Lumber Liquidators 2015 Annual Report Download

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2015 ANNUAL
REPORT YEAR ENDED
12.31.2015
“I went to several floor places to get estimates and I did not agree
with any until I went to Lumber Liquidators - the price was right. No
more carpet. Thank you Lumber Liquidators.” Dawn, New York
“Great customer service, great
product, great price, great
install. Love everything about
the experience. Thanks Lumber
Liquidators.” Stanley, Texas
“It’s PERFECT!!! We were so happy
with it we plan to do another room
immediately! Then, over the next
year, do the entire home!! Thanks
Lumber Liquidators, for all your
helpful hints and assistance with
deciding which flooring was best for
us!” Cathy, New Hampshire

Table of contents

  • Page 1
    2015 ANNUAL REPORT YEAR ENDED 12.31.2015 "Great customer service, great product, great price, great install. Love everything about the experience. Thanks Lumber Liquidators." Stanley, Texas "It's PERFECT!!! We were so happy with it we plan to do another room immediately! Then, over the next year, ...

  • Page 2
    ...extremely helpful and nice. Thanks for making our home look good." Corinne, Pennsylvania "Best thing I ever did to add style and value to my home." George, Texas "These floors have changed the look of the house. No complaints at all. Great floors, great price and Lumber Liquidators provided quality...

  • Page 3
    ...past year, we evaluated and took steps to improve the sales process in the store, while optimizing our pricing strategy. Our aim is to maximize sales while delivering an exceptional experience for customers. In early 2016, we were excited to bring aboard Dennis Knowles as our Chief Operating Officer...

  • Page 4
    2015 Financial Highlights MILLIONS Stores Open $77.4 $63.4 $47.1 MILLIONS $26.3 $(56.4) $40.7 MILLIONS $184.1 $378.5 $221.8 $153.7 Lumber Liquidators 2015 Product Mix

  • Page 5
    ... Senior Vice President, Chief Human Resources Officer Jill Witter Secretary; Chief Compliance and Legal Officer SHAREHOLDER INFORMATION Corporate Address Lumber Liquidators Holdings, Inc. 3000 John Deere Road Toano, VA 23168 (757) 259-4280 Independent Registered Public Accounting Firm Ernst...

  • Page 6
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  • Page 7
    ... Act). Yes â...ª No à š As of June 30, 2015, the last business day of the registrant's most recent second quarter, the aggregate market value of the registrant's common stock held by non-affiliates of the registrant was $542.6 million based on the closing sale price as reported on the New York Stock...

  • Page 8

  • Page 9
    ... ...PART III Item 10. Item 11. Item 12. Item 13. Item 14. Directors, Executive Officers and Corporate Governance ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Certain Relationships and Related Transactions, and...

  • Page 10
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  • Page 11
    ... air quality tests, strategic direction, the scale of the expansion of and transition to the Company's laminate products sourced from Europe and North America, supply chain, the demand for the Company's products, benefits from an improving housing market, construction of engineered hardwood as...

  • Page 12
    ... Liquidators is a Delaware corporation with headquarters in Toano, Virginia. We were founded in 1994 and our initial public offering was in November 2007. Our common stock trades on the New York Stock Exchange under the symbol ''LL.'' We operate in a holding company structure with Lumber Liquidators...

  • Page 13
    ... and Quality Control The Company's compliance programs are designed to ensure the products we sell are safe, responsibly sourced, and meet all regulatory and statutory requirements, including without limitation requirements associated with the Lacey Act and the California Air Resources Board (''CARB...

  • Page 14
    ... strategy emphasizes customer service by providing superior, convenient, educational tools for our customers to learn about our products and the installation process. Flooring samples of most of the products we offer are available in our stores, or can be ordered through our call center and website...

  • Page 15
    ... and product placement opportunities. Overall, we actively manage the mix of our media to efficiently drive sales while building brand awareness of our value proposition. Financing: We offer our residential customers a financing alternative through a proprietary credit card, the Lumber Liquidators...

