-- Company to Increase Investment in
Long-Term Strategies to Accelerate Growth --
Lumber Liquidators (“LL Flooring” or “Company”) (NYSE: LL), a
leading specialty retailer of hard-surface flooring in the U.S.,
today announced financial results for the third quarter ended
September 30, 2021.
President and Chief Executive Officer Charles Tyson said,
“During the third quarter, our associates continued to do an
outstanding job exceeding our customers’ needs in the face of an
increasingly challenging supply chain and inflationary environment.
We were pleased to report strong double-digit growth in sales to
Pro customers and installation sales versus the third quarter of
last year. As anticipated, our sales to DIY customers were down
versus last year, reflecting a shift in consumer spending to other
product and service categories, as well as tough comparisons to the
nesting spending that we saw in the third quarter of 2020.”
Tyson continued, “Our strong net sales and profitability growth
on a two-year basis underscore the continued traction we are
gaining on our strategic initiatives. These are truly unprecedented
times from a global supply chain perspective. Notwithstanding the
volatile operating environment, we are focused on furthering our
competitive advantages and positioning LL Flooring as customers’
first choice in hard-surface flooring. With more than 500 varieties
of hard-surface floors featuring a range of quality styles and
on-trend designs, we offer our customers quality choices and
provide high-touch service and advice to help them achieve their
flooring project needs. Our team’s agility in launching new
innovative products sourced from expanded locations across our vast
network of global sourcing partners further strengthens our unique
competitive position.”
Tyson added, “As we see the opportunity to expand the LL
Flooring brand and drive our accelerated growth, we are increasing
our investment in our long-term strategies, initially in two key
areas: We plan to increase the number of new stores we open each
year to improve our omnichannel convenience, and to expand
investments in our multi-pronged strategy to grow sales to Pro
customers. The capabilities we are building and the investments we
are making in these multi-year strategies will position LL Flooring
to grow faster and gain market share.”
Third Quarter Financial Highlights
- Net sales of $282.2 million decreased 4.6% compared to
the same period last year, as double-digit growth in Pro and
services sales partially offset a decrease in DIY sales; and
increased 6.9% compared to the third quarter of 2019, driven
primarily by strong growth in Pro customer and services sales.
- Total comparable store sales decreased 4.5% versus the
same period last year, but increased 6.4% on a two-year stack basis
(which does not reflect the impact of store closures and openings
between periods).
- Gross margin of 37.3% decreased 210 basis points as a
percentage of sales compared to the same period last year and
increased 110 basis points compared to the third quarter of 2019;
Adjusted gross margin1 of 37.3% decreased 240 basis points as a
percentage of sales compared to the same period last year,
primarily reflecting significantly higher transportation and
material costs, and higher tariffs (collectively up more than 700
basis points) that the Company was able to partially mitigate by
pricing, promotion and alternative country/vendor sourcing
strategies; and increased 80 basis points compared to the third
quarter of 2019, primarily reflecting the Company’s pricing,
promotion and alternative country/vendor sourcing strategies that
more than mitigated higher material and transportation costs.
- SG&A as a percentage of sales of 33.0% increased 140
basis points compared to the third quarter of last year and
decreased 240 basis points compared to the third quarter of 2019;
Adjusted SG&A1 as a percentage of sales of 33.1% increased 320
basis points compared to the third quarter of last year, primarily
due to increased investment in the field and to support growth
initiatives, last year’s $2.5 million favorable business
interruption insurance settlement and lower net sales compared to
the third quarter of 2020; and decreased 210 basis points on higher
net sales compared to the third quarter of 2019.
- Operating margin of 4.3% decreased 350 basis points
compared to the third quarter of last year and increased 350 basis
points compared to the third quarter of 2019; Adjusted operating
margin1 of 4.1% decreased 560 basis points compared to the third
quarter of last year, and increased 280 basis points compared to
the third quarter of 2019.
- Diluted EPS of $0.30 decreased $0.23 compared to the
third quarter of last year and increased $0.26 compared to the
third quarter of 2019; Adjusted Earnings Per Diluted Share1 of
$0.29 decreased $0.38 compared to the third quarter of last year
and increased $0.22 compared to the third quarter of 2019.
