Lumber Liquidators Announces Consolidated Unaudited Financial Results for the Fourth Quarter and Full Year Ended December 31, 2014; Provides Earnings Guidance for the First Quarter and Full Year of Fiscal 2015; Expects to Open New Stores in 2015
Feb 25 15
Lumber Liquidators announced consolidated unaudited financial results for the fourth quarter and full year ended December 31, 2014. Net sales increased $13.6 million, or 5.2%, to $272.0 million in the fourth quarter of 2014 from $258.4 million in the fourth quarter of 2013. Comparable store net sales decreased 4.2% for the quarter, driven by a 5.3% decrease in the average sale partially offset by a 1.1% increase in the number of customers invoiced. Non-comparable store net sales increased $24.5 million and included net sales from three new stores opened during the fourth quarter of 2014. Net income was $17.3 million, or $0.64 per diluted share, in the fourth quarter of 2014 and $20.8 million, or $0.74 per diluted share, in the fourth quarter of the prior year. Operating income was $28.679 million against $34.261 million a year ago. Income before income taxes was $28.455 million against $34.279 million a year ago.
Net sales increased 4.7% to $1.05 billion in 2014 from $1.00 billion in 2013. Comparable store net sales decreased 4.3% for the year, and non-comparable store net sales increased $90.1 million over the prior year. The Company opened 34 new stores in 2014, and as of December 31, 2014, operated 352 stores in 46 states and Canada. The Company also remodeled 17 existing stores during the year. Net income decreased 18.1% to $63.4 million, or $2.31 per diluted share, in 2014 compared to $77.4 million, or $2.77 per diluted share, in the prior year. Operating income was $104.073 million against $126.023 million a year ago. Income before income taxes was $103.583 million against $126.465 million a year ago. Net cash provided by operating activities was $57.087 million against $53.000 million a year ago. Purchases of property and equipment were $71.138 million against $28.585 million a year ago. Capital expenditures for 2014 are significantly higher than 2013 due to store-based expansion, the remodeling of existing stores, property and equipment related to new distribution centers of approximately $39 million in 2014 and expanding of finishing vertical integration projects, which incurred approximately $9.5 million in 2014.
Strong customer demand seen in December 2014 has continued in 2015, with total net sales through February 23, 2015 increasing 21.4%, including a 12.1% increase in net sales at comparable stores, driven by a 16.8% increase in the number of customers invoiced, partially offset by a 4.7% decrease in the average sale. In addition, open orders increased 24.5% over the same day in the prior year. Though results for the same period in the prior year had been adversely impacted by the severe winter weather, the current year increase in total net sales represents a three-year compound annual growth rate of 16.8%. The company expects percentage increases over 2014 to moderate over the remainder of the first quarter, a period that includes the beginning of the spring flooring season and historically represents approximately half of the first quarter's total net sales. As a result, in the first quarter of 2015, the company currently expects comparable store net sales to increase in the mid to high single digits, driven by an increase in the number of customers invoiced and partially offset by a lower average sale.
Considering these strong early indications and expectation of continued positive trends in the core business, the Company expects to achieve the following for the full year 2015. Net sales in the range of $1.14 billion to $1.21 billion. Comparable store net sales increasing in the single digits. Gross margin in the range of 39.0% to 40.0% with the second half of the year generally stronger than the first half, pressured in comparison to 2014 by a range of factors, including shifts in sales mix, net changes in retail pricing, modifications in promotional plans and higher net transportation costs. Capital expenditures between $20 million and $30 million. Earnings per diluted share in the range of approximately $2.50 to $3.00 based on a diluted share count of approximately 27.2 million shares, which is exclusive of any future impact of the stock repurchase program or resolution of any legal or regulatory matters not accrued at December 31, 2014. Once the East Coast distribution center is fully transitioned and consolidated, the company expects a net $3 million shift out of occupancy expenses and into depreciation.
The company expects to open 30 to 35 new store locations in 2015 and remodel 15 to 20 existing stores, all in expanded showroom format. The company expects to increase the number of stores where it provides installation services from 85 at the end of 2014 to 150 by the end of 2015.
Lumber Liquidators Invests in Wood Products Quality Testing Lab
Feb 23 15
As part of its continued efforts to further enhance its comprehensive product quality and assurance processes, Lumber Liquidators announced an investment in an advanced testing facility. The approximately 1,500 square-foot facility, located within the Company's new distribution center outside Richmond, Virginia, is the latest addition to the Company's product development and quality assurance lab network. Lumber Liquidators is one of the only flooring retailers to invest in, install and operate a lab with emission-testing capabilities. The lab includes two temperature and humidity-controlled conditioning rooms, and two formaldehyde emission chambers that mirror the capabilities of the California Air Resources Board (CARB) and other emission testing facilities. The ASTM International (formerly known as the American Society for Testing and Materials) D6007 chambers correlate to a CARB-approved Third Party Certifier (TPC).
Lumber Liquidators Holdings, Inc. to Report Q4, 2014 Results on Feb 25, 2015
Feb 11 15
Lumber Liquidators Holdings, Inc. announced that they will report Q4, 2014 results at 10:00 AM, US Eastern Standard Time on Feb 25, 2015