Haverty Furniture Companies Inc.

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Havertys Reports Improved Operating Results for Fourth Quarter and Full Year 2012



ATLANTA,  GEORGIA, February 25, 2013 -- HAVERTY FURNITURE COMPANIES, INC. (NYSE:
HVT and HVT.A) reports fourth quarter and full year 2012 results. Pre-tax income
for  the fourth quarter  of 2012 increased to  $10.1 million versus $6.1 million
for the same period of 2011.  Pre-tax income for the full year of 2012 increased
to  $23.5 million compared to $4.6 million for 2011.  The earnings per share for
the  fourth quarter of 2012 were $0.30 compared  to $0.76 for the same period of
2011.  The  earnings per  share for  the full  year 2012 were  $0.67 compared to
$0.70  for 2011.  The results of both  periods of 2011 included a favorable non-
cash  special item  of $14.1  million, or  $0.64 in  per share earnings, for the
release  of  almost  all  of  the  valuation allowance against the company's net
deferred tax assets.

As previously reported, net sales for the fourth quarter were 8.4% higher than
in the same period of 2011 and 7.9% ahead for the full year 2012.  Written sales
for the fourth quarter of 2012 increased 12.7% over the same quarter of 2011.

Clarence  H. Smith, chairman, president and CEO, said, "We are very pleased with
these  results and look  forward to the  opportunities in 2013.  The initiatives
towards  attracting the "on trend" customer are gaining traction.  This customer
wants  to  express  herself  and  we  convey  this  in  our successful "discover
something  you"  advertising  campaign.   To  meet  her  desire  for  unique and
personally  styled products, we  expanded and simplified  our custom and special
order upholstery programs which in 2012 were up almost 18% over 2011.  Our store
improvements  and stylish accessories better showcase all of our merchandise and
the  appeal of our  higher price point  products resulted in  a 7.8% increase in
average ticket and improved gross profit margins for 2012 compared to 2011.

"The   higher  sales  volume  enabled  us  to  better  leverage  our  fixed  and
discretionary  costs.  We  will manage  these and  our variable costs closely to
ensure  profitable sales growth.  Our positive cash  flow enabled us to meet our
working  capital requirements, planned capital  expenditures, and make a special
$22.0 million cash dividend without drawing on our credit facility.

"We  will be adjusting our square footage during 2013, closing stores in certain
markets  and expanding showrooms in desirable locations.   Our merchandising and
customer  centric focus distinguishes us in the marketplace and gives us an edge
over our competitors.  The improving housing and overall economic data bode well
for  Havertys as we are prepared operationally and financially to exploit shifts
in demand."


Financial Highlights

Fourth Quarter 2012 Compared to Fourth Quarter 2011
  * Net  sales were  up $14.0  million or  8.4% to $182.3 million and comparable
    store sales increased 6.0%.
  * Gross  profit margins were 52.8% as a  percent of sales compared to 52.3%, a
    50 basis point improvement.
  * Selling,  general  and  administrative  costs  increased  $4.5  million  and
    declined 1.3% as a percent of sales.
  * Pre-tax  income for 2012 increased  66.5% to $10.1 million  or 5.5% of sales
    versus $6.1 million or 3.6% of sales.

  * Income  tax expense in 2012 included a decrease in our reserve for uncertain
    tax  positions  of  $0.7  million,  compared  to  a  decrease in 2011 in the
    valuation allowance of $14.1 million.
  * Our retail store count at December 31, 2012 was 122 versus 119 at the end of
    2011.

Twelve Months ended December 31, 2012 Compared to Same Period of 2011
  * Net  sales  increased  $49.2  million  and  comparable store sales increased
    6.8%.
  * Gross profit margins increased by 0.8% to 52.5% as a percent of sales due to
    shifts in our merchandising and successful new product introductions.
  * Selling,  general  and  administrative  costs  increased  $13.0  million and
    declined 1.8% as a percent of sales.
  * Pre-tax  income for 2012 increased 410.9% to  $23.5 million or 3.5% of sales
    versus $4.6 million or 0.7% of sales.
  * Income  tax expense in 2012 included a decrease in our reserve for uncertain
    tax positions of $0.7 compared to a decrease in 2011 of $14.1 million in the
    valuation allowance.

