RICHMOND, Va., May 28, 2020 /PRNewswire/ -- Lumber
Liquidators (NYSE: LL), a leading specialty retailer of
hard-surface flooring in North
America, announced today that Charles E. Tyson has been named President and
Chief Executive Officer, and has been appointed to the Company's
Board of Directors, effective May 27,
2020. Mr. Tyson was appointed Interim President and Principal
Executive Officer on February 5,
2020. Mr. Tyson will report to the Board of Directors.
Mr. Tyson joined the Company in June
2018 as Chief Customer Experience Officer and has been
leading the Company's merchandising and marketing, consumer and pro
sales, installation, supply chain, distribution and store
operations. Prior to joining Lumber Liquidators, Mr. Tyson
served in several key senior roles for Advance Auto Parts, Inc. for
over nine years, most recently as Executive Vice
President-Merchandising, Marketing and Supply Chain. Prior to
Advance Auto Parts, Mr. Tyson served in a variety of senior roles
at Office Max and Office Depot.
Nancy Taylor, Chairperson for the
Company, said, "Charles has played a critical role in the
development of the Company's go forward strategy as well as the
transformation that is currently underway. He is a world-class
leader who is navigating the Company through the current
unprecedented COVID-19 crisis as well as positioning us for the
long term future. With Charles' appointment as CEO, we are pleased
to have successfully implemented our succession plan providing
strong continuity for LL Flooring as we continue to execute our
transformation plan and invest in the key initiatives to improve
our customer experience, drive traffic and transactions and improve
profitability. Having considered several strong candidates
identified through our process and partnership with a national
recruitment firm, we are confident that Charles is the right choice
to continue building an experienced and high-performance leadership
team to position us for a strong future. I would also like to
take this opportunity on behalf of the Board to recognize all of
the Company's associates who have worked tirelessly to adapt to the
challenges of the last few months."
Charles Tyson said, "I appreciate
the confidence of the Board and the opportunity to lead the Company
during the current crisis and as the recovery continues. Our
transformation is well underway and we are investing in the key
initiatives that we believe positions us for a strong future."
Business Update
"I would like to thank all of our associates for their committed
service during these trying times, many of whom are making personal
sacrifices to help our company weather the current COVID-19
crisis," said President and Chief Executive Officer Charles Tyson. "Despite experiencing the
impact of COVID-19 late in the first quarter, we were extremely
pleased with our performance. Comparable store sales were
solidly positive for the majority of the quarter, we delivered
significant gross margin growth and expenses were in line with
expectations which led to strong first quarter operating
income. We entered the year with a plan focused on our
strategic pillars of improving our customer experience, driving
traffic in our stores and online, and enhancing profitability.
Our first quarter performance provides strong evidence of our
transformational progress. Our store teams were engaged and
delivering expert service, and we saw evidence that our new brand
messaging, digital tools and promotional cadence are gaining
traction."
"Beginning in early March, we started to see the impact of the
COVID-19 pandemic, and our sales results slowed significantly as
the month progressed," Tyson continued. "We have been focused
on safely executing in the current environment and evolving our
operating models to match market-by-market conditions while safely
serving customers. As many as 56 of our stores were closed for a
period of time while all other stores operated under reduced hours
and/or warehouse-only conditions, offering curbside pickup and job
site delivery for our Pros and DIY customers. Our teams have
been leading with innovation and creativity to solve customers'
problems while managing a safe work environment for our associates
and customers. As of today, approximately 60% of our stores
are fully operational, approximately 25% are scheduling
appointments to allow customers to visit our showrooms, and
approximately 15% are utilizing our warehouse-only model while less
than 10 remain closed."
"In addition to evolving our operating models, we have taken
steps to bolster liquidity by amending and increasing the size of
our credit facility, reducing costs, managing inventory flow,
deferring payments, and delaying or stopping non-critical capital
projects including pausing the planned opening of certain new
stores in the second half of the year," Tyson added. "These
steps provide meaningful incremental liquidity to aid in weathering
COVID-19-related challenges. While our near-term focus is on
effectively navigating the current crisis, we are also continuing
to invest in and execute our transformation plan to position us for
a strong future."
