Lumber Liquidators Announces Third Quarter 2009 Financial Results and Provides Updated Full Year Outlook
More News related to LL
- S&P Announces Change to US Index: LL for UCBH
- Standard & Poor's Announces Change to U.S. Index
- Lumber Liquidators (LL) Posts Q3 EPS of $0.28, Tops by 4c; Guides FY09
- Lumber Liquidators Announces Third Quarter 2009 Financial Results and Provides Updated Full Year Outlook
- Trading Radar for 11/04: Cisco (CSCO), Comcast (CMCSA), Tyco (TEL), Molson Coors (TAP) Report
TOANO, Va., Nov. 4 /PRNewswire-FirstCall/ -- Lumber Liquidators, Inc. (NYSE: LL), the largest specialty retailer of hardwood flooring in the U.S., today announced financial results for the third quarter ended September 30, 2009.
Third Quarter Results
Net sales increased $17.5 million, or 14.2%, to $140.5 million in the third quarter of 2009 from $123.1 million in the third quarter of 2008. Comparable store net sales increased 1.9% for the quarter, in comparison to a decrease of 1.8% for the second quarter of 2009 and an increase of 2.0% for the third quarter of the prior year. Non-comparable store net sales increased $15.2 million over the prior year period. The Company opened nine new stores during the third quarter.
Gross margin was 36.4% for the third quarter of 2009, up from 35.3% in the third quarter of 2008. Gross margin continued to benefit from changes in the Company's product line sales mix, generally lower transportation costs and effective execution of initiatives within store operations, merchandising and logistics.
Selling, general and administrative (SG&A) expenses were $38.7 million, or 27.6% of net sales, for the third quarter of 2009 compared to $34.6 million, or 28.1% of net sales, for the third quarter of 2008, as the costs of store base expansion and infrastructure investments were more than offset by leverage in advertising, legal and professional expenses.
Net income increased 42.1% to $7.8 million, or $0.28 per diluted share, in the third quarter of 2009 compared to $5.5 million, or $0.20 per diluted share, in the third quarter of 2008. The effective tax rate was 38.3% in the third quarter of 2009 compared to 39.5% in the third quarter of 2008.
Jeffrey W. Griffiths, President and Chief Executive Officer, commented, "We remained focused on delivering a unique combination of price, selection, quality and availability, and we are pleased to have returned to comparable store net sales growth during the quarter. We also continued to enhance this value proposition through strategic investments in our infrastructure, and we were able to gain share in our highly fragmented market. Additionally, we opened nine new store locations during the third quarter, including four in new markets, and we are on target to complete our 2009 store opening plan by the end of November. Overall, our team demonstrated its ability to implement strategic initiatives, realize operating efficiencies and expand operating margin."
First Nine Months Results
Net sales increased 11.4% to $407.5 million in the first nine months of 2009 from $365.6 million in the first nine months of 2008. Comparable store net sales decreased 1.8% for the first nine months of 2009, against an increase of 3.8% for the prior year period. Non-comparable store net sales increased $48.4 million. The Company opened 27 new stores during the first nine months of 2009.
Gross margin increased to 35.9% in the first nine months of 2009 compared to 34.9% in the same period of 2008. SG&A expenses were $114.3 million, or 28.0% of net sales, for the first nine months of 2009 compared to $101.9 million, or 27.9% of net sales, for the 2008 period.
Net income increased to $19.8 million, or $0.72 per diluted share, in the first nine months of 2009 compared to $15.7 million, or $0.58 per diluted share, in the prior year period. Net income for the first nine months of 2009 reflects an effective tax rate of 39.0% compared to 41.0% for the same period in 2008.
Company Outlook
Based upon year-to-date results and current visibility, the Company has updated its fiscal 2009 expectations. The Company now expects the following:
-- Net sales for the full year in the range of $535 million to $543
million, compared to the previously expected range of $528 million to
$538 million.
-- A comparable store net sales decrease of 1.8% or better.
-- Full year 2009 earnings per diluted share in the range of $0.90 to
$0.95, compared to the previously expected range of $0.85 to $0.91,
based on a diluted share count of 27.7 million shares.
-- The opening of a total of 34 to 36 new store locations in 2009.
Mr. Griffiths concluded, "While 2009 has been a challenging time for our industry, our financial results in the third quarter and our solid balance sheet are the latest testament to our efforts focused on delivering a long-term customer value proposition supported by a strong infrastructure. Though we are pleased with these results, we are passionate in our commitment to further expand our value proposition and continue to gain market share. We believe our industry may have seen the worst, and we continue to see certain key indicators stabilize. Our broad assortment of high-quality products and our increased emphasis on in-stock inventory situate us well to meet consumer demand both in the short-term and as confidence returns to our marketplace. We believe that the investments we have made in our infrastructure and the resulting efficiencies that we have achieved are sustainable and position us well to execute on our long-term growth strategy."
Conference Call and Webcast Information
The Company plans to host a conference call and audio webcast on November 4, 2009 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 one hour after the call through November 18, 2009 and may be accessed by dialing (877) 660-6853 or (201) 612-7415 and entering account number 3055 and conference ID number 335553. 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, Inc.
