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     141  0 Kommentare LL Flooring Reports Fourth Quarter and Full Year 2023 Financial Results

    LL Flooring Holdings, Inc. (“LL Flooring” or “Company”) (NYSE: LL), a leading specialty retailer of hard and soft surface flooring in the U.S., today announced financial results for the fourth quarter and year ended December 31, 2023.

    "Fourth quarter business conditions remain difficult as we continue to experience the impact of weakness in existing home sales and the corresponding softness in the home improvement industry. We reported comparable store sales down 19.6% as we saw continued declines in traffic and lower average project sizes for our consumer and pro customers. Despite external headwinds, we are focused on our ability to deliver the high-touch service of an independent flooring retailer combined with the value, assortment, and convenience of a national brand,” said President and Chief Executive Officer Charles Tyson.

    Tyson continued "Leading economic indicators suggest that home improvement spending will continue to be challenged through at least the first half of 2024, however, the long-term fundamentals of our business are strong due to aging housing stock, increased household formation and rising home values. To that end, we remain focused on executing on our brand transformation and on our strategic initiatives which we believe will drive revenue growth, increase brand awareness, spur product innovation and deliver a consistent customer experience. We are also gaining traction on several of our operating strategies, focusing on the customer experience, driving and improving NPS scores, innovating products including the execution of our carpet initiatives, and maintaining a strong focus on improving operational efficiencies and working capital management. All of which, gives us confidence in achieving long-term growth.”

    Fourth Quarter Financial Highlights

    • Net sales decreased 19.7% to $211.8 million compared to the same period last year, driven by a decrease in transaction count and average transaction size reflecting lower spend by consumers and Pros.
    • Total comparable store sales decreased 20.2% versus the same period last year.
    • Gross margin increased 270 basis points to 38.6% and Adjusted gross margin1 increased 260 basis points to 38.3% compared to the same period last year, primarily driven by vendor cost outs and lower transportation costs, partially offset by headwinds from higher vinyl sourcing costs as we increased sourcing from domestic vendors.
    • SG&A as a percentage of net sales increased 430 basis points to 46.8% compared to the fourth quarter of last year and Adjusted SG&A1 as a percentage of net sales increased 800 basis points to 46.8% compared to the fourth quarter of last year. The increases in both SG&A and Adjusted SG&A as a percentage of net sales were due primarily to expense deleverage from lower sales volumes; Adjusted SG&A spending decreased $3.1 million primarily due to restructuring activities and lower advertising spend.
    • Operating margin loss increased 170 basis points to 8.3% compared to the fourth quarter of last year. Adjusted operating margin loss1 increased 550 basis points to 8.6% compared to the fourth quarter of last year.
    • Loss per Diluted Share increased $0.09 to $0.62 compared to the fourth quarter of last year. Adjusted Loss per Diluted Share1 increased $0.35 to $0.64 compared to the fourth quarter of last year.
    • We’ve continued to evaluate our store portfolio, resulting in the closure of seven stores during the fourth quarter. We also opened one new store, bringing our total store portfolio to 437 stores as of December 31, 2023.

    1Please refer to the “Non-GAAP and Other Information” section and the GAAP to non-GAAP reconciliation tables below for more information.

    Full Year Financial Highlights

    • Net sales decreased 18.5% to $904.7 million compared to last year, driven by a decrease in transaction count and average transaction size reflecting lower spend by consumers and Pros.
    • Total comparable store sales decreased 19.6% versus last year.
    • Gross margin decreased 40 basis points to 35.7% compared to 2022 and Adjusted gross margin1 increased 140 basis points to 37.5% compared to 2022. Gross margin decreased due to unfavorable antidumping duty rate changes and customs detentions on certain vinyl flooring products from Asia. The increase in adjusted gross margin1 was primarily due to lower vendor and transportation costs.
    • SG&A as a percentage of net sales increased 740 basis points to 44.6% compared to last year and adjusted SG&A1 increased 820 basis points to 44.5% compared to last year. Both SG&A and Adjusted SG&A increased as a percentage of net sales primarily due to expense deleverage on lower net sales; Adjusted SG&A spend remained relatively flat compared to 2022, as the cost savings from our restructuring activities and lower spend on advertising were offset by higher occupancy costs associated with the addition of a third distribution center, rents of new stores and lease renewals at higher rental rates, non-recurring professional services and IT spend associated with the rollout of our CRM.
    • Operating margin loss increased 780 basis points to 8.9% compared to last year. Adjusted operating margin loss1 increased 680 basis points to 7.0% compared to last year.
    • Loss per Diluted Share increased $3.17 to $3.59 compared to last year. Adjusted Loss per Diluted Share1 increased $2.84 to $3.01 compared to last year.
    • During 2023, the Company opened three new stores and closed eight, bringing total stores to 437 as of December 31, 2023.

