Lumber Liquidators Announces First Quarter 2013 Financial Results and Raises Full Year Outlook

  Lumber Liquidators Announces First Quarter 2013 Financial Results and Raises
  Full Year Outlook

               ~ Net Sales Increased 22.5% to $230.4 Million ~

                ~ Comparable Store Net Sales Increased 15.2% ~

 ~ Net Income Increased 92.5% to $15.8 Million, or $0.57 per Diluted Share ~

Business Wire

TOANO, Va. -- April 24, 2013

Lumber Liquidators (NYSE: LL), the largest specialty retailer of hardwood
flooring in North America, today announced financial results for the first
quarter ended March 31, 2013, and updated its outlook for 2013.

First Quarter Results

Net sales increased $42.4 million, or 22.5%, to $230.4 million in the first
quarter of 2013 from $188.0 million in the first quarter of 2012. Comparable
store net sales increased 15.2% for the quarter, driven by equivalent percent
increases in the number of customers invoiced and the average sale.
Non-comparable store net sales increased $13.9 million. The Company opened
five new stores during the first quarter of 2013.

Gross margin was 40.4% in the first quarter of 2013 compared to 37.3% in the
first quarter of 2012. The increase in gross margin reflects generally lower
net product costs, which include shifts in sales mix and benefits from
sourcing initiatives, and a net increase in the average retail price per unit
sold.

Selling, general and administrative expenses decreased as a percentage of net
sales to 29.3% for the first quarter of 2013 compared to 30.2% for the first
quarter of 2012. Operating margin increased 390 basis points to 11.0% in the
first quarter of 2013, from 7.1% in the first quarter of 2012.

Net income increased 92.5% to $15.8 million, or $0.57 per diluted share, in
the first quarter of 2013 from $8.2 million, or $0.29 per diluted share, in
the first quarter of the prior year.

Cash and cash equivalents at March 31, 2013 totaled $72.7 million compared
with $61.4 million at March 31, 2012 and $64.2 million at December 31, 2012.

Robert M. Lynch, President and Chief Executive Officer, commented, “Our
powerful store model and value proposition continued to drive record results
in the first quarter as we entered the important spring home improvement
season. As we continued the implementation of our multi-year strategic
initiatives, we saw consistent strength during the quarter in our top-line and
an expansion of both our gross and operating margins to deliver a solid bottom
line. Also during the quarter, we opened our first locations in our “store of
the future” format which feature an expanded showroom. Though the results are
early, across the five new store openings, four relocations of existing stores
and two major remodels completed during the first quarter with the new format,
we are pleased with the performance to date.”

Company Outlook

Based on the first quarter results and current trends, the Company now expects
to achieve the following for the full year:

  *Net sales in the range of $913 million to $942 million, up from the
    previous range of $885 million to $920 million.
  *Comparable store net sales increasing in the mid to high-single digits, up
    from the previous range of mid-single digits.
  *The opening of a total of 25 to 35 new store locations.
  *Earnings per diluted share in the range of $2.10 to $2.35, based on a
    diluted share count of approximately 28.0 million shares, which is
    exclusive of any future impact of the stock repurchase program, up from
    the previous range of $1.90 to $2.15.

Mr. Lynch concluded, “Our team remains focused on implementing the key
strategic initiatives that will drive our business for years to come. We
continue to aggressively pursue share in our highly fragmented market, and
while successful in this first quarter, we are even more excited by the
opportunities ahead. As we move forward, we believe we are well-positioned to
further expand our footprint and deliver multi-year expansion of our net sales
and operating margin.”

Conference Call and Webcast Information

The Company plans to host a conference call and audio webcast today, April 24,
2013, 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 May 1, 2013 and may be accessed by dialing (877)
870-5176 or (858) 384-5517 and entering conference ID number 411542. The live
conference call and replay may also be accessed via audio webcast at the
Investor Relations section of the Company’s website,
www.lumberliquidators.com.

