TOANO, Va., Aug. 7, 2019 /PRNewswire/ -- Lumber Liquidators
(NYSE: LL), a leading specialty retailer of hard-surface flooring
in North America, today announced
financial results for the second quarter and six months ended
June 30, 2019.
Second Quarter Results
Net sales for the second quarter of 2019 increased $5.1 million, or 1.8%, to $289 million as compared to the second quarter of
2018 driven by new stores (stores open less than 13 months).
Net sales in comparable stores were flat as compared to the second
quarter of 2018, as growth of installation services was offset by a
slight decline in merchandise sales. The Company opened three new
stores and closed one in the second quarter of 2019.
Gross profit increased 1.2% in the second quarter of 2019 to
$102 million as compared to
$101 million in the comparable period
in 2018. Gross margin decreased to 35.5% in the second quarter of
2019 from 35.7% in the second quarter of 2018. Gross margin
in the second quarter of 2019 was favorably impacted by tariff
classification adjustments while antidumping rate changes favorably
impacted the second quarter of 2018. Excluding these items as shown
on the table that follows, Adjusted Gross Profit (a non-GAAP
measure) increased by $2.5 million
and Adjusted Gross Margin (a non-GAAP measure) increased by 20
basis points. The margin increase was driven by a larger mix
of higher margin manufactured products, reduced discounting in the
stores, the absence of a significant inventory obsolescence charge
incurred in the year-ago period, and a late second quarter increase
to prices in reaction to tariffs. The small improvement in Adjusted
Gross Margin was achieved despite higher tariff-related costs and
with an increased mix of lower margin installation sales.
Selling, general and administrative ("SG&A") expenses
increased 1.6% in the second quarter of 2019 to $104 million from $102
million in the comparable period in 2018 but included
certain costs in both years related to investigations and lawsuits,
including an accrual related to settlement of the Kramer employment
matter of $4.75 million that was
recorded in the second quarter of 2019. Excluding these items
as shown in the table that follows, Adjusted SG&A (a non-GAAP
measure) increased $1.9 million
primarily as a result of increases in payroll for new store
openings and advertising.
Operating loss was $1.4 million
and $0.9 million for the three months
ended June 30, 2019 and 2018,
respectively. Excluding the Gross Profit and SG&A items
discussed above and summarized in the table that follows, Adjusted
Operating Income (a non-GAAP measure) was $3.6 million for the second quarter of 2019, up
from an Adjusted Operating Income (a non-GAAP measure) of
$3 million for the second quarter of
2018. The most significant driver of the increase was the
improvement in the Company's Adjusted Gross Margin.
Net loss for the three months ended June
30, 2019 was $2.9 million, or
$0.10 per diluted share, compared to
a net loss of $1.5 million, or
$0.05 per diluted share, for the
three months ended June 30,
2018. Adjusted Net Income and Adjusted EPS (non-GAAP
measures) for the three months ended June
30, 2019 were $2.1 million and
$0.07 per diluted share, compared to
$2.4 million and $0.09 per diluted share, for the three months
ended June 30, 2018.
As of June 30, 2019, the Company
had $64.5 million outstanding under
its revolver and $25 million
outstanding under its FILO Term Loan, which collectively, is up
from year-end. Considering these borrowings, at June 30, 2019, the Company had $117 million in liquidity, comprised of
$13 million of cash and cash
equivalents and availability under the Credit Agreement of
$104 million.
"Our transformation plan remains on track, and we made solid
progress in the second quarter with investments to bolster our
digital presence, optimize our marketing initiatives, including the
introduction of our new marketing campaign that highlights our
value proposition and differentiated customer experience, and
continued progress building Pro and Installed sales," said Chief
Executive Officer Dennis
Knowles. "Results in the quarter were generally in
line with our expectations and reflect our efforts to mitigate the
impact of increased tariffs on our near-term financial performance
while also positioning the company for long-term success. With the
increase in tariffs, we continue to manage costs through diligent
vendor negotiations, opportunistic alternative country sourcing,
and ongoing supply chain optimization. We also selectively
implemented retail price increases late in the quarter to further
mitigate the impact of rising tariffs while, at the same time,
ensuring we deliver a strong value proposition and remain
competitive in this dynamic environment."