    1Please refer to the “Non-GAAP and Other Information” section and the GAAP to non-GAAP reconciliation tables below for more information.

    Cash Flow & Liquidity

    As of December 31, 2023, the Company had liquidity of $118.2 million, consisting of excess availability under its Credit Agreement of $109.4 million, and cash and cash equivalents of $8.8 million.

    During 2023, the Company generated $21.3 million of cash flows from operating activities, primarily driven by our effective inventory management and our cost savings initiatives implemented by management.

    2024 Business Outlook

    The Company continues to navigate uncertainty in the macroeconomic environment due to low consumer confidence, inflation, a volatile interest and mortgage rate environment and continued declines in existing home sales. As a result, the Company is not providing financial guidance at this time.

    The Company is, however, providing the following commentary. The Company expects:

    • In terms of our sales outlook for 2024, while we strongly believe that our strategic initiatives of our CRM and Pro initiatives will improve the customer experience and help drive traffic to stores, our visibility is limited as to when the macroeconomic environment will normalize.
    • Adjusted gross margins1 are expected to maintain year-over-year, driven primarily by potential reductions in transportation costs. The Company will continue to monitor the competitive pricing environment to inform its pricing and promotion strategies.
    • SG&A dollar spend and SG&A spend as a percentage of sales are expected to increase year-over-year, primarily due to lower net sales as we continue to invest in our strategic initiatives while navigating a dynamic macroeconomic environment.
    • Capital expenditures of approximately $15 million in 2024, primarily related to our strategic initiatives such as the rollout of Carpet across our store portfolio, and maintenance capital investments.

    1Please refer to the “Non-GAAP and Other Information” section and the GAAP to non-GAAP reconciliation tables below for more information.

    Learn More about LL Flooring

    Conference Call and Webcast Information

    The Company plans to host a conference call and audio webcast on March 4, 2024, at 8:00 a.m. Eastern Time. The conference may be accessed by dialing (833) 470-1428 or (929) 526-1599 and entering pin number 918613. You may also use this website https://events.q4inc.com/attendee/638357847 in lieu of speaking to an operator. A replay will be available approximately two hours after the call ends through March 11, 2024 and may be accessed by dialing (929) 458-6194 and entering pin number 285260. The live conference call and replay can also be accessed via audio webcast at the Investor Relations section of the Company's website, www.LLFlooring.com.

    About LL Flooring

    LL Flooring is one of the country’s leading specialty retailers of hard-surface flooring with more than 430 stores nationwide. The Company seeks to offer the best customer experience online and in stores, with more than 500 varieties of hard and soft surface floors featuring a range of quality styles and on-trend designs. LL Flooring's online tools also help empower customers to find the right solution for the space they've envisioned. LL Flooring's extensive selection includes waterproof hybrid resilient, waterproof vinyl plank, solid and engineered hardwood, laminate, bamboo, porcelain tile, and cork, with a wide range of flooring enhancements and accessories to complement. LL Flooring stores are staffed with flooring experts who provide advice, Pro partnership services and installation options for all of LL Flooring's products, the majority of which is in stock and ready for delivery.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    This press release 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,” "assumes," “believes,” “thinks,” “estimates,” “seeks,” “predicts,” “could,” “projects,” "targets," “potential,” "will likely result," 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.

    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. For a discussion of the risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see the “Risk Factors” section of the Company’s annual report on Form 10-K for the year ended December 31, 2023, and the Company’s other filings with the Securities and Exchange Commission (“SEC”). Such filings are available on the SEC’s website at www.sec.gov and the Company’s Investor Relations website at https://investors.llflooring.com.

