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Share Name | Share Symbol | Market | Type |
---|---|---|---|
LL Flooring Holdings Inc | NYSE:LL | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.06 | 3.70% | 1.68 | 10,200 | 13:51:52 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
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(Address of Principal Executive Offices) |
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Registrant’s Telephone Number, Including Area Code: |
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 8, 2023, LL Flooring Holdings, Inc. issued a press release announcing certain financial and operating results for the quarter ended September 30, 2023. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference into this Item 2.02.
The information in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended ("Exchange Act"), or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) |
Exhibits. |
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Exhibit No. |
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Description |
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99.1 |
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104 |
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Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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LL FLOORING HOLDINGS, INC. |
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Date: |
November 8, 2023 |
By: |
/s/ Robert L. Madore |
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Robert L. Madore, Chief Financial Officer |
Exhibit 99.1
For Immediate Release
LL FLOORING REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS
RICHMOND, Va., November 8, 2023 – LL Flooring Holdings, Inc. ("LL Flooring" or "Company") (NYSE: LL), a leading specialty retailer of hard-surface flooring in the U.S., today announced financial results for the quarter ended September 30, 2023.
"We continue to navigate uncertainty in the macroeconomic environment due to low consumer confidence, inflation, an elevated interest and mortgage rate environment and lower existing home sales. Despite external headwinds, we remain confident in our ability to deliver the high-touch service of an independent flooring retailer combined with the value, assortment, and convenience of a national brand," said President and Chief Executive Officer Charles Tyson.
"We are disappointed in our third quarter results, which continued to be negatively impacted by the macroeconomic environment, as well as internal challenges that we are focused on as we execute against our strategic initiatives. To that end, we remain committed and continue to execute on our brand transformation strategy and our five strategic initiatives, which include: focusing investments on our top growth priorities; growing our brand awareness; enhancing our product offerings by innovating products; ensuring a consistent customer experience across our omnichannel network; and improving operating efficiencies. We believe each initiative will improve sales productivity and profitability long term."
"I believe that we are seeing promising signs that our strategic initiatives are starting to improve our capabilities, and this gives us confidence that we will return to growth as the economic environment improves and, in the long term, regain share in what we believe will be a growing industry that is driven by long-term tailwinds for hard surface flooring and remodels such as aging housing stock, increased household formation, and rising home values."
Third Quarter Financial Highlights
1
1Please refer to the "Non-GAAP and Other Information" section and the GAAP to non-GAAP reconciliation tables below for more information.
Cash Flow & Liquidity
As of September 30, 2023, the Company had liquidity of $120.2 million, consisting of excess availability under its Credit Agreement of $110.2 million, and cash and cash equivalents of $10.0 million.
During the first nine months of 2023, the Company generated $8.4 million of cash flows from operating activities primarily driven by sell throughs of merchandise inventories and reduced inventory purchases. Merchandise inventories decreased approximately 14.9%, or $49.7 million, from December 31, 2022, returning to a historically optimal level.
2023 Business Outlook
The Company continues to navigate uncertainty in the macroeconomic environment due to consumer confidence, inflation, a volatile interest and mortgage rate environment and lower existing home sales. As a result, the Company is not providing financial guidance at this time.
The Company is, however, providing the following commentary:
2
Learn More about LL Flooring
The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document.
Conference Call and Webcast Information
The Company plans to host a conference call and audio webcast on November 8, 2023, at 8:00 a.m. Eastern Time. The conference may be accessed by dialing (833) 470-1428 or (929) 526-1599 and entering pin number 252818. A replay will be available approximately two hours after the call ends through November 15, 2023 and may be accessed by dialing (929) 458-6194 and entering pin number 310154. 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 LL Flooring
LL Flooring is one of the country’s leading specialty retailers of hard-surface flooring with 443 stores nationwide. 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 waterproof hybrid resilient, waterproof vinyl plank, solid and engineered hardwood, laminate, bamboo, porcelain tile, and cork, with a wide range of flooring enhancements and accessories to complement. In addition, the Company also began offering carpet during 2023, with 61 store locations offering carpet as of the end of the third quarter. LL Flooring 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," "assumes," "believes," "thinks," "estimates," "seeks," "predicts," "could," "projects," "targets," "potential," "will likely result," 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
3
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, 2022, 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 in the body of this press release and in the supplemental tables at the end of the release: (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 (Loss) Income; (vi) Adjusted Operating Margin; (vii) Adjusted Other Expense; (viii) Adjusted Other Expense as a Percentage of Net Sales; (ix) Adjusted (Loss) Earnings; and (x) Adjusted (Loss) 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 we believe the non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends related to our financial condition and results of operations, These measures provide an additional tool for investors to use in evaluating our ongoing operating performance, and management, in certain cases, uses them to determine incentive compensation. The presented non-GAAP financial measures exclude items that management does not believe reflect our core operating performance, which include incremental costs of sales and associated legal costs related to disruptions to supply chain and other trade regulations and changes in antidumping and countervailing duties, as such items are outside of our control or due to their inherent unusual, non-operating, unpredictable, non-routine, or non-cash nature. Reconciliations of these non-GAAP financial measures are provided on the pages that follow (certain numbers may not sum due to rounding).
For further information contact:
LL Flooring Investor Relations
ICR
Bruce Williams
ir@llflooring.com
Tel: 804-420-9801
(Tables Follow)
4
LL Flooring Holdings, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
In Thousands
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September 30, |
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December 31, |
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2023 |
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2022 |
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Assets |
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Current Assets: |
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|
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Cash and Cash Equivalents |
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$ |
9,965 |
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$ |
10,800 |
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Merchandise Inventories, Net |
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282,622 |
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|
|
332,296 |
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Prepaid Expenses |
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|
8,477 |
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|
|
9,054 |
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Other Current Assets |
|
|
18,834 |
|
|
|
17,598 |
|
Total Current Assets |
|
|
319,898 |
|
|
|
369,748 |
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Property and Equipment, Net |
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|
98,979 |
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|
101,758 |
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Operating Lease Right-of-Use Assets |
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144,512 |
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123,172 |
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Deferred Tax Assets, Net |
|
|
— |
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13,697 |
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Other Assets |
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5,426 |
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|
5,578 |
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Total Assets |
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$ |
568,815 |
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$ |
613,953 |
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Liabilities and Stockholders’ Equity |
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Current Liabilities: |
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Accounts Payable |
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$ |
61,205 |
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$ |
47,733 |
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Customer Deposits and Store Credits |
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42,252 |
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43,767 |
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Accrued Compensation |
|
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6,867 |
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|
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9,070 |
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Sales and Income Tax Liabilities |
|
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2,170 |
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|
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3,574 |
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Accrual for Legal Matters and Settlements |
|
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20,589 |
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22,159 |
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Operating Lease Liabilities - Current |
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31,666 |
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34,509 |
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Other Current Liabilities |
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26,488 |
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19,712 |
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Total Current Liabilities |
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191,237 |
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180,524 |
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Other Long-Term Liabilities |
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6,670 |
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6,162 |
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Operating Lease Liabilities - Long-Term |
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120,048 |
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99,186 |
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Credit Agreement |
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77,000 |
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72,000 |
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Total Liabilities |
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394,955 |
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|
|
357,872 |
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Commitments and Contingencies |
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Stockholders’ Equity: |
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Common Stock ($0.001 par value; 35,000 shares authorized; 30,971 and 30,758 shares issued and 28,840 and 28,695 shares outstanding at September 30, 2023, and December 31, 2022, respectively) |
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31 |
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31 |
|
Treasury Stock, at cost (2,131 and 2,063 shares, respectively) |
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|
(153,607 |
) |
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|
(153,331 |
) |
Additional Capital |
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|
235,443 |
|
|
|
231,839 |
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Retained Earnings |
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|
91,993 |
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|
177,542 |
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Total Stockholders’ Equity |
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|
173,860 |
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|
|
256,081 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
568,815 |
|
|
$ |
613,953 |
|
5
LL Flooring Holdings, Inc.
