Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 17, 2014 | Jun. 30, 2013 |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'LL | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 27,477,570 | ' |
Entity Registrant Name | 'Lumber Liquidators Holdings, Inc. | ' | ' |
Entity Central Index Key | '0001396033 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $1.50 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and Cash Equivalents | $80,634 | $64,167 |
Merchandise Inventories | 252,428 | 206,704 |
Prepaid Expenses | 6,229 | 5,168 |
Other Current Assets | 12,916 | 12,106 |
Total Current Assets | 352,207 | 288,145 |
Property and Equipment, net | 65,947 | 47,764 |
Goodwill | 9,693 | 9,693 |
Other Assets | 1,712 | 1,785 |
Total Assets | 429,559 | 347,387 |
Current Liabilities: | ' | ' |
Accounts Payable | 56,327 | 55,110 |
Customer Deposits and Store Credits | 22,377 | 25,747 |
Accrued Compensation | 11,709 | 7,969 |
Sales and Income Tax Liabilities | 4,878 | 4,314 |
Other Current Liabilities | 11,709 | 7,887 |
Total Current Liabilities | 107,000 | 101,027 |
Deferred Rent | 4,169 | 3,653 |
Deferred Tax Liability | 9,061 | 8,166 |
Stockholders' Equity: | ' | ' |
Common Stock ($0.001 par value; 35,000,000 authorized; 27,557,570 and 27,214,144 outstanding, respectively) | 30 | 29 |
Treasury Stock, at cost (2,133,307 and 1,719,706 shares, respectively) | -85,382 | -50,552 |
Additional Capital | 164,581 | 131,724 |
Retained Earnings | 230,662 | 153,267 |
Accumulated Other Comprehensive (Loss) Income | -562 | 73 |
Total Stockholders' Equity | 309,329 | 234,541 |
Total Liabilities and Stockholders' Equity | $429,559 | $347,387 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 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 | 27,557,570 | 27,214,144 |
Treasury Stock, shares | 2,133,307 | 1,719,706 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Sales | $1,000,240 | $813,327 | $681,587 |
Cost of Sales | 589,257 | 504,542 | 440,912 |
Gross Profit | 410,983 | 308,785 | 240,675 |
Selling, General and Administrative Expenses | 284,960 | 230,439 | 198,237 |
Operating Income | 126,023 | 78,346 | 42,438 |
Other (Income) Expense | -442 | -140 | -587 |
Income Before Income Taxes | 126,465 | 78,486 | 43,025 |
Provision for Income Taxes | 49,070 | 31,422 | 16,769 |
Net Income | $77,395 | $47,064 | $26,256 |
Net Income per Common ShareBBasic | $2.82 | $1.71 | $0.95 |
Net Income per Common ShareBDiluted | $2.77 | $1.68 | $0.93 |
Weighted Average Common Shares Outstanding: | ' | ' | ' |
Basic | 27,484,790 | 27,448,333 | 27,706,629 |
Diluted | 27,914,322 | 28,031,453 | 28,379,693 |
Consolidated_Statements_of_Oth
Consolidated Statements of Other Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income | $77,395 | $47,064 | $26,256 |
Foreign Currency Translation Adjustments | -635 | 267 | -194 |
Comprehensive Income | $76,760 | $47,331 | $26,062 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Treasury Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data | ||||||
Beginning Balance at Dec. 31, 2010 | $180,505 | $27 | ($867) | $101,398 | $79,947 | $0 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 27,472,680 | 46,289 | ' | ' | ' |
Stock-Based Compensation Expense | 4,005 | 0 | 0 | 4,005 | 0 | 0 |
Exercise of Stock Options (in shares) | ' | 377,775 | 0 | ' | ' | ' |
Exercise of Stock Options | 3,071 | 1 | 0 | 3,070 | 0 | 0 |
Excess Tax Benefits on Stock Option Exercises | 1,690 | 0 | 0 | 1,690 | 0 | 0 |
Release of Restricted Stock (in shares) | ' | 56,529 | 0 | ' | ' | ' |
Release of Restricted Stock | 0 | 0 | 0 | 0 | 0 | 0 |
Common Stock Repurchased (in shares) | ' | -12,441 | 12,441 | ' | ' | ' |
Common Stock Repurchased | -249 | 0 | -249 | 0 | 0 | 0 |
Translation Adjustment | -194 | 0 | 0 | 0 | 0 | -194 |
Net Income | 26,256 | 0 | 0 | 0 | 26,256 | 0 |
Ending Balance at Dec. 31, 2011 | 215,084 | 28 | -1,116 | 110,163 | 106,203 | -194 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 27,894,543 | 58,730 | ' | ' | ' |
Stock-Based Compensation Expense | 3,977 | 0 | 0 | 3,977 | 0 | 0 |
Exercise of Stock Options (in shares) | ' | 937,048 | 0 | ' | ' | ' |
Exercise of Stock Options | 10,454 | 1 | 0 | 10,453 | 0 | 0 |
Excess Tax Benefits on Stock Option Exercises | 7,131 | 0 | 0 | 7,131 | 0 | 0 |
Release of Restricted Stock (in shares) | ' | 43,529 | 0 | ' | ' | ' |
Release of Restricted Stock | 0 | 0 | 0 | 0 | 0 | 0 |
Common Stock Repurchased (in shares) | ' | -1,660,976 | 1,660,976 | ' | ' | ' |
Common Stock Repurchased | -49,436 | 0 | -49,436 | 0 | 0 | 0 |
Translation Adjustment | 267 | 0 | 0 | 0 | 0 | 267 |
Net Income | 47,064 | 0 | 0 | 0 | 47,064 | 0 |
Ending Balance at Dec. 31, 2012 | 234,541 | 29 | -50,552 | 131,724 | 153,267 | 73 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 27,214,144 | 1,719,706 | ' | ' | ' |
Stock-Based Compensation Expense | 5,471 | 0 | 0 | 5,471 | 0 | 0 |
Exercise of Stock Options (in shares) | ' | 718,665 | 0 | ' | ' | ' |
Exercise of Stock Options | 10,255 | 1 | 0 | 10,254 | 0 | 0 |
Excess Tax Benefits on Stock Option Exercises | 17,132 | 0 | 0 | 17,132 | 0 | 0 |
Release of Restricted Stock (in shares) | ' | 38,362 | 0 | ' | ' | ' |
Release of Restricted Stock | 0 | 0 | 0 | 0 | 0 | 0 |
Common Stock Repurchased (in shares) | ' | -413,601 | 413,601 | ' | ' | ' |
Common Stock Repurchased | -34,830 | 0 | -34,830 | 0 | 0 | 0 |
Translation Adjustment | -635 | 0 | 0 | 0 | 0 | -635 |
Net Income | 77,395 | 0 | 0 | 0 | 77,395 | 0 |
Ending Balance at Dec. 31, 2013 | $309,329 | $30 | ($85,382) | $164,581 | $230,662 | ($562) |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 27,557,570 | 2,133,307 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities: | ' | ' | ' |
Net Income | $77,395 | $47,064 | $26,256 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ' | ' | ' |
Depreciation and Amortization | 11,666 | 9,957 | 8,328 |
Deferred Income Taxes | -846 | 160 | 2,402 |
Stock-Based Compensation Expense | 5,974 | 3,997 | 4,005 |
Changes in Operating Assets and Liabilities: | ' | ' | ' |
Merchandise Inventories | -45,834 | -42,712 | -9,197 |
Accounts Payable | -15 | 16,756 | 4,467 |
Customer Deposits and Store Credits | -3,354 | 7,626 | 6,104 |
Prepaid Expenses and Other Current Assets | -257 | -2,835 | -1,943 |
Other Assets and Liabilities | 8,271 | 7,256 | 3,679 |
Net Cash Provided by Operating Activities | 53,000 | 47,269 | 44,101 |
Cash Flows from Investing Activities: | ' | ' | ' |
Purchases of Property and Equipment | -28,585 | -13,376 | -16,988 |
Cash Paid for Acquisition | 0 | 0 | -4,725 |
Net Cash Used in Investing Activities | -28,585 | -13,376 | -21,713 |
Cash Flows from Financing Activities: | ' | ' | ' |
Payments for Stock Repurchases | -34,830 | -49,436 | -249 |
Proceeds from the Exercise of Stock Options | 10,255 | 10,454 | 3,070 |
Excess Tax Benefit from Stock-Based Compensation | 17,132 | 7,131 | 1,690 |
Net Cash (Used in) Provided by Financing Activities | -7,443 | -31,851 | 4,511 |
Effect of Exchange Rates on Cash and Cash Equivalents | -505 | 450 | -54 |
Net Increase in Cash and Cash Equivalents | 16,467 | 2,492 | 26,845 |
Cash and Cash Equivalents, Beginning of Year | 64,167 | 61,675 | 34,830 |
Cash and Cash Equivalents, End of Year | $80,634 | $64,167 | $61,675 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Nature of Business | |||||
Lumber Liquidators Holdings, Inc. and its direct and indirect subsidiaries (collectively and, where applicable, individually, the “Company”) engage in business as 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 hardwood, laminate and vinyl plank flooring 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 309 store locations in primary or secondary metropolitan areas in 46 states and nine store locations in Canada at December 31, 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.” | |||||
Organization and Basis of Financial Statement Presentation | |||||
The consolidated financial statements of Lumber Liquidators Holdings, Inc., a Delaware corporation, include the accounts of its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. | |||||
Use of Estimates | |||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |||||
Cash and Cash Equivalents | |||||
The Company had cash equivalents of $9,333 and $7,664 at December 31, 2013 and 2012, respectively. The Company considers all highly liquid investments with a maturity date of three months or less when purchased to be cash equivalents, of which there was $170 at both December 31, 2013 and 2012. The Company accepts a range of debit and credit cards, and these transactions are generally transmitted to a bank for reimbursement within 24 hours. The payments due from the banks for these debit and credit card transactions are generally received, or settle, within 24 to 48 hours of the transmission date. The Company considers all debit and credit card transactions that settle in less than seven days to be cash and cash equivalents. Amounts due from the banks for these transactions classified as cash and cash equivalents totaled $9,163 and $7,494 at December 31, 2013 and 2012, respectively. | |||||
Credit Programs | |||||
Credit is offered to the Company’s customers through a proprietary credit card, the Lumber Liquidators credit card, underwritten by a third party financial institution and at no recourse to the Company. A credit line is offered to the Company’s professional customers through the Lumber Liquidators Commercial Credit Program. This commercial credit program is underwritten by a third party financial institution, generally with no recourse to the Company. | |||||
As part of the credit program, the Company’s customers may use their Lumber Liquidators credit card to tender installation services provided by the Company’s third party installation provider, who is responsible for all credits and program fees for the related transactions. The Company has agreed to indemnify the financial institution against any losses related to these credits or fees. There are no maximum potential future payments under the guarantee. The Company is able to seek recovery from the installation provider of any amounts paid on its behalf. The Company believes that the risk of significant loss from the guarantee of these obligations is remote. | |||||
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 Accounting Standards Codification (“FASB ASC”) 820 fair value hierarchy. | |||||
Merchandise Inventories | |||||
The Company values merchandise inventories at the lower of cost or market value. Merchandise cost is determined using the average cost method. All of the hardwood flooring purchased from vendors is either prefinished or unfinished, and in immediate saleable form. The Company adds the finish to, and boxes, various species of unfinished product, to produce certain proprietary products, primarily Bellawood, at its finishing facility. These finishing and boxing costs are included in the average unit cost of related merchandise inventory. The Company maintains an inventory reserve for loss or obsolescence based on historical results and current sales trends. This reserve was $1,275 and $1,035 at December 31, 2013 and 2012, respectively. | |||||
Impairment of Long-Lived Assets | |||||
The Company evaluates potential impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets may be impaired, and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. If impairment exists and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets, an impairment loss is recorded based on the difference between the carrying value and fair value of the assets. No impairment charges were recognized in 2013, 2012 or 2011. | |||||
Goodwill and Other Indefinite-Lived Intangibles | |||||