    Non-GAAP and Other Information

    To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses the following non-GAAP financial measures in the body of this press release and in the supplemental tables at the end of the release: (i) Adjusted Gross Profit; (ii) Adjusted Gross Margin; (iii) Adjusted SG&A; (iv) Adjusted SG&A as a percentage of net sales; (v) Adjusted Operating Income (Loss); (vi) Adjusted Operating Margin (Loss); (vii) Adjusted Other Expense; (viii) Adjusted Other Expense as a percentage of net sales; (ix) Adjusted Earnings (Loss); and (x) Adjusted Earnings (Loss) per Diluted Share. These non-GAAP financial measures should be viewed in addition to, and not in lieu of, financial measures calculated in accordance with GAAP. These supplemental measures may vary from, and may not be comparable to, similarly titled measures by other companies.

    The non-GAAP financial measures are presented because we believe the non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends related to our financial condition and results of operations, These measures provide an additional tool for investors to use in evaluating our ongoing operating performance, and management, in certain cases, uses them to determine incentive compensation. The presented non-GAAP financial measures exclude items that management does not believe reflect our core operating performance, which include regulatory and legal settlements and associated legal and operating costs, changes in antidumping and countervailing duties, and goodwill impairment, as such items are outside of our control or due to their inherent unusual, non-operating, unpredictable, non-recurring, or non-cash nature. Reconciliations of these non-GAAP financial measures are provided on the pages that follow.

    Reconciliations of forward-looking non-GAAP measures are not provided because the company is unable to provide such reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of certain items, including, but not limited to, the timing and significance of antidumping rate changes or vinyl charges.

    (Tables Follow)

    LL Flooring Holdings, Inc.

    Consolidated Balance Sheets

    (in thousands)

     

     

     

    December 31,

     

     

    December 31,

     

     

     

    2023

     

     

    2022

     

    Assets

     

     

     

     

     

     

    Current Assets:

     

     

     

     

     

     

    Cash and Cash Equivalents

     

    $

    8,772

     

     

    $

    10,800

     

    Merchandise Inventories, Net

     

     

    265,290

     

     

     

    332,296

     

    Prepaid Expenses

     

     

    5,658

     

     

     

    9,054

     

    Other Current Assets

     

     

    8,473

     

     

     

    17,598

     

    Total Current Assets

     

     

    288,193

     

     

     

    369,748

     

    Property and Equipment, Net

     

     

    100,490

     

     

     

    101,758

     

    Operating Lease Right-of-Use Assets

     

     

    141,210

     

     

     

    123,172

     

    Deferred Tax Assets, Net

     

     

     

     

     

    13,697

     

    Other Assets

     

     

    5,681

     

     

     

    5,578

     

    Total Assets

     

    $

    535,574

     

     

    $

    613,953

     

     

     

     

     

     

     

     

    Liabilities and Stockholders’ Equity

     

     

     

     

     

     

    Current Liabilities:

     

     

     

     

     

     

    Accounts Payable

     

    $

    67,195

     

     

    $

    47,733

     

    Customer Deposits and Store Credits

     

     

    39,468

     

     

     

    43,767

     

    Accrued Compensation

     

     

    6,915

     

     

     

    9,070

     

    Sales and Income Tax Liabilities

     

     

    2,103

     

     

     

    3,574

     

    Accrual for Legal Matters and Settlements

     

     

    15,344

     

     

     

    22,159

     

    Operating Lease Liabilities - Current

     

     

    31,815

     

     

     

    34,509

     

    Other Current Liabilities

     

     

    24,382

     

     

     

    19,712

     

    Total Current Liabilities

     

     

    187,222

     

     

     

    180,524

     

    Other Long-Term Liabilities

     

     

    8,391

     

     

     

    6,162

     

    Operating Lease Liabilities - Long-Term

     

     

    116,651

     

     

     

    99,186

     

    Credit Agreement

     

     

    66,000

     

     

     

    72,000

     

    Total Liabilities

     

     

    378,264

     

     

     

    357,872

     

     

     

     

     

     

     

     

    Commitments and Contingencies

     

     

     

     

     

     

     

     

     

     

     

     

     

    Stockholders’ Equity:

     

     

     

     

     

     

    Common Stock ($0.001 par value; 35,000 shares authorized; 30,983 and 30,758 shares issued and 28,849 and 28,695 shares outstanding at December 31, 2023 and 2022, respectively)

     

     

    31

     

     

     

    31

     

    Treasury Stock, at cost (2,134 and 2,063 shares, respectively)

     

     

    (153,617

    )

     

     

    (153,331

    )

    Additional Capital

     

     

    236,848

     

     

     

    231,839

     

    Retained Earnings

     

     

    74,048

     

     

     

    177,542

     

    Total Stockholders’ Equity

     

     

    157,310

     

     

     

    256,081

     

    Total Liabilities and Stockholders’ Equity

     

    $

    535,574

     

     

    $

    613,953

     

    LL Flooring Holdings, Inc.