First Quarter Results
Net sales in the first quarter of 2020 increased $1.2 million, or 0.4%, to $267 million from the first quarter of
2019. Through the week ending March
21, 2020, the Company's quarter-to-date comparable store
sales increased approximately 4%, but as the impact of COVID-19
began to broadly impact consumers, orders declined significantly
and first quarter comparable stores sales fell to negative 0.9% by
the end of the quarter. Partially offsetting the decline from
COVID-19 was the impact of an additional day, February 29, in the first quarter of 2020.
The Company opened one new store in the first quarter of 2020
bringing total store count to 420 as of March 31, 2020.
Gross profit increased 12% in the first quarter of 2020 to
$105 million from $94 million in the comparable period in
2019. Gross margin increased 410 basis points to 39.3% in the
first quarter of 2020 from 35.2% in the first quarter of 2019 as
margin enhancement efforts, tariff exclusions and supply chain
efficiency positively impacted results. Gross margin was also
aided by a mix of higher-margin manufactured products and reduced
discounting in stores.
SG&A expense decreased 0.9% to $96
million in the first quarter of 2020 from the comparable
period in 2019 but included certain costs in both periods related
to investigations and lawsuits. Excluding these items as
shown in the table that follows, Adjusted SG&A (a non-GAAP
measure) was essentially flat to the same period in the prior year
and adjusted SG&A as a percentage of sales (a non-GAAP measure)
decreased to 35.7% in the first quarter of 2020 from 35.8% in the
first quarter of 2019. The Company's focus on expense
management and process efficiency helped deliver the year-over-year
reduction in Adjusted SG&A as a percent of sales in the
quarter.
Operating income was $8.8 million
for the first quarter of 2020 compared to an operating loss of
$3.4 million for the first quarter of
2019. Adjusted Operating Income (a non-GAAP measure) was
$9.6 million for the first quarter of
2020, a year-over-year increase of over $11
million compared to an adjusted operating loss $1.6 million for the first quarter of 2019.
The most significant driver of the increase was the impact of
higher gross margin rate as described above.
Income tax benefit was $4.4
million for the first quarter of 2020 compared to income tax
expense of $0.2 million for the first
quarter of 2019. The benefit in 2020 was driven by the impact
of the provisions of the March 27,
2020 CARES Act which allowed us to carryback certain losses
to prior periods and deduct certain capital expenditures from prior
periods more quickly giving rise to a $4.9
million Federal tax refund which is expected to be received
later this year.
Net income for the first quarter of 2020 was $12 million, or $0.42 per diluted share, compared to a net loss
of $4.9 million, or $0.17 per diluted share, for the first quarter of
2019. Adjusted Earnings and Adjusted Earnings per Diluted
Share (non-GAAP measures) for the first quarter of 2020 increased
$16 million and $0.57 year-over-year and were $13 million and $0.44 per diluted share compared to an Adjusted
Loss of $3.6 million and $0.13 per diluted share for the first quarter of
2019.
Net cash provided by operating activities was $36 million in the quarter, an increase of
$29 million over the first quarter of
2019. The increase was primarily driven by strong growth in
net income and working capital efficiencies in the quarter.
As of March 31, 2020, the Company
had $39 million outstanding under its
revolving credit facility and $25
million outstanding under its FILO Term Loan.
Collectively, this is an $18 million
decrease from the end of the fourth quarter 2019 while the cash and
cash equivalents balance increased by $13
million. As of March 31, 2020,
the Company had $131 million in
liquidity, comprised of $22 million
of cash and cash equivalents and $109
million of availability under the Credit Agreement.
