real Estate Properties [Line Items] | |
Number of reportable segments | segment | 1 |
Number of states with facilities | state | 34 |
Number of distribution centers | distributionCenter | 4 |
Warehouse-format stores | |
Real Estate Properties [Line Items] | |
Number of stores (facilities) | store | 174 |
Area of facility (in square feet) | ft² | 78 |
Small-format standalone design studios | |
Real Estate Properties [Line Items] | |
Number of stores (facilities) | designStudio | 5 |
Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 30, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 273,625 | $ 206,602 |
Less: current maturities | 1,577 | 2,103 |
Long-term debt maturities | 272,048 | 204,499 |
Less: unamortized discount and debt issuance costs | 7,891 | 8,737 |
Total long-term debt | 264,157 | 195,762 |
Long-term debt, fair value | $ 260,298 | 202,986 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Interest rate per annum | 3.06% | |
Total debt | $ 205,025 | 206,602 |
Term Loan Facility | Level 3 | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 191,698 | 202,986 |
Asset-based Loan Facility (“ABL”) | Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Interest rate per annum | 2.87% | |
Total debt | $ 68,600 | 0 |
Asset-based Loan Facility (“ABL”) | Revolving Credit Facility | Line of Credit | Level 2 | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 68,600 | $ 0 |
Debt - Schedule of Maturities of Debt (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Twenty-six weeks ending December 29, 2022 | $ 526 |
2023 | 2,103 |
2024 | 2,103 |
2025 | 70,703 |
2026 | 2,103 |
Thereafter | 196,087 |
Total secured debt at par value | $ 273,625 |
Debt - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jul. 01, 2021 |
Jun. 30, 2022 |
Jul. 01, 2021 |
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Debt Disclosure [Abstract] | ||||
Total interest costs | $ 2,650 | $ 1,862 | $ 4,525 | $ 3,831 |
Interest capitalized | 978 | 569 | 1,691 | 1,150 |
Interest expense, net | $ 1,672 | $ 1,293 | $ 2,834 | $ 2,681 |
Debt - Term Loan Facility (Details) - Amended Term Loan Facility |
6 Months Ended |
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Jun. 30, 2022 | |
Base rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Leverage based step-up, percent | 1.25% |
Eurodollar rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
Leverage based step-up, percent | 2.25% |
Interest rate floor | 0.00% |
Debt - ABL Facility (Details) |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Asset-based Loan Facility (“ABL”) | |
Line of Credit Facility [Line Items] | |
Outstanding letters of credit | $ 22,500,000 |
Asset-based Loan Facility (“ABL”) | Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Eligible net trade receivables, percent | 85.00% |
Eligible letter of credit, percent | 100.00% |
Available borrowing capacity | $ 308,900,000 |
Revolving Credit Facility Accordion Feature | Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Borrowing capacity | 400,000,000 |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Borrowing capacity | $ 50,000,000 |
Debt - Covenants (Details) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Asset-based Loan Facility (“ABL”) | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Percentage usage of facility to trigger covenant | 90.00% |
Income Taxes (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jul. 01, 2021 |
Jun. 30, 2022 |
Jul. 01, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 21.90% | 14.80% | 22.70% | 17.30% |
Commitments and Contingencies - Lease Maturity (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 |
Jul. 01, 2021 |
Dec. 30, 2021 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Twenty-six weeks ending December 29, 2022 | $ 83,803 | ||
2023 | 186,105 | ||
2024 | 177,128 | ||
2025 | 165,580 | ||
2026 | 156,229 | ||
Thereafter | 1,013,830 | ||
Total minimum lease payments | 1,782,675 | ||
Less: amount of lease payments representing interest | 478,465 | ||
Present value of future minimum lease payments | 1,304,210 | ||
Less: current obligations under leases | 112,987 | $ 104,602 | |
Long-term lease obligations | 1,191,223 | $ 1,120,990 | |
Legally binding minimum lease payments for operating leases signed but not yet commenced | 220,300 | ||
Minimum lease payments for options to extend lease terms | 138,300 | ||
Cash paid for operating leases | $ 86,700 | $ 89,600 |
Commitments and Contingencies - Litigation (Details) $ in Millions |
Nov. 15, 2021
USD ($)
|
---|---|
Nguyen v. Inspections Now, Inc., No. 21-DCV-287142 | Pending Litigation | Damages from Product Defects | |
