Press release from Business Wire
Lumber Liquidators Announces First Quarter 2013 Financial Results and Raises Full Year Outlook
<p class='bwalignc'> <i><b>~ Net Sales Increased 22.5% to $230.4 Million ~</b></i> </p> <p class='bwalignc'> <i><b>~ Comparable Store Net Sales Increased 15.2% ~</b></i> </p> <p class='bwalignc'> <i><b>~ Net Income Increased 92.5% to $15.8 Million, or $0.57 per Diluted Share ~</b></i> </p>
Wednesday, April 24, 2013
Lumber Liquidators Announces First Quarter 2013 Financial Results and Raises Full Year Outlook07:00 EDT Wednesday, April 24, 2013
TOANO, Va. (Business Wire) -- Lumber Liquidators (NYSE: LL), the largest specialty retailer of hardwood flooring in North America, today announced financial results for the first quarter ended March 31, 2013, and updated its outlook for 2013.
First Quarter Results
Net sales increased $42.4 million, or 22.5%, to $230.4 million in the first quarter of 2013 from $188.0 million in the first quarter of 2012. Comparable store net sales increased 15.2% for the quarter, driven by equivalent percent increases in the number of customers invoiced and the average sale. Non-comparable store net sales increased $13.9 million. The Company opened five new stores during the first quarter of 2013.
Gross margin was 40.4% in the first quarter of 2013 compared to 37.3% in the first quarter of 2012. The increase in gross margin reflects generally lower net product costs, which include shifts in sales mix and benefits from sourcing initiatives, and a net increase in the average retail price per unit sold.
Selling, general and administrative expenses decreased as a percentage of net sales to 29.3% for the first quarter of 2013 compared to 30.2% for the first quarter of 2012. Operating margin increased 390 basis points to 11.0% in the first quarter of 2013, from 7.1% in the first quarter of 2012.
Net income increased 92.5% to $15.8 million, or $0.57 per diluted share, in the first quarter of 2013 from $8.2 million, or $0.29 per diluted share, in the first quarter of the prior year.
Cash and cash equivalents at March 31, 2013 totaled $72.7 million compared with $61.4 million at March 31, 2012 and $64.2 million at December 31, 2012.
Robert M. Lynch, President and Chief Executive Officer, commented, “Our powerful store model and value proposition continued to drive record results in the first quarter as we entered the important spring home improvement season. As we continued the implementation of our multi-year strategic initiatives, we saw consistent strength during the quarter in our top-line and an expansion of both our gross and operating margins to deliver a solid bottom line. Also during the quarter, we opened our first locations in our “store of the future” format which feature an expanded showroom. Though the results are early, across the five new store openings, four relocations of existing stores and two major remodels completed during the first quarter with the new format, we are pleased with the performance to date.”
Based on the first quarter results and current trends, the Company now expects to achieve the following for the full year:
- Net sales in the range of $913 million to $942 million, up from the previous range of $885 million to $920 million.
- Comparable store net sales increasing in the mid to high-single digits, up from the previous range of mid-single digits.
- The opening of a total of 25 to 35 new store locations.
- Earnings per diluted share in the range of $2.10 to $2.35, based on a diluted share count of approximately 28.0 million shares, which is exclusive of any future impact of the stock repurchase program, up from the previous range of $1.90 to $2.15.
Mr. Lynch concluded, “Our team remains focused on implementing the key strategic initiatives that will drive our business for years to come. We continue to aggressively pursue share in our highly fragmented market, and while successful in this first quarter, we are even more excited by the opportunities ahead. As we move forward, we believe we are well-positioned to further expand our footprint and deliver multi-year expansion of our net sales and operating margin.”
Conference Call and Webcast Information
The Company plans to host a conference call and audio webcast today, April 24, 2013, at 10:00 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 through May 1, 2013 and may be accessed by dialing (877) 870-5176 or (858) 384-5517 and entering conference ID number 411542. The live conference call and replay may also be accessed via audio webcast at the Investor Relations section of the Company's website, www.lumberliquidators.com.
