Haverty Furniture Companies (HVT) has reported 28.21 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $5.99 million, or $0.28 a share in the quarter, compared with $4.67 million, or $0.21 a share for the same period last year.
Revenue during the quarter grew 3.04 percent to $200.43 million from $194.51 million in the previous year period. Gross margin for the quarter expanded 99 basis points over the previous year period to 54.70 percent. Total expenses were 94.85 percent of quarterly revenues, down from 95.78 percent for the same period last year. This has led to an improvement of 93 basis points in operating margin to 5.15 percent.
Operating income for the quarter was $10.32 million, compared with $8.21 million in the previous year period.
Clarence H. Smith, chairman, president and chief executive officer, said, "We are pleased with the first quarter sales and earnings given the choppy retail environment. Our merchandising team has developed a great assortment of products to meet the discerning tastes of the on-trend consumer. The upholstery category continues to drive our business with strong sales and favorable margins, and we had good results from the mattress and accessory groups.
Operating cash flow turns positiveHaverty Furniture Companies has generated cash of $5.76 million from operating activities during the quarter as against cash outgo of $4.76 million in the last year period. The company has spent $4.17 million cash to meet investing activities during the quarter as against cash outgo of $8.98 million in the last year period. It has incurred net capital expenditure of $5.16 million on net basis during the quarter, down 42.47 percent or $3.81 million from year ago period.
The company has spent $3.57 million cash to carry out financing activities during the quarter as against cash outgo of $3.19 million in the last year period.
Cash and cash equivalents stood at $61.50 million as on Mar. 31, 2017, up 14.45 percent or $7.76 million from $53.73 million on Mar. 31, 2016.
Working capital declines
Haverty Furniture Companies has witnessed a decline in the working capital over the last year. It stood at $104.84 million as at Mar. 31, 2017, down 15.13 percent or $18.69 million from $123.53 million on Mar. 31, 2016. Current ratio was at 2.14 as on Mar. 31, 2017, down from 2.51 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 30 days for the quarter from 87 days for the last year period. Days sales outstanding were almost stable at 2 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 54 days for the quarter compared with 111 days for the previous year period. At the same time, days payable outstanding was almost stable at 25 days for the quarter, when compared with the previous year period.
Debt comes down marginallyHaverty Furniture Companies has recorded a decline in total debt over the last one year. It stood at $55.63 million as on Mar. 31, 2017, down 1.14 percent or $0.64 million from $56.28 million on Mar. 31, 2016. Total debt was 12.21 percent of total assets as on Mar. 31, 2017, compared with 12.09 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.19 as on Mar. 31, 2017, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
