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    LL Flooring Reports Third Quarter 2020 Financial Results

    Nov 2, 2020

    RICHMOND, Va., Nov. 2, 2020 /PRNewswire/ -- Lumber Liquidators ("LL Flooring" or "Company") (NYSE: LL), a leading specialty retailer of hard-surface flooring in North America, today announced financial results for the third quarter ended September 30, 2020.

    "We are very pleased with our strong third quarter results, underscored by our continued execution against our transformation plan and industry strength as we saw customers display a healthy appetite for home improvement projects," said President and Chief Executive Officer Charles Tyson. "Our team has executed well against our four strategic pillars: people and culture, improving customer experience,  driving traffic and transactions, and improving profitability, which drove a robust comp of 10.9%, a $16 million increase in Net Income, and a $25 million increase in Adjusted Operating Income compared to the prior year. We would like to thank our associates for their agility and dedication throughout the quarter to deliver these impressive results."

    "Our sales trends strengthened as we saw sequential improvement in our Pro and Install customers from the second to the third quarter, driven by increased willingness from customers to allow contractors into their homes for home improvement and installation projects. Our focus on liquidity over the past several months has allowed us to build a strong liquidity position to navigate the current COVID-19 environment. We are purposefully executing our transformation plan and believe all of our actions are repositioning the Company for long-term success. There remains a good deal of uncertainty in this operating environment, but we are confident in our strategy."

    Third Quarter Results

    Net sales in the third quarter of 2020 increased $32 million, or 12.1%, to $296 million from the third quarter of 2019.  Comparable store sales for the third quarter of 2020 increased 10.9% primarily as a result of continued execution against the Company's transformation and healthy consumer demand for home improvement projects. The third quarter of 2019 was unfavorably affected by a network security incident in late August, which the Company believes negatively impacted total revenue by approximately $6 million to $8 million with an accompanying reduction in gross profit.  The Company opened one net new store in the third quarter of 2020 bringing total store count to 423 as of September 30, 2020. 

    Gross profit increased 22% in the third quarter of 2020 to $117 million from $96 million in the comparable period in 2019.  Gross Margin increased 320 basis points to 39.4% in the third quarter of 2020 from 36.2% in the third quarter of 2019 due to lower year-over-year Section 301 tariffs (discussed in the "Section 301 Tariffs" section that follows), supply chain efficiency, along with pricing initiatives and a larger mix of higher-margin manufactured products.  These items were partially offset by higher customer delivery costs associated with promotions.

    SG&A expense decreased 0.1% to $93 million, or 31.6% of sales, down 380 basis points in the third quarter of 2020 from the comparable period in 2019. SG&A in both quarters included certain costs related to investigations and lawsuits. Additionally, the third quarter included costs related to Canadian and US store closures in 2020.  Excluding these items as shown in the table that follows, Adjusted SG&A (a non-GAAP measure) decreased 4.9% to $89 million, or 29.9% of sales, down 530 basis points compared to the same period in the prior year.  The reduction in Adjusted SG&A was primarily driven by the optimization of our marketing efforts, as we pivoted towards more efficient channels like digital, and $2.5 million from the final settlement of the business interruption insurance claim related to the August 2019 network security incident; partially offset by an increase in credit card fees due to the year-over-year increase in revenue. 

    Operating income was $23 million for the third quarter of 2020 compared to $2.2 million for the third quarter of 2019. Adjusted Operating Income (a non-GAAP measure) was $29 million for the third quarter of 2020, a year-over-year increase of more than $25 million compared to Adjusted Operating Income of $3.4 million for the third quarter of 2019.   The year-over-year increase was primarily driven by strong sales growth, enhanced gross margin, and strong expense management.

    For the three months ended September 30, 2020, the Company recognized income tax expense of $7 million, which represented an effective tax rate of 31.0%. For the three months ended September 30, 2019, the Company recognized income tax expense of $0.2 million, which represented an effective tax rate of 17.7%. The variability of the Company's third-quarter tax rate reflects the timing of deductions as the Company calculated a discrete provision in 2020 because of COVID-19 uncertainty as compared to using an effective tax rate in 2019.  

