Oct 30, 2018 6:12 PM
“The 10% tariff on furniture, accessories, and related components imported into the
Financial Highlights
Third Quarter 2018 Compared to Third Quarter 2017
Nine Months ended
Expectations and Other
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(In thousands, except per share data – Unaudited) |
Three Months Ended | Nine Months Ended | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
$ | 210,547 | $ | 207,647 | $ | 608,765 | $ | 604,904 | |||||||||
Cost of goods sold | 95,175 | 95,632 | 276,689 | 276,175 | ||||||||||||
Gross Profit | 115,372 | 112,015 | 332,076 | 328,729 | ||||||||||||
Credit service charges | 24 | 38 | 81 | 126 | ||||||||||||
Gross profit and other revenue | 115,396 | 112,053 | 332,157 | 328,855 | ||||||||||||
Expenses: | ||||||||||||||||
Selling, general and administrative | 103,185 | 102,099 | 302,942 | 299,310 | ||||||||||||
Provision for doubtful accounts | 34 | 18 | 58 | 181 | ||||||||||||
Other expense (income), net | 713 | (276 | ) | (98 | ) | (1,430 | ) | |||||||||
Total expenses | 103,932 | 101,841 | 302,902 | 298,061 | ||||||||||||
Income before interest and income taxes | 11,464 | 10,212 | 29,255 | 30,794 | ||||||||||||
Interest expense, net | 260 | 493 | 1,184 | 1,641 | ||||||||||||
Income before income taxes | 11,204 | 9,719 | 28,071 | 29,153 | ||||||||||||
Income tax expense | 2,852 | 3,736 | 7,192 | 10,999 | ||||||||||||
Net income | $ | 8,352 | $ | 5,983 | $ | 20,879 | $ | 18,154 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Common Stock | $ | 0.39 | $ | 0.28 | $ | 0.98 | $ | 0.84 | ||||||||
Class A Common Stock | $ | 0.38 | $ | 0.27 | $ | 0.94 | $ | 0.81 | ||||||||
Diluted weighted average shares outstanding: | ||||||||||||||||
Common Stock | 21,230 | 21,610 | 21,408 | 21,582 | ||||||||||||
Class A Common Stock | 1,765 | 1,798 | 1,766 | 1,804 | ||||||||||||
Cash dividends per share: | ||||||||||||||||
Common Stock | $ | 0.1800 | $ | 0.1500 | $ | 0.5400 | $ | 0.3900 | ||||||||
Class A Common Stock | $ | 0.1700 | $ | 0.1425 | $ | 0.5100 | $ | 0.3675 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands – Unaudited) |
2018 | 2017 | 2017 | |||||||||||
(Unaudited) | (Unaudited) | ||||||||||||
ASSETS | |||||||||||||
Current assets | |||||||||||||
Cash and cash equivalents | $ | 96,269 | $ | 79,491 | $ | 86,903 | |||||||
Restricted cash and cash equivalents | 8,226 | 8,115 | 8,089 | ||||||||||
Accounts receivable, net | 1,827 | 2,408 | 2,706 | ||||||||||
Inventories | 108,344 | 103,437 | 99,664 | ||||||||||
Prepaid expenses | 9,818 | 11,314 | 8,910 | ||||||||||
Other current assets | 6,291 | 5,922 | 6,973 | ||||||||||
Total current assets | 230,775 | 210,687 | 213,245 | ||||||||||
Accounts receivable, long-term, net | 227 | 254 | 311 | ||||||||||
Property and equipment, net | 220,286 | 229,215 | 226,693 | ||||||||||
Deferred income taxes | 12,896 | 12,375 | 21,339 | ||||||||||
Other assets | 9,400 | 8,798 | 8,611 | ||||||||||
Total assets | $ | 473,584 | $ | 461,329 | $ | 470,199 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Current liabilities | |||||||||||||
Accounts payable | $ | 24,926 | $ | 20,501 | $ | 26,550 | |||||||
Customer deposits | 30,541 | 27,813 | 29,454 | ||||||||||
Accrued liabilities | 41,713 | 37,582 | 38,418 | ||||||||||
Current portion of lease obligations | 3,938 | 3,788 | 3,733 | ||||||||||
Total current liabilities | 101,118 | 89,684 | 98,155 | ||||||||||
Lease obligations, less current portion | 47,829 | 50,803 | 51,523 | ||||||||||
Other liabilities | 32,214 | 26,700 | 26,549 | ||||||||||
Total liabilities | 181,161 | 167,187 | 176,227 | ||||||||||
Stockholders’ equity | 292,423 | 294,142 | 293,972 | ||||||||||
Total liabilities and stockholders’ equity | $ | 473,584 | $ | 461,329 | $ | 470,199 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In thousands – Unaudited) |
Nine Months Ended | |||||||
2018 | 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 20,879 | $ | 18,154 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 22,650 | 22,819 | |||||
Stock-based compensation expense | 3,781 | 3,045 | |||||
