Lumber Liquidators 2015 Annual Report Download - page 28

price of our common stock. The price of our common stock could fluctuate based upon factors that have little
or nothing to do with our company or its performance.
Our quarterly operating results may fluctuate significantly and could fall below the expectations of research
analysts and investors due to various factors.
Our quarterly operating results may fluctuate significantly because of various factors, including:
• changes in comparable store net sales and customer transactions, including as a result of declining
consumer confidence or the introduction of new products;
• the timing of new store openings and related net sales and expenses;
• profitability and performance of our stores;
• the timing of remodels and relocations of existing stores and related net sales and expenses;
• the impact of inclement weather, natural disasters and other calamities;
• variations in general economic conditions;
• unfavorable customer reactions to allegations regarding the safety of our products, the impact of
litigation and/or government investigations to which we are subject, as well as any payments,
judgments or other losses 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;
• 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.
Our anti-takeover defense provisions may cause our common stock to trade at market prices lower than it
might absent such provisions.
Our certificate of incorporation and bylaws contain several provisions that may make it more difficult or
expensive for a third party to acquire control of us without the approval of our board of directors. These
provisions include a staggered board, the availability of ‘‘blank check’’ preferred stock, provisions restricting
stockholders from calling a special meeting of stockholders or requiring one to be called or from taking action
by written consent and provisions that set forth advance notice procedures for stockholders’ nominations of
directors and proposals of topics for consideration at meetings of stockholders. Our certificate of incorporation
also provides that Section 203 of the Delaware General Corporation Law, which relates to business
combinations with interested stockholders, applies to us. These provisions may delay, prevent or deter a
merger, acquisition, tender offer, proxy contest or other transaction that might otherwise result in our
stockholders receiving a premium over the market price for their common stock. In addition, these provisions
may cause our common stock to trade at a market price lower than it might absent such provisions.
Risk Related to Accounting Standards
Changes in accounting standards and subjective assumptions, estimates and judgments by management
related to complex accounting matters could significantly affect our financial results.
Generally accepted accounting principles and related accounting pronouncements, implementation
guidelines and interpretations with regard to a wide range of matters that are relevant to our business,
including but not limited to, consolidation, revenue recognition, stock-based compensation, lease accounting,
sales returns reserves, inventories, self-insurance, income taxes, unclaimed property laws and litigation, are
highly complex and involve many subjective assumptions, estimates and judgments by our management.
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