Goodwill represents the costs in excess of the fair value of net assets acquired associated with acquisitions by the Company. Other assets include $800 for an indefinite-lived intangible asset for the phone number 1-800-HARDWOOD and related internet domain names. The Company evaluates these assets for impairment on an annual basis, or whenever events or changes in circumstance indicate that the asset carrying value exceeds its fair value. Based on the analysis performed, the Company has concluded that no impairment in the value of these assets has occurred. | |||||
Self Insurance | |||||
The Company is self-insured for certain employee health benefit claims, and beginning in 2013, for certain workers’ compensation claims. The Company estimates a liability for aggregate losses below stop-loss coverage limits based on estimates of the ultimate costs to be incurred to settle known claims and claims incurred but not reported as of the balance sheet date. The estimated liability is not discounted and is based on a number of assumptions and factors including historical and industry trends and economic conditions. This liability could be affected if future occurrences and claims differ from these assumptions and historical trends. As of December 31, 2013 and 2012, an accrual of $1,305 and $679 related to estimated claims was included in other current liabilities, respectively. | |||||
Recognition of Net Sales | |||||
The Company recognizes net sales for products purchased at the time the customer takes possession of the merchandise. Service revenue, primarily installation revenue and freight charges for in-home delivery, is included in net sales and recognized when the service has been rendered. The Company reports sales exclusive of sales taxes collected from customers and remitted to governmental taxing authorities, and net of an allowance for anticipated sales returns based on historical and current sales trends and experience. The sales returns allowance and related changes were not significant for 2013, 2012 or 2011. | |||||
The Company generally requires customers to pay a deposit, equal to approximately half of the retail sales value, when purchasing merchandise inventories not regularly carried in a given store location, or not currently in stock. These deposits are included in customer deposits and store credits until the customer takes possession of the merchandise. | |||||
Cost of Sales | |||||
Cost of sales includes the cost of the product sold, cost of installation services, transportation costs from vendor to the Company’s distribution centers or store locations, any applicable finishing costs related to production of the Company’s proprietary brands, transportation costs from distribution centers to store locations, transportation costs for the delivery of products from store locations to customers, certain costs of quality control procedures, inventory adjustments including shrinkage, and costs to produce samples, reduced by vendor allowances. | |||||
The Company offers a range of warranties from the durability of the finish on its prefinished products to its services provided. These warranties range from one to 100 years. Warranty reserves are based primarily on claims experience, sales history and other considerations, and warranty costs are recorded in cost of sales. This reserve was $876 and $440 at December 31, 2013 and 2012, respectively. | |||||
Vendor allowances primarily consist of volume rebates that are earned as a result of attaining certain purchase levels and reimbursement for the cost of producing samples. Vendor allowances are accrued as earned, with those allowances received as a result of attaining certain purchase levels accrued over the incentive period based on estimates of purchases. Volume rebates earned are initially recorded as a reduction in merchandise inventories and a subsequent reduction in cost of sales when the related product is sold. Reimbursement received for the cost of producing samples is recorded as an offset against cost of sales. | |||||
Advertising Costs | |||||
Advertising costs charged to selling, general and administrative (“SG&A”) expenses, net of vendor allowances, were $75,506, $58,548 and $52,345 in 2013, 2012 and 2011, respectively. The Company uses various types of media to brand its name and advertise its products. Media production costs are generally expensed as incurred, except for direct mail, which is expensed when the finished piece enters the postal system. Media placement costs are generally expensed in the month the advertising occurs, except for contracted endorsements and sports agreements, which are generally expensed ratably over the contract period. Amounts paid in advance are included in prepaid expenses and totaled $2,893 and $1,649 at December 31, 2013 and 2012, respectively. | |||||
Store Opening Costs | |||||
Costs to open new store locations are charged to SG&A expenses as incurred, net of any vendor support. | |||||
Other Vendor Consideration | |||||
Consideration from non-merchandise vendors, including royalties and rebates, are generally recorded as an offset to SG&A expenses when earned. | |||||
Depreciation and Amortization | |||||
Property and equipment is carried at cost and depreciated on the straight-line method over the estimated useful lives. The estimated useful lives for leasehold improvements are the shorter of the estimated useful lives or the remainder of the lease terms. For leases with optional renewal periods, the Company uses the original lease term, excluding optional renewal periods, to determine the appropriate estimated useful lives. Capitalized software costs are capitalized from the time that technological feasibility is established until the software is ready for use. The estimated useful lives are generally as follows: | |||||
Years | |||||
Buildings and Building Improvements | 15 to 40 | ||||
Property and Equipment | 5 to 10 | ||||
Computer Software and Hardware | 3 to 10 | ||||
Leasehold Improvements | 1 to 15 | ||||
Operating Leases | |||||
The Company has operating leases for its stores, Corporate Headquarters, distribution facilities, supplemental office facilities and certain equipment. The lease agreements for certain stores and distribution facilities contain rent escalation clauses, rent holidays and tenant improvement allowances. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses in SG&A expenses on a straight-line basis over the terms of the leases. The difference between the rental expense and rent paid is recorded as deferred rent in the consolidated balance sheets. For tenant improvement allowances, the Company records deferred rent in the consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to rental expense. | |||||
Stock-Based Compensation | |||||
The Company records compensation expense associated with stock options and other forms of equity compensation in accordance with FASB ASC 718. The Company may issue incentive awards in the form of stock options, restricted stock awards and other equity awards to employees and non-employee directors. The Company recognizes expense for its stock-based compensation based on the fair value of the awards that are granted. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. Measured compensation cost is recognized ratably over the requisite service period of the entire related stock-based compensation award. | |||||
Foreign Currency Translation | |||||
The Company’s Canadian operations use the Canadian dollar as the functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average monthly exchange rates during the year. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the consolidated balance sheets. | |||||
Income Taxes | |||||
Income taxes are accounted for in accordance with FASB ASC 740 (“ASC 740”). Income taxes are provided for under the asset and liability method and consider differences between the tax and financial accounting bases. The tax effects of these differences are reflected on the balance sheet as deferred income taxes and measured using the effective tax rate expected to be in effect when the differences reverse. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion of the deferred tax asset will not be realized. In evaluating the need for a valuation allowance, the Company takes into account various factors, including the nature, frequency and severity of current and cumulative losses, expected level of future taxable income, the duration of statutory carryforward periods and tax planning alternatives. In future periods, any valuation allowance will be re-evaluated in accordance with ASC 740, and a change, if required, will be recorded through income tax expense in the period such determination is made. | |||||
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of its position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The amount of unrecognized tax benefits was not significant for 2013, 2012 or 2011. The Company classifies interest and penalties related to income tax matters as a component of income tax expense. | |||||
Net Income per Common Share | |||||
Basic net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year. Diluted net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year, plus the dilutive effect of common stock equivalents, including stock options and restricted stock awards. Common stock and common stock equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options and release of restricted stock awards, except when the effect of their inclusion would be antidilutive. | |||||
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations [Abstract] | ' |
ACQUISITION | ' |
NOTE 2. ACQUISITION | |
On September 28, 2011, the Company entered into an agreement to acquire certain assets of Sequoia Floorings Inc. relating to their quality control and assurance, product development, claims management and logistics operations in China. The acquisition agreement included a purchase price of approximately $8,300, of which approximately $4,700 was paid in cash. SG&A expenses in 2011 included acquisition-related expenses of approximately $600. | |
The purchase price for the acquisition was allocated to the assets acquired and liabilities assumed based upon their respective fair values. The excess consideration was recorded as goodwill and approximated $8,643. | |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
PROPERTY AND EQUIPMENT | ' | |||||||
NOTE 3. PROPERTY AND EQUIPMENT | ||||||||
Property and equipment consisted of: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Land | $ | 4,937 | $ | — | ||||
Property and Equipment | 40,833 | 36,847 | ||||||
Computer Software and Hardware | 38,317 | 33,344 | ||||||
Leasehold Improvements | 22,230 | 16,112 | ||||||
Assets under Construction – Supply Chain | 5,663 | — | ||||||
111,980 | 86,303 | |||||||
Less: Accumulated Depreciation and Amortization | 46,033 | 38,539 | ||||||
Property and Equipment, net | $ | 65,947 | $ | 47,764 | ||||
As of December 31, 2013 and 2012, the Company had capitalized $28,391 and $24,398 of computer software costs, respectively. Amortization expense related to these assets was $2,659, $2,388 and $2,094 for 2013, 2012 and 2011, respectively. | ||||||||
REVOLVING_CREDIT_AGREEMENT
REVOLVING CREDIT AGREEMENT | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
REVOLVING CREDIT AGREEMENT | ' |
NOTE 4. REVOLVING CREDIT AGREEMENT | |
A revolving credit agreement (the “Revolver”) providing for borrowings up to $50,000 is available to the Company through expiration on February 21, 2017. The Revolver is primarily available to fund inventory purchases, including the support of up to $10,000 for letters of credit, and for general operations. As of December 31, 2013, the Revolver supported $2,289 of letters of credit and there were no outstanding borrowings against the Revolver. As of December 31, 2012, there were no outstanding commitments or borrowings against the Revolver. The Revolver is secured by the Company’s inventory, has no mandated payment provisions and a fee of 0.1% per annum, subject to adjustment based on certain financial performance criteria, on any unused portion of the Revolver. Amounts outstanding under the Revolver would be subject to an interest rate of LIBOR plus 1.125%, subject to adjustment based on certain financial performance criteria. The Revolver has certain defined covenants and restrictions, including the maintenance of certain defined financial ratios. The Company was in compliance with these financial covenants at December 31, 2013. | |
