ATLANTA, Nov. 4 /PRNewswire-FirstCall/ -- HAVERTY FURNITURE
COMPANIES, INC. (NYSE:HVTNYSE:andNYSE:HVT.A) today reported
earnings for the third quarter ended September 30, 2009. The
earnings for the third quarter of 2009 were $501,000 or $0.02 per
diluted share of Common Stock, as compared to the third quarter
2008 net loss of $1.5 million or $0.07 per diluted share of Common
Stock. For the nine months ended September 30, 2009, the net loss
was $13.3 million or $0.62 per diluted share of Common Stock versus
the net loss of $2.8 million or $0.13 per diluted share of Common
Stock for the same period in 2008. As previously reported, net
sales for the third quarter of 2009 were $151.9 million, a decrease
of 13.5% compared to sales of $175.6 million for the corresponding
quarter in 2008. Comparable-store sales declined 11.9% for the
quarter. Clarence H. Smith, president and chief executive officer,
said, "In light of the weak demand for home furnishings, we are
pleased with our third quarter operating performance. The results
reflect the considerable effort and difficult decisions that have
been made by the Havertys team over the past few quarters. Our
third quarter sales were off 13.5% and we were able to reduce
SG&A by 15.7% compared to the same period last year. Cost
controls and improvements across all facets of our business have
led to leaner and more agile operating structures. "Advancements in
the availability of real-time information allow our supply chain
team to more closely follow our import orders from the
manufacturing plant through each stage of transit. This helps us to
better manage our inventory and merchandise flow, and to more
accurately set customer delivery dates prior to receipt of product.
Our warehouse and delivery teams are benefiting from new computer
applications which help reduce levels of damaged merchandise,
provide real-time tracking of our delivery trucks and improve the
customer's post-store experience. A new prospecting and
communications tool, which helps foster the relationship between
our sales associates and their customers after a store visit, has
been rolled out chain-wide. These improvements to the "back-end" of
our business are being complemented by new merchandise which carry
both strong fashion statements and an obvious value. "Gross margin
was flat for the first nine months of the year but up modestly for
third quarter due to the slight deflation we experienced in our
LIFO inventory valuation. We have worked closely with our suppliers
to create values for our target consumers. These new products,
which are across all of our price points, are receiving good
reviews from our customers. The combination of very attractive
merchandise and effective periodic promotions are key elements in
our strategy to hold margins and gain market share. "Given that the
portion of our third quarter 2009 SG&A costs which are mostly
fixed in nature were approximately 36% of the quarter's sales we
are encouraged by the opportunities for leveraging these expenses
and generating future earnings should sales improve from current
levels. Although we will continue looking for ways to contain
spending and improve efficiencies, we do not anticipate achieving
further significant fixed cost reductions as compared to the third
quarter level. Variable type expenses making up the remainder of
our third quarter SG&A costs were approximately 16% of sales, a
rate we believe will continue as sales fluctuate. "We have
maintained a strong balance sheet throughout this economic
maelstrom. We have no funded borrowings and our cash at September
30, 2009 is $46.1 million. Our written business to date in the
fourth quarter is flat compared to the same period last year. We
believe that in these difficult times the home furnishings
customers in our markets will gravitate to Havertys' strong
merchandise values and tradition of service." Havertys is a
full-service home furnishings retailer with 121 showrooms in 17
states in the Southern and Midwestern regions providing its
customers with a wide selection of quality merchandise in middle-
to upper-middle price ranges. Additional information is available
on the Company's website at http://www.havertys.com/. News releases
include forward-looking statements, which are subject to risks and
uncertainties. Factors that might cause actual results to differ
materially from future results expressed or implied by such
forward-looking statements include, but are not limited to, general
economic conditions, the consumer spending environment for large
ticket items, competition in the retail furniture industry and
other uncertainties detailed from time to time in the Company's
reports filed with the SEC. The Company will sponsor a conference
call Thursday, November 5, 2009 at 10:00 a.m. Eastern Standard Time
to review the third quarter. Listen-only access to the call is
available via the web at http://www.havertys.com/ (About Us) and at
http://www.streetevents.com/ (Individual Investor Center), both
live and for a limited time, on a replay basis. HAVERTY FURNITURE
COMPANIES, INC. and SUBSIDIARIES Condensed Consolidated Statements
of Operations (Amounts in thousands except per share data)
(Unaudited) Quarter Ended Nine Months Ended September 30, September
30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ----
---- Net sales $151,945 $175,579 $425,865 $529,243 Cost of goods
sold 72,840 85,104 206,376 256,079 ------- ------- ------- -------
Gross profit 79,105 90,475 219,489 273,164 Credit service charges
267 468 971 1,530 ------- ------- ------- ------- Gross profit and
other revenue 79,372 90,943 220,460 274,694 Expenses: Selling,
general and administrative 78,314 92,879 232,052 278,139 Interest,