- During the third quarter, the Company opened six new
stores, bringing total stores to 422 as of September 30,
2021.
1Please refer to the GAAP to non-GAAP reconciliation tables
below for more information.
Cash Flow & Liquidity
As of September 30, 2021, the Company had liquidity of $232.2
million, consisting of excess availability under its Credit
Agreement of $128.0 million, and cash and cash equivalents of
$104.2 million.
During the first nine months of 2021, the Company generated
$50.3 million of cash flows from operating activities, primarily
driven by $31.4 million of net income and positive working capital
changes.
Business Outlook
The Company continues to navigate uncertainty in the
macroeconomic environment related to global supply chain
disruptions, consumer spending, inflation and a challenging labor
market. As a result, the Company is not providing financial
guidance at this time.
The Company is pleased with the traction it is gaining on its
transformation initiatives and the momentum in its Pro customer and
services sales; however, the Company currently expects challenging
DIY customer comparisons to continue in the fourth quarter of
2021.
The Company also expects higher material and transportation
costs will be a headwind to gross margins in the fourth quarter of
2021 and into 2022 as the goods sell through. The Company will
continue to look to offset these higher costs through pricing and
promotion strategies but will monitor the market to inform and
guide its decisions.
The Company expects the increased investments in its field
organization to result in higher SG&A as a percentage of sales
in the fourth quarter of 2021 compared to the third quarter of
2021. In addition, the Company expects its increased investments in
its growth strategies will increase its SG&A and capital
spending in 2022 versus 2021.
The Company now expects capital expenditures in the range of
approximately $19 million to $23 million in 2021.
“We believe the increased investments in our strategies to grow
Pro customer sales and open a greater number of new stores each
year as well as the investments we are making to attract and retain
a talented workforce will fuel our accelerated growth over the next
several years beginning in the second half of 2022,” said
Tyson.
Learn More about LL Flooring
- Our commitment to quality, compliance, the communities we serve
and corporate giving: https://llflooring.com/corp/quality.html
- Follow us on social media: Facebook, Instagram and
Twitter.
Conference Call and Webcast Information
The Company plans to host a conference call and audio webcast on
November 3, 2021, at 8:00 a.m. Eastern Time. The conference may be
accessed by dialing (844) 200-6205 or (646) 904-5544 and entering
pin number 087906. A replay will be available approximately two
hours after the call ends through November 10, 2021 and may be
accessed by dialing (929) 458-6194 and entering pin number 673066.
The live conference call and replay can also be accessed via audio
webcast at the Investor Relations section of the Company's website,
https://investors.llflooring.com.
About Lumber Liquidators
LL Flooring is one of the leading specialty retailers of
hard-surface flooring in the U.S. with 422 stores as of September
30, 2021. The Company seeks to offer the best customer experience
online and in stores, with more than 500 varieties of hard-surface
floors featuring a range of quality styles and on-trend designs. LL
Flooring’s online tools also help empower customers to find the
right solution for the space they’ve envisioned. LL Flooring’s
extensive selection includes vinyl plank, solid and engineered
hardwood, laminate, bamboo, porcelain tile, and cork, with a wide
range of flooring enhancements and accessories to complement. Our
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.
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, 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 https://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
Other Expense; (viii) Adjusted Other Expense as a percentage of net
sales; (ix) Adjusted Earnings (Loss); and (x) Adjusted Earnings
(Loss) 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 store closures, regulatory and legal
settlements and associated legal and operating costs, and changes
in antidumping and countervailing duties, as such items are outside
of the Company’s control due to their inherent unusual,
non-operating, unpredictable, non-recurring, or non-cash
nature.
