- -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000 OR [ ] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 1-14445 HAVERTY FURNITURE COMPANIES, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) MARYLAND 58-0281900 - ------------------------------- -------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 780 JOHNSON FERRY ROAD, SUITE 800, ATLANTA, GEORGIA 30342 - --------------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (404) 443-2900 - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ---- ---- The number of shares outstanding of the registrant's two classes of $1 par value common stock as of October 20, 2000 were: Common Stock - 15,986,366, Class A Common Stock - 4,755,414.
HAVERTY FURNITURE COMPANIES, INC. INDEX <TABLE> <CAPTION> PAGE NO. -------- <S> <C> Part I. Financial Information: Condensed Consolidated Balance Sheets - September 30, 2000 and December 31, 1999 1 Condensed Consolidated Statements of Income - Quarter and nine months ended September 30, 2000 and 1999 3 Condensed Consolidated Statements of Cash Flows - Nine months ended September 30, 2000 and 1999 5 Notes to Condensed Consolidated Financial Statements 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Quantitative and Qualitative Disclosure of Market Risk 13 Part II. Other Information 14 </TABLE>
PART 1. FINANCIAL INFORMATION - -------------------------------------------------------------------------------- HAVERTY FURNITURE COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) <TABLE> <CAPTION> September 30 December 31 2000 1999 --------------- --------------- <S> <C> <C> ASSETS Current Assets Cash and cash equivalents $ 1,951 $ 1,762 Accounts receivable 174,227 186,090 Less allowance for doubtful accounts ( 6,750) ( 7,000) --------------- --------------- 167,477 179,090 Inventories, at LIFO 106,184 84,447 Other current assets 6,717 6,379 --------------- --------------- Total Current Assets 282,329 271,678 Property and equipment 237,654 222,999 Less accumulated depreciation and amortization ( 101,538) ( 96,002) --------------- --------------- 136,116 126,997 Other assets 4,801 5,973 --------------- --------------- $ 423,246 $ 404,648 =============== =============== </TABLE> 1
HAVERTY FURNITURE COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Continued) <TABLE> <CAPTION> September 30 December 31 2000 1999 --------------- --------------- <S> <C> <C> LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Notes payable to banks $ -- $ 8,800 Accounts payable and accrued expenses 81,109 77,543 Current portion of long-term debt and capital lease obligations 11,164 12,091 --------------- --------------- Total Current Liabilities 92,273 98,434 Long-term debt and capital lease obligations, less current portion 156,125 134,687 Other liabilities 2,870 2,734 Stockholders' Equity Capital stock, par value $1 per share - - Preferred Stock, Authorized: 1,000 shares; Issued: None Common Stock, Authorized: 50,000 shares; Issued: 2000 - - 21,923 shares; 1999 - - 21,639 shares (including shares in treasury: 2000 and 1999 - - 5,939 and 4,810, respectively) 21,923 21,639 Convertible Class A Common Stock, Authorized: 15,000 shares; Issued: 2000 - - 5,278 shares; 1999 - - 5,303 shares (including shares in treasury: 2000 and 1999 - - 522) 5,278 5,303 Additional paid-in capital 33,335 32,004 Retained earnings 169,669 156,428 --------------- --------------- 230,205 215,374 Less cost of Common Stock and Convertible Class A Common Stock in treasury ( 58,227) ( 46,581) --------------- --------------- 171,978 168,793 --------------- --------------- $ 423,246 $ 404,648 =============== =============== </TABLE> See notes to condensed consolidated financial statements. 2
