HAVERTY FURNITURE COMPANIES INC

Previous wording

Statements in this Quarterly Report on Form 10-Q (the "Form 10-Q") and the schedules hereto that are not purely historical facts or that necessarily depend on future events, 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. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers, and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. All forward-looking statements are based upon currently available information and the Company's current assumptions, expectations, and projections about future events. Forward-looking statements are by nature inherently uncertain and 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 Securities and Exchange Commission. Consequently, all forward-looking statements in this report are qualified by the factors, risks and uncertainties contained therein. 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.

Current wording

Statements in this Quarterly Report on Form 10-Q (the "Form 10-Q") and the schedules hereto that are not purely historical facts or that necessarily depend on future events, 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 can generally be identified by the use of forward-looking terminology including “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would,” or similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers, and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. All forward-looking statements are based upon currently available information and the Company's current assumptions, expectations, and projections about future events. Forward-looking statements are by nature inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. These risks and uncertainties include, but are not limited to, competition from national, regional and local retailers of home furnishings; our ability to anticipate changes in consumer preferences; our ability to successfully implement our growth and other strategies; our ability to maintain and enhance our brand; importing merchandise from foreign sources; fluctuations and volatility in the cost of raw materials and components; our dependence on third-party producers to meet our requirements; our vendors' ability to meet our quality control standards or comply with changes to the legislative or regulatory framework regarding product safety; risks in our supply chain, including price, availability and quality of raw materials and components utilized in the products we sell and our ability to forecast our supply chain needs; our reliance on third-party transportation vendors for product shipments from our suppliers; the effects of labor disruptions or labor shortages; and our ability to attract and retain key employees; the rise of oil and gasoline prices; increased transportation costs; damage to one of our distribution centers; the vulnerability of our information technology infrastructure to cyber-attacks, breaches and other disruptions; changes in general domestic and international economic conditions such as inflation rates, interest rates, tax rates, unemployment rates, higher labor and healthcare costs, recessions, and changing government policies, laws and regulations; pending or unforeseen litigation; and other risks and uncertainties as may be detailed from time to time in our public announcements and Securities an…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

The following table outlines the changes in our sales and comp-store sales for the periods indicated. (Amounts and percentages may not always add to totals due to rounding.)

Current wording

The following table outlines the changes in our sales and comp-store sales for the periods indicated.

Previous wording

During the third quarter of 2024, we saw an increase in customers using our free in-home design service. Design consultants helped drive 34.5% of our total written sales for the third quarter of 2024, with an average written ticket of $7,312, up from 29.0% and an average written ticket of $6,937 for the same period in 2023. For the first nine months of 2024, our design consultants' written sales were 34.2% of our total written sales with an average written ticket of $7,194, up from 28.0% and an average written ticket of $6,800 for the same period of 2023.

Current wording

Our free in-home design service has experienced an increase in customer engagement. Design consultants helped drive 33.2% of our total written sales for the first quarter of 2025, with an average written ticket of $7,422, up from 32.4% and an average written ticket of $6,782 for the same period in 2024.

Previous wording

Our SG&A costs as a percent of sales for the third quarter of 2024 were 57.4% versus 51.1% for the same period in 2023 largely as a result of decreased sales. SG&A dollars decreased $11.8 million, or 10.5%, for the third quarter of 2024 compared to the same prior year period. The change is driven by lower costs in selling expense of $6.2 million due to lower commission-based compensation and third-party creditor costs, lower warehouse and delivery costs of $3.6 million, and a decrease of $2.9 million in administrative expenses due to lower salaries and stock compensation costs. Occupancy costs were $1.8 million higher, primarily due to an increase in rent expense. Rent expense in the prior year quarter was reduced by $1.3 million for incentives to vacate a property before the end of its lease term.

Current wording

Our SG&A costs as a percent of sales for the first quarter of 2025 were 59.0% versus 59.4% for the same period in 2024, largely due to decreased sales. SG&A dollars decreased $2.2 million, or 2.0%, for the first quarter of 2025 compared to the same prior year period. The change is driven by lower costs in selling expense of $2.0 million due to lower-commissioned based compensation and third-party creditor costs, lower warehouse and delivery costs of $1.7 million, and lower advertising and marketing costs of $1.1 million, aligning with the reduction of sales. Occupancy costs were $1.6 million higher, primarily due to costs associated with new stores. Administrative expenses increased $1.0 million due to increased salaries and stock compensation costs.

Previous wording

The variable expenses in dollars were lower in the third quarter and for the first nine months of 2024 compared to the same periods in 2023, primarily due to decreases in commission expense and third-party credit costs.

Current wording

The variable expenses in dollars were lower in the first quarter of 2025 compared to the same period in 2024, primarily due to decreases in third-party credit costs.

Previous wording

At September 30, 2024, we had $121.2 million in cash and cash equivalents, and $6.2 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 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, if needed.

Current wording

At March 31, 2025, we had $111.9 million in cash and cash equivalents, and $6.3 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 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, if needed.

Previous wording

In October 2022, we entered into the Fourth Amendment to our Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with Truist Bank. The Credit Agreement, which matures October 24, 2027, provides for a $80.0 million revolving credit facility. The borrowing base at September 30, 2024 was $121.7 million and the net availability was $80.0 million.

Current wording

In October 2022, we entered into the Fourth Amendment to our Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with Truist Bank. The Credit Agreement, which matures October 24, 2027, provides for a $80.0 million revolving credit facility. The borrowing base at March 31, 2025 was $106.8 million and the net availability was $80.0 million.

Previous wording

Net cash provided by operating activities was $42.0 million in the first nine months of 2024 compared to $79.4 million during the same period in 2023. This difference resulted primarily from a decrease in net income and changes in working capital. Working capital in 2024 was impacted by optimizing inventory levels to sales conditions, normalized delivery backlog and customer deposits, changes in operating lease assets and liabilities, and the timing of other payments and cash receipts.

Current wording

Net cash provided by operating activities was $6.2 million in the first three months of 2025 compared to $3.1 million during the same period in 2024. This difference resulted primarily from an increase in net income and changes in working capital. Working capital was primarily impacted by increased inventories in 2025 compared to a reduction in 2024, changes in operating lease assets and liabilities, and the timing of other payments and cash receipts.

Previous wording

Investing Activities. Cash used in investing activities decreased by$22.6 million in the first nine months of 2024 compared to the first nine months of 2023, due to lower capital expenditures.

Current wording

Investing Activities. Cash used in investing activities decreased by$0.2 million in the first three months of 2025 compared to the first three months of 2024, due to lower capital expenditures.

Previous wording

Financing Activities. Cash used in financing activities decreased $3.0 million in the first nine months of 2024 compared to the first nine months of 2023 due to common stock repurchases. There were no repurchases in the first nine months of 2024 compared to $3.2 million in 2023.

Current wording

Financing Activities. Cash used in financing activities increased $1.4 million in the first three months of 2025 compared to the first three months of 2024 due to common stock repurchases. In the first three months of 2025, common stock repurchases totaled $2.0 million. There were no repurchases in the first three months of 2024.