(Tables Follow)
LL Flooring
Consolidated Balance
Sheets
(Unaudited, in
thousands)
September 30,
December 31,
2021
2020
Assets
Current Assets:
Cash and Cash Equivalents
$
104,211
$
169,941
Merchandise Inventories
224,998
244,409
Prepaid Expenses
10,173
9,370
Tariff Recovery Receivable
—
4,078
Other Current Assets
11,396
10,354
Total Current Assets
350,778
438,152
Property and Equipment, net
95,586
97,557
Operating Lease Right-of-Use
123,526
109,475
Goodwill
9,693
9,693
Deferred Tax Asset
11,583
11,611
Other Assets
8,669
7,860
Total Assets
$
599,835
$
674,348
Liabilities and Stockholders’
Equity
Current Liabilities:
Accounts Payable
$
53,093
$
70,543
Customer Deposits and Store Credits
70,221
61,389
Accrued Compensation
9,203
15,347
Sales and Income Tax Liabilities
4,707
5,793
Accrual for Legal Matters and
Settlements
34,903
30,398
Operating Lease Liabilities - Current
32,660
33,024
Other Current Liabilities
25,467
25,761
Total Current Liabilities
230,254
242,255
Other Long-Term Liabilities
6,714
13,293
Operating Lease Liabilities -
Long-Term
101,964
90,194
Credit Agreement
—
101,000
Total Liabilities
338,932
446,742
Stockholders’ Equity:
Common Stock ($0.001 par value; 35,000
shares authorized; 30,496 and 30,229 shares issued and 29,089 and
28,911 shares outstanding, respectively)
30
30
Treasury Stock, at cost (1,407 and 1,318
shares, respectively)
(145,078
)
(142,977
)
Additional Capital
226,636
222,628
Retained Earnings
179,315
147,925
Total Stockholders’ Equity
260,903
227,606
Total Liabilities and Stockholders’
Equity
$
599,835
$
674,348
LL Flooring
Consolidated Statements of
Operations
(Unaudited, in thousands,
except per share amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Net Sales
Net Merchandise Sales
$
240,802
$
261,009
$
750,388
$
709,845
Net Services Sales
41,427
34,824
116,675
83,646
Total Net Sales
282,229
295,833
867,063
793,491
Cost of Sales
Cost of Merchandise Sold
144,307
152,530
442,914
419,230
Cost of Services Sold
32,721
26,777
90,626
64,472
Total Cost of Sales
177,028
179,307
533,540
483,702
Gross Profit
105,201
116,526
333,523
309,789
Selling, General and Administrative
Expenses
93,165
93,374
291,767
271,869
Operating Income
12,036
23,152
41,756
37,920
Other Expense (Income)
18
685
(252
)
2,709
Income Before Income Taxes
12,018
22,467
42,008
35,211
Income Tax Expense
3,239
6,964
10,618
4,834
Net Income
$
8,779
$
15,503
$
31,390
$
30,377
Net Income per Common
Share—Basic
$
0.30
$
0.54
$
1.08
$
1.05
Net Income per Common
Share—Diluted
$
0.30
$
0.53
$
1.06
$
1.04
Weighted Average Common Shares
Outstanding:
Basic
29,082
28,859
28,984
28,801
Diluted
29,455
29,334
29,494
29,075
LL Flooring
Consolidated Statements of
Cash Flows
(Unaudited, in
thousands)
Nine Months Ended September
30,
2021
2020
Cash Flows from Operating
Activities:
Net Income
$
31,390
$
30,377
Adjustments to Reconcile Net Income:
Depreciation and Amortization
13,985
13,327
Deferred Income Taxes Provision
28
547
Income on Vouchers Redeemed for Legal
Settlements
(1,183
)
—
Stock-Based Compensation Expense
3,945
2,112
Provision for Inventory Obsolescence
Reserves
1,784
2,564
Impairment of Operating Lease
Right-of-Use
—
935
Loss (Gain) on Disposal of Fixed
Assets
31
(401
)
Changes in Operating Assets and
Liabilities:
Merchandise Inventories
15,683
46,057
Accounts Payable
(17,277
)
31,308
Customer Deposits and Store Credits
8,832
22,165
Accrued Compensation
(6,144
)
2,530
Tariff Recovery Receivable
4,078
19,509
Prepaid Expenses and Other Current
Assets
(792
)
821
Accrual for Legal Matters and
Settlements
7,733
2,183
Payments for Legal Matters and
Settlements
(101