COVID-19 Update
The end of the first quarter of 2020 was marked by the impact of
the COVID-19 pandemic and a significant decline in sales as the
Company executed a plan to serve customers while keeping the health
and safety of associates paramount. Aligning with these priorities,
the Company is executing a variety of flexible operating models
that utilize safety measures such as personal protective equipment
for associates and allow for contact-free engagement.
The Company is leveraging strategic investments in digital
capabilities made over the past 18 months, including the Floor
Finder and Picture It! tools, to serve customers at LLFlooring.com.
Web traffic has increased meaningfully in recent weeks, and
adapting to the change in consumer behaviors, the Company has
expanded availability of online flooring samples and is currently
offering extended hours for voice and click-to-chat customer
support, curbside store pickup and enhanced home delivery
options. In addition, the Company has developed a new
in-store remote video consultation service utilizing online video
and an actual store showroom to deliver an employee-guided shopping
experience to aid customers in their decision making.
As markets have begun to reopen, comparable store sales declines
of approximately 45% in the last week of March have improved and
through May 23, 2020 second
quarter-to-date comparable store sales are down approximately
30%. The continued expansion of gross margin percentage and
lower expenses is partially offsetting the impact on profitability
from lower sales.
"I would also like to thank our vendor-partners and other
stakeholders for their continuing support," Tyson concluded.
"LL Flooring is resilient and we believe we are positioned to
manage the current unprecedented crisis."
Liquidity Update
As previously announced, on April 17,
2020, the Company amended its Credit Agreement to increase
total availability under the Senior Secured Credit Facilities from
$200 million to $237.5 million, and increased the advance rate
against inventory under the borrowing base. The current credit
agreement maturity remains March 2024
and contains no financial covenants, except for a fixed charge
coverage ratio if borrowings exceed 90% of availability.
As of May 21, 2020, the Company
had liquidity of approximately $145
million, consisting of excess availability under its Credit
Agreement of $74 million, and cash
and cash equivalents of $71
million. In addition, the Company's debt balance as of
May 21 was $101 million, unchanged since amending the Credit
Agreement on April 17.
The Company is modeling multiple financial scenarios to ensure
it maximizes liquidity through this unprecedented crisis, including
stress-testing downside assumptions and contemplating various
recovery trajectories. Based on what the Company knows today
about the COVID-19 crisis, it believes it has sufficient liquidity,
but should conditions warrant, the Company has additional steps it
could take to further bolster liquidity.
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 COVID-19 crisis, including its impact on the Company,
as well as its associates, customers and business partners, makes
it uniquely challenging to accurately forecast future financial
performance.
Conference Call and Webcast
Information
The Company plans to host a conference call and audio webcast on
May 28, 2020, at 8:30 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
June 4, 2020 and may be accessed by
dialing (844) 512-2921 or (412) 317-6671 and entering pin number
13704307. 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 Lumber Liquidators
Lumber Liquidators is one of North America's leading specialty
retailers of hard-surface flooring with 420 stores as of
March 31, 2020. The Company
features more than 400 varieties of floors in the latest
styles, including waterproof vinyl plank, solid and engineered
hardwood, laminate, bamboo, porcelain tile and cork 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:
- an overall decline in the health of the economy, the
hard-surface flooring industry, the housing market and overall
consumer spending, including the effects of the COVID-19
pandemic;
- impact on sales, ability to obtain and distribute products, and
employee safety and retention, including the effects of the
COVID-19 pandemic;
- obligations related to and impacts of new laws and regulations,
including pertaining to tariffs and exemptions;
- the outcomes of legal proceedings, and the related impact on
liquidity;
- reputational harm;
- obtaining products from abroad, including the effects of
COVID-19 and 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;
- 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, including
due to disruptions from the impacts of severe weather;
- operating stores in Canada and
an office in China;
- managing third-party installers and product delivery
companies;
- renewing store, warehouse, or other corporate 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;
- 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;
- 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, 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 the following non-GAAP financial measures: (i) Adjusted
SG&A; (ii) Adjusted SG&A as a percentage of net sales;
(iii) Adjusted Operating Income; (iv) Adjusted Operating Margin;
(v) Adjusted Earnings; and (vi) 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:
Lumber Liquidators Investor Relations
ir@lumberliquidators.com
Tel: 804-420-9801
(Tables Follow)
Lumber Liquidators
Holdings, Inc.
