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Lumber Liquidators Announces Third Quarter 2012 Financial Results And Raises Full Year Outlook

Stocks in this article: LL

Conference Call and Webcast Information

The Company plans to host a conference call and audio webcast today, October 24, 2012, at 10:00 a.m. Eastern Time. The conference may be accessed by dialing (877) 407-9039 or (201) 689-8470. A replay will be available approximately two hours after the call through October 31, 2012 and may be accessed by dialing (877) 870-5176 or (858) 384-5517 and entering conference ID number 401437. The live conference call and replay can also be accessed via audio webcast at the Investor Relations section of the Company’s website, www.lumberliquidators.com.

About Lumber Liquidators

With over 285 locations, Lumber Liquidators is North America’s largest specialty retailer of hardwood flooring. The Company features more than 340 first quality flooring varieties, including solid and engineered hardwood, bamboo, cork, laminate and resilient vinyl. Every location is staffed with flooring experts who can provide advice and useful information about Lumber Liquidators’ low priced product, much of which is in-stock and ready for delivery.

With quality brands including Bellawood Prefinished Hardwood and Morning Star Bamboo, Lumber Liquidators’ flooring is often featured on popular television shows, such as Extreme Makeover: Home Edition and HGTV’s Dream Home.

For more information, please visit www.lumberliquidators.com or call 1.800.HARDWOOD. You can also follow the Company on Facebook and Twitter.

Forward-Looking Statements

This press release and accompanying financial tables may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act. These statements are based on currently available information as of the date of such statements and are subject to risks and uncertainties that may cause actual results to differ. The Company specifically disclaims any obligation to update these statements which speak only as of their respective dates, except as may be required under the federal securities laws. Information regarding these additional risks and uncertainties is contained in the Company’s filings with the Securities and Exchange Commission.

Lumber Liquidators Holdings, Inc.

 
Condensed Consolidated Balance Sheets
(in thousands, except share data)
   

September 30, 2012

December 31, 2011

Assets (unaudited)
Current Assets:
Cash and Cash Equivalents $ 40,065 $ 61,675
Merchandise Inventories 194,954 164,139
Prepaid Expenses 6,352 4,292
Other Current Assets   8,017     7,863  
Total Current Assets 249,388 237,969
Property and Equipment, net 46,391 44,147
Goodwill 9,693 9,693
Other Assets   1,907     3,045  
Total Assets $ 307,379   $ 294,854  
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts Payable $ 29,973 $ 38,161
Customer Deposits and Store Credits 24,074 18,120
Accrued Compensation 6,831 2,509
Sales and Income Tax Liabilities 4,388 5,092
Other Current Liabilities   9,765     6,839  
Total Current Liabilities 75,031 70,721
 
Deferred Rent 3,605 3,328
Deferred Tax Liability 6,153 5,721
 
Stockholders’ Equity:

Common Stock ($0.001 par value; 35,000,000 authorized; 27,141,423 and 27,894,543outstanding, respectively)

29 28
Treasury Stock, at cost (1,539,971 and 53,085 shares, respectively) (41,465 ) (1,116 )
Additional Capital 124,346 110,163
Retained Earnings 139,459 106,203
Accumulated Other Comprehensive Income (Loss)   221     (194 )
Total Stockholders’ Equity   222,590     215,084  
Total Liabilities and Stockholders’ Equity $ 307,379   $ 294,854  
 
Lumber Liquidators Holdings, Inc.
 
Condensed Consolidated Statements of Income
(in thousands, except share data and per share amounts)
 
(unaudited)
   
Three Months Ended

September 30,

  Nine Months Ended

September 30,

2012   2011 2012   2011
 
Net Sales $ 204,291 $ 171,993 $ 602,672 $ 507,133
Cost of Sales   126,405       110,745       376,169     328,368  
Gross Profit 77,886 61,248 226,503 178,765
 
Selling, General and Administrative Expenses   57,135       50,327       172,638     149,832  
Operating Income 20,751 10,921 53,865 28,933
 
Other (Income) Expense   (26 )     (148 )     (99 )   (303 )
Income Before Income Taxes 20,777 11,069 53,964 29,236
 
Provision for Income Taxes   7,895       4,334       20,708     11,438  
Net Income $ 12,882     $ 6,735     $ 33,256   $ 17,798  
Net Income per Common Share—Basic $ 0.47     $ 0.24     $ 1.21   $ 0.64  
Net Income per Common Share—Diluted $ 0.46     $ 0.24     $ 1.18   $ 0.63  
Weighted Average Common Shares Outstanding:
Basic 27,125,855 27,759,306 27,518,206 27,673,741
Diluted 27,744,564 28,327,375 28,094,040 28,379,234
 
Lumber Liquidators Holdings, Inc.
 
Condensed Consolidated Statements of Cash Flows
(in thousands)
 
(unaudited)
 
Nine Months Ended

September 30,

2012   2011
 
Cash Flows from Operating Activities:
Net Income $ 33,256 $ 17,798
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization 7,323 6,129
Stock-Based Compensation Expense 3,019 3,002
Changes in Operating Assets and Liabilities:
Merchandise Inventories (30,962 ) (5,789 )
Accounts Payable (8,212 ) (14,184 )
Customer Deposits and Store Credits 5,966 6,967
Prepaid Expenses and Other Current Assets (2,427 ) (2,866 )
Other Assets and Liabilities   8,973     4,960  
 
Net Cash Provided by Operating Activities 16,936 16,017
 
Cash Flows from Investing Activities:
Purchases of Property and Equipment (9,570 ) (11,637 )
Cash Paid for Acquisition       (4,725 )
 
Net Cash Used in Investing Activities (9,570 ) (16,362 )
 
Cash Flows from Financing Activities:
Payments for Share Repurchases (40,349 ) (151 )
Proceeds from the Exercise of Stock Options 8,031 2,116
Excess Tax Benefits on Stock Option Exercises   3,141     1,421  
 
Net Cash (Used in) Provided by Financing Activities (29,177 ) 3,386
 
Effect of Exchange Rates on Cash and Cash Equivalents .   201     (54 )
 
Net (Decrease) Increase in Cash and Cash Equivalents (21,610 ) 2,987
Cash and Cash Equivalents, Beginning of Period   61,675     34,830  
 
Cash and Cash Equivalents, End of Period $ 40,065   $ 37,817  




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