Havertys has double-digit gains
By Furniture Today Staff -- Furniture Today, November 3, 2003
Atlanta — Buoyed by strong performances in bedding, formal dining and upholstery, Top 100 store Havertys reported double-digit sales and earnings increases in the third quarter.
The company, which operates 112 stores in 14 states, said recent business trends remain positive, and management believes business will remain strong into 2004.
"Our third quarter was a pivotal change in what we believe is a sustainable upturn in our business," said Clarence Smith, president and chief executive officer.
Sales for the third quarter rose 11.2% to $195.4 million. Net income jumped 25.2% to $7.4 million. Same-store sales rose 6.1%.
For the first nine months, sales gained 4.6% to $539.4 million, but net income declined 11.9% to $14.4 million.
In a conference call with securities analysts, Smith said strong housing sales and low interest rates should continue to help retail furniture sales, although he said credit-related promotions also are boosting the top line.
Dennis Fink, executive vice president and chief financial officer, said 48% of Havertys sales were made on credit in the third quarter. He said credit-related sales were about evenly divided between in-house programs and an outsourced program offering no interest and no payments for 12 to 18 months.
The chain is slated to open its 113th store later this month in Bowie, Md., its fourth unit in metro Washington.
| •Haverty Furniture | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 9/3020032002Change | |||
| (a) Excludes credit service charge income of $1.5 million in the 2003 quarter, $2.1 million in the 2002 quarter, $5 million in the 2003 nine months and $6.7 million in the 2002 nine months. | |||
| Sales (a) | $195,352,000 | $175,680,000 | 11.2% |
| Operating income | 10,511,000 | 5,257,000 | 99.9% |
| Net income | 7,397,000 | 5,909,000 | 25.2% |
| Earnings per share | 0.33 | 0.27 | 22.2% |
| 9 months ended 9/30 | 2003 | 2002 | Change |
| Sales (a) | $539,366,000 | $515,525,000 | 4.6% |
| Operating income | 21,526,000 | 24,704,000 | (12.9%) |
| Net income | 14,432,000 | 16,381,000 | (11.9%) |
| Earnings per share | 0.65 | 0.74 | (12.2%) |