Consolidated
Balance Sheets
(Unaudited, in
thousands)
|
|
|
|
March
31,
|
|
December 31,
|
|
|
2020
|
|
2019
|
Assets
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
22,424
|
|
$
|
8,993
|
Merchandise
Inventories
|
|
|
269,636
|
|
|
286,369
|
Prepaid
Expenses
|
|
|
6,053
|
|
|
8,288
|
Income Tax
Receivable
|
|
|
1,972
|
|
|
—
|
Deposit for Legal
Settlement
|
|
|
21,500
|
|
|
21,500
|
Tariff Recovery
Receivable
|
|
|
27,157
|
|
|
27,025
|
Other Current
Assets
|
|
|
5,995
|
|
|
6,938
|
Total Current
Assets
|
|
|
354,737
|
|
|
359,113
|
Property and
Equipment, net
|
|
|
98,471
|
|
|
98,733
|
Operating Lease
Right-of-Use Assets
|
|
|
120,070
|
|
|
121,796
|
Goodwill
|
|
|
9,693
|
|
|
9,693
|
Other
Assets
|
|
|
6,848
|
|
|
6,674
|
Total
Assets
|
|
$
|
589,819
|
|
$
|
596,009
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts
Payable
|
|
$
|
68,634
|
|
$
|
59,827
|
Customer Deposits and
Store Credits
|
|
|
37,836
|
|
|
41,571
|
Accrued
Compensation
|
|
|
9,937
|
|
|
11,742
|
Sales and Income Tax
Liabilities
|
|
|
4,657
|
|
|
7,225
|
Accrual for Legal
Matters and Settlements - Current
|
|
|
67,466
|
|
|
67,471
|
Operating Lease
Liabilities - Current
|
|
|
31,383
|
|
|
31,333
|
Other Current
Liabilities
|
|
|
18,841
|
|
|
18,937
|
Total Current
Liabilities
|
|
|
238,754
|
|
|
238,106
|
Other Long-Term
Liabilities
|
|
|
14,011
|
|
|
13,757
|
Operating Lease
Liabilities - Long-Term
|
|
|
98,916
|
|
|
100,470
|
Deferred Tax
Liability
|
|
|
804
|
|
|
426
|
Credit
Agreement
|
|
|
64,000
|
|
|
82,000
|
Total
Liabilities
|
|
|
416,485
|
|
|
434,759
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
Common Stock ($0.001
par value; 35,000 shares authorized; 30,105 and 29,958 shares
issued and 28,812 and 28,714 shares outstanding,
respectively)
|
|
|
30
|
|
|
30
|
Treasury Stock, at
cost (1,293 and 1,245 shares, respectively)
|
|
|
(142,630)
|
|
|
(142,314)
|
Additional
Capital
|
|
|
218,736
|
|
|
218,616
|
Retained
Earnings
|
|
|
98,733
|
|
|
86,498
|
Accumulated Other
Comprehensive Loss
|
|
|
(1,535)
|
|
|
(1,580)
|
Total
Stockholders' Equity
|
|
|
173,334
|
|
|
161,250
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
589,819
|
|
$
|
596,009
|
Lumber Liquidators
Holdings, Inc.
