SEC Form 10-Q filed by Haverty Furniture Companies, Inc.
$HVT
Other Specialty Stores
Consumer Discretionary
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
|
OR
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___
|
Commission file number: 1-14445
(Exact name of registrant as specified in its charter)
|
|
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
|
(
|
||
|
(Registrant’s telephone number, including area code)
|
||
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
|
|
|
|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non‑accelerated filer, a smaller reporting company or an emerging
growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
|
Large accelerated filer
|
☐
|
|
☒
|
Non-accelerated filer
|
☐
|
||
|
Smaller reporting company
|
|
Emerging growth company
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧
The numbers of shares outstanding of the registrant’s two classes of $1 par value common stock as of October 28, 2021, were: Common Stock – 16,532,392 ; Class A Common Stock – 1,287,142 .
INDEX
|
Page No.
|
||
|
PART I.
|
||
|
September 30, 2021
(unaudited) and December 31, 2020
|
1
|
|
|
Three and Nine Months
Ended September 30, 2021 and 2020
(unaudited)
|
2
|
|
|
Nine Months Ended September 30, 2021 and 2020 (unaudited)
|
3
|
|
|
4
|
||
|
12
|
||
|
17
|
||
|
17
|
||
|
PART II.
|
||
|
18
|
||
|
18
|
||
| 18 | ||
| Item 6. Exhibits |
19 |
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
September 30,
2021
|
December 31,
2020
|
||||||
|
(Unaudited)
|
||||||||
|
Assets
|
||||||||
|
Current assets
|
||||||||
|
Cash and cash equivalents
|
$
|
|
$
|
|
||||
|
Restricted cash and cash equivalents
|
|
|
||||||
|
Inventories
|
|
|
||||||
|
Prepaid expenses
|
|
|
||||||
|
Other current assets
|
|
|
||||||
|
Total current assets
|
|
|
||||||
|
Property and equipment, net
|
|
|
||||||
|
Right-of-use lease assets
|
|
|
||||||
|
Deferred income taxes
|
|
|
||||||
|
Other assets
|
|
|
||||||
|
Total assets
|
$
|
|
$
|
|
||||
|
Liabilities and Stockholders’ Equity
|
||||||||
|
Current liabilities
|
||||||||
|
Accounts payable
|
$
|
|
$
|
|
||||
|
Customer deposits
|
|
|
||||||
|
Accrued liabilities
|
|
|
||||||
|
Current lease liabilities
|
|
|
||||||
|
Total current liabilities
|
|
|
||||||
|
Noncurrent lease liabilities
|
|
|
||||||
|
Other liabilities
|
|
|
||||||
|
Total liabilities
|
|
|
||||||
|
Stockholders’ equity
|
||||||||
|
Capital Stock, par value $
|
||||||||
|
Preferred Stock, Authorized –
|
|
|
||||||
|
Common Stock, Authorized –
|
|
|
||||||
|
Convertible Class A Common Stock, Authorized –
|
|
|
||||||
|
Additional paid-in capital
|
|
|
||||||
|
Retained earnings
|
|
|
||||||
|
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
|
Less treasury stock at cost – Common Stock (2021 –
|
(
|
)
|
(
|
)
|
||||
|
Total stockholders’ equity
|
|
|
||||||
|
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
||||
See notes to these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
(In thousands, except per share data - unaudited)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
|
Net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Cost of goods sold
|
|
|
|
|
||||||||||||
|
Gross profit
|
|
|
|
|
||||||||||||
|
Expenses:
|
||||||||||||||||
|
Selling, general and administrative
|
|
|
|
|
||||||||||||
|
Other expense (income), net
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
|
Total expenses
|
|
|
|
|
||||||||||||
|
Income before interest and income taxes
|
|
|
|
|
||||||||||||
|
Interest income, net
|
|
|
|
|
||||||||||||
|
Income before income taxes
|
|
|
|
|
||||||||||||
|
Income tax expense
|
|
|
|
|
||||||||||||
|
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Other comprehensive income
|
||||||||||||||||
|
Adjustments related to retirement plans; net of tax expense of $
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Comprehensive income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Basic earnings per share:
|
||||||||||||||||
|
Common Stock
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Class A Common Stock
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Diluted earnings per share:
|
||||||||||||||||
|
Common Stock
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Class A Common Stock
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Cash dividends per share:
|
||||||||||||||||
|
Common Stock
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Class A Common Stock
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
See notes to these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands - unaudited)
|
Nine Months Ended
September 30,
|
|||||||
|
2021
|
2020
|
|||||||
|
Cash Flows from Operating Activities:
|
||||||||
|
Net income
|
$
|
|
$
|
|
||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
|
|
||||||
|
Share-based compensation expense
|
|
|
||||||
|
Gain from sale of land, property and equipment
|
(
|
)
|
(
|
)
|
||||
|
Other
|
(
|
)
|
|
|||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Inventories
|
(
|
)
|
|
|||||
|
Customer deposits
|
|
|
||||||
|
Operating lease assets and liabilities, net
|
|
|
