Floor & Décor Gears Up For Secondary Offering
Floor & Decor Holdings, Inc. (NYSE: FND) filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for a secondary offering. The company intends to sell 9.0 million shares in the offering with an overallottment option for an…
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Floor & Décor Holdings, Inc. (NYSE: FND) filed with the Securities and Exchange Commission (SEC) for a secondary offering. The company intends to sell nine million shares in the offering with an over-allottment option for 1.35 million shares. At the most recent closing price, the entire offering would be valued up to $408.51 million. Keep in mind the company has a market cap of $3.7 billion.
The underwriters for the offering are Merrill Lynch, Barclays, Credit Suisse, UBS Investment Bank, Goldman Sachs, Jefferies, Piper Jaffray, Wells Fargo, and Houlihan Lokey.
The Smyrna, Georgia-based company is a high-growth, multi-channel specialty retailer of hard surface flooring and related accessories with 74 warehouse-format stores across 17 states. Management believes the company offers the industry’s broadest in-stock assortment of tile, wood, laminate and natural stone flooring, along with decorative and installation accessories.
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Floor & Décor tries to appeal to a variety of customers, including professional installers and commercial businesses, do it yourself customers and those who buy the products for professional installation.
In the filing, Floor & Décor highlighted a few of its financial highlights:
- Eight consecutive years of double-digit comparable store sales growth averaging 15.3% per year (and averaging 16.5% per year for fiscal 2012 to fiscal 2016), with a 19.4% increase in fiscal 2016; comparable store sales growth was 12.8% for the 13 weeks ended March 30, 2017 compared with 22.4% for the 13 weeks ended March 31, 2016.
- Store base expansion from 30 warehouse-format stores at the end of fiscal 2012 to 69 at the end of fiscal 2016, representing a CAGR of 23.1%; we added 12 warehouse-format stores during fiscal 2016, which was a 21.1% growth in units compared to fiscal 2015; we added three warehouse-format stores and relocated one warehouse-format store during the 13 weeks ended March 30, 2017, ending with 72 warehouse-format stores, which was a 20.0% unit growth rate compared to March 31, 2016.
- Total net sales growth from $336.7 million to $1,050.8 million from fiscal 2012 to fiscal 2016, representing a CAGR of 32.9%; total net sales were $307.3 million for the 13 weeks ended March 30, 2017, an increase of 30.6% over the 13 weeks ended March 31, 2016.
- Net income growth from $12.8 million to $43.0 million from fiscal 2012 to fiscal 2016, representing a CAGR of 35.3%; net income was $11.1 million for the 13 weeks ended March 30, 2017, an increase of 56.7% over the 13 weeks ended March 31, 2016.
The company will not receive any proceeds from the offering, Instead, the selling stockholders will receive everything.
Shares of Floor & Décor were recently trading at $39.47, with a consensus analyst price target of $41.18 and a post-IPO range of $29.37 to $46.99.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
