Haverty Furniture(HVT) - 2024 Q2 - Quarterly Results

Financial Performance - Diluted earnings per share (EPS) decreased to $0.27 from$ 0.70 year-over-year[2] - Consolidated sales fell by 13.4% to $178.6 million, with comparable-store sales down 13.6%[2] - Net income for the second quarter was$ 4.4 million, down from $11.8 million in the same period last year[2] - Net income for the six months ended June 30, 2024, was$ 6,831,000, a decrease from $24,164,000 for the same period in 2023, reflecting a decline of approximately 71.7%[11] - EBITDA for the six months ended June 30, 2024, was$ 16,773,000, down from $38,310,000 for the same period in 2023, a decrease of about 56.2%[13] Expenses and Margins - Gross profit margin slightly decreased to 60.4% from 60.5%[2] - Selling, general and administrative (SG&A) expenses as a percentage of sales increased to 57.7% from 53.3%[6] - Fixed and discretionary SG&A expenses for 2024 are projected to be in the range of$ 282.0 to $284.0 million, an$ 8.0 million reduction from previous guidance[8] Cash Flow and Assets - Cash generated from operating activities was $17.5 million, a decrease from$ 40.1 million year-over-year[5] - Cash flows from operating activities for the six months ended June 30, 2024, were $17,542,000, significantly lower than$ 40,128,000 for the same period in 2023, a decline of approximately 56.3%[11] - Total current assets decreased to $240,410,000 as of June 30, 2024, down from$ 257,472,000 as of December 31, 2023, representing a decline of about 6.6%[10] - The company reported a decrease in cash, cash equivalents, and restricted cash equivalents of $11,710,000 during the period, compared to a decrease of$ 13,828,000 for the same period in 2023[11] Liabilities and Customer Deposits - Total liabilities increased to $350,607,000 as of June 30, 2024, compared to$ 335,007,000 as of December 31, 2023, indicating an increase of approximately 4.7%[10] - Customer deposits increased to $45,589,000 as of June 30, 2024, compared to$ 38,731,000 as of December 31, 2023, representing an increase of approximately 17.7%[10] Capital Expenditures and Future Plans - Planned capital expenditures for 2024 are approximately $33.0 million, with a retail square footage increase of about 3.4% expected[8] - Capital expenditures for the six months ended June 30, 2024, were$ 15,952,000, a decrease from $40,482,000 for the same period in 2023, reflecting a reduction of about 60.6%[11] - The company announced the opening of a second store in the Indianapolis market, expected in Q4 2024[2] Tax and Forward-Looking Statements - The effective tax rate for 2024 is expected to be 27.5%, an increase from the previous guidance of 26.5%[8] - Forward-looking statements indicate expectations for retail and operating margins, capital expenditures, and liquidity position for 2024, subject to various risks and uncertainties[19] Company Overview - The company has 125 showrooms across 17 states, focusing on middle to upper-middle price ranges for home furnishings[17]