LL Flooring (LLFLQ) 10-Q 23 Oct 13 2013 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 21, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	30-Sep-13
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	LL
Entity Common Stock, Shares Outstanding		27,594,809
Entity Registrant Name	Lumber Liquidators Holdings, Inc.
Entity Central Index Key	1396033
Current Fiscal Year End Date	-19
Entity Filer Category	Accelerated Filer

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current Assets:
Cash and Cash Equivalents	$84,194	$64,167
Merchandise Inventories	237,290	206,704
Prepaid Expenses	5,715	5,168
Other Current Assets	15,110	12,106
Total Current Assets	342,309	288,145
Property and Equipment, net	56,712	47,764
Goodwill	9,693	9,693
Other Assets	1,732	1,785
Total Assets	410,446	347,387
Current Liabilities:
Accounts Payable	37,690	55,110
Customer Deposits and Store Credits	32,488	25,747
Accrued Compensation	10,722	7,969
Sales and Income Tax Liabilities	5,041	4,314
Other Current Liabilities	16,817	7,887
Total Current Liabilities	102,758	101,027
Deferred Rent	3,823	3,653
Deferred Tax Liability	8,523	8,166
Stockholders’ Equity:
Common Stock ($0.001 par value; 35,000,000 authorized; 27,609,809 and 27,214,144 outstanding, respectively)	30	29
Treasury Stock, at cost (2,034,911 and 1,719,706 shares, respectively)	-75,161	-50,552
Additional Capital	160,958	131,724
Retained Earnings	209,867	153,267
Accumulated Other Comprehensive (Loss) Income	-352	73
Total Stockholders’ Equity	295,342	234,541
Total Liabilities and Stockholders’ Equity	$410,446	$347,387

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Common Stock, par value	$0.00	$0.00
Common Stock, shares authorized	35,000,000	35,000,000
Common Stock, shares outstanding	27,609,809	27,214,144
Treasury Stock, shares	2,034,911	1,719,706

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net Sales	$254,278	$204,291	$741,807	$602,672
Cost of Sales	147,903	126,405	436,356	376,169
Gross Profit	106,375	77,886	305,451	226,503
Selling, General and Administrative Expenses	73,108	57,135	213,690	172,638
Operating Income	33,267	20,751	91,761	53,865
Other (Income) Expense	-64	-26	-425	-99
Income Before Income Taxes	33,331	20,777	92,186	53,964
Provision for Income Taxes	12,932	7,895	35,586	20,708
Net Income	$20,399	$12,882	$56,600	$33,256
Net Income per Common Share—Basic	$0.74	$0.47	$2.06	$1.21
Net Income per Common Share—Diluted	$0.73	$0.46	$2.03	$1.18
Weighted Average Common Shares Outstanding:
Basic	27,594,573	27,125,855	27,448,441	27,518,206
Diluted	27,954,115	27,744,564	27,905,131	28,094,040

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Other Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net Income	$20,399	$12,882	$56,600	$33,256
Foreign Currency Translation Adjustments	268	358	-425	415
Comprehensive Income	$20,667	$13,240	$56,175	$33,671

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash Flows from Operating Activities:
Net Income	$56,600	$33,256
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization	8,503	7,323
Stock-Based Compensation Expense	4,168	3,019
Changes in Operating Assets and Liabilities:
Merchandise Inventories	-30,704	-30,962
Accounts Payable	-17,622	-8,212
Customer Deposits and Store Credits	6,754	5,966
Prepaid Expenses and Other Current Assets	-3,991	-2,427
Other Assets and Liabilities	12,994	8,973
Net Cash Provided by Operating Activities	36,702	16,936
Cash Flows from Investing Activities:
Purchases of Property and Equipment	-17,261	-9,570
Net Cash Used in Investing Activities	-17,261	-9,570
Cash Flows from Financing Activities:
Payments for Share Repurchases	-24,609	-40,349
Proceeds from the Exercise of Stock Options	9,796	8,031
Excess Tax Benefit from Stock-Based Compensation	15,711	3,141
Net Cash Provided by (Used in) Financing Activities	898	-29,177
Effect of Exchange Rates on Cash and Cash Equivalents	-312	201
Net Increase (Decrease) in Cash and Cash Equivalents	20,027	-21,610
Cash and Cash Equivalents, Beginning of Period	64,167	61,675
Cash and Cash Equivalents, End of Period	$84,194	$40,065

