ATLANTA, Aug. 5 /PRNewswire-FirstCall/ -- HAVERTY FURNITURE
COMPANIES, INC. (NYSE:HVTNYSE:andNYSE:HVT.A) today reported a loss
for the second quarter ended June 30, 2009. The net loss for the
second quarter of 2009 was $6.6 million or $0.31 per diluted share
of Common Stock, as compared to the second quarter 2008 net loss of
$2.3 million or $0.11 per diluted share of Common Stock. For the
six months ended June 30, 2009, the net loss was $13.8 million or
$0.65 per diluted share of Common Stock versus a net loss of $1.3
million or $0.06 per diluted share of Common Stock for the same
period in 2008. As previously reported, net sales for the second
quarter of 2009 were $129.7 million, a decrease of 23.0% compared
to sales of $168.4 million for the corresponding quarter in 2008.
Comparable-store sales decreased 22.6% for the quarter. Total
written business for the third quarter to date is down 19.6% versus
the same period last year. Clarence H. Smith, president and chief
executive officer, said, "Our efforts remain concentrated on
necessary operational adjustments to the difficult market
conditions, closely managing our capital and clearly communicating
Havertys' strong value proposition to the consumer. We believe
these initiatives are imperative to maintaining our financial and
brand strength. "The second quarter is historically the weakest of
the year. We began during this time to highlight our high value
price point merchandise and became somewhat more promotional to
reach the spending-conscious consumer. Our careful merchandising
and inventory management kept second quarter gross margins slightly
higher both sequentially for the year and compared to last year's
period. "During the second quarter our SG&A expenses were
reduced by $17.4 million or 19.2% compared to last year's second
quarter and were down $31.5 million or 17.0% for the first half of
the year. We have improved our warehousing and delivery throughput
efficiencies as we adjusted our scale of operations to lower volume
levels. Alterations in our advertising and marketing spend have
also generated additional cost reductions. "We have continued to
outsource most customer financing and our accounts receivable have
been reduced by $3.3 million in the second quarter and $9.5 million
in the first six months of 2009. Inventories are $6.0 lower than at
March 31, 2009 and $10.3 lower than at the end of 2008 as we
reduced merchandise purchases given the weakened demand. We have no
funded borrowings and our cash at June 30, 2009 is $22.4 million,
up $12.9 million during the second quarter and $18.7 million during
the first half of the year. "Our efforts to emphasize the value
attribute in addition to the quality and service hallmarks of the
Havertys brand are important to our current sales efforts. We are
carefully conveying in this value message that there has not been a
fundamental change in our merchandise or how we interact with the
customer. This approach and conservative financial management are
essential to our survival of this economic firestorm and future
success." 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 web site 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, August 6 at 10:00
a.m. Eastern Daylight Time to review the second quarter.
Listen-only access to the call is available via the web at
http://www.havertys.com/ (About Us, Investor Information) 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 Six Months Ended June 30, June 30,
--------------------- --------------------- 2009 2008 2009 2008
---------- ---------- ---------- ---------- Net sales $129,683
$168,412 $273,921 $353,665 Cost of goods sold 63,062 82,158 133,537
170,975 ---------- ---------- ---------- ---------- Gross profit
66,621 86,254 140,384 182,690 Credit service charges 311 497 704
1,062 ---------- ---------- ---------- ---------- Gross profit and
other revenue 66,932 86,751 141,088 183,752 Expenses: Selling,
general and administrative 72,860 90,222 153,738 185,260 Interest,
net 203 206 380 75 Provision for doubtful accounts 247 284 662 612
Other expense (income), net 141 (77) 20 (119) ---------- ----------
---------- ---------- Total expenses 73,451 90,635 154,800 185,828
---------- ---------- ---------- ---------- Loss before income
taxes (6,519) (3,884) (13,712) (2,076) Income tax expense (benefit)
63 (1,575) 133 (799) ---------- ---------- ---------- ----------
Net loss $(6,582) $(2,309) $(13,845) $(1,277) ========== ==========
========== ========== Basic and diluted loss per Share(1): Common
Stock $(0.31) $(0.11) $(0.65) $(0.06) Class A Common Stock $(0.30)
$(0.11) $(0.62) $(0.06) Weighted average shares - basic: Common
Stock 17,397 17,162 17,360 17,137 Class A Common Stock 3,987 4,105
3,996 4,116 Weighted average shares - assuming dilution(1): Common
