Exhibit 99.1
Havertys Reports Earnings for First Quarter 2015
Atlanta, Georgia, May 4, 2015 – HAVERTYS (NYSE: HVT and HVT.A) reports earnings per share for the first quarter ended March 31, 2015 was $0.27 unchanged for the same period of 2014.
Clarence H. Smith, chairman, president and CEO, said, "We are on track with our initiatives of increasing average ticket, strengthening our brand, and expanding our store base. Our in-home designers and store sales staff are engaging the Havertys customer by providing the level of product information and decorating assistance the customer is seeking. New product introductions in the case goods category have fully restored our selection. Our custom upholstery business continues to do well and working with our vendors we have some of the shortest lead times in retail.
The headwinds facing housing have shifted over the past months. Home prices are firming and new-home sales data, although volatile, has been trending upward. An improving job market and rising wages are positive indicators for our industry in the year ahead."
Financial Highlights
First Quarter 2015 Compared to First Quarter 2014
| · | As previously reported, total net sales increased 5.3% to $191.3 million. Comparable store sales increased 3.8% over the same period last year. |
| · | Total written sales increased 6.3% and written comparable store sales rose 4.8%. |
| · | Average written ticket was up 4.8% and sales of custom upholstery increased 11.1%. |
| · | Gross profit margins were 53.6% down 20 basis points due to lower delivery fee revenues and sales of certain close-out merchandise. |
| · | SG&A costs as a percent of sales were flat at 48.2%. Total SG&A dollars increased $4.6 million largely due to increases in selling costs of $2.4 million, occupancy expense of $1.1 million and administrative costs of $1.1 million. |
| · | Earnings before interest and income taxes were $10.4 million in 2015 compared to $10.2 million in 2014. |
| · | We opened our Coconut Creek, Florida store in January. Our retail store count at March 31, 2015 was 120 versus 119 at March 31, 2014. |
NEW RELEASE - MAY 4, 2015 Page 2
Expectations and Other
| · | Total written sales for the second quarter to date of 2015 are up approximately 3.4% over the same period last year and written comparable store sales are up approximately 1.5%. Total delivered sales for the second quarter to date of 2015 are up approximately 4.6% over the same period last year and comparable store sales are up 3.0%. |
| · | Our previous guidance on gross profit margins for the full year 2015 is unchanged at 53.3%. |
| · | The estimate for fixed and discretionary type expenses for 2015 remains $239 to $241 million versus the $231 million for these same costs in 2014. The variable type costs within SG&A for the full year of 2015 are anticipated to be approximately 17.5% to 17.7% percent of sales. |
| · | We opened a store in Rogers, Arkansas in April and should open a showroom in Waco, Texas in May, both new markets for Havertys. |
| · | We expect to increase selling square footage approximately 3.2% in 2015 based on increasing our store count by a net three locations. Total capital expenditures are estimated to be in the $32 to $35 million range in 2015 depending on the timing of spending for new projects. |
NEW RELEASE - MAY 4, 2015 Page 3
| HAVERTY FURNITURE COMPANIES, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
| (In Thousands, except per share data – Unaudited) |
| | | Three Months Ended March 31, | |
| | | 2015 | | | 2014 | |
| | | | | | | |
| Net sales | | $ | 191,331 | | | $ | 181,737 | |
| Cost of goods sold | | | 88,684 | | | | 83,875 | |
| Gross profit | | | 102,647 | | | | 97,862 | |
| Credit service charges | | | 72 | | | | 81 | |
| Gross profit and other revenue | | | 102,719 | | | | 97,943 | |
| | | | | | | | | |
| Expenses: | | | | | | | | |
| Selling, general and administrative | | | 92,303 | | | | 87,674 | |
| Provision for doubtful accounts | | | 23 | | | | 48 | |
| Other income, net | | | (27 | ) | | | (8 | ) |
| Total expenses | | | 92,299 | | | | 87,714 | |
| | | | | | | | | |
| Income before interest and income taxes | | | 10,420 | | | | 10,229 | |
| Interest expense, net | | | 492 | | | | 273 | |
| | | | | | | | | |
| Income before income taxes | | | 9,928 | | | | 9,956 | |
| Income tax expense | | | 3,809 | | | | 3,827 | |
| Net income | | $ | 6,119 | | | $ | 6,129 | |
| | | | | | | | | |
| Basic earnings per share: | | | | | | | | |
| Common Stock | | $ | 0.27 | | | $ | 0.27 | |
| Class A Common Stock | | $ | 0.26 | | | $ | 0.26 | |
| | | | | | | | | |
| Diluted earnings per share: | | | | | | | | |
| Common Stock | | $ | 0.27 | | | $ | 0.27 | |
| Class A Common Stock | | $ | 0.25 | | | $ | 0.26 | |
| | | | | | | | | |
| Cash Dividends per share: | | | | | | | | |
| Common Stock | | $ | 0.080 | | | $ | 0.080 | |
| Class A Common Stock | | $ | 0.075 | | | $ | 0.075 | |
| | | | | | | | | |
