Aug 01, 2016 4:45 PM
We are focused on reducing costs and improving operations, measured store growth and returns to shareholders. We recently completed the expansion of our Florida Distribution Center in
The macro environment for new and existing home sales remains positive but slower economic growth and shocks from political and world events remain a concern. We believe our position and plans will garner market share gains, improve profitability and returns to shareholders.”
Financial Highlights
Second Quarter 2016 Compared to Second Quarter 2015
Six Months ended
Expectations and Other
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
(In Thousands, except per share data – Unaudited) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||
Net sales | $ | 194,774 | $ | 187,732 | $ | 389,285 | $ | 379,063 | ||||||
Cost of goods sold | 90,614 | 87,550 | 180,706 | 176,234 | ||||||||||
Gross profit | 104,160 | 100,182 | 208,579 | 202,829 | ||||||||||
Credit service charges | 54 | 69 | 119 | 142 | ||||||||||
Gross profit and other revenue | 104,214 | 100,251 | 208,698 | 202,971 | ||||||||||
Expenses: | ||||||||||||||
Selling, general and administrative | 96,711 | 92,744 | 193,064 | 185,048 | ||||||||||
Provision for doubtful accounts | 111 | 61 | 215 | 84 | ||||||||||
Other income, net | (1,911 | ) | (921 | ) | (2,093 | ) | (947 | ) | ||||||
Total expenses | 94,911 | 91,884 | 191,186 | 184,185 | ||||||||||
Income before interest and income taxes | 9,303 | 8,367 | 17,512 | 18,786 | ||||||||||
Interest expense, net | 541 | 528 | 1,163 | 1,019 | ||||||||||
Income before income taxes | 8,762 | 7,839 | 16,349 | 17,767 | ||||||||||
Income tax expense | 3,388 | 3,006 | 6,306 | 6,815 | ||||||||||
Net income | $ | 5,374 | $ | 4,833 | $ | 10,043 | $ | 10,952 | ||||||
Basic earnings per share: | ||||||||||||||
Common Stock | $ | 0.25 | $ | 0.21 | $ | 0.46 | $ | 0.49 | ||||||
Class A Common Stock | $ | 0.24 | $ | 0.20 | $ | 0.44 | $ | 0.46 | ||||||
Diluted earnings per share: | ||||||||||||||
Common Stock | $ | 0.24 | $ | 0.21 | $ | 0.45 | $ | 0.48 | ||||||
Class A Common Stock | $ | 0.23 | $ | 0.20 | $ | 0.43 | $ | 0.46 | ||||||
Basic weighted average shares outstanding: | ||||||||||||||
Common Stock | 19,645 | 20,600 | 19,883 | 20,585 | ||||||||||
Class A Common Stock | 2,027 | 2,079 | 2,029 | 2,080 | ||||||||||
Diluted weighted average shares outstanding: | ||||||||||||||
Common Stock | 21,989 | 22,955 | 22,243 | 22,967 | ||||||||||
Class A Common Stock | 2,027 | 2,079 | 2,029 | 2,080 | ||||||||||
Cash dividends per share: | ||||||||||||||
Common Stock | $ | 0.100 | $ | 0.080 | $ | 0.200 | $ | 0.160 | ||||||
Class A Common Stock | $ | 0.095 | $ | 0.075 | $ | 0.190 | $ | 0.150 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(In Thousands - Unaudited) | ||||||||||||
2016 | 2015 | 2015 | ||||||||||
(Unaudited) | (Unaudited) | |||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 48,525 | $ | 70,659 | $ | 66,701 | ||||||
Investments | 1,250 | 12,725 | 6,500 | |||||||||
Restricted cash and cash equivalents | 8,017 | 8,005 | 8,002 | |||||||||
Accounts receivable | 4,572 | 5,948 | 6,107 | |||||||||
Inventories | 109,942 | 108,896 | 112,345 | |||||||||
Prepaid expenses | 15,912 | 6,137 | 9,434 | |||||||||
Other current assets | 5,601 | 6,341 | 6,761 | |||||||||
Total current assets | 193,819 | 218,711 | 215,850 | |||||||||
