Floor Decor Holdings Inc

Previous wording

The following discussion and analysis of the financial condition and results of our operations should be read together with the financial statements and related notes of Floor & Decor Holdings, Inc. and Subsidiaries included in Item 1 of this quarterly report on Form 10-Q (this “Quarterly Report”) and with our audited financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2023 and filed with the Securities and Exchange Commission (the “SEC”) on February 22, 2024 (the “Annual Report”). As used in this Quarterly Report, except where the context otherwise requires or where otherwise indicated, the terms “Floor & Decor,” “Company,” “we,” “our,” or “us” refer to Floor & Decor Holdings, Inc. and its subsidiaries, and “Spartan” refers to our subsidiary Spartan Surfaces, LLC.

Current wording

The following discussion and analysis of the financial condition and results of our operations should be read together with the financial statements and related notes of Floor & Decor Holdings, Inc. and Subsidiaries included in Part I, Item 1, “Financial Statements” of this Quarterly Report and with our audited financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2023 and filed with the Securities and Exchange Commission (the “SEC”) on February 22, 2024 (the “Annual Report”). As used in this Quarterly Report, except where the context otherwise requires or where otherwise indicated, the terms “Floor & Decor,” “Company,” “we,” “our,” or “us” refer to Floor & Decor Holdings, Inc. and its subsidiaries, and “Spartan” refers to our subsidiary Spartan Surfaces, LLC.

Previous wording

Founded in 2000, Floor & Decor is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories and seller of commercial surfaces with 230 warehouse-format stores across 36 states as of June 27, 2024. We believe our unique approach to selling hard surface flooring and our consistent and disciplined culture of innovation and reinvestment create a differentiated business model in the hard surface flooring category. We believe that we offer the industry’s broadest in-stock assortment of tile, wood, laminate and vinyl, and natural stone flooring along with decorative and installation accessories and adjacent categories at everyday low prices, positioning us as the one-stop destination for our customers’ entire hard surface flooring needs. We appeal to a variety of customers, including professional installers and commercial businesses (“Pro”) and homeowners, which are comprised of do it yourself customers (“DIY”) and buy it yourself customers, who buy the products for professional installation (“BIY”).

Current wording

Founded in 2000, Floor & Decor is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories and seller of commercial surfaces with 241 warehouse-format stores across 38 states as of September 26, 2024. We believe our unique approach to selling hard surface flooring and our consistent and disciplined culture of innovation and reinvestment create a differentiated business model in the hard surface flooring category. We believe that we offer the industry’s broadest in-stock assortment of tile, wood, laminate and vinyl, and natural stone flooring along with decorative and installation accessories and adjacent categories at everyday low prices, positioning us as the one-stop destination for our customers’ entire hard surface flooring needs. We appeal to a variety of customers, including professional installers and commercial businesses (“Pro”) and homeowners, which are comprised of do it yourself customers (“DIY”) and buy it yourself customers, who buy the products for professional installation (“BIY”).

Previous wording

We operate on a 52- or 53-week fiscal year ending the Thursday on or preceding December 31. The following discussion contains references to the thirteen and twenty-six weeks ended June 27, 2024 and June 29, 2023, respectively.

Current wording

We operate on a 52- or 53-week fiscal year ending the Thursday on or preceding December 31. The following discussion contains references to the thirteen and thirty-nine weeks ended September 26, 2024 and September 28, 2023, respectively.

Previous wording

During the twenty-six weeks ended June 27, 2024, we continued to make key long-term strategic investments, including:

Current wording

During the thirty-nine weeks ended September 26, 2024, we continued to make key long-term strategic investments, including:

Previous wording

•opening nine new warehouse-format stores, ending the quarter with 230 warehouse-format stores and five design studios;

Current wording

•opening 20 new warehouse-format stores, ending the quarter with 241 warehouse-format stores and five design studios;

Previous wording

We consider a variety of performance and financial measures in assessing the performance of our business. The key performance and financial measures we use to determine how our business is performing are comparable store sales, the number of new store openings, gross profit and gross margin, operating income, and EBITDA and Adjusted EBITDA. For definitions and a discussion of how we use our key performance indicators, see the “Key Performance Indicators” section of “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report. See “Non-GAAP Financial Measures” below for a discussion of how we define EBITDA and Adjusted EBITDA and a reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”).

