Haverty Furniture Companies Inc.

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Havertys Reports Earnings for Second Quarter 2013



ATLANTA, GEORGIA, July 31, 2013 -- HAVERTY FURNITURE COMPANIES, INC. (NYSE: HVT
and HVT.A) reports earnings per share for the second quarter ended June
30, 2013 of  $0.21 compared to $0.11 for the same period of 2012.  The earnings
per share for the six months ended June 30, 2013 is $0.58 compared to $0.22 for
the same period of 2012.  The year to date earnings for 2013 include an out-of-
period adjustment recorded in the first quarter which favorably impacted gross
profit by $0.8 million or $0.02 per share after tax.

Clarence  H. Smith, chairman, president and  chief executive officer, said, "Our
initiatives  to improve the productivity of our stores and the efficiency of our
operations   continue   delivering  positive  results.   The  execution  of  our
merchandising  and marketing strategies  increased our average  sales ticket and
improved store traffic.  Housing sales in our regions, a key driver of business,
are  growing.  We believe our financial strength and positioning of the Havertys
brand  will  allow  us  to  outpace  our  competition  as housing and employment
improves.


Financial Highlights

Second Quarter 2013 Compared to Second Quarter 2012

  * Net sales increased 12.9% to $171.1 million.  Comparable store sales were up
    11.2%.  Total written business was up 16.7% and average ticket rose 7.7%.
  * Gross  profit  margins  increased  80 basis  points to 53.4% from 52.6% as a
    percent of sales, slightly ahead of our expectations.
  * Selling, general and administrative costs as a percent of sales decreased by
    180 basis  points to 48.6% from 50.4% as  fixed and discretionary costs were
    leveraged.   The increase in dollars of $6.8 million primarily resulted from
    variable  selling costs such as commissions, delivery and credit costs which
    rose  with  the  $19.6  million  sales  increase.   Salaries, management and
    incentive compensation and advertising expense were also higher.
  * We  closed our Jackson,  Mississippi and Roanoke,  Virginia locations midway
    through the quarter.  Our retail store count at June 30, 2013 was 119 versus
    120 at June 30, 2012.


Six Months ended June 30, 2013 Compared to Same Period of 2012

  * Net sales increased 13.4% to $357.2 million.  Comparable store sales were up
    11.3%.  Average ticket increased 10.3%.
  * Gross  profit margins, excluding the impact  of the first quarter adjustment
    noted  above, increased 100 basis points to 53.4% from 52.4% as a percent of
    sales.
  * Selling,  general and administrative  costs as a  percent of sales decreased
    240 basis   points   to   47.6% from   50.0% due  to  leveraging  fixed  and
    discretionary  costs.  The  $12.2 million  increase in  dollars is primarily
    related  to  increases  in:   commissions,  wages,  incentive  compensation,
    related payroll costs, and advertising.
Expectations and Other

  * Total  delivered  sales  for  the  third  quarter  to  date  of  2013 are up
    approximately  9.8% over the same period last  year.  Written business is up
    approximately 11.8%.
  * We  expect that  gross profit  margins for  the second  half of 2013 will be
    better  than the 52.7% margin for the second half of 2012 but modestly below
    the first half adjusted rate of 53.4%.
  * Fixed  and discretionary type  expenses within SG&A  costs for the full year
    2013 are expected to be at the high end of the $220 to $222 million range we
    discussed  in our 2012 Form  10-K representing an  increase of approximately
    4.5% over  the same costs for  2012.  These expenses will generally increase
    3% to  5% annually due to inflation, expansion, staffing, and decisions made
    on  the level of advertising spend.   The variable costs within SG&A for the
    full year 2013 are anticipated to be at the lower end of the range of 17.0%
    to 17.5% as a percent of sales.
  * Selling  square footage is  estimated to decrease  2.0% in 2013 based on the
    three  stores closed in the  first half and the  remodeling and expansion of
    stores currently in process.



  HAVERTY FURNITURE COMPANIES, INC.

