☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ |
Maryland | 58-0281900 | |||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||
780 Johnson Ferry Road, Suite 800 Atlanta, Georgia | 30342 | |||||
(Address of principal executive offices) | (Zip Code) | |||||
(404) 443-2900 | ||||||
(Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock | HVT | NYSE | ||||||
Class A Common Stock | HVTA | NYSE |
Large accelerated filer | Accelerated filer | Non-accelerated filer | |||||||||||||||||
Smaller reporting company | Emerging growth company |
Page No. | ||||||||
September 30, | ||||||||
Three and Nine Months Ended September 30, | ||||||||
Nine Months Ended September 30, | ||||||||
(In thousands) | September 30, 2021 | December 31, 2020 | ||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 225,674 | $ | 200,058 | ||||
Restricted cash and cash equivalents | 6,716 | 6,713 | ||||||
Inventories | 118,961 | 89,908 | ||||||
Prepaid expenses | 13,729 | 9,580 | ||||||
Other current assets | 13,441 | 9,985 | ||||||
Total current assets | 378,521 | 316,244 | ||||||
Property and equipment, net | 124,795 | 108,366 | ||||||
Right-of-use lease assets | 229,975 | 228,749 | ||||||
Deferred income taxes | 18,120 | 15,814 | ||||||
Other assets | 12,349 | 11,199 | ||||||
Total assets | $ | 763,760 | $ | 680,372 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 34,663 | $ | 31,429 | ||||
Customer deposits | 120,149 | 86,183 | ||||||
Accrued liabilities | 56,880 | 52,963 | ||||||
Current lease liabilities | 34,108 | 33,466 | ||||||
Total current liabilities | 245,800 | 204,041 | ||||||
Noncurrent lease liabilities | 203,935 | 200,200 | ||||||
Other liabilities | 22,484 | 23,164 | ||||||
Total liabilities | 472,219 | 427,405 | ||||||
Stockholders’ equity | ||||||||
Capital Stock, par value $1 per share | ||||||||
Preferred Stock, Authorized – 1,000 shares; Issued: NaN | 0 | 0 | ||||||
Common Stock, Authorized – 50,000 shares; Issued: 2021 – 29,906; 2020 – 29,600 | 29,906 | 29,600 | ||||||
Convertible Class A Common Stock, Authorized – 15,000 shares; Issued: 2021 – 1,810; 2020 – 1,996 | 1,810 | 1,996 | ||||||
Additional paid-in capital | 100,816 | 96,850 | ||||||
Retained earnings | 358,113 | 304,626 | ||||||
Accumulated other comprehensive loss | (2,412 | ) | (2,560 | ) | ||||
Less treasury stock at cost – Common Stock (2021 – 13,374; and 2020 – 12,862 shares) and Convertible Class A Common Stock (2021 and 2020 – 522 shares) | (196,692 | ) | (177,545 | ) | ||||
Total stockholders’ equity | 291,541 | 252,967 | ||||||
Total liabilities and stockholders’ equity | $ | 763,760 | $ | 680,372 |
(In thousands) | September 30, 2022 | December 31, 2021 | |||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 137,226 | $ | 166,146 | |||||||
Restricted cash and cash equivalents | 6,753 | 6,716 | |||||||||
Inventories | 137,315 | 112,031 | |||||||||
Prepaid expenses | 11,992 | 12,418 | |||||||||
Other current assets | 16,801 | 11,746 | |||||||||
Total current assets | 310,087 | 309,057 | |||||||||
Property and equipment, net | 135,300 | 126,099 | |||||||||
Right-of-use lease assets | 217,848 | 222,356 | |||||||||
Deferred income taxes | 17,834 | 16,375 | |||||||||
Other assets | 11,877 | 12,403 | |||||||||
Total assets | $ | 692,946 | $ | 686,290 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 24,932 | $ | 31,235 | |||||||
Customer deposits | 79,746 | 98,897 | |||||||||
Accrued liabilities | 53,366 | 46,664 | |||||||||
Current lease liabilities | 34,702 | 33,581 | |||||||||
Total current liabilities | 192,746 | 210,377 | |||||||||
Noncurrent lease liabilities | 196,799 | 196,771 | |||||||||
Other liabilities | 19,792 | 23,172 | |||||||||
Total liabilities | 409,337 | 430,320 | |||||||||
Stockholders’ equity | |||||||||||
Capital Stock, par value $1 per share | |||||||||||
Preferred Stock, Authorized – 1,000 shares; Issued: None | |||||||||||
Common Stock, Authorized – 50,000 shares; Issued: 2022 – 30,006; 2021 – 29,907 | 30,006 | 29,907 | |||||||||
Convertible Class A Common Stock, Authorized – 15,000 shares; Issued: 2022 – 1,806; 2021 – 1,809 | 1,806 | 1,809 | |||||||||
Additional paid-in capital | 107,510 | 102,572 | |||||||||