||||||
|
Other assets and liabilities
|
(
|
)
|
(
|
)
|
||||
|
Accounts payable and accrued liabilities
|
|
|
||||||
|
Net cash provided by operating activities
|
|
|
||||||
|
Cash Flows from Investing Activities:
|
||||||||
|
Capital expenditures
|
(
|
)
|
(
|
)
|
||||
|
Proceeds from sale of land, property and equipment
|
|
|
||||||
|
Net cash (used in) provided by investing activities
|
(
|
)
|
|
|||||
|
Cash Flows from Financing Activities:
|
||||||||
|
Proceeds from borrowings under revolving credit facility
|
|
|
||||||
|
Payments of borrowings under revolving credit facility
|
|
(
|
)
|
|||||
|
Net change in borrowings under revolving credit facility
|
|
|
||||||
|
Dividends paid
|
(
|
)
|
(
|
)
|
||||
|
Common stock repurchased
|
(
|
)
|
(
|
)
|
||||
|
Other
|
(
|
)
|
(
|
)
|
||||
|
Net cash used in financing activities
|
(
|
)
|
(
|
)
|
||||
|
Increase in cash, cash equivalents and restricted cash equivalents during the period
|
|
|
||||||
|
Cash, cash equivalents and restricted cash equivalents at beginning of period
|
|
|
||||||
|
Cash, cash equivalents and restricted cash equivalents at end of period
|
$
|
|
$
|
|
||||
See notes to these condensed consolidated financial statements.
NOTE A – Business and Basis of Presentation
Haverty Furniture Companies, Inc. (“Havertys,” “the Company,” “we,” “our,” or “us”) is a retailer of a broad line of residential furniture in the middle to
upper-middle price ranges. We operate all of our stores using the Havertys brand and do not franchise our concept. We operate within a
reportable segment. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes required by United States of
America generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The Company believes that the disclosures made are adequate to make the information not misleading. The financial statements include the accounts of the
Company and its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. We believe all adjustments, normal and recurring in nature, considered necessary for a fair presentation have been
included. We suggest that these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our latest Annual Report on Form 10-K.
The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenue and expenses. Actual results could differ from those estimates.
The Company is subject to various claims and legal proceedings covering a wide range of matters that arise in the ordinary course of its business activities. We
believe that any liability that may ultimately result from the resolution of these matters will not have a material adverse effect on our financial condition, results of operations or cash flows.
Note B – COVID-19
In December 2019, a novel strain of coronavirus, subsequently named COVID-19, emerged from China and spread worldwide. The World Health Organization declared
COVID-19 a pandemic and a national health emergency was declared by the United States beginning on March 1, 2020. In response, many states and local governments began a series of restrictions on public gatherings, retail store closures, stay at home
orders and advisories and quarantining of people who may have been exposed to the virus. In an effort to mitigate the spread of COVID-19 and protect our team members, customers, and communities, Havertys closed all of its stores and halted deliveries
in mid-March 2020, with the expectation at that time of reopening stores on April 2, 2020. Our stores remained closed during April and we reopened 103
locations on May 1, 2020 and the remaining 17 stores were reopened by June 20, 2020. We restarted our delivery operations on May 5, 2020.
The pandemic continues to disrupt several segments of the economy. Although we and many other businesses are open, some businesses and industries have only recently reopened or are
operating on a reduced scale. Our business has been very strong since reopening. Consumers not negatively impacted financially are spending more money on furniture and accessories as they spend more time at home. However, many manufacturers are
struggling to meet the increased consumer demand, resulting in product shortages and delays in a number of merchandise categories. In addition to experiencing supply chain disruptions and delays we have encountered difficulties in increasing our
distribution and delivery capacity due to staffing shortages.
The COVID-19 pandemic is complex and continues to evolve with sporadic resurgences, new shutdowns and disruptions of vendor operations, new virus variants, and the vaccine rollout.
At this point, we cannot reasonably estimate the duration and extent of the pandemic’s influence on consumers, the “nesting” economy, and our business. Accordingly, our estimates and
assumptions could change in subsequent interim reports, and it is reasonably possible that such changes could be significant (although the potential effects cannot be estimated at this time).
4
NOTE C – Stockholders’ Equity
The following outlines the changes in each caption of stockholders’ equity for the current and comparative periods and the dividends per share for each class of
shares.
