Lumber Liquidators 2010 Annual Report Download - page 26

• the timing of new store openings and related sales 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;
• the timing and scope of sales promotions and product introductions;
• changes in consumer preferences and discretionary spending;
• fluctuations in supply prices; and
• tax expenses, impairment charges and other non-operating costs.
Due to 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 net sales or comparable store net sales in any particular future period may decrease. In
the future, operating results may fall below the expectations of research analysts and investors, which could cause the price
of our common stock to fall.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
As of February 23, 2011, we operated 230 stores located in 46 states, including seven opened since December 31, 2010.
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. In addition, we lease 515,486 square feet in Hampton, Virginia, near
the port, to supplement our distribution 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 U.S. stores in operation as of February 23, 2011.
State Stores State Stores State Stores State Stores
Alabama ......... 5 Iowa ............ 3 Nevada ............... 2 Rhode Island ........... 1
Arizona .......... 4 Kansas .......... 2 NewHampshire ........ 4 South Carolina ......... 4
Arkansas ......... 2 Kentucky ........ 3 NewJersey ............ 7 South Dakota .......... 1
California ........ 19 Louisiana ........ 4 NewMexico ........... 1 Tennessee ............. 5
Colorado ......... 5 Maine ........... 2 NewYork ............. 12 Texas ................. 20
Connecticut ....... 3 Maryland ........ 4 North Carolina ......... 8 Utah ................. 2
Delaware ......... 3 Massachusetts .... 6 North Dakota .......... 1 Vermont .............. 1
Florida ........... 16 Michigan ........ 6 Ohio ................. 7 Virginia ............... 9
Georgia .......... 7 Minnesota ....... 5 Oklahoma ............. 2 Washington ............ 7
Idaho ............ 2 Mississippi ....... 2 Oregon ............... 2 West Virginia .......... 2
Illinois ........... 8 Missouri ......... 3 Pennsylvania ........... 9 Wisconsin ............. 3
Indiana .......... 4 Nebraska ........ 2
As of February 23, 2011, 27 of our store locations are leased from related parties. See discussion of properties leased
from related parties in Note 5 to the consolidated financial statements included in Item 8 of this report and within Certain
Relationships, Related Transactions and Director Independence in Item 13 of this report.
Item 3. Legal Proceedings.
On September 3, 2009, a former store manager and a current assistant store manager at the time (together, the
“Plaintiffs”) filed a putative class action suit against Lumber Liquidators, Inc. (“LLI”) in the Superior Court of California in
and for the County of Alameda. The Plaintiffs allege that with regard to certain groups of current and former employees in
LLI’s California stores, LLI violated California law by failing to calculate and pay overtime wages properly, provide meal
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