A Prettier Picture at Haverty: Fool by Numbers

On Nov. 2, Haverty Furniture (NYSE: HVT) released third-quarter earnings for the period ended Sept. 30.

• Better in-stock levels and using less time to complete home deliveries helped to push sales up by 8.4% to $224 million.
• Gross margin was up by 135 basis points due to an improved mix of merchandise.
• Reduced capital spending and an increase in cash flow from operations helped free cash flow turn positive for the year to date.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q3 2006	Q3 2005	Change
Sales*	$222	$224	$202	10.7%
Net Profit	--	$4	$4	8.4%
EPS	$0.17	$0.18	$0.17	5.9%
Diluted Shares	--	23	23	0.7%

*Sales include credit service charges

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	48.91%	47.56%	1.35
Operating Margin	2.65%	3.10%	(0.45)
Net Margin	1.86%	1.89%	(0.03)

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$9	$8	5.4%
Accounts Rec.	$62	$85	(26.4%)
Inventory	$118	$109	8.4%

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	$102	$113	(9.7%)
Long-Term Debt	$26	$35	(26.5%)

Learn the ways of the balance sheet.

Cash Flow Highlights

	YTD 2006	YTD 2005	Change
Cash From Ops.	$26	$21	26.4%
Capital Expenditures	$18	$27	(34.2%)
Free Cash Flow	$8	($6)	N/A

Find out why Fools always follow the money.

Related Companies:

• Pier 1 (NYSE: PIR)
• Restoration Hardware (Nasdaq: RSTO)
• Kirkland 's (Nasdaq: KIRK)

Related Foolishness:

• Foolish Forecast: Haverty Lounges In
• Change in Store at Pier 1
• Long Walk, Short Pier 1?

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.