    Consolidated Statements of Operations and Comprehensive (Loss) Income

    (in thousands, except per share amounts)

     

     

     

    Three Months Ended
    December 31,

     

     

    Year Ended December 31,

     

     

     

    2023

     

     

    2022

     

     

    2023

     

     

    2022

     

     

    2021

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net Sales

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net Merchandise Sales

     

    $

    183,059

     

     

    $

    226,883

     

     

    $

    779,326

     

     

    $

    957,927

     

     

    $

    993,943

     

    Net Services Sales

     

     

    28,721

     

     

     

    36,986

     

     

     

    125,420

     

     

     

    152,752

     

     

     

    158,401

     

    Total Net Sales

     

     

    211,780

     

     

     

    263,869

     

     

     

    904,746

     

     

     

    1,110,679

     

     

     

    1,152,344

     

    Cost of Sales

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cost of Merchandise Sold

     

     

    103,919

     

     

     

    139,733

     

     

     

    477,495

     

     

     

    589,719

     

     

     

    588,166

     

    Cost of Services Sold

     

     

    26,187

     

     

     

    29,385

     

     

     

    104,538

     

     

     

    119,797

     

     

     

    124,136

     

    Total Cost of Sales

     

     

    130,106

     

     

     

    169,118

     

     

     

    582,033

     

     

     

    709,516

     

     

     

    712,302

     

    Gross Profit

     

     

    81,674

     

     

     

    94,751

     

     

     

    322,713

     

     

     

    401,163

     

     

     

    440,042

     

    Selling, General and Administrative Expenses

     

     

    99,205

     

     

     

    112,080

     

     

     

    403,499

     

     

     

    412,885

     

     

     

    387,356

     

    Operating (Loss) Income

     

     

    (17,531

    )

     

     

    (17,329

    )

     

     

    (80,786

    )

     

     

    (11,722

    )

     

     

    52,686

     

    Other Expense

     

     

    1,082

     

     

     

    986

     

     

     

    9,307

     

     

     

    1,816

     

     

     

    (104

    )

    (Loss) Income Before Income Taxes

     

     

    (18,613

    )

     

     

    (18,315

    )

     

     

    (90,093

    )

     

     

    (13,538

    )

     

     

    52,790

     

    Income Tax Expense (Benefit)

     

     

    (668

    )

     

     

    (3,235

    )

     

     

    13,401

     

     

     

    (1,457

    )

     

     

    11,092

     

    Net (Loss) Income and Comprehensive (Loss) Income

     

    $

    (17,945

    )

     

    $

    (15,080

    )

     

    $

    (103,494

    )

     

    $

    (12,081

    )

     

    $

    41,698

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net (Loss) Income per Common Share—Basic

     

    $

    (0.62

    )

     

    $

    (0.53

    )

     

    $

    (3.59

    )

     

    $

    (0.42

    )

     

    $

    1.44

     

    Net (Loss) Income per Common Share—Diluted

     

    $

    (0.62

    )

     

    $

    (0.53

    )

     

    $

    (3.59

    )

     

    $

    (0.42

    )

     

    $

    1.41

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted Average Common Shares Outstanding:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Basic

     

     

    28,845

     

     

     

    28,691

     

     

     

    28,806

     

     

     

    28,860

     

     

     

    29,041

     

    Diluted

     

     

    28,845

     

     

     

    28,691

     

     

     

    28,806

     

     

     

    28,860

     

     

     

    29,525

     

    LL Flooring Holdings, Inc.

    Condensed Consolidated Statements of Cash Flows

    (in thousands)

     

     

     

    Year Ended December 31,

     

     

     

    2023

     

     

    2022

     

     

     

    2021

     

    Cash Flows from Operating Activities:

     

     

     

     

     

     

     

     

     

     

    Net (Loss) Income

     

    $

    (103,494

    )

     

    $

    (12,081

    )

     

     

    $

    41,698

     

    Adjustments to Reconcile Net (Loss) Income:

     

     

     

     

     

     

     

     

     

     

    Depreciation and Amortization

     

     

    18,647

     

     

     

    18,410

     

     

     

     

    18,833

     

    Impairment on Long-Lived Assets

     

     

    1,316

     

     

     

     

     

     

     

     

    Impairment of Goodwill

     

     

     

     

     

    9,693

     

     

     

     

     

    Deferred Income Taxes Provision

     

     

    13,979

     

     

     

    (2,361

    )

     

     

     

    276

     

    Income on Redeemed or Expired Vouchers for Legal Settlements

     

     

    (2,491

    )

     

     

    (1,300

    )

     

     

     

    (1,676

    )

    Stock-Based Compensation Expense

     

     

    5,009

     

     

     

    3,738

     

     

     

     

    5,113

     

    Provision for Inventory Obsolescence Reserves

     

     

    3,469

     

     

     

    1,615

     

     

     

     

    2,345

     

    Antidumping Adjustments

     

     

    353

     

     

     

    (1,036

    )

     

     

     

    (6,279

    )

    (Gain) Loss on Disposal of Fixed Assets

     

     

    27

     

     

     

    (2

    )

     

     

     

    44

     

    Changes in Operating Assets and Liabilities:

     

     

     

     

     

     

     

     

     

     

    Merchandise Inventories

     

     

    61,243

     

     

     

    (81,833

    )

     

     

     

    (15,104

    )

    Accounts Payable

     

     

    17,254

     

     

     

    (16,595

    )

     

     

     

    (8,538

    )

    Customer Deposits and Store Credits

     

     

    (4,299

    )

     

     

    (23,296

    )

     

     

     

    5,674

     

    Tariff Recovery Receivable

     

     

     

     

     

    36

     

     

     

     

    4,078

     

    Prepaid Expenses and Other Current Assets

     

     

    13,758

     

     

     

    (2,968

    )

     

     

     

    700

     

    Accrued Compensation

     

     

    (2,156

    )

     

     

    (1,058

    )

     

     

     

    (5,219

    )

    Accrual for Legal Matters and Settlements

     

     

    543

     

     

     

    303

     

     

     

     

    7,773

     

    Payments for Legal Matters and Settlements

     

     

    (345

    )

     

     

    (8,148

    )

     

     

     

    (101

    )

    Deferred Rent Payments

     

     

    (187

    )

     

     

    (157

    )

     

     

     

    (2,315

    )

    Deferred Payroll Taxes

     

     

     

     

     

    (2,585

    )

     

     

     

    (2,542

    )

    Other Assets and Liabilities

     

     

    (1,341

    )

     

     

    2,916

     

     

     

     

    (6,090

    )

    Net Cash Provided by (Used in) Operating Activities

     

     

    21,285

     

     

     

    (116,709

    )

     

     

     

    38,670

     

    Cash Flows from Investing Activities:

     

     

     

     

     

     

     

     

     

     

    Purchases of Property and Equipment

     

     

    (17,029

    )

     

     

    (22,048

    )

     

     

     

    (19,443

    )

    Other Investing Activities

     

     

    2

     

     

     

    65

     

     

     

     

    71

     

    Net Cash Used in Investing Activities

     

     

    (17,027

    )

     

     

    (21,983

    )

     

     

     

    (19,372

    )

    Cash Flows from Financing Activities:

     

     

     

     

     

     

     

     

     

     

    Borrowings on Credit Agreement

     

     

    306,000

     

     

     

    289,500

     

     

     

     

     

    Payments on Credit Agreement

     

     

    (312,000

    )

     

     

    (217,500

    )

     

     

     

    (101,000

    )

    Common Stock Repurchased

     

     

    (286

    )

     

     

    (7,994

    )

     

     

     

    (2,360

    )

    Other Financing Activities

     

     

     

     

     

    297

     

     

     

     

    (690

    )

    Net Cash (Used In) Provided by Financing Activities

     

     

    (6,286

    )

     

     

    64,303

     

     

     

     

    (104,050

    )

    Net Decrease in Cash and Cash Equivalents

     

     

    (2,028

    )

     

     

    (74,389

    )

     

     

     

    (84,752

    )

    Cash and Cash Equivalents, Beginning of Period

     

     

    10,800

     

     

     

    85,189

     

     

     

     

    169,941

     

    Cash and Cash Equivalents, End of Period

     

    $

    8,772

     

     

    $

    10,800

     

     

     

    $

    85,189

     

     

     

     

     

     

     

     

     

     

     

     

    Supplemental Disclosure of Non-Cash Operating and Financing Activities:

     

     

     

     

     

     

     

     

     

     

    Relief of Inventory for Vouchers Redeemed for Legal Settlements

     

    $

    2,294

     

     

    $

    2,307

     

     

     

    $

    2,783

     

    Tenant Improvement Allowance for Leases

     

     

    (196

    )

     

     

    (1,155

    )

     

     

     

    (1,230

    )

     

    LL Flooring Holdings, Inc.