Expectations and Other
  * Both  total written  business and  delivered sales  for the first quarter to
    date  of  2013 are  up  approximately  14% over  the  same period last year.
     Comparisons  for the remainder of the  quarter will be more difficult given
    last  year's strong March,  one less day  in February this  year, and Easter
    weekend,  which is slow for furniture sales, falls in March this year versus
    April last year.
  * We  plan to continue our merchandising approach  in 2013 and use promotional
    pricing  selectively during traditional holiday  and other sales events.  We
    expect  that our annual gross profit margins  for 2013 will be similar to or
    slightly ahead of the annual 2012 level.
  * SG&A expenses in 2013 should be leveraged with continuing sales growth since
    we  have  considerable  additional  capacity  in  our store and distribution
    infrastructure.   We do  expect some  increases in  our period  costs due to
    additional    advertising    and   personnel   expense   and   believe   our
    fixed/discretionary  costs will  be $220  to $222  million, up approximately
    4.5% over those same costs in 2012.  These costs are expected to be incurred
    evenly  on a quarterly basis in 2013 versus prior years, in which the second
    quarter  costs were lower.  Variable SG&A expenses  should continue to be in
    the 17.3% to 17.5% range as a percent of sales for 2013.
  * Our  effective tax rate  for 2013 is expected  to be in  the 38.5% to 38.8%
    range.
  * Planned  capital  expenditures  for  2013 are  $20.0  million.  We expect to
    expand  three of the stores undergoing major remodeling and complete another
    18 of  our  Bright  Inspirations  store  refreshes.   Our plans also include
    closing  three store  locations during  the first  half of  2013,  these and
    other  changes  should  result  in  a  1.0% decrease  in total retail square
    footage from 2012.




  HAVERTY FURNITURE COMPANIES, INC.

  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

  (In Thousands, except per share data - Unaudited)



                             Three Months Ended              Year Ended
                                December 31,                December 31,
                         --------------------------- ---------------------------
                             2012          2011          2012          2011
                         ------------- ------------- ------------- -------------


 Net sales                  $ 182,307     $ 168,259     $ 670,073     $ 620,903

 Cost of goods sold            86,036        80,338       318,038       300,187
                         ------------- ------------- ------------- -------------
       Gross profit            96,271        87,921       352,035       320,716

 Credit service
 charges                           77            98           293           460
                         ------------- ------------- ------------- -------------
       Gross profit
       and other
       revenue                 96,348        88,019       352,328       321,176
                         ------------- ------------- ------------- -------------


 Expenses:

       Selling,
       general and
       administrative          86,098        81,583       328,826       315,865

       Interest, net              150           160           624           737

       Provision for
       doubtful
       accounts                    65            43           165           167

       Other (income)
       expense, net               (58 )         172          (803 )        (196 )
                         ------------- ------------- ------------- -------------
                               86,255        81,958       328,812       316,573
                         ------------- ------------- ------------- -------------


 Income before income
 taxes                         10,093         6,061        23,516         4,603

 Income tax expense
 (benefit)                      3,314       (10,897 )       8,605       (10,860 )
                         ------------- ------------- ------------- -------------
       Net income           $   6,779     $  16,958     $  14,911     $  15,463
                         ------------- ------------- ------------- -------------


 Basic earnings per
 share:

       Common Stock         $    0.31     $    0.78     $    0.69     $    0.71

       Class A Common
       Stock                $    0.28     $    0.74     $    0.58     $    0.67



 Diluted earnings per
 share:

       Common Stock         $    0.30     $    0.76     $    0.67     $    0.70

       Class A Common
       Stock                $    0.29     $    0.73     $    0.59     $    0.67



 Basic weighted
 average shares
 outstanding:

       Common Stock            19,330        18,731        19,096        18,633

       Class A Common
       Stock                    2,815         3,218         2,943         3,287



 Diluted weighted
 average shares
 outstanding:

       Common Stock            22,566        22,218        22,382        22,153

       Class A Common
       Stock                    2,815         3,218         2,943         3,287



 Cash dividend per
 common share:

       Common Stock         $  1.0400     $  0.1200     $  1.1200     $  0.1200

       Class A Common
       Stock                $  0.9875     $  0.1125     $  1.0625     $  0.1125





  HAVERTY FURNITURE COMPANIES, INC.

  CONDENSED CONSOLIDATED BALANCE SHEETS

  (In Thousands - Unaudited)



                                                           December 31,
                                                     -------------------------
                                                         2012          2011
                                                     ------------ ------------
 ASSETS

 Current assets

       Cash and cash equivalents                       $  53,550    $  49,585

       Restricted cash and cash equivalents                7,013        6,813

       Accounts receivable                                 9,710       11,451

       Inventories                                        96,902       93,713

       Prepaid expenses                                    9,532       11,195

       Other current assets                                3,187        4,918
                                                     ------------ ------------
             Total current assets                        179,894      177,675



 Accounts receivable, long-term                              814          449

 Property and equipment                                  193,085      179,333

 Deferred income taxes                                    24,366       22,681

 Other assets                                              3,937        4,962
                                                     ------------ ------------
             Total assets                              $ 402,096    $ 385,100
                                                     ------------ ------------


 LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities

       Accounts payable                                $  28,178    $  21,218

       Customer deposits                                  20,963       14,572

       Accrued liabilities                                33,272       29,186

       Deferred income taxes                               6,595        6,635

       Current portion of lease obligations                  881          762
                                                     ------------ ------------
             Total current liabilities                    89,889       72,373



 Lease obligations, less current portion                  18,473       12,284

 Other liabilities                                        34,306       37,774
                                                     ------------ ------------
             Total liabilities                           142,668      122,431
                                                     ------------ ------------


 Stockholders' equity                                    259,428      262,669
                                                     ------------ ------------
             Total liabilities and stockholders'
             equity                                    $ 402,096    $ 385,100
                                                     ------------ ------------





  HAVERTY FURNITURE COMPANIES, INC.

  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

  (In Thousands - Unaudited)



                                                     Year Ended December 31,
                                                    --------------------------
                                                       2012           2011
                                                    -----------    -----------
 Cash Flows from Operating Activities:

      Net  income                                    $  14,911      $  15,463

      Adjustments to reconcile net income to net
      cash
        provided by operating activities:

           Depreciation and amortization                19,415         18,242

           Deferred income taxes                        (2,209 )       (7,947 )

           Share-based compensation expense              2,553          2,060

           Provision for doubtful accounts                 165            167

           Net loss (gain) on sale of property
           and equipment                                   (12 )           94

           Other                                           337            237

      Changes in operating assets and
      liabilities:

           Accounts receivable                           1,210          2,299

           Inventories                                  (3,458 )       (1,775 )

           Customer deposits                             6,391            987

           Other assets and liabilities                  1,818        (11,714 )

           Accounts payable and accrued
           liabilities                                  11,047            959
                                                      ---------      ---------
                Net cash provided by operating
                activities                              52,168         19,072
                                                      ---------      ---------


 Cash Flows from Investing Activities:

      Capital expenditures                             (25,014 )      (17,566 )

      Restricted cash and cash equivalents                (200 )       (6,813 )

      Proceeds from sale of property and
      equipment                                             38            157

      Other                                                410              -
                                                      ---------      ---------
                Net cash used in investing
                activities                             (24,766 )      (24,222 )
                                                      ---------      ---------


 Cash Flows from Financing Activities:

      Payments on lease obligations                       (766 )         (588 )

      Proceeds from exercise of stock options            2,457            285

      Dividends paid                                   (24,684 )       (2,609 )

      Other financing activities                          (444 )         (398 )
                                                      ---------      ---------
                Net cash used in financing
                activities                             (23,437 )       (3,310 )
                                                      ---------      ---------
 Increase (decrease) in cash and cash
 equivalents during the year                             3,965         (8,460 )

 Cash and cash equivalents at beginning of year         49,585         58,045
                                                      ---------      ---------
 Cash and cash equivalents at end of year            $  53,550      $  49,585
                                                      ---------      ---------





The following table summarizes the impact of various items on our tax expense
(in thousands):


                                                      2012           2011
                                                  ------------   -------------
 Statutory  rates applied to  income before income
 taxes                                               $  8,231       $   1,565

 State income taxes, net of Federal tax benefit           769             143

 Net non-deductible permanent differences                   8              33
                                                  ------------   -------------
                                                        9,008           1,741
                                                  ------------   -------------


 Change in deferred tax asset valuation allowance      (1,207 )       (14,121 )

 Change in state credits                                1,129             717

 Change for net operating loss carrybacks, amended
 returns
      and related receivables                             342             422

 Change in deferred tax rate                             (125 )           274

 Change in reserve for uncertain tax positions           (674 )            42

 Other                                                    132              65
                                                  ------------   -------------
                                                         (403 )       (12,601 )
                                                  ------------   -------------


     Income tax expense (benefit)                    $  8,605       $ (10,860 )
                                                  ------------   -------------



About Havertys

Havertys,  established in 1885, 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
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.

Conference Call Information

The  company will sponsor a conference call Tuesday, February 26, 2013 at 10:00
a.m.  Eastern Standard  Time to  review its  results.  Listen-only access to the
call  is  available  via  the  web  at  www.havertys.com  (For Investors) and at
www.streetevents.com  (Individual Investor Center), both  live and for a limited
time, on a replay basis.

Contact:
Haverty Furniture Companies, Inc., 404-443-2900
Dennis L. Fink
  EVP & CFO
Jenny Hill Parker
  SVP, Finance, Secretary and Treasurer

SOURCE:  Haverty Furniture Companies, Inc.




This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
    other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
     originality of the information contained therein.

Source: Haverty Furniture Company via Thomson Reuters ONE
[HUG#1680980]



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