Revenue during the quarter went up marginally by 0.84 percent to $211.69 million from $209.92 million in the previous year period. Gross margin for the quarter expanded 49 basis points over the previous year period to 53.75 percent. Total expenses were 94.01 percent of quarterly revenues, up from 93.80 percent for the same period last year. That has resulted in a contraction of 21 basis points in operating margin to 5.99 percent.

Clarence H. Smith, chairman, president and chief executive officer, said, "Our third quarter earnings were flat with the prior year as modest sales increases and improved gross margins were offset by expanded operating costs. Sales gains were made across most product categories and our average ticket grew 3.2%. Our efforts to control fixed costs continue but were negatively impacted by rising health care benefit expenses which were $1 million higher in the third quarter compared to the prior year. As expected, opening and ongoing additional overhead expenses were incurred for two new stores and expansion of our Florida Distribution Center. Operating inventory levels have been trimmed as our supply chain team works closely with vendor partners and refines product flow and forecasts. We increased the quarterly cash dividend 20% to our common stockholders and year to date have made $21.3 million in stock repurchases and are confident of our ability to generate sufficient cash to grow our business and stockholder value."

The company has spent $10.98 million cash to meet investing activities during the nine month period as against cash outgo of $19.99 million in the last year period. It has incurred net capital expenditure of $25.29 million on net basis during the nine month period, up 12.46 percent or $2.80 million from year ago period.

The company has spent $31.34 million cash to carry out financing activities during the nine month period as against cash outgo of $18.04 million in the last year period.

Cash and cash equivalents stood at $75.57 million as on Sep. 30, 2016, up 3.11 percent or $2.28 million from $73.29 million on Sep. 30, 2015.

Working capital decreases marginally
Haverty Furniture Companies Inc. has witnessed a decline in the working capital over the last year. It stood at $106.26 million as at Sep. 30, 2016, down 4.74 percent or $5.29 million from $111.55 million on Sep. 30, 2015. Current ratio was at 2.10 as on Sep. 30, 2016, up from 2.09 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 26 days for the quarter from 82 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 47 days for the quarter compared with 102 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.