Retained earnings | 395,237 | 342,983 | |||||||||
Accumulated other comprehensive loss | (2,171) | (2,293) | |||||||||
Less treasury stock at cost – Common Stock (2022 – 15,142 and 2021 – 14,069 shares) and Convertible Class A Common Stock (2022 and 2021 – 522 shares) | (248,779) | (219,008) | |||||||||
Total stockholders’ equity | 283,609 | 255,970 | |||||||||
Total liabilities and stockholders’ equity | $ | 692,946 | $ | 686,290 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(In thousands, except per share data - unaudited) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net sales | $ | 260,378 | $ | 217,513 | $ | 746,858 | $ | 506,913 | ||||||||
Cost of goods sold | 112,375 | 95,336 | 322,320 | 225,537 | ||||||||||||
Gross profit | 148,003 | 122,177 | 424,538 | 281,376 | ||||||||||||
Expenses: | ||||||||||||||||
Selling, general and administrative | 116,156 | 100,097 | 338,315 | 270,281 | ||||||||||||
Other expense (income), net | 2 | (2,401 | ) | (40 | ) | (34,298 | ) | |||||||||
Total expenses | 116,158 | 97,696 | 338,275 | 235,983 | ||||||||||||
Income before interest and income taxes | 31,845 | 24,481 | 86,263 | 45,393 | ||||||||||||
Interest income, net | 58 | 51 | 173 | 64 | ||||||||||||
Income before income taxes | 31,903 | 24,532 | 86,436 | 45,457 | ||||||||||||
Income tax expense | 7,670 | 6,271 | 19,939 | 11,737 | ||||||||||||
Net income | $ | 24,233 | $ | 18,261 | $ | 66,497 | $ | 33,720 | ||||||||
Other comprehensive income | ||||||||||||||||
Adjustments related to retirement plans; net of tax expense of $16 and $48 in 2021 and $10 and $30 in 2020 | $ | 50 | $ | 30 | $ | 148 | $ | 90 | ||||||||
Comprehensive income | $ | 24,283 | $ | 18,291 | $ | 66,645 | $ | 33,810 | ||||||||
Basic earnings per share: | ||||||||||||||||
Common Stock | $ | 1.35 | $ | 0.98 | $ | 3.67 | $ | 1.80 | ||||||||
Class A Common Stock | $ | 1.28 | $ | 0.94 | $ | 3.45 | $ | 1.71 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Common Stock | $ | 1.31 | $ | 0.97 | $ | 3.55 | $ | 1.77 | ||||||||
Class A Common Stock | $ | 1.25 | $ | 0.93 | $ | 3.38 | $ | 1.70 | ||||||||
Cash dividends per share: | ||||||||||||||||
Common Stock | $ | 0.25 | $ | 0.20 | $ | 0.72 | $ | 0.55 | ||||||||
Class A Common Stock | $ | 0.23 | $ | 0.19 | $ | 0.65 | $ | 0.52 |
(In thousands, except per share data - unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net sales | $ | 274,495 | $ | 260,378 | $ | 766,658 | $ | 746,858 | |||||||||||||||
Cost of goods sold | 117,775 | 112,375 | 322,368 | 322,320 | |||||||||||||||||||
Gross profit | 156,720 | 148,003 | 444,290 | 424,538 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Selling, general and administrative | 124,534 | 116,156 | 357,816 | 338,315 | |||||||||||||||||||
Other expense (income), net | 58 | 2 | 176 | (40) | |||||||||||||||||||
Total expenses | 124,592 | 116,158 | 357,992 | 338,275 | |||||||||||||||||||
Income before interest and income taxes | 32,128 | 31,845 | 86,298 | 86,263 | |||||||||||||||||||
Interest income, net | 481 | 58 | 699 | 173 | |||||||||||||||||||
Income before income taxes | 32,609 | 31,903 | 86,997 | 86,436 | |||||||||||||||||||
Income tax expense | 8,058 | 7,670 | 21,377 | 19,939 | |||||||||||||||||||
Net income | $ | 24,551 | $ | 24,233 | $ | 65,620 | $ | 66,497 | |||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Adjustments related to retirement plans; net of tax expense of $14 and $41 in 2022 and $16 and $48 in 2021 | $ | 41 | $ | 50 | $ | 122 | $ | 148 | |||||||||||||||
Comprehensive income | $ | 24,592 | $ | 24,283 | $ | 65,742 | $ | 66,645 | |||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||
Common Stock | $ | 1.51 | $ | 1.35 | $ | 3.96 | $ | 3.67 | |||||||||||||||
Class A Common Stock | $ | 1.43 | $ | 1.28 | $ | 3.75 | $ | 3.45 | |||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||
Common Stock | $ | 1.46 | $ | 1.31 | $ | 3.83 | $ | 3.55 | |||||||||||||||
Class A Common Stock | $ | 1.40 | $ | 1.25 | $ | 3.66 | $ | 3.38 | |||||||||||||||
Cash dividends per share: | |||||||||||||||||||||||
Common Stock | $ | 0.28 | $ | 0.25 | $ | 0.81 | $ | 0.72 | |||||||||||||||
Class A Common Stock | $ | 0.26 | $ | 0.23 | $ | 0.75 | $ | 0.65 |
(In thousands - unaudited) | Nine Months Ended September 30, | |||||||
