Haverty Furniture(US:HVT)2021-08-02 16:39Financial Performance - Net sales for Q2 2021 reached $249.99 million, a significant increase of 127.3% compared to $109.97 million in Q2 2020[8] - Gross profit for the six months ended June 30, 2021, was $276.54 million, up 73.8% from $159.20 million in the same period of 2020[8] - Net income for the six months ended June 30, 2021, was $42.26 million, compared to $15.46 million in 2020, representing a 173.5% increase[9] - For the three months ended June 30, 2021, net income was $22.858 million, compared to $13.640 million for the same period in 2020, representing a year-over-year increase of 67.3%[18] - For the six months ended June 30, 2021, net income totaled $42.264 million, up from $15.459 million in the same period of 2020, marking a significant increase of 173.5%[18] - Total revenues for the three months ended June 30, 2021, were $249.99 million, a significant increase from $109.97 million in the same period of 2020[28] Assets and Liabilities - Total current assets increased to $380.59 million as of June 30, 2021, up 20.3% from $316.24 million at the end of 2020[7] - Total liabilities rose to $471.73 million as of June 30, 2021, an increase of 10.4% from $427.41 million in 2020[7] - Cash and cash equivalents at the end of the period were $242.06 million, compared to $157.76 million at the end of June 2020, reflecting a 53.3% increase[9] - Customer deposits increased to $116.08 million as of June 30, 2021, a 34.7% rise from $86.18 million in 2020[7] - Total stockholders' equity increased from $270.314 million on March 31, 2021, to $289.412 million on June 30, 2021, reflecting a growth of 7.1%[17] Expenses and Margins - Gross profit for Q2 2021 was 56.6%, an increase of 240 basis points from 54.2% in Q2 2020, while the first half of 2021 gross profit was 56.8% compared to 55.0% in the same period of 2020[56] - SG&A expenses as a percentage of sales for Q2 2021 were 45.0%, down from 66.1% in Q2 2020, reflecting operational changes due to store closures[58] - Variable SG&A expenses for Q2 2021 were $41.96 million, representing 16.8% of net sales, while fixed and discretionary expenses were $70.44 million, or 28.0% of net sales[61] - SG&A expenses increased by $39.7 million for Q2 2021 and $52.0 million for the six months ended June 30, 2021, compared to the same prior year periods[58] Operational Challenges - The company experienced supply chain disruptions and product shortages due to increased consumer demand and staffing shortages[14] - The company faced challenges in product availability due to long production lead times, with custom upholstery orders averaging 16 weeks compared to 4-6 weeks pre-pandemic[55] - The company has encountered labor shortages affecting distribution and delivery capacity, impacting overall operations[49] Cash Flow and Financing - Net cash provided by operating activities was $57.6 million in the first six months of 2021, driven by net income of $42.2 million and non-cash adjustments of $12.7 million[71] - Cash used in investing activities was $10.9 million in the first six months of 2021, compared to cash provided of $65.1 million during the same period in 2020[74] - Cash used in financing activities was $11.4 million in the first six months of 2021, primarily reflecting $8.6 million in cash dividends paid[75] - The company had $60.0 million available under a revolving credit facility, with $13.6 million available to borrow as of June 30, 2021[66] Future Plans and Expectations - The company plans to open new locations in Myrtle Beach, SC, and Austin, TX, while closing a location in Dallas, TX, with net selling space expected to be slightly up compared to 2020[76] - The company expects fixed and discretionary expenses for the full year of 2021 to be approximately $275.0 to $278.0 million[64] - The company anticipates full-year gross profit margins for 2021 to be between 56.5% and 56.8%[57] - The company expects to recognize approximately $10.4 million in total compensation cost related to unvested equity awards over a weighted-average period of two years[40] Stock and Shareholder Information - Dividends declared for common stock were $4.261 million ($0.25 per share) and for Class A common stock were $0.301 million ($0.23 per share) during the three months ended June 30, 2021[16] - The company authorized an additional $30.0 million for share repurchases, with approximately $16.8 million remaining under the existing authorization as of June 30, 2021[68]