LL Flooring Holdings, Inc. (NYSE:LL) Q3 2023 Results Conference Call November 8, 2023 8:00 AM ET Company Participants Bruce Williams - ICR Charles Tyson - President & Chief Executive Officer Bob Madore - Chief Financial Officer Andrew Wadhams - Senior Vice President Retail & Commercial Sales Conference Call Participants Laura Champine - Loop Capital Operator Good morning or good afternoon, and welcome to the LL Flooring 3Q '23 Earnings Call. My name is Adam, and I'll be your operator for today. [Operator In ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33767 LL Flooring Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 27-1310817 (State or other jurisdicti ...

LL Flooring Holdings, Inc. (NYSE:LL) Q2 2023 Earnings Conference Call August 9, 2023 8:00 AM ET Company Participants Bruce Williams - ICR Charles Tyson - President & Chief Executive Officer Bob Madore - Chief Financial Officer Andrew Wadhams - Senior Vice President Retail & Commercial Sales Conference Call Participants Laura Champine - Loop Capital Operator Hello, everyone, and welcome to the LL Flooring Second Quarter Earnings Conference Call. My name is Bruno, and I'll be I'll be operating your call today ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33767 LL Flooring Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 27-1310817 (State or other jurisdiction of ...

LL Flooring Holdings, Inc. (NYSE:LL) Q1 2023 Earnings Conference Call May 8, 2023 8:00 AM ET Company Participants Bruce Williams - ICR Charles Tyson - President and Chief Executive Officer Terry Blanchard - Interim Chief Financial Officer Conference Call Participants Laura Champine - Loop Capital Operator Good morning. Thank you for attending today’s LL Flooring Holdings First Quarter 2023 Earnings Conference Call. My name is Megan, and I’ll be your moderator for today’s call. [Operator Instructions] I woul ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33767 LL Flooring Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 27-1310817 (State or other jurisdiction o ...

LL Flooring Holdings, Inc. (NYSE:LL) Q4 2022 Earnings Conference Call March 1, 2023 8:00 AM ET Company Participants Julie MacMedan – Vice President-Investor Relations Charles Tyson – President and Chief Executive Officer Conference Call Participants Laura Champine – Loop Capital Operator Ladies and gentlemen, welcome to the LL Flooring Fourth Quarter 2022 Results Call. My name is Glen, I will be the moderator for today’s call. [Operator Instructions] I will now hand you over to your host, Julie MacMedan, V ...

Sales Performance - Net sales decreased by 3.6% to $1,110.7 million in 2022, with comparable store sales down 5.8%[87] - Net sales decreased by $41.6 million (3.6%) to $1,110.7 million in 2022 from $1,152.3 million in 2021, with comparable store net sales decreasing by 5.8%[96] - Net Sales for 2022 decreased to $1,110,679 thousand from $1,152,344 thousand in 2021, a decline of 3.6%[145] - Net Merchandise Sales for 2022 were $957,927 thousand, down 3.6% from $993,943 thousand in 2021[145] - Net Services Sales for 2022 were $152,752 thousand, down 3.6% from $158,401 thousand in 2021[145] - Sales mix by major product category in 2022: Manufactured Products (48%, $537.081 million), Solid and Engineered Hardwood (24%, $261.602 million), Moldings and Accessories (14%, $159.244 million), Installation and Delivery Services (14%, $152.752 million)[172] Gross Profit and Margin - Gross profit decreased by $38.8 million to $401.2 million, with gross margin declining 210 basis points to 36.1%[87] - Adjusted gross margin (non-GAAP) decreased 140 basis points to 36.2% in 2022[87] - Gross profit decreased by $38.8 million to $401.2 million in 2022, with gross margin decreasing to 36.1% from 38.2% in 2021[97] - Adjusted gross profit (non-GAAP) decreased by $32.2 million to $401.6 million in 2022, with adjusted gross margin decreasing to 36.2% from 37.6% in 2021[97] - Gross Profit for 2022 decreased to $401,163 thousand from $440,042 thousand in 2021, a decline of 8.8%[145] Operating Performance - Operating loss was $11.7 million in 2022, compared to