Accounts receivable, long-term | 511 | 655 | 678 | |||||||||
Property and equipment | 238,014 | 229,283 | 231,486 | |||||||||
Deferred income taxes | 18,423 | 17,245 | 17,897 | |||||||||
Other assets | 6,184 | 5,357 | 7,082 | |||||||||
Total assets | $ | 456,951 | $ | 471,251 | $ | 472,993 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | $ | 25,375 | $ | 27,815 | $ | 23,769 | ||||||
Customer deposits | 27,809 | 21,036 | 30,038 | |||||||||
Accrued liabilities | 34,531 | 42,060 | 34,504 | |||||||||
Deferred income taxes | — | — | 5,689 | |||||||||
Current portion of lease obligations | 3,341 | 3,051 | 2,928 | |||||||||
Total current liabilities | 91,056 | 93,962 | 96,928 | |||||||||
Lease obligations, less current portion | 52,179 | 50,074 | 50,712 | |||||||||
Other liabilities | 25,776 | 25,476 | 26,129 | |||||||||
Total liabilities | 169,011 | 169,512 | 173,769 | |||||||||
Stockholders’ equity | 287,940 | 301,739 | 299,224 | |||||||||
Total liabilities and stockholders’ equity | $ | 456,951 | $ | 471,251 | $ | 472,993 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(In Thousands – Unaudited) | ||||||||||
Six Months Ended | ||||||||||
2016 | 2015 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | $ | 10,043 | $ | 10,952 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 13,992 | 12,503 | ||||||||
Share-based compensation expense | 2,163 | 2,160 | ||||||||
Gain on insurance recovery | (1,914 | ) | — | |||||||
Proceeds from insurance recovery for destroyed inventory | 1,041 | — | ||||||||
Provision for doubtful accounts | 215 | 84 | ||||||||
Other | (747 | ) | 621 | |||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable | 1,305 | 1,008 | ||||||||
Inventories | (1,046 | ) | (5,206 | ) | ||||||
Customer deposits | 6,773 | 6,351 | ||||||||
Other assets and liabilities | (10,927 | ) | (3,022 | ) | ||||||
Accounts payable and accrued liabilities | (10,269 | ) | (7,350 | ) | ||||||
Net cash provided by operating activities | 10,629 | 18,101 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Capital expenditures | (18,523 | ) | (14,521 | ) | ||||||
Maturities of investments | 11,500 | 2,250 | ||||||||
Proceeds from insurance recovery for destroyed property | 2,297 | — | ||||||||
Other | 1 | 33 | ||||||||
Net cash used in investing activities | (4,725 | ) | (12,238 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Construction allowance receipts | — | 3,286 | ||||||||
Payments on lease obligations | (1,505 | ) | (1,226 | ) | ||||||
Taxes on vested restricted shares | (883 | ) | (1,152 | ) | ||||||
Dividends paid | (4,368 | ) | (3,609 | ) | ||||||
Common stock purchased | (21,282 | ) | (1,942 | ) | ||||||
Net cash used in financing activities | (28,038 | ) | (4,643 | ) | ||||||
(Decrease) increase in cash and cash equivalents during the period | (22,134 | ) | 1,220 | |||||||
Cash and cash equivalents at beginning of period | 70,659 | 65,481 | ||||||||
Cash and cash equivalents at end of period | $ | 48,525 | $ | 66,701 | ||||||
About Havertys
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
Conference Call Information
The company invites interested parties to listen to the live audiocast of the conference call on
Contact:Source:Haverty Furniture Companies, Inc. , 404-443-2900Dennis L. Fink EVP & CFOJenny Hill Parker SVP, Finance, Secretary and Treasurer