net 212 273 592 348 Provision for doubtful accounts 150 432 812
1,044 Other (income) expense, net - (359) 20 (479) ------- -------
------- ------- Total expenses 78,676 93,225 233,476 279,052
------- ------- ------- ------- Income (loss) before income taxes
696 (2,282) (13,016) (4,358) Income tax expense (benefit) 195 (767)
328 (1,566) ------- ------- ------- ------- Net income (loss) $501
$(1,515) $(13,344) $(2,792) ======= ======= ======= ======= Basic
earnings (loss) per share: Common Stock $0.02 ($0.07) ($0.63)
($0.13) Class A Common Stock $0.02 ($0.07) ($0.60) ($0.13) Diluted
earnings (loss) per share: Common Stock $0.02 ($0.07) ($0.62)
($0.13) Class A Common Stock $0.02 ($0.07) ($0.60) ($0.13) Weighted
average shares - basic: Common Stock 17,437 17,213 17,386 17,163
Class A Common Stock 3,983 4,090 3,991 4,107 Weighted average
shares - assuming dilution(1): Common Stock 21,607 21,303 21,377
21,270 Class A Common Stock 3,983 4,090 3,991 4,107 Cash dividends
per common share: Common Stock - $0.0675 - $0.2025 Class A Common
Stock - $0.0625 - $0.1875 (1) See additional details at the end of
this release. HAVERTY FURNITURE COMPANIES, INC. and SUBSIDIARIES
Condensed Consolidated Balance Sheets (Amounts in thousands)
(Unaudited) September 30, December 31, September 30, 2009 2008 2008
------------ ----------- ------------- Assets Cash and cash
equivalents $46,125 $3,697 $18,724 Accounts receivable, net of
allowance 14,488 24,301 31,773 Inventories, at LIFO cost 88,188
103,743 99,830 Other current assets 14,271 18,005 19,214 ---------
-------- --------- Total current assets 163,072 149,746 169,541
Accounts receivable, long-term 977 2,082 2,536 Property and
equipment, net 179,804 197,423 201,565 Other assets 14,097 14,142
23,562 --------- -------- --------- $357,950 $363,393 $397,204
========= ======== ========= Liabilities and Stockholders' Equity
Notes payable to banks $-- $-- $-- Accounts payable and accrued
liabilities 75,381 71,359 73,652 Current portion of long-term debt
and lease obligations 337 311 15,191 --------- -------- ---------
Total current liabilities 75,718 71,670 88,843 Lease obligations,
less current portion 6,929 7,183 7,265 Other liabilities 42,341
39,572 29,546 Stockholders' equity 232,962 244,968 271,550
--------- -------- --------- $357,950 $363,393 $397,204 =========
======== ========= HAVERTY FURNITURE COMPANIES, INC. and
SUBSIDIARIES Condensed Consolidated Statements of Cash Flows
(Amounts in thousands) (Unaudited) Nine Months Ended September 30,
2009 2008 ---- ---- Operating Activities Net loss $(13,344)
$(2,792) Adjustments to reconcile net loss to net cash provided by
operating activities: Depreciation and amortization 14,809 16,217
Provision for doubtful accounts 812 1,044 (Gain) loss on sale of
property and equipment (19) 8 Other 1,756 794 Changes in operating
assets and liabilities 34,342 23,290 ------ ------- Net cash
provided by operating activities 38,356 38,561 ------ -------
Investing Activities Capital expenditures (1,921) (8,307) Proceeds
from sale-leaseback transaction 6,625 -- Proceeds from sale of
property and equipment 29 256 Other investing activities 43 141
------ ------- Net cash provided by (used in) investing activities
4,776 (7,910) ------ ------- Financing Activities Proceeds from
borrowings under revolving credit facilities 5,800 128,365 Payments
of borrowings under revolving credit facilities (5,800) (128,365)
------ ------- Net decrease in borrowings under revolving credit
facilities -- -- Payments on long-term debt and lease obligations
(229) (6,228) Treasury stock acquired -- (1,806) Dividends paid --
(4,246) Other financing activities (475) 186 ------ ------- Net
cash used in financing activities (704) (12,094) ------ -------
Increase in cash and cash equivalents 42,428 18,557 Cash and cash
equivalents at beginning of period 3,697 167 ------- ------- Cash
and cash equivalents at end of period $46,125 $18,724 =======
======= HAVERTY FURNITURE COMPANIES, INC. and SUBSIDIARIES Earnings
per Share ------------------ The following details how the loss and
number of shares in calculating the diluted earnings (loss) per
share for Common Stock and Class A Common Stock are derived
(amounts in thousands): Quarter Ended Nine Months Ended September
30, September 30, ------------ -------------- 2009 2008 2009 2008
---- ---- ---- ---- Numerator: Common: Distributed earnings $--
$1,162 $-- $3,476 Undistributed earnings (loss) 411 (2,391)
(10,950) (5,732) ------ ------ ------- ------ Basic 411 (1,229)
(10,950) (2,256) Class A Common earnings (loss) 90 (286) (2,394)
(536) ------ ------ ------- ------ Diluted $501 $(1,515) $(13,344)
$(2,792) ====== ====== ======= ====== Class A Common: Distributed
earnings $-- $255 $-- $770 Undistributed earnings (loss) 90 (541)
(2,394) (1,306) ------ ------ ------- ------ $90 $(286) $(2,394)
$(536) ====== ====== ======= ====== Denominator: Common: Weighted
average shares outstanding - basic 17,437 17,213 17,386 17,163
Assumed conversion of Class A Common Stock 3,983 4,090 3,991 4,107
Dilutive stock awards and Common Stock equivalents 187 -- -- --
------ ------ ------ ------ Total weighted-average diluted Common
Stock 21,607 21,303 21,377 21,270 ====== ====== ====== ====== Class
A Common: Weighted average shares outstanding 3,983 4,090 3,991
4,107 ====== ====== ====== ====== Contact for information: Dennis
L. Fink, EVP & CFO or Jenny Hill Parker, VP, Secretary &
Treasurer 404-443-2900 DATASOURCE: Haverty Furniture Companies,
Inc. CONTACT: Dennis L. Fink, EVP & CFO or Jenny Hill Parker,
VP, Secretary & Treasurer, +1-404-443-2900, both of Haverty
Furniture Companies, Inc.
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