For the three months ended September 30, 2021:
|
(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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||
|
Net income
|
|
|
||||||||||||||||||||||||||
|
Dividends declared:
|
||||||||||||||||||||||||||||
|
Common Stock, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
|
Class A Common Stock, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
|
Class A conversion
|
|
(
|
)
|
|
||||||||||||||||||||||||
|
Acquisition of treasury stock
|
( |
) | ( |
) | ||||||||||||||||||||||||
|
Amortization of restricted stock
|
|
|
||||||||||||||||||||||||||
|
Other comprehensive income
|
|
|
||||||||||||||||||||||||||
|
Balances at September 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||
For the nine months ended September 30, 2021:
|
(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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||
|
Net income
|
|
|
||||||||||||||||||||||||||
|
Dividends declared:
|
||||||||||||||||||||||||||||
|
Common Stock, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
|
Class A Common Stock, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
|
Class A conversion
|
|
(
|
)
|
|
||||||||||||||||||||||||
|
Acquisition of treasury stock
|
( |
) | ( |
) | ||||||||||||||||||||||||
|
Restricted stock issuances
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||||||
|
Amortization of restricted stock
|
|
|
||||||||||||||||||||||||||
|
Directors’ Compensation Plan
|
|
|
|
|||||||||||||||||||||||||
|
Other comprehensive income
|
|
|
||||||||||||||||||||||||||
|
Balances at September 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||
5
For the three months ended September 30, 2020:
|
(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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||
|
Net income
|
|
|
||||||||||||||||||||||||||
|
Dividends declared:
|
||||||||||||||||||||||||||||
|
Common Stock, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
|
Class A Common Stock, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
|
Class A conversion
|
|
( |
) |
|
||||||||||||||||||||||||
|
Acquisition of treasury stock
|
( |
) | ( |
) | ||||||||||||||||||||||||
|
Amortization of restricted stock
|
|
|
||||||||||||||||||||||||||
|
Directors’ Compensation Plan
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
|
Other comprehensive income
|
|
|
||||||||||||||||||||||||||
|
Balances at September 30, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||
For the nine months ended September 30, 2020:
|
(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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||
|
Net income
|
|
|
||||||||||||||||||||||||||
|
Dividends declared:
|
||||||||||||||||||||||||||||
|
Common Stock, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
|
Class A Common Stock, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
|
Class A conversion
|
( |
) | ||||||||||||||||||||||||||
|
Acquisition of treasury stock
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
|
Restricted stock issuances
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
|
Amortization of restricted stock
|
|
|
||||||||||||||||||||||||||
|
Directors’ Compensation Plan
|
|
|
|
|||||||||||||||||||||||||
|
Other comprehensive income
|
|
|
||||||||||||||||||||||||||
|
Balances at September 30, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||
6
NOTE D – Interim LIFO Calculations
We calculate the LIFO index annually. Accordingly, interim LIFO calculations must necessarily be based on management’s estimates of inventory levels and
inflation rates. Since these estimates may be affected by factors beyond management’s control, interim results are subject to change based upon the final year-end LIFO inventory valuations.
NOTE E – Fair Value of Financial Instruments
The fair values of our cash and cash equivalents, restricted cash and cash equivalents, accounts
receivable, accounts payable and customer deposits approximate their carrying values due to their short-term nature. The assets related to our self-directed, non-qualified deferred compensation plans for certain executives and employees are valued
using quoted market prices multiplied by the number of shares held, a Level 1 valuation technique. The assets related to our deferred compensation plans totaled approximately $9.2 million at September 30, 2021 and $7.9 million at December 31, 2020 and are included in other assets. Amounts for the related liabilities are
included in other liabilities and totaled approximately $9.2 million at September
30, 2021 and $8.1 million at December 31, 2020.
NOTE F – Credit Agreement
On May 15, 2020 we entered into the Third Amendment to Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with a bank to permit certain
sale-leaseback transactions as described in Note H. Our first borrowings under the facility, since its origination in 2008, were in March 2020.
The Credit Agreement is a $60.0 million revolving
credit facility secured by our inventory, accounts receivable, cash, and certain other personal property and matures on September 27, 2024 .
Availability fluctuates based on a borrowing base calculation reduced by outstanding letters of credit. Amounts available to borrow are based on the lesser of the borrowing base or the $60.0 million-line amount. The credit facility contains covenants that, among other things, limit our ability to incur certain types of debt or liens, enter into mergers and
consolidations or use proceeds of borrowing for other than permitted uses. The covenants also limit our ability to pay dividends if unused availability is less than $12.5 million.
We borrowed $43.8 three-month
Euro dollar LIBOR rate plus 1.25 % and on a weighted average basis was approximately 2.37 %. Total interest paid under the Credit Agreement was $0.4
million for the nine months ended September 30, 2020.