2021 | 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 66,497 | $ | 33,720 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 12,099 | 13,959 | ||||||
Share-based compensation expense | 6,456 | 3,362 | ||||||
Gain from sale of land, property and equipment | (74 | ) | (34,202 | ) | ||||
Other | (1,484 | ) | 1,259 | |||||
Changes in operating assets and liabilities: | ||||||||
Inventories | (29,053 | ) | 13,873 | |||||
Customer deposits | 33,966 | 58,287 | ||||||
Operating lease assets and liabilities, net | 3,151 | 1,156 | ||||||
Other assets and liabilities | (9,239 | ) | (4,997 | ) | ||||
Accounts payable and accrued liabilities | 6,679 | 13,404 | ||||||
Net cash provided by operating activities | 88,998 | 99,821 | ||||||
Cash Flows from Investing Activities: | ||||||||
Capital expenditures | (28,060 | ) | (7,205 | ) | ||||
Proceeds from sale of land, property and equipment | 78 | 74,399 | ||||||
Net cash (used in) provided by investing activities | (27,982 | ) | 67,194 | |||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from borrowings under revolving credit facility | 0 | 43,800 | ||||||
Payments of borrowings under revolving credit facility | 0 | (43,800 | ) | |||||
Net change in borrowings under revolving credit facility | 0 | 0 | ||||||
Dividends paid | (13,010 | ) | (10,271 | ) | ||||
Common stock repurchased | (19,493 | ) | (19,708 | ) | ||||
Other | (2,894 | ) | (876 | ) | ||||
Net cash used in financing activities | (35,397 | ) | (30,855 | ) | ||||
Increase in cash, cash equivalents and restricted cash equivalents during the period | 25,619 | 136,160 | ||||||
Cash, cash equivalents and restricted cash equivalents at beginning of period | 206,771 | 82,402 | ||||||
Cash, cash equivalents and restricted cash equivalents at end of period | $ | 232,390 | $ | 218,562 |
(In thousands - unaudited) | Nine Months Ended September 30, | ||||||||||
2022 | 2021 | ||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 65,620 | $ | 66,497 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 12,744 | 12,099 | |||||||||
Share-based compensation expense | 6,032 | 6,456 | |||||||||
Other | (450) | (1,558) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Inventories | (25,284) | (29,053) | |||||||||
Customer deposits | (19,151) | 33,966 | |||||||||
Other assets and liabilities | (7,318) | (6,088) | |||||||||
Accounts payable and accrued liabilities | 6,007 | 6,679 | |||||||||
Net cash provided by operating activities | 38,200 | 88,998 | |||||||||
Cash Flows from Investing Activities: | |||||||||||
Capital expenditures | (22,109) | (28,060) | |||||||||
Proceeds from sale of land, property and equipment | 66 | 78 | |||||||||
Net cash used in investing activities | (22,043) | (27,982) | |||||||||
Cash Flows from Financing Activities: | |||||||||||
Dividends paid | (13,366) | (13,010) | |||||||||
Common stock repurchased | (29,998) | (19,493) | |||||||||
Other | (1,676) | (2,894) | |||||||||
Net cash used in financing activities | (45,040) | (35,397) | |||||||||
(Decrease) increase in cash, cash equivalents and restricted cash equivalents during the period | (28,883) | 25,619 | |||||||||
Cash, cash equivalents and restricted cash equivalents at beginning of period | 172,862 | 206,771 | |||||||||
Cash, cash equivalents and restricted cash equivalents at end of period | $ | 143,979 | $ | 232,390 |
(in thousands) | Common Stock | Class A Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | 30,006 | $ | 1,806 | $ | 105,674 | $ | 375,234 | $ | (2,212) | $ | (243,782) | $ | 266,726 | |||||||||||||||||||||||||||
Net income | 24,551 | 24,551 | |||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Common Stock, $0.28 per share | (4,214) | (4,214) | |||||||||||||||||||||||||||||||||||||||
Class A Common Stock, $0.26 per share | (334) | (334) | |||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | (4,997) | (4,997) | |||||||||||||||||||||||||||||||||||||||
Amortization of restricted stock | 1,836 | 1,836 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 41 | 41 | |||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2022 | $ | 30,006 | $ | 1,806 | $ | 107,510 | $ | 395,237 | $ | (2,171) | $ | (248,779) | $ | 283,609 |
