ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2017 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to |
Maryland | 58-0281900 |
(State of Incorporation) | (IRS Employer Identification Number) |
780 Johnson Ferry Road, Suite 800 Atlanta, Georgia | 30342 |
(Address of principal executive offices) | (Zip Code) |
(404) 443-2900 | |
(Registrant's telephone number, including area code) |
Title of each Class | Name of each exchange on which registered |
Common Stock ($1.00 Par Value) | New York Stock Exchange, Inc. |
Class A Common Stock ($1.00 Par Value) | New York Stock Exchange, Inc. |
Large accelerated filer | Accelerated filer |
Non-accelerated filer (Do not check if a smaller reporting company) | Smaller reporting company |
· | projections of sales or comparable store sales, gross profit, SG&A expenses, capital expenditures or other financial measures; |
· | descriptions of anticipated plans or objectives of our management for operations or products; |
· | forecasts of performance; and |
· | assumptions regarding any of the foregoing. |
Year ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Merchandise: | |||||||||
Case Goods | |||||||||
Bedroom Furniture | 17.0 | % | 18.3 | % | 19.4 | % | |||
Dining Room Furniture | 11.1 | 11.2 | 10.7 | ||||||
Occasional | 10.6 | 11.0 | 11.0 | ||||||
38.7 | 40.5 | 41.1 | |||||||
Upholstery | 39.9 | 38.8 | 38.2 | ||||||
Mattresses | 10.9 | 10.8 | 11.5 | ||||||
Accessories and Other (1) | 10.5 | 9.9 | 9.2 | ||||||
100.0 | % | 100.0 | % | 100.0 | % |
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | 2017 | 2016 | 2015 | ||||||||||||||||||
Cash or check | 8.6 | % | 9.5 | % | 9.3 | % | 8.8 | % | 8.5 | % | 9.7 | % | |||||||||||
Credit or debit cards | 56.1 | 54.7 | 54.2 | 59.8 | 58.0 | 56.3 | |||||||||||||||||
Third-party financed | 32.1 | 32.2 | 31.9 | 30.8 | 32.5 | 32.6 | |||||||||||||||||
Havertys financed | 3.2 | 3.6 | 4.6 | 0.6 | 1.0 | 1.4 | |||||||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
· | we could be forced to raise retail prices so high that we are unable to sell the products at current unit volumes; |
· | if we are unable to raise retail prices commensurately with the cost increases, gross profit as recognized under our LIFO inventory accounting method could be negatively impacted; or |
· | we may be forced to find alternative sources of comparable product, which may be more expensive than the current product, of lower quality, or the vendor may be unable to meet our requirements for quality, quantities, delivery schedules or other key terms. |
State | Number of Stores | State | Number of Stores | Number of Stores | State | Number of Stores | ||
Florida | 28 | Louisiana | 4 | 29 | Louisiana | 4 | ||
Texas | 22 | Maryland | 4 | 24 | Maryland | 4 | ||
Georgia | 17 | Kentucky | 2 | 18 | Arkansas | 3 | ||
North Carolina | 8 | Arkansas | 2 | 9 | Kentucky | 2 | ||
Virginia | 7 | Ohio | 2 | 8 | Ohio | 2 | ||
South Carolina | 7 | Indiana | 1 | |||||
Alabama | 7 | Indiana | 1 | 6 | Kansas | 1 | ||
South Carolina | 7 | Kansas | 1 | |||||
Tennessee | 6 | Missouri | 1 | 5 | Missouri | 1 |
Location | Owned or Leased | Approximate Square Footage |
Braselton, Georgia | Leased | 808,000 |
Coppell, Texas | Owned | 238,000 |
Lakeland, Florida | Owned | |
Colonial Heights, Virginia | Owned | 129,000 |
Fairfield, Ohio | Leased | 50,000 |
Theodore, Alabama | Leased | 42,000 |
Memphis, Tennessee | Leased | 30,000 |
Name, age and office (at December 31, 2014) and year elected to office | Principal occupation during last five years other than office of the Company currently held | |||||||||
Name, age and office (at December 31, 2017) and year elected to office | Name, age and office (at December 31, 2017) and year elected to office | Principal occupation during last five years other than office of the Company currently held | ||||||||
Clarence H. Smith | 64 | Chairman of the Board President and Chief Executive Officer Director | 2012 2002 1989 | President and Chief Executive Officer | 67 | Chairman of the Board President and Chief Executive Officer Director | 2012 2002 1989 | President and Chief Executive Officer | ||
Steven G. Burdette | 53 | Executive Vice President, Stores | 2008 | Has held this position for the last five years | 56 | Executive Vice President, Operations | 2017 | Executive Vice President, Stores, 2008-2017 | ||
J. Edward Clary | 54 | Senior Vice President, Distribution and Chief Information Officer | 2008 | Has held this position for the last five years | 57 | Executive Vice President, and Chief Information Officer | 2015 | Senior Vice President, Distribution and Chief Information Officer 2008-2015 | ||
Kathleen Daly-Jennings | 52 | Senior Vice President, Marketing since joining Havertys in June 2014 | 2014 | Head of Industry, Retail Vertical with Google, 2007 - 2014 | ||||||
Allan J. DeNiro | 61 | Senior Vice President, Chief People Officer | 2010 | Chief People Officer 2006 - 2010 | 64 | Senior Vice President, Chief People Officer | 2010 | Has held this position for the last five years | ||
Dennis L. Fink | 63 | Executive Vice President, Chief Financial Officer | 2006 | Has held this position for the last five years | ||||||
Richard D. Gallagher | 53 | Executive Vice President, Merchandising | 2014 | Senior Vice President, Merchandising, 2009- 2014 | 56 | Executive Vice President, Merchandising | 2014 | Senior Vice President, Merchandising, 2009-2014 | ||
Richard B. Hare | 51 | Executive Vice President and Chief Financial Officer | 2017 | Senior Vice President, Finance, Treasurer and Chief Financial Officer of Carmike Cinemas, Inc., 2006-2016 | ||||||
Rawson Haverty, Jr. | 58 | Senior Vice President, Real Estate and Development Director | 1988 1992 | Has held this position for the last five years | 61 | Senior Vice President, Real Estate and Development Director | 1988 1992 | Has held this position for the last five years | ||
Jenny Hill Parker | 56 | Senior Vice President, Finance, Secretary and Treasurer | 2010 | Vice President, Finance, Secretary and Treasurer 1998 - 2010 | 59 | Senior Vice President, Finance, Secretary and Treasurer | 2010 | Has held this position for the last five years | ||
Janet E. Taylor | 53 | Senior Vice President, General Counsel | 2010 | Vice President and General Counsel 2006 - 2010 | 56 | Senior Vice President, General Counsel | 2010 | Has held this position for the last five years |
ITEM 5. | MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
2014 | ||||||||||||||||||||||||
Common Stock | Class A Common Stock | |||||||||||||||||||||||
Quarter Ended | High | Low | Dividend Declared | High | Low | Dividend Declared | ||||||||||||||||||
March 31 | $ | 31.57 | $ | 25.21 | $ | 0.08 | $ | 31.25 | $ | 25.67 | $ | 0.075 | ||||||||||||
June 30 | 30.48 | 23.49 | 0.08 | 30.00 | 23.87 | 0.075 | ||||||||||||||||||
September 30 | 26.84 | 20.68 | 1.08 | (1) | 26.54 | 20.82 | 1.025 | (1) | ||||||||||||||||
December 31 | 23.00 | 19.54 | 0.08 | 23.25 | 19.61 | 0.075 |
2017 | ||||||||||||||||||||||||
Common Stock | Class A Common Stock | |||||||||||||||||||||||
Quarter Ended | High | Low | Dividend Declared | High | Low | Dividend Declared | ||||||||||||||||||
March 31 | $ | 25.50 | $ | 21.05 | $ | 0.1200 | $ | 25.40 | $ | 21.45 | $ | 0.1125 | ||||||||||||
June 30 | 26.30 | 22.90 | 0.1200 | 26.05 | 22.70 | 0.1125 | ||||||||||||||||||
September 30 | 26.60 | 21.05 | 0.1500 | 26.40 | 21.20 | 0.1425 | ||||||||||||||||||
December 31 | 27.23 | 22.60 | 0.1500 | 27.10 | 23.00 | 0.1425 |
2013 | 2016 | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Class A Common Stock | Common Stock | Class A Common Stock | |||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | High | Low | Dividend Declared | High | Low | Dividend Declared | High | Low | Dividend Declared | High | Low | Dividend Declared | ||||||||||||||||||||||||||||||||||||
March 31 | $ | 21.00 | $ | 16.16 | $ | 0.04 | $ | 20.83 | $ | 16.31 | $ | 0.0375 | $ | 21.76 | $ | 17.42 | $ | 0.10 | $ | 21.73 | $ | 17.52 | $ | 0.0950 | ||||||||||||||||||||||||
June 30 | 25.76 | 19.88 | 0.04 | 25.57 | 20.17 | 0.0375 | 21.48 | 16.65 | 0.10 | 20.92 | 16.90 | 0.0950 | ||||||||||||||||||||||||||||||||||||
September 30 | 27.85 | 21.76 | 0.08 | 27.51 | 21.93 | 0.0750 | 22.33 | 17.61 | 0.12 | 21.72 | 18.33 | 0.1125 | ||||||||||||||||||||||||||||||||||||
December 31 | 31.67 | 23.95 | 0.08 | 31.58 | 24.00 | 0.0750 | 24.50 | 16.58 | 1.12 | 24.40 | 17.04 | 1.0625 |
(a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number of Shares that May Yet be Purchased and Dollars to be Spent Under the Plans or Programs | |||||||||||||