LEASES
LEASES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Leases [Abstract] | ' | ||||||||||||||||
LEASES | ' | ||||||||||||||||
NOTE 5. LEASES | |||||||||||||||||
The Company has operating leases for its stores, Corporate Headquarters, Hampton Roads and West Coast distribution centers, supplemental office facilities and certain equipment. The store location leases are operating leases and generally have five-year base periods with one or more five-year renewal periods. The Corporate Headquarters has an operating lease with a base term running through December 31, 2019. The Hampton Roads distribution centers have operating leases with varied expiration dates ending by March 31, 2015. The West Coast distribution center has an operating lease with a base term running through October 31, 2024. | |||||||||||||||||
As of December 31, 2013, 2012 and 2011, the Company leased the Corporate Headquarters, which includes a store location, and 29, 27 and 25 of its locations, representing 9.4%, 9.7% and 9.5% of the total number of store leases in operation, respectively, from entities controlled by the Company’s founder and current chairman of the Board of Directors (“Controlled Companies”). | |||||||||||||||||
Rental expense is as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Rental expense | $ | 21,874 | $ | 18,826 | $ | 16,575 | |||||||||||
Rental expense related to Controlled Companies | 2,895 | 2,725 | 2,718 | ||||||||||||||
The future minimum rental payments under non-cancellable operating leases, segregating Controlled Companies leases from all other operating leases, were as follows at December 31, 2013: | |||||||||||||||||
Operating Leases | |||||||||||||||||
Controlled Companies | Distribution | Total | |||||||||||||||
Store | Headquarters | Store | Centers & Other | Operating | |||||||||||||
Leases | Lease | Leases | Leases | Leases | |||||||||||||
2014 | $ | 1,684 | $ | 1,198 | $ | 17,886 | $ | 2,908 | $ | 23,676 | |||||||
2015 | 1,396 | 1,234 | 16,500 | 2,320 | 21,450 | ||||||||||||
2016 | 938 | 1,271 | 13,866 | 1,953 | 18,028 | ||||||||||||
2017 | 629 | 1,309 | 10,534 | 1,898 | 14,370 | ||||||||||||
2018 | 526 | 1,348 | 6,450 | 1,936 | 10,260 | ||||||||||||
Thereafter | 1,248 | 1,388 | 8,775 | 12,302 | 23,713 | ||||||||||||
Total minimum lease payments | $ | 6,421 | $ | 7,748 | $ | 74,011 | $ | 23,317 | $ | 111,497 | |||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Equity [Abstract] | ' | ||||||||||
Stockholders' Equity | ' | ||||||||||
NOTE 6. STOCKHOLDERS’ EQUITY | |||||||||||
Net Income per Common Share | |||||||||||
The following table sets forth the computation of basic and diluted net income per common share: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net Income | $ | 77,395 | $ | 47,064 | $ | 26,256 | |||||
Weighted Average Common Shares Outstanding—Basic | 27,484,790 | 27,448,333 | 27,706,629 | ||||||||
Effect of Dilutive Securities: | |||||||||||
Common Stock Equivalents | 429,532 | 583,120 | 673,064 | ||||||||
Weighted Average Common Shares Outstanding—Diluted | 27,914,322 | 28,031,453 | 28,379,693 | ||||||||
Net Income per Common Share—Basic | $ | 2.82 | $ | 1.71 | $ | 0.95 | |||||
Net Income per Common Share—Diluted | $ | 2.77 | $ | 1.68 | $ | 0.93 | |||||
The following have been excluded from the computation of Weighted Average Common Shares Outstanding—Diluted because the effect would be anti-dilutive: | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Stock Options | 103,329 | 16,969 | 845,414 | ||||||||
Restricted Stock Awards | 176 | 4,261 | 9,414 | ||||||||
Stock Repurchase Program | |||||||||||
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, and at December 31, 2013, the Company had $16,866 remaining under this authorization. The Company has not purchased any sto ck through privately negotiated transactions. Purchases under this program were as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
Shares Repurchased | 403,630 | 1,648,777 | |||||||||
Average Price per Share | $ | 84.4 | $ | 29.74 | |||||||
Total Aggregate Costs | $ | 34,066 | $ | 49,068 | |||||||
On January 30, 2014, the Board authorized the repurchase of up to an additional $50,000. | |||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
NOTE 7. STOCK-BASED COMPENSATION | ||||||||||||||
Stock-based compensation expense included in SG&A expenses consisted of: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Stock Options, Restricted Stock Awards and Stock Appreciation Rights | $ | 5,974 | $ | 3,997 | $ | 4,005 | ||||||||
Overview | ||||||||||||||
On May 6, 2011, the Company’s stockholders approved the Lumber Liquidators Holdings, Inc. 2011 Equity Compensation Plan (the “2011 Plan”), which succeeded the Lumber Liquidators Holdings, Inc. 2007 Equity Compensation Plan. The 2011 Plan is an equity incentive plan for employees, non-employee directors and other service providers from which the Company may grant stock options, restricted stock awards, stock appreciation rights (“SARs”) and other equity awards. The total number of shares of common stock authorized for issuance under the 2011 Plan is 5.3 million. As of December 31, 2013, 1.5 million shares of common stock were available for future grants. Stock options granted under the 2011 Plan expire no later than ten years from the date of grant and the exercise price shall not be less than the fair market value of the shares on the date of grant. Vesting periods are assigned to stock options and restricted stock awards on a grant by grant basis at the discretion of the Board. The Company issues new shares of common stock upon exercise of stock options and vesting of restricted stock awards. | ||||||||||||||
The Company also maintains the Lumber Liquidators Holdings, Inc. Outside Directors Deferral Plan under which each of the Company’s non-employee directors has the opportunity to elect annually to defer certain fees until his departure from the Board. A non-employee director may elect to defer up to 100% of his fees and have such fees invested in deferred stock units. Deferred stock units must be settled in common stock upon the director’s departure from the Board. There were 57,724 and 47,334 deferred stock units outstanding at December 31, 2013 and 2012, respectively. | ||||||||||||||
Stock Options | ||||||||||||||
The following table summarizes activity related to stock options: | ||||||||||||||
Shares | Weighted Average | Remaining Average | Aggregate | |||||||||||
Exercise Price | Contractual | Intrinsic | ||||||||||||
Term (Years) | Value | |||||||||||||
Balance, December 31, 2010 | 2,069,517 | $ | 10.67 | 6.6 | $ | 29,635 | ||||||||
Granted | 557,557 | 24.64 | ||||||||||||
Exercised | -377,775 | 8.14 | ||||||||||||
Forfeited | -54,952 | 19.82 | ||||||||||||
Balance, December 31, 2011 | 2,194,347 | $ | 14.42 | 6.6 | $ | 12,746 | ||||||||
Granted | 182,281 | 25.73 | ||||||||||||
Exercised | -937,048 | 11.16 | ||||||||||||
Forfeited | -128,203 | 19.94 | ||||||||||||
Balance, December 31, 2012 | 1,311,377 | $ | 17.79 | 6.5 | $ | 45,954 | ||||||||
Granted | 214,966 | 62.52 | ||||||||||||
Exercised | -718,665 | 14.35 | ||||||||||||
Forfeited | -58,188 | 29.04 | ||||||||||||
Balance, December 31, 2013 | 749,490 | $ | 33.04 | 7.3 | $ | 52,358 | ||||||||
Exercisable at December 31, 2013 | 155,627 | $ | 13.08 | 4.5 | $ | 13,977 | ||||||||
Vested and expected to vest, December 31, 2013 | 713,362 | $ | 32.63 | 7.2 | $ | 50,131 | ||||||||
The aggregate intrinsic value is the difference between the exercise price and the closing price of the Company’s common stock on December 31. The intrinsic value of the stock options exercised during 2013, 2012 and 2011 was $49,137, $22,881 and $5,583, respectively. | ||||||||||||||
As of December 31, 2013, total unrecognized compensation cost related to unvested options was approximately $7,577, net of estimated forfeitures, which is expected to be recognized over a weighted average period of approximately 2.7 years. | ||||||||||||||
The fair value of each stock option award is estimated by management on the date of the grant using the Black-Scholes-Merton option pricing model. The weighted average fair value of options granted during 2013, 2012 and 2011 was $29.66, $12.68 and $12.57, respectively. | ||||||||||||||
The following are the ranges of assumptions for the periods noted: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Expected dividend rate | 0 | % | 0 | % | 0 | % | ||||||||
Expected stock price volatility | 45 | % | 45 | % | 45 | % | ||||||||
Risk-free interest rate | 1.3-2.0 | % | 1.0-1.6 | % | 1.7-3.0 | % | ||||||||
Expected term of options | 6.0-7.5 years | 6.5-7.5 years | 7.5 years | |||||||||||
The expected stock price volatility range is based on a combination of historical volatility of the Company’s stock price and 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 interest rate is based on the implied yield of U.S. Treasury zero-coupon issues with an equivalent remaining term. The expected term of the options represents the estimated period of time until exercise and is determined by considering the contractual terms, vesting schedule and expectations of future employee behavior. | ||||||||||||||
Restricted Stock Awards | ||||||||||||||
The following table summarizes activity related to restricted stock awards: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||
Nonvested, December 31, 2010 | 142,081 | $ | 13.6 | |||||||||||
Granted | 79,236 | 23.28 | ||||||||||||
Released | -56,529 | 21.45 | ||||||||||||
Forfeited | -22,668 | 18.61 | ||||||||||||
Nonvested, December 31, 2011 | 142,120 | $ | 15.08 | |||||||||||
Granted | 66,425 | 27.62 | ||||||||||||
Released | -43,529 | 29.41 | ||||||||||||
Forfeited | -12,611 | 21.58 | ||||||||||||
Nonvested, December 31, 2012 | 152,405 | $ | 15.19 | |||||||||||
Granted | 80,814 | 66.11 | ||||||||||||
Released | -38,362 | 75.73 | ||||||||||||
Forfeited | -16,522 | 37.51 | ||||||||||||
Nonvested, December 31, 2013 | 178,335 | $ | 22.82 | |||||||||||
The fair value of restricted stock awards released during the years ended December 31, 2013, 2012 and 2011 was $3,060, $1,391 and $1,212, respectively. As of December 31, 2013, total unrecognized compensation cost related to unvested restricted stock awards was approximately $2,735, net of estimated forfeitures, which is expected to be recognized over a weighted average period of approximately 2.3 years. | ||||||||||||||
Stock Appreciation Rights | ||||||||||||||
The following table summarizes activity related to SARs: | ||||||||||||||
Shares | Weighted Average | Remaining Average | Aggregate | |||||||||||
Exercise Price | Contractual | Intrinsic | ||||||||||||
Term (Years) | Value | |||||||||||||
Balance, December 31, 2011 | — | $ | — | — | $ | — | ||||||||
Granted | 9,796 | 24.71 | ||||||||||||
Forfeited | -495 | 24.35 | ||||||||||||
Balance, December 31, 2012 | 9,301 | $ | 24.72 | 8.9 | $ | 261 | ||||||||
Granted | 7,533 | 71.84 | ||||||||||||
Forfeited | -678 | 57.95 | ||||||||||||
Balance, December 31, 2013 | 16,156 | $ | 45.3 | 8.7 | $ | 938 | ||||||||
Exercisable at December 31, 2013 | 2,430 | $ | 29.34 | 8.3 | $ | 179 | ||||||||
The fair value method, estimated by management using the Black-Scholes-Merton option pricing model, is used to recognize compensation cost associated with SARs. | ||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
INCOME TAXES | ' | ||||||||||||||||||||
NOTE 8. INCOME TAXES | |||||||||||||||||||||
The components of income before income taxes were as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
