Lumber Liquidators Sees Net Income Rise in Quarter

Toano, VA, Nov. 6. 2008--Lumber Liquidators third quarter net income increased 47.6% to $5.5 million, or $0.20 per share compared to $3.7 million, or $0.16 per share a year ago.

Net sales increased 20.6% to $123.1 million from $102.1 million in the third quarter of 2007.

Comparable store net sales increased 2.0% for the quarter on top of an increase of 8.4% for the third quarter of the prior year. Non-comparable store net sales increased $19.0 million from the third quarter of 2007, and represented 90.2% of the total increase in the company's net sales. Lumber Liquidators opened eight new stores during the third quarter.

Gross margin increased to 35.3% from 33.8% in the same period of 2007. The company said it is selling more higher margin products and benefited from the tariff rebate on bamboo.

"Our third quarter results demonstrate the benefits we are achieving from increased operational efficiencies and a stronger infrastructure," said CEO Jeffrey W. Griffiths.

"We performed well despite the challenging economy and are encouraged by the strong results generated by both our new and mature stores."

For the first nine months, net sales increased 22.0% to $365.6 million from $299.8 million in the first nine months of 2007.

Net income increased to $15.7 million compared to $8.3 million in the prior year period.

The company also said that it has expanded its installation partnership with The Home Service Store Inc.