Current wording

We consider a variety of performance and financial measures in assessing the performance of our business. The key performance and financial measures we use to determine how our business is performing are comparable store sales, the number of new store openings, gross profit and gross margin, operating income, and EBITDA and Adjusted EBITDA. For definitions and a discussion of how we use our key performance indicators, see the “Key Performance Indicators” section of Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report. See “Non-GAAP Financial Measures” below for a discussion of how we define EBITDA and Adjusted EBITDA and a reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”).

Previous wording

Other key financial terms we use include net sales, selling and store operating expenses, general and administrative expenses, and pre-opening expenses. For definitions and a discussion of how we use other key financial terms, see the “Other Key Financial Definitions” section of “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report.

Current wording

Other key financial terms we use include net sales, selling and store operating expenses, general and administrative expenses, and pre-opening expenses. For definitions and a discussion of how we use other key financial terms, see the “Other Key Financial Definitions” section of Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report.

Previous wording

See Item 1A., “Risk Factors” for information about the potential impacts that risks, such as declines in economic conditions that affect the residential housing market and consumer spending for hard surface flooring, interest rates, inflation, global supply chain disruptions, and geopolitical instability, among others, may have on our results of operations and overall financial performance for future periods.

Current wording

See Part II, Item 1A, “Risk Factors” for information about the potential impacts that risks, such as declines in economic conditions that affect the residential housing market and consumer spending for hard surface flooring, interest rates, inflation, global supply chain disruptions, and geopolitical instability, among others, may have on our results of operations and overall financial performance for future periods.

Previous wording

(1) EBITDA and Adjusted EBITDA are non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” further below for additional information and a reconciliation of EBITDA and Adjusted EBITDA to net income.

Current wording

(1) EBITDA and Adjusted EBITDA are non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” below for additional information and a reconciliation of EBITDA and Adjusted EBITDA to net income.

Previous wording

Net sales during the twenty-six weeks ended June 27, 2024 decreased $27.5 million, or 1.2%, compared to the corresponding prior year period primarily due to a decrease in comparable store sales of 10.3%, partially offset by sales from the 28 new warehouse-format stores that we opened since June 29, 2023 and growth in our commercial business. The comparable store sales decline during the period of 10.3%, or $224.0 million, was due to a 6.3% decrease in comparable transactions and a 4.3% decrease in comparable average ticket. Non-comparable store sales of $196.5 million during the same period were primarily driven by new stores and revenue from Spartan.

Current wording

Net sales during the thirteen weeks ended September 26, 2024 increased $10.1 million, or 0.9%, compared to the corresponding prior year period primarily due to sales from the 34 new warehouse-format stores that we opened since September 28, 2023 and growth in Spartan, partially offset by a decrease in comparable store sales of 6.4%. The comparable store sales decline during the period of 6.4%, or $67.3 million, was due to a 4.1% decrease in comparable transactions and a 2.4% decrease in comparable average ticket. Non-comparable sales of $77.4 million during the same period were primarily driven by new stores and revenue from Spartan.

Previous wording

Net sales during the thirteen weeks ended June 27, 2024 decreased $2.8 million, or 0.2%, compared to the corresponding prior year period primarily due to a decrease in comparable store sales of 9.0%, partially offset by sales from the 28 new warehouse-format stores that we opened since June 29, 2023 and growth in our commercial business. The comparable store sales decline during the period of 9.0%, or $98.1 million, was due to a 4.9% decrease in comparable transactions and a 4.3% decrease in comparable average ticket. Non-comparable store sales of $95.3 million during the same period were primarily driven by new stores and revenue from Spartan.

Current wording

Net sales during the thirty-nine weeks ended September 26, 2024 decreased $17.4 million, or 0.5%, compared to the corresponding prior year period primarily due to a decrease in comparable store sales of 9.0%, partially offset by sales from the 34 new warehouse-format stores that we opened since September 28, 2023 and growth in Spartan. The comparable store sales decline during the period of 9.0%, or $291.3 million, was due to a 5.6% decrease in comparable transactions and a 3.7% decrease in comparable average ticket. Non-comparable sales of $273.9 million during the same period were primarily driven by new stores and revenue from Spartan.

Previous wording

We believe the decreases in comparable transactions for the thirteen and twenty-six weeks ended June 27, 2024 were largely driven by the impact of lower existing home sales. The decreases in comparable average ticket during the thirteen and twenty-six weeks ended June 27, 2024, were primarily due to smaller average transaction sizes.