operating income of $52.7 million in 2021[87] - Adjusted operating loss (non-GAAP) was $1.8 million, with adjusted operating margin (non-GAAP) decreasing 490 basis points to (0.2)%[87] - Operating loss was $11.7 million in 2022, compared to operating income of $52.7 million in 2021[101] - Adjusted operating loss (non-GAAP) was $1.8 million in 2022, with adjusted operating margin decreasing by 490 basis points to (0.2)%[101] - Operating Loss for 2022 was $(11,722) thousand compared to an Operating Income of $52,686 thousand in 2021[145] Net Income and Loss - Net loss was $12.1 million, or $0.42 per diluted share, compared to net income of $41.7 million, or $1.41 per diluted share, in 2021[87] - Net loss was $12.1 million, or $0.42 per diluted share, in 2022 compared to net income of $41.7 million, or $1.41 per diluted share, in 2021[107] - Adjusted loss per diluted share (non-GAAP) was $0.17 in 2022 compared to adjusted earnings per diluted share of $1.39 in 2021[107] - Net Loss Income for 2022 was $(12.1) million, compared to a Net Income of $41.7 million in 2021[108] - Adjusted Loss Earnings for 2022 were $(4.8) million, compared to Adjusted Earnings of $41.1 million in 2021[108] - Net Loss for 2022 was $(12,081) thousand, compared to a Net Income of $41,698 thousand in 2021[145] - Net loss for 2022 was $12.1 million, compared to a net income of $41.7 million in 2021 and $61.4 million in 2020[155] - Net loss for the year ended December 31, 2022 was $12.1 million, compared to net income of $41.7 million in 2021 and $61.4 million in 2020[198] Expenses - Selling, general and administrative (SG&A) expenses increased by $25.5 million to $412.9 million, with SG&A as a percentage of net sales rising 360 basis points to 37.2%[87] - SG&A expenses increased by $25.5 million to $412.9 million in 2022, with SG&A as a percentage of net sales increasing by 360 basis points to 37.2%[99] - Adjusted SG&A (non-GAAP) increased by $23.2 million to $403.3 million in 2022, with adjusted SG&A as a percentage of sales increasing by 330 basis points to 36.3%[99] - Advertising costs in 2022 were $65.4 million, compared to $61.9 million in 2021 and $62.2 million in 2020[175] - Total rent expense for operating leases was $39.5 million in 2022, $37.1 million in 2021, and $36.6 million in 2020[193] Liquidity and Cash Flow - Liquidity decreased by $91.9 million to $135.6 million as of December 31, 2022, primarily due to inventory rebuilding[89] - Cash and cash equivalents as of December 31, 2022, were $10.8 million, with $124.8 million available under the Credit Agreement[109] - Net Cash Used in Operating Activities for 2022 was $(116.7) million, primarily due to inventory rebuilding[112] - Net Cash Provided by Financing Activities in 2022 was $64.3 million, compared to $(104.1) million used in 2021[112] - Cash and Cash Equivalents decreased significantly from $85.189 million in 2021 to $10.8 million in 2022[142] - Net cash used in operating activities was $116.7 million in 2022, compared to $38.7 million provided in 2021[155] - The company borrowed $289.5 million on its credit agreement in 2022, while paying down $217.5 million[155] Inventory - Merchandise Inventories increased by $77.9 million from 2021 to 2022, reaching $332.3 million[112] - Inventory Available for Sale per Store increased to $696 in 2022 from $467 in 2021[113] - Merchandise Inventories increased from $254.385 million in 2021 to $332.296 million in 2022[142] - Merchandise inventories were rebuilt in 2022 after COVID-19 supply chain constraints, with an inventory reserve of $5.5 million at year-end[165] - Inventory obsolescence reserves were $1.6 million in 2022, down from $2.3 million in 2021[155] Credit and Debt - The Company had $72.0 million outstanding under its Revolving Credit Facility with a weighted average interest rate of 5.1% as of December 31, 2022[119] - The total size of the Credit Agreement is $200.0 million, with an option to increase the Revolving Credit Facility to a maximum of $250.0 million, maturing on April 30, 2026[191] - As of December 31, 2022, there was $72.0 million outstanding under the