(in thousands) | Common Stock | Class A Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 | $ | 29,907 | $ | 1,809 | $ | 102,572 | $ | 342,983 | $ | (2,293) | $ | (219,008) | $ | 255,970 | |||||||||||||||||||||||||||
Net income | 65,620 | 65,620 | |||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Common Stock, $0.81 per share | (12,403) | (12,403) | |||||||||||||||||||||||||||||||||||||||
Class A Common Stock, $0.75 per share | (963) | (963) | |||||||||||||||||||||||||||||||||||||||
Class A conversion | 3 | (3) | — | ||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | (29,998) | (29,998) | |||||||||||||||||||||||||||||||||||||||
Restricted stock issuances | 96 | (1,778) | (1,682) | ||||||||||||||||||||||||||||||||||||||
Amortization of restricted stock | 6,032 | 6,032 | |||||||||||||||||||||||||||||||||||||||
Directors' Compensation Plan | 684 | 227 | 911 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 122 | 122 | |||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2022 | $ | 30,006 | $ | 1,806 | $ | 107,510 | $ | 395,237 | $ | (2,171) | $ | (248,779) | $ | 283,609 |
(in thousands) | Common Stock | Class A Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | |||||||||||||||||||||
Balances at June 30, 2021 | $ | 29,903 | $ | 1,813 | $ | 99,016 | $ | 338,341 | $ | (2,462 | ) | $ | (177,199 | ) | $ | 289,412 | ||||||||||||
Net income | 24,233 | 24,233 | ||||||||||||||||||||||||||
Dividends declared: | ||||||||||||||||||||||||||||
Common Stock, $0.25 per share | (4,164 | ) | (4,164 | ) | ||||||||||||||||||||||||
Class A Common Stock, $0.23 per share | (297 | ) | (297 | ) | ||||||||||||||||||||||||
Class A conversion | 3 | (3 | ) | 0 | ||||||||||||||||||||||||
Acquisition of treasury stock | (19,493 | ) | (19,493 | ) | ||||||||||||||||||||||||
Amortization of restricted stock | 1,800 | 1,800 | ||||||||||||||||||||||||||
Other comprehensive income | 50 | 50 | ||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | 29,906 | $ | 1,810 | $ | 100,816 | $ | 358,113 | $ | (2,412 | ) | $ | (196,692 | ) | $ | 291,541 |
(in thousands) | Common Stock | Class A Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | $ | 29,903 | $ | 1,813 | $ | 99,016 | $ | 338,341 | $ | (2,462) | $ | (177,199) | $ | 289,412 | |||||||||||||||||||||||||||
Net income | 24,233 | 24,233 | |||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Common Stock, $0.25 per share | (4,164) | (4,164) | |||||||||||||||||||||||||||||||||||||||
Class A Common Stock, $0.23 per share | (297) | (297) | |||||||||||||||||||||||||||||||||||||||
Class A conversion | 3 | (3) | — | ||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | (19,493) | (19,493) | |||||||||||||||||||||||||||||||||||||||
Amortization of restricted stock | 1,800 | 1,800 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 50 | 50 | |||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | 29,906 | $ | 1,810 | $ | 100,816 | $ | 358,113 | $ | (2,412) | $ | (196,692) | $ | 291,541 | |||||||||||||||||||||||||||
(in thousands) | Common Stock | Class A Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | $ | 29,600 | $ | 1,996 | $ | 96,850 | $ | 304,626 | $ | (2,560) | $ | (177,545) | $ | 252,967 | |||||||||||||||||||||||||||
Net income | 66,497 | 66,497 | |||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Common Stock, $0.72 per share | (12,142) | (12,142) | |||||||||||||||||||||||||||||||||||||||
Class A Common Stock, $0.65 per share | (868) | (868) | |||||||||||||||||||||||||||||||||||||||
Class A conversion | 186 | (186) | — | ||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | (19,493) | (19,493) | |||||||||||||||||||||||||||||||||||||||
Restricted stock issuances | 120 | (3,014) | (2,894) | ||||||||||||||||||||||||||||||||||||||
Amortization of restricted stock | 6,456 | 6,456 | |||||||||||||||||||||||||||||||||||||||
Directors' Compensation Plan | 524 | 346 | 870 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 148 | 148 | |||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | 29,906 | $ | 1,810 | $ | 100,816 | $ | 358,113 | $ | (2,412) | $ | (196,692) | $ | 291,541 | |||||||||||||||||||||||||||