United States | $ | 128,482 | $ | 80,565 | $ | 45,259 | |||||||||||||||
Foreign | -2,017 | -2,079 | -2,234 | ||||||||||||||||||
Total Income before Income Taxes | $ | 126,465 | $ | 78,486 | $ | 43,025 | |||||||||||||||
The provision for income taxes consists of the following: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Current | |||||||||||||||||||||
Federal | $ | 43,159 | $ | 26,949 | $ | 12,291 | |||||||||||||||
State | 6,637 | 4,195 | 2,063 | ||||||||||||||||||
Foreign | 120 | 118 | 13 | ||||||||||||||||||
Total Current | 49,916 | 31,262 | 14,367 | ||||||||||||||||||
Deferred | |||||||||||||||||||||
Federal | -745 | -387 | 2,483 | ||||||||||||||||||
State | -101 | -164 | 498 | ||||||||||||||||||
Foreign | — | 711 | -579 | ||||||||||||||||||
Total Deferred | -846 | 160 | 2,402 | ||||||||||||||||||
Total Provision for Income Taxes | $ | 49,070 | $ | 31,422 | $ | 16,769 | |||||||||||||||
The reconciliation of significant differences between income tax expense applying the federal statutory rate and the actual income tax expense at the effective rate are as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Income Tax Expense at Federal Statutory Rate | $ | 44,263 | 35 | % | $ | 27,470 | 35 | % | $ | 15,059 | 35 | % | |||||||||
Increases (Decreases): | |||||||||||||||||||||
State Income Taxes, Net of Federal Income Tax Benefit | 4,146 | 3.3 | % | 2,542 | 3.2 | % | 1,632 | 3.8 | % | ||||||||||||
Valuation Allowance | 498 | 0.4 | % | 1,267 | 1.6 | % | — | 0 | % | ||||||||||||
Foreign Taxes | 328 | 0.2 | % | 283 | 0.4 | % | 208 | 0.5 | % | ||||||||||||
Other | -165 | -0.1 | % | -140 | -0.2 | % | -130 | -0.3 | % | ||||||||||||
Total | $ | 49,070 | 38.8 | % | $ | 31,422 | 40 | % | $ | 16,769 | 39 | % | |||||||||
The tax effects of temporary differences that result in significant portions of the deferred tax accounts are as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Deferred Tax Liabilities: | |||||||||||||||||||||
Prepaid Expenses | $ | 72 | $ | 402 | |||||||||||||||||
Depreciation and Amortization | 13,763 | 12,729 | |||||||||||||||||||
Other | 1,325 | 655 | |||||||||||||||||||
Total Gross Deferred Tax Liabilities | 15,160 | 13,786 | |||||||||||||||||||
Deferred Tax Assets: | |||||||||||||||||||||
Stock-Based Compensation Expense | 3,104 | 3,211 | |||||||||||||||||||
Reserves | 2,697 | 2,782 | |||||||||||||||||||
Employee Benefits | 2,663 | 1,685 | |||||||||||||||||||
Inventory Capitalization | 4,887 | 3,454 | |||||||||||||||||||
Foreign Operations | 1,765 | 1,267 | |||||||||||||||||||
Total Gross Deferred Tax Assets | 15,116 | 12,399 | |||||||||||||||||||
Less Valuation Allowance | -1,765 | -1,267 | |||||||||||||||||||
Total Net Deferred Tax Assets | 13,351 | 11,132 | |||||||||||||||||||
Net Deferred Tax Liability | $ | -1,809 | $ | -2,654 | |||||||||||||||||
In both 2013 and 2012, 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, 2013, the valuation allowance increased by $498 primarily as a result of an increase in the Canadian net operating loss. In future periods, the allowance could be reduced if sufficient evidence exists indicating that it is more likely than not that a portion or all of these deferred tax assets will be realized. | |||||||||||||||||||||
As of December 31, 2013 and 2012, the Company had Canadian net operating loss carryforwards of $7,069 and $5,446, respectively, which begin to expire in 2030. These net operating losses may be carried forward up to 20 years to offset future taxable income. | |||||||||||||||||||||
The Company made income tax payments of $30,154, $29,035 and $7,067 in 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
The Company files income tax returns with the U.S. federal government and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities. The Internal Revenue Service has completed audits of the Company’s federal income tax returns for years through 2009. | |||||||||||||||||||||
On September 13, 2013, Treasury and the Internal Revenue Service issued final regulations regarding the deduction and capitalization of expenditures related to tangible property. The final regulations under Internal Revenue Code Sections 162, 167 and 263(a) apply to amounts paid to acquire, produce or improve tangible property as well as dispositions of such property and are generally effective for tax years beginning on or after January 1, 2014. The Company has evaluated these regulations and determined they will not have a material impact on its consolidated results of operations, cash flows or financial position. | |||||||||||||||||||||
PROFIT_SHARING_PLAN
PROFIT SHARING PLAN | 12 Months Ended |
Dec. 31, 2013 | |
Distribution Of Profit [Abstract] | ' |
PROFIT SHARING PLAN | ' |
NOTE 9. PROFIT SHARING PLAN | |
The Company maintains a profit-sharing plan, qualified under Section 401(k) of the Internal Revenue Code, for all eligible employees. Employees are eligible to participate following the completion of three months of service and attainment of age 21. In 2013, the Company amended the plan to a safe harbor plan, and began matching 100% of the first 3% of employee contributions and 50% of the next 2% of employee contributions. Additionally, employees are now immediately 100% vested in the Company’s matching contributions. Prior to 2013, the Company matched 50% of employee contributions up to 6% of eligible compensation. The Company’s matching contributions, included in SG&A expenses, totaled $1,590, $749 and $620 in 2013, 2012 and 2011, respectively. | |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 10. RELATED PARTY TRANSACTIONS | |
The Company is party to an agreement dated June 1, 2010 with Designers’ Surplus, LLC t/a Cabinets to Go (“CTG”). The Company’s founder is the sole member of an entity that owns a significant interest in CTG. Pursuant to the terms of the agreement, the Company provides certain advertising, marketing and other services. The Company charges CTG for its services at rates believed to be at fair market value. The revenue recognized by the Company from this agreement was nil, $55 and $83 in 2013, 2012 and 2011, respectively. | |
As described in Note 5, the Company leases a number of its store locations and Corporate Headquarters from Controlled Companies. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 11. 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 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. | |
On or about November 26, 2013, Gregg Kiken (“Kiken”) filed a securities class action lawsuit, which was subsequently amended, in the Federal District Court for the Eastern District of Virginia against the Company, its founder, Chief Executive Officer and President, and Chief Financial Officer (collectively, the “Defendants”). In the complaint, Kiken alleges that the Defendants made material false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. In particular, Kiken alleges that the Defendants made material misstatements or omissions related to the Company’s compliance with the federal Lacey Act and the chemical content of its wood products. In addition to attorney’s fees and costs, Kiken seeks to recover damages on behalf of himself and other persons who purchased or otherwise acquired the Company’s stock during the putative class period at allegedly inflated prices and purportedly suffered financial harm as a result. The Company disputes Kiken’s claims and intends to defend the matter vigorously. Given the uncertainty of litigation, the preliminary 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. | |
On or about January 14, 2014, the case of Lambert et al. v. Lumber Liquidators Holdings, Inc. was filed in the United States District Court for the Eastern District of Virginia by four plaintiffs (the “Original Plaintiffs”) on behalf of themselves and a class of persons in Virginia, Alabama and New York who purchased and installed wood flooring from the Company that was sourced, processed or manufactured in China. The Original Plaintiffs claim that the Company made certain misrepresentations regarding the chemical emission levels of the Chinese flooring products that it sells. On February 11, 2014, an amended complaint was filed in which a number of additional plaintiffs and purported classes were added (collectively with the Original Plaintiffs, the “Plaintiffs”) and the originally named defendant was replaced with a new one, Lumber Liquidators, Inc. The amended complaint, which is captioned Williamson et al. v. Lumber Liquidators, Inc., also states additional claims concerning alleged noncompliance with the federal Lacey Act, namely the importation and sale of wood products that were originally harvested in Russia without valid authority. The Plaintiffs accuse the Company of violating the Racketeering and Corrupt Organizations Act and assert dozens of other legal theories under federal and various state laws including but not limited to the Magnuson-Moss Warranty Act, breaching of express and implied warranties, and violating certain state consumer protection and deceptive practice laws. The Plaintiffs seek actual, consequential and punitive damages, pre- and post-judgment interest, attorney’s fees and costs, and certain equitable and injunctive relief. The Company disputes the Plaintiffs’ claims and intends to defend this matter vigorously. Given the uncertainty of litigation, the preliminary 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 is also, 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 Company’s ultimate liability in connection with these matters is not expected to have a material adverse effect on the results of operations, financial position or cash flows. | |
CONDENSED_QUARTERLY_FINANCIAL_
CONDENSED QUARTERLY FINANCIAL INFORMATION (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
CONDENSED QUARTERLY FINANCIAL INFORMATION (unaudited) | ' | ||||||||||||||||
NOTE 12. CONDENSED QUARTERLY FINANCIAL INFORMATION (unaudited) | |||||||||||||||||
The following tables present the Company’s unaudited quarterly results for 2013 and 2012. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||
Net Sales | $ | 230,418 | $ | 257,111 | $ | 254,278 | $ | 258,433 | |||||||||
Gross Profit | 92,997 | 106,079 | 106,375 | 105,531 | |||||||||||||
Selling, General and Administrative Expenses | 67,589 | 72,992 | 73,109 | 71,270 | |||||||||||||
Operating Income | 25,408 | 33,087 | 33,266 | 34,262 | |||||||||||||
Net Income | $ | 15,781 | $ | 20,422 | $ | 20,397 | $ | 20,795 | |||||||||
Net Income per Common Share – Basic | $ | 0.58 | $ | 0.74 | $ | 0.74 | $ | 0.75 | |||||||||
Net Income per Common Share – Diluted | $ | 0.57 | $ | 0.73 | $ | 0.73 | $ | 0.74 | |||||||||
Number of Stores Opened in Quarter | 5 | 7 | 7 | 11 | |||||||||||||
Comparable Store Net Sales Increase | 15.2 | % | 14.9 | % | 17.4 | % | 15.6 | % | |||||||||
Effective Tax Rate | 38.4 | % | 38.6 | % | 38.8 | % | 39.3 | % | |||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||
Net Sales | $ | 188,034 | $ | 210,347 | $ | 204,291 | $ | 210,655 | |||||||||
Gross Profit | 70,137 | 78,480 | 77,886 | 82,282 | |||||||||||||
Selling, General and Administrative Expenses | 56,819 | 58,685 | 57,135 | 57,800 | |||||||||||||
Operating Income | 13,318 | 19,795 | 20,751 | 24,482 | |||||||||||||
Net Income | $ | 8,197 | $ | 12,177 | $ | 12,882 | $ | 13,808 | -1 | ||||||||
Net Income per Common Share – Basic | $ | 0.29 | $ | 0.44 | $ | 0.47 | $ | 0.51 | |||||||||
Net Income per Common Share – Diluted | $ | 0.29 | $ | 0.43 | $ | 0.46 | $ | 0.5 | |||||||||
Number of Stores Opened in Quarter | 4 | 10 | 7 | 4 | |||||||||||||
Comparable Store Net Sales Increase | 7.5 | % | 12.4 | % | 12 | % | 13.2 | % | |||||||||
Effective Tax Rate | 38.6 | % | 38.6 | % | 38 | % | 43.7 | % | |||||||||