Revolving Credit Facility, with $124.8 million of availability remaining[192] - The weighted average interest rate applicable to the company's Revolving Credit Facility for the twelve months ended December 31, 2022 was 5.1%[192] Store Operations - The company opened 18 new stores in 2022, bringing the total number of stores to 442 as of December 31, 2022[87] - The company operates 442 stores across 47 states as of December 31, 2022[158] - The company's digital platform, LLFlooring.com, serves as an additional sales channel alongside physical stores[158] Taxes - Income tax (benefit) expense in 2022: $(1.5 million), compared to $11.1 million in 2021 and $(7.8 million) in 2020[215] - Total Gross Deferred Tax Liabilities decreased to $46.3 million in 2022 from $45.7 million in 2021[218] - Total Gross Deferred Tax Assets increased to $60.0 million in 2022 from $59.4 million in 2021[218] - Net Deferred Tax Asset increased to $13.7 million in 2022 from $11.3 million in 2021[218] - Income tax benefit of $1.5 million reported in 2022, with an effective tax rate of 10.8%, compared to an income tax expense of $11.1 million and an effective rate of 21.0% in 2021[218] - U.S. federal net operating loss recognized as $20.2 million in 2022, compared to no remaining U.S. federal net operating loss carryforward in 2021[218] - State net operating loss carryforwards increased to $37.1 million in 2022 from $18.3 million in 2021, expiring starting in 2025[218] - Income taxes paid (net of refunds) were $4.8 million in 2022, $10.6 million in 2021, and $10.3 million in 2020[218] - Gross unrecognized tax benefits decreased to $0.2 million in 2022 from $0.4 million in 2021[218] Legal and Insurance - Accrual for Legal Matters and Settlements decreased from $33.611 million in 2021 to $22.159 million in 2022[142] - Self-insurance accruals for employee health and workers' compensation claims totaled $3.6 million at the end of 2022[168] - Remaining accrual for Formaldehyde-Abrasion MDL litigation was $9.1 million for vouchers as of December 31, 2022, with $1.6 million of vouchers redeemed during the year[225] - The company recorded $2.5 million from the final settlement of a business interruption insurance claim in 2020[183] Share Repurchase and Equity - The company repurchased 571,332 shares for $7.0 million under the share repurchase program during the second quarter of 2022, with $43.0 million remaining under the authorization[202] - The company repurchased an additional 69,011 shares for $1.0 million outside of the share repurchase program during the twelve months ended December 31, 2022[202] - Total shares authorized for issuance under the equity incentive plan: 7.8 million shares, with 1.5 million shares available for future grants as of December 31, 2022[203] - Deferred stock units outstanding: 244,976 at December 31, 2022, up from 177,448 in 2021[203] - Stock options outstanding as of December 31, 2022: 723,776 shares with a weighted average exercise price of $17.36 and a remaining average contractual term of 6.2 years[206] - Unrecognized compensation cost related to unvested stock options: $1.6 million, expected to be recognized over 2.8 years[206] - Weighted average fair value of stock options granted in 2022: $7.13, compared to $13.30 in 2021 and $6.20 in 2020[206] - Restricted stock awards (RSAs) outstanding as of December 31, 2022: 637,107 shares with a weighted average grant date fair value of $15.68[210] - Unrecognized compensation cost related to unvested restricted shares: $4.6 million, expected to be recognized over 2.3 years[210] - Performance-based RSAs granted in 2022: 94,621 shares with a grant date fair value of $1.5 million[210] Tariffs and Trade - The company reduced the percentage of merchandise receipts subject to Section 301 tariffs to 14% from 20% in 2021[87] - Products imported by the company fall within Lists 3 and 4a for which tariffs range from 10% to 25%[230] - The company has filed a companion case at the CIT challenging the legitimacy of the USTR's actions regarding Section 301 tariffs[230] - The company is unable to predict the timing or outcome