December 1 – December 31, 2014 | 37,076 | $ | 21.68 | 37,076 | 241,988 | |||||||||||
$ | 10,000,000 |
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||
HVT | $ | 100.0 | $ | 95.41 | $ | 81.57 | $ | 129.79 | $ | 251.52 | $ | 186.86 | $ | 100.00 | $ | 193.79 | $ | 143.97 | $ | 142.48 | $ | 168.48 | $ | 163.73 | ||||||||||||||||||||||||
HVT-A | $ | 100.0 | $ | 94.93 | $ | 81.97 | $ | 130.11 | $ | 251.44 | $ | 184.09 | $ | 100.00 | $ | 193.25 | $ | 141.48 | $ | 140.86 | $ | 164.39 | $ | 166.22 | ||||||||||||||||||||||||
S&P Smallcap 600 Index | $ | 100.0 | $ | 126.31 | $ | 127.59 | $ | 148.42 | $ | 209.74 | $ | 221.81 | $ | 100.00 | $ | 141.31 | $ | 149.45 | $ | 146.50 | $ | 185.40 | $ | 209.94 | ||||||||||||||||||||||||
SIC Codes 5700-5799 | $ | 100.0 | $ | 109.58 | $ | 102.39 | $ | 92.74 | $ | 158.18 | $ | 145.94 | $ | 100.00 | $ | 178.54 | $ | 158.54 | $ | 118.16 | $ | 119.04 | $ | 148.65 |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | 2014 | 2013 | 2012 | 2011 | 2010 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Results of Operations | ||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 768,409 | $ | 746,090 | $ | 670,073 | $ | 620,903 | $ | 620,331 | $ | 819,866 | $ | 821,571 | $ | 804,870 | $ | 768,409 | $ | 746,090 | ||||||||||||||||||||
Net sales change over prior year | 3.0 | % | 11.3 | % | 7.9 | % | 0.1 | % | 5.5 | % | (0.2 | )% | 2.1 | % | 4.7 | % | 3.0 | % | 11.3 | % | ||||||||||||||||||||
Comp-store sales change over prior year | 3.6 | % | 11.0 | % | 6.8 | % | 0.3 | % | 7.0 | % | (1.3 | )% | 2.1 | % | 2.5 | % | 3.6 | % | 11.0 | % | ||||||||||||||||||||
Gross profit | 412,366 | 401,496 | 352,035 | 320,716 | 318,767 | 444,923 | 443,337 | 430,776 | 412,366 | 401,496 | ||||||||||||||||||||||||||||||
Percent of net sales | 53.7 | % | 53.8 | % | 52.5 | % | 51.7 | % | 51.4 | % | 54.3 | % | 54.0 | % | 53.5 | % | 53.7 | % | 53.8 | % | ||||||||||||||||||||
Selling, general and administrative expenses | 364,654 | 348,599 | 328,826 | 315,865 | 311,897 | 402,884 | 399,236 | 384,801 | 364,654 | 348,599 | ||||||||||||||||||||||||||||||
Percent of net sales | 47.5 | % | 46.7 | % | 49.1 | % | 50.9 | % | 50.3 | % | 49.1 | % | 48.6 | % | 47.8 | % | 47.5 | % | 46.7 | % | ||||||||||||||||||||
Income before income taxes(1) | 25,257 | 52,487 | 23,516 | 4,603 | 8,673 | 43,223 | 45,821 | 45,275 | 25,257 | 52,487 | ||||||||||||||||||||||||||||||
Net income (1)(2) | 8,589 | 32,265 | 14,911 | 15,463 | 8,444 | 21,075 | 28,356 | 27,789 | 8,589 | 32,265 | ||||||||||||||||||||||||||||||
Share Data | ||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||||||||||||||||
Common Stock | $ | 0.37 | $ | 1.41 | $ | 0.67 | $ | 0.70 | $ | 0.38 | $ | 0.98 | $ | 1.30 | $ | 1.22 | $ | 0.37 | $ | 1.41 | ||||||||||||||||||||
Class A Common Stock | 0.33 | 1.35 | 0.59 | 0.67 | 0.36 | 0.94 | 1.27 | 1.17 | 0.33 | 1.35 | ||||||||||||||||||||||||||||||
Adjusted diluted earnings per share:(3) | ||||||||||||||||||||||||||||||||||||||||
Common Stock | $ | 0.37 | $ | 1.41 | $ | 0.67 | $ | 0.70 | $ | 0.38 | $ | 0.98 | $ | 1.30 | $ | 1.22 | $ | 0.37 | $ | 1.41 | ||||||||||||||||||||
Impact of Tax Act in December 2017 | 0.27 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Pension settlement expense (1) | 0.90 | — | — | — | — | — | — | — | 0.90 | — | ||||||||||||||||||||||||||||||
Out-of-period adjustment(4) | — | (0.02 | ) | 0.02 | — | — | — | — | — | — | (0.02 | ) | ||||||||||||||||||||||||||||
Adjusted diluted earnings per common share(3) | $ | 1.28 | $ | 1.39 | $ | 0.69 | $ | 0.70 | $ | 0.38 | $ | 1.25 | $ | 1.30 | $ | 1.22 | $ | 1.28 | $ | 1.39 | ||||||||||||||||||||
Cash dividends – amount per share: | ||||||||||||||||||||||||||||||||||||||||
Common Stock(5) | 1.3200 | $ | 0.2400 | 1.1200 | 0.1200 | 0.1000 | $ | 0.540 | $ | 1.440 | $ | 0.360 | $ | 1.320 | $ | 0.240 | ||||||||||||||||||||||||
Class A Common Stock(5) | 1.2500 | $ | 0.2250 | 1.0625 | 0.1125 | 0.0950 | $ | 0.510 | $ | 1.365 | $ | 0.340 | $ | 1.250 | $ | 0.225 | ||||||||||||||||||||||||
Shares outstanding (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Common Stock | 20,568 | 20,122 | 19,471 | 18,829 | 18,512 | 19,452 | 19,287 | 20,124 | 20,568 | 20,122 | ||||||||||||||||||||||||||||||
Class A Common Stock | 2,081 | 2,393 | 2,775 | 3,120 | 3,331 | 1,767 | 1,818 | 2,032 | 2,081 | 2,393 | ||||||||||||||||||||||||||||||
Total shares | 22,649 | 22,515 | 22,246 | 21,949 | 21,843 | 21,219 | 21,104 | 22,156 | 22,649 | 22,515 | ||||||||||||||||||||||||||||||
Financial Position | ||||||||||||||||||||||||||||||||||||||||
Inventories | $ | 107,139 | $ | 91,483 | $ | 96,902 | $ | 93,713 | $ | 91,938 | $ | 103,437 | $ | 102,020 | $ | 108,896 | $ | 107,139 | $ | 91,483 | ||||||||||||||||||||
Capital expenditures | $ | 30,882 | $ | 20,202 | $ | 25,014 | $ | 17,566 | $ | 14,053 | $ | 24,465 | $ | 29,838 | $ | 27,143 | $ | 30,882 | $ | 20,202 | ||||||||||||||||||||
Depreciation/amortization expense | 22,613 | 21,450 | 19,415 | 18,242 | 16,859 | 30,516 | 29,045 | 25,756 | 22,613 | 21,450 | ||||||||||||||||||||||||||||||
Total assets | $ | 460,987 | $ | 417,855 | $ | 402,096 | $ | 385,100 | $ | 370,239 | $ | 461,329 | $ | 454,505 | $ | 471,251 | $ | 460,987 | $ | 417,855 | ||||||||||||||||||||
Total debt(6) | 49,065 | 17,155 | 19,354 | 13,046 | 9,099 | 54,591 | 55,474 | 53,125 | 49,065 | 17,155 | ||||||||||||||||||||||||||||||
Stockholders' equity | 292,083 | 298,264 | 259,428 | 262,669 | 253,182 | 294,142 | 281,871 | 301,739 | 292,083 | 298,264 | ||||||||||||||||||||||||||||||
Debt to total capital | 14.4 | % | 5.4 | % | 6.9 | % | 4.7 | % | 3.5 | % | 15.7 | % | 16.4 | % | 15.0 | % | 14.4 | % | 5.4 | % | ||||||||||||||||||||
Net cash provided by operating activities | 55,454 | 55,889 | 52,168 | 19,072 | 24,201 | 52,457 | 60,054 | 52,232 | 55,454 | 55,889 | ||||||||||||||||||||||||||||||
Other Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||
Employees | 3,388 | 3,266 | 3,250 | 3,050 | 3,100 | 3,551 | 3,656 | 3,596 | 3,388 | 3,266 | ||||||||||||||||||||||||||||||
Retail sq. ft. (in thousands) | 4,283 | 4,259 | 4,353 | 4,246 | 4,230 | |||||||||||||||||||||||||||||||||||
Retail sq. ft. (in thousands) at year end | 4,517 | 4,494 | 4,380 | 4,283 | 4,259 | |||||||||||||||||||||||||||||||||||
Annual retail net sales per weighted average sq. ft. | $ | 183 | $ | 176 | $ | 158 | $ | 148 | $ | 148 | $ | 185 | $ | 188 | $ | 185 | $ | 183 | $ | 176 | ||||||||||||||||||||
Average sale per written ticket | $ | 2,091 | $ | 2,048 | $ | 2,002 | $ | 1,912 | $ | 1,860 |
(1) | Includes for 2014 the impact of the settlement of the pension plan of a $21.6 million increase in expense and a tax benefit of $0.9 million, for a total impact of $20.7 million after tax or $0.90 per share. |
(2) | We reduced the valuation allowance and |
(3) | Adjusted diluted earnings per share is a non-GAAP financial measure. |
(4) | We recorded an out-of-period adjustment in 2013 related to certain vendors' pricing allowances. The non-cash adjustment increased gross profit by $0.8 million or $0.02 per diluted share. |
(5) | Includes special dividends of $1.00 for Common Stock and $0.95 for Class A Common Stock paid in the third quarter of 2014 and in the fourth quarter of 2016. |
(6) | Debt is comprised completely of lease obligations. |
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Statement of Operations Data: | ||||||||||||
Net sales | $ | 768,409 | $ | 746,090 | $ | 670,073 | ||||||
Gross profit | 412,366 | 401,496 | 352,035 | |||||||||
Selling, general and administrative expenses | 364,654 | 348,599 | 328,826 | |||||||||
Pension settlement expense | 21,623 | — | — | |||||||||
Income before interest and income taxes | 26,308 | 53,594 | 24,140 | |||||||||
Income before income taxes | 25,257 | 52,487 | 23,516 | |||||||||
Net income | $ | 8,589 | $ | 32,265 | $ | 14,911 | ||||||
Other Financial Data: | ||||||||||||
EBIT | $ | 26,308 | $ | 53,594 | $ | 24,140 | ||||||
Pension settlement expenses | 21,623 | — | — | |||||||||
Q-1 2013 gross profit adjustment | — | (835 | ) | 835 | ||||||||
Adjusted EBIT | $ | 47,931 | $ | 52,759 | $ | 24,975 | ||||||
Adjusted EBIT as a percent of net sales | 6.2 | % | 7.1 | % | 3.7 | % | ||||||
Adjusted EBIT | $ | 47,931 | $ | 52,759 | $ | 24,975 | ||||||
Interest expense, net | 1,051 | 1,107 | 624 | |||||||||
Adjusted income before income taxes | $ | 46,880 | $ | 51,652 | $ | 24,351 | ||||||
Net income | $ | 8,589 | $ | 32,265 | 14,911 | |||||||
Pension settlement expense, net of tax | 20,725 | — | — | |||||||||
Out-of-period adjustment, net of tax | — | (518 | ) | 518 | ||||||||
Adjusted net income | $ | 29,314 | $ | 31,747 | $ | 15,429 | ||||||