________________________________________________________ | |||||||||||||||||
-1 | Net income included $1,267 of income tax expense related to the recording of a full valuation allowance on the net deferred tax assets in Canada in the quarter ended December 31, 2012. | ||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Nature of Business | ' | ||||
Nature of Business | |||||
Lumber Liquidators Holdings, Inc. and its direct and indirect subsidiaries (collectively and, where applicable, individually, the “Company”) engage in business as 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 hardwood, laminate and vinyl plank flooring 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 309 store locations in primary or secondary metropolitan areas in 46 states and nine store locations in Canada at December 31, 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.” | |||||
Organization and Basis of Financial Statement Presentation | ' | ||||
Organization and Basis of Financial Statement Presentation | |||||
The consolidated financial statements of Lumber Liquidators Holdings, Inc., a Delaware corporation, include the accounts of its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. | |||||
Use of Estimates | ' | ||||
Use of Estimates | |||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |||||
Cash and Cash Equivalents | ' | ||||
Cash and Cash Equivalents | |||||
The Company had cash equivalents of $9,333 and $7,664 at December 31, 2013 and 2012, respectively. The Company considers all highly liquid investments with a maturity date of three months or less when purchased to be cash equivalents, of which there was $170 at both December 31, 2013 and 2012. The Company accepts a range of debit and credit cards, and these transactions are generally transmitted to a bank for reimbursement within 24 hours. The payments due from the banks for these debit and credit card transactions are generally received, or settle, within 24 to 48 hours of the transmission date. The Company considers all debit and credit card transactions that settle in less than seven days to be cash and cash equivalents. Amounts due from the banks for these transactions classified as cash and cash equivalents totaled $9,163 and $7,494 at December 31, 2013 and 2012, respectively. | |||||
Credit Programs | ' | ||||
Credit Programs | |||||
Credit is offered to the Company’s customers through a proprietary credit card, the Lumber Liquidators credit card, underwritten by a third party financial institution and at no recourse to the Company. A credit line is offered to the Company’s professional customers through the Lumber Liquidators Commercial Credit Program. This commercial credit program is underwritten by a third party financial institution, generally with no recourse to the Company. | |||||
As part of the credit program, the Company’s customers may use their Lumber Liquidators credit card to tender installation services provided by the Company’s third party installation provider, who is responsible for all credits and program fees for the related transactions. The Company has agreed to indemnify the financial institution against any losses related to these credits or fees. There are no maximum potential future payments under the guarantee. The Company is able to seek recovery from the installation provider of any amounts paid on its behalf. The Company believes that the risk of significant loss from the guarantee of these obligations is remote. | |||||
Fair Value of Financial Instruments | ' | ||||
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 Accounting Standards Codification (“FASB ASC”) 820 fair value hierarchy. | |||||
Merchandise Inventories | ' | ||||
Merchandise Inventories | |||||
The Company values merchandise inventories at the lower of cost or market value. Merchandise cost is determined using the average cost method. All of the hardwood flooring purchased from vendors is either prefinished or unfinished, and in immediate saleable form. The Company adds the finish to, and boxes, various species of unfinished product, to produce certain proprietary products, primarily Bellawood, at its finishing facility. These finishing and boxing costs are included in the average unit cost of related merchandise inventory. The Company maintains an inventory reserve for loss or obsolescence, based on historical results and current sales trends. This reserve was $1,275 and $1,035 at December 31, 2013 and 2012, respectively. | |||||
Impairment of Long-Lived Assets | ' | ||||
Impairment of Long-Lived Assets | |||||
The Company evaluates potential impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets may be impaired, and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. If impairment exists and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets, an impairment loss is recorded based on the difference between the carrying value and fair value of the assets. No impairment charges were recognized in 2013, 2012 or 2011. | |||||
Goodwill and Other Indefinite-Lived Intangibles | ' | ||||
Goodwill and Other Indefinite-Lived Intangibles | |||||
Goodwill represents the costs in excess of the fair value of net assets acquired associated with acquisitions by the Company. Other assets include $800 for an indefinite-lived intangible asset for the phone number 1-800-HARDWOOD and related internet domain names. The Company evaluates these assets for impairment on an annual basis, or whenever events or changes in circumstance indicate that the asset carrying value exceeds its fair value. Based on the analysis performed, the Company has concluded that no impairment in the value of these assets has occurred. | |||||
Self Insurance | ' | ||||
Self Insurance | |||||
The Company is self-insured for certain employee health benefit claims, and beginning in 2013, for certain workers’ compensation claims. The Company estimates a liability for aggregate losses below stop-loss coverage limits based on estimates of the ultimate costs to be incurred to settle known claims and claims incurred but not reported as of the balance sheet date. The estimated liability is not discounted and is based on a number of assumptions and factors including historical and industry trends and economic conditions. This liability could be affected if future occurrences and claims differ from these assumptions and historical trends. As of December 31, 2013 and 2012, an accrual of $1,305 and $679 related to estimated claims was included in other current liabilities, respectively. | |||||
Recognition of Net Sales | ' | ||||
Recognition of Net Sales | |||||
The Company recognizes net sales for products purchased at the time the customer takes possession of the merchandise. Service revenue, primarily installation revenue and freight charges for in-home delivery, is included in net sales and recognized when the service has been rendered. The Company reports sales exclusive of sales taxes collected from customers and remitted to governmental taxing authorities, and net of an allowance for anticipated sales returns based on historical and current sales trends and experience. The sales returns allowance and related changes were not significant for 2013, 2012 or 2011. | |||||
The Company generally requires customers to pay a deposit, equal to approximately half of the retail sales value, when purchasing merchandise inventories not regularly carried in a given store location, or not currently in stock. These deposits are included in customer deposits and store credits until the customer takes possession of the merchandise. | |||||
Cost of Sales | ' | ||||
Cost of Sales | |||||
Cost of sales includes the cost of the product sold, cost of installation services, transportation costs from vendor to the Company’s distribution centers or store locations, any applicable finishing costs related to production of the Company’s proprietary brands, transportation costs from distribution centers to store locations, transportation costs for the delivery of products from store locations to customers, certain costs of quality control procedures, inventory adjustments including shrinkage, and costs to produce samples, reduced by vendor allowances. | |||||
The Company offers a range of warranties from the durability of the finish on its prefinished products to its services provided. These warranties range from one to 100 years. Warranty reserves are based primarily on claims experience, sales history and other considerations, and warranty costs are recorded in cost of sales. This reserve was $876 and $440 at December 31, 2013 and 2012, respectively. | |||||
Vendor allowances primarily consist of volume rebates that are earned as a result of attaining certain purchase levels and reimbursement for the cost of producing samples. Vendor allowances are accrued as earned, with those allowances received as a result of attaining certain purchase levels accrued over the incentive period based on estimates of purchases. Volume rebates earned are initially recorded as a reduction in merchandise inventories and a subsequent reduction in cost of sales when the related product is sold. Reimbursement received for the cost of producing samples is recorded as an offset against cost of sales. | |||||
Advertising Costs | ' | ||||
Advertising Costs | |||||
Advertising costs charged to selling, general and administrative (“SG&A”) expenses, net of vendor allowances, were $75,506, $58,548 and $52,345 in 2013, 2012 and 2011, respectively. The Company uses various types of media to brand its name and advertise its products. Media production costs are generally expensed as incurred, except for direct mail, which is expensed when the finished piece enters the postal system. Media placement costs are generally expensed in the month the advertising occurs, except for contracted endorsements and sports agreements, which are generally expensed ratably over the contract period. Amounts paid in advance are included in prepaid expenses and totaled $2,893 and $1,649 at December 31, 2013 and 2012, respectively. | |||||
Store Opening Costs | ' | ||||
Store Opening Costs | |||||
Costs to open new store locations are charged to SG&A expenses as incurred, net of any vendor support. | |||||
Other Vendor Consideration | ' | ||||
Other Vendor Consideration | |||||
Consideration from non-merchandise vendors, including royalties and rebates, are generally recorded as an offset to SG&A expenses when earned. | |||||
Depreciation and Amortization | ' | ||||
Depreciation and Amortization | |||||
Property and equipment is carried at cost and depreciated on the straight-line method over the estimated useful lives. The estimated useful lives for leasehold improvements are the shorter of the estimated useful lives or the remainder of the lease terms. For leases with optional renewal periods, the Company uses the original lease term, excluding optional renewal periods, to determine the appropriate estimated useful lives. Capitalized software costs are capitalized from the time that technological feasibility is established until the software is ready for use. The estimated useful lives are generally as follows: | |||||
Years | |||||
Buildings and Building Improvements | 15 to 40 | ||||
Property and Equipment | 5 to 10 | ||||
Computer Software and Hardware | 3 to 10 | ||||
Leasehold Improvements | 1 to 15 | ||||
Operating Leases | ' | ||||
Operating Leases | |||||
The Company has operating leases for its stores, Corporate Headquarters, distribution facilities, supplemental office facilities and certain equipment. The lease agreements for certain stores and distribution facilities contain rent escalation clauses, rent holidays and tenant improvement allowances. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses in SG&A expenses on a straight-line basis over the terms of the leases. The difference between the rental expense and rent paid is recorded as deferred rent in the consolidated balance sheets. For tenant improvement allowances, the Company records deferred rent in the consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to rental expense. | |||||