of the ruling by the USTR and/or CIT regarding Section 301 tariffs[230] - If the appeals are successful, the company should qualify for refunds on these Section 301 tariffs[230] - The company's multilayered wood flooring imports from China accounted for approximately 4.9% and 3.2% of its flooring purchases in 2022 and 2021, respectively[228] - As of December 31, 2022, the outstanding AD and CVD principal balances were $4.2 million in other current assets, $0.2 million in other current liabilities, and $4.1 million in other long-term liabilities[228] - The company recorded net interest income related to antidumping and countervailing duties of $0.1 million for the year ended December 31, 2022 compared to $1.8 million for the year ended December 31, 2021[229] Other Financial Metrics - Total Current Assets remained relatively stable, increasing slightly from $359.828 million in 2021 to $369.748 million in 2022[142] - Operating Lease Right-of-Use Assets increased from $119.510 million in 2021 to $123.172 million in 2022[142] - Total Liabilities increased from $333.771 million in 2021 to $357.872 million in 2022[142] - Retained Earnings decreased from $189.623 million in 2021 to $177.542 million in 2022[142] - Accounts Payable decreased from $63.464 million in 2021 to $47.733 million in 2022[142] - Customer Deposits and Store Credits decreased from $67.063 million in 2021 to $43.767 million in 2022[142] - Customer deposits and store credits ending balance for 2022 was $43.767 million, compared to $67.063 million in 2021 and $61.389 million in 2020[171] - Warranty reserves were $1.0 million in 2022 and $0.9 million in 2021, recorded in cost of sales[174] - Property and equipment net value as of December 31, 2022 was $101.758 million, up from $96.926 million in 2021[189] - Amortization expense for capitalized computer software costs was $4.6 million in 2022, $4.4 million in 2021, and $4.4 million in 2020[189] - The company recorded right-of-use assets of $36.5 million in exchange for lease liabilities related to leases originated or modified during 2022[131] - The weighted average remaining lease term for operating leases as of December 31, 2022 was 4.74 years, with a weighted average discount rate of 5.3%[195] - Future minimum rental payments under non-cancelable operating leases as of December 31, 2022 totaled $151.7 million, with a present value of $133.7 million[196] - Company matching contributions to the 401(k) plan totaled $3.3 million in both 2022 and 2021, and $3.8 million in 2020[221] Impairment and Other Charges - The company recorded a goodwill impairment charge of $9.7 million in Q4 2022[155][167] - The company recorded a pre-tax, non-cash goodwill impairment charge of $9.7 million ($7.2 million net of tax) during the fourth quarter of 2022[190] - The company closed all Canadian stores in December 2020, resulting in a $0.8 million expense for reclassification of cumulative translation adjustments[184] Comprehensive Income and Equity - Comprehensive Loss for 2022 was $(12,081) thousand, compared to a Comprehensive Income of $41,698 thousand in 2021[148] - Total Stockholders' Equity for 2022 decreased to $256,081 thousand from $272,121 thousand in 2021[151] - Total (loss) income before income taxes in 2022: $(13.5 million), compared to $52.8 million in 2021 and $53.6 million in 2020[212] Legal and Regulatory - The company is subject to claims and disputes arising in the normal course of business, but management does not expect these to have a material adverse effect on the company's results of operations, financial position or liquidity[231]

Call Start: 08:00 January 1, 0000 8:32 AM ET LL Flooring Holdings, Inc. (NYSE:LL) Q3 2022 Earnings Conference Call November 2, 2022 08:00 ET Company Participants Julie MacMedan - Vice President of Investor Relations Charles Tyson - President & Chief Executive Officer Nancy Walsh - Senior Vice President & Chief Financial Officer Conference Call Participants Laura Champine - Loop Capital Operator Hello and welcome to today’s LL Flooring Third Quarter 2022 Results Call. My name is Elliot and I will be coordina ...