Consolidated
Statements of Operations
(Unaudited, in
thousands, except per share amounts)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
Net
Sales
|
|
|
|
|
|
|
Net Merchandise
Sales
|
|
$
|
238,782
|
|
$
|
237,899
|
Net Services
Sales
|
|
|
28,592
|
|
|
28,321
|
Total Net
Sales
|
|
|
267,374
|
|
|
266,220
|
Cost of
Sales
|
|
|
|
|
|
|
Cost of Merchandise
Sold
|
|
|
140,745
|
|
|
151,425
|
Cost of Services
Sold
|
|
|
21,657
|
|
|
21,184
|
Total Cost of
Sales
|
|
|
162,402
|
|
|
172,609
|
Gross
Profit
|
|
|
104,972
|
|
|
93,611
|
Selling, General and
Administrative Expenses
|
|
|
96,207
|
|
|
97,032
|
Operating Income
(Loss)
|
|
|
8,765
|
|
|
(3,421)
|
Other
Expense
|
|
|
883
|
|
|
1,290
|
Income (Loss) Before
Income Taxes
|
|
|
7,882
|
|
|
(4,711)
|
Income Tax (Benefit)
Expense
|
|
|
(4,353)
|
|
|
213
|
Net Income
(Loss)
|
|
$
|
12,235
|
|
$
|
(4,924)
|
Net Income (Loss)
per Common Share—Basic
|
|
$
|
0.43
|
|
$
|
(0.17)
|
Net Income (Loss)
per Common Share—Diluted
|
|
$
|
0.42
|
|
$
|
(0.17)
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
28,739
|
|
|
28,646
|
Diluted
|
|
|
28,853
|
|
|
28,646
|
Lumber Liquidators
Holdings, Inc.
Consolidated
Statements of Cash Flows
(Unaudited, in
thousands)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
$
|
12,235
|
|
$
|
(4,924)
|
Adjustments to
Reconcile Net Income (Loss):
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
|
4,493
|
|
|
4,312
|
Deferred Income Taxes
Provision
|
|
|
378
|
|
|
—
|
Stock-Based
Compensation Expense
|
|
|
120
|
|
|
1,033
|
Provision for
Inventory Obsolescence Reserves
|
|
|
452
|
|
|
177
|
(Gain) Loss on
Disposal of Fixed Assets
|
|
|
(743)
|
|
|
53
|
Changes in Operating
Assets and Liabilities:
|
|
|
|
|
|
|
Merchandise
Inventories
|
|
|
16,379
|
|
|
17,098
|
Accounts
Payable
|
|
|
9,055
|
|
|
(16,932)
|
Customer Deposits and
Store Credits
|
|
|
(3,735)
|
|
|
7,426
|
Prepaid Expenses and
Other Current Assets
|
|
|
1,998
|
|
|
(4,059)
|
Accrual for Legal
Matters and Settlements
|
|
|
—
|
|
|
350
|
Other Assets and
Liabilities
|
|
|
(4,667)
|
|
|
1,943
|
Net Cash Provided
by Operating Activities
|
|
|
35,965
|
|
|
6,477
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Purchases of Property
and Equipment
|
|
|
(4,480)
|
|
|
(3,247)
|
Other Investing
Activities
|
|
|
306
|
|
|
17
|
Net Cash Used in
Investing Activities
|
|
|
(4,174)
|
|
|
(3,230)
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Borrowings on Credit
Agreement
|
|
|
8,000
|
|
|
13,000
|
Payments on Credit
Agreement
|
|
|
(26,000)
|
|
|
(11,000)
|
Other Financing
Activities
|
|
|
(316)
|
|
|
(727)
|
Net Cash (Used in)
Provided by Financing Activities
|
|
|
(18,316)
|
|
|
1,273
|
Effect of Exchange
Rates on Cash and Cash Equivalents
|
|
|
(44)
|
|
|
1,005
|
Net Increase in
Cash and Cash Equivalents
|
|
|
13,431
|
|
|
5,525
|
Cash and Cash
Equivalents, Beginning of Period
|
|
|
8,993
|
|
|
11,565
|
Cash and Cash
Equivalents, End of Period
|
|
$
|
22,424
|
|
$
|
17,090
|
|
|
|
|
|
|
|
Supplemental
disclosure of non-cash operating and financing
activities:
|
|
|
|
|
|
|
Tenant Improvement
Allowance for Leases
|
|
$
|
(496)
|
|
$
|
(146)
|
|
|
|
|
|
|
|
Lumber Liquidators
Holdings, Inc.