Stock-Based Compensation | ' | ||||
Stock-Based Compensation | |||||
The Company records compensation expense associated with stock options and other forms of equity compensation in accordance with FASB ASC 718. The Company may issue incentive awards in the form of stock options, restricted stock awards and other equity awards to employees and non-employee directors. The Company recognizes expense for its stock-based compensation based on the fair value of the awards that are granted. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. Measured compensation cost is recognized ratably over the requisite service period of the entire related stock-based compensation award. | |||||
Foreign Currency Translation | ' | ||||
Foreign Currency Translation | |||||
The Company’s Canadian operations use the Canadian dollar as the functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average monthly exchange rates during the year. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the consolidated balance sheets. | |||||
Income Taxes | ' | ||||
Income Taxes | |||||
Income taxes are accounted for in accordance with FASB ASC 740 (“ASC 740”). Income taxes are provided for under the asset and liability method and consider differences between the tax and financial accounting bases. The tax effects of these differences are reflected on the balance sheet as deferred income taxes and measured using the effective tax rate expected to be in effect when the differences reverse. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion of the deferred tax asset will not be realized. In evaluating the need for a valuation allowance, the Company takes into account various factors, including the nature, frequency and severity of current and cumulative losses, expected level of future taxable income, the duration of statutory carryforward periods and tax planning alternatives. In future periods, any valuation allowance will be re-evaluated in accordance with ASC 740, and a change, if required, will be recorded through income tax expense in the period such determination is made. | |||||
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of its position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The amount of unrecognized tax benefits was not significant for 2013, 2012 or 2011. The Company classifies interest and penalties related to income tax matters as a component of income tax expense. | |||||
Net Income per Common Share | ' | ||||
Net Income per Common Share | |||||
Basic net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year. Diluted net income per common share is determined by dividing net income by the weighted average number of common shares outstanding during the year, plus the dilutive effect of common stock equivalents, including stock options and restricted stock awards. Common stock and common stock equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options and release of restricted stock awards, except when the effect of their inclusion would be antidilutive. | |||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Estimated Useful Lives Of Property Plant And Equipment | ' | ||||
The estimated useful lives are generally as follows: | |||||
Years | |||||
Buildings and Building Improvements | 15 to 40 | ||||
Property and Equipment | 5 to 10 | ||||
Computer Software and Hardware | 3 to 10 | ||||
Leasehold Improvements | 1 to 15 | ||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
PROPERTY AND EQUIPMENT | ' | |||||||
Property and equipment consisted of: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Land | $ | 4,937 | $ | — | ||||
Property and Equipment | 40,833 | 36,847 | ||||||
Computer Software and Hardware | 38,317 | 33,344 | ||||||
Leasehold Improvements | 22,230 | 16,112 | ||||||
Assets under Construction – Supply Chain | 5,663 | — | ||||||
111,980 | 86,303 | |||||||
Less: Accumulated Depreciation and Amortization | 46,033 | 38,539 | ||||||
Property and Equipment, net | $ | 65,947 | $ | 47,764 | ||||
LEASES_Tables
LEASES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Leases [Abstract] | ' | ||||||||||||||||
Rental Expense | ' | ||||||||||||||||
Rental expense is as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Rental expense | $ | 21,874 | $ | 18,826 | $ | 16,575 | |||||||||||
Rental expense related to Controlled Companies | 2,895 | 2,725 | 2,718 | ||||||||||||||
Future Minimum Rental Payments under Non-Cancellable Operating Leases | ' | ||||||||||||||||
The future minimum rental payments under non-cancellable operating leases, segregating Controlled Companies leases from all other operating leases, were as follows at December 31, 2013: | |||||||||||||||||
Operating Leases | |||||||||||||||||
Controlled Companies | Distribution | Total | |||||||||||||||
Store | Headquarters | Store | Centers & Other | Operating | |||||||||||||
Leases | Lease | Leases | Leases | Leases | |||||||||||||
2014 | $ | 1,684 | $ | 1,198 | $ | 17,886 | $ | 2,908 | $ | 23,676 | |||||||
2015 | 1,396 | 1,234 | 16,500 | 2,320 | 21,450 | ||||||||||||
2016 | 938 | 1,271 | 13,866 | 1,953 | 18,028 | ||||||||||||
2017 | 629 | 1,309 | 10,534 | 1,898 | 14,370 | ||||||||||||
2018 | 526 | 1,348 | 6,450 | 1,936 | 10,260 | ||||||||||||
Thereafter | 1,248 | 1,388 | 8,775 | 12,302 | 23,713 | ||||||||||||
Total minimum lease payments | $ | 6,421 | $ | 7,748 | $ | 74,011 | $ | 23,317 | $ | 111,497 | |||||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 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: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net Income | $ | 77,395 | $ | 47,064 | $ | 26,256 | |||||
Weighted Average Common Shares Outstanding—Basic | 27,484,790 | 27,448,333 | 27,706,629 | ||||||||
Effect of Dilutive Securities: | |||||||||||
Common Stock Equivalents | 429,532 | 583,120 | 673,064 | ||||||||
Weighted Average Common Shares Outstanding—Diluted | 27,914,322 | 28,031,453 | 28,379,693 | ||||||||
Net Income per Common Share—Basic | $ | 2.82 | $ | 1.71 | $ | 0.95 | |||||
Net Income per Common Share—Diluted | $ | 2.77 | $ | 1.68 | $ | 0.93 | |||||
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: | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Stock Options | 103,329 | 16,969 | 845,414 | ||||||||
Restricted Stock Awards | 176 | 4,261 | 9,414 | ||||||||
Purchases under Stock Repurchase Program | ' | ||||||||||
Purchases under this program were as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
Shares Repurchased | 403,630 | 1,648,777 | |||||||||
Average Price per Share | $ | 84.4 | $ | 29.74 | |||||||
Total Aggregate Costs | $ | 34,066 | $ | 49,068 | |||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation Expense | ' | |||||||||||||
Stock-based compensation expense included in SG&A expenses consisted of: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Stock Options, Restricted Stock Awards and Stock Appreciation Rights | $ | 5,974 | $ | 3,997 | $ | 4,005 | ||||||||
Summary of Activity Related to Stock Options | ' | |||||||||||||
The following table summarizes activity related to stock options: | ||||||||||||||
Shares | Weighted Average | Remaining Average | Aggregate | |||||||||||
Exercise Price | Contractual | Intrinsic | ||||||||||||
Term (Years) | Value | |||||||||||||
Balance, December 31, 2010 | 2,069,517 | $ | 10.67 | 6.6 | $ | 29,635 | ||||||||
Granted | 557,557 | 24.64 | ||||||||||||
Exercised | -377,775 | 8.14 | ||||||||||||
Forfeited | -54,952 | 19.82 | ||||||||||||
Balance, December 31, 2011 | 2,194,347 | $ | 14.42 | 6.6 | $ | 12,746 | ||||||||
Granted | 182,281 | 25.73 | ||||||||||||
Exercised | -937,048 | 11.16 | ||||||||||||
Forfeited | -128,203 | 19.94 | ||||||||||||
Balance, December 31, 2012 | 1,311,377 | $ | 17.79 | 6.5 | $ | 45,954 | ||||||||
Granted | 214,966 | 62.52 | ||||||||||||
Exercised | -718,665 | 14.35 | ||||||||||||
Forfeited | -58,188 | 29.04 | ||||||||||||
Balance, December 31, 2013 | 749,490 | $ | 33.04 | 7.3 | $ | 52,358 | ||||||||
Exercisable at December 31, 2013 | 155,627 | $ | 13.08 | 4.5 | $ | 13,977 | ||||||||
Vested and expected to vest, December 31, 2013 | 713,362 | $ | 32.63 | 7.2 | $ | 50,131 | ||||||||
Ranges of Assumptions | ' | |||||||||||||
The following are the ranges of assumptions for the periods noted: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Expected dividend rate | 0 | % | 0 | % | 0 | % | ||||||||
Expected stock price volatility | 45 | % | 45 | % | 45 | % | ||||||||
Risk-free interest rate | 1.3-2.0 | % | 1.0-1.6 | % | 1.7-3.0 | % | ||||||||
Expected term of options | 6.0-7.5 years | 6.5-7.5 years | 7.5 years | |||||||||||
Summary of Activity Related to Restricted Stock Awards | ' | |||||||||||||
The following table summarizes activity related to restricted stock awards: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||
Nonvested, December 31, 2010 | 142,081 | $ | 13.6 | |||||||||||
Granted | 79,236 | 23.28 | ||||||||||||
Released | -56,529 | 21.45 | ||||||||||||
Forfeited | -22,668 | 18.61 | ||||||||||||
Nonvested, December 31, 2011 | 142,120 | $ | 15.08 | |||||||||||
Granted | 66,425 | 27.62 | ||||||||||||
Released | -43,529 | 29.41 | ||||||||||||
Forfeited | -12,611 | 21.58 | ||||||||||||
Nonvested, December 31, 2012 | 152,405 | $ | 15.19 | |||||||||||
Granted | 80,814 | 66.11 | ||||||||||||
Released | -38,362 | 75.73 | ||||||||||||
Forfeited | -16,522 | 37.51 | ||||||||||||
Nonvested, December 31, 2013 | 178,335 | $ | 22.82 | |||||||||||
Summary of Activities Related to Stock Appreciation Rights | ' | |||||||||||||
The following table summarizes activity related to SARs: | ||||||||||||||
Shares | Weighted Average | Remaining Average | Aggregate | |||||||||||
Exercise Price | Contractual | Intrinsic | ||||||||||||
Term (Years) | Value | |||||||||||||
Balance, December 31, 2011 | — | $ | — | — | $ | — | ||||||||
Granted | 9,796 | 24.71 | ||||||||||||
Forfeited | -495 | 24.35 | ||||||||||||
Balance, December 31, 2012 | 9,301 | $ | 24.72 | 8.9 | $ | 261 | ||||||||
Granted | 7,533 | 71.84 | ||||||||||||
Forfeited | -678 | 57.95 | ||||||||||||
Balance, December 31, 2013 | 16,156 | $ | 45.3 | 8.7 | $ | 938 | ||||||||
Exercisable at December 31, 2013 | 2,430 | $ | 29.34 | 8.3 | $ | 179 | ||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Components of Income Before Income Taxes | ' | ||||||||||||||||||||
The components of income before income taxes were as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
United States | $ | 128,482 | $ | 80,565 | $ | 45,259 | |||||||||||||||
Foreign | -2,017 | -2,079 | -2,234 | ||||||||||||||||||
Total Income before Income Taxes | $ | 126,465 | $ | 78,486 | $ | 43,025 | |||||||||||||||
Provision for Income Taxes | ' | ||||||||||||||||||||
The provision for income taxes consists of the following: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Current | |||||||||||||||||||||
Federal | $ | 43,159 | $ | 26,949 | $ | 12,291 | |||||||||||||||
State | 6,637 | 4,195 | 2,063 | ||||||||||||||||||
Foreign | 120 | 118 | 13 | ||||||||||||||||||
Total Current | 49,916 | 31,262 | 14,367 | ||||||||||||||||||
Deferred | |||||||||||||||||||||
Federal | -745 | -387 | 2,483 | ||||||||||||||||||
State | -101 | -164 | 498 | ||||||||||||||||||
Foreign | — | 711 | -579 | ||||||||||||||||||
Total Deferred | -846 | 160 | 2,402 | ||||||||||||||||||
Total Provision for Income Taxes | $ | 49,070 | $ | 31,422 | $ | 16,769 | |||||||||||||||
Reconciliation of Significant Differences Between Income Tax Expenses Applying Federal Statutory Rate to Actual Income Tax Expense at Effective Rate | ' | ||||||||||||||||||||
The reconciliation of significant differences between income tax expense applying the federal statutory rate and the actual income tax expense at the effective rate are as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Income Tax Expense at Federal Statutory Rate | $ | 44,263 | 35 | % | $ | 27,470 | 35 | % | $ | 15,059 | 35 | % | |||||||||