    Net income for the third quarter of 2020 increased $14.5 million to $15.5 million compared to $1 million for the third quarter of 2019, while Adjusted Earnings (a non-GAAP measure) for the third quarter of 2020 was $20 million, a year-over-year increase of $18 million compared to Adjusted Earnings of $1.9 million for the third quarter of 2019.

    Earnings per diluted share was $0.53 for the third quarter 2020 versus $0.04 in the year ago quarter.  On an adjusted basis, third quarter earnings per diluted share increased $0.60 to $0.67 compared to an Adjusted Earnings per Diluted Share (a non-GAAP measure) of $0.07 for the third quarter of 2019.

    Net cash provided by operating activities was $181 million for the year to date, inclusive of $75 million in the third quarter, an increase of $198 million over the equivalent period of the prior year.  The increase in the year to date was primarily due to operating performance along with disciplined working capital management. The working capital benefit included a reduction in inventory due to strong sales, higher accounts payable, further growth in customer deposits, and collection of tariff receivables. The Company has a significant amount of inventory in transit as of September 30, 2020 and expects inventory to build in the fourth quarter to more historic levels.  The accounts payable balance was higher at the end of the quarter due to the increased in-transit inventory and extended payment terms with vendors and other service providers.

    Liquidity Update

    As of September 30, 2020, the Company had liquidity of approximately $230 million, consisting of excess availability under its Credit Agreement of $31 million, and cash and cash equivalents of $199 million.  This represents an increase in liquidity of $44 million from June 30, 2020.  In addition, the Company's debt balance as of September 30, 2020 was $101 million, unchanged since amending the Credit Agreement on April 17, 2020.

    Canadian and US Store Closure Costs

    During the third quarter of 2020, the Company conducted a comprehensive review of its real estate portfolio. Following the conclusion of this review, the Company made the decision to close its Canadian operations, including all eight stores in Canada, and six underperforming US locations by the end of 2020. The Company will continue to monitor store performance on an ongoing basis.  The Company expects to incur expense of between $4 and $5 million to close these stores in the second half of 2020, $2.6 million of which was recorded in the third quarter of 2020. The Company expects all fourteen stores to be closed by year end although certain transfers of inventory and clean-up activities will not be fully completed until early in 2021.

    Section 301 Tariffs

    Beginning in September 2018, goods coming from China were subject to a 10% tariff under Section 301, which was increased to 25% in June 2019. On November 7, 2019, the U.S. Trade Representative ("USTR") granted a retroactive exclusion on certain Click Vinyl and engineered products imported from China. Subsequently, on August 6, 2020, the USTR announced its intention not to extend the exclusion pertaining to those certain flooring products imported from China, and the exclusion expired as of August 7, 2020, which again subjects those products to the 25% Section 301 tariffs.

    At that time, approximately 43% of the Company's merchandise receipts originated from China. Approximately 10% of the Company's merchandise receipts remained subject to the Section 301 tariffs even during the exclusion period; the remaining 33% are once again subject to the Section 301 tariffs. As the Company continues to execute its alternative sourcing strategy, its goal is to reduce the percentage of goods that we purchase from China to the mid-thirties by the end of 2020 and to continue those efforts in the coming year.

    The Company had a benefit of $11 million of operating income in the fourth quarter of 2019 as a result of the retroactive exclusion of these tariffs, which will not be repeated in 2020.

    Following the tariffs being reinstated in August 2020, cash flow was reduced as the Company began to pay the tariffs on the product affected by the Section 301 tariff reinstatement. As this product is sold beginning in the fourth quarter, the increased cost of the tariffs will flow through the income statement.

    In addition to alternative country sourcing, the Company has other approaches to mitigate the impact of the tariffs, including partnering with current vendors to lower costs and adjusting its pricing. The Company continues to monitor market pricing and promotional strategies to inform and guide its decisions.

    2020 Outlook

    As previously announced on April 20, 2020, the Company withdrew its annual financial guidance that was initially provided on February 25, 2020.  The uncertainty surrounding the duration and extent of the impact of COVID-19 makes it uniquely challenging to accurately forecast future financial performance, and as such, the Company is not providing financial guidance.

    Conference Call and Webcast Information 

    The Company plans to host a conference call and audio webcast on November 2, 2020, at 8:00 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 ends through November 9, 2020 and may be accessed by dialing (844) 512-2921 or (412) 317-6671 and entering pin number 13711148. The live conference call and replay can also be accessed via audio webcast at the Investor Relations section of the Company's website, www.LLFlooring.com.

