Lumber Liquidators 2007 Annual Report Download - page 33

Securities Authorized for Issuance Under Equity Compensation Plans
See Item 12. “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters” for information regarding securities authorized for issuance under our equity compensation plans.
Item 6. Selected Financial Data.
The selected statements of income data for the years ended December 31, 2007, 2006 and 2005 and the
balance sheet data as of December 31, 2007 and 2006 have been derived from our audited financial statements
included in Item 8 of this report. This information should be read in conjunction with those audited financial
statements, the notes thereto, and with Item 7. “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” of this report. The selected financial data set forth below as of December 31, 2005
and income data for the year ended December 31, 2004 are derived from our financial statements contained in
reports previously filed with the SEC, not included herein. We derived the selected financial data as of
December 31, 2004 from our audited financial statements and the related notes not included herein. We derived
the selected financial data as of and for the year ended December 31, 2003 from our unaudited financial
statements not included herein. Our historical results are not necessarily indicative of our results for any future
period.
Year Ended December 31,
2007 2006(1) 2005 2004 2003
(in thousands, except share and per share amounts)
(unaudited)
Statement of Income Data
Net sales ......................... $ 405,307 $ 332,060 $ 244,947 $ 171,766 $ 100,866
Cost of sales ...................... 270,193 221,931 158,844 115,857 67,870
Gross profit ....................... 135,114 110,129 86,103 55,909 32,996
Selling, general and administrative
expenses ....................... 116,308 88,716 67,900 48,461 29,566
Impairment loss on long-lived assets . . . — — — 293 955
Operating income .................. 18,806 21,413 18,203 7,155 2,475
Interest expense .................... 722 722 638 429 218
Other (income) expense(2) ........... (413) (368) (96) 190 (428)
Income before income taxes .......... 18,497 21,059 17,661 6,536 2,685
Provision for income taxes(3) ......... 7,171 8,161 6,948 (1,450) 65
Net income ....................... $ 11,326 $ 12,898 $ 10,713 $ 7,986 $ 2,620
Net income per common share:
Basic .......................... $ 0.68 $ 0.86 $ 0.71 $ 0.53 $ 0.17
Diluted ......................... $ 0.48 $ 0.56 $ 0.46 $ 0.51 $ 0.17
Weighted average common shares
outstanding(4):
Basic .......................... 16,646,674 15,000,100 15,000,100 15,000,100 15,000,100
Diluted ......................... 23,634,995 22,989,403 23,063,174 15,675,477 15,000,100
(1) We adopted the provisions of SFAS 123(R), using the prospective-transition method, effective January 1,
2006.
(2) Includes interest income.
(3) Effective December 1, 2004, we elected to be taxed as a “C” corporation for federal and state income tax
purposes. Prior to this election, we were not subject to federal and certain state income taxation at the
corporation level.
(4) Share amounts as of December 31, 2003 have been adjusted to reflect the December 2004 common stock
dividend of 150,000:1 to Tom Sullivan, our founder and chairman of our board of directors.
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