    GAAP to Non-GAAP Reconciliation

    (in thousands, except percentages)

    Items impacting gross margin with comparisons to the prior-year periods include:

     

    Three Months Ended December 31,

     

     

    Year Ended December 31,

     

     

    2023

     

     

    2022

     

     

    2023

     

     

    2022

     

     

    $

     

     

    % of Sales

     

     

    $

     

     

    % of Sales

     

     

    $

     

     

    % of
    Sales

     

     

    $

     

     

    % of
    Sales

     

     

    (in thousands, except percentage data)

     

    Gross Profit/Margin, as reported (GAAP)

    $

    81,674

     

     

     

    38.6

    %

     

    $

    94,751

     

     

     

    35.9

    %

     

    $

    322,713

     

     

     

    35.7

    %

     

    $

    401,163

     

     

     

    36.1

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Vinyl Charges1

     

    (701

    )

     

     

    (0.3

    )%

     

     

     

     

     

     

     

     

    5,426

     

     

     

    0.6

    %

     

     

     

     

     

    %

    Antidumping and Countervailing Adjustments2

     

    95

     

     

     

     

     

     

    (564

    )

     

     

    (0.2

    )%

     

     

    10,809

     

     

     

    1.2

    %

     

     

    413

     

     

     

    0.0

    %

    Adjustment Items Subtotal

     

    (606

    )

     

     

    (0.3

    )%

     

     

    (564

    )

     

     

    (0.2

    )%

     

     

    16,235

     

     

     

    1.8

    %

     

     

    413

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Adjusted Gross Profit/Margin (non-GAAP measures)

    $

    81,068

     

     

     

    38.3

    %

     

    $

    94,187

     

     

     

    35.7

    %

     

    $

    338,948

     

     

     

    37.5

    %

     

    $

    401,576

     

     

     

    36.1

    %

    1

    This amount represents costs related to CBP detention on flooring products that contain PVC as a consequence of the UFLPA.

    2

    This amount represents net antidumping and countervailing (income)/expense associated with applicable prior-year shipments of engineered hardwood from China.

    Items impacting SG&A with comparisons to the prior-year periods include:

     

    Three Months Ended December 31,

     

     

    Year Ended December 31,

     

     

    2023

     

     

    2022

     

     

    2023

     

     

    2022

     

     

    $

     

     

    % of
    Sales

     

     

    $

     

     

    % of
    Sales

     

     

    $

     

     

    % of
    Sales

     

     

    $

     

     

    % of
    Sales

     

     

    (in thousands, except percentage data)

     

    SG&A, as reported (GAAP)

    $

    99,205

     

     

     

    46.8

    %

     

    $

    112,080

     

     

     

    42.5

    %

     

    $

    403,499

     

     

     

    44.6

    %

     

    $

    412,885

     

     

     

    37.2

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Recovery from Legal Matters and Settlements1

     

     

     

     

    %

     

     

     

     

     

    %

     

     

     

     

     

    %

     

     

    (150

    )

     

     

    %

    Legal and Professional Fees2

     

    (36

    )

     

     

    %

     

     

     

     

     

    %

     

     

    886

     

     

     

    0.1

    %

     

     

     

     

     

    %

    Goodwill Impairment Charge3

     

     

     

     

    %

     

     

    9,693

     

     

     

    3.7

    %

     

     

     

     

     

    0.0

    %

     

     

    9,693

     

     

     

    0.9

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Adjusted SG&A (a non-GAAP measure)

    $

    99,241

     

     

     

    46.8

    %

     

    $

    102,387

     

     

     

    38.8

    %

     

    $

    402,613

     

     

     

    44.5

    %

     

    $

    403,342

     

     

     

    36.3

    %

    1.

    The 2022 amount represents insurance recovery related to the Gold Litigation recorded in the third quarter of 2022. This item is described more fully in Item 8, Note 10 to the consolidated financial statements filed in the December 31, 2022 10-K.

    2.

    This amount represents charges to earnings related to our defense of certain significant legal actions during the period. This does not include all legal costs incurred by the Company.

    3.