    About LL Flooring

    LL Flooring is one of North America's leading specialty retailers of hard-surface flooring with 423 stores as of September 30, 2020. The Company seeks to offer the best customer experience online and in stores, with more than 400 varieties of hard-surface floors featuring a range of quality styles and on-trend designs.  LL's online tools also help empower customers to find the right solution for the space they've envisioned.  LL Flooring's extensive selection includes waterproof vinyl plank, solid and engineered hardwood, laminate, bamboo, porcelain tile, and cork, with a wide range of flooring enhancements and accessories to complement.  With over 25 years of experience, stores are staffed with flooring experts who provide advice, pro partnership services and installation options for all of LL Flooring's products, the majority of which is in stock and ready for delivery.

    Learn More about LL Flooring

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    This press release includes statements of the Company's expectations, intentions, plans and beliefs that constitute "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995. These statements, which may be identified by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "thinks," "estimates," "seeks," "predicts," "could," "projects," "potential" and other similar terms and phrases, are based on the beliefs of the Company's management, as well as assumptions made by, and information currently available to, the Company's management as of the date of such statements. These statements are subject to risks and uncertainties, all of which are difficult to predict and many of which are beyond the Company's control.

    The Company specifically disclaims any obligation to update these statements, which speak only as of the dates on which such statements are made, except as may be required under the federal securities laws.  For a discussion of the risks and uncertainties that could cause actual results to differ from those contained in the forward looking statements, see the "Risk Factors" section of the Company's annual report on Form 10-K for the year ended December 31, 2019, "Risk Factors" in the Company's quarterly reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020 and the Company's other filings with the Securities and Exchange Commission ("SEC"). Such filings are available on the SEC's website at www.sec.gov and the Company's Investor Relations website at www.investors.llflooring.com.  

    Non-GAAP and Other Information

    To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses the following non-GAAP financial measures: (i) Adjusted Gross Profit; (ii) Adjusted Gross Margin; (iii) Adjusted SG&A; (iv) Adjusted SG&A as a percentage of net sales; (v) Adjusted Operating Income; (vi) Adjusted Operating Margin; (vii) Adjusted Earnings; and (viii) Adjusted Earnings per Diluted Share.  These non-GAAP financial measures should be viewed in addition to, and not in lieu of, financial measures calculated in accordance with GAAP.  These supplemental measures may vary from, and may not be comparable to, similarly titled measures by other companies.

    The non-GAAP financial measures are presented because management uses these non-GAAP financial measures to evaluate the Company's operating performance and, in certain cases, to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The presented non-GAAP financial measures exclude items that management does not believe reflect the Company's core operating performance, which include regulatory and legal settlements and associated legal and operating costs, changes in antidumping and countervailing duties, as such items are outside the control of the Company or are due to their inherent unusual, non-operating, unpredictable, non-recurring or non-cash nature.

    For further information contact:

    LL Flooring Investor Relations
    ir@lumberliquidators.com 
    Tel: 804-420-9801

    (Tables Follow)

     

    LL Flooring

    Consolidated Balance Sheets

    (Unaudited, in thousands)



    September 30,


    December 31, 


    2020


    2019

    Assets





    Current Assets:






    Cash and Cash Equivalents

    $

    199,347


    $

    8,993

    Merchandise Inventories


    237,440



    286,369

    Prepaid Expenses


    7,940



    8,288

    Deposit for Legal Settlement


    21,500



    21,500

    Tariff Recovery Receivable


    7,516



    27,025

    Other Current Assets


    6,950



    6,938

    Total Current Assets


    480,693



    359,113

    Property and Equipment, net


    94,202



    98,733

    Operating Lease Right-of-Use


    114,552



    121,796

    Goodwill


    9,693



    9,693

    Other Assets


    7,887



    6,674

    Total Assets

    $

    707,027


    $

    596,009







    Liabilities and Stockholders' Equity






    Current Liabilities:






    Accounts Payable

    $

    90,194


    $

    59,827

    Customer Deposits and Store Credits


    63,736



    41,571

    Accrued Compensation


    14,272



    11,742

    Sales and Income Tax Liabilities


    5,997



    7,225

    Accrual for Legal Matters and Settlements Current


    64,751



    67,471

    Operating Lease Liabilities - Current


    35,341



    31,333

    Other Current Liabilities


    24,305



    18,937

    Total Current Liabilities


    298,596



    238,106

    Other Long-Term Liabilities


    17,426



    13,757

    Operating Lease Liabilities - Long-Term


    95,046



    100,470

    Deferred Tax Liability


    973



    426

    Credit Agreement


    101,000



    82,000

    Total Liabilities


    513,041



    434,759







    Stockholders' Equity:






    Common Stock ($0.001 par value; 35,000 shares authorized; 30,184 and 29,959 shares issued and 28,871 and 28,714 shares outstanding, respectively)


    30



    30

    Treasury Stock, at cost (1,313 and 1,245 shares, respectively)


    (142,827)



    (142,314)

    Additional Capital


    220,969



    218,616

    Retained Earnings


    116,875



    86,498

    Accumulated Other Comprehensive Loss


    (1,061)



    (1,580)

    Total Stockholders' Equity


    193,986



    161,250

    Total Liabilities and Stockholders' Equity

    $

    707,027


    $

    596,009

     

    LL Flooring

    Consolidated Statements of Operations

    (Unaudited, in thousands, except per share amounts)



    Three Months Ended 


    Nine Months Ended


    September 30,


    September 30,


    2020


    2019


    2020


    2019













    Net Sales 












    Net Merchandise Sales

    $

    261,009


    $

    229,241


    $

    709,845


    $

    717,799

    Net Services Sales


    34,824



    34,719



    83,646



    100,949

    Total Net Sales


    295,833



    263,960



    793,491



    818,748

    Cost of Sales 












    Cost of Merchandise Sold


    152,530



    142,404



    419,230



    451,631

    Cost of Services Sold


    26,777



    25,882



    64,472



    75,345

    Total Cost of Sales 


    179,307



    168,286



    483,702



    526,976

    Gross Profit 


    116,526



    95,674



    309,789



    291,772

    Selling, General and Administrative Expenses 


    93,374



    93,495



    271,869



    294,392

    Operating Income (Loss)


    23,152



    2,179



    37,920



    (2,620)

    Other Expense


    685



    909



    2,709



    3,265

    Income (Loss) Before Income Taxes 


    22,467



    1,270



    35,211



    (5,885)

    Income Tax Expense


    6,964



    225



    4,834



    850

    Net Income (Loss)

    $

    15,503


    $

    1,045


    $

    30,377


    $

    (6,735)

    Net Income (Loss) per Common Share—Basic 

    $

    0.54


    $

    0.04


    $

    1.05


    $

    (0.23)

    Net Income (Loss) per Common Share—Diluted 

    $

    0.53


    $

    0.04


    $

    1.04


    $

    (0.23)

    Weighted Average Common Shares Outstanding:












    Basic 


    28,859



    28,706



    28,801



    28,681

    Diluted 


    29,334



    28,786



    29,075



    28,681

     

    LL Flooring

    Consolidated Statements of Cash Flows

    (Unaudited, in thousands)




    Nine Months Ended September 30,




    2020


    2019









    Cash Flows from Operating Activities:








    Net Income (Loss) 


    $

    30,377


    $

    (6,735)


    Adjustments to Reconcile Net Income (Loss):








    Depreciation and Amortization 



    13,327



    12,903


    Deferred Income Taxes Provision



    547



    106


    Stock-Based Compensation Expense 



    2,112



    3,621


    Provision for Inventory Obsolescence Reserves



    2,564



    724


    Impairment of Operating Lease Right-Of-Use Asset



    935




    Gain on Disposal of Fixed Assets



    (401)



    (284)


    Changes in Operating Assets and Liabilities:








    Merchandise Inventories 



    46,057



    9,546


    Accounts Payable 



    31,308



    (14,186)


    Customer Deposits and Store Credits 



    22,165



    4,810


    Tariff Recovery Receivable



    19,509




    Prepaid Expenses and Other Current Assets 



    821



    (3,665)


    Accrual for Legal Matters and Settlements



    2,183



    4,575


    Payments for Legal Matters and Settlements



    (4,903)



    (33,725)


    Deferred Rent Payments



    4,709




    Other Assets and Liabilities 



    9,452



    5,235


    Net Cash Provided by (Used in) Operating Activities 



    180,762



    (17,075)