Earnings per diluted share | $ | 0.37 | $ | 1.41 | $ | 0.67 | ||||||
Non-cash pension settlement expense | 0.90 | — | — | |||||||||
Out-of-period adjustment | — | (0.02 | ) | 0.02 | ||||||||
Adjusted earnings per diluted share | $ | 1.28 | $ | 1.39 | $ | 0.69 | ||||||
Due to rounding amounts may not add to the totals. |
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Comp-Store Sales | Net Sales | Comp-Store Sales | Net Sales | Comp-Store Sales | Net Sales | Comp-Store Sales | Net Sales | Comp-Store Sales | Net Sales | Comp-Store Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Dollars in millions | % Increase (decrease) over prior period | % Increase (decrease) over prior period | Dollars in millions | % Increase (decrease) over prior period | % Increase (decrease) over prior period | Dollars in millions | % Increase (decrease) over prior period | % Increase (decrease) over prior period | Dollars in millions | % Increase (decrease) over prior period | % Increase (decrease) over prior period | Dollars in millions | % Increase (decrease) over prior period | % Increase (decrease) over prior period | Dollars in millions | % Increase (decrease) over prior period | % Increase (decrease) over prior period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 | $ | 181.7 | (2.3 | )% | (0.9 | )% | $ | 186.1 | 13.8 | % | 11.5 | % | $ | 163.6 | 6.1 | % | 5.7 | % | $ | 200.4 | 3.0 | % | 1.6 | % | $ | 194.5 | 1.7 | % | 0.9 | % | $ | 191.3 | 5.3 | % | 3.8 | % | ||||||||||||||||||||||||||||||||||||||
Q2 | 175.1 | 2.4 | 3.2 | 171.1 | 12.9 | 11.2 | 151.5 | 5.9 | 5.6 | 196.8 | 1.1 | (0.2 | ) | 194.8 | 3.8 | 3.8 | 187.7 | 7.2 | 4.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q3 | 198.5 | 3.0 | 3.5 | 192.7 | 11.6 | 11.8 | 172.7 | 11.1 | 10.0 | 207.6 | (1.9 | ) | (2.9 | ) | 211.7 | 0.8 | 1.2 | 209.9 | 5.7 | 3.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q4 | 213.0 | 8.6 | 8.3 | 196.2 | 7.6 | 9.5 | 182.3 | 8.4 | 6.0 | 215.0 | (2.6 | ) | (3.5 | ) | 220.6 | 2.2 | 2.5 | 215.9 | 1.4 | (0.9 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year | $ | 768.4 | 3.0 | % | 3.6 | % | $ | 746.1 | 11.3 | % | 11.0 | % | $ | 670.1 | 7.9 | % | 6.8 | % | $ | 819.9 | (0.2 | )% | (1.3 | )% | $ | 821.6 | 2.1 | % | 2.1 | % | $ | 804.9 | 4.7 | % | 2.5 | % |
2017 | 2016 | 2015 | ||||||||||||||||||||||
(In thousands) | % of Net Sales | % of Net Sales | % of Net Sales | |||||||||||||||||||||
Variable | $ | 149,694 | 18.2 | % | $ | 149,299 | 18.2 | % | $ | 143,861 | 17.9 | % | ||||||||||||
Fixed and discretionary | 253,190 | 30.9 | 249,937 | 30.4 | 240,940 | 29.9 | ||||||||||||||||||
$ | 402,884 | 49.1 | % | $ | 399,236 | 48.6 | % | $ | 384,801 | 47.8 | % |
$ | % of Net Sales | $ | % of Net Sales | $ | % of Net Sales | |||||||||||||||||||
Variable | $ | 134,168 | 17.5 | % | $ | 124,770 | 16.7 | % | $ | 116,933 | 17.5 | % | ||||||||||||
Fixed and discretionary | 230,486 | 30.0 | 223,829 | 30.0 | 211,893 | 31.6 | ||||||||||||||||||
$ | 364,654 | 47.5 | % | $ | 348,599 | 46.7 | % | $ | 328,826 | 49.1 | % |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net cash provided by operating activities | $ | 55,454 | $ | 55,889 | $ | 52,168 | $ | 52,457 | $ | 60,054 | $ | 52,232 | ||||||||||||
Capital expenditures | (30,882 | ) | (20,202 | ) | (25,014 | ) | (24,465 | ) | (29,838 | ) | (27,143 | ) | ||||||||||||
Free cash flow | $ | 24,572 | $ | 35,687 | $ | 27,154 | $ | 27,992 | $ | 30,216 | $ | 25,089 | ||||||||||||
Net cash used in investing activities | $ | (41,372 | ) | $ | (20,120 | ) | $ | (24,766 | ) | $ | (21,608 | ) | $ | (13,187 | ) | $ | (28,355 | ) | ||||||
Net cash used in financing activities | $ | (31,786 | ) | $ | (6,134 | ) | $ | (23,437 | ) | $ | (14,839 | ) | $ | (54,045 | ) | $ | (18,699 | ) |
· | Increase in inventories of |
· | Increase in prepaid expenses of $2.5 million primarily from the timing of the payment of taxes and computer maintenance agreements. |
· | Increase in customer deposits of $2.9 million. |
· | Decrease in accounts payable of $5.2 million. |
· | Decrease in accrued liabilities of $4.3 million primarily from the timing of payments for compensation and real estate and property taxes. |
· | Decrease in inventories of $6.9 million as we operated with leaner quantities in our distribution centers. |
· | Increase in other assets of $2.5 million, resulting from increased prepaid maintenance contracts and assets held under a non-qualified deferred compensation plan. |
· | Increase in prepaid expenses of $2.7 million primarily from the timing of the payment of payroll taxes and computer maintenance agreements. |
· | Decrease in accounts payable of $2.2 million. |
· | Increase in customer deposits of $3.9 million. |
· | Increase in inventories of $2.3 million, mainly due to the increase in showrooms, reduced $0.5 million for the inventory in our Lubbock store that was destroyed. |
· | Decrease in other current assets of |
· | Decrease in other assets of |
· | Increase in accounts payable of |
· | Decrease in |
Payments Due or Expected by Period | Payments Due or Expected by Period | |||||||||||||||||||||||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | 3-5 Years | After 5 Years | Total | Less than 1 Year | 1-3 Years | 3-5 Years | After 5 Years | |||||||||||||||||||||||||||||||
Lease obligations(1) | $ | 68,239 | $ | 4,706 | $ | 10,079 | $ | 10,273 | $ | 43,181 | $ | 69,885 | $ | 6,087 | $ | 12,263 | $ | 10,736 | $ | 40,799 | ||||||||||||||||||||
Operating leases | 202,777 | 32,148 | 59,535 | 48,065 | 63,029 | 153,474 | 31,643 | 55,126 | 35,502 | 31,203 | ||||||||||||||||||||||||||||||
Purchase orders | 90,806 | 90,806 | — | — | — | 88,426 | 88,426 | — | — | — | ||||||||||||||||||||||||||||||
Total contractual obligations(2) | $ | 361,822 | $ | 127,660 | $ | 69,614 | $ | 58,338 | $ | 106,210 | $ | 311,785 | $ | 126,156 | $ | 67,389 | $ | 46,238 | $ | 72,002 |
(1) | These amounts are for our lease obligations recorded in our consolidated balance sheets, including interest amounts. For additional information about our leases, refer to Note 8 of the Notes to the Consolidated Financial Statements. |
(2) | The contractual obligations do not include any amounts related to retirement benefits. For additional information about our plans, refer to Note 10 of the Notes to the Consolidated Financial Statements. |
2014 | 2013 | 2012 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||
Store Activity: | # of Stores | Square Footage | # of Stores | Square Footage | # of Stores | Square Footage | # of Stores | Square Footage | # of Stores | Square Footage | # of Stores | Square Footage | |||||||||||||||||||||||||
Opened | 5 | 167 | — | — | 4 | 139 | 3 | 100 | 4 | 146 | 4 | 159 | |||||||||||||||||||||||||
Closed | 5 | 160 | 3 | 103 | 1 | 32 | 3 | 85 | 1 | 33 | 2 | 73 | |||||||||||||||||||||||||
Year end balances | 119 | 4,283 | 119 | 4,259 | 122 | 4,353 | 124 | 4,517 | 124 | 4,494 | 121 | 4,380 |
Location | Opening (Closing) Quarter Actual or Planned | Category |
New Market | ||
Columbia, SC | (Q-1-18) | Closure |
To be announced | Closure | |
To be announced | Q-4-18 | New Market |
To be announced | Closure |
Proposed 2015 | 2014 | 2013 | 2012 | Proposed 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||
Stores: | ||||||||||||||||||||||||||||||||
New or replacement stores | $ | 13,000 | $ | 12,900 | $ | 100 | $ | 9,500 | $ | 1,100 | $ | 6,300 | $ | 6,800 | $ | 7,800 | ||||||||||||||||
Remodels/expansions | 8,000 | 6,900 | 11,200 | 5,500 | 2,000 | 5,300 | 3,900 | 8,900 | ||||||||||||||||||||||||
Other improvements | 3,000 | 4,200 | 3,900 | 4,600 | 3,900 | 3,600 | 4,200 | 3,700 | ||||||||||||||||||||||||
Total stores | 24,000 | 24,000 | 15,200 | 19,600 | 7,000 | 15,200 | 14,900 | 20,400 | ||||||||||||||||||||||||
Distribution | 3,500 | 3,500 | 2,300 | 1,600 | 11,000 | 6,500 | 9,200 | 2,800 | ||||||||||||||||||||||||
Information technology | 3,500 | 3,400 | 2,700 | 3,800 | 2,000 | 2,800 | 5,700 | 3,900 | ||||||||||||||||||||||||
Total | $ | 31,000 | $ | 30,900 | $ | 20,200 | $ | 25,000 | $ | 20,000 | $ | 24,500 | $ | 29,800 | $ | 27,100 |
Index | Page |
Financial Statements | |
Report of Independent Registered Public Accounting Firm on the Consolidated Financial Statements | F-1 |
Consolidated Balance Sheets | |
Consolidated Statements of Comprehensive Income | |
Consolidated Statements of Stockholders' Equity | |
Consolidated Statements of Cash Flows | |
Notes to Consolidated Financial Statements | |
Schedule II – Valuation and Qualifying Accounts |
(3) Exhibits: |
Exhibit No. | Exhibit |
+10.3 | |
+ | |
+ | |
+10.6.1 | |
