Lumber Liquidators announced financial results for the fourth quarter and full year ended December 31, 2015. Q4 net sales were $234.8 million.
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This is a decrease of 13.7% from the fourth quarter of 2014, including a comparable store net sales decline of 17.2% due to a 15.6% decrease in the number of customers invoiced and a 1.6% decrease in the average sale.
Non-comparable store net sales increased $9.6 million over the comparable prior year period. The company opened five new stores during the fourth quarter of 2015.
Gross margin was 23.0% in the fourth quarter of 2015 as compared with 39.2% in the prior year period. This decrease is primarily attributable to a $22.2 million reduction in the carrying value of the company's current inventory of laminate flooring sourced from China and related moldings.
Gross margin was further impacted by a lower average selling price and lower traffic versus the prior year period.
Selling, general and administrative (SG&A) expenses in the fourth quarter of 2015 increased $7.7 million, or 9.9%, from the fourth quarter of 2014 to $85.5 million. This rise was primarily due to a $6.5 million increase in certain legal and professional fees and related accruals.
SG&A expenses were 36.4% of net sales in the fourth quarter of 2015, compared to 28.6% of net sales in the fourth quarter of 2014.
Net loss was $19.8 million, or a loss of $0.73 per diluted share, in the fourth quarter of 2015 as compared to net income of $17.3 million, or $0.64 per diluted share, in the fourth quarter of 2014.
Cash and cash equivalents at December 31, 2015 totaled $26.7 million compared with $20.3 million at December 31, 2014. At December 31, 2015, the company had $20.0 million outstanding on its revolving credit facility.
Full year results
Net sales decreased 6.6% to $978.8 million in 2015 from $1.05 billion in 2014. Comparable store net sales decreased $116.2 million, or 11.1%, and net sales in non-comparable stores added $47.6 million versus the prior year.
The company opened 23 new stores in 2015, and as of December 31, 2015, operated 374 stores in the United States and Canada.
Gross profit decreased 33.3% to $278.9 million from $418.2 million in 2014. SG&A expenses increased as a percentage of net sales to 37.0% in 2015, compared to 30.0% in 2014.
Net loss was $56.4 million, or $2.08 per diluted share, in 2015 compared to net income of $63.4 million, or $2.31 per diluted share, in the prior year. ■