  • Page 16
    ... in the United States, including Lumber Liquidators௡, Hardwood Floors For Less!௡, Bellawood௡, 1-800-HARDWOOD௡, 1-800-FLOORING௡, Quickclic௡, Virginia Mill Works Co. Hand Scraped and Distressed Floors௡, Morning Star Bamboo Flooring௡, Dream Home Laminate Floors௡, Builder's Pride...

  • Page 17
    ...or sustain our business. We rely on our reputation for offering great value, superior service and a broad selection of high-quality, safe ï¬,ooring products. We are currently involved in a number of government investigations and legal actions, many of which have resulted from unfavorable allegations...

  • Page 18
    ... successful selection of new markets and store locations; the implementation of and results generated by our new showroom format; our ability to negotiate leases on acceptable terms; management of store opening costs; the quality of our operations; our ability to meet customer demand; the continued...

  • Page 19
    ..., Virginia upon which we constructed a million square foot distribution center. The facility became fully operational in January 2015. This was our first real estate purchase and is the first distribution center owned by us. The cost of operating and managing the East Coast distribution center may...

  • Page 20
    ... and our net sales and our profitability and reputation could be harmed. Failure to manage our growth effectively could harm our business and operating results. Our plans call for a significant number of new stores, and increased orders from our website, call center and catalogs. Our existing...

  • Page 21
    ... of our suppliers to adhere to applicable legal requirements and the quality standards that we set for our products could lead to government investigations, litigation, write-offs and recalls, which could damage our reputation and our brands, increase our costs, and otherwise hurt our business. 11

  • Page 22
    ... our suppliers to ship certain products to us cost-effectively or at all, which could harm our operations. Our ability to offer hardwood ï¬,ooring, particularly products made of more exotic species, depends on the continued availability of sufficient suitable hardwood. Our business strategy depends...

  • Page 23
    ... our profitability. Hardwood lumber costs ï¬,uctuate as a result of a number of factors including changes in domestic and international supply and demand, labor costs, competition, market speculation, product availability, environmental restrictions, government regulation and trade policies, duties...

  • Page 24
    ...regional home improvement chains, national and regional specialty ï¬,ooring chains, Internet-based companies and privately-owned single-site enterprises. We compete on the basis of price, customer service, store location and range, quality and availability of the hardwood ï¬,ooring that we offer our...

  • Page 25
    ... our business and reduce our net sales. We depend on our management information systems to integrate the activities of our stores, website and call center, to process orders, to respond to customer inquiries, to manage inventory, to purchase merchandise and to sell and ship goods on a timely basis...

  • Page 26
    ... market or industry perception arising from such loss, could damage our business and harm our reputation. We announced the appointment of John M. Presley as our chief executive officer in November 2015. Mr. Presley replaced Thomas D. Sullivan, who had been serving as acting chief executive officer...

  • Page 27
    ...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, the stock market may experience significant price and volume ï¬,uctuations. These...

  • Page 28
    ... in connection with such lawsuits and/or investigations; the timing and scope of sales promotions and product introductions; changes in consumer preferences and discretionary spending; ï¬,uctuations in supply prices; and tax expenses, impairment charges and other non-operating costs. Due to...

  • Page 29
    ... Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin 1 8 1 6 30 2 1 13 7 3 5 We lease all of our stores and our corporate headquarters located in Toano, Virginia, which includes our call center, corporate offices, and distribution and...

  • Page 30
    Item 3. Legal Proceedings. Government Investigations Lacey Act Related Matters On September 26, 2013, sealed search warrants were executed at our corporate offices in Toano and Richmond, Virginia by the Department of Homeland Security's Immigration and Customs Enforcement and the U.S. Fish and ...

  • Page 31
    ... 26, 2013, Gregg Kiken (''Kiken'') filed a securities class action lawsuit (the ''Kiken Lawsuit''), which was subsequently amended, in the United States District Court for the Eastern District of Virginia against us, our founder, former Chief Executive Officer and President, former Chief Financial...

  • Page 32
    ...Global Community Monitor and Sunshine Park LLC (together, the ''Prop 65 Plaintiffs'') filed a lawsuit, which was subsequently amended, in the Superior Court of the State of California, County of Alameda, against us. In the amended complaint, the Prop 65 Plaintiffs allege that we violated California...

  • Page 33
    ... filed a purported class action lawsuit in the United States District Court for the Northern District of California alleging that the Morning Star bamboo ï¬,ooring (the ''Bamboo Product'') that we sell is defective. On February 13, 2015, Gold filed an amended complaint that added three additional...

  • Page 34
    ...to court order, plaintiffs filed a Representative Class Action Complaint in the Virginia Court on September 11, 2015. The complaint challenged the labeling of our ï¬,ooring products and asserted claims under California, New York, Illinois, Florida and Texas law for fraudulent concealment, violation...

  • Page 35
    ...the United States who purchased Defendant's Dream Home brand laminate ï¬,ooring products from Defendant for personal use in their homes,'' or, in the alternative, 32 statewide classes from California, North Carolina, Texas, New Jersey, Florida, Nevada, Connecticut, Iowa, Minnesota, Nebraska, Georgia...

  • Page 36
    ... Cases On or about March 11, 2015, R. Andre Klein (''Klein'') filed a shareholder derivative suit in the United States District Court for the Eastern District of Virginia against our directors at that time, as well as our Senior Vice President, Supply Chain, former Chief Merchandising Officer...

  • Page 37
    ... this action. McBride Matter On or about March 27, 2015, James Michael McBride (''McBride'') filed a shareholder derivative suit in the Circuit Court of the City of Williamsburg and County of James City, Virginia against our directors at that time, as well as our former Chief Merchandising Officer...

  • Page 38
    ... comply with our existing governance obligations and all applicable laws and (c) protect us and our investors from a recurrence of the events that led to the filing of this action. On July 6, 2015, McBride filed an amended complaint. The amended complaint added claims for statutory conspiracy and...

  • Page 39
    ... this time. In February 2016, the DOC initiated the fourth annual review of AD and CVD rates, which we expect will follow a similar schedule as the preceding review. Other Matters We are also, from time to time, subject to claims and disputes arising in the normal course of business. In the opinion...

  • Page 40
    ... 25, 2016 were 27,088,460, and we had eight stockholders of record. The following table sets forth the range of high and low sales prices per share as reported by the NYSE for each quarter during the last two fiscal years. Price Range High Low 2015: Fourth Quarter Third Quarter . Second Quarter...

  • Page 41
    ...management's opinion that such indices are an appropriate measure of the relative performance of our common stock. Comparison of 5 Year Cumulative Total Return Assumes Initial Investment of $100 December 2015...31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 Lumber Liquidators ...

  • Page 42
    ... indicative of our results for any future period. 2015(1) Year Ended December 31, 2014 2013 2012 (dollars in thousands, except per share amounts) 2011 Statement of Income Data Net Sales ...Comparable store net sales (decrease) increase(2) ...Cost of Sales ...Gross Profit ...Selling, General and...

  • Page 43
    ..., engineered hardwood, laminate, resilient vinyl, bamboo and cork. At December 31, 2015, we sold our products through 374 Lumber Liquidators stores in 46 states in the United States (''U.S.'') and in Canada, a call center, websites and catalogs. We believe we have achieved a reputation for offering...

  • Page 44
    ... to help our customers better understand the air quality in their homes. Refer to Other Matters for further discussion of the indoor air quality testing program. • • • Settlement of the Lacey Act Investigation Additionally, in conjunction with the Special Committee of the Board of Directors...

  • Page 45
    ... as wood look tile and butcher block countertops. We seek to ensure that these products are available to meet customer demand at attractive retail prices and train our store associates to be experts in the products we sell. We have devoted significant resources to identify opportunities and execute...

  • Page 46
    ... Stores Opened in Period ...Number of Stores Closed in Period ...Number of Stores Remodeled in Period(3) . Comparable stores(4): Customers invoiced(5) ...Net sales of stores operating for 13 to 36 months ...Net sales of stores operating for more than 36 months ...Net sales in markets with all stores...

  • Page 47
    ... all laminate product sourced from China during a large portion of 2015, and disruptions in our supply chain related to certain engineered product. The Company's average sale decreased as a result of a decrease in the average selling price of our products offset by slight increases in the volume of...

  • Page 48
    ... effect of the increase in net sales were attributable to the seven store locations serving communities recovering from the effects of Hurricane Sandy, store base expansion and the 2014 increase of $16.2 million in sales related to delivery and installation services, up from $16.1 million in 2013...

  • Page 49
    ..., commissions and benefits in 2014 increased primarily due to store base growth, corporate support, including global compliance, our test of installation services management, the start-up and operations of the West Coast distribution center and higher net cost of benefits. These expenses were...

  • Page 50
    ...products at an individual store location, in our distribution centers or in another facility where we control and monitor inspection. Merchandise inventories and available inventory per store in operation on December 31 were as follows: 2015 2014 (in thousands) 2013 Inventory âˆ' Available for Sale...

  • Page 51
    ... year ended December 31, 2015, the Company paid cash for interest in the amount of $0.2 million. The Credit Agreement contains a fixed charge coverage ratio covenant that becomes effective in the event that the Company's excess borrowing availability under the Revolving Credit Facility at any time...

  • Page 52
    ... sourced from China, to address customer questions about the air quality in their homes. Home air test kits were selected as a quick, effective way to measure the total level of formaldehyde in indoor air from all sources, not just from the ï¬,ooring. We retained Building Health Check, LLC (''BHC...

  • Page 53
    ... monitoring resources to review the work ï¬,ow process in connection with the testing program and to perform quality review services relating to the compilation and dissemination of testing results. In 2015, over 48,000 testing kits were sent to Lumber Liquidators customers through the program...

  • Page 54
    ... at the time the customer takes possession of the merchandise. We recognize service revenue, which consists primarily of installation revenue and freight charges for in-home delivery, when the service has been rendered. We report sales exclusive of sales taxes collected from customers and remitted...

  • Page 55
    ... future employee behavior. Had we arrived at different assumptions of stock price volatility or expected terms of our options, our stock-based compensation expense and results of operations could have been different. Loss Contingencies We are involved in various lawsuits, claims, investigations, and...

  • Page 56
    ... & Young LLP, Independent Registered Public Accounting Firm, on Internal Control over Financial Reporting ...Consolidated Balance Sheets as of December 31, 2015 and 2014 ...Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013 ...Consolidated Statements of Other...

  • Page 57
    ... also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Lumber Liquidators Holdings, Inc.'s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control-Integrated Framework issued...

  • Page 58
    ... Company Accounting Oversight Board (United States), the consolidated balance sheets of Lumber Liquidators Holdings, Inc. as of December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash ï¬,ows for each of the three years...

  • Page 59
    ...,867 9,693 1,625 $ 493,462 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable ...Customer Deposits and Store Credits Accrued Compensation ...Sales and Income Tax Liabilities ...Other Current Liabilities ...Total Current Liabilities ...Other Long-Term Liabilities ...Deferred...

  • Page 60
    Lumber Liquidators Holdings, Inc. Consolidated Statements of Operations (in thousands, except share data and per share amounts) 2015 Year Ended December 31, 2014 2013 Net Sales ...Cost of Sales ...Gross Profit ...Selling, General and Administrative Expenses Operating (Loss) Income ...Other Expense...

  • Page 61
    Lumber Liquidators Holdings, Inc. Consolidated Statements of Comprehensive Income (Loss) (in thousands) 2015 Year Ended December 31, 2014 2013 Net (Loss) Income ...Other Comprehensive (Loss) Income: Foreign Currency Translation Adjustments ...Total Other Comprehensive (Loss) Income ...Comprehensive...

  • Page 62
    Lumber Liquidators Holdings, Inc. Consolidated Statements of Stockholders' Equity (in thousands, except share data) Common Stock Shares Par Value Treasury...31, 2013 ...Stock-Based Compensation Expense ...Exercise of Stock Options . Excess Tax Benefits on Stock Option Exercises ...Release of ...