(in thousands) | Common Stock | Class A Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | |||||||||||||||||||||
Balances at December 31, 2020 | $ | 29,600 | $ | 1,996 | $ | 96,850 | $ | 304,626 | $ | (2,560 | ) | $ | (177,545 | ) | $ | 252,967 | ||||||||||||
Net income | 66,497 | 66,497 | ||||||||||||||||||||||||||
Dividends declared: | ||||||||||||||||||||||||||||
Common Stock, $0.72 per share | (12,142 | ) | (12,142 | ) | ||||||||||||||||||||||||
Class A Common Stock, $0.65 per share | (868 | ) | (868 | ) | ||||||||||||||||||||||||
Class A conversion | 186 | (186 | ) | 0 | ||||||||||||||||||||||||
Acquisition of treasury stock | (19,493 | ) | (19,493 | ) | ||||||||||||||||||||||||
Restricted stock issuances | 120 | (3,014 | ) | (2,894 | ) | |||||||||||||||||||||||
Amortization of restricted stock | 6,456 | 6,456 | ||||||||||||||||||||||||||
Directors’ Compensation Plan | 524 | 346 | 870 | |||||||||||||||||||||||||
Other comprehensive income | 148 | 148 | ||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | 29,906 | $ | 1,810 | $ | 100,816 | $ | 358,113 | $ | (2,412 | ) | $ | (196,692 | ) | $ | 291,541 |
(in thousands) | Common Stock | Class A Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | |||||||||||||||||||||
Balances at June 30, 2020 | $ | 29,538 | $ | 2,054 | $ | 94,581 | $ | 304,900 | $ | (2,027 | ) | $ | (164,668 | ) | $ | 264,378 | ||||||||||||
Net income | 18,261 | 18,261 | ||||||||||||||||||||||||||
Dividends declared: | ||||||||||||||||||||||||||||
Common Stock, $0.20 per share | (3,423 | ) | (3,423 | ) | ||||||||||||||||||||||||
Class A Common Stock, $0.19 per share | (290 | ) | (290 | ) | ||||||||||||||||||||||||
Class A conversion | 17 | (17 | ) | 0 | ||||||||||||||||||||||||
Acquisition of treasury stock | (12,899 | ) | (12,899 | ) | ||||||||||||||||||||||||
Amortization of restricted stock | 1,325 | 1,325 | ||||||||||||||||||||||||||
Directors’ Compensation Plan | (5 | ) | (5 | ) | ||||||||||||||||||||||||
Other comprehensive income | 30 | 30 | ||||||||||||||||||||||||||
Balances at September 30, 2020 | $ | 29,555 | $ | 2,037 | $ | 95,901 | $ | 319,448 | $ | (1,997 | ) | $ | (177,567 | ) | $ | 267,377 |
(in thousands) | Common Stock | Class A Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | |||||||||||||||||||||
Balances at December 31, 2019 | $ | 29,431 | $ | 2,054 | $ | 93,208 | $ | 295,999 | $ | (2,087 | ) | $ | (158,102 | ) | $ | 260,503 | ||||||||||||
Net income | 33,720 | 33,720 | ||||||||||||||||||||||||||
Dividends declared: | ||||||||||||||||||||||||||||
Common Stock, $0.55 per share | (9,475 | ) | (9,475 | ) | ||||||||||||||||||||||||
Class A Common Stock, $0.52 per share | (796 | ) | (796 | ) | ||||||||||||||||||||||||
Class A conversion | 17 | (17 | ) | 0 | ||||||||||||||||||||||||
Acquisition of treasury stock | (19,708 | ) | (19,708 | ) | ||||||||||||||||||||||||
Restricted stock issuances | 107 | (983 | ) | (876 | ) | |||||||||||||||||||||||
Amortization of restricted stock | 3,362 | 3,362 | ||||||||||||||||||||||||||
Directors’ Compensation Plan | 314 | 243 | 557 | |||||||||||||||||||||||||
Other comprehensive income | 90 | 90 | ||||||||||||||||||||||||||
Balances at September 30, 2020 | $ | 29,555 | $ | 2,037 | $ | 95,901 | $ | 319,448 | $ | (1,997 | ) | $ | (177,567 | ) | $ | 267,377 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
(In thousands) | Net Sales | % of Net Sales | Net Sales | % of Net Sales | Net Sales | % of Net Sales | Net Sales | % of Net Sales | ||||||||||||||||||||||||
Merchandise: | ||||||||||||||||||||||||||||||||
Case Goods | ||||||||||||||||||||||||||||||||
Bedroom Furniture | $ | 41,438 | 15.9 | % | $ | 29,725 | 13.7 | % | $ | 121,848 | 16.3 | % | $ | 76,638 | 15.1 | % | ||||||||||||||||
Dining Room Furniture | 29,047 | 11.2 | 22,994 | 10.6 | 84,965 | 11.4 | 54,067 | 10.7 | ||||||||||||||||||||||||
Occasional | 21,955 | 8.4 | 19,220 | 8.8 | 66,128 | 8.8 | 46,665 | 9.2 | ||||||||||||||||||||||||
92,440 | 35.5 | 71,939 | 33.1 | 272,941 | 36.5 | 177,371 | 35.0 | |||||||||||||||||||||||||
Upholstery | 109,375 | 42.0 | 95,554 | 43.9 | 305,842 | 41.0 | 213,656 | 42.1 | ||||||||||||||||||||||||
Mattresses | 23,616 | 9.1 | 21,431 | 9.9 | 68,257 | 9.1 | 50,625 | 10.0 | ||||||||||||||||||||||||