  CONDENSED CONSOLIDATED STATEMENTS OF INCOME

  (In Thousands, except per share data - Unaudited)


                             Three Months Ended           Six Months  Ended
                                  June 30,                    June 30,
                         --------------------------- ---------------------------
                             2013          2012          2013          2012
                         ------------- ------------- ------------- -------------


 Net sales                  $ 171,114     $ 151,519     $ 357,204     $ 315,088

 Cost of goods sold            79,803        71,770       165,585       149,997
                         ------------- ------------- ------------- -------------
       Gross profit            91,311        79,749       191,619       165,091

 Credit service
 charges                           76            71           162           147
                         ------------- ------------- ------------- -------------
       Gross profit
       and other
       revenue                 91,387        79,820       191,781       165,238
                         ------------- ------------- ------------- -------------


 Expenses:

       Selling,
       general and
       administrative          83,197        76,409       169,859       157,646

       Interest, net              277           158           555           319

       Provision for
       doubtful
       accounts                    32             5            45            71

       Other (income)
       expense, net                15          (518 )           6          (585 )
                         ------------- ------------- ------------- -------------
                               83,521        76,054       170,465       157,451
                         ------------- ------------- ------------- -------------


 Income before income
 taxes                          7,866         3,766        21,316         7,787

 Income tax expense             3,036         1,405         8,226         2,969
                         ------------- ------------- ------------- -------------
       Net income           $   4,830     $   2,361     $  13,090     $   4,818
                         ------------- ------------- ------------- -------------


 Basic earnings per
 share:

       Common Stock         $    0.22     $    0.11     $    0.59     $    0.22

       Class A Common
       Stock                $    0.20     $    0.10     $    0.56     $    0.21



 Diluted earnings per
 share:

       Common Stock         $    0.21     $    0.11     $    0.58     $    0.22

       Class A Common
       Stock                $    0.20     $    0.10     $    0.55     $    0.21



 Basic weighted
 average shares
 outstanding:

       Common Stock            19,807        19,023        19,654        18,944

       Class A Common
       Stock                    2,614         2,989         2,682         3,037



 Diluted weighted
 average shares
 outstanding:

       Common Stock            22,791        22,313        22,754        22,292

       Class A Common
       Stock                    2,614         2,989         2,682         3,037



 Cash dividends per
 share:

       Common Stock         $  0.0400     $  0.0400     $  0.0800     $  0.0400

       Class A Common
       Stock                $  0.0375     $  0.0375     $  0.0750     $  0.0375





  HAVERTY FURNITURE COMPANIES, INC.

  CONDENSED CONSOLIDATED BALANCE SHEETS

  (In Thousands - Unaudited)


                                                  December
                                   June 30,         31,           June 30,
                                     2013           2012            2012
                                 -------------  ------------  ----------------
                                  (Unaudited)                     (Unaudited)

 ASSETS

 Current assets

       Cash and cash
       equivalents                 $   52,260     $  53,550     $      55,718

       Restricted cash and
       cash equivalents                 7,015         7,013             7,009

       Accounts receivable              8,290         9,710             9,700

       Inventories                     97,738        96,902            93,343

       Prepaid expenses                 7,711         9,532            11,121

       Other current assets             5,263         3,187             4,749
                                 -------------  ------------  ----------------
             Total current
             assets                   178,277       179,894           181,640
                                 -------------  ------------  ----------------


 Accounts receivable, long-
 term                                     825           814               314

 Property and equipment               191,917       193,085           183,829

 Deferred income taxes                 24,002        24,366            22,572

 Other assets                           4,116         3,937             3,830
                                 -------------  ------------  ----------------
             Total assets          $  399,137     $ 402,096     $     392,185
                                 -------------  ------------  ----------------


 LIABILITIES AND STOCKHOLDERS'
 EQUITY

 Current liabilities

       Accounts payable            $   20,370     $  28,178     $      16,236

       Customer deposits               22,643        20,963            16,762

       Accrued liabilities             30,009        33,272            35,371

       Deferred income taxes            6,595         6,595             6,696

       Current portion of
       lease obligations                  929           881               793
                                 -------------  ------------  ----------------
             Total current
             liabilities               80,546        89,889            75,858
                                 -------------  ------------  ----------------


 Lease obligations, less
 current portion                       16,988        18,473            11,880

 Other liabilities                     29,511        34,306            35,495
                                 -------------  ------------  ----------------
             Total liabilities        127,045       142,668           123,233
                                 -------------  ------------  ----------------


 Stockholders' equity                 272,092       259,428           268,952
                                 -------------  ------------  ----------------
             Total liabilities
             and stockholders'
             equity                $  399,137     $ 402,096     $     392,185
                                 -------------  ------------  ----------------





  HAVERTY FURNITURE COMPANIES, INC.