+10.7 | Amended and Restated Supplemental Executive Retirement Plan, effective January 1, 2009 (Exhibit 10.9 to our |
+10.8 | |
+ | |
+10.9 | |
+10.10 | |
+10.11 |
Exhibit No. | Exhibit |
*23.1 | |
*23.2 | |
*31.1 | |
*31.2 |
Exhibit No. | Exhibit |
*32.1 | |
*101 | The following financial information from |
HAVERTY FURNITURE COMPANIES, INC. | ||
By: | /s/ CLARENCE H. SMITH | |
Clarence H. Smith | ||
Chairman of the Board, President and Chief Executive Officer |
/s/ CLARENCE H. SMITH | /s/ | |||
Clarence H. Smith Chairman of the Board, President and Chief Executive Officer (principal executive officer) | ||||
Executive Vice President and Chief Financial Officer (principal financial and accounting officer) | ||||
/s/ L. ALLISON DUKES | /s/ MYLLE H. MANGUM | |||
L. Allison Dukes Director | Director |
/s/ JOHN T. GLOVER | /s/ VICKI R. PALMER | |||
John T. Glover Lead Director | Vicki R. Palmer Director | |||
/s/ RAWSON HAVERTY, JR. | /s/ FRED L. SCHUERMANN | |||
Rawson Haverty, Jr. Director | Fred L. Schuermann Director | |||
/s/ L. PHILLIP HUMANN | /s/ AL TRUJILLO | |||
L. Phillip Humann | Al Trujillo Director | |||
December 31, | December 31, | |||||||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2017 | 2016 | ||||||||||||
Assets | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | $ | 65,481 | $ | 83,185 | $ | 79,491 | $ | 63,481 | ||||||||
Investments | 7,250 | — | ||||||||||||||
Restricted cash and cash equivalents | 8,017 | 7,016 | 8,115 | 8,034 | ||||||||||||
Accounts receivable | 7,146 | 8,172 | ||||||||||||||
Accounts receivable, net | 2,408 | 4,244 | ||||||||||||||
Inventories | 107,139 | 91,483 | 103,437 | 102,020 | ||||||||||||
Prepaid expenses | 6,418 | 6,494 | 11,314 | 8,836 | ||||||||||||
Other current assets | 8,010 | 4,349 | 5,922 | 7,500 | ||||||||||||
Total current assets | 209,461 | 200,699 | 210,687 | 194,115 | ||||||||||||
Accounts receivable, long-term | 731 | 832 | ||||||||||||||
Accounts receivable, long-term, net | 254 | 462 | ||||||||||||||
Property and equipment | 225,162 | 189,242 | 229,215 | 233,667 | ||||||||||||
Deferred income taxes | 17,610 | 13,253 | 12,375 | 18,376 | ||||||||||||
Other assets | 8,023 | 13,829 | 8,798 | 7,885 | ||||||||||||
Total assets | $ | 460,987 | $ | 417,855 | $ | 461,329 | $ | 454,505 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable | $ | 24,152 | $ | 21,810 | $ | 20,501 | $ | 25,662 | ||||||||
Customer deposits | 23,687 | 19,008 | 27,813 | 24,923 | ||||||||||||
Accrued liabilities | 39,960 | 36,338 | 37,582 | 41,904 | ||||||||||||
Deferred income taxes | 5,689 | — | ||||||||||||||
Current portion of lease obligations | 2,387 | 959 | 3,788 | 3,461 | ||||||||||||
Total current liabilities | 95,875 | 78,115 | 89,684 | 95,950 | ||||||||||||
Lease obligations, less current portion | 46,678 | 16,196 | 50,803 | 52,013 | ||||||||||||
Other liabilities | 26,351 | 25,280 | 26,700 | 24,671 | ||||||||||||
Commitments | — | — | ||||||||||||||
Total liabilities | 168,904 | 119,591 | 167,187 | 172,634 | ||||||||||||
Stockholders' equity | ||||||||||||||||
Capital Stock, par value $1 per share | ||||||||||||||||
Preferred Stock, Authorized – 1,000 shares; Issued: None | ||||||||||||||||
Common Stock, Authorized – 50,000 shares; Issued: 2014 – 28,327; 2013 – 27,853 | 28,327 | 27,853 | ||||||||||||||
Convertible Class A Common Stock, Authorized – 15,000 shares; Issued: 2014 – 2,603; 2013 – 2,915 | 2,603 | 2,915 | ||||||||||||||
Common Stock, Authorized – 50,000 shares; Issued: 2017 – 28,950; 2016 –28,793 | 28,950 | 28,793 | ||||||||||||||
Convertible Class A Common Stock, Authorized – 15,000 shares; Issued: 2017 – 2,290; 2016 – 2,340 | 2,290 | 2,340 | ||||||||||||||
Additional paid-in capital | 79,726 | 77,406 | 88,978 | 86,273 | ||||||||||||
Retained earnings | 260,031 | 281,222 | 287,390 | 277,707 | ||||||||||||
Accumulated other comprehensive income (loss) | (2,168 | ) | (15,412 | ) | (2,144 | ) | (1,830 | ) | ||||||||
Less treasury stock at cost – Common Stock (2014 – 7,759; 2013 – 7,731) and Convertible Class A Common Stock (2014 and 2013 – 522) | (76,436 | ) | (75,720 | ) | ||||||||||||
Less treasury stock at cost – Common Stock (2017 – 9,498; 2016 – 9,506) and Convertible Class A Common Stock (2017 and 2016 – 522) | (111,322 | ) | (111,412 | ) | ||||||||||||
Total stockholders' equity | 292,083 | 298,264 | 294,142 | 281,871 | ||||||||||||
Total liabilities and stockholders' equity | $ | 460,987 | $ | 417,855 | $ | 461,329 | $ | 454,505 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2012 | 2017 | 2016 | 2015 | ||||||||||||||||||
Net sales | $ | 768,409 | $ | 746,090 | $ | 670,073 | $ | 819,866 | $ | 821,571 | $ | 804,870 | ||||||||||||
Cost of goods sold | 356,043 | 344,594 | 318,038 | 374,943 | 378,234 | 374,094 | ||||||||||||||||||
Gross profit | 412,366 | 401,496 | 352,035 | 444,923 | 443,337 | 430,776 | ||||||||||||||||||
Credit service charges | 298 | 320 | 293 | 161 | 229 | 286 | ||||||||||||||||||
Gross profit and other revenue | 412,664 | 401,816 | 352,328 | 445,084 | 443,566 | 431,062 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Selling, general and administrative | 364,654 | 348,599 | 328,826 | 402,884 | 399,236 | 384,801 | ||||||||||||||||||
Pension settlement expense | 21,623 | — | — | |||||||||||||||||||||
Provision for doubtful accounts | 257 | 120 | 165 | 224 | 383 | 314 | ||||||||||||||||||
Other income, net | (178 | ) | (497 | ) | (803 | ) | (3,358 | ) | (4,107 | ) | (1,617 | ) | ||||||||||||
Total expenses | 386,356 | 348,222 | 328,188 | 399,750 | 395,512 | 383,498 | ||||||||||||||||||
Income before interest and income taxes | 26,308 | 53,594 | 24,140 | 45,334 | 48,054 | 47,564 | ||||||||||||||||||
Interest expense, net | 1,051 | 1,107 | 624 | 2,111 | 2,233 | 2,289 | ||||||||||||||||||
Income before income taxes | 25,257 | 52,487 | 23,516 | 43,223 | 45,821 | 45,275 | ||||||||||||||||||
Income tax expense | 16,668 | 20,222 | 8,605 | 22,148 | 17,465 | 17,486 | ||||||||||||||||||
Net income | $ | 8,589 | $ | 32,265 | $ | 14,911 | $ | 21,075 | $ | 28,356 | $ | 27,789 | ||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Defined benefit pension plan adjustments; net of tax expense (benefit) of ($2,954), $4,822 and $921 | $ | 13,244 | $ | 7,966 | $ | 1,501 | ||||||||||||||||||
Other comprehensive income | — | — | 117 | |||||||||||||||||||||
Total other comprehensive income | 13,244 | 7,966 | 1,618 | |||||||||||||||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||||||||||
Defined benefit pension plans adjustments; net of tax expense (benefit) of $105, $66 and $141 | $ | (314 | ) | $ | 108 | $ | 230 | |||||||||||||||||
Comprehensive income | $ | 21,833 | $ | 40,231 | $ | 16,529 | $ | 20,761 | $ | 28,464 | $ | 28,019 | ||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||
Common Stock | $ | 0.38 | $ | 1.45 | $ | 0.69 | $ | 1.00 | $ | 1.32 | $ | 1.24 | ||||||||||||
Class A Common Stock | $ | 0.33 | $ | 1.37 | $ | 0.58 | $ | 0.95 | $ | 1.27 | $ | 1.18 | ||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||
Common Stock | $ | 0.37 | $ | 1.41 | $ | 0.67 | $ | 0.98 | $ | 1.30 | $ | 1.22 | ||||||||||||
Class A Common Stock | $ | 0.33 | $ | 1.35 | $ | 0.59 | $ | 0.94 | $ | 1.27 | $ | 1.17 | ||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except share and per share data) | 2014 | 2013 | 2012 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||||||||||||||
Common Stock: | ||||||||||||||||||||||||||||||||||||||||||||||||
COMMON STOCK: | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | 27,853,412 | $ | 27,853 | 27,212,184 | $ | 27,212 | 26,578,193 | $ | 26,578 | 28,792,735 | $ | 28,793 | 28,485,758 | $ | 28,486 | 28,326,770 | $ | 28,327 | ||||||||||||||||||||||||||||||
Conversion of Class A Common Stock | 311,824 | 312 | 382,199 | 382 | 344,802 | 345 | 50,353 | 50 | 214,400 | 214 | 48,951 | 49 | ||||||||||||||||||||||||||||||||||||
Stock compensation transactions, net | 161,534 | 162 | 259,029 | 259 | 289,189 | 289 | 107,149 | 107 | 92,577 | 93 | 110,037 | 110 | ||||||||||||||||||||||||||||||||||||
Ending balance | 28,326,770 | 28,327 | 27,853,412 | 27,853 | 27,212,184 | 27,212 | 28,950,237 | 28,950 | 28,792,735 | 28,793 | 28,485,758 | 28,486 | ||||||||||||||||||||||||||||||||||||
Class A Common Stock: | ||||||||||||||||||||||||||||||||||||||||||||||||
CLASS A COMMON STOCK: | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | 2,915,234 | 2,915 | 3,297,433 | 3,297 | 3,642,235 | 3,642 | 2,340,059 | 2,340 | 2,554,459 | 2,554 | 2,603,410 | 2,603 | ||||||||||||||||||||||||||||||||||||
Conversion to Common Stock | (311,824 | ) | (312 | ) | (382,199 | ) | (382 | ) | (344,802 | ) | (345 | ) | (50,353 | ) | (50 | ) | (214,400 | ) | (214 | ) | (48,951 | ) | (49 | ) | ||||||||||||||||||||||||
Ending balance | 2,603,410 | 2,603 | 2,915,234 | 2,915 | 3,297,433 | 3,297 | 2,289,706 | 2,290 | 2,340,059 | 2,340 | 2,554,459 | 2,554 | ||||||||||||||||||||||||||||||||||||
Treasury Stock: | ||||||||||||||||||||||||||||||||||||||||||||||||
TREASURY STOCK: | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance (includes 522,410 shares Class A Stock for each of the years presented; remainder are Common Stock) | (8,253,414 | ) | (75,720 | ) | (8,263,557 | ) | (75,816 | ) | (8,271,024 | ) | (75,847 | ) | (10,028,315 | ) | (111,412 | ) | (8,884,024 | ) | (90,302 | ) | (8,281,277 | ) | (76,436 | ) | ||||||||||||||||||||||||
Directors' Compensation Plan | 9,213 | 88 | 10,143 | 96 | 25,649 | 249 | 7,812 | 90 | 16,248 | 172 | 14,274 | 136 | ||||||||||||||||||||||||||||||||||||
Purchases | (37,076 | ) | (804 | ) | — | — | (18,182 | ) | (218 | ) | — | — | (1,160,539 | ) | (21,282 | ) | (617,021 | ) | (14,002 | ) | ||||||||||||||||||||||||||||
Ending balance | (8,281,277 | ) | (76,436 | ) | (8,253,414 | ) | (75,720 | ) | (8,263,557 | ) | (75,816 | ) | (10,020,503 | ) | (111,322 | ) | (10,028,315 | ) | (111,412 | ) | (8,884,024 | ) | (90,302 | ) | ||||||||||||||||||||||||
Additional Paid-in Capital: | ||||||||||||||||||||||||||||||||||||||||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | 77,406 | 73,803 | 69,209 | 86,273 | 83,179 | 79,726 | ||||||||||||||||||||||||||||||||||||||||||
Stock option and restricted stock issuances | (2,232 | ) | (1,928 | ) | 1,605 | (1,662 | ) | (975 | ) | (1,312 | ) | |||||||||||||||||||||||||||||||||||||
Tax benefit related to stock-based plans | 896 | 1,754 | 289 | |||||||||||||||||||||||||||||||||||||||||||||
Tax (cost) benefit related to stock-based plans | — | (121 | ) | 253 | ||||||||||||||||||||||||||||||||||||||||||||
Directors' Compensation Plan | 337 | 454 | 147 | 549 | 318 | 479 | ||||||||||||||||||||||||||||||||||||||||||
Amortization of restricted stock | 3,319 | 3,323 | 2,553 | 3,818 | 3,872 | 4,033 | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | 79,726 | 77,406 | 73,803 | 88,978 | 86,273 | 83,179 | ||||||||||||||||||||||||||||||||||||||||||
Retained Earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||
RETAINED EARNINGS: | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | 281,222 | 254,310 | 264,083 | 277,707 | 279,760 | 260,031 | ||||||||||||||||||||||||||||||||||||||||||
Net income | 8,589 | 32,265 | 14,911 | 21,075 | 28,356 | 27,789 | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends (Common Stock: 2014 - $1.32; 2013 - $0.24 and 2012 - $1.12 per share Class A Common Stock: 2014 - $1.25; 2013 - $0.225 and 2012 - $1.0625 per share) | (29,780 | ) | (5,353 | ) | (24,684 | ) | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends (Common Stock: 2017 – $ 0.54; 2016 - $1.44; and 2015 - $0.36 per share Class A Common Stock: 2017- $0.51; 2016 -$1.365 and 2015 - $0.34 per share) | (11,392 | ) | (30,409 | ) | (8,060 | ) | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | 260,031 | 281,222 | 254,310 | 287,390 | �� | 277,707 | 279,760 | |||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss): | ||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | (15,412 | ) | (23,378 | ) | (24,996 | ) | (1,830 | ) | (1,938 | ) | (2,168 | ) | ||||||||||||||||||||||||||||||||||||
Pension liabilities adjustment, net of taxes | 13,244 | 7,966 | 1,501 | (314 | ) | 108 | 230 | |||||||||||||||||||||||||||||||||||||||||
Other | — | — | 117 | |||||||||||||||||||||||||||||||||||||||||||||
Ending balance | (2,168 | ) | (15,412 | ) | (23,378 | ) | (2,144 | ) | (1,830 | ) | (1,938 | ) | ||||||||||||||||||||||||||||||||||||
Total Stockholders' Equity | $ | 292,083 | $ | 298,264 | $ | 259,428 | ||||||||||||||||||||||||||||||||||||||||||
TOTAL STOCKHOLDERS' EQUITY | $ | 294,142 | $ | 281,871 | $ | 301,739 |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2017 | 2016 | 2015 | ||||||||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||||||||||
Net income | $ | 8,589 | $ | 32,265 | $ | 14,911 | $ | 21,075 | $ | 28,356 | $ | 27,789 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | 22,613 | 21,450 | 19,415 | 30,516 | 29,045 | 25,756 | ||||||||||||||||||
Gain on insurance recovery | (2,848 | ) | (3,338 | ) | — | |||||||||||||||||||
Proceeds from insurance recovery received for business interruption and destroyed inventory | 2,867 | 2,599 | — | |||||||||||||||||||||
Stock-based compensation expense | 3,319 | 3,323 | 2,553 | 3,818 | 3,872 | 4,033 | ||||||||||||||||||
Tax benefit from stock-based plans | (896 | ) | (1,754 | ) | (289 | ) | ||||||||||||||||||
Excess tax benefit from stock-based plans | — | (80 | ) | (397 | ) | |||||||||||||||||||
Deferred income taxes | 4,800 | (652 | ) | (2,209 | ) | 5,559 | (1,120 | ) | (3,019 | ) | ||||||||||||||
Provision for doubtful accounts | 257 | 120 | 165 | 224 | 383 | 314 | ||||||||||||||||||
Pension settlement expense | 21,623 | — | — | |||||||||||||||||||||
Other | 641 | 459 | 614 | 82 | (400 | ) | (160 | ) | ||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Accounts receivable | 870 | 1,400 | 1,210 | 1,820 | 1,514 | 960 | ||||||||||||||||||
Inventories | (15,656 | ) | 5,419 | (3,458 | ) | (2,112 | ) | 6,876 | (2,305 | ) | ||||||||||||||
Customer deposits | 4,679 | (1,955 | ) | 6,391 | 2,890 | 3,887 | (2,650 | ) | ||||||||||||||||
Other assets and liabilities | (2,023 | ) | (2,638 | ) | 1,819 | (932 | ) | (9,508 | ) | (590 | ) | |||||||||||||
Accounts payable and accrued liabilities | 6,638 | (1,548 | ) | 11,046 | (10,502 | ) | (2,032 | ) | 2,501 | |||||||||||||||
Net Cash Provided by Operating Activities | 55,454 | 55,889 | 52,168 | 52,457 | 60,054 | 52,232 | ||||||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||||||
Capital expenditures | (30,882 | ) | (20,202 | ) | (25,014 | ) | (24,465 | ) | (29,838 | ) | (27,143 | ) | ||||||||||||
Purchase of certificates of deposit | (10,000 | ) | — | — | ||||||||||||||||||||
Restricted cash and cash equivalents | (1,001 | ) | (3 | ) | (200 | ) | ||||||||||||||||||
Maturities of investments | — | 12,725 | 7,250 | |||||||||||||||||||||
Purchase of commercial paper and certificates of deposit | — | — | (9,975 | ) | ||||||||||||||||||||
Proceeds from insurance for destroyed property and equipment | 1,987 | 3,011 | — | |||||||||||||||||||||
Other investing activities | 511 | 85 | 448 | 870 | 915 | 1,513 | ||||||||||||||||||
Net Cash Used in Investing Activities | (41,372 | ) | (20,120 | ) | (24,766 | ) | (21,608 | ) | (13,187 | ) | (28,355 | ) | ||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||||||
Proceeds from borrowings under revolving credit facilities | — | — | — | — | — | — | ||||||||||||||||||
Payments of borrowings under revolving credit facilities | — | — | — | — | — | — | ||||||||||||||||||
Net change in borrowings under revolving credit facilities | — | — | — | — | — | — | ||||||||||||||||||
Construction allowance receipts | 1,590 | 1,574 | 6,701 | |||||||||||||||||||||
Payments on lease obligations | (1,088 | ) | (867 | ) | (766 | ) | (3,482 | ) | (3,125 | ) | (2,534 | ) | ||||||||||||
Proceeds from exercise of stock options | — | 872 | 2,457 | |||||||||||||||||||||
Tax benefit from stock-based plans | 896 | 1,754 | 289 | |||||||||||||||||||||
Excess tax benefit from stock-based plans | — | 80 | 397 | |||||||||||||||||||||
Dividends paid | (29,780 | ) | (5,353 | ) | (24,684 | ) | (11,392 | ) | (30,409 | ) | (8,060 | ) | ||||||||||||
Common stock repurchased and retired | (804 | ) | — | (218 | ) | |||||||||||||||||||
Other financing activities | (1,010 | ) | (2,540 | ) | (515 | ) | ||||||||||||||||||
Common stock repurchased | — | (21,282 | ) | (14,002 | ) | |||||||||||||||||||
Taxes on vested restricted shares | (1,555 | ) | (883 | ) | (1,201 | ) | ||||||||||||||||||
Net Cash Used In Financing Activities | (31,786 | ) | (6,134 | ) | (23,437 | ) | (14,839 | ) | (54,045 | ) | (18,699 | ) | ||||||||||||
Increase (Decrease) in cash and Cash Equivalents | (17,704 | ) | 29,635 | 3,965 | 16,010 | (7,178 | ) | 5,178 | ||||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 83,185 | 53,550 | 49,585 | 63,481 | 70,659 | 65,481 | ||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 65,481 | $ | 83,185 | $ | 53,550 | $ | 79,491 | $ | 63,481 | $ | 70,659 |
Buildings | 25 – 33 years | |
Improvements | 5 – 15 years | |
Furniture and Fixtures | 3 – 15 years | |
Equipment | 3 – 15 years | |
Buildings under lease | 15 years |
Year Ended December 31, | ||||||||||||||||||||||||