Deferred income taxes | (592 | ) | (2,990 | ) | |||
Gain on insurance recovery | (307 | ) | (1,531 | ) | |||
Proceeds from insurance recovery | 266 | 916 | |||||
Provision for doubtful accounts | 58 | 181 | |||||
Other | 866 | 626 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 550 | 1,508 | |||||
Inventories | (4,907 | ) | 2,356 | ||||
Customer deposits | 2,728 | 4,531 | |||||
Other assets and liabilities | 6,534 | 1,977 | |||||
Accounts payable and accrued liabilities | 9,988 | (2,844 | ) | ||||
Net cash provided by operating activities | 62,494 | 48,748 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital expenditures | (18,231 | ) | (15,394 | ) | |||
Proceeds from sale of property and equipment | 2,421 | - | |||||
Proceeds from insurance for destroyed property and equipment | 55 | 1,045 | |||||
Other | - | 83 | |||||
Net cash used in investing activities | (15,755 | ) | (14,266 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Payments on lease obligations | (2,824 | ) | (2,577 | ) | |||
Taxes on vested restricted shares | (1,233 | ) | (1,555 | ) | |||
Dividends paid | (11,337 | ) | (8,223 | ) | |||
Common stock purchased | (14,456 | ) | - | ||||
Construction allowance receipts | - | 1,350 | |||||
Net cash used in financing activities | (29,850 | ) | (11,005 | ) | |||
Increase in cash, cash equivalents and restricted cash equivalents during the period | 16,889 | 23,477 | |||||
Cash, cash equivalents and restricted cash equivalents at beginning of period | 87,606 | 71,515 | |||||
Cash, cash equivalents and restricted cash equivalents at end of period | $ | 104,495 | $ | 94,992 | |||
SG&A Expense Classification
We classify our SG&A expenses as either variable or fixed and discretionary. Our variable expenses are comprised of selling and delivery costs. Selling expenses are primarily compensation and related benefits for our commission-based sales associates, the discount we pay for third party financing of customer sales and transaction fees for credit card usage. We do not outsource delivery so these costs include personnel, fuel, and other expenses related to this function. Fixed and discretionary expenses are comprised of rent, depreciation and amortization and other occupancy costs for stores, warehouses and offices, and all advertising and administrative costs.
Conference Call Information
The company invites interested parties to listen to the live audiocast of the conference call on
About Havertys
Havertys (NYSE: HVT and HVT.A), established in 1885, is a full-service home furnishing retailer with 120 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, havertys.com.
Safe Harbor
This press release includes statements that constitute forward-looking statements within the meaning of the federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which are not historical in nature. We intend for all forward-looking statements contained herein or on our website, and all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf, to be covered by the safe harbor provisions for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Forward-looking statements may relate to, for example, future operations, financial condition, economic performance (including gross profit margins and expenses), capital expenditures, and demand for our products. The Company cautions that its forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, the state of the economy; state of the residential construction and housing markets; the consumer spending environment for big ticket items; effects of competition; management of relationships with our suppliers and vendors and disruptions in their operations; the imposition of tariffs and other trade barriers and the effect of retaliatory trade measures; new regulations or taxation plans, as well as other risks and uncertainties discussed in the Company's Annual Report on Form 10-K and from time to time in the Company's filings with the
Contact:
Havertys (404) 443-2900
EVP & CFO
SVP, Finance, Secretary and Treasurer
SOURCE: Havertys
Source: