Lumber Liquidators 2007 Annual Report Download - page 32

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PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities.
Market Information
Our common stock trades on the New York Stock Exchange (or “NYSE”) under the trading symbol “LL”.
Our common stock began trading on the NYSE on November 9, 2007 and through December 31, 2007, the
high and low closing sales price was $9.76 and $7.83, respectively.
Holders
As of February 25, 2008, we had 15 shareholders of record and approximately 2,000 beneficial holders of
our common stock.
Dividend Policy
We are not required to pay any dividends and have not declared or paid any cash dividends on our common
stock. We intend to continue to retain earnings for use in the operation and expansion of our business and
therefore do not anticipate payment of any cash dividends on our common stock in the foreseeable future.
Recent Sales of Unregistered Securities
Immediately prior to the initial public offering on November 9, 2007, 7,952,018 shares of our redeemable
preferred stock held by TA Associates were converted into 7,952,018 shares of our common stock. No
consideration was received by us in connection with the conversion of the redeemable preferred stock. This
issuance of common stock upon conversion of the redeemable preferred stock held by TA Associates was exempt
from registration under the Securities Act of 1933 in reliance on Section 3(a)(9) of the Securities Act of 1933 as
an exchange by an issuer with an existing security holder exclusively where no commission or other
remuneration is paid or given directly or indirectly for soliciting such exchange.
Initial Public Offering and Use of Proceeds
On November 8, 2007, a registration statement (SEC file number 333-142309) relating to our initial public
offering (the “IPO”) of our common stock was declared effective by the SEC. Under this registration statement,
3,800,000 shares of our common stock was sold by us and 6,200,000 were sold by selling stockholders, Tom
Sullivan and TA Associates, at a price to the public of $11.00 per share. The offering closed on November 15,
2007. The managing underwriters were Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith
Incorporated.
The offering terminated after the sale of all of the shares registered on the registration statement (excluding
the shares that are registered in connection with the underwriters’ over-allotment option, which expired
unexercised). The gross proceeds from the shares of common stock sold by us were $41.8 million. The net
proceeds to us from the offering were approximately $36.2 million, after deducting an aggregate of $2.9 million
in underwriting discounts and commissions paid to the underwriters and $2.7 million in other expenses incurred
in connection with the offering. We used $6.6 million of these proceeds to repay the amounts outstanding under
the term-loan portion of our senior secured loan agreement. We intend to use the remaining proceeds, or $29.6
million, for general corporate purposes.
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