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]
Basis of Presentation	Note 1.	Basis of Presentation
	Lumber Liquidators Holdings, Inc. (the “Company”) is a multi-channel specialty retailer of hardwood flooring, and hardwood flooring enhancements and accessories, operating as a single business segment. The Company offers an extensive assortment of exotic and domestic hardwood species, engineered hardwoods and laminates direct to the consumer. The Company also features the renewable flooring products, bamboo and cork, and provides a wide selection of flooring enhancements and accessories, including moldings, noise-reducing underlay, adhesives and flooring tools. These products are primarily sold under the Company’s private label brands, including the premium Bellawood brand floors. The Company sells primarily to homeowners or to contractors on behalf of homeowners through a network of 298 store locations in primary or secondary metropolitan areas in 46 states and nine store locations in Canada at September 30, 2013. 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. The Company finishes the majority of the Bellawood products on its finishing line in Toano, Virginia, which along with the call center, corporate offices, and a distribution center, represent the “Corporate Headquarters.”
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission. While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the results of the interim period, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. Therefore, the interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s annual report filed on Form 10-K for the year ended December 31, 2012.
	The consolidated financial statements of the Company include the accounts of its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation.
	Results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 2.	Fair Value of Financial Instruments
	The carrying amounts of financial instruments such as cash and cash equivalents, accounts payable and other liabilities approximate fair value because of the short-term nature of these items. Of these financial instruments, the cash equivalents are classified as Level 1 as defined in the Financial Accounting Standards Board ASC 820 fair value hierarchy. The Company had cash equivalents of $170 at both September 30, 2013 and December 31, 2012.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]
Stockholders' Equity	Note 3.	Stockholders’ Equity
	Net Income per Common Share
	The following table sets forth the computation of basic and diluted net income per common share:
			Three Months Ended September 30,				Nine Months Ended September 30,
			2013		2012		2013		2012
	Net Income		$	20,399	$	12,882	$	56,600	$	33,256
	Weighted Average Common Shares			27,594,573		27,125,855		27,448,441		27,518,206
	Outstanding—Basic
	Effect of Dilutive Securities:
	Common Stock Equivalents			359,542		618,709		456,690		575,834
	Weighted Average Common Shares			27,954,115		27,744,564		27,905,131		28,094,040
	Outstanding—Diluted
	Net Income per Common Share—Basic		$	0.74	$	0.47	$	2.06	$	1.21
	Net Income per Common Share—Diluted		$	0.73	$	0.46	$	2.03	$	1.18
	The following have been excluded from the computation of Weighted Average Common Shares Outstanding—Diluted because the effect would be anti-dilutive:
			Three and Nine Months Ended
			September 30,
			2013		2012
	Stock Options			12,399		4,054
	Restricted Stock Awards			—		—
	Stock Repurchase Program
	In 2012, the Company’s Board of Directors authorized the repurchase of up to $100,000 of the Company’s common stock, and at September 30, 2013, the Company had $26,947 remaining under this authorization. Purchases under this program were as follows:
			Three Months Ended September 30,				Nine Months Ended September 30,
			2013		2012		2013		2012
	Shares Repurchased			109,900		175,400		306,430		1,477,577
	Average Price per Share		$	89.6	$	33.12	$	78.27	$	27.14
	Total Aggregate Costs		$	9,847	$	5,809	$	23,986	$	40,134