    Cash Flows from Investing Activities:








    Purchases of Property and Equipment 



    (9,822)



    (13,523)


    Other Investing Activities



    949



    419


    Net Cash Used in Investing Activities 



    (8,873)



    (13,104)










    Cash Flows from Financing Activities:








    Borrowings on Credit Agreement



    45,000



    85,500


    Payments on Credit Agreement



    (26,000)



    (61,000)


    Other Financing Activities



    (506)



    (1,104)


    Net Cash Provided by Financing Activities 



    18,494



    23,396


    Effect of Exchange Rates on Cash and Cash Equivalents 



    (29)



    823


    Net Increase in Cash and Cash Equivalents 



    190,354



    (5,960)


    Cash and Cash Equivalents, Beginning of Period



    8,993



    11,565


    Cash and Cash Equivalents, End of Period


    $

    199,347


    $

    5,605


    Supplemental disclosure of non-cash operating and financing activities:








    Tenant Improvement Allowance for Leases


    $

    (676)


    $

    (310)


     

    LL Flooring

    GAAP to Non-GAAP Reconciliation

    (in thousands, except percentages)


    Items impacting gross margin with comparisons to the prior-year period include:




    Three Months Ended 


    Nine Months Ended




    September 30,


    September 30,




    2020


    2019


    2020


    2019




    $


    % of Sales


    $


    % of Sales


    $


    % of Sales


    $


    % of Sales




    (dollars in thousands)


    (dollars in thousands)


    Gross Profit, as reported (GAAP)


    $

    116,526


    39.4

    %

    $

    95,674


    36.2

    %

    $

    309,789


    39.0

    %

    $

    291,772


    35.6

    %























    Antidumping Adjustments 1




    %


    780


    0.3

    %



    %


    780


    0.1

    %

    HTS Classification Adjustments 2




    %



    %



    %


    (779)


    (0.1)

    %

    Store Closure Costs 3



    761


    0.3

    %



    %


    761


    0.1

    %



    %

    Sub-Total Items above



    761


    0.3

    %


    780


    0.3

    %


    761


    0.1

    %


    1


    0.0

    %























    Adjusted Gross Profit (non-GAAP measures)


    $

    117,287


    39.7

    %

    $

    96,454


    36.5

    %

    $

    310,550


    39.1

    %

    $

    291,773


    35.6

    %



    1

    Represents countervailing and antidumping expense associated with applicable prior-year shipments of engineered hardwood from China.

    2

    Represents classification adjustments related to the HTS duty categorization in prior periods during the three and nine months ended September 30, 2019.

    3

    Represents the inventory write-offs related to the Canadian and US store closures described more fully in Note 8 to the condensed consolidated financial statements filed in the September 30, 2020 10-Q.

     

    Items impacting SG&A with comparisons to the prior-year period include:



    Three Months Ended 


    Nine Months Ended 


    September 30,


    September 30,



    2020


    2019


    2020


    2019



    $


    % of Sales


    $


    % of Sales


    $


    % of Sales


    $


    % of Sales



    (dollars in thousands)


    (dollars in thousands)


    SG&A, as reported (GAAP)

    $

    93,374


    31.6

    %

    $

    93,495


    35.4

    %

    $

    271,869


    34.3

    %

    $

    294,392


    36.0

    %






















    Accrual for Legal Matters and Settlements 4


    2,000


    0.7

    %



    %


    1,500


    0.2

    %


    4,575


    0.6

    %

    Legal and Professional Fees5


    999


    0.3

    %


    408


    0.2

    %


    2,787


    0.4

    %


    3,403


    0.4

    %

    Store Closure Costs6


    1,803


    0.6

    %



    %


    1,803


    0.2

    %



    %

    Sub-Total Items above


    4,802


    1.6

    %


    408


    0.2

    %


    6,090


    0.8

    %


    7,978


    1.0

    %






















    Adjusted SG&A (a non-GAAP measure)

    $

    88,572


    29.9

    %

    $

    93,087


    35.2

    %

    $

    265,779


    33.5

    %

    $

    286,414


    35.0

    %



    This amount represents expense of $2 million related to the Gold matter in the third quarter of 2020 partially offset by a $0.5 million insurance recovery in the second quarter of 2020 of legal fees related to certain significant legal action. 2019 reflects a $4.75 million expense for the Kramer employment case and certain Related Laminate Matters. These matters are described more fully in Note 7 to the condensed consolidated financial statements filed in the September 30, 2020 10-Q.