About Lumber Liquidators
With over 290 locations, Lumber Liquidators is North America's largest specialty retailer of hardwood flooring. The Company features more than 340 first quality flooring varieties, including solid and engineered hardwood, bamboo, cork, laminate and resilient vinyl. Additionally, Lumber Liquidators provides a wide selection of flooring enhancements and accessories to complement, install and maintain your new floor. Every location is staffed with flooring experts who can provide advice and useful information about Lumber Liquidators' low priced product, much of which is in-stock and ready for delivery.
With quality brands including Bellawood Prefinished Hardwood and Morning Star Bamboo, Lumber Liquidators' flooring is often featured on popular television shows such as HGTV's Dream Home.
For more information, please visit www.lumberliquidators.com or call 1.800.HARDWOOD. You can also follow the Company on Facebook and Twitter.
This press release and accompanying financial tables may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act. These statements are based on currently available information as of the date of such statements and are subject to risks and uncertainties that may cause actual results to differ. The Company specifically disclaims any obligation to update these statements which speak only as of their respective dates, except as may be required under the federal securities laws. Information regarding these additional risks and uncertainties is contained in the Company's filings with the Securities and Exchange Commission.
|Lumber Liquidators Holdings, Inc.|
|Condensed Consolidated Balance Sheets|
|(in thousands, except share data)|
|March 31,||December 31,|
|Cash and Cash Equivalents||$||72,728||$||64,167|
|Other Current Assets||8,639||12,106|
|Total Current Assets||298,239||288,145|
|Property and Equipment, net||47,490||47,764|
|Liabilities and Stockholders' Equity|
|Customer Deposits and Store Credits||28,613||25,747|
|Sales and Income Tax Liabilities||8,655||4,314|
|Other Current Liabilities||11,201||7,887|
|Total Current Liabilities||93,896||101,027|
|Deferred Tax Liability||8,178||8,166|
|Common Stock ($0.001 par value; 35,000,000 authorized; 27,315,147 and 27,214,144 outstanding, respectively)||29||29|
|Treasury Stock, at cost (1,797,044 and 1,719,706 shares, respectively)||(54,828)||(50,552)|
|Accumulated Other Comprehensive (Loss) Income||(248)||73|
|Total Stockholders' Equity||251,411||234,541|
|Total Liabilities and Stockholders' Equity||$||357,204||$||347,387|
|Lumber Liquidators Holdings, Inc.|
|Condensed Consolidated Statements of Income|
|(in thousands, except share data and per share amounts)|
|Three Months Ended|
|Cost of Sales||137,422||117,897|
|Selling, General and Administrative Expenses||67,589||56,819|
|Other (Income) Expense||(210)||(42)|
|Income Before Income Taxes||25,618||13,360|
|Provision for Income Taxes||9,837||5,163|
|Net Income per Common Share—Basic||$||0.58||$||0.29|
|Net Income per Common Share—Diluted||$||0.57||$||0.29|
|Weighted Average Common Shares Outstanding:|
|Lumber Liquidators Holdings, Inc.|
|Condensed Consolidated Statements of Cash Flows|
|Three Months Ended|
|Cash Flows from Operating Activities:|
|Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:|
|Depreciation and Amortization||2,716||2,366|
|Stock-Based Compensation Expense||1,107||1,133|
|Changes in Operating Assets and Liabilities:|
|Customer Deposits and Store Credits||2,874||8,087|
|Prepaid Expenses and Other Current Assets||1,952||(3,063)|
|Other Assets and Liabilities||6,122||8,059|
|Net Cash Provided by Operating Activities||11,064||10,337|
|Cash Flows from Investing Activities:|
|Purchases of Property and Equipment||(2,589)||(3,180)|
|Net Cash Used in Investing Activities||(2,589)||(3,180)|
|Cash Flows from Financing Activities:|
|Payments for Stock Repurchases||(4,276)||(9,077)|
|Proceeds from the Exercise of Stock Options||1,278||1,234|
|Excess Tax Benefit from Stock-Based Compensation||3,367||337|
|Net Cash Provided by (Used in) Financing Activities||369||(7,506)|
Effect of Exchange Rates on Cash and Cash Equivalents
|Net Increase (Decrease) in Cash and Cash Equivalents||8,561||(239)|
|Cash and Cash Equivalents, Beginning of Period||64,167||61,675|
|Cash and Cash Equivalents, End of Period||$||72,728||$||61,436|
Lumber Liquidators Investor Relations
Ashleigh McDermott, 757-566-7512