About Lumber Liquidators

With over 290 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. Additionally, Lumber Liquidators
provides a wide selection of flooring enhancements and accessories to
complement, install and maintain your new floor. 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 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)
                                                                  
                                                    March 31,     December 31,
                                                    2013          2012
                                                    (unaudited)
Assets
Current Assets:
Cash and Cash Equivalents                           $  72,728     $  64,167
Merchandise Inventories                                210,087       206,704
Prepaid Expenses                                       6,785         5,168
Other Current Assets                                  8,639        12,106
Total Current Assets                                   298,239       288,145
Property and Equipment, net                            47,490        47,764
Goodwill                                               9,693         9,693
Other Assets                                          1,782        1,785
Total Assets                                        $  357,204    $  347,387
                                                                  
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts Payable                                    $  39,003     $  55,110
Customer Deposits and Store Credits                    28,613        25,747
Accrued Compensation                                   6,424         7,969
Sales and Income Tax Liabilities                       8,655         4,314
Other Current Liabilities                             11,201       7,887
Total Current Liabilities                              93,896        101,027
                                                                  
Deferred Rent                                          3,719         3,653
Deferred Tax Liability                                 8,178         8,166
                                                                  
Stockholders’ Equity:
Common Stock ($0.001 par value; 35,000,000
authorized; 27,315,147 and 27,214,144                  29            29
outstanding, respectively)
Treasury Stock, at cost (1,797,044 and 1,719,706       (54,828)      (50,552)
shares, respectively)
Additional Capital                                     137,411       131,724
Retained Earnings                                      169,047       153,267
Accumulated Other Comprehensive (Loss) Income         (248)        73
Total Stockholders’ Equity                            251,411      234,541
Total Liabilities and Stockholders’ Equity          $  357,204    $  347,387

                                             
Lumber Liquidators Holdings, Inc.
Condensed Consolidated Statements of Income
(in thousands, except share data and per share amounts)
(unaudited)
                                               
                                               Three Months Ended
                                               March 31,
                                               2013          2012
                                                              
Net Sales                                      $ 230,419      $ 188,034
Cost of Sales                                   137,422       117,897
Gross Profit                                     92,997         70,137
                                                              
Selling, General and Administrative Expenses    67,589        56,819
Operating Income                                 25,408         13,318
                                                              
Other (Income) Expense                          (210)         (42)
Income Before Income Taxes                       25,618         13,360
                                                              
Provision for Income Taxes                      9,837         5,163
Net Income                                     $ 15,781       $ 8,197
Net Income per Common Share—Basic              $ 0.58         $ 0.29
Net Income per Common Share—Diluted            $ 0.57         $ 0.29
                                                              
Weighted Average Common Shares Outstanding:
Basic                                            27,211,506     27,926,544
Diluted                                          27,783,611     28,509,475

                                                     
Lumber Liquidators Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
                                                       
                                                       Three Months Ended
                                                       March 31,
                                                       2013        2012
                                                                    
Cash Flows from Operating Activities:
Net Income                                             $ 15,781     $ 8,197
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation and Amortization                            2,716        2,366
Stock-Based Compensation Expense                         1,107        1,133
Changes in Operating Assets and Liabilities:
Merchandise Inventories                                  (3,522)      (27,737)
Accounts Payable                                         (15,966)     13,295
Customer Deposits and Store Credits                      2,874        8,087
Prepaid Expenses and Other Current Assets                1,952        (3,063)
Other Assets and Liabilities                            6,122       8,059
Net Cash Provided by Operating Activities                11,064       10,337
                                                                    
Cash Flows from Investing Activities:
Purchases of Property and Equipment                     (2,589)     (3,180)
Net Cash Used in Investing Activities                    (2,589)      (3,180)
                                                                    
Cash Flows from Financing Activities:
Payments for Stock Repurchases                           (4,276)      (9,077)
Proceeds from the Exercise of Stock Options              1,278        1,234
Excess Tax Benefit from Stock-Based Compensation        3,367       337
Net Cash Provided by (Used in) Financing Activities      369          (7,506)
                                                                    
Effect of Exchange Rates on Cash and Cash               (283)       110
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents     8,561        (239)
Cash and Cash Equivalents, Beginning of Period          64,167      61,675
Cash and Cash Equivalents, End of Period               $ 72,728     $ 61,436

Contact:

Lumber Liquidators Investor Relations
Ashleigh McDermott, 757-566-7512
 
Press spacebar to pause and continue. Press esc to stop.