On May 2, Haverty Furniture Company (NYSE:HVT) released first-quarter earnings for the period ended March 31.

  • Revenues declined by 8.6%, primarily because of lower sales volumes and negative comparable-store sales.
  • The company has been very careful in managing its inventory, decreasing the total on hand by $5 million since the beginning of the year, in response to the slower business conditions.
  • SG&A costs for the quarter were $3.4 million lower, as the company looked for ways to improve its efficiency and scale its operations to the current sales environment.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales*

$191.1

$209.1

(8.6%)

Net Profit

$0.8

$5.1

(83.7%)

EPS

$0.04

$0.23

(82.6%)

Diluted Shares

23.0

22.6

1.6%

*Revenues includes credit service charges.

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

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

49.9%

50.1%

(0.2)

Operating Margin

0.4%

3.3%

(2.9)

Net Margin

0.4%

2.4%

(2.0)

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$8.0

$7.8

2.1%

Accounts Rec.

$64.7

$71.0

(8.9%)

Inventory

$119.8

$120.4

(0.5%)

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable*

$79.7

$98.0

(18.6%)

Long-Term Debt

$36.6

$29.5

24.0%

*Includes accrued liabilities

Learn the ways of the balance sheet.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

($7.2)

($1.4)

N/A

Capital Expenditures

$2.5

$7.3

(66.5%)

Free Cash Flow

($9.7)

($8.8)

N/A

Free cash flow is a Fool's best friend

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