Increases (Decreases): | |||||||||||||||||||||
State Income Taxes, Net of Federal Income Tax Benefit | 4,146 | 3.3 | % | 2,542 | 3.2 | % | 1,632 | 3.8 | % | ||||||||||||
Valuation Allowance | 498 | 0.4 | % | 1,267 | 1.6 | % | — | 0 | % | ||||||||||||
Foreign Taxes | 328 | 0.2 | % | 283 | 0.4 | % | 208 | 0.5 | % | ||||||||||||
Other | -165 | -0.1 | % | -140 | -0.2 | % | -130 | -0.3 | % | ||||||||||||
Total | $ | 49,070 | 38.8 | % | $ | 31,422 | 40 | % | $ | 16,769 | 39 | % | |||||||||
Tax Effects of Temporary Differences Result in Significant Portions of Deferred Tax Accounts | ' | ||||||||||||||||||||
The tax effects of temporary differences that result in significant portions of the deferred tax accounts are as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Deferred Tax Liabilities: | |||||||||||||||||||||
Prepaid Expenses | $ | 72 | $ | 402 | |||||||||||||||||
Depreciation and Amortization | 13,763 | 12,729 | |||||||||||||||||||
Other | 1,325 | 655 | |||||||||||||||||||
Total Gross Deferred Tax Liabilities | 15,160 | 13,786 | |||||||||||||||||||
Deferred Tax Assets: | |||||||||||||||||||||
Stock-Based Compensation Expense | 3,104 | 3,211 | |||||||||||||||||||
Reserves | 2,697 | 2,782 | |||||||||||||||||||
Employee Benefits | 2,663 | 1,685 | |||||||||||||||||||
Inventory Capitalization | 4,887 | 3,454 | |||||||||||||||||||
Foreign Operations | 1,765 | 1,267 | |||||||||||||||||||
Total Gross Deferred Tax Assets | 15,116 | 12,399 | |||||||||||||||||||
Less Valuation Allowance | -1,765 | -1,267 | |||||||||||||||||||
Total Net Deferred Tax Assets | 13,351 | 11,132 | |||||||||||||||||||
Net Deferred Tax Liability | $ | -1,809 | $ | -2,654 | |||||||||||||||||
CONDENSED_QUARTERLY_FINANCIAL_1
CONDENSED QUARTERLY FINANCIAL INFORMATION (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Unaudited Quarterly Results | ' | ||||||||||||||||
The following tables present the Company’s unaudited quarterly results for 2013 and 2012. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||
Net Sales | $ | 230,418 | $ | 257,111 | $ | 254,278 | $ | 258,433 | |||||||||
Gross Profit | 92,997 | 106,079 | 106,375 | 105,531 | |||||||||||||
Selling, General and Administrative Expenses | 67,589 | 72,992 | 73,109 | 71,270 | |||||||||||||
Operating Income | 25,408 | 33,087 | 33,266 | 34,262 | |||||||||||||
Net Income | $ | 15,781 | $ | 20,422 | $ | 20,397 | $ | 20,795 | |||||||||
Net Income per Common Share – Basic | $ | 0.58 | $ | 0.74 | $ | 0.74 | $ | 0.75 | |||||||||
Net Income per Common Share – Diluted | $ | 0.57 | $ | 0.73 | $ | 0.73 | $ | 0.74 | |||||||||
Number of Stores Opened in Quarter | 5 | 7 | 7 | 11 | |||||||||||||
Comparable Store Net Sales Increase | 15.2 | % | 14.9 | % | 17.4 | % | 15.6 | % | |||||||||
Effective Tax Rate | 38.4 | % | 38.6 | % | 38.8 | % | 39.3 | % | |||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||
Net Sales | $ | 188,034 | $ | 210,347 | $ | 204,291 | $ | 210,655 | |||||||||
Gross Profit | 70,137 | 78,480 | 77,886 | 82,282 | |||||||||||||
Selling, General and Administrative Expenses | 56,819 | 58,685 | 57,135 | 57,800 | |||||||||||||
Operating Income | 13,318 | 19,795 | 20,751 | 24,482 | |||||||||||||
Net Income | $ | 8,197 | $ | 12,177 | $ | 12,882 | $ | 13,808 | -1 | ||||||||
Net Income per Common Share – Basic | $ | 0.29 | $ | 0.44 | $ | 0.47 | $ | 0.51 | |||||||||
Net Income per Common Share – Diluted | $ | 0.29 | $ | 0.43 | $ | 0.46 | $ | 0.5 | |||||||||
Number of Stores Opened in Quarter | 4 | 10 | 7 | 4 | |||||||||||||
Comparable Store Net Sales Increase | 7.5 | % | 12.4 | % | 12 | % | 13.2 | % | |||||||||
Effective Tax Rate | 38.6 | % | 38.6 | % | 38 | % | 43.7 | % | |||||||||
________________________________________________________ | |||||||||||||||||
-1 | Net income included $1,267 of income tax expense related to the recording of a full valuation allowance on the net deferred tax assets in Canada in the quarter ended December 31, 2012. | ||||||||||||||||
Recovered_Sheet1
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Organization And Business Operations [Line Items] | ' | ' | ' |
Number of canadian stores | 9 | ' | ' |
Number of domestic Stores | 309 | ' | ' |
Number of states in which stores operates | 46 | ' | ' |
Cash equivalents | $9,333 | $7,664 | ' |
Due from Banks | 9,163 | 7,494 | ' |
Inventory Reserves | 1,275 | 1,035 | ' |
Indefinite-lived intangible asset for the phone number 1-800-HARDWOOD and related internet domain names | 800 | ' | ' |
Self insurance reserve | 1,305 | 679 | ' |
Maximum durability of the products | '100 years | ' | ' |
Minimum durability of the products | '1 year | ' | ' |
Warranty reserve | 876 | 440 | ' |
Advertising cost, net of vendor allowances | 75,506 | 58,548 | 52,345 |
Prepaid advertising costs | 2,893 | 1,649 | ' |
Short-term Investments | ' | ' | ' |
Organization And Business Operations [Line Items] | ' | ' | ' |
Cash equivalents | $170 | $170 | ' |
Estimated_Useful_Lives_Detail
Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Maximum | Buildings and Building Improvements | ' |
Estimated useful life in years | '40 years |
Maximum | Computer Software and Hardware | ' |
Estimated useful life in years | '10 years |
Maximum | Leasehold Improvements | ' |
Estimated useful life in years | '15 years |
Minimum | Buildings and Building Improvements | ' |
Estimated useful life in years | '15 years |
Minimum | Computer Software and Hardware | ' |
Estimated useful life in years | '3 years |
Minimum | Leasehold Improvements | ' |
Estimated useful life in years | '1 year |
Property and Equipment | Maximum | ' |
Estimated useful life in years | '10 years |
Property and Equipment | Minimum | ' |
Estimated useful life in years | '5 years |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2011 | Dec. 31, 2011 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ' | ' | ' |
Business acquisition cost of acquired entity purchases price | $8,300 | ' | ' |
Payments to acquire businesses, Gross | 4,700 | ' | ' |
Business combination, Acquisition related costs | ' | 600 | ' |
Business acquisition purchases price allocation goodwill amount | ' | ' | $8,643 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $111,980 | $86,303 |
Less: Accumulated Depreciation and Amortization | 46,033 | 38,539 |
Property and Equipment, net | 65,947 | 47,764 |
Property and Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 40,833 | 36,847 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 4,937 | 0 |
Computer Software and Hardware | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 38,317 | 33,344 |
Leasehold Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 22,230 | 16,112 |
Assets under Construction - Supply Chain | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $5,663 | $0 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Capitalized computer software, Gross | $28,391 | $24,398 | ' |
Capitalized computer software, Amortization | $2,659 | $2,388 | $2,094 |
Revolving_Credit_Agreement_Add
Revolving Credit Agreement - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ' |
Revolving credit facilities borrowing capacity | $50,000 |
Revolving credit facility expiration date | 21-Feb-17 |
Percentage of unused credit facility fee | 0.10% |
Revolver credit facility interest rate above LIBOR | 1.13% |
Letter of Credit | ' |
Line of Credit Facility [Line Items] | ' |
Revolving credit facilities borrowing capacity | 10,000 |
Revolving credit facility current borrowing capacity | $2,289 |
Leases_Additional_Information_
Leases - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Controlled Companies | Controlled Companies | Controlled Companies | ||
Store | Store | Store | ||
Operating Leased Assets [Line Items] | ' | ' | ' | ' |
Operating lease period | '5 years | ' | ' | ' |
Lease Expiration Date | 31-Mar-15 | ' | ' | ' |
Operating lease renewal period | '5 years | ' | ' | ' |
Number of leased stores | ' | 29 | 27 | 25 |
Percentage of store lease in operation | ' | 9.40% | 9.70% | 9.50% |
Rental_Expense_Detail
Rental Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating leases rent expense | $21,874 | $18,826 | $16,575 |
Controlled Companies | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating leases rent expense | $2,895 | $2,725 | $2,718 |
Future_Minimum_Rental_Payments
Future Minimum Rental Payments under Non-Cancellable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2014 | $23,676 |
2015 | 21,450 |
2016 | 18,028 |
2017 | 14,370 |
2018 | 10,260 |
Thereafter | 23,713 |
Total minimum lease payments | 111,497 |
Stores | ' |
Operating Leased Assets [Line Items] | ' |
2014 | 17,886 |
2015 | 16,500 |
2016 | 13,866 |
2017 | 10,534 |
2018 | 6,450 |
Thereafter | 8,775 |
Total minimum lease payments | 74,011 |
Distribution Centers & Other Leases | ' |
Operating Leased Assets [Line Items] | ' |
2014 | 2,908 |
2015 | 2,320 |
2016 | 1,953 |
2017 | 1,898 |
2018 | 1,936 |
Thereafter | 12,302 |
Total minimum lease payments | 23,317 |
Controlled Companies | Headquarters | ' |
Operating Leased Assets [Line Items] | ' |
2014 | 1,198 |
2015 | 1,234 |
2016 | 1,271 |
2017 | 1,309 |
2018 | 1,348 |
Thereafter | 1,388 |
Total minimum lease payments | 7,748 |
Controlled Companies | Stores | ' |
Operating Leased Assets [Line Items] | ' |
2014 | 1,684 |
2015 | 1,396 |
2016 | 938 |
2017 | 629 |
2018 | 526 |
Thereafter | 1,248 |
Total minimum lease payments | $6,421 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Net Income Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net Income | $20,795 | $20,397 | $20,422 | $15,781 | $13,808 | [1] | $12,882 | $12,177 | $8,197 | $77,395 | $47,064 | $26,256 |
Weighted Average Common Shares Outstanding-Basic | ' | ' | ' | ' | ' | ' | ' | ' | 27,484,790 | 27,448,333 | 27,706,629 | |
Effect of Dilutive Securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Common Stock Equivalents | ' | ' | ' | ' | ' | ' | ' | ' | 429,532 | 583,120 | 673,064 | |
Weighted Average Common Shares Outstanding-Diluted | ' | ' | ' | ' | ' | ' | ' | ' | 27,914,322 | 28,031,453 | 28,379,693 | |
Net Income per Common Share - Basic | $0.75 | $0.74 | $0.74 | $0.58 | $0.51 | $0.47 | $0.44 | $0.29 | $2.82 | $1.71 | $0.95 | |
Net Income per Common Share - Diluted | $0.74 | $0.73 | $0.73 | $0.57 | $0.50 | $0.46 | $0.43 | $0.29 | $2.77 | $1.68 | $0.93 | |
[1] | Net income included $1,267 of income tax expense related to the recording of a full valuation allowance on the net deferred tax assets in Canada in the quarter ended December 31, 2012. |
AntiDilutive_Securities_Exclud
Anti-Dilutive Securities Excluded from Computation of Weighted Average Common Shares Outstanding-Diluted (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Options | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities excluded from computation of earning per share | 103,329 | 16,969 | 845,414 |
Restricted Stock Awards | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities excluded from computation of earning per share | 176 | 4,261 | 9,414 |
Purchases_under_Stock_Repurcha
Purchases under Stock Repurchase Program (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' |
Total Aggregate Costs | $34,830 | $49,436 | $249 |
Stock Repurchase Program | ' | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' |
Shares Repurchased | 403,630 | 1,648,777 | ' |
Average Price per Share | $84.40 | $29.74 | ' |
Total Aggregate Costs | $34,066 | $49,068 | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (Stock Repurchase Program, USD $) | 12 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 30, 2014 |
Subsequent Event | |||
Stock Repurchase Programs [Line Items] | ' | ' | ' |
Common stock repurchased, authorized amount | ' | $100,000 | $50,000 |
Common stock repurchased, remaining authorized amount | $16,866 | ' | ' |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Based Compensation Activity [Line Items] | ' | ' | ' |
Share Based Compensation | $5,974 | $3,997 | $4,005 |
