ATLANTA, May 6 /PRNewswire-FirstCall/ -- HAVERTY FURNITURE
COMPANIES, INC. (NYSE:HVTNYSE:andNYSE:HVT.A) today reported a loss
for the first quarter ended March 31, 2009. The net loss for the
first quarter of 2009 was $7.3 million or $.34 per diluted common
share, as compared to the first quarter 2008 net earnings of $1.0
million or $0.05 per diluted common share. As previously reported,
net sales for the first quarter of 2009 were $144.2 million, a
decrease of 22.1% compared to sales of $185.3 million for the
corresponding quarter in 2008. On a comparable-store basis, sales
declined 22.9% for the quarter. Total written business in 2009 for
the second quarter to date is down approximately 27% versus the
same period last year. The Company opened a new store in Little
Rock, Arkansas on May 1st completing its strategy of strengthening
its position in that market with one new location from two older
stores. Clarence H. Smith, president and chief executive officer,
said, "Our focus remains on three strategic factors: adjusting
costs to market conditions, managing for cash, and taking
meaningful and measured steps to drive sales. We believe that these
important points are the foundation to positioning Havertys for
future growth and profitability. "During the first quarter our
SG&A expenses were reduced by $5.1 million or 5.9% from the
fourth quarter of 2008 and $14.2 million or 14.9% versus last
year's first quarter. Staff changes resulting in decreases in
compensation costs and alterations in our advertising media mix
generated the largest cost reductions. We closed an
under-performing store in March of this year and there are no
current plans for additional closures during 2009. However, we
continue to scrutinize all of our locations particularly those
nearing the end of their lease terms and additional closures may
result if satisfactory renewal terms can not be reached. We are
leveraging our technology investment by increasing the use of
internal web-meetings and video training for real-time sharing of
information to adjust key aspects of our business and reduce travel
expenditures. "We completed a $6.8 million sale lease-back
transaction of one store during the first quarter in spite of the
difficult real estate financing market. Steady collections and
continued outsourcing generated a reduction in our accounts
receivable of $6.2 million during the quarter. We slowed
merchandise purchases in the wake of the deteriorating demand and
our inventories are $10.2 million lower than at March 31, 2008 and
$4.4 million lower than at December 31, 2008. The reductions in
purchases and expense cuts have lowered our payables and accrued
liabilities by $12.5 million in the current quarter. Our cash is up
$5.8 million from year-end and we continued to have no borrowings
outstanding at the end of the first quarter. "Stimulating store
traffic and sales are vital during this downturn as we compete for
a scarce and hyper cost-conscious consumer. We offered more
promotional pricing during the first quarter and our gross margins
were 92 basis points lower than in the first quarter of 2008. The
industry's very weak demand has created very attractive purchasing
opportunities with a number of manufacturers. We expect to
highlight a number of great values at good margins to our customers
in the coming months. Our sales associates offer superior customer
service and combined with exciting new products at substantial
values we believe that we will be a winner in the battle for our
share of the consumer's dollar." 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, May 7, 2009 at 10:00 a.m. Eastern Daylight Time to
review the first quarter. Listen-only access to the call is
available via the web at http://www.havertys.com/ (For Investors)
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) Three Months Ended March 31, --------- 2009 2008
---- ---- Net sales $144,238 $185,253 Cost of goods sold 70,475
88,818 ------ ------ Gross profit 73,763 96,435 Credit service
charges 393 565 --- --- Gross profit and other revenue 74,156
97,000 Expenses: Selling, general and administrative 80,879 95,037
Interest, net 176 (131) Provision for doubtful accounts 415 328
Other income, net (121) (42) ---- --- Total expenses 81,349 95,192
------ ------ (Loss) income before income taxes (7,193) 1,808
Income taxes 70 776 -- --- Net (loss) income $(7,263) $1,032
======= ====== Basic and diluted (loss) earnings per share: Common
Stock ($0.34) $0.05 Class A Common Stock ($0.33) $0.05 Weighted
average shares - basic: Common Stock 17,322 17,112 Class A Common
Stock 4,005 4,127 Weighted average shares - assuming dilution:
Common Stock 21,327 21,443 Class A Common Stock 4,005 4,127 Cash
dividends per share: Common Stock - $0.0675 Class A Common Stock -
$0.0625 HAVERTY FURNITURE COMPANIES, INC. and SUBSIDIARIES
Condensed Consolidated Balance Sheets (Amounts in thousands)
(Unaudited) March 31, December 31, March 31, 2009 2008 2008 ----
---- ---- Assets Cash and cash equivalents $9,848 $3,697 $2,195
Accounts receivable, net of allowance 18,191 24,301 49,866
Inventories, at LIFO cost 99,384 103,743 109,598 Other current
assets 16,227 18,005 16,825 ------ ------ ------ Total Current
Assets 143,650 149,746 178,484 Accounts receivable, long-term 1,607
2,082 4,863 Property and equipment, net 188,052 197,423 206,161
Other assets 14,143 14,142 25,021 ------ ------ ------ $347,452
$363,393 $414,529 ======== ======== ======== Liabilities and
Stockholders' Equity Notes payable to banks $- $- $8,250 Accounts
payable and accrued liabilities 60,784 71,359 73,322 Current
portion of lease obligations 323 311 6,357 --- --- ----- Total
Current Liabilities 61,107 71,670 87,929 Lease obligations, less
current portion 7,100 7,183 20,261 Other liabilities 41,017 39,572
29,232 Stockholders' equity 238,228 244,968 277,107 ------- -------
------- $347,452 $363,393 $414,529 ======== ======== ========
HAVERTY FURNITURE COMPANIES, INC. and SUBSIDIARIES Condensed
Consolidated Statements of Cash Flows (Amounts in thousands)
(Unaudited) Quarter Ended March 31, 2009 2008 ---- ---- Operating
Activities Net (loss) income $(7,263) $1,032 Adjustments to
reconcile net (loss) income to net cash (used in) provided by
operating activities: Depreciation and amortization 5,149 5,447
Provision for doubtful accounts 415 328 (Gain) loss on sale of
property and equipment (16) 18 Other 473 329 Changes in operating
assets and liabilities 886 (6,674) --- ------ Net cash (used in)
provided by operating activities (356) 480 ---- --- Investing
Activities Capital expenditures (537) (1,852) Proceeds from
sale-leaseback transaction 6,625 - Proceeds from sale of property
and equipment 21 197 Other investing activities 99 237 -- --- Net
cash provided by (used in) investing activities 6,208 (1,418) -----
------ Financing Activities Proceeds from borrowings under
revolving credit facilities 5,800 69,075 Payments of borrowings
under revolving credit facilities (5,800) (60,825) ------ -------
Net increase in borrowings under revolving credit facilities -
8,250 Payments on long-term debt and lease obligations (71) (2,066)
Treasury stock acquired - (1,806) Dividends paid - (1,412) ---
------ Net cash (used in) provided by financing activities (71)
2,966 --- ----- Increase in cash and cash equivalents 5,781 2,028
Cash and cash equivalents at beginning of period 3,697 167 -----
--- Cash and cash equivalents at end of period $9,478 $2,195 ======
====== 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, Jenny Hill Parker, VP, Secretary &
Treasurer, +1-404-443-2900, Haverty Furniture Companies, Inc. Web
Site: http://www.havertys.com/
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