(In thousands) | 2017 | 2016 | 2015 | |||||||||||||||||||||
Net Sales | % of Net Sales | Net Sales | % of Net Sales | Net Sales | % of Net Sales | |||||||||||||||||||
Merchandise: | ||||||||||||||||||||||||
Case Goods | ||||||||||||||||||||||||
Bedroom Furniture | $ | 132,484 | 16.2 | % | $ | 132,250 | 16.1 | % | $ | 135,855 | 16.9 | % | ||||||||||||
Dining Room Furniture | 92,921 | 11.3 | 94,918 | 11.5 | 92,966 | 11.6 | ||||||||||||||||||
Occasional | 75,909 | 9.2 | 81,996 | 10.0 | 79,219 | 9.8 | ||||||||||||||||||
301,314 | 36.7 | 309,164 | 37.6 | 308,040 | 38.3 | |||||||||||||||||||
Upholstery | 330,340 | 40.3 | 328,903 | 40.0 | 321,484 | 39.9 | ||||||||||||||||||
Mattresses | 88,311 | 10.8 | 86,659 | 10.6 | 84,897 | 10.6 | ||||||||||||||||||
Accessories and Other (1) | 99,901 | 12.2 | 96,845 | 11.8 | 90,449 | 11.2 | ||||||||||||||||||
$ | 819,866 | 100.0 | % | $ | 821,571 | 100.0 | % | $ | 804,870 | 100.0 | % |
(In thousands) | 2014 | 2013 | |||||||
Land and improvements | $ | 48,410 | $ | 47,650 | |||||
Buildings and improvements | 245,188 | 235,468 | |||||||
Furniture and fixtures | 96,715 | 92,375 | |||||||
Equipment | 43,236 | 39,954 | |||||||
Buildings under lease | 36,756 | 19,577 | |||||||
Construction in progress | 16,146 | 902 | |||||||
486,451 | 435,926 | ||||||||
Less accumulated depreciation | (253,009 | ) | (240,808 | ) | |||||
Less accumulated lease amortization | (8,280 | ) | (5,876 | ) | |||||
Property and equipment, net | $ | 225,162 | $ | 189,242 |
(In thousands) | 2017 | 2016 | ||||||
Land and improvements | $ | 47,804 | $ | 48,264 | ||||
Buildings and improvements | 279,209 | 270,156 | ||||||
Furniture and fixtures | 103,695 | 115,263 | ||||||
Equipment | 48,745 | 47,222 | ||||||
Buildings under lease | 56,902 | 55,894 | ||||||
Construction in progress | 7,124 | 3,876 | ||||||
543,479 | 540,675 | |||||||
Less accumulated depreciation | (295,491 | ) | (292,003 | ) | ||||
Less accumulated lease amortization | (18,773 | ) | (15,005 | ) | ||||
Property and equipment, net | $ | 229,215 | $ | 233,667 |
(In thousands) | 2014 | 2013 | 2017 | 2016 | ||||||||||||
Accrued liabilities: | ||||||||||||||||
Employee compensation, related taxes and benefits | $ | 15,145 | $ | 14,318 | $ | 13,527 | $ | 15,024 | ||||||||
Taxes other than income and withholding | 9,322 | 8,231 | 8,677 | 10,856 | ||||||||||||
Self-insurance reserves | 5,942 | 5,326 | 5,962 | 5,945 | ||||||||||||
Other | 9,551 | 8,463 | 9,416 | 10,079 | ||||||||||||
$ | 39,960 | $ | 36,338 | $ | 37,582 | $ | 41,904 | |||||||||
Other liabilities: | ||||||||||||||||
Straight-line lease liability | $ | 10,850 | $ | 11,581 | $ | 8,565 | $ | 8,797 | ||||||||
Self-insurance reserves | 2,921 | 2,894 | 3,013 | 3,150 | ||||||||||||
Other | 12,580 | 10,805 | 15,122 | 12,724 | ||||||||||||
$ | 26,351 | $ | 25,280 | $ | 26,700 | $ | 24,671 |
(In thousands) | 2014 | 2013 | 2012 | 2017 | 2016 | 2015 | |||||||||||||||||||
Current | |||||||||||||||||||||||||
$ | 10,257 | $ | 18,253 | $ | 9,375 | $ | 14,239 | $ | 16,259 | $ | 17,598 | ||||||||||||||
State | 1,611 | 2,621 | 1,439 | 2,350 | 2,326 | 2,907 | |||||||||||||||||||
11,868 | 20,874 | 10,814 | 16,589 | 18,585 | 20,505 | ||||||||||||||||||||
Deferred | |||||||||||||||||||||||||
Federal | 4,323 | (706 | ) | (2,235 | ) | 5,829 | (690 | ) | (2,476 | ) | |||||||||||||||
State | 477 | 54 | 26 | (270 | ) | (430 | ) | (543 | ) | ||||||||||||||||
4,800 | (652 | ) | (2,209 | ) | 5,559 | (1,120 | ) | (3,019 | ) | ||||||||||||||||
$ | 16,668 | $ | 20,222 | $ | 8,605 | $ | 22,148 | $ | 17,465 | $ | 17,486 |
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Statutory rates applied to income before income taxes | $ | 8,840 | $ | 18,370 | $ | 8,231 | ||||||
State income taxes, net of Federal tax benefit | 788 | 1,610 | 769 | |||||||||
Net permanent differences | 42 | 316 | 8 | |||||||||
Release of valuation allowance in accumulated other comprehensive income related to settled pension obligations | 6,866 | — | — | |||||||||
Change in deferred tax asset valuation allowance | — | (1,363 | ) | (1,207 | ) | |||||||
Change in state credits | 110 | 1,466 | 1,129 | |||||||||
Change for net operating loss carrybacks, amended returns and related receivables | — | (204 | ) | 342 | ||||||||
Change in deferred tax rate | — | — | (125 | ) | ||||||||
Change in reserve for uncertain tax positions | — | — | (674 | ) | ||||||||
Other | 22 | 27 | 132 | |||||||||
$ | 16,668 | $ | 20,222 | $ | 8,605 |
(In thousands) | 2017 | 2016 | 2015 | |||||||||
Statutory rates applied to income before income taxes | $ | 15,129 | $ | 16,037 | $ | 15,846 | ||||||
State income taxes, net of Federal tax benefit | 1,306 | 1,494 | 1,487 | |||||||||
Net permanent differences | 95 | 99 | (11 | ) | ||||||||
Other | (250 | ) | (165 | ) | 164 | |||||||
Tax Act, net impact | 5,868 | — | — | |||||||||
$ | 22,148 | $ | 17,465 | $ | 17,486 |
(In thousands) | 2014 | 2013 | 2017 | 2016 | ||||||||||||
Deferred tax assets: | ||||||||||||||||
Accounts receivable related | $ | 743 | $ | 610 | ||||||||||||
Net property and equipment | 5,787 | 11,977 | ||||||||||||||
Accounts receivable | $ | 433 | $ | 808 | ||||||||||||
Property and equipment | 6,434 | 10,276 | ||||||||||||||
Leases | 5,055 | 5,007 | 4,356 | 5,913 | ||||||||||||
Accrued liabilities | 9,523 | 776 | 8,171 | 12,217 | ||||||||||||
State tax credits | — | 110 | ||||||||||||||
Retirement benefits | 720 | 4,633 | 492 | 513 | ||||||||||||
Other | 31 | 28 | 62 | 69 | ||||||||||||
Total deferred tax assets | 21,859 | 23,141 | 19,948 | 29,796 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Inventory related | 9,198 | 8,951 | ||||||||||||||
Inventory | 7,034 | 10,082 | ||||||||||||||
Other | 740 | 643 | 539 | 1,338 | ||||||||||||
Total deferred tax liabilities | 9,938 | 9,594 | 7,573 | 11,420 | ||||||||||||
Net deferred tax assets | $ | 11,921 | $ | 13,547 | $ | 12,375 | $ | 18,376 |
(In thousands) | 2014 | 2013 | |||||||
Current assets (liabilities): | |||||||||
Current deferred assets | $ | 5,801 | $ | 11,048 | |||||
Current deferred liabilities | (11,490 | ) | (10,754 | ) | |||||
(5,689 | ) | 294 | |||||||
Non-current assets (liabilities): | |||||||||
Non-current deferred assets | 38,978 | 39,974 | |||||||
Non-current deferred liabilities | (21,368 | ) | (26,721 | ) | |||||
17,610 | 13,253 | ||||||||
Net deferred tax assets | $ | 11,921 | $ | 13,547 |
(In thousands) | 2014 | 2013 | 2017 | 2016 | |||||||||||||
Revolving credit notes (a) | $ | — | $ | — | $ | — | $ | — | |||||||||
Lease obligations (b) | 49,065 | 17,155 | 54,591 | 55,474 | |||||||||||||
49,065 | 17,155 | 54,591 | 55,474 | ||||||||||||||
Less portion classified as current | (2,387 | ) | (959 | ) | (3,788 | ) | (3,461 | ) | |||||||||
$ | 46,678 | $ | 16,196 | $ | 50,803 | $ | 52,013 |
Pension Plan | SERP | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | 2017 | 2016 | ||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of the year | $ | 73,456 | $ | 80,610 | $ | 5,974 | $ | 6,368 | $ | 7,674 | $ | 7,719 | ||||||||||||
Service cost | — | — | 117 | 134 | ||||||||||||||||||||
Interest cost | 3,232 | 3,278 | 289 | 259 | 321 | 341 | ||||||||||||||||||
Plan settlements | (83,453 | ) | — | — | — | |||||||||||||||||||
Special termination benefits | 813 | — | — | — | ||||||||||||||||||||
Actuarial losses (gains) | 10,700 | (6,838 | ) | 1,095 | (595 | ) | 509 | (72 | ) | |||||||||||||||
Benefits paid | (3,935 | ) | (3,594 | ) | (205 | ) | (192 | ) | (305 | ) | (314 | ) | ||||||||||||
Benefit obligation at end of year | 813 | 73,456 | 7,270 | 5,974 | 8,199 | 7,674 | ||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 82,904 | 73,842 | — | — | ||||||||||||||||||||
Employer contribution | — | 4,200 | 205 | 192 | 305 | 314 | ||||||||||||||||||
Actual return on plan assets | 5,297 | 8,456 | — | — | ||||||||||||||||||||
Plan settlements | (83,453 | ) | — | — | — | |||||||||||||||||||
Benefits paid | (3,935 | ) | (3,594 | ) | (205 | ) | (192 | ) | (305 | ) | (314 | ) | ||||||||||||
Fair value of plan assets at end of year | 813 | 82,904 | — | — | — | — | ||||||||||||||||||
Funded status of the plan – (underfunded) | $ | — | $ | 9,448 | $ | (7,270 | ) | $ | (5,974 | ) | $ | (8,199 | ) | $ | (7,674 | ) | ||||||||
Accumulated benefit obligations | $ | — | $ | 73,456 | $ | 7,270 | $ | 5,974 | $ | 8,199 | $ | 7,674 |
Pension Plan | SERP | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | 2017 | 2016 | ||||||||||||||||||
Noncurrent assets | $ | — | $ | 9,448 | $ | — | $ | — | ||||||||||||||||
Current liabilities | — | — | (228 | ) | (214 | ) | $ | (365 | ) | $ | (369 | ) | ||||||||||||