)
(4,903
)
Deferred Rent Payments
(2,154
)
4,709
Other Assets and Liabilities
(9,558
)
6,922
Net Cash Provided by Operating
Activities
50,280
180,762
Cash Flows from Investing
Activities:
Purchases of Property and Equipment
(12,276
)
(9,822
)
Other Investing Activities
58
949
Net Cash Used in Investing
Activities
(12,218
)
(8,873
)
Cash Flows from Financing
Activities:
Borrowings on Credit Agreement
—
45,000
Payments on Credit Agreement
(101,000
)
(26,000
)
Common Stock Repurchased
(2,101
)
(513
)
Other Financing Activities
(691
)
7
Net Cash Provided by Financing
Activities
(103,792
)
18,494
Effect of Exchange Rates on Cash and
Cash Equivalents
—
(29
)
Net Increase in Cash and Cash
Equivalents
(65,730
)
190,354
Cash and Cash Equivalents, Beginning of
Period
169,941
8,993
Cash and Cash Equivalents, End of
Period
$
104,211
$
199,347
Supplemental disclosure of non-cash
operating activities:
Relief of Inventory for Vouchers Redeemed
for Legal Settlements
$
1,944
$
—
Supplemental disclosure of non-cash
operating and financing activities:
Tenant Improvement Allowance for
Leases
$
(1,053
)
$
(676
)
LL Flooring
GAAP to Non-GAAP
Reconciliation
(Unaudited, in thousands,
except percentages)
Due to the significant fluctuations that
occurred during 2020 as a result of the COVID-19 pandemic, to
better illustrate comparable two-year growth from our ongoing
business for the current year we are also providing comparisons to
2019.
Items impacting gross margin with
comparisons to the prior-year periods include:
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2019
2021
2020
2019
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
(dollars in thousands)
2
(dollars in thousands)
2
Gross Profit, as reported (GAAP)
$
105,201
37.3
%
$
116,526
39.4
%
$
95,674
36.2
%
$
333,523
38.5
%
$
309,789
39.0
%
$
291,772
35.6
%
HTS Classification Adjustments 3
—
—
%
—
—
%
—
—
%
—
—
%
—
—
%
(779
)
(0.1
)%
Antidumping Adjustments 4
—
—
%
—
—
%
780
0.3
%
(6,566
)
(0.8
)%
—
—
%
780
0.1
%
Store Closure Costs 5
—
—
%
761
0.3
%
—
—
%
—
—
%
761
0.1
%
—
—
%
Sub-Total Items above
—
—
%
761
0.3
%
780
0.3
%
(6,566
)
(0.8
)%
761
0.1
%
1
—
%
Adjusted Gross Profit (non-GAAP
measures)
$
105,201
37.3
%
$
117,287
39.7
%
$
96,454
36.5
%
$
326,957
37.7
%
$
310,550
39.1
%
$
291,773
35.6
%
_________________
2
Amounts may not sum due to rounding.
3
Represents classification adjustments
related to the HTS duty categorization in prior periods during the
nine months ended September 30, 2019.
4
Represents antidumping income associated
with applicable prior-year shipments of engineered hardwood from
China.
5
Represents the inventory write-offs
related to the Canadian and U.S. 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 periods
include:
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2019
2021
2020
2019
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
(dollars in thousands)
6
(dollars in thousands)
6
SG&A, as reported (GAAP)
$
93,165
33.0
%
$
93,374
31.6
%
$
93,495
35.4
%
$
291,767
33.7
%
$
271,869
34.3
%
$
294,392
36.0
%
(Recovery) Accrual for Legal Matters and
Settlements 7
(400
)
(0.1
)%
2,000
0.7
%
—
—
%
7,275
0.8
%
1,500
0.2
%
4,575
0.6
%
Legal and Professional Fees 8
43
0.0
%
999
0.3
%
408
0.2
%
470
0.1
%
2,787
0.4
%
3,403
0.4
%
Store Closure Costs 9
—
—
%
1,803
0.6
%
—
—
%
—
—
%
1,803
0.2
%
—
—
%
Sub-Total Items above
(357
)
(0.1
)%
4,802
1.6
%
408
0.2
%
7,745
0.9
%
6,090
0.8
%
7,978
1.0
%
Adjusted SG&A (a non-GAAP measure)
$
93,522
33.1
%
$
88,572
29.9
%
$
93,087
35.2
%
$
284,022
32.8
%
$
265,779
33.5
%
$
286,414
35.0
%
_________________
6
Amounts may not sum due to rounding.