Loss Contingencies [Line Items] | |
Loss contingency, damages sought, value | $ 1.0 |
Stock-Based Compensation - Stock Option Activity (Details) - $ / shares |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Options | |
Outstanding at beginning of period (in shares) | 2,503,654 |
Exercised (in shares) | (240,735) |
Forfeited or expired (in shares) | (34,211) |
Outstanding at the end of period (in shares) | 2,228,708 |
Vested and exercisable (in shares) | 1,831,270 |
Weighted Average Exercise Price | |
Outstanding at the beginning of period (in dollars per share) | $ 26.81 |
Exercised (in dollars per share) | 21.50 |
Forfeited or expired (in dollars per share) | 52.88 |
Outstanding at the end of period (in dollars per share) | 26.99 |
Vested and exercisable (in dollars per share) | $ 22.01 |
Stock-Based Compensation - Restricted Stock Unit Activity (Details) |
6 Months Ended |
---|---|
Jun. 30, 2022
shares
| |
Total Restricted Stock Units | |
Number of Awards | |
Beginning balance (in shares) | 214,778 |
Granted (in shares) | 266,774 |
Vested (in shares) | (52,351) |
Forfeited (in shares) | (9,718) |
Ending balance (in shares) | 419,483 |
Service-based | |
Number of Awards | |
Beginning balance (in shares) | 214,778 |
Granted (in shares) | 230,208 |
Vested (in shares) | (52,351) |
Forfeited (in shares) | (9,718) |
Ending balance (in shares) | 382,917 |
Performance-based | |
Number of Awards | |
Beginning balance (in shares) | 0 |
Granted (in shares) | 36,566 |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Ending balance (in shares) | 36,566 |
Stock-Based Compensation - Restricted Stock Award Activity (Details) |
6 Months Ended |
---|---|
Jun. 30, 2022
shares
| |
Service-based | |
Restricted Stock Awards | |
Beginning balance (in shares) | 144,725 |
Vested (in shares) | (24,656) |
Forfeited (in shares) | (16,195) |
Ending balance (in shares) | 103,874 |
Performance-based | |
Restricted Stock Awards | |
Beginning balance (in shares) | 160,315 |
Vested (in shares) | 0 |
Forfeited (in shares) | (25,997) |
Ending balance (in shares) | 134,318 |
Total Stock Return (TSR) | |
Restricted Stock Awards | |
Beginning balance (in shares) | 104,456 |
Vested (in shares) | 0 |
Forfeited (in shares) | (16,939) |
Ending balance (in shares) | 87,517 |
Restricted Stock Awards | |
Restricted Stock Awards | |
Beginning balance (in shares) | 409,496 |
Vested (in shares) | (24,656) |
Forfeited (in shares) | (59,131) |
Ending balance (in shares) | 325,709 |
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Mar. 31, 2022 |
Jul. 01, 2021 |
Apr. 01, 2021 |
Jun. 30, 2022 |
Jul. 01, 2021 |
|
Earnings Per Share [Abstract] | ||||||
Net income | $ 81,832 | $ 70,951 | $ 82,916 | $ 75,796 | $ 152,783 | $ 158,712 |
Basic weighted average shares outstanding (in shares) | 105,545 | 104,544 | 105,471 | 104,309 | ||
Dilutive effect of share-based awards (in shares) | 1,755 | 2,721 | 1,960 | 2,877 | ||
Diluted weighted average shares outstanding (in shares) | 107,300 | 107,265 | 107,431 | 107,186 | ||
Basic earnings per share (in dollars per share) | $ 0.78 | $ 0.79 | $ 1.45 | $ 1.52 | ||
Diluted earnings per share (in dollars per share) | $ 0.76 | $ 0.77 | $ 1.42 | $ 1.48 |
Earnings Per Share - Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jul. 01, 2021 |
Jun. 30, 2022 |
Jul. 01, 2021 |
|
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the computation of diluted earnings (in shares) | 73 | 67 | 71 | 81 |
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the computation of diluted earnings (in shares) | 12 | 1 | 0 | 1 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the computation of diluted earnings (in shares) | 318 | 6 | 225 | 6 |
Fair Value Measurements - Summarizes Changes In Contingent Earn-Out Liabilities (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
business
| |
Business Combination, Contingent Consideration, Liability | |
Contingent Earn-out Liabilities | |
Beginning balance | $ 10,231 |
Acquisition | 280 |
Fair value adjustments | 1,389 |
Payments | (2,571) |
Ending balance | $ 9,329 |
Commercial Flooring And Sales Agency | |
Contingent Earn-out Liabilities | |
Number of businesses acquired | business | 2 |
Purchase consideration | $ 1,300 |
Payments to acquire business | 1,100 |
Contingent consideration liability | $ 300 |
Subsequent Event (Details) - Subsequent Event - Line of Credit - ABL Facility |
Aug. 04, 2022
USD ($)
|
---|---|
Subsequent Event [Line Items] | |
Borrowing capacity | $ 800,000,000 |
Line of credit facility, accordion feature, increase limit | $ 200,000,000 |
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