Noncurrent liabilities | — | — | (7,042 | ) | (5,760 | ) | (7,834 | ) | (7,305 | ) | ||||||||||||||
$ | — | $ | 9,448 | $ | (7,270 | ) | $ | (5,974 | ) | $ | (8,199 | ) | $ | (7,674 | ) |
Pension Plan | SERP | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Prior service cost | $ | — | $ | — | $ | (432 | ) | $ | (641 | ) | ||||||
Net actuarial loss | — | (11,176 | ) | (1,663 | ) | (568 | ) | |||||||||
$ | — | $ | (11,176 | ) | $ | (2,095 | ) | $ | (1,209 | ) |
Pension Plan | SERP | SERP | ||||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||
Service cost-benefits earned during the period | $ | — | $ | — | $ | — | $ | 117 | $ | 134 | $ | 97 | $ | — | $ | — | $ | 129 | ||||||||||||||||||
Interest cost on projected benefit obligation | 3,232 | 3,278 | 3,506 | 289 | 259 | 262 | 321 | 341 | 314 | |||||||||||||||||||||||||||
Expected return on plan assets | (4,475 | ) | (4,948 | ) | (4,474 | ) | — | — | — | |||||||||||||||||||||||||||
Amortization of prior service cost | — | — | — | 210 | 210 | 210 | — | — | 210 | |||||||||||||||||||||||||||
Amortization of actuarial loss | 244 | 1,627 | 1,847 | 68 | 26 | 90 | 102 | 169 | ||||||||||||||||||||||||||||
Settlement loss recognized | 20,810 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Special termination benefit recognized | 813 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Curtailment loss recognized | — | — | 222 | |||||||||||||||||||||||||||||||||
Net pension costs | $ | 20,624 | $ | (43 | ) | $ | 879 | $ | 616 | $ | 671 | $ | 595 | $ | 411 | $ | 443 | $ | 1,044 |
Pension Plan | SERP | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Discount rate | n/a | 4.93% | 4.09% | 4.96% | ||||||||||
Rate of compensation increase | n/a | n/a | 3.50% | 3.50% |
Pension Plan | SERP | SERP | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2017 | 2016 | 2015 | |||||||||||||||||||||||
Discount rate | 4.93% | 4.13% | 4.60% | 4.96% | 4.08% | 4.60% | 4.30 | % | 4.58 | % | 4.09 | % | |||||||||||||||||||
Expected long-term return on plan assets | 6.00% | 6.65% | 6.75% | n/a | n/a | n/a | |||||||||||||||||||||||||
Rate of compensation increase | n/a | n/a | n/a | 3.50% | 3.50% | 3.50% | n/a | n/a | 3.50 | % |
2017 | 2016 | |||||||
Discount rate | 3.68 | % | 4.30 | % | ||||
Rate of compensation increase | n/a | n/a |
Fair Value Measurements | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||||||
Money Market Funds | $ | 813 | $ | 813 | $ | — | $ | 380 | $ | 380 | $ | — | ||||||||||||
Equity Securities: | ||||||||||||||||||||||||
Haverty Class A Common Stock | 6,348 | 6,348 | ||||||||||||||||||||||
U.S. Large Cap Passive(a) | 9,151 | 9,151 | ||||||||||||||||||||||
U.S. Small/Mid Cap Growth | 1,183 | 1,183 | ||||||||||||||||||||||
U.S. Small/Mid Cap Value | 1,174 | 1,174 | ||||||||||||||||||||||
International Equity | 6,316 | 6,316 | ||||||||||||||||||||||
Emerging Markets Equity | 1,530 | 1,530 | ||||||||||||||||||||||
— | — | — | 25,702 | 6,348 | 19,354 | |||||||||||||||||||
Fixed Income: | ||||||||||||||||||||||||
Opportunistic(b) | 8,143 | 8,143 | ||||||||||||||||||||||
Passive | 4,294 | 4,294 | ||||||||||||||||||||||
Long Duration Active(c) | 16,964 | 16,964 | ||||||||||||||||||||||
Long Duration Passive | 6,478 | 6,478 | ||||||||||||||||||||||
Long Duration Investment Grade(d) | 20,943 | 20,943 | ||||||||||||||||||||||
— | — | — | 56,822 | — | 56,822 | |||||||||||||||||||
Total | $ | 813 | $ | 813 | $ | — | $ | 82,904 | $ | 6,728 | $ | 76,176 |
(In thousands) | SERP | |||
2015 | $ | 228 | ||
2016 | 260 | |||
2017 | 369 | |||
2018 | 372 | |||
2019 | 379 | |||
2020-2024 | 2,098 |
(In thousands) | 2018 | 2019 | 2020 | 2021 | 2022 | 2023-2027 | ||||||||||||||||||
Benefit Payments | $ | 365 | $ | 376 | $ | 404 | $ | 431 | $ | 431 | $ | 2,437 |
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Beginning balance | $ | (15,412 | ) | $ | (23,378 | ) | $ | (24,996 | ) | ||||
Other comprehensive income (loss) | |||||||||||||
Defined benefit pension plans: | |||||||||||||
Net gain (loss) during year | (10,974 | ) | 10,943 | 339 | |||||||||
Amortization of prior service cost(1) | 210 | 210 | 210 | ||||||||||
Amortization of net loss(1) | 244 | 1,695 | 1,873 | ||||||||||
Settlement loss recognized(2) | 20,810 | — | — | ||||||||||
10,290 | 12,848 | 2,422 | |||||||||||
Tax expense (benefit)(3) | (2,954 | ) | 4,882 | 921 | |||||||||
Defined benefit pension plans, net | 13,244 | 7,966 | 1,501 | ||||||||||
Other (4) | — | — | 117 | ||||||||||
Total other comprehensive income | 13,244 | 7,966 | 1,618 | ||||||||||
Ending balance | $ | (2,168 | ) | $ | (15,412 | ) | $ | (23,378 | ) |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Beginning balance | $ | (1,830 | ) | $ | (1,938 | ) | $ | (2,168 | ) | |||
Other comprehensive income (loss) | ||||||||||||
Defined benefit pension plan: | ||||||||||||
Net loss (gain) during year | (509 | ) | 72 | (230 | ) | |||||||
Amortization of prior service cost(1) | — | — | 432 | |||||||||
Amortization of net loss(1) | 90 | 102 | 169 | |||||||||
(419 | ) | 174 | 371 | |||||||||
Tax expense (benefit) | (105 | ) | 66 | 141 | ||||||||
Total other comprehensive income (loss) | (314 | ) | 108 | 230 | ||||||||
Ending balance | $ | (2,144 | ) | $ | (1,830 | ) | $ | (1,938 | ) |
(1) | These amounts are included in the computation of net periodic pension costs and were reclassified to selling, general and administrative costs. For 2015, this includes $222,000 in curtailment loss on the SERP. |
Restricted Stock Award | Stock-Settled Appreciation Rights | Options | ||||||||||||||||||||||
Shares or Units | Weighted-Average Award Price | Rights | Weighted-Average Award Price | Shares | Weighted-Average Exercise Price | |||||||||||||||||||
Outstanding at January 1, 2011 | 432,025 | $ | 12.13 | 144,049 | $ | 8.87 | 292,100 | $ | 14.20 | |||||||||||||||
Granted | 252,700 | 12.34 | — | — | — | — | ||||||||||||||||||
Exercised or restrictions lapsed(1) | (127,050 | ) | 11.87 | (22,300 | ) | 8.94 | (236,100 | ) | 12.89 | |||||||||||||||
Forfeited or expired | (1,750 | ) | 12.34 | — | — | (6,000 | ) | 12.84 | ||||||||||||||||
Outstanding at December 31, 2012 | 555,925 | 12.28 | 121,749 | 8.85 | 50,000 | 20.56 | ||||||||||||||||||
Granted | 162,150 | 18.15 | 112,000 | 18.14 | — | — | ||||||||||||||||||
Exercised or restrictions lapsed(1) | (277,975 | ) | 12.24 | (84,049 | ) | 8.90 | (48,000 | ) | 20.75 | |||||||||||||||
Forfeited or expired | (3,100 | ) | 15.00 | — | — | (2,000 | ) | 15.90 | ||||||||||||||||
Outstanding at December 31, 2013 | 437,000 | 14.46 | 149,700 | 15.78 | — | — | ||||||||||||||||||
Granted | 146,748 | 28.72 | — | — | ||||||||||||||||||||
Exercised or restrictions lapsed(1) | (235,925 | ) | 14.01 | (13,725 | ) | 12.30 | ||||||||||||||||||
Forfeited or expired | (26,501 | ) | 24.28 | (6,000 | ) | 18.14 | ||||||||||||||||||
Outstanding at December 31, 2014 | 321,322 | $ | 20.49 | 129,975 | $ | 16.04 | — | — | ||||||||||||||||
Exercisable at December 31, 2014 | 51,975 | $ | 12.88 | — | — | |||||||||||||||||||
Restricted units expected to vest | 321,322 | $ | 20.49 | |||||||||||||||||||||
Exercisable at December 31, 2013 | 37,700 | $ | 8.76 | — | — | |||||||||||||||||||
Exercisable at December 31, 2012 | 96,224 | $ | 8.89 | 50,000 | $ | 20.56 |
Restricted Stock Award | Stock-Settled Appreciation Rights | |||||||||||||||
Shares or Units | Weighted-Average Award Price | Rights | Weighted-Average Award Price | |||||||||||||
Outstanding at December 31, 2014 | 321,322 | $ | 20.49 | 129,975 | $ | 16.04 | ||||||||||
Granted | 176,135 | 23.97 | — | |||||||||||||
Restrictions lapsed or exercised (1) | (147,595 | ) | 18.94 | (29,100 | ) | 8.74 | ||||||||||
Forfeited or expired | (5,372 | ) | 24.84 | — | ||||||||||||
Outstanding at December 31, 2015 | 344,490 | $ | 22.87 | 100,875 | $ | 18.14 | ||||||||||
Granted | 209,394 | 18.80 | — | |||||||||||||
Restrictions lapsed or exercised | (140,864 | ) | 20.55 | — | ||||||||||||
Forfeited or expired | (15,700 | ) | 20.45 | — | ||||||||||||
Outstanding at December 31, 2016 | 397,320 | $ | 21.64 | 100,875 | $ | 18.14 | ||||||||||
Granted | 199,382 | 22.00 | — | |||||||||||||
Restrictions lapsed or exercised(1) | (157,406 | ) | 22.02 | (43,875 | ) | 18.14 | ||||||||||
Forfeited or expired | (5,032 | ) | 20.09 | — | ||||||||||||
Outstanding at December 31, 2017 | 434,264 | $ | 21.69 | 57,000 | $ | 18.14 | ||||||||||
Exercisable at December 31, 2017 | 57,000 | $ | 18.14 | |||||||||||||
Restricted units expected to vest | 417,590 | $ | 21.71 | |||||||||||||
Exercisable at December 31, 2016 | 74,875 | $ | 18.14 | |||||||||||||