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited)
In Thousands, Except Per Share Data
|
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Three Months Ended September 30, |
|
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Nine Months Ended September 30, |
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||||||||||
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2023 |
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2022 |
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2023 |
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2022 |
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||||
Net Sales |
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||||
Net Merchandise Sales |
|
$ |
183,579 |
|
|
$ |
229,204 |
|
|
$ |
596,267 |
|
|
$ |
731,044 |
|
Net Services Sales |
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|
32,267 |
|
|
|
39,617 |
|
|
|
96,699 |
|
|
|
115,766 |
|
Total Net Sales |
|
|
215,846 |
|
|
|
268,821 |
|
|
|
692,966 |
|
|
|
846,810 |
|
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of Merchandise Sold |
|
|
120,878 |
|
|
|
142,041 |
|
|
|
373,568 |
|
|
|
449,987 |
|
Cost of Services Sold |
|
|
26,460 |
|
|
|
31,198 |
|
|
|
78,359 |
|
|
|
90,412 |
|
Total Cost of Sales |
|
|
147,338 |
|
|
|
173,239 |
|
|
|
451,927 |
|
|
|
540,399 |
|
Gross Profit |
|
|
68,508 |
|
|
|
95,582 |
|
|
|
241,039 |
|
|
|
306,411 |
|
Selling, General and Administrative Expenses |
|
|
98,109 |
|
|
|
99,692 |
|
|
|
304,294 |
|
|
|
300,804 |
|
Operating (Loss) Income |
|
|
(29,601 |
) |
|
|
(4,110 |
) |
|
|
(63,255 |
) |
|
|
5,607 |
|
Other Expense |
|
|
6,391 |
|
|
|
646 |
|
|
|
8,225 |
|
|
|
830 |
|
(Loss) Income Before Income Taxes |
|
|
(35,992 |
) |
|
|
(4,756 |
) |
|
|
(71,480 |
) |
|
|
4,777 |
|
Income Tax (Benefit) Expense |
|
|
(30 |
) |
|
|
(982 |
) |
|
|
14,069 |
|
|
|
1,778 |
|
Net (Loss) Income and Comprehensive (Loss) Income |
|
$ |
(35,962 |
) |
|
$ |
(3,774 |
) |
|
$ |
(85,549 |
) |
|
$ |
2,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net (Loss) Income per Common Share—Basic |
|
$ |
(1.25 |
) |
|
$ |
(0.13 |
) |
|
$ |
(2.97 |
) |
|
$ |
0.10 |
|
Net (Loss) Income per Common Share—Diluted |
|
$ |
(1.25 |
) |
|
$ |
(0.13 |
) |
|
$ |
(2.97 |
) |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
28,839 |
|
|
|
28,668 |
|
|
|
28,769 |
|
|
|
28,859 |
|
Diluted |
|
|
28,839 |
|
|
|
28,668 |
|
|
|
28,769 |
|
|
|
29,010 |
|
6
LL Flooring Holdings, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
In Thousands
|
|
Nine Months Ended September 30, |
|
|||||
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2023 |
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2022 |
|
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Cash Flows from Operating Activities: |
|
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|
|
|
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Net (Loss) Income |
|
$ |
(85,549 |
) |
|
$ |
2,999 |
|
Adjustments to Reconcile Net (Loss) Income: |
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|
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|
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Depreciation and Amortization |
|
|
14,597 |
|
|
|
13,723 |
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Deferred Income Tax Provision |
|
|
13,806 |
|
|
|
51 |
|
Income on Vouchers Redeemed for Legal Settlements |
|
|
(622 |
) |
|
|
(1,051 |
) |
Stock-Based Compensation Expense |
|
|
3,604 |
|
|
|
2,818 |
|