Accessories and Other (1) | 34,948 | 13.4 | 28,590 | 13.1 | 99,818 | 13.4 | 65,261 | 12.9 | ||||||||||||||||||||||||
$ | 260,378 | 100.0 | % | $ | 217,513 | 100.0 | % | $ | 746,858 | 100.0 | % | $ | 506,913 | 100.0 | % |
(In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Net Sales | % of Net Sales | Net Sales | % of Net Sales | Net Sales | % of Net Sales | Net Sales | % of Net Sales | ||||||||||||||||||||||||||||||||||||||||
Merchandise: | |||||||||||||||||||||||||||||||||||||||||||||||
Case Goods | |||||||||||||||||||||||||||||||||||||||||||||||
Bedroom Furniture | $ | 46,068 | 16.8 | % | $ | 41,438 | 15.9 | % | $ | 118,953 | 15.5 | % | $ | 121,848 | 16.3 | % | |||||||||||||||||||||||||||||||
Dining Room Furniture | 31,793 | 11.6 | 29,047 | 11.2 | 82,971 | 10.8 | 84,965 | 11.4 | |||||||||||||||||||||||||||||||||||||||
Occasional | 23,874 | 8.7 | 21,955 | 8.4 | 60,881 | 7.9 | 66,128 | 8.9 | |||||||||||||||||||||||||||||||||||||||
101,735 | 37.1 | 92,440 | 35.5 | 262,805 | 34.3 | 272,941 | 36.5 | ||||||||||||||||||||||||||||||||||||||||
Upholstery | 112,682 | 41.1 | 109,375 | 42.0 | 333,507 | 43.5 | 305,842 | 41.0 | |||||||||||||||||||||||||||||||||||||||
Mattresses | 22,646 | 8.3 | 23,616 | 9.1 | 64,389 | 8.4 | 68,257 | 9.1 | |||||||||||||||||||||||||||||||||||||||
Accessories and Other (1) | 37,432 | 13.6 | 34,947 | 13.4 | 105,957 | 13.8 | 99,818 | 13.4 | |||||||||||||||||||||||||||||||||||||||
$ | 274,495 | 100.0 | % | $ | 260,378 | 100.0 | % | $ | 766,658 | 100.0 | % | $ | 746,858 | 100.0 | % |
(1) | Includes delivery charges and product protection. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Operating lease cost | $ | 11,440 | $ | 11,596 | $ | 35,140 | $ | 33,111 | ||||||||
Variable lease cost | 1,739 | 1,627 | 4,856 | 3,825 | ||||||||||||
Total lease expense | $ | 13,179 | $ | 13,223 | $ | 39,996 | $ | 36,936 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Operating lease cost | $ | 11,517 | $ | 11,440 | $ | 35,230 | $ | 35,140 | |||||||||||||||
Variable lease cost | 1,706 | 1,739 | 5,183 | 4,856 | |||||||||||||||||||
Total lease expense | $ | 13,223 | $ | 13,179 | $ | 40,413 | $ | 39,996 |
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows from operating leases | $ | 35,428 | $ | 25,099 | ||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||||
Operating leases | $ | 24,213 | $ | 83,550 |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | 29,601 | $ | 35,428 | |||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||
Operating leases | $ | 22,231 | $ | 24,213 |
Service-Based Restricted Stock Awards | Performance-Based Restricted Stock Awards | ||||||||||||||||||||||
Shares or Units (#) | Weighted-Average Award Price ($) | Shares or Units (#) | Weighted-Average Award Price ($) | ||||||||||||||||||||
Outstanding at December 31, 2021 | 219,082 | $ | 27.10 | 328,267 | $ | 23.96 | |||||||||||||||||
Granted/Issued | 153,681 | 28.86 | 103,104 | 28.86 | |||||||||||||||||||
Awards vested or rights exercised(1) | (122,080) | 27.12 | (34,940) | 20.28 | |||||||||||||||||||
Forfeited | (3,900) | 31.86 | — | — | |||||||||||||||||||
Additional units earned due to performance | — | — | 59,249 | 31.39 | |||||||||||||||||||
Outstanding at September 30, 2022 | 246,783 | $ | 28.10 | 455,680 | $ | 26.54 | |||||||||||||||||
Restricted units expected to vest | 246,783 | $ | 28.10 | 455,680 | $ | 26.54 |
Service-Based Restricted Stock Awards | Performance-Based Restricted Stock Awards | |||||||||||||||
Shares or Units (#) | Weighted-Average Award Price ($) | Shares or Units (#) | Weighted-Average Award Price ($) | |||||||||||||
Outstanding at December 31, 2020 | 239,281 | 20.77 | 213,895 | 21.08 | ||||||||||||
Granted/Issued | 119,921 | 33.29 | 93,685 | 32.83 | ||||||||||||
Awards vested or rights exercised(1) | (130,323 | ) | 21.28 | (56,578 | ) | 22.95 | ||||||||||
Forfeited | (5,621 | ) | 24.74 | 0 | 0 | |||||||||||
Additional units earned due to performance | — | — | 77,265 | 20.42 | ||||||||||||
Outstanding at September 30, 2021 | 223,258 | 27.10 | 328,267 | 23.96 | ||||||||||||
Restricted units expected to vest | 223,258 | 27.10 | 387,512 | 25.36 |
(1) | Includes shares repurchased from employees for employee’s tax liability. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Numerator: | ||||||||||||||||
