TOANA, VA - Lumber Liquidators reached $1 billion in sales in 2013.
The flooring giant is flush, as 4th quarter sales rose 22.7% to $258.4 Million and net income jumped 51% to $20.8 Million.
The good news continues for 2014, with the hardwood and laminate flooring firm projecting $1.15 billion in revenue from thriving new home construction and remodeling sectors. While Lumber Liquidators set aside $50 million to buy back shares, its capital expenditures will total up to $90 million, including $50 million for new warehouse facilities; and $10 million to be spent on floor finishing operations in Toana, VA. It is consolidating operations in Henrico County, VA.
|Lawsuit Alleges Illegal Wood in Flooring
Federal Agents Serve Warrant on Lacey
Stock Drops in Formaldehyde Fears
Lumber Liquidators Adds 1.5 M Square Feet
CEO Robert Lynch said during a conference call Lumber Liquidators plans "to invest in our Toano facility to increase our finishing capacity and provide greater control over our supply chain for domestic hardwoods.
"These investments are aimed at long-term sustainable benefits enabling us to control the profit from the tree to the final wood plank and strengthening our dedication to product quality."
The West Coast warehouse and distribution center in Pomona, CA, will become fully operational this year. Lumber Liquidators spent $1.3 million in transporting inventory to that location in 2013.
Lynch said Lumber Liquidators is "looking at some vertical integration. We do our finishing here of our Bellawood product in Toano. We are looking to expand that capacity."
Lynch also remarked on a federal search warrant served on its headquarters last fall, in an investigation into possibly illegally sourced wood in its flooring made in China.
"There is no update or additional information to provide at this time," Lynch said, in remarks transcribed by SeekingAlpha. "As most of you know, the sourcing practices at one of our Northern China mills was sided last fall in an environmental organizations report. In combination with our internal team, we have engaged third party resources including forensic specialist to review our sourcing in Northern China.
"These reviews efforts are in addition to our continuing investment in product sourcing processes and practices over the last two years. I remain confident in these processes and practices, which are designed to elicit adherence to our comprehensive standards for quality and compliance, which we believe exceed industry standards."
Lumber Liquidators sells through 320 retail centers, as well as distributing to professional flooring installers. The company also has expanded sales to DIYers and professionals of its Norge installation tool line, and its moulding and trim as well.
Have something to say? Share your thoughts with us in the comments below.