7
This amount represents the charge to
earnings for the Mason and Savidis matters in the first quarter of
2021 and a $0.4 million insurance recovery in the third quarter of
2021 of legal fees related to certain significant legal action. The
2020 amounts reflect expense of $2 million related to the Gold
matter in the third quarter of 2020 and $0.5 million insurance
recovery in the second quarter of 2020 of legal fees related to
certain significant legal action. The 2019 amounts reflect a $4.75
million expense for the Kramer employment matter and certain
Related Laminate matters. These items are described more fully in
Item 1, Note 7 to the condensed consolidated financial statements
filed in the September 30, 2021 10-Q.
8
This amount 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.
9
Represents store lease impairments, write
down on fixed assets and employee termination benefits related to
the Canadian and U.S. store closures described more fully in Note 8
to the condensed consolidated financial statements filed in the
September 30, 2020 10-Q.
LL Flooring
GAAP to Non-GAAP
Reconciliation
(Unaudited, in thousands,
except percentages)
Items impacting operating income and
operating margin with comparisons to the prior-year periods
include:
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2019
2021
2020
2019
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
(dollars in thousands)
2
(dollars in thousands)
2
Operating Income (Loss), as reported
(GAAP)
$
12,036
4.3
%
$
23,152
7.8
%
$
2,179
0.8
%
$
41,756
4.8
%
$
37,920
4.8
%
$
(2,620
)
(0.3
)%
Gross Margin Items:
HTS Classification Adjustments 3
—
—
%
—
—
%
—
—
%
—
—
%
—
—
%
(779
)
(0.1
)%
Antidumping Adjustments 4
—
—
%
—
—
%
780
0.3
%
(6,566
)
(0.8
)%
—
—
%
780
0.1
%
Store Closure Costs 5
—
—
%
761
0.3
%
—
—
%
—
—
%
761
0.1
%
—
—
%
Gross Margin Subtotal
—
—
%
761
0.3
%
780
0.3
%
(6,566
)
(0.8
)%
761
0.1
%
1
—
%
SG&A Items:
(Recovery) Accrual for Legal Matters and
Settlements 7
(400
)
(0.1
)%
2,000
0.7
%
—
—
%
7,275
0.8
%
1,500
0.2
%
4,575
0.6
%
Legal and Professional Fees 8
43
0.0
%
999
0.3
%
408
0.2
%
470
0.1
%
2,787
0.4
%
3,403
0.4
%
Store Closure Costs 9
—
—
%
1,803
0.6
%
—
—
%
—
—
%
1,803
0.2
%
—
—
%
SG&A Subtotal
(357
)
(0.1
)%
4,802
1.6
%
408
0.2
%
7,745
0.9
%
6,090
0.8
%
7,978
1.0
%
Adjusted Operating Income (a non-GAAP
measure)
$
11,679
4.1
%
$
28,715
9.7
%
$
3,367
1.3
%
$
42,935
5.0
%
$
44,771
5.6
%
$
5,359
0.7
%
_________________
2,3,4,5,6,7,8,9
See the Gross Profit and SG&A sections
above for more detailed explanations of these individual items.