Provision for Inventory Obsolescence Reserves |
|
|
3,005 |
|
|
|
742 |
|
Loss on Disposal of Fixed Assets |
|
|
29 |
|
|
|
— |
|
Changes in Operating Assets and Liabilities: |
|
|
|
|
|
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Merchandise Inventories |
|
|
45,714 |
|
|
|
(113,828 |
) |
Accounts Payable |
|
|
15,589 |
|
|
|
(1,619 |
) |
Customer Deposits and Store Credits |
|
|
(1,515 |
) |
|
|
(18,186 |
) |
Prepaid Expenses and Other Current Assets |
|
|
(463 |
) |
|
|
(4,861 |
) |
Accrued Compensation |
|
|
(2,203 |
) |
|
|
(2,536 |
) |
Accrual for Legal Matters and Settlements |
|
|
244 |
|
|
|
293 |
|
Payments for Legal Matters and Settlements |
|
|
(224 |
) |
|
|
(8,123 |
) |
Other Assets and Liabilities |
|
|
2,406 |
|
|
|
5,814 |
|
Net Cash Provided by (Used in) Operating Activities |
|
|
8,418 |
|
|
|
(123,764 |
) |
Cash Flows from Investing Activities: |
|
|
|
|
|
|
||
Purchases of Property and Equipment |
|
|
(13,977 |
) |
|
|
(16,787 |
) |
Other Investing Activities |
|
|
— |
|
|
|
64 |
|
Net Cash Used in Investing Activities |
|
|
(13,977 |
) |
|
|
(16,723 |
) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
||
Borrowings on Credit Agreement |
|
|
237,000 |
|
|
|
201,000 |
|
Payments on Credit Agreement |
|
|
(232,000 |
) |
|
|
(132,000 |
) |
Common Stock Repurchased |
|
|
— |
|
|
|
(7,947 |
) |
Other Financing Activities |
|
|
(276 |
) |
|
|
296 |
|
Net Cash Provided by Financing Activities |
|
|
4,724 |
|
|
|
61,349 |
|
Net Decrease in Cash and Cash Equivalents |
|
|
(835 |
) |
|
|
(79,138 |
) |
Cash and Cash Equivalents, Beginning of Period |
|
|
10,800 |
|
|
|
85,189 |
|
Cash and Cash Equivalents, End of Period |
|
$ |
9,965 |
|
|
$ |
6,051 |
|
|
|
|
|
|
|
|
||
Supplemental Disclosure of Non-Cash Operating and Financing Activities: |
|
|
|
|
|
|
||
Relief of Inventory for Vouchers Redeemed for Legal Settlements |
|
$ |
968 |
|
|
$ |
1,849 |
|
Tenant Improvement Allowance for Leases |
|
|
(196 |
) |
|
|
(1,148 |
) |
7
LL Flooring Holdings, Inc.
GAAP to Non-GAAP Reconciliation
Items impacting gross margin with comparisons to the prior-year periods include:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||||||||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||||||||||||||||||
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
||||||||
|
|
(in thousands, except percentage data) |
|
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Gross Profit/Margin, as reported (GAAP) |
|
$ |
68,508 |
|
|
|
31.7 |
% |
|
$ |
95,582 |
|
|
|
35.6 |
% |
|
$ |
241,039 |
|
|
|
34.8 |
% |
|
$ |
306,411 |
|
|
|
36.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Vinyl Charges1 |
|
|
1,637 |
|
|
|
0.8 |
% |
|
|
— |
|
|
|
— |
% |
|
|
6,126 |
|
|
|
0.9 |
% |
|
|
— |
|
|
|
— |
% |
Antidumping and Countervailing Adjustments2 |
|
|
10,713 |
|
|
|
5.0 |
% |
|
|
— |
|
|
|
— |
% |
|
|
10,713 |
|
|
|
1.5 |
% |
|
|
977 |
|
|
|
0.1 |
% |
Adjustment Items Subtotal |
|
|
12,350 |
|
|
|
5.7 |
% |
|
|
— |
|
|
|
— |
% |
|
|
16,839 |
|
|
|
2.4 |
% |
|
|
977 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Gross Profit/Margin (non-GAAP measures) |
|
$ |
80,858 |
|
|
|
37.5 |
% |
|
$ |
95,582 |
|
|
|
35.6 |
% |
|
$ |
257,878 |
|
|
|
37.2 |
% |
|
$ |
307,388 |
|
|
|
36.3 |
% |
1 This amount represents costs related to CBP detentions on flooring products that contain PVC as a consequence of the UFLPA.
2 This amount represents net antidumping and countervailing income associated with applicable prior-year shipments of engineered hardwood from China.