Current wording

We believe the decreases in comparable transactions for the thirteen and thirty-nine weeks ended September 26, 2024 were largely driven by the impact of lower existing home sales. The decreases in comparable average ticket during the thirteen and thirty-nine weeks ended September 26, 2024, were primarily due to smaller average transaction sizes.

Previous wording

We estimate that retail sales during the thirteen weeks ended June 27, 2024 were approximately 52% from homeowners and 48% from Pros compared to approximately 57% from homeowners and 43% from Pros during the thirteen weeks ended June 29, 2023. We estimate that retail sales during the twenty-six weeks ended June 27, 2024 were approximately 53% from homeowners and 47% from Pros compared to approximately 57% from homeowners and 43% from Pros during the twenty-six weeks ended June 29, 2023.

Current wording

We estimate that retail sales during both the thirteen and thirty-nine weeks ended September 26, 2024 were approximately 52% from homeowners and 48% from Pros compared to approximately 56% from homeowners and 44% from Pros during both the thirteen and thirty-nine weeks ended September 28, 2023.

Previous wording

Gross profit during the thirteen weeks ended June 27, 2024 increased $11.4 million, or 2.4%, compared to the corresponding prior year period. The increase in gross profit was primarily driven by an increase in gross margin to 43.3%, up approximately 110 basis points from 42.2% in the same period a year ago.

Current wording

Gross profit during the thirteen weeks ended September 26, 2024 increased $18.4 million, or 3.9%, compared to the corresponding prior year period. The increase in gross profit was primarily driven by an increase in gross margin to 43.5%, up approximately 130 basis points from 42.2% in the same period a year ago.

Previous wording

Gross profit during the twenty-six weeks ended June 27, 2024 increased $12.3 million, or 1.3%, compared to the corresponding prior year period. The increase in gross profit was primarily driven by an increase in gross margin to 43.1%, up approximately 110 basis points from 42.0% in the same period a year ago.

Current wording

Gross profit during the thirty-nine weeks ended September 26, 2024 increased $30.7 million, or 2.2%, compared to the corresponding prior year period. The increase in gross profit was primarily driven by an increase in gross margin to 43.2%, up approximately 110 basis points from 42.1% in the same period a year ago.

Previous wording

The increases in gross margin during the thirteen and twenty-six weeks ended June 27, 2024 were primarily driven by a decrease in supply chain costs.

Current wording

The increases in gross margin during the thirteen and thirty-nine weeks ended September 26, 2024 were primarily driven by a decrease in supply chain costs.

Previous wording

Selling and store operating expenses during the twenty-six weeks ended June 27, 2024 increased $60.7 million, or 9.9%, compared to the corresponding prior year period. The increase in selling and store operating expenses was primarily driven by $78.5 million for new stores and $5.3 million at Spartan, partially offset by a decrease of $23.1 million at our comparable stores. As a percentage of net sales, selling and store operating expenses increased by approximately 300 basis points to 30.3% from 27.3% in the corresponding prior year period.

Current wording

Selling and store operating expenses during the thirteen weeks ended September 26, 2024 increased $30.6 million, or 9.9%, compared to the corresponding prior year period. The increase in selling and store operating expenses was primarily driven by $37.3 million for new stores and $1.0 million at Spartan, partially offset by a decrease of $7.7 million at our comparable stores. As a percentage of net sales, selling and store operating expenses increased by approximately 240 basis points to 30.3% from 27.9% in the corresponding prior year period.

Previous wording

Selling and store operating expenses during the thirteen weeks ended June 27, 2024 increased $30.0 million, or 9.6%, compared to the corresponding prior year period. The increase in selling and store operating expenses was primarily driven by $39.1 million for new stores and $1.8 million at Spartan, partially offset by a decrease of $10.9 million at our comparable stores. As a percentage of net sales, selling and store operating expenses increased by approximately 270 basis points to 30.1% from 27.4% in the corresponding prior year period.

Current wording

Selling and store operating expenses during the thirty-nine weeks ended September 26, 2024 increased $91.2 million, or 9.9%, compared to the corresponding prior year period. The increase in selling and store operating expenses was primarily driven by $115.7 million for new stores and $6.3 million at Spartan, partially offset by a decrease of $30.8 million at our comparable stores. As a percentage of net sales, selling and store operating expenses increased by approximately 290 basis points to 30.3% from 27.4% in the corresponding prior year period.

