Haverty Changing To Delivered From Billed Revenues for Accounting Purposes

Furniture World Magazine

Haverty Furniture Companies, Inc. (NYSE: HVT HVT.A) today reported record sales activity for the month ended February 29, 2000. As previously announced, the Company has changed its accounting method for recognizing revenues and is now recording merchandise sales upon delivery to the customer. Historically, sales were recognized and "billed" prior to delivery when certain criteria were met, such as receipt of full payment, credit approval for charge sales and merchandise in stock. It is not practical for the Company to provide comparable-store sales information on the new "delivered" basis during 2000. In order to provide investors with an indication of current business trends relative to the prior- year period, the Company is continuing to report monthly sales activity using the same "billed" method as was used during 1999 and prior years. Earnings for 2000 are being determined using "delivered" sales amounts, which would have averaged approximately 2.5% lower than "billed" sales in the first quarter of the last three years. For the last three full years, sales under the "delivered" method would have averaged 0.3% lower than using the "billed" method. Management believes that providing this information is meaningful but cannot be certain of the consistency of such net sales relationships in past years between the two revenue recognition methods. Havertys' February billed sales increased 14.6% to $60.9 million compared with $53.2 million in February 1999. On a comparable-store basis, February billed sales increased 11.3 %. Comparable-store sales do not include three expanded stores nor locations opened, closed or otherwise non-comparable during the last 12 months. Due to leap year, February 2000 had the benefit of one extra day's sales compared to the prior year. Billed net sales for the first two months of 2000 totaled $116.8 million versus $104.0 million for 1999, representing an increase of 12.4 %. Using the "billed" basis, comparable-store sales increased 9.9% for the two-month period. Havertys is a full-service home furnishings retailer with 103 showrooms in 14 southern and central states 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.