"Despite delivering solid quarterly results and sequential
improvement from the first quarter, as the second quarter
progressed, customer traffic softened and that softness continued
into July," Knowles continued. "This, in combination with the
uncertain tariff environment, has tempered our near-term financial
outlook. As always, we are monitoring broader industry demand, the
competitive environment, and the hard-surface flooring consumer as
moderating macroeconomic indicators and broad uncertainty created
by tariffs across an array of products permeate the market. As we
look to the balance of the year and beyond, we are actively
executing a deep dive into our overall cost structure to identify
near-term efficiency opportunities, but we remain focused on
executing our stated transformation plan that we believe includes a
number of strategic levers to strengthen our business and create
long-term shareholder value."
2019 Outlook
The Company's current 2019 full-year outlook assumes the
continuation of the current 25% tariff applicable to products
imported from China for the
balance of 2019 and is as follows:
|
Current
Outlook
|
|
Previous
Outlook
|
Total revenue
growth percentage
|
Low single
digits
|
|
Mid-single
digits
|
Comparable store
sales
|
Approximately
flat
|
|
Flat to low-single
digit growth
|
Adjusted operating
margin
(a non-GAAP measure)
|
1.4% to
1.9%
|
|
1.9% to
2.4%
|
New store
openings
|
10 to 15
|
|
10 to 15
|
Capital
spending
|
$15 to $18
million
|
|
$15 to $18
million
|
Conference Call and Webcast Information
The Company plans to host a conference call and audio webcast on
August 7, 2019, 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
August 14, 2019 and may be accessed
by dialing (844) 512-2921 or (412) 317-6671 and entering pin number
13691483. The live conference call and replay can also be accessed
via audio webcast at the Investor Relations section of the
Company's website, www.LumberLiquidators.com.
About Lumber Liquidators
With 415 locations, Lumber Liquidators is one of
North America's leading
specialty retailers of hard-surface flooring. 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;
- 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;
- access to and costs of capital;
- disruption due to cybersecurity threats;
- 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 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.
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 Operating (Loss) Income; (v) Adjusted Operating Margin;
(vi) Adjusted Net Income; and (vii) Adjusted EPS. 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 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: 757.566.7512
Lumber Liquidators
Holdings, Inc.
Condensed
Consolidated Balance Sheets
(Unaudited, in
thousands)
|
|
|
|
June
30,
|
|
December 31,
|
|
|
2019
|
|
2018
|
Assets
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and
Cash Equivalents
|
|
$
|
12,727
|
|
$
|
11,565
|
Merchandise Inventories
|
|
|
303,700
|
|
|
318,272
|
Prepaid
Expenses
|
|
|
9,142
|
|
|
6,299
|
Deposit
for Legal Settlement
|
|
|
21,500
|
|
|
21,500
|
Other
Current Assets
|
|
|
9,307
|
|
|
8,667
|
Total
Current Assets
|
|
|
356,376
|
|
|
366,303
|
Property and
Equipment, net
|
|
|
93,074
|
|
|
93,689
|
Operating Lease
Right-of-Use
|
|
|
113,375
|
|
|
—
|
Goodwill
|
|
|
9,693
|
|
|
9,693
|
Other
Assets
|
|
|
5,792
|
|
|
5,832
|
Total
Assets
|
|
$
|
578,310
|
|
$
|
475,517
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts
Payable
|
|
$
|
67,826
|
|
$
|
73,412
|
Customer
Deposits and Store Credits
|
|
|
42,888
|
|
|
40,332
|
Accrued
Compensation
|
|
|
9,050
|
|
|
9,265
|
Sales
and Income Tax Liabilities
|
|
|
4,838
|
|
|
4,200
|
Accrual
for Legal Matters and Settlements Current
|
|
|
68,475
|
|
|
97,625
|
Operating Lease Liabilities - Current
|
|
|
30,711
|
|
|
—
|
Other
Current Liabilities
|
|
|
19,355
|
|
|
17,290
|
Total
Current Liabilities
|
|
|
243,143
|
|
|
242,124
|
Other Long-Term
Liabilities
|
|
|
13,144
|
|
|
20,203
|
Operating Lease
Liabilities - Long-Term
|
|
|
90,262
|
|
|
—
|
Deferred Tax
Liability
|
|
|
863
|
|
|
792
|
Credit
Agreement
|
|
|
89,500
|
|
|
65,000
|
Total
Liabilities
|
|
|
436,912
|
|
|
328,119
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
Common
Stock ($0.001 par value; 35,000 shares authorized; 29,941 and
31,578
shares issued and 28,701 and 28,627 shares
outstanding, respectively)
|
|
|
30
|
|
|
32
|
Treasury
Stock, at cost (1,239 and 2,951 shares, respectively)
|
|
|
(142,269)
|
|
|
(141,828)
|
Additional Capital
|
|
|
216,159
|
|
|
213,744
|
Retained
Earnings
|
|
|
69,055
|
|
|
76,835
|
Accumulated Other Comprehensive Loss
|
|
|
(1,577)
|
|
|
(1,385)
|
Total
Stockholders' Equity
|
|
|
141,398
|
|
|
147,398
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
578,310
|
|
$
|
475,517
|
Lumber Liquidators
Holdings, Inc.