Stock Options, Restricted Stock Awards and StockAppreciation Rights | ' | ' | ' |
Stock Based Compensation Activity [Line Items] | ' | ' | ' |
Share Based Compensation | $5,974 | $3,997 | $4,005 |
Summary_of_Activity_Related_to
Summary of Activity Related to Stock Options (Detail) (Stock Option, USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Stock Option | ' | ' | ' | ' |
Shares outstanding | ' | ' | ' | ' |
Beginning Balance | 1,311,377 | 2,194,347 | 2,069,517 | ' |
Granted | 214,966 | 182,281 | 557,557 | ' |
Exercised | -718,665 | -937,048 | -377,775 | ' |
Forfeited | -58,188 | -128,203 | -54,952 | ' |
Ending Balance | 749,490 | 1,311,377 | 2,194,347 | 2,069,517 |
Ending Balance, Exercisable | 155,627 | ' | ' | ' |
Ending Balance, Vested and expected to vest | 713,362 | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' |
Beginning Balance | $17.79 | $14.42 | $10.67 | ' |
Granted | $62.52 | $25.73 | $24.64 | ' |
Exercised | $14.35 | $11.16 | $8.14 | ' |
Forfeited | $29.04 | $19.94 | $19.82 | ' |
Ending Balance | $33.04 | $17.79 | $14.42 | $10.67 |
Ending Balance, Exercisable | $13.08 | ' | ' | ' |
Ending Balance, Vested and expected to vest | $32.63 | ' | ' | ' |
Remaining Average Contractual Term (Years) for outstanding shares | ' | ' | ' | ' |
Remaining Average Contractual Term (Years) for outstanding shares | '7 years 3 months 18 days | '6 years 6 months | '6 years 7 months 6 days | '6 years 7 months 6 days |
Remaining Average Contractual Term (Years), for exercisable shares | '4 years 6 months | ' | ' | ' |
Remaining Average Contractual Term (Years), Vested and expected to vest | '7 years 2 months 12 days | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Aggregate Intrinsic Value | $52,358 | $45,954 | $12,746 | $29,635 |
Aggregate Intrinsic Value, Exercisable | 13,977 | ' | ' | ' |
Aggregate Intrinsic Value, Vested and expected to vest | $50,131 | ' | ' | ' |
Range_of_Assumptions_Detail
Range of Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Stock Options [Line Items] | ' | ' | ' |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Expected stock price volatility | 45.00% | 45.00% | 45.00% |
Risk-free interest rate, minimum | 1.30% | 1.00% | 1.70% |
Risk-free interest rate, maximum | 2.00% | 1.60% | 3.00% |
Expected term of options | ' | ' | '7 years 6 months |
Minimum | ' | ' | ' |
Schedule Of Stock Options [Line Items] | ' | ' | ' |
Expected term of options | '6 years | '6 years 6 months | ' |
Maximum | ' | ' | ' |
Schedule Of Stock Options [Line Items] | ' | ' | ' |
Expected term of options | '7 years 6 months | '7 years 6 months | ' |
Summary_of_Activity_Related_to1
Summary of Activity Related to Restricted Stock Awards (Detail) (Restricted Stock Award [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock Award [Member] | ' | ' | ' |
Shares outstanding | ' | ' | ' |
Beginning Balance | 152,405 | 142,120 | 142,081 |
Granted | 80,814 | 66,425 | 79,236 |
Released | -38,362 | -43,529 | -56,529 |
Forfeited | -16,522 | -12,611 | -22,668 |
Ending Balance | 178,335 | 152,405 | 142,120 |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Beginning Balance | $15.19 | $15.08 | $13.60 |
Granted | $66.11 | $27.62 | $23.28 |
Released | $75.73 | $29.41 | $21.45 |
Forfeited | $37.51 | $21.58 | $18.61 |
Ending Balance | $22.82 | $15.19 | $15.08 |
Summary_of_Activities_Related_
Summary of Activities Related to Stock Appreciation Rights (Detail) (Stock Appreciation Rights (SARs), USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Appreciation Rights (SARs) | ' | ' | ' |
Shares outstanding | ' | ' | ' |
Beginning Balance | 9,301 | 0 | ' |
Granted | 7,533 | 9,796 | ' |
Forfeited | -678 | -495 | ' |
Ending Balance | 16,156 | 9,301 | 0 |
Ending Balance, Exercisable | 2,430 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Beginning Balance | $24.72 | $0 | ' |
Granted | $71.84 | $24.71 | ' |
Forfeited | $57.95 | $24.35 | ' |
Ending Balance | $45.30 | $24.72 | $0 |
Remaining average contractual term | ' | ' | ' |
Remaining average contractual term | '8 years 8 months 12 days | '8 years 10 months 24 days | '0 years |
Remaining average contractual term, Exercisable | '8 years 3 months 18 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Aggregate intrinsic value | $938 | $261 | $0 |
Aggregate intrinsic value, Exercisable | $179 | ' | ' |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Based Compensation Activity [Line Items] | ' | ' | ' |
Stock options exercised intrinsic value | $49,137 | $22,881 | $5,583 |
Unrecognized compensation cost related to unvested option | 7,577 | ' | ' |
Weighted average period of recognition | '2 years 8 months 12 days | ' | ' |
Weighted average fair value of option granted | $29.66 | $12.68 | $12.57 |
2011 Plan | ' | ' | ' |
Stock Based Compensation Activity [Line Items] | ' | ' | ' |
Common Stock Shares Authorized for issuance | 5,300,000 | ' | ' |
Common stock available for future grant | 1,500,000 | ' | ' |
2011 Plan | Maximum | ' | ' | ' |
Stock Based Compensation Activity [Line Items] | ' | ' | ' |
Share based compensation stock options expiration period | '10 years | ' | ' |
Non Employee Director | ' | ' | ' |
Stock Based Compensation Activity [Line Items] | ' | ' | ' |
Deferred stock units outstanding | 57,724 | 47,334 | ' |
Non Employee Director | Maximum | ' | ' | ' |
Stock Based Compensation Activity [Line Items] | ' | ' | ' |
Deferred percentage of director fees invested in deferred stock units | 100.00% | ' | ' |
Restricted Stock Award | ' | ' | ' |
Stock Based Compensation Activity [Line Items] | ' | ' | ' |
Weighted average period of recognition | '2 years 3 months 18 days | ' | ' |
Fair value of restricted stock awards released | 3,060 | 1,391 | 1,212 |
Unrecognized compensation cost related to unvested restricted stock awards | $2,735 | ' | ' |
Components_of_Income_Before_In
Components of Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Income Before Income Taxes [Line Items] | ' | ' | ' |
United States | $128,482 | $80,565 | $45,259 |
Foreign | -2,017 | -2,079 | -2,234 |
Income Before Income Taxes | $126,465 | $78,486 | $43,025 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current | ' | ' | ' |
Federal | $43,159 | $26,949 | $12,291 |
State | 6,637 | 4,195 | 2,063 |
Foreign | 120 | 118 | 13 |
Total Current | 49,916 | 31,262 | 14,367 |
Deferred | ' | ' | ' |
Federal | -745 | -387 | 2,483 |
State | -101 | -164 | 498 |
Foreign | 0 | 711 | -579 |
Total Deferred | -846 | 160 | 2,402 |
Total Provision for Income Taxes | $49,070 | $31,422 | $16,769 |
Effective_Income_Tax_Reconcili
Effective Income Tax Reconciliation (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation Of Effective Income Tax Rate [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Expense at Federal Statutory Rate | ' | ' | ' | ' | ' | ' | ' | ' | $44,263 | $27,470 | $15,059 |
State Income Taxes, Net of Federal Income Tax Benefit | ' | ' | ' | ' | ' | ' | ' | ' | 4,146 | 2,542 | 1,632 |
Valuation Allowance | ' | ' | ' | ' | ' | ' | ' | ' | 498 | 1,267 | 0 |
Foreign Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 328 | 283 | 208 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | -165 | -140 | -130 |
Total Provision for Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | $49,070 | $31,422 | $16,769 |
Income Tax Expense at Federal Statutory Rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
State Income Taxes, Net of Federal Income Tax Benefit | ' | ' | ' | ' | ' | ' | ' | ' | 3.30% | 3.20% | 3.80% |
Valuation Allowance | ' | ' | ' | ' | ' | ' | ' | ' | 0.40% | 1.60% | 0.00% |
Foreign Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 0.20% | 0.40% | 0.50% |
Other | ' | ' | ' | ' | ' | ' | ' | ' | -0.10% | -0.20% | -0.30% |
Total | 39.30% | 38.80% | 38.60% | 38.40% | 43.70% | 38.00% | 38.60% | 38.60% | 38.80% | 40.00% | 39.00% |
Tax_Effects_of_Temporary_Diffe
Tax Effects of Temporary Differences Result in Significant Portions of Deferred Tax Accounts (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Liabilities: | ' | ' |
Prepaid Expenses | $72 | $402 |
Depreciation and Amortization | 13,763 | 12,729 |
Other | 1,325 | 655 |
Total Gross Deferred Tax Liabilities | 15,160 | 13,786 |
Deferred Tax Assets: | ' | ' |
Stock-Based Compensation Expense | 3,104 | 3,211 |
Reserves | 2,697 | 2,782 |
Employee Benefits | 2,663 | 1,685 |
Inventory Capitalization | 4,887 | 3,454 |
Foreign Operations | 1,765 | 1,267 |
Total Gross Deferred Tax Assets | 15,116 | 12,399 |
Less Valuation Allowance | -1,765 | -1,267 |
Total Net Deferred Tax Assets | 13,351 | 11,132 |
Net Deferred Tax Liability | ($1,809) | ($2,654) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Income tax paid | $30,154 | $29,035 | $7,067 |
Operating loss carryforwards, valuation allowance increased | 498 | 1,267 | 0 |
Canada | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Net operating losses carryforwards | $7,069 | $5,446 | ' |
Operating loss carryforwards, expiration year | '2030 | ' | ' |
Operating loss carryforwards, offset period | '20 years | ' | ' |
Profit_Sharing_Plan_Additional
Profit Sharing Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Age | |||
Distribution Of Profits [Line Items] | ' | ' | ' |
Employer matching contribution percentage | 100.00% | ' | ' |
Employer matching contribution Additional percentage | 50.00% | 50.00% | ' |
Eligible service age for profit-sharing plan | 21 | ' | ' |
Eligible service period for profit-sharing plan | '3 months | ' | ' |
Employer contribution percentage | 3.00% | ' | ' |
Employer contribution Additional percentage | 2.00% | 6.00% | ' |
Company matching contribution to benefit plans | $1,590 | $749 | $620 |
Company matching contribution additional percentage | 100.00% | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue recognized from related party | $0 | $55 | $83 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Minimum | ' |
Loss Contingencies [Line Items] | ' |
Damages sought by Plaintiff, value | $100 |
Maximum | ' |
Loss Contingencies [Line Items] | ' |
Damages sought by Plaintiff, value | $1,000 |
Unaudited_Quarterly_Results_De
Unaudited Quarterly Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Store | Store | Store | Store | Store | Store | Store | Store | |||||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net Sales | $258,433 | $254,278 | $257,111 | $230,418 | $210,655 | $204,291 | $210,347 | $188,034 | $1,000,240 | $813,327 | $681,587 | |
Gross Profit | 105,531 | 106,375 | 106,079 | 92,997 | 82,282 | 77,886 | 78,480 | 70,137 | 410,983 | 308,785 | 240,675 | |
Selling, General and Administrative Expenses | 71,270 | 73,109 | 72,992 | 67,589 | 57,800 | 57,135 | 58,685 | 56,819 | 284,960 | 230,439 | 198,237 | |
Operating Income | 34,262 | 33,266 | 33,087 | 25,408 | 24,482 | 20,751 | 19,795 | 13,318 | 126,023 | 78,346 | 42,438 | |
Net Income | $20,795 | $20,397 | $20,422 | $15,781 | $13,808 | [1] | $12,882 | $12,177 | $8,197 | $77,395 | $47,064 | $26,256 |
Net Income per Common Share - Basic | $0.75 | $0.74 | $0.74 | $0.58 | $0.51 | $0.47 | $0.44 | $0.29 | $2.82 | $1.71 | $0.95 | |
Net Income per Common Share - Diluted | $0.74 | $0.73 | $0.73 | $0.57 | $0.50 | $0.46 | $0.43 | $0.29 | $2.77 | $1.68 | $0.93 | |
Number of Stores Opened in Quarter | 11 | 7 | 7 | 5 | 4 | 7 | 10 | 4 | ' | ' | ' | |
Comparable Store Net Sales Increase | 15.60% | 17.40% | 14.90% | 15.20% | 13.20% | 12.00% | 12.40% | 7.50% | ' | ' | ' | |
Effective Tax Rate | 39.30% | 38.80% | 38.60% | 38.40% | 43.70% | 38.00% | 38.60% | 38.60% | 38.80% | 40.00% | 39.00% | |
[1] | Net income included $1,267 of income tax expense related to the recording of a full valuation allowance on the net deferred tax assets in Canada in the quarter ended December 31, 2012. |
Unaudited_Quarterly_Results_Pa
Unaudited Quarterly Results (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Quarterly Financial Information [Line Items] | ' | ' |
Deferred tax assets, valuation allowance | $1,765 | $1,267 |