NEW RELEASE - MAY 4, 2015 Page 4
| HAVERTY FURNITURE COMPANIES, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (In Thousands – Unaudited) |
| | | March 31,
2015 | | | December 31,
2014 | | | March 31,
2014 | |
| | | (Unaudited) | | | | | | (Unaudited) | |
| ASSETS | | | | | | | | | |
| Current assets | | | | | | | | | |
| Cash and cash equivalents | | $ | 74,146 | | | $ | 65,481 | | | $ | 84,508 | |
| Investments | | | 6,250 | | | | 7,250 | | | | - | |
| Restricted cash and cash equivalents | | | 8,000 | | | | 8,017 | | | | 8,017 | |
| Accounts receivable | | | 6,393 | | | | 7,146 | | | | 7,421 | |
| Inventories | | | 107,348 | | | | 107,139 | | | | 95,964 | |
| Prepaid expenses | | | 7,271 | | | | 6,418 | | | | 6,853 | |
| Other current assets | | | 4,073 | | | | 8,010 | | | | 2,796 | |
| Total current assets | | | 213,481 | | | | 209,461 | | | | 205,559 | |
| | | | | | | | | | | | | |
| Accounts receivable, long-term | | | 695 | | | | 731 | | | | 752 | |
| Property and equipment | | | 228,952 | | | | 225,162 | | | | 187,850 | |
| Deferred income taxes | | | 17,939 | | | | 17,610 | | | | 13,203 | |
| Other assets | | | 8,559 | | | | 8,023 | | | | 14,479 | |
| Total assets | | $ | 469,626 | | | $ | 460,987 | | | $ | 421,843 | |
| | | | | | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | | |
| Current liabilities | | | | | | | | | | | | |
| Accounts payable | | $ | 23,055 | | | $ | 24,152 | | | $ | 18,082 | |
| Customer deposits | | | 29,583 | | | | 23,687 | | | | 24,745 | |
| Accrued liabilities | | | 35,632 | | | | 39,960 | | | | 32,208 | |
| Deferred income tax | | | 5,689 | | | | 5,689 | | | | - | |
| Current portion of lease obligations | | | 2,788 | | | | 2,387 | | | | 1,012 | |
| Total current liabilities | | | 96,747 | | | | 95,875 | | | | 76,047 | |
| | | | | | | | | | | | | |
| Lease obligations, less current portion | | | 48,861 | | | | 46,678 | | | | 15,916 | |
| Other liabilities | | | 26,557 | | | | 26,351 | | | | 26,270 | |
| Total liabilities | | | 172,165 | | | | 168,904 | | | | 118,233 | |
| | | | | | | | | | | | | |
| Stockholders' equity | | | 297,461 | | | | 292,083 | | | | 303,610 | |
| | | $ | 469,626 | | | $ | 460,987 | | | $ | 421,843 | |
NEW RELEASE - MAY 4, 2015 Page 5
| HAVERTY FURNITURE COMPANIES, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (In Thousands – Unaudited) |
| | | Three Months Ended
March 31, | |
| | | 2015 | | | 2014 | |
| | | | | | | |
| CASH FLOW FROM OPERATING ACTIVITIES | | | | | | |
| Net income | | $ | 6,119 | | | $ | 6,129 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 6,098 | | | | 5,380 | |
| Share-based compensation expense | | | 1,113 | | | | 926 | |
| Provision for doubtful accounts | | | 23 | | | | 48 | |
| Other | | | (6 | ) | | | 120 | |
| Changes in operating assets and liabilities: | | | | | | | | |
| Accounts receivable | | | 766 | | | | 783 | |
| Inventories | | | (209 | ) | | | (4,481 | ) |
| Customer deposits | | | 5,896 | | | | 5,737 | |
| Other assets and liabilities | | | (451 | ) | | | 1,664 | |
| Accounts payable and accrued liabilities | | | (5,785 | ) | | | (7,858 | ) |
| Net cash provided by operating activities | | | 13,564 | | | | 8,448 | |
| | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | |
| Capital expenditures | | | (6,711 | ) | | | (4,518 | ) |
| Maturities of certificates of deposit | | | 1,000 | | | | - | |
| Restricted cash and cash equivalents | | | 17 | | | | (1,000 | ) |
| Other | | | 6 | | | | 409 | |
| Net cash used in investing activities | | | (5,688 | ) | | | (5,109 | ) |
| | | | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
| Payments on lease obligations | | | (593 | ) | | | (227 | ) |
| Dividends paid | | | (1,802 | ) | | | (1,789 | ) |
| Construction allowance receipts | | | 3,286 | | | | - | |
| Other | | | (102 | ) | | | - | |
| Net cash provided by (used in) financing activities | | | 789 | | | | (2,016 | ) |
| | | | | | | | | |
| Increase in cash and cash equivalents during the period | | | 8,665 | | | | 1,323 | |
| Cash and cash equivalents at beginning of period | | | 65,481 | | | | 83,185 | |
| | | | | | | | | |
| Cash and cash equivalents at end of period | | $ | 74,146 | | | $ | 84,508 | |
NEW RELEASE - MAY 4, 2015 Page 6
About Havertys
Havertys (NYSE: HVT and HVT.A), established in 1885, is a full-service home furnishings retailer with 121 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.
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 on Tuesday, May 5, 2015 at its website, havertys.com under the investor relations section. If you can not listen live, a replay will be available on the day of the conference call at the website or via telephone at approximately 1:00 p.m. ET through Tuesday, May 12, 2015. The number to access the telephone playback is 1-888-203-1112 (access code: 8571969).
Contact:
Haverty Furniture Companies, Inc., 404-443-2900
Dennis L. Fink
EVP & CFO
Jenny Hill Parker
SVP, Finance, Secretary and Treasurer
SOURCE: Havertys
