Lumber Liquidators Holdings, Inc. (LL) saw its loss narrow to $5.49 million, or $0.20 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $19.83 million, or $0.73 a share.
Revenue during the quarter grew 4.30 percent to $244.90 million from $234.81 million in the previous year period. Gross margin for the quarter expanded 988 basis points over the previous year period to 32.87 percent. Operating margin for the quarter stood at negative 3.76 percent as compared to a negative 13.42 percent for the previous year period.
Operating loss for the quarter was $9.22 million, compared with an operating loss of $31.52 million in the previous year period.
Dennis Knowles, chief executive officer, commented, "We are pleased with our sales performance during the quarter, posting our second consecutive increase in comparable sales. While this represents a further step in the right direction, we remain focused on improving our business to drive long term value for Lumber Liquidators shareholders. Our recent investment in a broader, trend-right assortment supported by deeper inventory reflects our commitment to serve our customers. As a part of our strategic direction, we invested in our store operations and the development of both installation and pro-customer programs. We continue to believe the strategic direction we set for the Company remains sound, and we are committed to driving the actions that will return the Company to profitability."
Operating cash flow turns negative
Lumber Liquidators Holdings, Inc. has spent $27.60 million cash to meet operating activities during the year as against cash inflow of $9.20 million in the last year.
The company has spent $8.33 million cash to meet investing activities during the year as against cash outgo of $22.48 million in the last year.
Cash flow from financing activities was $18.76 million for the year, down 4.81 percent or $0.95 million, when compared with the last year.
Cash and cash equivalents stood at $10.27 million as on Dec. 31, 2016, down 61.54 percent or $16.43 million from $26.70 million on Dec. 31, 2015.
Working capital declines
Lumber Liquidators Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $173.68 million as at Dec. 31, 2016, down 10.95 percent or $21.36 million from $195.04 million on Dec. 31, 2015. Current ratio was at 1.93 as on Dec. 31, 2016, down from 2.53 on Dec. 31, 2015.
Debt increases substantially
Lumber Liquidators Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $40 million as on Dec. 31, 2016, up 100 percent or $20 million from $20 million on Dec. 31, 2015. Lumber Liquidators Holdings, Inc. has witnessed an increase in long-term debt over the last one year. It stood at $40 million as on Dec. 31, 2016, up 100 percent or $20 million from $20 million on Dec. 31, 2015. Total debt was 8.19 percent of total assets as on Dec. 31, 2016, compared with 4.38 percent on Dec. 31, 2015. Debt to equity ratio was at 0.17 as on Dec. 31, 2016, up from 0.07 as on Dec. 31, 2015.
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