The borrowing base was $15.7 million at September
30, 2021, there were no outstanding letters of credit, and the net availability was $15.7 million.
Note G – Revenues
We recognize revenue from merchandise sales and related service fees, net of expected returns and sales tax, at the time the merchandise is delivered to the
customer. We record customer deposits when payments are received in advance of the delivery of merchandise, which totaled $120.1 million
and $86.2 million at September 30, 2021 and December 31, 2020, respectively. Of the customer deposit liabilities at December 31, 2020,
approximately $0.5 million has not been recognized through net sales in the nine months ended September 30, 2021.
7
The following table presents our revenues disaggregated by each major product category and service (dollars in thousands, amounts and percentages may not always
add due to rounding):
|
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
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||||||
|
Dining Room Furniture
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Occasional
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Upholstery
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Mattresses
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Accessories and Other (1)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
|||||||||||||||||
| (1) |
|
NOTE H – Leases
We have operating leases for retail stores, offices, warehouses, and certain equipment. Our leases have remaining lease terms of 1 year to 14 years, some of which include
options to extend the leases for up to 20 years. We determine if an arrangement is or contains a lease at lease inception. Our leases do
not have any residual value guarantees or any restrictions or covenants imposed by lessors. We have lease agreements for real estate with lease and non-lease components, which are accounted for separately.
Certain of our lease agreements for retail stores include variable lease payments, generally based on sales volume. The variable portion of payments are not
included in the initial measurement of the right-of-use asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. Certain of our equipment lease agreements include variable lease
costs, generally based on usage of the underlying asset (mileage, fuel, etc.). The variable portion of payments are not included in the initial measurement of the right-of-use asset or lease liability due to uncertainty of the payment amount and are
recorded in the period incurred.
As of September 30, 2021, we had entered into one
lease for an additional retail location which had not yet commenced and was under construction.
8
Lease expense is charged to selling, general and administrative expenses. Components of lease expense were as follows (in thousands):
|
Three Months Ended September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2021
|
2020
|
2021
|
2020
|
|||||||||||||
|
Operating lease cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Variable lease cost
|
|
|
|
|
||||||||||||
|
Total lease expense
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
In June 2021, we renewed the lease covering ten
retail locations. This increased our right-of-use assets approximately $17.6 million and lease liability $20.6 million, and we recorded $3.0 million
in tenant incentives. In August 2021, we purchased a distribution center which was part of the sale and
leaseback transaction which occurred in May 2020 and which is described below. We also purchased a retail location at the end of its lease term. These purchases decreased our right of use assets and lease liabilities approximately $5.3
Supplemental cash flow information related to leases is as follows (in thousands):
|
Nine Months Ended
September 30,
|
||||||||
|
2021
|
2020
|
|||||||
|
Cash paid for amounts included in the measurement of lease liabilities:
|
||||||||
|
Operating cash flows from operating leases
|
$
|
|
$
|
|
||||
|
Right-of-use assets obtained in exchange for lease obligations:
|
||||||||
|
Operating leases
|
$
|
|
$
|
|
||||
Sale and Leaseback Transaction
On May 18, 2020, we completed a sale and leaseback transaction of three
of our distribution facilities. The total purchase price for the three properties, excluding costs and taxes, was $70.0 million and the net book value was $37.9
million. We recorded a gain of $31.6 million in May 2020 which is included in other income.
The three properties were leased back to us
under 15 -year operating lease agreements with renewal options.
NOTE I – Income Taxes
Our effective tax rate for the nine months ended September 30, 2021 and 2020 was 23.1 % and 25.8 %, respectively. The primary difference in the effective rate and
the statutory rate was due to state income taxes and the tax impact from vested stock awards.
9
NOTE J – Stock Based Compensation Plan
As more fully discussed in Note 12 of the notes to the consolidated financial statements in our 2020 Annual Report on Form 10-K, we have awards outstanding for
Common Stock under stock-based employee compensation plans.
Our shareholders approved a new
stock-based compensation plan, the 2021 Long-Term Incentive Plan (the “2021 LTIP Plan”) and the 1,500,000 shares reserved for issuance
under the 2021 LTIP Plan were registered with the SEC in August 2021. The 2021 LTIP Plan is substantially the same as our 2014 Long-Term Incentive Plan (the “2014 LTIP Plan”). No new grants may be awarded under the 2014 LTIP Plan.