Common: | ||||||||||||||||
Distributed earnings | $ | 4,164 | $ | 3,423 | $ | 12,142 | $ | 9,475 | ||||||||
Undistributed earnings | 18,424 | 13,408 | 49,713 | 21,624 | ||||||||||||
Basic | 22,588 | 16,831 | 61,855 | 31,099 | ||||||||||||
Class A Common earnings | 1,645 | 1,430 | 4,642 | 2,621 | ||||||||||||
Diluted | $ | 24,233 | $ | 18,261 | $ | 66,497 | $ | 33,720 | ||||||||
Class A Common: | ||||||||||||||||
Distributed earnings | $ | 297 | $ | 290 | $ | 868 | $ | 796 | ||||||||
Undistributed earnings | 1,348 | 1,140 | 3,774 | 1,825 | ||||||||||||
$ | 1,645 | $ | 1,430 | $ | 4,642 | $ | 2,621 | |||||||||
Denominator: | ||||||||||||||||
Common: | ||||||||||||||||
Weighted average shares outstanding - basic | 16,794 | 17,098 | 16,862 | 17,267 | ||||||||||||
Assumed conversion of Class A Common Stock | 1,290 | 1,526 | 1,344 | 1,530 | ||||||||||||
Dilutive options, awards and common stock equivalents | 478 | 240 | 506 | 241 | ||||||||||||
Total weighted-average diluted Common Stock | 18,562 | 18,864 | 18,712 | 19,038 | ||||||||||||
Class A Common: | ||||||||||||||||
Weighted average shares outstanding | 1,290 | 1,526 | 1,344 | 1,530 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Common Stock | $ | 1.35 | $ | 0.98 | $ | 3.67 | $ | 1.80 | ||||||||
Class A Common Stock | $ | 1.28 | $ | 0.94 | $ | 3.45 | $ | 1.71 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Common Stock | $ | 1.31 | $ | 0.97 | $ | 3.55 | $ | 1.77 | ||||||||
Class A Common Stock | $ | 1.25 | $ | 0.93 | $ | 3.38 | $ | 1.70 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Common: | |||||||||||||||||||||||
Distributed earnings | $ | 4,214 | $ | 4,164 | $ | 12,403 | $ | 12,142 | |||||||||||||||
Undistributed earnings | 18,498 | 18,424 | 48,398 | 49,713 | |||||||||||||||||||
Basic | 22,712 | 22,588 | 60,801 | 61,855 | |||||||||||||||||||
Class A Common earnings | 1,839 | 1,645 | 4,819 | 4,642 | |||||||||||||||||||
Diluted | $ | 24,551 | $ | 24,233 | $ | 65,620 | $ | 66,497 | |||||||||||||||
Class A Common: | |||||||||||||||||||||||
Distributed earnings | $ | 334 | $ | 297 | $ | 963 | $ | 868 | |||||||||||||||
Undistributed earnings | 1,505 | 1,348 | 3,856 | 3,774 | |||||||||||||||||||
$ | 1,839 | $ | 1,645 | $ | 4,819 | $ | 4,642 | ||||||||||||||||
Denominator: | |||||||||||||||||||||||
Common: | |||||||||||||||||||||||
Weighted average shares outstanding - basic | 15,015 | 16,794 | 15,347 | 16,862 | |||||||||||||||||||
Assumed conversion of Class A Common Stock | 1,283 | 1,290 | 1,284 | 1,344 | |||||||||||||||||||
Dilutive options, awards and common stock equivalents | 518 | 478 | 507 | 506 | |||||||||||||||||||
Total weighted-average diluted Common Stock | 16,816 | 18,562 | 17,138 | 18,712 | |||||||||||||||||||
Class A Common: | |||||||||||||||||||||||
Weighted average shares outstanding | 1,283 | 1,290 | 1,284 | 1,344 | |||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||
Common Stock | $ | 1.51 | $ | 1.35 | $ | 3.96 | $ | 3.67 | |||||||||||||||
Class A Common Stock | $ | 1.43 | $ | 1.28 | $ | 3.75 | $ | 3.45 | |||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||
Common Stock | $ | 1.46 | $ | 1.31 | $ | 3.83 | $ | 3.55 | |||||||||||||||
Class A Common Stock | $ | 1.40 | $ | 1.25 | $ | 3.66 | $ | 3.38 |
2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Comp-Store Sales | Net Sales | Comp-Store Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period | Total Dollars | % Change | $ Change | % Change | $ Change | Total Dollars | % Change | $ Change | % Change | $ Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 | $ | 238.9 | 1.0 | % | $ | 2.5 | 0.2 | % | $ | 0.4 | $ | 236.5 | 31.8 | % | $ | 57.1 | 11.5 | % | $ | 15.4 | ||||||||||||||||||||||||||||||||||||||||||
Q2 | $ | 253.2 | 1.3 | % | $ | 3.2 | 1.1 | % | $ | 2.7 | $ | 250.0 | 127.3 | % | $ | 140.0 | 46.9 | % | $ | 48.8 | ||||||||||||||||||||||||||||||||||||||||||
Q3 | $ | 274.5 | 5.4 | % | $ | 14.1 | 6.3 | % | $ | 16.2 | $ | 260.4 | 19.7 | % | $ | 42.9 | 17.7 | % | $ | 38.4 | ||||||||||||||||||||||||||||||||||||||||||
YTD Q3 | $ | 766.7 | 2.7 | % | $ | 19.8 | 2.6 | % | $ | 19.3 | $ | 746.9 | 47.3 | % | $ | 240.0 | 22.5 | % | $ | 102.6 |
