Lumber Liquidators 2008 Annual Report Download - page 18

furnished to, the SEC. In addition, you may read and copy any materials we file with the SEC at the SEC’s
Public Reference Room at 450 Fifth Street, N.W., Washington, DC 20549. Information on the operation of the
Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. The SEC also maintains an
Internet site, www.sec.gov, that contains reports, proxy and information statements, and other information that
we file electronically with the SEC.
Item 1A. Risk Factors.
Cautionary Note Regarding Forward-Looking Statements
This report includes statements of our expectations, intentions, plans and beliefs that constitute “forward-
looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 and are intended to come within the safe harbor protection provided by those
sections. These statements, which involve risks and uncertainties, relate to matters such as sales growth,
comparable store net sales, impact of cannibalization, price changes, earnings performance, stock-based
compensation expense, margins, return on invested capital, strategic direction, the demand for our products and
store openings. We have used words such as “may,” “will,” “should,” “expects,” “intends,” “plans,”
“anticipates,” “believes,” “thinks,” “estimates,” “seeks,” “predicts,” “could,” “projects,” “potential” and other
similar terms and phrases, including references to assumptions, in this report to identify forward-looking
statements. These forward-looking statements are made based on expectations and beliefs concerning future
events affecting us and are subject to uncertainties, risks and factors relating to our operations and business
environments, all of which are difficult to predict and many of which are beyond our control, that could cause our
actual results to differ materially from those matters expressed or implied by these forward-looking statements.
These risks and other factors include those listed in this Item 1A. “Risk Factors,” and elsewhere in this report.
When considering these forward-looking statements, you should keep in mind the cautionary statements in
this report and the documents incorporated by reference. New risks and uncertainties arise from time to time, and
we cannot predict those events or how they may affect us. There may also be other factors that we cannot
anticipate or that are not described in this report that could cause results to differ materially from our
expectations. Forward-looking statements speak only as of the date they are made and we assume no obligation
to update them after the date of this report as a result of new information, future events or subsequent
developments, except as required by the federal securities laws.
Risks Related to Our Business and Industry
Current economic conditions may adversely impact demand for our products, reduce access to credit and
cause our customers and others with which we do business to suffer financial hardship, all of which could
adversely impact our business, results of operations, financial condition and cash flows.
Our business, financial condition and results of operations have and may continue to be affected by various
economic factors. The U.S. economy is undergoing a period of slowdown and the future economic environment
may continue to be less favorable than that of recent years. This slowdown has, and could further lead to, reduced
consumer and business spending in the foreseeable future, including by our customers. Reduced access to credit
has and may continue to adversely affect the ability of consumers to purchase our products. This potential
reduction in access to credit may include our ability to offer customers revolving credit card financing through
third-party credit providers on terms similar to those offered previously, or at all. In addition, economic
conditions, including decreased access to credit, may result in financial difficulties leading to restructurings,
bankruptcies, liquidations and other unfavorable events for our customers, suppliers and other service providers.
If such conditions continue or further deteriorate in 2009 or through fiscal 2010, our industry, business and
results of operations may be severely impacted.
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