  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

  (In Thousands - Unaudited)


                                                         Six Months Ended
                                                             June 30,
                                                    --------------------------
                                                       2013           2012
                                                    -----------    -----------
 CASH FLOWS FROM OPERATING ACTIVITIES:

      Net  income                                    $  13,090      $   4,818

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

           Depreciation and amortization                10,486          9,418

           Share-based compensation expense              2,038          1,321

           Provision for doubtful accounts                  45             71

           Other                                           448            545

      Changes in operating assets and
      liabilities:

           Accounts receivable                           1,364          1,815

           Inventories                                    (836 )          101

           Customer deposits                             1,680          2,190

           Other assets and liabilities                 (4,267 )         (954 )

           Accounts payable and accrued
           liabilities                                 (11,071 )        1,203
                                                      ---------      ---------
                Net cash provided by operating
                activities                              12,977         20,528
                                                      ---------      ---------


 CASH FLOWS FROM INVESTING ACTIVITIES:

      Capital expenditures                             (10,225 )      (12,821 )

      Other                                                  4            236
                                                      ---------      ---------
                Net cash used in investing
                activities                             (10,221 )      (12,585 )
                                                      ---------      ---------


 CASH FLOWS FROM FINANCING ACTIVITIES:

      Payments on lease obligations                       (437 )         (373 )

      Dividends paid                                    (1,776 )         (875 )

      Proceeds from exercise of stock options              623              -

      Taxes on vested restricted shares                 (2,456 )         (515 )

      Other financing activities                             -            (47 )
                                                      ---------      ---------
                Net cash used in financing
                activities                              (4,046 )       (1,810 )
                                                      ---------      ---------
 (Decrease) increase in cash and cash
 equivalents during the period                          (1,290 )        6,133

 Cash and cash equivalents at beginning of
 period                                                 53,550         49,585
                                                      ---------      ---------
 Cash and cash equivalents at end of period          $  52,260      $  55,718
                                                      ---------      ---------





We report our earnings per share using the two-class method.  The income or loss
per  share for  each class  of common  stock is  calculated assuming 100% of our
earnings  or losses are distributed  as dividends to each  class of common stock
based on their contractual rights.

The  Common Stock of  the Company has  a preferential dividend  rate of at least
105% of the dividend paid on the Class A Common Stock. The Class A Common Stock,
which  has ten votes per share  as opposed to one vote  per share for the Common
Stock (on all matters other than the election of directors), may be converted at
any time on a one-for-one basis into Common Stock at the option of the holder of
the Class A Common Stock.

The  following is a reconciliation of the  earnings and number of shares used in
calculating  the diluted earnings per share for  Common Stock and Class A Common
Stock (in thousands):


                             Three Months Ended           Six Months Ended
                                  June 30,                    June 30,
                         --------------------------   ------------------------
                             2013          2012          2013          2012
                         ------------   -----------   ----------    ----------
 Numerator:

 Common:

      Distributed
      earnings             $     797      $    762     $  1,577      $    762

      Undistributed
      earnings                 3,497         1,293       10,013         3,421
                             --------      --------     --------      --------
           Basic               4,294         2,055       11,590         4,183

      Class A Common
      earnings                   536           306        1,500           635
                             --------      --------     --------      --------
           Diluted        $    4,830         2,361     $ 13,090         4,818
                             --------      --------     --------      --------


      Class A Common:

      Distributed
      earnings            $       96     $     113     $    199      $    113

      Undistributed
      earnings                   440           193        1,301           522
                             --------      --------     --------      --------
                          $      536     $     306     $  1,500      $    635
                             --------      --------     --------      --------


 Denominator:

 Common:

 Weighted average shares
 outstanding - basic          19,807        19,023       19,654        18,944

 Assumed conversion of
 Class A Common Stock          2,614         2,989        2,682         3,037

 Dilutive options, awards
 and common stock
 equivalents                     370           301          418           311
                             --------      --------     --------      --------


 Total weighted-average
 diluted Common Stock         22,791        22,313       22,754        22,292
                             --------      --------     --------      --------


 Class A Common:

 Weighted average shares
 outstanding                   2,614         2,989        2,682         3,037
                             --------      --------     --------      --------


 Antidilutive shares
 excluded from the
 denominator due to
  options' exercise
 prices being greater
 than the average
  market price                     -           292            -           292
                             --------      --------     --------      --------



About Havertys

Havertys,  established in 1885, is a full-service home furnishings retailer with
119 showrooms  in 16 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 invites interested parties  to listen to the  live audiocast of the
conference  call at  its website, www.havertys.com under  the investor relations
section.   If you can not listen live, a replay will be available at the website
or  via  telephone  at  approximately  12:00 p.m.  EDT  through Thursday, August
8, 2013. The  number to access the  telephone playback is 1-800-406-7325 (access
code: 4632971#).


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#1720319]



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