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Havertys loses $10.1M as 4Q sales decline 21.3%

By Larry Thomas -- Furniture Today, February 23, 2009

Atlanta — Atlanta— Top 100 retailer Havertys reported a fourth-quarter net loss of $10.1 million as sales tumbled 21.4%.

The company also recorded a full year net loss of $12.85 million — its first annual loss in more than 65 years.

"The difficult economic environment in 2008 and continuation of the slump in residential housing have been bigger challenges to our top line sales than we could overcome with better merchandising, cost cutting and efficiency improvements," said Clarence Smith, president and CEO.

The fourth quarter loss included a non-cash charge of $8.7 million to reduce the value of its deferred tax assets.

Sales for the fourth quarter totaled $161.8 million, down from $205.8 million in the fourth quarter of 2007. Same-store sales fell 22.6% in the quarter.

The most recent quarterly loss, which equals 48 cents per share, compares with a profit of $1.64 million or 7 cents per share in the fourth quarter of 2007.

For the full year, sales totaled $691.1 million, down 11.9% from $784.6 million in 2007. Last year's net loss, which equals 61 cents per share, compares with a profit of $1.76 million or 8 cents per share in 2007.

Smith said weak demand is continuing into early 2009, noting that total written business is down about 13% year-to-date.

"These are very difficult times requiring hard choices concerning cost-cutting and cash conservation, which we acknowledge affect our associates and shareholders," Smith said.

Haverty Furniture
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.

(a) Includes non-cash tax valuation allowance of $8.7 million in the 2008 quarter and year.
Quarter ended 12/31	2008	2007	Change
Sales	$161,836,000	$205,770,000	(21.4%)
Operating income	(2,017,000)	1,421,000	—
Net income (a)	(10,061,000)	1,636,000	—
Earnings per share	(0.48)	0.07	—
Year ended 12/31	2008	2007	Change
Sales	$691,079,000	$784,613,000	(11.9%)
Operating income	(6,991,000)	(1,355,000)	—
Net income (a)	(12,853,000)	1,758,000	—
Earnings per share	(0.61)	0.08	—

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Havertys posts $10.1 million quarterly loss

Feb 19, 2009

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