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Note 4.	Stock-Based Compensation
	The following table summarizes share activity related to stock options and restricted stock awards (“RSAs”):
			Stock Options		Restricted Stock
					Awards
	Options Outstanding/Nonvested RSAs, December 31, 2012			1,311,377		152,405
	Granted			214,092		79,938
	Options Exercised/RSAs Released			-675,805		-35,065
	Forfeited			-57,590		-11,889
	Options Outstanding/Nonvested RSAs, September 30, 2013			792,074		185,389

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]
Related Party Transactions	Note 5.	Related Party Transactions
	As of September 30, 2013, the Company leased 29 of its locations and the Corporate Headquarters, which includes a store location, representing 9.8% of the total number of store leases in operation, from entities controlled by the Company’s founder and current chairman of the Board (“Controlled Companies”). As of September 30, 2012, the Company leased 27 of its locations and the Corporate Headquarters, representing 9.9% of store leases in operation at that time, from Controlled Companies. Rental expense related to Controlled Companies was as follows:
			Three Months Ended September 30,				Nine Months Ended September 30,
			2013		2012		2013		2012
	Rental expense related to Controlled Companies		$	726	$	707	$	2,237	$	2,035

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 6.	Commitments and Contingencies
	On August 30, 2012, Jaroslaw Prusak, a purported customer (“Prusak”), filed a putative class action lawsuit, which was subsequently amended, against the Company in the United States District Court for the Northern District of Illinois. Prusak alleges that the Company willfully violated the Fair and Accurate Credit Transactions Act (“FACTA”) amendments to the Fair Credit Reporting Act in connection with electronically printed credit card receipts provided to certain of its customers.  Prusak, for himself and the putative class, seeks statutory damages of no less than $100 and no more than $1,000 per violation, punitive damages, attorney’s fees and costs, and other relief.  Prusak has filed a motion seeking certification of the putative class and the parties have each filed motions seeking summary judgment with regard to matters at issue in the case.  Those motions are currently pending before the Court.  Although the Company believes it has defenses to the claims asserted and has opposed the motion to certify the class, no assurances can be given of any particular result. Given the uncertainty inherent in any litigation, the current stage of the case and the legal standards that must be met for, among other things, class certification and success on the merits, the Company cannot reasonably estimate the possible loss or range of loss that may result from this action.
	The Company also is, from time to time, subject to claims and disputes arising in the normal course of business. In the opinion of management, while the outcome of any such claims and disputes cannot be predicted with certainty, the ultimate liability of the Company in connection with these matters is not expected to have a material adverse effect on the Company’s results of operations, financial position or cash flows.

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]
Computation of Basic and Diluted Net Income Per Common Share	The following table sets forth the computation of basic and diluted net income per common share:
		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
	Net Income	$	20,399	$	12,882	$	56,600	$	33,256
	Weighted Average Common Shares		27,594,573		27,125,855		27,448,441		27,518,206
	Outstanding—Basic
	Effect of Dilutive Securities:
	Common Stock Equivalents		359,542		618,709		456,690		575,834
	Weighted Average Common Shares		27,954,115		27,744,564		27,905,131		28,094,040
	Outstanding—Diluted
	Net Income per Common Share—Basic	$	0.74	$	0.47	$	2.06	$	1.21
	Net Income per Common Share—Diluted	$	0.73	$	0.46	$	2.03	$	1.18
Anti-Dilutive Securities Excluded from Computation of Weighted Average Common Shares Outstanding-Diluted	The following have been excluded from the computation of Weighted Average Common Shares Outstanding—Diluted because the effect would be anti-dilutive:
		Three and Nine Months Ended
		September 30,
		2013		2012
	Stock Options		12,399		4,054
	Restricted Stock Awards		—		—
Purchases under Stock Repurchase Program	Purchases under this program were as follows:
		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
	Shares Repurchased		109,900		175,400		306,430		1,477,577
	Average Price per Share	$	89.6	$	33.12	$	78.27	$	27.14
	Total Aggregate Costs	$	9,847	$	5,809	$	23,986	$	40,134

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Activity Related to Stock Options and Restricted Stock Awards	The following table summarizes share activity related to stock options and restricted stock awards (“RSAs”):
		Stock Options		Restricted Stock
				Awards
	Options Outstanding/Nonvested RSAs, December 31, 2012		1,311,377		152,405
	Granted		214,092		79,938
	Options Exercised/RSAs Released		-675,805		-35,065
	Forfeited		-57,590		-11,889
	Options Outstanding/Nonvested RSAs, September 30, 2013		792,074		185,389

Related_Party_Transactions_Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]
Rental Expense Related to Controlled Companies	Rental expense related to Controlled Companies was as follows:
		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
	Rental expense related to Controlled Companies	$	726	$	707	$	2,237	$	2,035

Basis_of_Presentation_Addition

Basis of Presentation - Additional Information (Detail)	Sep. 30, 2013
	States
	Stores
Organization And Business Operations [Line Items]
Number of canadian stores	9
Number of domestic Stores	298
Number of states in which stores operates	46

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments - Additional Information (Detail) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Cash and Cash Equivalents [Line Items]
Cash equivalents	$170	$170

Computation_of_Basic_and_Dilut

Computation of Basic and Diluted Net Income Per Common Share (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items]
Net Income	$20,399	$12,882	$56,600	$33,256
Weighted Average Common Shares Outstanding-Basic	27,594,573	27,125,855	27,448,441	27,518,206
Effect of Dilutive Securities:
Common Stock Equivalents	359,542	618,709	456,690	575,834
Weighted Average Common Shares Outstanding-Diluted	27,954,115	27,744,564	27,905,131	28,094,040
Net Income per Common Share—Basic	$0.74	$0.47	$2.06	$1.21
Net Income per Common Share—Diluted	$0.73	$0.46	$2.03	$1.18

AntiDilutive_Securities_Exclud

Anti-Dilutive Securities Excluded from Computation of Weighted Average Common Shares Outstanding-Diluted (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earning per share	12,399	4,054	12,399	4,054
Restricted Stock Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earning per share	0	0	0	0

Purchases_under_Stock_Repurcha

Purchases under Stock Repurchase Program (Detail) (Stock Repurchase Program, USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Shares Repurchased	109,900	175,400	306,430	1,477,577
Average Price per Share	$89.60	$33.12	$78.27	$27.14
Total Aggregate Costs	$9,847	$5,809	$23,986	$40,134

Stockholders_Equity_Additional

Stockholders' Equity - Additional Information (Detail) (Stock Repurchase Program, USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Stock Repurchase Program
Stock Repurchase Programs [Line Items]
Common stock repurchased, authorized amount		$100,000
Common stock repurchased, remaining authorized amount	$26,947

Summarizes_Share_Activity_Rela

Summarizes Share Activity Related to Stock Options and Restricted Stock Awards (Detail)	9 Months Ended
	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance	1,311,377
Granted	214,092
Options Exercised/RSAs Released	-675,805
Forfeited	-57,590
Ending Balance	792,074
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance	152,405
Granted	79,938
Options Exercised/RSAs Released	-35,065
Forfeited	-11,889
Ending Balance	185,389

Related_Party_Transactions_Add

Related Party Transactions - Additional Information (Detail) (Controlled Companies)	Sep. 30, 2013	Sep. 30, 2012
	Stores	Stores
Controlled Companies
Related Party Transaction [Line Items]
Number of leased stores	29	27
Percentage of store lease in operation	9.80%	9.90%

Rental_Expense_Related_to_Cont

Rental Expense Related to Controlled Companies (Detail) (Controlled Companies, USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Controlled Companies
Related Party Transaction [Line Items]
Rental expense related to Controlled Companies	$726	$707	$2,237	$2,035

Commitments_and_Contingencies_

Commitments and Contingencies - Additional Information (Detail) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Minimum
Loss Contingencies [Line Items]
Damages sought by Plaintiff, value	$100
Maximum
Loss Contingencies [Line Items]
Damages sought by Plaintiff, value	$1,000