Condensed
Consolidated Statements of Operations
(Unaudited, in
thousands, except per share amounts)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Merchandise Sales
|
|
$
|
250,658
|
|
$
|
248,967
|
|
$
|
488,557
|
|
$
|
485,482
|
Net
Services Sales
|
|
|
37,909
|
|
|
34,507
|
|
|
66,230
|
|
|
59,764
|
Total Net
Sales
|
|
|
288,567
|
|
|
283,474
|
|
|
554,787
|
|
|
545,246
|
Cost of
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Merchandise Sold
|
|
|
157,801
|
|
|
156,636
|
|
|
309,226
|
|
|
305,019
|
Cost of
Services Sold
|
|
|
28,279
|
|
|
25,528
|
|
|
49,463
|
|
|
43,945
|
Total Cost of
Sales
|
|
|
186,080
|
|
|
182,164
|
|
|
358,689
|
|
|
348,964
|
Gross
Profit
|
|
|
102,487
|
|
|
101,310
|
|
|
196,098
|
|
|
196,282
|
Selling, General and
Administrative Expenses
|
|
|
103,864
|
|
|
102,223
|
|
|
200,896
|
|
|
198,641
|
Operating Loss
|
|
|
(1,377)
|
|
|
(913)
|
|
|
(4,798)
|
|
|
(2,359)
|
Other
Expense
|
|
|
1,068
|
|
|
346
|
|
|
2,358
|
|
|
667
|
Loss
Before Income Taxes
|
|
|
(2,445)
|
|
|
(1,259)
|
|
|
(7,156)
|
|
|
(3,026)
|
Income Tax
Expense
|
|
|
411
|
|
|
195
|
|
|
624
|
|
|
400
|
Net
Loss
|
|
$
|
(2,856)
|
|
$
|
(1,454)
|
|
$
|
(7,780)
|
|
$
|
(3,426)
|
Net Loss per
Common Share—Basic
|
|
$
|
(0.10)
|
|
$
|
(0.05)
|
|
$
|
(0.27)
|
|
$
|
(0.12)
|
Net Loss per
Common Share—Diluted
|
|
$
|
(0.10)
|
|
$
|
(0.05)
|
|
$
|
(0.27)
|
|
$
|
(0.12)
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
28,692
|
|
|
28,546
|
|
|
28,669
|
|
|
28,527
|
Diluted
|
|
|
28,692
|
|
|
28,546
|
|
|
28,669
|
|
|
28,527
|
Lumber Liquidators
Holdings, Inc.