The following table summarizes our award activity during the nine months ended September 30, 2021:
|
Service-Based
Restricted Stock Awards
|
Performance-Based
Restricted Stock Awards
|
|||||||||||||||
|
Shares or Units (#)
|
Weighted-Average
Award Price ($)
|
Shares or Units (#)
|
Weighted-Average
Award Price ($)
|
|||||||||||||
|
Outstanding at December 31, 2020
|
|
|
|
|
||||||||||||
|
Granted/Issued
|
|
|
|
|
||||||||||||
|
Awards vested or rights exercised(1)
|
(
|
)
|
|
(
|
)
|
|
||||||||||
|
Forfeited
|
(
|
)
|
|
|
|
|||||||||||
|
Additional units earned due to performance
|
—
|
—
|
|
|
||||||||||||
|
Outstanding at September 30, 2021
|
|
|
|
|
||||||||||||
|
Restricted units expected to vest
|
|
|
|
|
||||||||||||
| (1) |
|
The total fair value of service-based restricted stock awards that vested during the nine months ended
September 30, 2021 was $6.1 million. The aggregate intrinsic value of outstanding service-based restricted stock awards was $7.5 million at September 30, 2021. The restrictions on the service-based awards generally lapse or vest annually, primarily over four-year and three-year periods.
The total fair value of performance-based restricted stock awards that vested during the nine months ended September 30, 2021 was $2.0 million. The aggregate intrinsic value of outstanding performance awards at September 30, 2021 expected to vest was $13.1 million. The performance awards are based on one-year
performance periods but cliff vest in approximately three years from grant date.
The compensation for all awards is charged to selling, general and administrative expense over the respective grants’ vesting periods, primarily on a straight-line
basis. The amount charged was approximately $6.5 million for the nine months ended September 30, 2021 and $3.4 million for the same period in 2020. Forfeitures are recognized as they occur. As of September 30, 2021, the total compensation cost related to
unvested equity awards was approximately $8.6 million and is expected to be recognized over a weighted-average period of two years .
10
NOTE K – Earnings Per Share
We report our earnings per share using the two-class method. The income per share for each class of common stock is calculated assuming 100 % of our earnings are distributed as dividends to each class of common stock based on their contractual rights.
The Common Stock of the Company has a preferential dividend rate of at least 105 % of the dividend paid on the Class A Common Stock. The Class A Common Stock, which has ten
votes per share as opposed to one vote per share for the Common Stock (on all matters other than the election of directors), may be
converted at any time on a one-for-one basis into Common Stock at the option of the holder of the Class A Common Stock.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2021
|
2020
|
2021
|
2020
|
|||||||||||||
|
Numerator:
|
||||||||||||||||
|
Common:
|
||||||||||||||||
|
Distributed earnings
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Undistributed earnings
|
|
|
|
|
||||||||||||
|
Basic
|
|
|
|
|
||||||||||||
|
Class A Common earnings
|
|
|
|
|
||||||||||||
|
Diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Class A Common:
|
||||||||||||||||
|
Distributed earnings
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Undistributed earnings
|
|
|
|
|
||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
|
Denominator:
|
||||||||||||||||
|
Common:
|
||||||||||||||||
|
Weighted average shares outstanding - basic
|
|
|
|
|
||||||||||||
|
Assumed conversion of Class A Common Stock
|
|
|
|
|
||||||||||||
|
Dilutive options, awards and common stock equivalents
|
|
|
|
|
||||||||||||
|
Total weighted-average diluted Common Stock
|
|
|
|
|
||||||||||||
|
Class A Common:
|
||||||||||||||||
|
Weighted average shares outstanding
|
|
|
|
|
||||||||||||
|
Basic earnings per share:
|
||||||||||||||||
|
Common Stock
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Class A Common Stock
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Diluted earnings per share:
|
||||||||||||||||
|
Common Stock
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Class A Common Stock
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and accompanying notes
contained herein and with the audited consolidated financial statements, accompanying notes, related information and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for
the year ended December 31, 2020 (the “Form 10-K”).
Forward-Looking Statements
Statements in this Form 10-Q that are not historical facts, including statements about our estimates, expectations, beliefs,
intentions, projections or strategies for the future, may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results
to differ materially from historical experience or our present expectations. Known material risk factors applicable to us that could cause our actual results to differ from these forward-looking statements are described in “Item 1A. Risk Factors”
of our Form 10-K and in the subsequent reports we file with the SEC. All forward‑looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or
circumstances that may arise after the date of this report except as required by law.
Impact of COVID-19 on Our Business
The COVID-19 pandemic has resulted in significant economic disruption and impacted
our business. We closed our stores and ceased delivery operations in the second half of March 2020. Affected team members were paid during this period and most corporate personnel transitioned to working
remotely. On April 1, 2020, we extended our store closure for another 30 days and furloughed 3,033 team members or approximately 87% of our workforce. Given the dramatic shock to the economy caused by the pandemic and uncertainty of the ongoing
impact, we made a permanent reduction in our workforce of approximately 1,200 team members effective April 30, 2020 and extended the furlough of approximately 730 team members until June 1, 2020. We reopened 103 of our stores on May 1, 2020 and the
remaining 17 were opened by June 20, 2020 and deliveries restarted on May 5, 2020.