Previous wording

The increases in selling and store operating expenses in total and as a percentage of net sales during the thirteen and twenty-six weeks ended June 27, 2024 were primarily attributable to deleverage from a decrease in comparable store sales and the addition of new stores.

Current wording

The increases in selling and store operating expenses in total and as a percentage of net sales during the thirteen and thirty-nine weeks ended September 26, 2024 were primarily attributable to deleverage from a decrease in comparable store sales and the addition of new stores.

Previous wording

General and administrative expenses during the twenty-six weeks ended June 27, 2024 increased $9.3 million, or 7.4%, compared to the corresponding prior year period. Our general and administrative expenses as a percentage of net sales increased by approximately 50 basis points to 6.0% from 5.5% in the corresponding prior year period.

Current wording

General and administrative expenses during the thirteen weeks ended September 26, 2024 increased $7.8 million, or 13.1%, compared to the corresponding prior year period. Our general and administrative expenses as a percentage of net sales increased by approximately 80 basis points to 6.1% from 5.3% in the corresponding prior year period.

Previous wording

General and administrative expenses during the thirteen weeks ended June 27, 2024 increased $4.4 million, or 6.9%, compared to the corresponding prior year period. Our general and administrative expenses as a percentage of net sales increased by approximately 50 basis points to 6.0% from 5.5% in the corresponding prior year period.

Current wording

General and administrative expenses during the thirty-nine weeks ended September 26, 2024 increased $17.1 million, or 9.2%, compared to the corresponding prior year period. Our general and administrative expenses as a percentage of net sales increased by approximately 50 basis points to 6.0% from 5.5% in the corresponding prior year period.

Previous wording

The increases in general and administrative expenses in total and as a percentage of net sales for the thirteen and twenty-six weeks ended June 27, 2024 were primarily comprised of additional staffing costs to support store growth of approximately $2.2 million and $4.9 million, respectively, and, to a lesser extent, incentive compensation and other operating expenses.

Current wording

The increases in general and administrative expenses in total and as a percentage of net sales for the thirteen and thirty-nine weeks ended September 26, 2024 were primarily driven by incentive compensation of $7.0 million and $9.3 million, respectively, and additional staffing costs to support store growth of approximately $1.6 million and $6.4 million, respectively.

Previous wording

Pre-opening expenses during the thirteen weeks ended June 27, 2024 increased $0.7 million, or 6.5%, compared to the corresponding prior year period.

Current wording

Pre-opening expenses during the thirty-nine weeks ended September 26, 2024 increased $0.7 million, or 2.2%, compared to the corresponding prior year period. The increase in pre-opening expenses during the thirty-nine weeks ended September 26, 2024 primarily resulted from an increase in the number of stores that we opened compared to the corresponding prior year period.

Previous wording

Net interest expense during the thirteen weeks ended June 27, 2024 decreased $2.2 million, or 77.1%, compared to the corresponding prior year period.

Current wording

Net interest expense during the thirteen weeks ended September 26, 2024 decreased $1.1 million, or 84.8%, compared to the corresponding prior year period.

Previous wording

Net interest expense during the twenty-six weeks ended June 27, 2024 decreased $5.1 million, or 66.3%, compared to the corresponding prior year period.

Current wording

Net interest expense during the thirty-nine weeks ended September 26, 2024 decreased $6.2 million, or 68.8%, compared to the corresponding prior year period.

Previous wording

The decreases in net interest expense for the thirteen and twenty-six weeks ended June 27, 2024 were primarily due to a decrease in average amounts outstanding under our ABL Facility and an increase in interest capitalized, partially offset by interest rate increases on outstanding debt and lower interest income from our interest cap derivative contracts.

Current wording

The decreases in net interest expense for the thirteen and thirty-nine weeks ended September 26, 2024 were primarily due to a decrease in average amounts outstanding under our ABL Facility, higher interest income as a result of higher cash balances, and an increase in interest capitalized, partially offset by lower interest income from our interest cap derivative contracts.

Previous wording

Income tax expense was $14.0 million during the thirteen weeks ended June 27, 2024 compared to $20.6 million during the thirteen weeks ended June 29, 2023. The effective tax rate was 19.8% for the thirteen weeks ended June 27, 2024 compared to 22.4% in the corresponding prior year period.

