Haverty Furniture Companies Inc. (HVT, Financial) filed Quarterly Report for the period ended 2009-06-30.
Haverty Furniture Companies Inc. is a full-service home furnishings retailer. The company operates showrooms in contiguous southern and central states. Havertys provides its customers with a wide selection of furniture and accessories primarily in the middle to upper-middle price ranges. As an added convenience to its customers the company offers financing through a revolving charge credit plan. Haverty Furniture Companies Inc. has a market cap of $232.8 million; its shares were traded at around $10.91 with and P/S ratio of 0.3.
Our cash flows provided by operating activities totaled $13.8 million in the first six months of 2009 compared to $9.8 million provided by operations for the same period of 2008. This increase was primarily the result of working capital changes, which offset the larger net loss of $13.8 million in 2009 compared to the net loss of $1.3 million in 2008. For additional information about the changes in our assets and liabilities, refer to our Balance Sheet Changes discussion.
Our cash flows provided by investing activities totaled $5.4 million in the first six months of 2009 versus a use of $4.7 million in the first six months of 2008. This increase is primarily due to proceeds of $6.6 million from a sale-leaseback transaction and a reduction of $3.9 million in capital expenditures.
Our cash flows used in financing activities totaled $0.6 million in the first six months of 2009 compared to $3.4 million for the same period of 2008. This decrease is primarily due to a $5.4 million decrease in net borrowings on our bank revolver offset by $4.0 million less in payments on long-term debt and lease obligations, $1.8 million less in treasury stock purchases and $2.8 million less in dividend payments.
We closed our store in Hattiesburg, Mississippi and exited that market in the first quarter of 2009. Our plans to improve our position by moving from two older stores to one new location in the Little Rock, Arkansas market were completed in the second quarter. Our planned expenditures for 2009 are $4.2 million of which $2.7 million is for store improvements and $1.4 million for information technology.
Our $60.0 million revolving credit facility (the Credit Agreement) is with two banks and terminates in December 2011. The Credit Agreement is secured by inventory, accounts receivable and cash, and should provide flexibility during this difficult economic cycle. The borrowing base at June 30, 2009 was $57.1 million. Amounts available are reduced by $10.0 million since a fixed charge coverage ratio test is not met for the immediately preceding twelve month period and also reduced $7.6 million for outstanding letters of credit at June 30, 2009, resulting in a net availability of $39.5 million. There were no borrowed amounts outstanding under the Credit Agreement at June 30, 2009.
Read the The complete ReportHVT is in the portfolios of Third Avenue Management.
Haverty Furniture Companies Inc. is a full-service home furnishings retailer. The company operates showrooms in contiguous southern and central states. Havertys provides its customers with a wide selection of furniture and accessories primarily in the middle to upper-middle price ranges. As an added convenience to its customers the company offers financing through a revolving charge credit plan. Haverty Furniture Companies Inc. has a market cap of $232.8 million; its shares were traded at around $10.91 with and P/S ratio of 0.3.
Highlight of Business Operations:
During the first six months of 2009, our principal sources of cash were $13.8 million derived from operations and $6.6 million from a sale-leaseback transaction for one of our stores.Our cash flows provided by operating activities totaled $13.8 million in the first six months of 2009 compared to $9.8 million provided by operations for the same period of 2008. This increase was primarily the result of working capital changes, which offset the larger net loss of $13.8 million in 2009 compared to the net loss of $1.3 million in 2008. For additional information about the changes in our assets and liabilities, refer to our Balance Sheet Changes discussion.
Our cash flows provided by investing activities totaled $5.4 million in the first six months of 2009 versus a use of $4.7 million in the first six months of 2008. This increase is primarily due to proceeds of $6.6 million from a sale-leaseback transaction and a reduction of $3.9 million in capital expenditures.
Our cash flows used in financing activities totaled $0.6 million in the first six months of 2009 compared to $3.4 million for the same period of 2008. This decrease is primarily due to a $5.4 million decrease in net borrowings on our bank revolver offset by $4.0 million less in payments on long-term debt and lease obligations, $1.8 million less in treasury stock purchases and $2.8 million less in dividend payments.
We closed our store in Hattiesburg, Mississippi and exited that market in the first quarter of 2009. Our plans to improve our position by moving from two older stores to one new location in the Little Rock, Arkansas market were completed in the second quarter. Our planned expenditures for 2009 are $4.2 million of which $2.7 million is for store improvements and $1.4 million for information technology.
Our $60.0 million revolving credit facility (the Credit Agreement) is with two banks and terminates in December 2011. The Credit Agreement is secured by inventory, accounts receivable and cash, and should provide flexibility during this difficult economic cycle. The borrowing base at June 30, 2009 was $57.1 million. Amounts available are reduced by $10.0 million since a fixed charge coverage ratio test is not met for the immediately preceding twelve month period and also reduced $7.6 million for outstanding letters of credit at June 30, 2009, resulting in a net availability of $39.5 million. There were no borrowed amounts outstanding under the Credit Agreement at June 30, 2009.
Read the The complete ReportHVT is in the portfolios of Third Avenue Management.