Exercisable at December 31, 2015 | 48,875 | $ | 18.14 |
(1) | The total intrinsic value of stock-settled appreciation rights exercised was approximately $457,000 in 2015 and $284,000 in 2017. |
Numerator: | 2014 | 2013 | 2012 | 2017 | 2016 | 2015 | ||||||||||||||||||
Common: | ||||||||||||||||||||||||
Distributed earnings | $ | 27,077 | $ | 4,787 | $ | 21,721 | $ | 10,473 | $ | 27,674 | $ | 7,358 | ||||||||||||
Undistributed earnings | (19,220 | ) | 23,972 | (8,522 | ) | 8,896 | (1,869 | ) | 17,995 | |||||||||||||||
Basic | 7,857 | 28,759 | 13,199 | 19,369 | 25,805 | 25,353 | ||||||||||||||||||
Class A Common earnings | 732 | 3,506 | 1,712 | 1,706 | 2,551 | 2,436 | ||||||||||||||||||
Diluted | $ | 8,589 | $ | 32,265 | $ | 14,911 | $ | 21,075 | $ | 28,356 | $ | 27,789 | ||||||||||||
Class A Common: | ||||||||||||||||||||||||
Distributed earnings | $ | 2,703 | $ | 566 | $ | 2,963 | $ | 919 | $ | 2,735 | $ | 702 | ||||||||||||
Undistributed earnings | (1,971 | ) | 2,940 | (1,251 | ) | 787 | (184 | ) | 1,734 | |||||||||||||||
$ | 732 | $ | 3,506 | $ | 1,712 | $ | 1,706 | $ | 2,551 | $ | 2,436 |
Denominator: | 2014 | 2013 | 2012 | 2017 | 2016 | 2015 | ||||||||||||||||||
Common: | ||||||||||||||||||||||||
Weighted average shares outstanding - basic | 20,426 | 19,865 | 19,096 | 19,381 | 19,492 | 20,430 | ||||||||||||||||||
Assumed conversion of Class A Common Stock | 2,199 | 2,558 | 2,943 | 1,801 | 2,014 | 2,067 | ||||||||||||||||||
Dilutive options, awards and common stock equivalents | 315 | 392 | 343 | 417 | 341 | 301 | ||||||||||||||||||
Total weighted average diluted Common Stock | 22,940 | 22,815 | 22,382 | 21,599 | 21,847 | 22,798 | ||||||||||||||||||
Class A Common: | ||||||||||||||||||||||||
Weighted average shares outstanding | 2,199 | 2,558 | 2,943 | 1,801 | 2,014 | 2,067 | ||||||||||||||||||
Basic net earnings per share | ||||||||||||||||||||||||
Common Stock | $ | 0.38 | $ | 1.45 | $ | 0.69 | $ | 1.00 | $ | 1.32 | $ | 1.24 | ||||||||||||
Class A Common Stock | $ | 0.33 | $ | 1.37 | $ | 0.58 | $ | 0.95 | $ | 1.27 | $ | 1.18 | ||||||||||||
Diluted net earnings per share | ||||||||||||||||||||||||
Common Stock | $ | 0.37 | $ | 1.41 | $ | 0.67 | $ | 0.98 | $ | 1.30 | $ | 1.22 | ||||||||||||
Class A Common Stock | $ | 0.33 | $ | 1.35 | $ | 0.59 | $ | 0.94 | $ | 1.27 | $ | 1.17 |
(In thousands) | Operating Leases | |||
2015 | $ | 32,148 | ||
2016 | 31,085 | |||
2017 | 28,450 | |||
2018 | 26,615 | |||
2019 | 21,450 | |||
Subsequent to 2020 | 63,029 | |||
Total minimum lease payments | 202,777 | |||
Less total minimum sublease rentals | (12 | ) | ||
Net minimum lease payments | $ | 202,765 |
(In thousands) | Operating Leases | |||
2018 | $ | 31,643 | ||
2019 | 28,862 | |||
2020 | 26,264 | |||
2021 | 21,074 | |||
2022 | 14,428 | |||
Subsequent to 2022 | 31,203 | |||
Total minimum lease payments | $ | 153,474 |
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | 2017 | 2016 | 2015 | |||||||||||||||||||||
Property | ||||||||||||||||||||||||
Minimum | $ | 27,264 | $ | 27,370 | $ | 27,633 | $ | 27,543 | $ | 26,594 | $ | 27,211 | ||||||||||||
Additional rentals based on sales | 79 | — | — | 21 | 4 | 27 | ||||||||||||||||||
Sublease income | (144 | ) | (146 | ) | (137 | ) | (90 | ) | (58 | ) | (206 | ) | ||||||||||||
27,199 | 27,224 | 27,496 | 27,474 | 26,540 | 27,032 | |||||||||||||||||||
Equipment | 2,568 | 2,444 | 2,162 | 3,084 | 3,031 | 2,943 | ||||||||||||||||||
$ | 29,767 | $ | 29,668 | $ | 29,658 | $ | 30,558 | $ | 29,571 | $ | 29,975 |
(In thousands) | 2017 | 2016 | 2015 | |||||||||
Cash paid for income taxes | 18,763 | $ | 26,574 | $ | 13,509 | |||||||
Income tax refunds received | 9 | 100 | 5 | |||||||||
Cash paid for interest | 2,486 | 2,540 | 2,583 | |||||||||
Noncash financing and investing activity: | ||||||||||||
Fixed assets acquired (adjusted) related to capital lease and financing obligations | 1,009 | 3,890 | 3,176 | |||||||||
Increase in financing obligations | 2,598 | 5,474 | 6,594 |
2014 Quarter Ended | 2017 Quarter Ended | |||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | March 31 | June 30 | September 30 | December 31 | |||||||||||||||||||||||||
Net sales | $ | 181,737 | $ | 175,132 | $ | 198,541 | $ | 212,999 | $ | 200,427 | $ | 196,829 | $ | 207,647 | $ | 214,962 | ||||||||||||||||
Gross profit | 97,862 | 94,144 | 106,203 | 114,156 | 109,596 | 107,119 | 112,015 | 116,193 | ||||||||||||||||||||||||
Credit service charges | 81 | 71 | 72 | 75 | 45 | 42 | 38 | 35 | ||||||||||||||||||||||||
Income before taxes | 9,956 | 7,812 | 12,468 | (4,978 | ) | 9,740 | 9,694 | 9,719 | 14,070 | |||||||||||||||||||||||
Net income | 6,129 | 4,829 | 7,824 | (10,192 | ) | 5,986 | 6,185 | 5,983 | 2,921 | |||||||||||||||||||||||
Basic net earnings (loss) per share: | ||||||||||||||||||||||||||||||||
Basic net earnings per share: | ||||||||||||||||||||||||||||||||
Common | 0.27 | 0.21 | 0.35 | (0.45 | ) | 0.28 | 0.29 | 0.28 | 0.14 | |||||||||||||||||||||||
Class A Common | 0.26 | 0.20 | 0.33 | (0.43 | ) | 0.27 | 0.28 | 0.27 | 0.13 | |||||||||||||||||||||||
Diluted net earnings (loss) per share: | ||||||||||||||||||||||||||||||||
Diluted net earnings per share: | ||||||||||||||||||||||||||||||||
Common | 0.27 | 0.21 | 0.34 | (0.45 | ) | 0.28 | 0.29 | 0.28 | 0.13 | |||||||||||||||||||||||
Class A Common | 0.26 | 0.20 | 0.33 | (0.43 | ) | 0.27 | 0.27 | 0.27 | 0.13 |
2013 Quarter Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
Net sales | $ | 186,090 | $ | 171,114 | $ | 192,722 | $ | 196,164 | ||||||||
Gross profit | 100,309 | 91,311 | 103,877 | 106,000 | ||||||||||||
Credit service charges | 86 | 76 | 78 | 79 | ||||||||||||
Income before taxes | 13,450 | 7,866 | 15,388 | 15,783 | ||||||||||||
Net income | 8,260 | 4,830 | 9,494 | 9,681 | ||||||||||||
Basic net earnings per share: | ||||||||||||||||
Common | 0.37 | 0.22 | 0.42 | 0.43 | ||||||||||||
Class A Common | 0.35 | 0.20 | 0.40 | 0.41 | ||||||||||||
Diluted net earnings per share: | ||||||||||||||||
Common | 0.36 | 0.21 | 0.42 | 0.42 | ||||||||||||
Class A Common | 0.34 | 0.20 | 0.40 | 0.41 |
2016 Quarter Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
Net sales | $ | 194,511 | $ | 194,774 | $ | 211,690 | $ | 220,595 | ||||||||
Gross profit | 104,419 | 104,160 | 113,737 | 121,020 | ||||||||||||
Credit service charges | 65 | 54 | 54 | 56 | ||||||||||||
Income before taxes | 7,587 | 8,762 | 12,125 | 17,347 | ||||||||||||
Net income | 4,669 | 5,374 | 7,336 | 10,947 | ||||||||||||
Basic net earnings per share: | ||||||||||||||||
Common | 0.21 | 0.25 | 0.35 | 0.52 | ||||||||||||
Class A Common | 0.20 | 0.24 | 0.33 | 0.50 | ||||||||||||
Diluted net earnings per share: | ||||||||||||||||
Common | 0.21 | 0.24 | 0.34 | 0.51 | ||||||||||||
Class A Common | 0.20 | 0.23 | 0.33 | 0.51 |
Column A | Column B | Column C | Column D | Column E | Column B | Column C | Column D | Column E | ||||||||||||||||||||||||
(In thousands) | Balance at beginning of period | Additions charged to costs and expenses | Deductions Describe (1)(2) | Balance at end of period | Balance at beginning of period | Additions charged to costs and expenses | Deductions Describe (1)(2) | Balance at end of period | ||||||||||||||||||||||||
Year ended December 31, 2014: | ||||||||||||||||||||||||||||||||
Year ended December 31, 2017: | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 350 | $ | 257 | $ | 257 | $ | 350 | $ | 360 | $ | 314 | $ | 404 | $ | 270 | ||||||||||||||||
Reserve for cancelled sales and allowances | $ | 1,277 | $ | 11,126 | $ | 10,776 | $ | 1,627 | $ | 1,772 | $ | 11,601 | $ | 11,909 | $ | 1,464 | ||||||||||||||||
Year ended December 31, 2013: | ||||||||||||||||||||||||||||||||
Year ended December 31, 2016: | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 395 | $ | 120 | $ | 165 | $ | 350 | $ | 395 | $ | 418 | $ | 453 | $ | 360 | ||||||||||||||||
Reserve for cancelled sales and allowances | $ | 1,152 | $ | 10,402 | $ | 10,277 | $ | 1,277 | $ | 1,659 | $ | 11,402 | $ | 11,289 | $ | 1,772 | ||||||||||||||||
Year ended December 31, 2012: | ||||||||||||||||||||||||||||||||
Year ended December 31, 2015: | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 525 | $ | 165 | $ | 295 | $ | 395 | $ | 350 | $ | 269 | $ | 224 | $ | 395 | ||||||||||||||||
Reserve for cancelled sales and allowances | $ | 1,100 | $ | 9,027 | $ | 8,975 | $ | 1,152 | $ | 1,627 | $ | 11,466 | $ | 11,434 | $ | 1,659 |
(1) | Allowance for doubtful accounts: uncollectible accounts written off, net of recoveries. |
(2) | Reserve for cancelled sales and allowances: impact of sales cancelled after delivery plus amount of allowance given to customers. |