Current wording

Income tax expense was $14.4 million during the thirteen weeks ended September 26, 2024 compared to $17.6 million during the thirteen weeks ended September 28, 2023. The effective tax rate was 21.8% for the thirteen weeks ended September 26, 2024 compared to 21.1% in the corresponding prior year period. The effective tax rate increase during the thirteen weeks ended September 26, 2024 was primarily due to a decrease in excess tax benefits related to stock-based compensation awards.

Previous wording

The effective tax rate decreases during the thirteen and twenty-six weeks ended June 27, 2024 were primarily due to increases in excess tax benefits related to stock-based compensation awards that were partially offset by limitations on deductions for compensation to certain employees under Internal Revenue Code Section 162(m).

Current wording

Income tax expense was $35.8 million during the thirty-nine weeks ended September 26, 2024 compared to $57.4 million during the thirty-nine weeks ended September 28, 2023. The effective tax rate was 18.4% for the thirty-nine weeks ended September 26, 2024 compared to 21.5% in the corresponding prior year period. The effective tax rate decrease during the thirty-nine weeks ended September 26, 2024 was primarily due to an increase in excess tax benefits related to stock-based compensation awards that were partially offset by limitations on deductions for compensation to certain employees under Internal Revenue Code Section 162(m).

Previous wording

(c)Other adjustments include amounts management does not consider indicative of our core operating performance. Amounts for both the thirteen and twenty-six weeks ended June 27, 2024 and June 29, 2023 relate to changes in the fair value of contingent earn-out liabilities.

Current wording

(c)Other adjustments include amounts management does not consider indicative of our core operating performance. Amounts for both the thirteen and thirty-nine weeks ended September 26, 2024 and September 28, 2023 relate to changes in the fair value of contingent earn-out liabilities.

Previous wording

Liquidity is provided primarily by cash flows from operations and our $800.0 million ABL Facility. Unrestricted liquidity based on our June 27, 2024 financial data was $772.1 million, consisting of $138.1 million in cash and cash equivalents and $634.0 million immediately available for borrowing under the ABL Facility without violating any covenants thereunder. Our liquidity is generally not seasonal, and our uses of cash are primarily tied to when we open stores and make other capital expenditures.

Current wording

Liquidity is provided primarily by cash flows from operations and our $800.0 million ABL Facility. Unrestricted liquidity based on our September 26, 2024 financial data was $803.1 million, consisting of $180.8 million in cash and cash equivalents and $622.3 million immediately available for borrowing under the ABL Facility without violating any covenants thereunder.

Previous wording

Our primary cash needs are for merchandise inventories, payroll, store rent, and other operating expenses and capital expenditures associated with opening new stores and remodeling existing stores, as well as information technology, e-commerce, and store support center infrastructure. We also use cash for the payment of taxes and interest and, as applicable, acquisitions. We expect that cash generated from operations together with cash on hand, the availability of borrowings under our Credit Facilities, and if necessary, additional funding through other forms of external financing, will be sufficient to meet liquidity requirements, anticipated capital expenditures, and payments due under our Credit Facilities for the next twelve months and the foreseeable future.

Current wording

Our liquidity is generally not seasonal. Our primary cash needs are for merchandise inventories, payroll, store rent, and other operating expenses and capital expenditures associated with opening new stores and remodeling existing stores as well as information technology, e-commerce, store support center, and distribution center infrastructure. We also use cash for the payment of taxes and interest and, as applicable, acquisitions. We expect that cash generated from operations together with cash on hand, the availability of borrowings under our Credit Facilities, and if necessary, additional funding through other forms of external financing, will be sufficient to meet liquidity requirements, anticipated capital expenditures, and payments due under our Credit Facilities for the next twelve months and the foreseeable future.

Previous wording

Total capital expenditures in fiscal 2024 are planned to be between approximately $360 million to $410 million and are expected to be funded primarily by cash generated from operations and borrowings under the ABL Facility. Our capital needs may change in the future due to changes in our business, new opportunities that we choose to pursue, or other factors. We currently expect the following for capital expenditures in fiscal 2024 (projected amounts are based on the gross costs that we expect to accrue for these investments on the Condensed Consolidated Balance Sheets in fiscal 2024, which may include amounts incurred but not yet settled in cash during the period):

