Lumber Liquidators 2008 Annual Report Download - page 27

stockholders from calling a special meeting of stockholders or requiring one to be called or from taking action by
written consent and provisions that set forth advance notice procedures for stockholders’ nominations of directors
and proposals of topics for consideration at meetings of stockholders. Our certificate of incorporation also
provides that Section 203 of the Delaware General Corporation Law, which relates to business combinations with
interested stockholders, applies to us. These provisions may delay, prevent or deter a merger, acquisition, tender
offer, proxy contest or other transaction that might otherwise result in our stockholders receiving a premium over
the market price for their common stock. In addition, these provisions may cause our common stock to trade at a
market price lower than it might absent such provisions.
Our common stock price may be volatile and you may lose all or part of your investment.
The market price of our common stock could fluctuate significantly. Those fluctuations could be based on
various factors in addition to those otherwise described in this report, including:
• our operating performance and the performance of our competitors;
• the public’s reaction to our press releases, our other public announcements and our filings with the
SEC;
• changes in earnings estimates or recommendations by research analysts who follow Lumber
Liquidators or other companies in our industry;
• variations in general economic conditions;
• actions of our current stockholders, including sales of common stock by our directors and executive
officers;
• the arrival or departure of key personnel; and
• other developments affecting us, our industry or our competitors.
In addition, in recent years, the stock market has experienced significant price and volume fluctuations.
These fluctuations may be unrelated to the operating performance of particular companies but may cause
declines in the market price of our common stock. The price of our common stock could fluctuate based upon
factors that have little or nothing to do with our company or its performance.
Our quarterly operating results may fluctuate significantly and could fall below the expectations of securities
analysts and investors due to various factors.
Our quarterly operating results may fluctuate significantly because of various factors, including:
• changes in comparable store sales and customer visits, including as a result of declining consumer
confidence or the introduction of new products;
• the timing of new store openings and related revenues and expenses;
• profitability of our stores, especially in new markets;
• the impact of inclement weather, natural disasters and other calamities;
• variations in general economic conditions, including the impact of interest rates on our interest income;
• changes in consumer preferences and discretionary spending;
• fluctuations in supply prices; and
• tax expenses, impairment charges and other non-operating costs.
As a result of these factors, results for any one quarter are not necessarily indicative of results to be expected
for any other quarter or for any year. Average store sales or comparable store sales in any particular future period
may decrease. In the future, operating results may fall below the expectations of securities analysts and investors,
which could cause our stock prices to fall.
21