Lumber Liquidators is the largest specialty retailer of hardwood flooring in the United States. With more than 180 stores and 150 varieties of flooring, including solid and engineered hardwood, bamboo, cork and laminate, and featuring premier brands such as Bellawood (which features a 50-year warranty), Dream Home, Schon, Virginia Mill Works, and Morning Star, Lumber Liquidators has one of the most extensive selections of prefinished and unfinished hardwood flooring in the industry. Its hardwood line is made up of more than 25 domestic and exotic wood species in both prefinished and unfinished brands of various lengths and widths.
While keeping costs down is part of the Company's philosophy, Lumber Liquidators is also committed to offering high-quality, name-brand products that it stands behind with confidence.
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 most recent periodic filings with the Securities and Exchange Commission.
For further information contact:
Lumber Liquidators, Inc. FD
Daniel Terrell/Ashleigh McDermott Leigh Parrish/Jessica Greenberger
Tel: 757.566.7512 Tel. 212.850.5600
(Tables Follow)
Lumber Liquidators, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
September 30, December 31,
2009 2008
------------- ------------
(unaudited)
Assets
Current Assets:
Cash and Cash Equivalents $56,752 $35,139
Merchandise Inventories 104,057 88,731
Prepaid Expenses 3,977 5,033
Other Current Assets 4,196 3,731
----- -----
Total Current Assets 168,982 132,634
Property and Equipment, net 18,284 13,780
Deferred Income Taxes 1,756 2,317
Other Assets 3,654 3,674
----- -----
Total Assets $192,676 $152,405
======== ========
Liabilities and Stockholders'
Equity
Current Liabilities:
Accounts Payable $25,821 $15,373
Customer Deposits and Store Credits 12,157 10,418
Other Current Liabilities 12,863 10,598
------ ------
Total Current Liabilities 50,841 36,389
Deferred Rent 2,048 1,619
Stockholders' Equity:
Common Stock ($0.001 par value;
35,000,000 authorized; 27,146,682
and 26,796,891 outstanding,
respectively) 27 27
Additional Capital 93,208 87,613
Retained Earnings 46,552 26,757
------ ------
Total Stockholders' Equity 139,787 114,397
------- -------
Total Liabilities and Stockholders'
Equity $192,676 $152,405
======== ========
Lumber Liquidators, Inc.
Condensed Consolidated Statements of Income
(in thousands, except share data and per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -------------------
2009 2008 2009 2008
-------- ------- -------- --------
Net Sales $140,520 $123,063 $407,488 $365,649
Cost of Sales 89,336 79,646 261,164 237,855
------ ------ ------- -------
Gross Profit 51,184 43,417 146,324 127,794
Selling, General and
Administrative Expenses 38,727 34,607 114,269 101,855
------ ------ ------- -------
Operating Income 12,457 8,810 32,055 25,939
Interest and Other Income,
net (116) (220) (388) (592)
------ ------ ------- -------
Income Before Income
Taxes 12,573 9,030 32,443 26,531
Provision for Income Taxes 4,812 3,567 12,649 10,880
------ ------ ------- -------
Net Income $7,761 $5,463 $19,794 $15,651
====== ====== ======= =======
Net Income per Common
Share-Basic $0.29 $0.20 $0.74 $0.58
====== ====== ======= =======
Net Income per Common
Share-Diluted $0.28 $0.20 $0.72 $0.58
====== ====== ======= =======
Weighted Average Common
Shares Outstanding:
Basic 27,053,067 26,784,712 26,905,554 26,764,593
Diluted 27,892,790 27,302,549 27,535,516 27,123,548
Lumber Liquidators, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
September 30,
------------------
2009 2008
------- -------
Cash Flows from Operating Activities:
Net Income $19,794 $15,651
Adjustments to Reconcile Net Income to
Net Cash Provided by (Used in)
Operating Activities:
Depreciation and Amortization 3,470 3,238
Deferred Income Taxes (316) (1,357)
Stock-Based Compensation Expense 2,298 2,188
Changes in Operating Assets
and Liabilities:
Merchandise Inventories (15,326) (24,439)
Accounts Payable 10,448 (2,664)
Customer Deposits and Store
Credits 1,739 1,123
Prepaid Expenses and Other
Current Assets 1,468 504
Other Assets and Liabilities 2,873 3,276
----- -----
Net Cash Provided by (Used in)
Operating Activities 26,448 (2,480)
Cash Flows from Investing Activities:
Purchases of Property and Equipment (8,131) (5,167)
Purchase of Intangible Assets - (800)
----- -----
Net Cash Used in Investing
Activities (8,131) (5,967)
Cash Flows from Financing Activities:
Payments of Long-Term Debt and Capital
Lease Obligations (1) (101)
Proceeds from the Exercise of Stock
Options 2,593 204
Excess Tax Benefits on Stock Option
Exercises 743 40
Common Stock Purchased Pursuant to Equity
Compensation Plans (39) (51)
----- -----
Net Cash Provided by Financing
Activities 3,296 92
----- -----
Net Increase (Decrease) in Cash and Cash
Equivalents 21,613 (8,355)
Cash and Cash Equivalents, Beginning of
Period 35,139 33,168
------ ------
Cash and Cash Equivalents, End of Period $56,752 $24,813
======= =======
SOURCE Lumber Liquidators, Inc.
Related Categories
Press ReleasesStocks Mentioned
+0.19Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
