Lumber Liquidators reports 4th quarter profit jump

TOANO

Lumber Liquidators today reported that fourth-quarter profit rose 42.9 percent from the same period a year ago.

Net income for the Toano-based company totaled $8.5 million, or 30 cents a share, for the quarter that ended Dec. 31, up from $5.9 million, or 21 cents a share, in the fourth quarter of 2011.

The earnings missed Wall Street projections by 5 cents a share. The consensus earnings-per-share estimate of 11 analysts surveyed by Thomson Financial Network was 35 cents.

“We steadily regained traction throughout the fourth quarter and were pleased with our strong finish to 2011," said Robert M. Lynch, president and CEO, in a statement. "While our bottom-line results for the quarter were below our expectations, we achieved a solid increase in both our top- and bottom-line versus the prior year period."

Net sales for the fourth quarter rose to $174.5 million, up 13.9 percent from the same quarter a year ago.

Year-to-year, profit in both 2011 and 2010 was $26.3 million, or 93 cents a share.

Net sales grew 9.9 percent to $681.6 million in 2011, up from $620.3 million in 2010.

The company opened 40 new stores in 2011 and operated 263 stores in 46 states and Canada as of Dec. 31, 2011.

Lumber Liquidators is the largest specialty retailer of hardwood flooring in North America, the company stated.

The company also announced today that its board of directors has authorized the repurchase of up to $50 million of the company’s common stock.

"The repurchases will be subject to market conditions and other factors and will be made from time to time through open-market purchases or through privately negotiated transactions," a company release stated.

Lumber Liquidators' stock dropped 17 cents a share in trading Tuesday on the New York Stock Exchange, closing at $21.53.