Lumber Liquidators Holdings, Inc. (LL) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2017

Exhibit 99.1

FOR IMMEDIATE RELEASE

LUMBER LIQUIDATORS ANNOUNCES FOURTH QUARTER AND

FULL YEAR 2017 FINANCIAL RESULTS

TOANO, Va., February 27, 2018 – Lumber Liquidators (NYSE: LL), the largest specialty retailer of hardwood flooring in North America, today announced financial results for the fourth quarter and full year ended December 31, 2017.

Fourth Quarter Results

Net sales in the fourth quarter of 2017 were $260 million, an increase of 6.1% from the fourth quarter of 2016. This includes a comparable store net sales increase of 4.5%, which reflected a 3.4% increase in average sale and a 1.1% increase in customers invoiced. Non-comparable store net sales increased $4.1 million over the comparable prior-year period. The Company opened six new stores during the fourth quarter of 2017.

Gross margin was 35.4% in the fourth quarter of 2017, compared with 32.9% in the prior-year period. This increase was driven by a shift in mix toward vinyl and engineered products, lower transportation costs, as well as improved margins within engineered, vinyl, laminate, and tile categories due to sourcing and pricing initiatives.

Selling, general and administrative (“SG&A”) expenses in the fourth quarter of 2017 were $92 million compared to $90 million in the prior-year quarter. The increase was attributable to incremental legal and professional fees and the absence of a credit related to the stock-based element of the Company’s 2016 settlement of the securities class action lawsuit, partially offset by decreases in payroll and advertising. Certain items affecting the change in SG&A expenses are also highlighted in the attached supporting schedule. When excluding those items, Adjusted SG&A as a percentage of sales (a non-GAAP measure) decreased to 33.3% from 36.4% during the prior-year period.

Operating profit in the fourth quarter of 2017 was $0.6 million compared to an operating loss of $9.2 million in the fourth quarter of 2016. The Company also recognized a $2.6 million income tax benefit primarily due to the Tax Cuts and Jobs Act which was enacted on December 22, 2017. One of the tax law changes enabled the Company to recognize certain deferred tax assets previously offset by a valuation allowance. As a result, net income for the fourth quarter of 2017 was $3.0 million, or $0.10 per diluted share, compared to a net loss of $5.5 million, or $(0.20) per diluted share, during the prior-year period.

At December 31, 2017, the Company had $145.9 million in liquidity, comprised of $19.9 million of cash and $126 million of availability under its revolving credit facility. The Company had $15 million outstanding on its revolving credit facility at December 31, 2017. This compares to $101 million in liquidity at December 31, 2016, which was comprised of $10.3 million in cash and $90.7 million of availability under the revolving credit facility. The Company had $40.0 million outstanding on its revolving credit facility at December 31, 2016.

Dennis Knowles, Chief Executive Officer, commented, “We believe that 2017 was an important year for Lumber Liquidators as we established a solid foundation for our long-term success. We greatly improved the assortment in our stores with style and trend-right products and focused our marketing spend, which we believe contributed to better overall customer traffic in our stores. We rebuilt our vendor relationships and rolled out a comprehensive, nationwide installation services program. In turn, we saw continued growth in sales, comp store growth and gross margin expansion as well as improvement in operating results on an adjusted basis. While we still have work to do, I’m very proud of what we accomplished in 2017.”