Items impacting SG&A with comparisons to the prior-year periods include:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||||||||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||||||||||||||||||
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
||||||||
|
|
(in thousands, except percentage data) |
|
|||||||||||||||||||||||||||||
SG&A, as reported (GAAP) |
|
$ |
98,109 |
|
|
|
45.5 |
% |
|
$ |
99,692 |
|
|
|
37.1 |
% |
|
$ |
304,294 |
|
|
|
43.9 |
% |
|
$ |
300,804 |
|
|
|
35.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Recovery for Legal Matters and Settlements3 |
|
|
— |
|
|
|
— |
% |
|
|
(150 |
) |
|
|
(0.1 |
)% |
|
|
— |
|
|
|
— |
% |
|
|
(150 |
) |
|
|
— |
% |
Legal and Professional Fees4 |
|
|
143 |
|
|
|
0.1 |
% |
|
|
— |
|
|
|
— |
% |
|
|
922 |
|
|
|
0.1 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted SG&A (a non-GAAP measure) |
|
$ |
97,966 |
|
|
|
45.4 |
% |
|
$ |
99,842 |
|
|
|
37.1 |
% |
|
$ |
303,372 |
|
|
|
43.8 |
% |
|
$ |
300,954 |
|
|
|
35.5 |
% |
3 This amount represents insurance recovery related to the Gold Litigation recorded in the third quarter of 2022, described more fully in Item 1, Note 7 to the Company's unaudited consolidated financial statements filed in the September 30, 2022 10-Q.
4 This amount represents incremental legal and professional fees charged to earnings related to the vinyl CBP detentions. This does not include all legal costs incurred by the Company.
8
LL Flooring Holdings, Inc.
GAAP to Non-GAAP Reconciliation
Items impacting operating (loss) income and operating margin with comparisons to the prior-year periods include:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||||||||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||||||||||||||||||
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
||||||||
|
|
(in thousands, except percentage data) |
|
|||||||||||||||||||||||||||||
Operating (Loss) Income, as reported (GAAP) |
|
$ |
(29,601 |
) |
|
|
(13.7 |
)% |
|
$ |
(4,110 |
) |
|
|
(1.5 |
)% |
|
$ |
(63,255 |
) |
|
|
(9.1 |
)% |
|
$ |
5,607 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross Margin Adjustment Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Vinyl Charges1 |
|
|
1,637 |
|
|
|
0.8 |
% |
|
|
— |
|
|
|
— |
% |
|
|
6,126 |
|
|
|
0.9 |
% |
|
|
— |
|
|
|
— |
% |
Antidumping and Countervailing Adjustments2 |
|
|
10,713 |
|
|
|
5.0 |
% |
|
|
— |
|
|
|
— |
% |
|
|
10,713 |
|
|
|
1.5 |
% |
|
|
977 |
|
|
|
0.1 |
% |
Gross Margin Adjustment Items Subtotal |
|
|
12,350 |
|
|
|
5.8 |
% |
|
|
— |
|
|
|
— |
% |
|
|
16,839 |
|
|
|
2.4 |
% |
|
|
977 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
SG&A Adjustment Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Recovery for Legal Matters and Settlements3 |
|
|
— |
|
|
|
— |
% |
|
|
(150 |
) |
|
|
(0.1 |
)% |
|
|
— |
|
|
|
— |
% |
|
|
(150 |
) |
|
|
— |
% |
Legal and Professional Fees4 |
|
|
143 |
|
|
|
0.1 |
% |
|
|
— |
|
|
|
— |
% |
|
|
922 |
|
|
|
0.1 |
% |
|
|
— |
|
|
|
— |
% |
SG&A Adjustment Items Subtotal |
|
|
143 |
|
|
|
0.1 |
% |
|
|
(150 |
) |
|
|
(0.1 |
)% |
|
|
922 |
|
|
|
0.1 |
% |
|
|
(150 |
) |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Operating (Loss) Income/ Margin (a non-GAAP measure) |
|
$ |
(17,108 |
) |
|
|
(7.9 |
)% |
|
$ |
(4,260 |
) |
|
|
(1.6 |
)% |
|
$ |
(45,494 |
) |
|
|
(6.6 |
)% |
|
$ |
6,434 |
|
|
|
0.8 |
% |
1,2,3,4 See the Gross Profit and SG&A sections above for more detailed explanations of these individual items.
