Lumber Liquidators 2008 Annual Report Download - page 28

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We do not intend to pay dividends for the foreseeable future.
For the foreseeable future, we intend to retain any earnings to finance the development and expansion of our
business, and we do not anticipate paying any cash dividends on our common stock. Accordingly, investors must
be prepared to rely on sales of their common stock after price appreciation to earn an investment return, which
may never occur. Investors seeking cash dividends should not purchase our common stock. Any determination to
pay dividends in the future will be made at the discretion of our board of directors and will depend on our results
of operations, financial condition, contractual restrictions, restrictions imposed by applicable law and other
factors our board deems relevant.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
As of March 3, 2009, we operated 157 stores located in 44 states, including 7 opened since December 31,
2008. We lease all of our stores and our corporate headquarters located in Toano, Virginia, which includes our
call center, corporate offices, and distribution and finishing facility. Our corporate headquarters has 307,784
square feet, of which approximately 32,000 square feet are office space, and is located on a 74-acre plot.
The table below sets forth the locations (alphabetically by state) of our stores in operation as of March 3,
2009.
State Stores State Stores State Stores State Stores
Alabama 4 Indiana 2 Missouri 2 Pennsylvania 6
Arizona 3 Iowa 2 Nebraska 1 Rhode Island 1
Arkansas 1 Kansas 2 Nevada 2 South Carolina 3
California 12 Kentucky 2 New Hampshire 3 Tennessee 4
Colorado 4 Louisiana 3 New Jersey 4 Texas 12
Connecticut 2 Maine 1 New Mexico 1 Utah 1
Delaware 1 Maryland 3 New York 9 Vermont 1
Florida 12 Massachusetts 4 North Carolina 4 Virginia 7
Georgia 5 Michigan 5 Ohio 5 Washington 4
Idaho 1 Minnesota 2 Oklahoma 2 West Virginia 2
Illinois 6 Mississippi 1 Oregon 2 Wisconsin 3
Currently, 26 of our store locations are leased from related parties. See discussion of properties leased from
related parties in Note 5 to the financial statements included in Item 8 of this report and within Related Party
Transactions and Lease Arrangements in Item 13 of this report.
Item 3. Legal Proceedings.
We are from time to time subject to claims and disputes arising in the normal course of business. In the
opinion of management, while the outcome of any such claims and disputes cannot be predicted with certainty,
our ultimate liability in connection with these matters is not expected to have a material adverse effect on our
results of operations, financial position or cash flows.
The Variable Plan
On December 7, 2007, Kevin Sullivan, the Founder’s brother and one of our regional managers until
December 2008 (or “Kevin”), filed a demand for arbitration seeking to recover the number of shares to which he
alleged he was entitled under the Variable Plan and naming us and the Founder as respondents. In accordance
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