  • Page 63
    Lumber Liquidators Holdings, Inc. Consolidated Statements of Cash Flows (in thousands) 2015 Year Ended December 31, 2014 2013 Cash Flows from Operating Activities: Net (Loss) Income ...Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities: Depreciation and ...

  • Page 64
    ... metropolitan areas in 46 states and eight store locations in Canada at December 31, 2015. In addition to the store locations, the Company's products may be ordered, and customer questions/concerns addressed, through both its call center in Toano, Virginia, and its website, www.lumberliquidators.com...

  • Page 65
    ...31, 2015, in connection with changes in the executive management team and based on the most recent evaluation of the alternatives for disposal, which considered strategic and operational considerations including potential distractions these products could have on the Company's employees and business...

  • Page 66
    ... as acting chief executive officer. In connection with this and other management changes, the Company determined that it would refocus on its core business and it would not pursue an expansion into the tile ï¬,ooring business in the near term. In 2014, the Company had begun to sell tile ï¬,ooring...

  • Page 67
    ... laminate ï¬,ooring sourced from China, to address customer questions about the air quality in their homes. During the year ended December 31, 2015, over approximately 48,000 testing kits were sent to Lumber Liquidators customers through the program. In total, approximately 30,500 testing kits...

  • Page 68
    ... to its services provided. These limited warranties range from one to 100 years. Warranty reserves are based primarily on claims experience, sales history and other considerations, including payments made to satisfy customers for claims not directly related to the warranty on the Company's products...

  • Page 69
    ...40 5 to 25 3 to 10 1 to 15 The Company has operating leases for its stores, Corporate Headquarters, certain of its distribution facilities, supplemental office facilities and certain equipment. The lease agreements for certain stores and distribution facilities contain rent escalation clauses, rent...

  • Page 70
    ...beginning after December 15, 2018. Therefore, the amendments in ASU 2016-02 will become effective for the Company at the beginning of its 2019 fiscal year. The Company is currently assessing the impact of implementing the new guidance on its consolidated financial statements. When implemented, the...

  • Page 71
    ...expects to be entitled in exchange for those goods or services. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is not permitted. Therefore, the amendments in ASU...

  • Page 72
    ...$2,800 and $2,700 of letters of credit at December 31, 2015 and 2014, respectively. Note 5. Leases The Company has operating leases for its stores, Corporate Headquarters and West Coast distribution center, supplemental office facilities and certain equipment. The store location leases are operating...

  • Page 73
    Lumber Liquidators Holdings, Inc. Notes to Consolidated Financial Statements (amounts in thousands, except share data and per share amounts) Note 5. Leases âˆ' (continued) As of December 31, 2015, 2014 and 2013, the Company leased the Corporate Headquarters, which includes a store location and 30, ...

  • Page 74
    ... Program 650,759 225,027 184,252 16,999 103,329 176 In 2012, the Company's Board of Directors (''Board'') authorized the repurchase of up to $100,000 of the Company's common stock from time to time on the open market or in privately negotiated transactions. In January 2014, the Company's Board...

  • Page 75
    ...stock price and in 2013, also included the historical volatilities of companies included in a peer group that was selected by management whose shares or options are publicly available. The volatilities are estimated for a period of time equal to the expected term of the related option. The risk-free...

  • Page 76
    Lumber Liquidators Holdings, Inc. Notes to Consolidated Financial Statements (amounts in thousands, except share data and per share amounts) Note 7. Stock-Based Compensation âˆ' (continued) U.S. Treasury zero-coupon issues with an equivalent remaining term. The expected term of the options ...

  • Page 77
    Lumber Liquidators Holdings, Inc. Notes to Consolidated Financial Statements (amounts in thousands, except share data and per share amounts) Note 8. Income Taxes The components of income before income taxes were as follows: 2015 Year Ended December 31, 2014 2013 United States ...Foreign ...Total ...