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
Net Sales | Comp-Store Sales | Net Sales | Comp-Store Sales | ||||||||||||||||||||||||||||||||||||||
Period | Total Dollars | % Change | $ Change | % Change | $ Change | Total Dollars | % Change | $ Change | % Change | $ Change | |||||||||||||||||||||||||||||||
Q1 | $ | 236.5 | 31.8 | % | $ | 57.1 | 11.5 | % | $ | 15.4 | $ | 179.4 | (4.2 | )% | $ | (7.8 | ) | 11.6 | % | $ | 13.8 | ||||||||||||||||||||
Q2 | $ | 250.0 | 127.3 | % | $ | 140.0 | 46.9 | % | $ | 48.8 | $ | 110.0 | (42.7 | )% | $ | (81.9 | ) | (15.2 | )% | $ | (18.4 | ) | |||||||||||||||||||
Q3 | $ | 260.4 | 19.7 | % | $ | 42.9 | 17.7 | % | $ | 38.4 | $ | 217.5 | 3.9 | % | $ | 8.2 | 4.0 | % | $ | 8.4 | |||||||||||||||||||||
YTD Q3 | $ | 746.9 | 47.3 | % | $ | 240.0 | 22.5 | % | $ | 102.6 | $ | 506.9 | (13.9 | )% | $ | (81.5 | ) | 0.8 | % | $ | 3.8 |
Three months ended September 30, | Nine Months ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
(In thousands) | % of Net Sales | % of Net Sales | % of Net Sales | % of Net Sales | ||||||||||||||||||||||||||||
Variable | $ | 43,708 | 16.8 | % | $ | 37,678 | 17.3 | % | $ | 126,374 | 16.9 | % | $ | 93,685 | 18.5 | % | ||||||||||||||||
Fixed and discretionary | 72,448 | 27.8 | 62,419 | 28.7 | 211,941 | 28.4 | 176,596 | 34.8 | ||||||||||||||||||||||||
$ | 116,156 | 44.6 | % | $ | 100,097 | 46.0 | % | $ | 338,315 | 45.3 | % | $ | 270,281 | 53.3 | % |
(In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
$ | % of Net Sales | $ | % of Net Sales | $ | % of Net Sales | $ | % of Net Sales | |||||||||||||||||||||||||||||||||||||||||||
Variable | $ | 50,228 | 18.3 | % | $ | 43,708 | 16.8 | % | $ | 140,566 | 18.3 | % | $ | 126,374 | 16.9 | % | ||||||||||||||||||||||||||||||||||
Fixed and discretionary | 74,306 | 27.1 | % | 72,448 | 27.8 | % | 217,250 | 28.3 | % | 211,941 | 28.4 | % | ||||||||||||||||||||||||||||||||||||||
$ | 124,534 | 45.4 | % | $ | 116,156 | 44.6 | % | $ | 357,816 | 46.6 | % | $ | 338,315 | 45.3 | % |
Location | Opening Quarter Actual or Planned | Category | ||||||
Open | ||||||||
Relocation | ||||||||
Durham, NC | Q-1-23 | Open | ||||||
(a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||
July 1 - July 31 | — | $ | — | — | $ | 4,700 | |||||||||||||||||
August 1 - August 31 | — | $ | — | — | $ | 25,004,700 | |||||||||||||||||
September 1 - September 30 | 187,488 | $ | 26.65 | 187,488 | $ | 20,007,700 | |||||||||||||||||
Total | 187,488 | 187,488 |
(a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs | |||||||||||||
July 1 – July 31 | 44,579 | $ | 36.17 | 44,579 | $ | 15,202,200 | ||||||||||
August 1 – August 31 | 412,617 | $ | 36.60 | 412,617 | $ | 25,100,700 | ||||||||||
September 1 – September 30 | 80,000 | $ | 34.74 | 80,000 | $ | 22,321,200 | ||||||||||
Total | 537,196 | 537,196 |
Exhibit Number | Description of Exhibit (Commission File No. 1-14445) | |||||||
Articles of Amendment and Restatement of the Charter of Haverty Furniture Companies, Inc. effective May 26, 2006 (Exhibit 3.1 to our Second Quarter 2006 Form 10-Q). | ||||||||
By-laws of Haverty Furniture Companies, Inc. as amended and restated effective May 8, 2018 (Exhibit 3.1 to our Current Report on | ||||||||
*31.1 | Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d‑14(a) under the Securities Exchange Act of 1934, as amended. | |||||||
*31.2 | Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d‑14(a) under the Securities Exchange Act of 1934, as amended. | |||||||
**32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350. | |||||||
101 | The following financial statements from Haverty Furniture Companies, Inc.’s Quarterly Report on Form 10-Q for the quarter ended | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
** Furnished herewith. |
HAVERTY FURNITURE COMPANIES, INC. (Registrant) | ||||||||||
Date: November 4, 2022 | /s/ Clarence H. Smith | |||||||||
Clarence H. Smith | ||||||||||
Chairman of the Board and Chief Executive Officer | ||||||||||
(principal executive officer) | ||||||||||
By: | ||||||||||
/s/ Richard B. Hare | ||||||||||
Richard B. Hare | ||||||||||
Executive Vice President and Chief Financial Officer (principal financial and accounting officer) |