Lumber Liquidators Expects To Raise $43M in IPO

Toano, Va, October 18, 2007--Lumber Liquidators has set the terms of its initial public offering, according to a Securities and Exchange Commission filing Thursday.

The company expects the IPO to total 11.5 million shares and price between $12 and $14 per share.

Lumber Liquidators is selling 3.8 million of the shares while two stockholders, Chairman Thomas Sullivan and private equity firm TA Associates Inc., are offering the remaining 7.7 million.

The retailer expects to raise about $43.5 million in net proceeds from its portion of the offering.

As of September 30, the company sold its proprietary brands, including its premium Bellawood brand, through 111 Lumber Liquidators stores in 42 states, a call center, its website and a catalog.

In the first six months of 2007, Lumber Liquidator's net income declined to $4.6 million from $8.4 million in the first half of 2006. During the same period, net sales jumped 21% to $197.7 million from $164.1 million.

In the first half of 2007, same-store sales increased 8.8%.

The retailer's stores typically consist of a warehouse and an attached showroom located in industrial or commercial areas. The company plans to open at least 25 new stores during 2007 and between 30 and 40 new stores during each of the next several years.

Lumber Liquidators' IPO comes during a decline in new housing construction. According to the company, Catalina Research estimated that U.S. hardwood flooring square-foot sales dropped 14.1% in the first half of 2007 due to decreased new housing demand.

The company plans to use its proceeds from the IPO to repay debt, to support the growth of the business and for general corporate purposes.

Goldman Sachs and Merrill Lynch are lead underwriters. Lehman Brothers, Banc of America Securities and Piper Jaffray are also underwriting the offering.

The underwriters have an option to buy up to 1.7 million additional shares from the selling stockholders to cover overallotments.

Lumber Liquidators plans to list its shares on the New York Stock Exchange under the symbol "LL."