Condensed
Consolidated Statements of Cash Flows
(Unaudited, in
thousands)
|
|
|
|
Six Months Ended
June 30,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net
Loss
|
|
$
|
(7,780)
|
|
$
|
(3,426)
|
Adjustments to Reconcile Net Loss:
|
|
|
|
|
|
|
Depreciation and Amortization
|
|
|
8,599
|
|
|
9,567
|
Stock-Based Compensation Expense
|
|
|
2,415
|
|
|
2,123
|
Loss on
Disposal of Fixed Assets
|
|
|
50
|
|
|
23
|
Changes
in Operating Assets and Liabilities:
|
|
|
|
|
|
|
Merchandise
Inventories
|
|
|
13,509
|
|
|
(38,648)
|
Accounts Payable
|
|
|
(4,729)
|
|
|
5,034
|
Customer Deposits and Store
Credits
|
|
|
2,652
|
|
|
6,925
|
Prepaid Expenses and Other Current
Assets
|
|
|
(3,557)
|
|
|
307
|
Accrual for Legal Matters and
Settlements
|
|
|
4,575
|
|
|
2,951
|
Payments for Legal Matters and
Settlements
|
|
|
(33,725)
|
|
|
(1,691)
|
Other Assets and
Liabilities
|
|
|
3,899
|
|
|
(4,695)
|
Net Cash Used in Operating Activities
|
|
|
(14,092)
|
|
|
(21,530)
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Purchases of Property and Equipment
|
|
|
(8,907)
|
|
|
(6,584)
|
Other
Investing Activities
|
|
|
64
|
|
|
28
|
Net Cash Used in Investing Activities
|
|
|
(8,843)
|
|
|
(6,556)
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Borrowings on Credit Agreement
|
|
|
63,000
|
|
|
29,000
|
Payments
on Credit Agreement
|
|
|
(38,500)
|
|
|
(9,000)
|
Other
Financing Activities
|
|
|
(1,074)
|
|
|
(1,199)
|
Net Cash Provided by Financing Activities
|
|
|
23,426
|
|
|
18,801
|
Effect of Exchange
Rates on Cash and Cash Equivalents
|
|
|
671
|
|
|
469
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
|
|
1,162
|
|
|
(8,816)
|
Cash and Cash
Equivalents, Beginning of Period
|
|
|
11,565
|
|
|
19,938
|
Cash and Cash
Equivalents, End of Period
|
|
$
|
12,727
|
|
$
|
11,122
|
Lumber Liquidators
Holdings, Inc.
GAAP to Non-GAAP
Reconciliation
(in thousands,
except percentages)
|
|
Items impacting gross
margin with comparisons to the prior-year periods
include:
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2019
|
2018
|
|
2019
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
Gross Profit, as
reported (GAAP)
|
|
$
|
102,487
|
|
$
|
101,310
|
|
$
|
196,098
|
|
$
|
196,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Antidumping
Adjustments 1
|
|
|
—
|
|
|
(2,126)
|
|
|
—
|
|
|
(2,126)
|
HTS Classification
Adjustments 2
|
|
|
(779)
|
|
|
—
|
|
|
(779)
|
|
|
—
|
Sub-Total Items
above
|
|
|
(779)
|
|
|
(2,126)
|
|
|
(779)
|
|
|
(2,126)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross Profit
(non-GAAP measures)
|
|
$
|
101,708
|
|
$
|
99,184
|
|
$
|
195,319
|
|
$
|
194,156
|
1
|
Represents
countervailing and antidumping income of $2.1 million associated
with applicable prior-year shipments of engineered
hardwood from China for both the three and six months ended June
30, 2018.
|
2
|
Represents
classification adjustments related to the Harmonized Tariff
Schedule ("HTS") duty categorization in prior periods
during the three and six months ended June 30, 2019.
|
Items impacting
SG&A with comparisons to the prior-year period
includes:
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(dollars in thousands)
|
SG&A, as reported
(GAAP)
|
$
|
103,864
|
|
$
|
102,223
|
|
$
|
200,896
|
|
$
|
198,641
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrual for Legal
Matters and Settlements 3
|
|
4,750
|
|
|
2,701
|
|
|
4,575
|
|
|
2,951
|
Legal and
Professional Fees4
|
|
1,017
|
|
|
3,325
|
|
|
2,995
|
|
|
6,391
|
Sub-Total Items
above
|
|
5,767
|
|
|
6,026
|
|
|
7,570
|
|
|
9,342
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A (a
non-GAAP measure)
|
$
|
98,097
|
|
$
|
96,197
|
|
$
|
193,326
|
|
$
|
189,299
|
|
|
3
|
This amount
represents the charge to earnings for the Kramer employment case
and certain Related Laminate Matters, which is
described more fully in Note 8 to the condensed consolidated
financial statements.