    This amount represents an impairment charge resulting from the Company's evaluation of goodwill during the fourth quarter of 2022. This item is described more fully in Item 8, Note 3 to the consolidated financial statements filed in the December 31, 2022 10-K.

    LL Flooring Holdings, Inc.

    GAAP to Non-GAAP Reconciliation

    (in thousands, except percentages)

    Items impacting operating income and operating margin with comparisons to the prior-year periods include:

     

    Three Months Ended December 31,

     

     

    Year Ended December 31,

     

     

    2023

     

     

    2022

     

     

    2023

     

     

    2022

     

     

    $

     

     

    % of Sales

     

     

    $

     

     

    % of Sales

     

     

    $

     

     

    % of Sales

     

     

    $

     

     

    % of Sales

     

     

    (in thousands, except percentage data)

     

    Operating Loss, as reported (GAAP)

    $

    (17,531

    )

     

     

    (8.3

    )%

     

    $

    (17,329

    )

     

     

    (6.6

    )%

     

    $

    (80,786

    )

     

     

    (8.9

    )%

     

    $

    (11,722

    )

     

     

    (1.1

    )%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Gross Profit/Margin Adjustment Items:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Vinyl Charges1

     

    (701

    )

     

     

    (0.3

    )%

     

     

     

     

     

    %

     

     

    5,426

     

     

     

    0.6

    %

     

     

     

     

     

    %

    Antidumping and Countervailing Adjustments2

     

    95

     

     

     

    0.0

    %

     

     

    (564

    )

     

     

    (0.2

    )%

     

     

    10,809

     

     

     

    1.2

    %

     

     

    413

     

     

     

     

    Gross Profit/Margin Adjustment Items Subtotal

     

    (606

    )

     

     

    (0.3

    )%

     

     

    (564

    )

     

     

    (0.2

    )%

     

     

    16,235

     

     

     

    1.8

    %

     

     

    413

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    SG&A Adjustment Items:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Recovery from Legal Matters and Settlements3

     

     

     

     

    %

     

     

     

     

     

    %

     

     

     

     

     

    %

     

     

    (150

    )

     

     

    %

    Legal and Professional Fees4

     

    (36

    )

     

     

    0.0

    %

     

     

     

     

     

    %

     

     

    886

     

     

     

    0.1

    %

     

     

     

     

     

    %

    Goodwill Impairment Charge5

     

     

     

     

    %

     

     

    9,693

     

     

     

    3.7

    %

     

     

     

     

     

    0.0

    %

     

     

    9,693

     

     

     

    0.9

    %

    SG&A Adjustment Items Subtotal

     

    (36

    )

     

     

    0.0

    %

     

     

    9,693

     

     

     

    3.7

    %

     

     

    886

     

     

     

    0.1

    %

     

     

    9,543

     

     

     

    0.9

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Adjusted Operating Loss / Margin (a non-GAAP measure)

    $

    (18,173

    )

     

     

    (8.6

    )%

     

    $

    (8,200

    )

     

     

    (3.1

    )%

     

    $

    (63,665

    )

     

     

    (7.0

    )%

     

    $

    (1,766

    )

     

     

    (0.2

    )%

    1,2,3,4,5 See the Gross Profit and SG&A sections above for more detailed explanations of these individual items.

    Items impacting other expense (income) with comparisons to the prior year periods include:

     

     

    Three Months Ended December 31,

     

     

    Year Ended December 31,

     

     

     

    2023

     

     

    2022

     

     

    2023

     

     

    2022

     

     

     

    $

     

     

    % of
    Sales

     

     

    $

     

     

    % of
    Sales

     

     

    $

     

     

    % of
    Sales

     

     

    $

     

     

    % of
    Sales

     

     

     

    (in thousands, except percentage data)

     

    Other Expense, as reported (GAAP)

     

    $

    1,082

     

     

     

    0.5

    %

     

    $

    986

     

     

     

    0.4

    %

     

    $

    9,307

     

     

     

    1.0

    %

     

    $

    1,816

     

     

     

    0.2

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Interest Impact Related to Antidumping and Countervailing Adjustments1

     

     

    27

     

     

     

    0.0

    %

     

     

    (147

    )

     

     

    0.0

    %

     

     

    5,565

     

     

     

    0.6

    %

     

     

    (148

    )

     

     

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Adjusted Other Expense/Adjusted Other Expense as a % of Sales (a non-GAAP measure)

     

    $

    1,055

     

     

     

    0.5

    %

     

    $

    1,133

     

     

     

    0.4

    %

     

    $

    3,742

     

     

     

    0.4

    %

     

    $

    1,964

     

     

     

    0.2

    %

    1.