Stock 21,384 21,267 21,356 21,253 Class A Common Stock 3,987 4,105
3,996 4,116 Cash dividends per common share: Common Stock - $0.0675
- $0.1350 Class A Common Stock - $0.0625 - $0.1250 (1) See
additional details at the end of this release. HAVERTY FURNITURE
COMPANIES, INC. and SUBSIDIARIES Condensed Consolidated Balance
Sheets (Amounts in thousands) (Unaudited) June 30, December 31,
June 30, 2009 2008 2008 ---------- ---------- ---------- Assets
Cash and cash equivalents $22,355 $3,697 $1,926 Accounts
receivable, net of allowance 14,982 24,301 40,017 Inventories, at
LIFO cost 93,421 103,743 104,873 Other current assets 14,147 18,005
19,814 ---------- ---------- ---------- Total current assets
144,905 149,746 166,630 Accounts receivable, long-term 1,240 2,082
3,185 Property and equipment, net 183,825 197,423 204,114 Other
assets 14,140 14,142 25,054 ---------- ---------- ----------
$344,110 $363,393 $398,983 ========== ========== ==========
Liabilities and Stockholders' Equity Notes payable to banks $- $-
$5,400 Accounts payable and accrued liabilities 63,321 71,359
66,206 Current portion of long-term debt and lease obligations 332
311 17,179 ---------- ---------- ---------- Total current
liabilities 63,653 71,670 88,785 Long-term debt and lease
obligations, less current portion 7,014 7,183 7,346 Other
liabilities 41,440 39,572 28,995 Stockholders' equity 232,003
244,968 273,857 ---------- ---------- ---------- $344,110 $363,393
$398,983 ========== ========== ========== HAVERTY FURNITURE
COMPANIES, INC. and SUBSIDIARIES Condensed Consolidated Statements
of Cash Flows (Amounts in thousands) (Unaudited) Six Months Ended
June 30, 2009 2008 ---------- ---------- Operating Activities Net
loss $(13,845) $(1,277) Adjustments to reconcile net loss to net
cash provided by operating activities: Depreciation and
amortization 10,115 10,853 Provision for doubtful accounts 662 612
Gain on sale of property and equipment (19) - Other 1,255 690
Changes in operating assets and liabilities 15,679 (1,039)
---------- ---------- Net cash provided by operating activities
13,847 9,839 ---------- ---------- Investing Activities Capital
expenditures (1,263) (5,171) Proceeds from sale-leaseback
transaction 6,625 - Proceeds from sale of property and equipment 29
203 Other investing activities 43 282 ---------- ---------- Net
cash provided by (used in) investing activities 5,434 (4,686)
---------- ---------- Financing Activities Proceeds from borrowings
under revolving credit facilities 5,800 127,765 Payments of
borrowings under revolving credit facilities (5,800) (122,365)
---------- ---------- Net increase (decrease) in borrowings under
revolving credit facilities - 5,400 Payments on long-term debt and
lease obligations (148) (4,159) Treasury stock acquired - (1,806)
Dividends paid - (2,829) Other financing activities (475) -
---------- ---------- Net cash used in financing activities (623)
(3,394) ---------- ---------- Increase (decrease) in cash and cash
equivalents 18,658 1,759 Cash and cash equivalents at beginning of
period 3,697 167 ---------- ---------- Cash and cash equivalents at
end of period $22,355 $1,926 ========== ========== HAVERTY
FURNITURE COMPANIES, INC. and SUBSIDIARIES Earnings per Share
------------------ The following details how the loss and number of
shares in calculating the diluted loss per share for Common Stock
are derived under SFAS 128 and EITF 03-6 (amounts in thousands):
Quarter Ended Six Months Ended June 30, June 30,
--------------------- --------------------- 2009 2008 2009 2008
---------- ---------- ---------- ---------- Numerator: Common:
Distributed earnings $- $1,161 $- $2,315 Undistributed loss (5,403)
(3,035) (11,356) (3,342) ---------- ---------- ----------
---------- Basic (5,403) (1,874) (11,356) (1,027) Class A Common
loss (1,179) (435) (2,489) (250) ---------- ---------- ----------
---------- Diluted $(6,582) $(2,309) $(13,845) $(1,277) ==========
========== ========== ========== Class A Common: Distributed
earnings $- $256 $- $514 Undistributed loss (1,179) (691) (2,489)
(764) ---------- ---------- ---------- ---------- $(1,179) $(435)
$(2,489) $(250) ========== ========== ========== ==========
Denominator: Common: Weighted average shares outstanding - basic
17,397 17,162 17,360 17,137 Assumed conversion of Class A Common
Stock 3,987 4,105 3,996 4,116 ---------- ---------- ----------
---------- Total weighted-average diluted Common Stock 21,384
21,267 21,356 21,253 ========== ========== ========== ==========
Class A Common: Weighted average shares outstanding 3,987 4,105
3,996 4,116 ========== ========== ========== ========== 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, both of
Haverty Furniture Companies, Inc., +1-404-443-2900 Web Site:
http://www.havertys.com/
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