We took several steps to strengthen our financial position and maintain financial flexibility by reviewing operating expenses, evaluating merchandise purchases, reducing
capital expenditures, temporarily borrowing $43.8 million on our credit facility (which was repaid within 96 days), and completing a $70.0 million sale-leaseback transaction in May 2020.
Our business has been very strong since reopening. Consumers not negatively impacted financially are spending more money on furniture and accessories as they spend more
time at home. Demand is outpacing product availability in certain categories. Manufacturers are challenged to ensure safe work environments and have encountered some raw material shortages and transportation capacity issues, resulting in product
shortages and delays in a number of product categories. We are continuing to assess our staffing needs and have encountered difficulties in increasing our distribution and delivery capacity due to labor shortages in some of our markets.
The COVID-19 pandemic is complex and continues to evolve with sporadic resurgences, new shutdowns and disruptions of vendor operations, new virus variants, and the
vaccine rollout. At this point, we cannot reasonably estimate the duration of the pandemic’s influence on consumers, the “nesting” economy, and our business.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Net Sales
Our sales are generated by customer purchases of home furnishings. Revenue is recognized upon delivery to the customer. Comparable-store or “comp-store” sales is a
measure which indicates the performance of our existing stores and website by comparing the growth in sales in store and online for a particular month over the corresponding month in the prior year. Stores are considered non-comparable if they were
not open during the corresponding month in the prior year or if the selling square footage has been changed significantly. Stores closed due to COVID-19 were excluded from comp-store sales. The method we use to compute comp-store sales may not be the
same method used by other retailers. We record our sales when the merchandise is delivered to the customer. We also track “written sales” and “written comp-store sales” which represent customer orders prior to delivery. The lag time between customers
placing orders and delivery has grown in 2021 due to demand outpacing merchandise supply. As a retailer, comp-store sales and written comp-store sales are an indicator of relative customer spending and store performance. Comp-store sales, total
written sales and written comp-store sales are intended only as supplemental information and are not substitutes for net sales presented in accordance with US GAAP.
The following outlines our sales and comp-store sales increases and decreases for the periods indicated:
|
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
|
||||||||||||||||||||
Although we closed our stores and paused our operations mid-March of last year, our business has been strong since reopening in May 2020. Our stores are operating with a
smaller staff and are open fewer hours. Our delivery capacity is improving but remains slightly behind our prior year pre‑pandemic level due to labor shortages and supply chain disruptions. Many manufacturers continue to be challenged by raw material
shortages, transportation logistics, labor shortages, and lingering health and safety issues. Many of the manufacturers in Vietnam and Indonesia that produce our products paused their operations in July due to a resurgence of COVID‑19. Fortunately,
most began reopening in mid-October and are operating at various levels of capacity. However, these shutdowns may impact our merchandise available for delivery in future quarters.
The above chart outlines our sales for the quarters and year to date. Our stores were closed and we did not make any deliveries in April 2020. Our written sales for the
quarter ended September 30, 2021 were up 2.0% compared to the same period in 2020 which was up 22.8% over 2019.
Ours sales by merchandise category are impacted by product availability. Long production lead times for our custom upholstery orders, which were four to six weeks
pre‑pandemic and are currently averaging 16 weeks, have negatively impacted our business in this category. Consumers’ desire for faster fulfillment has overtaken their “pandemic patience” and are shifting to purchases of available merchandise. Custom
upholstery orders were 28.0% of total written upholstery sales for the pre-pandemic first quarter of 2020 and a high of 29.8% in the third quarter of 2020 but have steadily fallen to 20.0% in the third quarter of 2021.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Gross Profit
Gross profit for the third quarter of 2021 was 56.8%, up 60 basis points compared to the prior year period of 56.2%. We have judiciously adjusted our pricing in response
to product price increases and higher inbound freight costs. Gross profit for the first nine months of 2021 was 56.8%, up 130 basis points compared to 55.5% for the same period of 2020. Our focus on retail pricing and our sales mix have offset the
negative impact to gross profit from increases in our LIFO reserve.
We estimate gross profit margins for the full year of 2021 will be 56.5% to 56.8%.
Substantially all of our occupancy and home delivery costs are included in selling, general and administrative expenses (“SG&A”) as are a portion of our warehousing
expenses. Accordingly, our gross profit may not be comparable to those entities that include these costs in cost of goods sold.