Current wording

Total capital expenditures in fiscal 2024 are planned to be between approximately $360 million to $390 million and are expected to be funded primarily by cash generated from operations and borrowings under the ABL Facility. Our capital needs may change in the future due to changes in our business, new opportunities that we choose to pursue, or other factors. We currently expect the following for capital expenditures in fiscal 2024 (projected amounts are based on the gross costs that we expect to accrue for these investments on the Condensed Consolidated Balance Sheets in fiscal 2024, which may include amounts incurred but not yet settled in cash during the period):

Previous wording

•invest approximately $270 million to $310 million to open 30 warehouse-format stores, relocate stores, and begin construction on stores opening after fiscal 2024;

Current wording

•invest approximately $265 million to $295 million to open 30 warehouse-format stores, relocate stores, and begin construction on stores opening after fiscal 2024;

Previous wording

•invest approximately $60 million to $70 million in existing store remodeling projects and our distribution centers; and

Current wording

•invest approximately $65 million in existing store remodeling projects and our distribution centers; and

Previous wording

Net cash provided by operating activities during the twenty-six weeks ended June 27, 2024 and June 29, 2023 was $341.5 million and $476.6 million, respectively. The decrease in net cash provided by operating activities was primarily driven by a lower decrease in inventory, lower increase in trade accounts payable, an increase in receivables, and a decline in cash earnings after adjusting net income for non-cash items such as depreciation and amortization, which were partially offset by a decrease in income taxes receivable.

Current wording

Net cash provided by operating activities during the thirty-nine weeks ended September 26, 2024 and September 28, 2023 was $501.8 million and $699.0 million, respectively. The decrease in net cash provided by operating activities was primarily driven by a lower decrease in inventory, lower increase in trade accounts payable, and a decline in cash earnings after adjusting net income for non-cash items such as depreciation and amortization, which were partially offset by a decrease in income taxes receivable and an increase in accrued expenses and other current liabilities.

Previous wording

Net cash used in investing activities during the twenty-six weeks ended June 27, 2024 and June 29, 2023 was $225.6 million and $296.3 million, respectively. The decrease in cash used in investing activities was due to a decrease in capital expenditures and cash paid for an acquisition in 2023. The decline in capital expenditures was driven by the timing of construction payable settlements for recently completed stores and a decrease in new stores under construction compared to the corresponding prior year period.

Current wording

Net cash used in investing activities during the thirty-nine weeks ended September 26, 2024 and September 28, 2023 was $349.4 million and $431.1 million, respectively. The decrease in net cash used in investing activities was due to a decrease in capital expenditures and cash paid for an acquisition in 2023. The decline in capital expenditures was driven by the timing of construction payable settlements for recently completed stores and a decrease in new stores under construction compared to the corresponding prior year period.

Previous wording

Net cash used in financing activities during the twenty-six weeks ended June 27, 2024 and June 29, 2023 was $12.2 million and $185.9 million, respectively. The decrease in net cash used in financing activities was primarily driven by a decrease in net ABL Facility repayments.

Current wording

Net cash used in financing activities during the thirty-nine weeks ended September 26, 2024 and September 28, 2023 was $6.0 million and $216.1 million, respectively. The decrease in net cash used in financing activities was primarily driven by a decrease in net ABL Facility repayments.

Previous wording

As of June 27, 2024, total Term Loan Facility debt was $201.3 million, and no amounts were outstanding under our ABL Facility. For additional information regarding our Term Loan Facility and ABL Facility, including applicable covenants and other details, please refer to Note 3, “Debt.”

Current wording

As of September 26, 2024, total Term Loan Facility debt was $200.8 million, and no amounts were outstanding under our ABL Facility. For additional information regarding our Term Loan Facility and ABL Facility, including applicable covenants and other details, please refer to Note 3, “Debt.”

Previous wording

For a description of our critical accounting policies and estimates, refer to Part II, Item 7, “Critical Accounting Policies and Estimates” in our Annual Report. There have been no material changes to our critical accounting policies and estimates as disclosed in our Annual Report. See Note 1 to our condensed consolidated financial statements included in this Quarterly Report, which describes recent accounting pronouncements adopted by us.

Current wording

For a description of our critical accounting policies and estimates, refer to Part II, Item 7, “Critical Accounting Policies and Estimates” in our Annual Report. There have been no material changes to our critical accounting policies and estimates as disclosed in our Annual Report. See Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” to our condensed consolidated financial statements included in this Quarterly Report, which describes recent accounting pronouncements adopted by us.