Lumber Liquidators 2015 Annual Report Download - page 11

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENT
This report includes statements of the Company’s expectations, intentions, plans and beliefs that
constitute ‘‘forward-looking statements’’ within the meanings of the Private Securities Litigation Reform Act
of 1995. These statements, which may be identified by words such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expects,’’
‘‘intends,’’ ‘‘plans,’’ ‘‘anticipates,’’ ‘‘believes,’’ ‘‘thinks,’’ ‘‘estimates,’’ ‘‘seeks,’’ ‘‘predicts,’’ ‘‘could,’’
‘‘projects,’’ ‘‘potential’’ and other similar terms and phrases, are based on the beliefs of the Company’s
management, as well as assumptions made by, and information currently available to, the Company’s
management as of the date of such statements. These statements are subject to risks and uncertainties, all of
which are difficult to predict and many of which are beyond the Company’s control. Forward-looking
statements in this report may include, without limitation, statements regarding legal matters and settlement
discussions, the terms of and compliance with the Plea Agreement with the Department of Justice (the ‘‘Plea
Agreement’’) and the associated environmental compliance plan (the ‘‘Compliance Plan’’), the Company’s
ability to borrow under its asset-backed revolving credit facility, elevated levels of legal and professional fees,
elevated levels of payroll and stock-based compensation expense, sales growth, comparable store net sales,
number of stores providing installation services, impact of cannibalization, impact of inflation, price changes,
inventory availability and inventory per store, inventory valuation, earnings performance, stock-based
compensation expense, margins, return on invested capital, advertising costs, costs to administer the
Company’s indoor air quality testing program, intention to conduct additional investigation and reviews in
connection with certain consumers’ indoor 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 to not be subject to anti-dumping and countervailing duties, ultimate resolution of governmental
investigations, and store openings and remodels.
The Company’s actual results could differ materially from those projected in or contemplated by the
forward-looking statements as a result of potential risks, uncertainties and other factors including, but not
limited to, changes in general economic and financial conditions, such as the rate of unemployment, consumer
access to credit, and interest rate; the volatility in mortgage rates; the legislative/regulatory climate; political
unrest in the countries of the Company’s suppliers; the ability to retain and motivate Company employees; the
availability of sufficient suitable hardwood; the impact on the Company if the Company is unable to maintain
quality control over its products; the cost and effect on the Company’s reputation of, and consumers’
purchasing decisions in connection with, unfavorable allegations surrounding the product quality of the
Company’s laminates sourced from China; the Company’s suppliers’ ability to meet its quality assurance
requirements; disruption in the Company’s suppliers’ abilities to supply needed inventory; the impact on the
Company’s business of its expansion of laminate products sourced from Europe and North America and the
flooring industry’s demand for product from these regions; disruptions or delays in the production, shipment,
delivery or processing through ports of entry; the strength of the Company’s competitors and their ability to
increase their market share; slower growth in personal income; the number of customers requesting and cost
associated with addressing the Company’s indoor air quality testing program; the ability to collect necessary
additional information from applicable customers in connection with indoor air quality test results; changes in
business and consumer spending and the demand for the Company’s products; changes in transportation costs;
the rate of growth of residential remodeling and new home construction; the Company’s ability to offset the
effects of the rate of inflation, if higher than expected; the demand for and profitability of installation services;
changes in the scope or rates of any antidumping or countervailing duty rates applicable to the Company’s
products; the duration, costs and outcome of pending or potential litigation or governmental investigations;
ability to successfully and timely implement the Compliance Plan; ability to make timely payments pursuant
to the terms of the Plea Agreement; ability to borrow under its asset-backed revolving credit facility; ability to
reach an appropriate resolution in connection with the governmental investigations; and inventory levels. The
Company specifically disclaims any obligation to update these statements, which speak only as of the dates on
which such statements are made, except as may be required under the federal securities laws. These risks and
other factors include those listed in this Item 1A. ‘‘Risk Factors,’’ and elsewhere in this report.
References to ‘‘we,’’ ‘‘our,’’ ‘‘us,’’ ‘‘the Company’’ and ‘‘Lumber Liquidators’’ generally refers to Lumber
Liquidators Holdings, Inc. and its consolidated subsidiaries collectively and, where applicable, individually.
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