Items impacting other expense (income) with comparisons to the
prior year periods include:
Three Months Ended September
30,
Nine Months Ended September
30
2021
2020
2019
2021
2020
2019
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
$
% of Sales
(dollars in thousands)
10
(dollars in thousands)
10
Other Expense (Income), as reported
(GAAP)
$
18
0.0
%
$
685
0.2
%
$
909
0.3
%
$
(252
)
(0.0
)%
$
2,709
0.3
%
$
3,265
0.4
%
Interest impact related to antidumping
adjustment 11
—
—
%
—
—
%
—
—
%
(1,841
)
(0.2
)%
—
—
%
—
—
%
Sub-Total Items above
—
—
%
—
—
%
—
—
%
(1,841
)
(0.2
)%
—
—
%
—
—
%
Adjusted Other Expense/Adjusted Other
Expense as a % of Sales (a non-GAAP measure)
$
18
0.0
%
$
685
0.2
%
$
909
0.3
%
$
1,589
0.2
%
$
2,709
0.3
%
$
3,265
0.4
%
_________________
10
Amounts may not sum due to rounding.
11
Represents antidumping interest income
associated with applicable prior-year shipments of engineered
hardwood from China.
LL Flooring
GAAP to Non-GAAP
Reconciliation
(Unaudited, in thousands,
except per share data)
Items impacting earnings per diluted share
with comparisons to the prior-year periods include:
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2019
2021
2020
2019
(dollars in thousands, except
per share amounts)
(dollars in thousands, except
per share amounts)
Net Income (Loss), as reported (GAAP)
$
8,779
$
15,503
$
1,045
$
31,390
$
30,377
$
(6,735
)
Net Income (Loss) per Diluted Share
(GAAP)
$
0.30
$
0.53
$
0.04
$
1.06
$
1.04
$
(0.23
)
Gross Margin Items:
HTS Classification Adjustments 3
—
—
—
—
—
(575
)
Antidumping Adjustments 4
—
—
576
(4,846
)
—
576
Store Closure Costs 5
—
561
—
—
561
—
Gross Margin Subtotal
—
561
576
(4,846
)
561
1
SG&A Items:
(Recovery) Accrual for Legal Matters and
Settlements 7
(295
)
1,476
—
5,369
1,107
3,376
Legal and Professional Fees 8
32
737
301
347
2,057
2,511
Store Closure Costs 9
—
1,331
—
—
1,331
—
SG&A Subtotal
(263
)
3,544
301
5,716
4,495
5,888
Other Expense Items:
Antidumping Adjustments Interest 11
—
—
—
(1,359
)
—
—
Other (Income) Expense Subtotal
—
—
—
(1,359
)
—
—
Adjusted Earnings (Loss)
$
8,516
$
19,608
$
1,922
$
30,901
$
35,433
$
(846
)
Adjusted Earnings (Loss) per Diluted Share
(a non-GAAP measure)
$
0.29
$
0.67
$
0.07
$
1.05
$
1.21
$
(0.03
)
_________________
3,4,5,7,8,9,11
See the Gross Profit, SG&A and Other
Expense (Income) sections above for more detailed explanations of
these individual items. These items have been tax affected at the
Company’s federal incremental rate, which was 26.2% for the 2021
periods and 26.1% for the 2020 and 2019 periods.
The following chart provides a timeline and tariff levels for the
key events related to Section 301 tariffs (unaudited):
Section 301 tariff
Corresponding
approximate
Event
Timing
level on imports
Tariff level on
percentage of
Company's
from China
Subset Products
merchandise subject to
tariff
Imposition of Tariffs
September 2018
10%
10% then 0%12
48%
Increase in Tariffs
June 2019
25%
25% then 0%12
44%
Retroactive Exemption on Subset
Products10
November 2019
25%
0%
10%
Exemption Not Renewed and Tariffs
Re-imposed on Subset Products
August 2020
25%
25%
32%
September 30, 2021
25%
25%
22%
_________________
12
On November 7, 2019, the U.S. Trade
Representative granted a retroactive exclusion to September 2018 on
Subset Products as defined in the Section 301 Tariffs section above
bringing the rate to 0%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211103005131/en/
LL Flooring Investor Relations Julie MacMedan Head of Investor
Relations ir@lumberliquidators.com Tel: 804-420-9801
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