GAAP to Non-GAAP
Reconciliation
(in thousands,
except percentages)
|
|
Items impacting
SG&A with comparisons to the prior-year period
include:
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2019
|
|
|
$
|
%
Sales
|
|
$
|
%
Sales
|
|
|
(dollars in thousands)
|
SG&A, as reported
(GAAP)
|
|
$
|
96,207
|
36.0
|
%
|
|
$
|
97,032
|
36.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Accrual for Legal
Matters and Settlements 1
|
|
|
—
|
—
|
%
|
|
|
(175)
|
(0.1)
|
%
|
Legal and
Professional Fees2
|
|
|
793
|
0.3
|
%
|
|
|
1,978
|
0.7
|
%
|
Sub-Total Items
above
|
|
|
793
|
0.3
|
%
|
|
|
1,803
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A (a
non-GAAP measure)
|
|
$
|
95,414
|
35.7
|
%
|
|
$
|
95,229
|
35.8
|
%
|
|
|
1
|
This amount
represents a charge to earnings for certain Related Laminate
Matters, which is described more fully in Note 7 to the condensed
consolidated financial statements filed in the March 31, 2020
10-Q.
|
2
|
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.
|
Items impacting operating income (loss) and operating margin
with comparisons to the prior-year period include:
|
Three Months Ended
March 31,
|
|
|
|
(dollars in thousands)
|
|
|
|
2020
|
%
Sales
|
|
2019
|
%
Sales
|
Operating Income
(Loss), as reported (GAAP)
|
$
|
8,765
|
3.3
|
%
|
|
$
|
(3,421)
|
(1.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
SG&A
Items:
|
|
|
|
|
|
|
|
|
|
Accrual for Legal
Matters and Settlements1
|
|
—
|
—
|
%
|
|
|
(175)
|
(0.1)
|
%
|
Legal and
Professional Fees2
|
|
793
|
0.3
|
%
|
|
|
1,978
|
0.7
|
%
|
SG&A
Subtotal
|
|
793
|
0.3
|
%
|
|
|
1,803
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)/Margin (a non-GAAP measure)
|
$
|
9,558
|
3.6
|
%
|
|
$
|
(1,618)
|
(0.7)
|
%
|
|
|
1,2
|
See the SG&A
section above for more detailed explanations of these individual
items.
|
Lumber Liquidators
Holdings, Inc.
GAAP to Non-GAAP
Reconciliation
(in thousands,
except percentages)
|
|
Items impacting
earnings per diluted share with comparisons to the prior-year
periods include:
|
|
|
Three Months Ended
March 31,
|
|
2020
|
|
2019
|
|
(dollars in thousands, except per share
amounts)
|
Net Income (Loss), as
reported (GAAP)
|
$
|
12,235
|
|
$
|
(4,924)
|
Net Income (Loss) per
Diluted Share (GAAP)
|
$
|
0.42
|
|
$
|
(0.17)
|
|
|
|
|
|
|
SG&A
Items:
|
|
|
|
|
|
Accrual for Legal
Matters and Settlements1
|
|
—
|
|
|
(129)
|
Legal and
Professional Fees 2
|
|
586
|
|
|
1,461
|
SG&A
Subtotal
|
|
586
|
|
|
1,332
|
|
|
|
|
|
|
Adjusted Earnings
(Loss)
|
$
|
12,821
|
|
$
|
(3,592)
|
Adjusted Earnings
(Loss) per Diluted Share (a non-GAAP measure)
|
$
|
0.44
|
|
$
|
(0.13)
|
|
|
1,2
|
See the SG&A
section 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%.
|
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SOURCE Lumber Liquidators