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Havertys Reports First Quarter Profit

Furniture World Magazine

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Haverty Furniture Companies, Inc., reported solid first quarter 2010 operating results, with increased sales of 8.2%, strong gross profit margins and decreased operating costs. Earnings per share for the first quarter of 2010 are $0.11 compared to a loss per share of ($0.34) for the same period of 2009.

Clarence H. Smith, president and chief executive officer, said, "We continued to grow our market share for the second consecutive quarter through the strength of our brand as comparable store sales were up 10.1%. We recorded our third consecutive quarter of profits with our disciplined approach to product pricing and operating costs. As Havertys marks its 125th anniversary, we are inspired by the tenacity shown by associates of previous eras during difficult economic conditions. Despite today’s economic uncertainty, we continue to invest in our current store base and technology. We believe that our strategies of focusing on the customer and essential operations will provide for profitable and sustainable long-term growth."

Financial Highlights

First Quarter 2010 Compared to First Quarter 2009

  • Net sales increased 8.2% to $156.0 million and comparable store sales increased 10.1%.

  • Gross profit margins increased to 52.1% as a percent of sales from 51.1% due to reductions in the volume of close-out merchandise, pricing discipline and product mix.

  • Selling, general and administrative costs decreased $2.0 million with reductions in all major categories either measured in dollars or efficiencies as a percentage of sales.

  • Income tax expense reflects a reduction in valuation allowance on deferred tax assets of $0.9 million or $0.04 per share compared to an increase in the allowance in the prior period of $2.7 million or $0.13 per share.

  • Retail store count is 119 versus 121 in 2009.

  • Cash at the end of the first quarter of 2010 totaled $52.4 million.

  • Company has no funded debt and $39.0 million of availability under our credit facility. Our debt to total capital ratio at the end of the first quarter of 2010 is 2.8%.

Havertys, established in 1885, is a full-service home furnishings retailer with 119 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 www.havertys.com.