Lumber Liquidators closes IPO
Toano, Va.-based specialty hardwood flooring retailer Lumber Liquidators has closed its initial public offering.
The company offered 10 million shares of common stock at a price of $11 per share, including 3.8 million shares offered by the company and 6.2 million shares offered by selling stockholders.
The company intends to use the net proceeds of approximately $36.4 million from the offering to repay outstanding debt and support the growth of the business, which includes plans for 25 stores in 2007, followed by 30 to 40 new stores per year until 2011.
Goldman Sachs and Merrill Lynch acted as joint book-running managers with Lehman Brothers, Banc of America Securities and Piper Jaffray serving as co-managers for the offering.
Lumber Liquidators has seen same-store sales growth of 8.5 percent to 9 percent each quarter this year. According to the company’s S-1 filing with the Securities and Exchange Commission, in 2006 Lumber Liquidators had sales of $332 million, up 35 percent from sales of $245 million in 2005.
The retailer currently operates 111 small-format stores in the United States. The company is traded on the New York Stock Exchange under the symbol “LL.”
Newell Rubbermaid names new board member
Home goods maker Newell Rubbermaid has named Domenico De Sole, former CEO of Gucci Group, to its board of directors.
The appointment raises the total number of board members to 12, the company said.
De Sole also serves as chairman of Tom Ford International.
Previously, De Sole was a partner at Washington, D.C., law firm Patton, Boggs & Blow.
Newell Rubbermaid is a global marketer of consumer and commercial products, with brands including outdoor products manufacturer Bernzomatic, Rubbermaid and kitchen housewares maker Calphalon.
TOUSA reports third-quarter loss of $619.7 million
Home builder Technical Olympic USA (TOUSA) reported third-quarter net losses of $619.7 million, wider than the $80 million in losses the company reported last year. Revenue fell 15 percent to $492.9 million from $576.8 million in the same period last year.
The company was hit with $530.6 million in one-time, pre-tax charges related to the abandonment of land option contracts and inventory issues.
TOUSA reported consolidated net sales orders of 892, a 33 percent decrease from last year. The company’s cancellation rate increased to 47 percent, compared to 33 percent for the third quarter of 2006 and 33 percent for the second quarter of 2007.
The New York Stock Exchange has halted trading of the company’s stock, following a drop in stock price to below $1.05. If stocks continue to be low, the company is in danger of being delisted by the NYSE.
Hollywood, Fla.-based TOUSA is a national home builder and financial services company with operations in Florida, the Mid-Atlantic, Texas and the West.