  • Page 78
    ...(2,433) 30,775 $ 10,407 In both 2015 and 2014, the Canadian operations were in a cumulative loss position. As such, the Company has recorded a full valuation allowance on the net deferred tax assets in Canada. For the year ended December 31, 2015, the valuation allowance increased by $836 primarily...

  • Page 79
    ... 10. Commitments and Contingencies Government Investigations Lacey Act Related Matters On September 26, 2013, sealed search warrants were executed at the Company's corporate offices in Toano and Richmond, Virginia by the Department of Homeland Security's Immigration and Customs Enforcement and the...

  • Page 80
    ... review procedures in the second quarter of 2015, the Company determined that there were Lacey Act compliance concerns related to a limited amount of its engineered hardwood ï¬,ooring. As a result, the Company suspended sales of approximately $4,069 of this product pending further investigation...

  • Page 81
    ... 26, 2013, Gregg Kiken (''Kiken'') filed a securities class action lawsuit (the ''Kiken Lawsuit''), which was subsequently amended, in the United States District Court for the Eastern District of Virginia against the Company, its founder, former Chief Executive Officer and President, former Chief...

  • Page 82
    ... or about July 23, 2014, Global Community Monitor and Sunshine Park LLC (together, the ''Prop 65 Plaintiffs'') filed a lawsuit, which was subsequently amended, in the Superior Court of the State of California, County of Alameda, against the Company. In the amended complaint, the Prop 65 Plaintiffs...

  • Page 83
    ... purported class action lawsuit in the United States District Court for the Northern District of California alleging that the Morning Star bamboo ï¬,ooring (the ''Bamboo Product'') that the Company sells is defective. On February 13, 2015, Gold filed an amended complaint that added three additional...

  • Page 84
    ... Class Action Complaint in the Virginia Court on September 11, 2015. The complaint challenged the Company's labeling of its ï¬,ooring products and asserted claims under California, New York, Illinois, Florida and Texas law for fraudulent concealment, violation of consumer protection statutes...

  • Page 85
    ...the United States who purchased Defendant's Dream Home brand laminate ï¬,ooring products from Defendant for personal use in their homes,'' or, in the alternative, 32 statewide classes from California, North Carolina, Texas, New Jersey, Florida, Nevada, Connecticut, Iowa, Minnesota, Nebraska, Georgia...

  • Page 86
    ... Consolidated Cases On or about March 11, 2015, R. Andre Klein (''Klein'') filed a shareholder derivative suit in the United States District Court for the Eastern District of Virginia against the Company's directors at that time, as well as its Senior Vice President, Supply Chain, former Chief...

  • Page 87
    ... United States District Court for the Eastern District of Virginia against the Company's directors at that time, as well as its former Chief Merchandising Officer, former Chief Financial Officer, Senior Vice President, Supply Chain and its former Chief Executive Officer and President (collectively...

  • Page 88
    ... result from this action. McBride Matter On or about March 27, 2015, James Michael McBride (''McBride'') filed a shareholder derivative suit in the Circuit Court of the City of Williamsburg and County of James City, Virginia against the Company's directors at that time, as well as its former Chief...

  • Page 89
    ... sheet and in cost of sales in its second quarter 2015 consolidated financial statements. Beginning in July 2015, the Company began paying these rates on each applicable purchase. The third annual review of the AD and CVD rates was initiated in February 2015. In January 2016, the DOC issued non...

  • Page 90
    ... ...Net income per Common Share âˆ' Diluted ...Number of Stores Opened in Quarter ...Comparable store net sales (Decrease) Increase . (1) Includes pretax lower of cost or market inventory adjustments recorded for Chinese laminate and tile inventory of $4,002 in the Second Quarter and $22,160 in the...

  • Page 91
    ... income per Common Share âˆ' Diluted ...Number of Stores Opened in Quarter ...Comparable store net sales (Decrease) Increase . Note 12. Subsequent Events In February 2016, the Company paid settlement amounts totaling $6,200, as described in Note 10, under Lacey Act Related Matters. Due to a planned...

  • Page 92
    ... in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and the Interim Chief Financial Officer, as...