    This amount represents net interest (income)/expense impact of certain antidumping and countervailing adjustments related to applicable prior-year shipments of engineered hardwood from China.

    LL Flooring Holdings, Inc.

    GAAP to Non-GAAP Reconciliation

    (in thousands, except per share data)

    Items impacting earnings per diluted share with comparisons to the prior-year periods include:

     

     

     

    Three Months Ended
    December 31,

     

     

    Year Ended December 31,

     

     

     

    2023

     

     

    2022

     

     

    2023

     

     

    2022

     

     

     

    (in thousands, except per share data)

     

    Net Loss, as reported (GAAP)

     

    $

    (17,945

    )

     

    $

    (15,080

    )

     

    $

    (103,494

    )

     

    $

    (12,081

    )

    Net Loss per Diluted Share (GAAP)

     

    $

    (0.62

    )

     

    $

    (0.53

    )

     

    $

    (3.59

    )

     

    $

    (0.42

    )

     

     

     

     

     

     

     

     

     

     

     

     

     

    Gross Profit/Margin Adjustment Items:

     

     

     

     

     

     

     

     

     

     

     

     

    Vinyl Charges1

     

     

    (701

    )

     

     

     

     

     

    5,426

     

     

     

     

    Antidumping and Countervailing Adjustments2

     

     

    95

     

     

     

    (564

    )

     

     

    10,809

     

     

     

    413

     

    Gross Profit/Margin Adjustment Items Subtotal

     

     

    (606

    )

     

     

    (564

    )

     

     

    16,235

     

     

     

    413

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    SG&A Adjustment Items:

     

     

     

     

     

     

     

     

     

     

     

     

    Recovery from Legal Matters and Settlements3

     

     

     

     

     

     

     

     

     

     

     

    (150

    )

    Legal and Professional Fees4

     

     

    (36

    )

     

     

     

     

     

    886

     

     

     

     

    Goodwill Impairment Charge5

     

     

     

     

     

    9,693

     

     

     

     

     

     

    9,693

     

    SG&A Adjustment Items Subtotal

     

     

    (36

    )

     

     

    9,693

     

     

     

    886

     

     

     

    9,543

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Other Expense (Income) Adjustment Items:

     

     

     

     

     

     

     

     

     

     

     

     

    Interest Impact Related to Antidumping and Countervailing Adjustment6

     

     

    27

     

     

     

    (147

    )

     

     

    5,565

     

     

     

    (148

    )

    Other Expense (Income) Adjustment Items Subtotal

     

     

    27

     

     

     

    (147

    )

     

     

    5,565

     

     

     

    (148

    )

     

     

     

     

     

     

     

     

     

     

     

     

     

    Income Tax Adjustment7

     

     

    158

     

     

     

    (2,353

    )

     

     

    (5,830

    )

     

     

    (2,570

    )

     

     

     

     

     

     

     

     

     

     

     

     

     

    Adjusted Loss

     

    $

    (18,402

    )

     

    $

    (8,451

    )

     

    $

    (86,638

    )

     

    $

    (4,843

    )

    Adjusted Loss per Diluted Share (a non-GAAP measure)

     

    $

    (0.64

    )

     

    $

    (0.29

    )

     

    $

    (3.01

    )

     

    $

    (0.17

    )

    1,2,3,4,5,6

    See the Gross Profit, SG&A and Other Expense (Income) sections above for more detailed explanations of these individual items.

    7

    Income Tax Adjustment is defined as the sum of Gross Profit/Margin, SG&A, and Other Expense (Income) Adjustment Items multiplied by the Company’s federal incremental rate, which was 25.7% for the 2023 period and 26.2% for the 2022 period.

     


    The LL Flooring Holdings Stock at the time of publication of the news with a raise of +0,23 % to 2,145USD on NYSE stock exchange (01. März 2024, 21:54 Uhr).


    Business Wire (engl.)
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    LL Flooring Reports Fourth Quarter and Full Year 2023 Financial Results LL Flooring Holdings, Inc. (“LL Flooring” or “Company”) (NYSE: LL), a leading specialty retailer of hard and soft surface flooring in the U.S., today announced financial results for the fourth quarter and year ended December 31, 2023. "Fourth …