Floor & Decor Holdings, Inc. announces its financial results for the fourth quarter of fiscal 2017, which ended December 28, 2017.

Tom Taylor, Chief Executive Officer, stated, “We are pleased to report our strongest quarter of the year as we close a successful fiscal 2017. Our investments in our people, innovative products, a connected customer experience, visual inspiration in-store and online, along with our unique large format stores and in-stock inventory model, continue to resonate with both consumers and professional customers. Fiscal 2017 marks our ninth consecutive year of double-digit comparable store sales growth, averaging 15% per year.”

Mr. Taylor continued, “As we look to fiscal 2018, we remain committed to improving on the strategies that have made us successful for nearly two decades. Given the strong backdrop and the fundamental strength of our business, we are going to use the benefits from tax reform to accelerate our strategic investments, which we believe will improve our competitive advantages and drive our planned net income growth for 2018 and beyond. I want to thank all of our associates who work hard every day to serve our customers and their communities. They are the key to our success.”

Unless indicated otherwise, the information in this release has been adjusted to give effect to a 321.820-for-one stock split of our common stock effected on April 24, 2017. See “Comparable Store Sales” below for information on how the Company calculates its comparable store sales growth.

For the Thirteen Weeks Ended December 28, 2017

• Net sales increased 40.0% to $389.5 million from $278.3 million in the fourth quarter of fiscal 2016. Comparable store sales increased 24.4%, including an estimated 800 basis point benefit from post-hurricane demand in Houston.

• The Company opened three new stores during the fourth quarter of fiscal 2017, ending the quarter with 83 warehouse format stores.

• Operating income increased 62.2% to $32.4 million from $20.0 million in the fourth quarter of fiscal 2016. Operating margin increased 110 basis points to 8.3%.

• Net income increased 187.2% to $48.0 million compared to $16.7 million in the fourth quarter of fiscal 2016. Diluted EPS was $0.46 compared to $0.19 in the fourth quarter of fiscal 2016.

• Adjusted net income* increased 76.9% to $19.9 million compared to $11.3 million in the fourth quarter of fiscal 2016. Adjusted diluted EPS* was $0.19 compared to $0.11 in the fourth quarter of fiscal 2016, an increase of 72.7%.

• Adjusted EBITDA* increased 54.5% to $43.5 million compared to $28.1 million in the fourth quarter of fiscal 2016.

For the Fiscal Year Ended December 28, 2017

• Net sales increased 31.8% to $1,384.8 million from $1,050.8 million in the same period of fiscal 2016. Comparable store sales increased 16.6%, including an estimated 200 basis point benefit from post-hurricane demand in Houston.

• The Company opened 14 new stores and relocated one store during the year ending December 28, 2017.

• Operating income increased 70.4% to $117.8 million compared to $69.1 million in the same period of fiscal 2016, which included a net $10.5 million charge to reserve for a legal settlement. Operating margin increased 190 basis points to 8.5%.

• Net income increased 138.8% to $102.8 million compared to $43.0 million in the same period of fiscal 2016. Diluted EPS was $1.03 compared to $0.49 in the same period of fiscal 2016.

• Adjusted net income* increased 58.8% to $71.0 million compared to $44.7 million in the same period of fiscal 2016. Adjusted diluted EPS* was $0.69 compared to $0.45 in the same period of fiscal 2016, an increase of 53.3%.

• Adjusted EBITDA* increased 46.5% to $158.8 million compared to $108.4 million in the same period of fiscal 2016.

*Non-GAAP financial measures. Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.

Balance Sheet Highlights as of December 28, 2017

• Total liquidity was $146.7 million as of December 28, 2017, which was primarily from the availability on our revolving credit facility.

• Total debt was $193.5 million as of December 28, 2017, consisting of outstanding current and long-term portions of our secured term loan and revolving credit facilities.