  • Page 93
    ... of the Company's principal executive and principal financial officer, conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2015 based on the framework and criteria established in Internal Control - Integrated Framework (2013) issued by...

  • Page 94
    ...during the year ended December 31, 2016 to ascertain whether they are designed and operating effectively to provide reasonable assurance that they will prevent or detect a material error in the Company's financial statements on a timely basis. Subject to the foregoing, management is working towards...

  • Page 95
    ...nitive proxy statement for our 2016 annual meeting of shareholders, which will be filed no later than 120 days after December 31, 2015. Code of Ethics We have a Code of Business Conduct and Ethics, which applies to all employees, officers and directors of Lumber Liquidators Holdings, Inc. and its...

  • Page 96
    ... as part of this annual report in Part II, Item 8. 1. Financial Statement Schedules. The following financial statement schedule is filed as part of this annual report under Schedule II - Analysis of Valuation and Qualifying Accounts for the years ended December 31, 2015, 2014 and 2013. All other...

  • Page 97
    Lumber Liquidators Holdings, Inc. Schedule II - Analysis of Valuation and Qualifying Accounts For the Years Ended December 31, 2015, 2014 and 2013 (in thousands) Balance Beginning of Year Additions Charged to Cost and Expenses Deductions(1) Other Balance End of Year For the Year Ended December 31...

  • Page 98
    ..., thereunto duly authorized on February 29, 2016. LUMBER LIQUIDATORS HOLDINGS, INC. (Registrant) By: /s/ John M. Presley John M. Presley Chief Executive Officer Pursuant to the requirements of the Securities and Exchange Act of 1934, this report has been signed below by the following persons on...

  • Page 99
    ...fied Employee Stock Option Agreement, effective October 18, 2006 (filed as Exhibit 10.07 to the Company's Registration Statement on Form S-1, filed April 23, 2007 (File No. 333-142309), and incorporated by reference) Lease by and between ANO LLC and Lumber Liquidators (relating to Toano facility...

  • Page 100
    ... M. Lynch (filed as Exhibit 10.1 to the Company's current report on Form 8-K, filed December 21, 2011 (File No. 005-83765), and incorporated by reference) Second Amended and Restated Credit Agreement, dated as of April 24, 2015, among Lumber Liquidators Holdings, Inc. and its domestic subsidiaries...

  • Page 101
    ...Order of Forfeiture between Lumber Liquidators, Inc. and the Department of Justice (filed as Exhibit 10.2 to the Company's current report on Form 8-K, filed October 7, 2015 (File No. 001-33767) and incorporated by reference) Option Award Agreement with John M. Presley, dated November 9, 2015 Offer...

  • Page 102
    ... 2002 Certification of Principal Executive Officer and Principal Financial Officer of Lumber Liquidators Holdings, Inc. pursuant to Section 906 of the Sarbanes-Oxley act of 2002 The following financial statements from the Company's Form 10-K for the year ended December 31, 2015, formatted in XBRL...

  • Page 103
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  • Page 106
    ... Boulevard • 954.922.3120 Florida City - 33550 SW Dixie Highway • 786.838.0638 Fort Myers - 5020 South Cleveland Ave • 239.332.2829...800 S Clearview Pkwy • 504.733.6230 Shreveport - 343 Bert Kouns Industrial Loop • 318.402.0992 Slidell - 2170 Gause Boulevard West • 985.288.1890 CALIFORNIA...

  • Page 107
    ....429.9465 Salt Lake City - 389 West 1830 South, #800 • 801.886.8878 NEW JERSEY Cherry Hill - 1205 Warren Ave • 856.324.4450 East Brunswick - 2 Claire Rd, Suite 2C • 732.387.4274 Fairfield - 311 RT-46, Unit F • 862.881.4606 Hamilton - 8 Commerce Way, Suite 110 • 609.588.8082 Hillsborough...

  • Page 108
    ... Great floor at a great price!" Tina, New York "We installed this solid hardwood in the living room, dining room, entryway, and kitchen - almost 900 sq ft. Although we looked other places, we chose Lumber Liquidators because they had the best quality for the price...Customer service was 5 stars from...