Lumber Liquidators 2012 Annual Report Download - page 17

We believe that we currently conduct, and in the past have conducted, our activities and operations in substantial
compliance with applicable laws and regulations relating to the environment and protection of natural resources, and believe
that any costs arising from such laws and regulations will not have a material adverse effect on our financial condition or
results of operations. However, there can be no assurance that such laws will not become more stringent in the future or that
we will not incur costs in the future in order to comply with such laws.
Available Information
We maintain a website at www.lumberliquidators.com. The information on or available through our website is not, and
should not be considered, a part of this report. You may access our annual reports on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K and amendments to those reports, as well as other reports relating to us that are filed
with or furnished to the Securities and Exchange Commission (“SEC”) free of charge at our website as soon as reasonably
practicable after such material is electronically filed with, or 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 100 F Street, NE, 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, which contains reports, proxy and information statements, and other
information that we file electronically with the SEC.
Item 1A. Risk Factors.
The risks described below could materially and adversely affect our business, results of operations, financial condition
and cash flows. These risks are not the only risks that we face. Our business operations could also be affected by additional
factors that apply to all companies operating in the United States and globally, as well as other risks that are not presently
known to us or that we currently consider to be immaterial.
Risks Related to Economic Factors and Our Industry
Changes in 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 and financial condition.
Our business, financial condition and results of operations have and may continue to be affected by various economic
factors. Changes in the current economic environment and uncertainty about the future could lead to reduced consumer and
business spending, including by our customers. Such changes may also cause customers to shift their spending to products
we either do not sell or do not sell as profitably. Further, a reduced access to credit may adversely affect the ability of
consumers to purchase our products. This potential reduction in access to credit may include our ability to offer customers
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 deteriorate, our industry, business and results of operations may be severely impacted.
The hardwood flooring industry depends on the economy, home remodeling activity, the homebuilding industry and other
important factors.
The hardwood flooring industry is highly dependent on the remodeling of existing homes and new home construction.
In turn, remodeling and new home construction depend on a number of factors which are beyond our control, including
interest rates, tax policy, employment levels, consumer confidence, credit availability, real estate prices, demographic trends,
weather conditions, natural disasters and general economic conditions. For example, discretionary consumer spending could
be limited, spending on remodeling of existing homes could be reduced and purchases of new homes could decline if:
• the national economy or any regional or local economy where we operate weakens;
• interest rates rise;
• credit becomes less available;
• tax rates and health care costs increase;
• regions where we operate experience unfavorable demographic trends;
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