Selling, General and Administrative Expenses
Our SG&A costs as a percent of sales for the third quarter of 2021 were 44.6% versus 46.0% for the same period in 2020. This change reflects the leveraging of costs
on increased sales and the impact of the operational changes implemented in 2020 under our business continuity plan. SG&A dollars increased $16.1 million for the third quarter of 2021 and increased $68.0 million for the nine months ended
September 30, 2021 compared to the same prior year periods.
During April 2020, virtually all team members in our store and distribution operations were furloughed and warehouse and corporate office personnel were furloughed to a
minimum level for necessary operations. We covered the health benefits premiums for those furloughed which totaled approximately $2.1 million. Salaries and wages associated with the furloughed team members was approximately $9.9 million. We reduced
our workforce by approximately 35% effective April 30, 2020 and paid severance costs of approximately $1.7 million.
We classify our SG&A expenses as either variable or fixed and discretionary. Our variable expenses include the costs in the selling and delivery categories and
certain warehouse expenses as these amounts will generally move in tandem with our level of sales. The remaining categories and expenses for occupancy, advertising, and administrative costs are classified as fixed and discretionary because these
costs do not fluctuate with sales.
The following table outlines our SG&A expenses by classification:
|
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
|
%
|
||||||||||||||||
The variable expenses in dollars were higher in the third quarter and first nine months of 2021 compared to the same periods in 2020 due to the increase in sales.
The variable expenses for the three months ended September 30, 2021 as a percent of sales compared to the prior year period reflect additional leveraging of certain
selling and delivery expenses. The variable expenses for the nine months ended September 30, 2020 include payment of severance costs and health benefits for furloughed team members.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Fixed and discretionary expenses were impacted in the third quarter of 2021 primarily by increases in general and administrative expense for compensation, benefits, and
related payroll and labor costs of $3.8 million, warehouse expense of $2.8 million, and marketing spend of $1.7 million, compared to the same period of 2020.
Our variable type expenses within SG&A for the full year of 2021 are anticipated to be 17.0% to 17.3%. Fixed and discretionary expenses are expected to be
approximately $278.0 to $281.0 million for the full year of 2021.
Liquidity and Capital Resources
Cash and Cash Equivalents at End of Year
At September 30, 2021, we had $225.7 million in cash and cash equivalents, and $6.7 million in restricted cash equivalents. We believe that our current cash position,
cash flow generated from operations, funds available from our credit agreement, and access to the long-term debt capital markets should be sufficient for our operating requirements and to enable us to fund our capital expenditures, dividend payments,
and lease obligations through the next several years. In addition, we believe we have the ability to obtain alternative sources of financing. We expect capital expenditures of approximately $37.0 million for the full year of 2021.
Long-Term Debt
In May 2020, we entered into the Third Amendment to our Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with a bank. The Credit
Agreement, which matures September 27, 2024, provides for a $60.0 million revolving credit facility. Amounts available to borrow fluctuate and availability at September 30, 2021 was $15.7 million and we had no amounts outstanding.
Leases
We use operating leases to fund a portion of our real estate, including our
stores, distribution centers, and store support space.
Share Repurchases
In August 2021, our Board of Directors authorized an additional $25.0 million for
our share repurchase program. During the three months ended September 30, 2021 we purchased 537,196 shares of common stock for approximately $19.5 million under previous and current authorizations. There
is approximately $22.3 million at September 30, 2021 that may yet be used for purchases under the current authorization.
Cash Flows Summary
Operating Activities. Cash flow generated from operations provides us with a significant source of liquidity. Our operating cash flows result primarily from cash received from our customers, offset by cash payments we make for
products and services, employee compensation, operations, and occupancy costs.
Cash provided by or used in operating activities is also subject to changes in working capital. Working capital at any specific point in time is
subject to many variables, including seasonality, inventory selection, the timing of cash receipts and payments, and vendor payment terms.
Net cash provided by operating activities was approximately $89.0 million in the first nine months of 2021 driven primarily by net income of $66.5
million and non-cash adjustments of $17.0 million, consisting of depreciation and amortization and stock-based compensation, and by changes in working capital inflows. The primary working capital inflows were from customer deposits of approximately
$34.0 million partially offset by outflows for inventory of $29.1 million.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Net cash provided by operating activities in the first nine months of 2020 was $99.8 million driven primarily by changes in working capital. For
calculation of cash provided by operating activities the gain from sale of land, property, and equipment of $34.2 million is excluded, partially offsetting net income of $33.7 million and non‑cash adjustments of $18.6 million. The primary working
capital inflows were from increases in customer deposits of $58.3 million and accounts payable and accrued liabilities of $13.4 million and a decrease in inventories of $13.9 million.
