RICHMOND, Va., Feb. 6, 2020 /PRNewswire/ -- Lumber
Liquidators (NYSE: LL) today announced that Dennis R. Knowles has resigned as President and
Chief Executive Officer and as a member of the Board of
Directors, effective February 5, 2020. The Board of
Directors has appointed Charles E.
Tyson, the Company's Chief Customer Experience Officer, as
Interim President and Principal Executive Officer and Mr. Knowles'
duties will be divided between Mr. Tyson and Nancy A. Walsh, the Company's Chief Financial
Officer, while the Board of Directors conducts a Chief Executive
Officer search of internal and external candidates. The Board is
engaging a national recruitment firm to assist with this search.
Mr. Tyson also will remain the Chief Customer Experience
Officer. Mr. Tyson and Ms. Walsh will each report to the Board of
Directors.
Mr. Tyson joined the Company in June
2018 after serving in several key senior executive roles for
Advance Auto Parts, Inc. As the Company's Chief Customer Experience
Officer, Mr. Tyson has been responsible for the Company's
merchandising and marketing, consumer and pro sales, installation,
distribution and, now additionally, store operations. Among other
initiatives, Mr. Tyson has led the Company's digital strategy
including the development and introduction of its innovative new
online tools for customers.
Nancy Taylor, Chairperson of the
Company, said, "On behalf of the
entire Board, I would like to thank Dennis for his steady hand and
tireless efforts in the face of many challenges during his tenure
as CEO. We wish him well in his future endeavors."
Mr. Knowles commented, "I am
proud of the work we have accomplished to resolve many outstanding
issues for Lumber Liquidators, and want to thank the employees of
Lumber Liquidators for their support and commitment."
Mr. Tyson said, "I appreciate the confidence of the Board and
the opportunity to lead the Company during this transition period.
We have a strong leadership team and, together, we are excited to
continue our transformational strategy."
2019 Outlook
Lumber Liquidators also today announced that it is reaffirming
its financial outlook for full-year 2019 issued on December 12, 2019. The Company expects to release
its 2019 earnings on its customary schedule.
About Lumber Liquidators
Lumber Liquidators is one of North
America's leading specialty retailers of hard-surface
flooring with 419 stores as of September 30,
2019. The Company features more than 400 varieties of floors
in the latest styles, including solid and engineered hardwood,
bamboo, cork, laminate, waterproof vinyl plank and porcelain tile
flooring. Additionally, Lumber Liquidators provides a wide
selection of flooring enhancements and accessories to complement,
install and maintain new floors. Every location is staffed with
flooring experts who can provide advice, pro services and
installation options for all of Lumber Liquidators' products, much
of which is in stock and ready for delivery.
Learn more about Lumber Liquidators:
- Commitment to compliance, quality and the communities it
serves: https://www.lumberliquidators.com/quality.
- Corporate giving: LayItForward.LumberLiquidators.com.
- Follow on social media: Facebook, Instagram and Twitter.
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. These risks include,
without limitation, the impact on us of any of the following:
- the outcomes of legal proceedings, and the related impact on
liquidity;
- reputational harm;
- obligations related to and impacts of new laws and regulations,
including pertaining to tariffs;
- obtaining products from abroad, including the effects of
tariffs, as well as the effects of antidumping and countervailing
duties;
- obligations under various settlement agreements and other
compliance matters;
- disruption due to cybersecurity threats, including any impacts
from a network security incident;
- disruptions related to our corporate headquarters
relocation;
- inability to open new stores, find suitable locations for our
new store concept, and fund other capital expenditures;
- inability to execute on our key initiatives or such key
initiatives do not yield desired results;
- managing growth;
- transportation costs;
- damage to our assets;
- disruption in our ability to distribute our products;
- operating stores in Canada and
an office in China;
- managing third-party installers and product delivery
companies;
- renewing store or warehouse leases;
- having sufficient suppliers;
- our, and our suppliers', compliance with complex and evolving
rules, regulations, and laws at the federal, state, and local
level;
- disruption in our ability to obtain products from our
suppliers;
- product liability claims;
- availability of suitable hardwood, including due to disruptions
from the impacts of severe weather;
- changes in economic conditions, both domestic and abroad;
- sufficient insurance coverage, including cybersecurity
insurance;
- access to and costs of capital;
- the handling of confidential customer information, including
the impacts from the California Consumer Privacy Act;
- management information systems disruptions;
- alternative e-commerce offerings;
- our advertising and overall marketing strategy;
- anticipating consumer trends;
- competition;
- impact of changes in accounting guidance, including the
implementation guidelines and interpretations;
- maintenance of valuation allowances on deferred tax assets and
the impacts thereof;
- internal controls including those over tariffs;
- stock price volatility; and
- anti-takeover provisions.
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. Information regarding these and other additional
risks and uncertainties is contained in the Company's other reports
filed with the Securities and Exchange Commission, including the
Item 1A, "Risk Factors," section of the Form 10-K for the year
ended December 31, 2018, and the Item
1A, "Risk Factors," section of the Form 10-Q for the quarter ended
September 30, 2019.
Non-GAAP and Other Information
To supplement the financial measures prepared in accordance with
U.S. generally accepted accounting principles (GAAP), the Company
uses Adjusted Operating Margin. This non-GAAP financial measures
should be viewed in addition to, and not in lieu of, financial
measures calculated in accordance with GAAP. This supplemental
measure may vary from, and may not be comparable to, similarly
titled measures by other companies.
The non-GAAP financial measure is presented because management
uses this non-GAAP financial measures to evaluate the Company's
operating performance. 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 measure excludes
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:
Lumber Liquidators Investor Relations
ir@lumberliquidators.com
Tel: 757.566.7512
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SOURCE Lumber Liquidators