    Represents charges to earnings related to our defense of certain significant legal actions during the period. This does not include all legal costs incurred by the Company. 

    6

    Represents store lease impairments, write down on fixed assets and employee termination benefits related to the Canadian and US store closures described more fully in Note 8 to the condensed consolidated financial statements filed in the September 30, 2020 10-Q.

     

    Items impacting operating income (loss) and operating margin with comparisons to the prior-year period include:














    Three Months Ended 


    Nine Months Ended 



    September 30,


    September 30,



    2020


    2019


    2020


    2019



    $


    % of Sales


    $


    % of Sales


    $


    % of Sales


    $


    % of Sales



    (dollars in thousands)


    (dollars in thousands)


    Operating Income (Loss), as reported (GAAP)

    $

    23,152


    7.8

    %

    $

    2,179


    0.8

    %

    $

    37,920


    4.8

    %

    $

    (2,620)


    (0.3)

    %






















    Gross Margin Items:





















    Antidumping Adjustments 1



    %


    780


    0.3

    %



    %


    780


    0.1

    %

    HTS Classification Adjustments 2



    %



    %



    %


    (779)


    (0.1)

    %

    Store Closure Costs 3


    761


    0.3

    %



    %


    761


    0.1

    %



    %

    Gross Margin Subtotal


    761


    0.3

    %


    780


    0.3

    %


    761


    0.1

    %


    1


    0.0

    %






















    SG&A Items:





















    Accrual for Legal Matters and Settlements4


    2,000


    0.7

    %



    %


    1,500


    0.2

    %


    4,575


    0.6

    %

    Legal and Professional Fees5


    999


    0.3

    %


    408


    0.2

    %


    2,787


    0.4

    %


    3,403


    0.4

    %

    Store Closure Costs6


    1,803


    0.6

    %



    %


    1,803


    0.2

    %



    %

    SG&A Subtotal 


    4,802


    1.6

    %


    408


    0.2

    %


    6,090


    0.8

    %


    7,978


    1.3

    %






















    Adjusted Operating Income (a non-GAAP measure)

    $

    28,715


    9.7

    %

    $

    3,367


    1.3

    %

    $

    44,771


    5.6

    %

    $

    5,359


    1.0

    %


    1,2,3,4,5,6    See the Gross Profit and SG&A sections above for more detailed explanations of these individual items.

     

    Items impacting earnings per diluted share with comparisons to the prior-year periods include:



    Three Months Ended


    Nine Months Ended


     September 30,


    September 30,


    2020


    2019


    2020

    2019


    (dollars in thousands, except per share
    amounts)


    (dollars in thousands, except per share
    amounts)

    Net Income (Loss), as reported (GAAP)

    $

    15,503


    $

    1,045


    $

    30,377


    $

    (6,735)

    Net Income (Loss) per Diluted Share (GAAP)

    $

    0.53


    $

    0.04


    $

    1.04


    $

    (0.23)













    Gross Margin Items:












    Antidumping Adjustments 1




    576





    576

    HTS Classification Adjustments 2








    (575)

    Store Closure Costs 3


    561





    561



    Gross Margin Subtotal


    561



    576



    561



    1













    SG&A Items:












    Accrual for Legal Matters and Settlements 4


    1,476





    1,107



    3,376

    Legal and Professional Fees5


    737



    301



    2,057



    2,511

    Store Closure Costs6


    1,331





    1,331



    SG&A Subtotal 


    3,544



    301



    4,495



    5,888













    Adjusted Earnings (Loss)

    $

    19,608


    $

    1,922


    $

    35,433


    $

    (846)

    Adjusted Earnings (Loss) per Diluted Share (a non-GAAP measure)

    $

    0.67


    $

    0.07


    $

    1.21


    $

    (0.03)


    1,2,3,4,5,6    See the Gross Profit and SG&A sections above for more detailed explanations of these individual items.  These items have been tax affected at the Company's federal statutory rate of 26.1%.

     

    SOURCE Lumber Liquidators