Financial Performance - Diluted earnings per share (EPS) decreased to $0.29 from $1.02, reflecting a significant decline in profitability [2] - Consolidated sales fell by 20.2% to $175.9 million, with comparable-store sales down 20.5% [2] - Net income for the nine months ended September 30, 2024, was $11,759 thousand, down from $41,317 thousand for the same period in 2023 [13] - EBITDA for the nine months ended September 30, 2024, was $27,666 thousand, compared to $64,334 thousand for the same period in 2023 [15] Expenses and Margins - Gross profit margin decreased to 60.2% from 60.8%, impacted by changes in the LIFO reserve [5] - Selling, general and administrative (SG&A) expenses were 57.4% of sales, an increase from 51.1% in the previous year [5] - The company plans to continue its strategic initiatives to enhance retail and operating margins in 2024 [22] Business Operations - Total written business declined by 15.3%, while comparable-store written business decreased by 16.3% [5] - Design consultants contributed 34.5% of written business in 2024, up from 29.0% in 2023 [5] - The company operates 126 showrooms across 17 states, focusing on middle to upper-middle price ranges [20] Cash Flow and Assets - Cash, cash equivalents, and restricted cash equivalents totaled $127.4 million as of September 30, 2024 [6] - Operating cash flow generated was $42.0 million, down from $79.4 million in the previous year [9] - Total assets as of September 30, 2024, were $659,302 thousand, a slight increase from $654,133 thousand at December 31, 2023, but a decrease from $676,681 thousand at September 30, 2023 [11][12] - Cash and cash equivalents at the end of the period were $127,365 thousand, down from $141,352 thousand at the end of the same period in 2023 [13] Inventory and Liabilities - Inventories decreased to $88,688 thousand as of September 30, 2024, from $102,334 thousand at September 30, 2023 [11] - Total current liabilities decreased to $137,798 thousand as of September 30, 2024, from $151,406 thousand at September 30, 2023 [12] - Customer deposits increased to $43,940 thousand as of September 30, 2024, from $46,308 thousand at September 30, 2023 [12] Capital Expenditures - Planned capital expenditures for 2024 are approximately $33.0 million, with a retail square footage increase of about 3.4% expected [7] - Capital expenditures for the nine months ended September 30, 2024, were $(24,285) thousand, compared to $(46,428) thousand for the same period in 2023 [13] Taxation - The effective tax rate for 2024 is projected to be 28.0%, an increase from the previous guidance of 27.5% [7]
Haverty Furniture(HVT_A) - 2024 Q3 - Quarterly Results