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April 20, 2020, 7:29 a.m. EDT

Lumber Liquidators expands credit line, defers payments and furloughs staff in coronavirus pandemic

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By Ciara Linnane

Lumber Liquidators Holdings Inc. /zigman2/quotes/202539569/composite LL +5.32% said Monday it is taking a series of measures to enhance liquidity and manage costs as it grapples with the impact of the coronavirus pandemic. The hardwood flooring retailer said it is cutting costs, managing inventory flow, deferring payments and working with lenders to temporarily expand its credit facility. The company's same-store sales were up about 4% in the quarter through the week of March 21, but took a dive as the virus began to take hold to end the quarter down about 1%. "Despite softening sales in late March, gross margin percent increased in the quarter versus first quarter last year driven by margin optimization and supply chain efficiency efforts," said the company. Lumber Liquidators is planning to take advantage of the SEC's extended filing deadline for the first quarter and is still evaluating the CARES Act and any impact on results. It expects to file earnings and its 10-Q the week of May 25. Because of the uncertainty created by the virus, it is withdrawing 2020 financial guidance that was provided on Feb. 25. The company is furloughing about 300 store associates and reducing hours at its distribution centers. Most of its stores are offering curbside pickup and delivery only and are reducing opening hours and closing on Sundays. Furloughed workers will receive two weeks of pay and have the chance to use up to 80 hours of paid time off. Executives are taking a 25% pay cut, while the board is taking a 30% cut in cash payments. The company has increased its senior asset-based revolving credit facility to $212.5 million from $175.0 million, increasing the total availability under its senior secured credit facilities to $237.5 milion from $200 million. As of April 17, it had liquidity of about $120 million, including about $41 million in cash and cash equivalents. Shares were not yet active premarket, but have fallen 44% in the year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.20% has fallen 11%.

$ 22.98
+1.16 +5.32%
Volume: 850,782
Aug. 13, 2020 4:00p
P/E Ratio
Dividend Yield
Market Cap
$629.57 million
Rev. per Employee
-6.92 -0.20%
Volume: 1.96B
Aug. 13, 2020 5:10p

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