Items impacting other expense with comparisons to the prior year periods include:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||||||||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||||||||||||||||||
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
|
$ |
|
|
% of Sales |
|
||||||||
|
|
(in thousands, except percentage data) |
|
|||||||||||||||||||||||||||||
Other Expense, as reported (GAAP) |
|
$ |
6,391 |
|
|
|
3.0 |
% |
|
$ |
646 |
|
|
|
0.2 |
% |
|
$ |
8,225 |
|
|
|
1.2 |
% |
|
$ |
830 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest Impact Related to Antidumping and Countervailing Adjustments5 |
|
|
5,537 |
|
|
|
2.6 |
% |
|
|
— |
|
|
|
— |
% |
|
|
5,537 |
|
|
|
0.8 |
% |
|
|
(2 |
) |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Other Expense/Adjusted Other Expense as a % of Sales (a non-GAAP measure) |
|
$ |
854 |
|
|
|
0.4 |
% |
|
$ |
646 |
|
|
|
0.2 |
% |
|
$ |
2,688 |
|
|
|
0.4 |
% |
|
$ |
832 |
|
|
|
0.1 |
% |
5 This amount represents the interest income impact of certain antidumping and countervailing adjustments related to applicable prior-year shipments of engineered hardwood from China.
9
LL Flooring Holdings, Inc.
GAAP to Non-GAAP Reconciliation
Items impacting (loss) earnings per diluted share with comparisons to the prior-year periods include:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
(in thousands, except per share data) |
|
|||||||||||||
Net (Loss) Income, as reported (GAAP) |
|
$ |
(35,962 |
) |
|
$ |
(3,774 |
) |
|
$ |
(85,549 |
) |
|
$ |
2,999 |
|
Net (Loss) Income per Diluted Share (GAAP) |
|
$ |
(1.25 |
) |
|
$ |
(0.13 |
) |
|
$ |
(2.97 |
) |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross Margin Adjustment Items: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Vinyl Charges1 |
|
|
1,637 |
|
|
|
— |
|
|
|
6,126 |
|
|
|
— |
|
Antidumping and Countervailing Adjustments2 |
|
|
10,713 |
|
|
|
— |
|
|
|
10,713 |
|
|
|
977 |
|
Gross Margin Adjustment Items Subtotal |
|
|
12,350 |
|
|
|
— |
|
|
|
16,839 |
|
|
|
977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
SG&A Adjustment Items: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Recovery for Legal Matters and Settlements3 |
|
|
— |
|
|
|
(150 |
) |
|
|
— |
|
|
|
(150 |
) |
Legal and Professional Fees4 |
|
|
143 |
|
|
|
— |
|
|
|
922 |
|
|
|
— |
|
SG&A Adjustment Items Subtotal |
|
|
143 |
|
|
|
(150 |
) |
|
|
922 |
|
|
|
(150 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other Expense Adjustment Items: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest Impact Related to Antidumping and Countervailing Adjustment5 |
|
|
5,537 |
|
|
|
— |
|
|
|
5,537 |
|
|
|
(2 |
) |
Other Expense Adjustment Items Subtotal |
|
|
5,537 |
|
|
|
— |
|
|
|
5,537 |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income Tax Adjustment6 |
|
|
(4,634 |
) |
|
|
40 |
|
|
|
(5,988 |
) |
|
|
(218 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted (Loss) Earnings |
|
$ |
(22,566 |
) |
|
$ |
(3,884 |
) |
|
$ |
(68,239 |
) |
|
$ |
3,606 |
|
Adjusted (Loss) Earnings per Diluted Share (a non-GAAP measure) |
|
$ |
(0.78 |
) |
|
$ |
(0.14 |
) |
|
$ |
(2.37 |
) |
|
$ |
0.12 |
|
1,2,3,4,5 See the Gross Profit, SG&A and Other Expense sections above for more detailed explanations of these individual items.
6 Income tax adjustment is defined as the sum of gross margin, SG&A, and other expense adjustment items multiplied by the Company’s federal incremental rate, which was 25.7% and 26.4% for the three and nine month periods ended September 30, 2023 and 2022, respectively.
10
Document And Entity Information |
Nov. 08, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Nov. 08, 2023 |
Entity Registrant Name | LL Flooring Holdings, Inc. |
Entity Central Index Key | 0001396033 |
Entity Emerging Growth Company | false |
Securities Act File Number | 001-33767 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 27-1310817 |
Entity Address, Address Line One | 4901 Bakers Mill Lane |
Entity Address, City or Town | Richmond |
Entity Address, State or Province | VA |
Entity Address, Postal Zip Code | 23230 |
City Area Code | 804 |
Local Phone Number | 463-2000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.001 per share |
Trading Symbol | LL |
Security Exchange Name | NYSE |
1 Year LL Flooring Chart |
1 Month LL Flooring Chart |
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