Investing Activities. Cash used in investing activities was approximately $28.0 million in the first nine months of 2021 compared to cash provided by investing activities of $67.2 million during the first nine months of 2020.
The difference primarily is from $74.4 million of proceeds from sale of land, property, and equipment in 2020.
Financing Activities. Cash used in financing activities of $35.4 million in the first nine months of 2021 primarily
reflected $19.5 million of share repurchases and $13.0 million of cash dividends paid.
Cash used in financing activities of $30.9 million in the first nine months of 2020 primarily reflected $19.7 million of share repurchases and
$10.3 million of cash dividends paid.
Store Plans and Capital Expenditures
|
Location
|
Opening Quarter
Actual or Planned
|
Category
|
|
Myrtle Beach, SC
|
Q-1-21
|
Open – New market
|
|
The Villages, FL
|
Q-3-21
|
Open
|
|
Dallas, TX
|
Q-3-21
|
Closure
|
|
Austin, TX
|
Q-1-22
|
Open
|
Net selling space in 2021 is expected to be flat compared to 2020.
We purchased our Virginia home delivery center which was part of our May 2020 sale leaseback and acquired a retail location at the end of its lease
term during the third quarter of 2021. Our capital expenditures also include amounts for information technology for operations and website enhancements. Total capital expenditures are estimated to be approximately $37.0 million in 2021 depending on
the timing of spending for new projects.
Critical Accounting Estimates
Critical accounting estimates are those that we believe are both significant and that require us to make difficult, subjective or complex judgments,
often because we need to estimate the effect of inherently uncertain matters. We base our estimates and judgments on historical experiences and various other factors that we believe to be appropriate under the circumstances. Actual results may differ
from these estimates, and we might obtain different estimates if we used different assumptions or conditions. We reviewed our accounting estimates, and none were deemed to be considered critical for the accounting periods presented in our Form 10-K.
We had no significant changes in those accounting estimates since our last annual report.
For quantitative and qualitative disclosures about market risk, see Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” of our Form 10-K.
Our exposure to market risk has not changed materially since December 31, 2020.
As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of our management, including the Chief
Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, our management, including the CEO and CFO, concluded that the
Company’s disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance that information required to be disclosed in the reports the Company files or submits under the Securities
Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including
the CEO and CFO, as appropriate, to allow timely decisions regarding disclosure.
There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange
Act Rule 13a-15 that occurred during the Company’s fiscal quarter ended September 30, 2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. As a result of the
COVID-19 pandemic, some team members have shifted to a rotating work from home and office environment. We have reviewed our financial reporting process to provide reasonable assurance that we could report our financial results accurately and timely,
and we will continue to evaluate the impact of any related changes to our internal control over financial reporting.
Information regarding legal proceedings is described under the subheading “Business and Basis of Presentation” in Note A of the Notes to the Condensed Consolidated
Financial Statements set forth in this Form 10-Q.
“Item 1A. Risk Factors” in our Form 10-K includes a discussion of our known material risk factors. There have been no material changes from the risk factors
described in our Form 10-K.
The board of directors has authorized management, at its discretion, to purchase and retire limited amounts of our common stock and Class A common stock. A program was
initially approved by the board on November 3, 1986. On August 6, 2021, the board approved an additional repurchase amount of $25.0 million to bring the total available share repurchase authorization at such time to approximately $33.1 million. The
stock repurchase program has no expiration date but may be terminated by our board at any time. The balance of the current authorization for purchases was approximately $22.3 million at September 30, 2021.
The following table presents information with respect to our repurchase of Havertys’ common stock during the third quarter of 2021:
|
(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
|
||||||||||||||
(a) Exhibits
The exhibits listed below are filed with or incorporated by reference into this report (those filed with this report are denoted by an asterisk). Unless otherwise
indicated, the exhibit number of documents incorporated by reference corresponds to the exhibit number in the referenced documents.
|
Exhibit Number
|
Description of Exhibit (Commission File No. 1-14445)
|
|
|
3.1
|
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).
|
|
|
3.2
|
By-laws of Haverty Furniture Companies,
Inc. as amended and restated effective May 8, 2018 (Exhibit 3.1 to our Current Report on form 8-K dated May 10, 2018).
|
|
|
*10.1
|
2021 Long-Term Incentive Plan, effective as of May 10, 2021.
|
|
|
*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 September 30, 2021, formatted in
inline XBRL, include: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Statements of Cash Flows and (iv) the Notes to Condensed Consolidated Financial
Statements.
|
|
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
|
| * |
Filed herewith.
|
| ** |
Furnished herewith.
|
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly
authorized.
|
HAVERTY FURNITURE COMPANIES, INC.
(Registrant)
|
||||
|
Date:
|
November 2, 2021
|
By:
|
/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)
|
20