|
4
|
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 includes:
|
|
|
Three Months Ended
June 30,
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
(dollars in thousands)
|
|
|
|
(dollars in thousands)
|
|
|
|
2019
|
%
Sales
|
|
2018
|
%
Sales
|
|
2019
|
%
Sales
|
|
2018
|
%
Sales
|
Operating Loss, as
reported (GAAP)
|
$
|
(1,377)
|
(0.5)
|
%
|
|
$
|
(913)
|
(0.3)
|
%
|
|
$
|
(4,798)
|
(0.9)
|
%
|
|
$
|
(2,359)
|
(0.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Antidumping
Adjustments 1
|
|
—
|
—
|
|
|
|
(2,126)
|
(0.7)
|
|
|
|
—
|
—
|
|
|
|
(2,126)
|
(0.4)
|
|
HTS Classification
Adjustments 2
|
|
(779)
|
(0.3)
|
%
|
|
|
—
|
—
|
%
|
|
|
(779)
|
(0.1)
|
%
|
|
|
—
|
—
|
%
|
Gross
Margin Subtotal
|
|
(779)
|
(0.3)
|
%
|
|
|
(2,126)
|
(0.7)
|
%
|
|
|
(779)
|
(0.1)
|
%
|
|
|
(2,126)
|
(0.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrual for Legal
Matters and Settlements3
|
|
4,750
|
1.6
|
%
|
|
|
2,701
|
1.0
|
%
|
|
|
4,575
|
0.8
|
%
|
|
|
2,951
|
0.5
|
%
|
Legal and
Professional Fees4
|
|
1,017
|
0.4
|
%
|
|
|
3,325
|
1.2
|
%
|
|
|
2,995
|
0.5
|
%
|
|
|
6,391
|
1.2
|
%
|
SG&A
Subtotal
|
|
5,767
|
2.0
|
|
|
|
6,026
|
2.1
|
|
|
|
7,570
|
1.4
|
|
|
|
9,342
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (a non-GAAP
measure)
|
$
|
3,611
|
1.3
|
%
|
|
$
|
2,987
|
1.0
|
%
|
|
$
|
1,993
|
0.4
|
%
|
|
$
|
4,857
|
0.9
|
%
|
|
1,2,3,4 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(dollars in thousands, except per
share amounts)
|
|
(dollars in thousands, except per
share amounts)
|
Net Loss, as reported
(GAAP)
|
$
|
(2,856)
|
|
$
|
(1,454)
|
|
$
|
(7,780)
|
|
$
|
(3,426)
|
Net Loss, per Diluted
Share as reported (GAAP)
|
$
|
(0.10)
|
|
$
|
(0.05)
|
|
$
|
(0.27)
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
Items:
|
|
|
|
|
|
|
|
|
|
|
|
Antidumping
Adjustments 1
|
|
—
|
|
|
(2,126)
|
|
|
—
|
|
|
(2,126)
|
HTS Classification
Adjustments 2
|
|
(779)
|
|
|
—
|
|
|
(779)
|
|
|
—
|
Gross
Margin Subtotal
|
|
(779)
|
|
|
(2,126)
|
|
|
(779)
|
|
|
(2,126)
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
Items:
|
|
|
|
|
|
|
|
|
|
|
|
Accrual for Legal
Matters and Settlements3
|
|
4,750
|
|
|
2,701
|
|
|
4,575
|
|
|
2,951
|
Legal and
Professional Fees4
|
|
1,017
|
|
|
3,325
|
|
|
2,995
|
|
|
6,391
|
SG&A
Subtotal
|
|
5,767
|
|
|
6,026
|
|
|
7,570
|
|
|
9,342
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings
|
$
|
2,132
|
|
$
|
2,446
|
|
$
|
(989)
|
|
$
|
3,790
|
Adjusted Earnings per
Diluted Share (a non-GAAP measure)
|
$
|
0.07
|
|
$
|
0.09
|
|
$
|
(0.03)
|
|
$
|
0.13
|
|
1,2,3,4 See the Gross Profit and
SG&A sections above for more detailed explanations of these
individual items.
|
View original
content:http://www.prnewswire.com/news-releases/lumber-liquidators-announces-second-quarter-2019-financial-results-300897679.html
SOURCE Lumber Liquidators