HAVERTY FURNITURE COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) <TABLE> <CAPTION> Quarter Ended Nine Months Ended September 30 September 30 ------------------------------- ------------------------------ 2000 1999 2000 1999 ------------- ------------- ------------- ------------- <S> <C> <C> <C> <C> Net sales $ 177,345 $ 157,875 $ 505,499 $ 449,895 Cost of goods sold 93,660 82,769 265,716 236,979 ------------- ------------- ------------- ------------- Gross profit 83,685 75,106 239,783 212,916 Credit service charges 3,105 3,643 9,669 11,457 ------------- ------------- ------------- ------------- Gross profit and other revenue 86,790 78,749 249,452 224,373 Expenses: Selling, general and administrative 71,600 63,697 207,125 183,589 Interest 2,888 2,797 8,813 8,820 Provision for doubtful accounts 789 1,008 2,610 3,208 Other (income) expense, net ( 103) 10 ( 69) ( 75) ------------ ------------- ------------ ------------ Total expenses 75,174 67,512 218,479 195,542 ------------- ------------- ------------- ------------- Income before income taxes and cumulative effect of a change in accounting principle 11,616 11,237 30,973 28,831 Income taxes 4,240 4,045 11,305 10,379 ------------- ------------- ------------- ------------- Income before cumulative effect of a change in accounting principle 7,376 7,192 19,668 18,452 Cumulative effect on prior years (to December 31, 1999) of changing to a different revenue recognition method -- -- ( 3,356) -- ------------- ------------- ------------- ------------- Net income $ 7,376 $ 7,192 $ 16,312 $ 18,452 ============= ============= ============= ============= </TABLE> 3
HAVERTY FURNITURE COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Continued) <TABLE> <CAPTION> Quarter Ended Nine Months Ended September 30 September 30 ------------------------------- ------------------------------ 2000 1999 2000 1999 ------------- ------------- ------------- ------------- <S> <C> <C> <C> <C> Weighted average common shares 20,632 22,258 20,806 22,313 Weighted average diluted common shares 21,075 23,182 21,244 23,098 Earnings per common share: Income before cumulative effect of a change in accounting principle $0.36 $0.32 $0.94 $0.83 Cumulative effect on prior years (to December 31, 1999) of changing to a different revenue recognition method -- -- ( 0.16) -- ============= ============= ============ ============= Net income $0.36 $0.32 $0.78 $0.83 ============= ============= ============ ============= Diluted earnings per common share: Income before cumulative effect of a change in accounting principle $0.35 $0.31 $0.93 $0.80 Cumulative effect on prior years (to December 31, 1999) of changing to a different revenue recognition method -- -- ( 0.16) -- ------------- ------------- ------------ ------------- Net income $0.35 $0.31 $0.77 $0.80 ============= ============ ============= ============= Cash dividends per common share: Common Stock $0.0500 $0.0500 $0.1500 $0.1400 Class A Common Stock $0.0475 $0.0475 $0.1425 $0.1325 </TABLE> See notes to condensed consolidated financial statements. 4
HAVERTY FURNITURE COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) <TABLE> <CAPTION> NINE MONTHS ENDED SEPTEMBER 30 ---------------------------------------------- 2000 1999 --------------- --------------- <S> <C> <C> Operating Activities Net income $ 16,312 $ 18,452 Adjustments to reconcile net income to net cash provided by operating activities: Cumulative effect of a change in accounting principle 3,356 -- Depreciation and amortization 11,818 11,011 Provision for doubtful accounts 2,610 3,208 Deferred income taxes 1,170 ( 206) Gain on sale of property and equipment ( 1,793) ( 14) --------------- --------------- Subtotal 33,473 32,451 Changes in operating assets and liabilities: Accounts receivable ( 1,636) 12,093 Inventories ( 11,164) ( 2,358) Other current assets ( 106) ( 832) Accounts payable and accrued expenses 2,425 20,555 Income taxes ( 2,726) 122 --------------- --------------- Net cash provided by operating activities 20,266 62,031 --------------- --------------- Investing Activities Purchases of property and equipment ( 23,743) ( 22,524) Proceeds from sale of property and equipment 4,599 215 Other investing activities 347 156 --------------- --------------- Net cash used in investing activities ( 18,797) ( 22,153) --------------- --------------- Financing Activities Net increase (decrease) in borrowings under revolving credit facilities 21,100 ( 17,500) Payment of long-term debt and capital lease obligations ( 9,389) ( 13,485) Purchase of treasury stock ( 11,646) ( 11,145) Exercise of stock options 1,590 4,101 Dividends paid ( 3,071) ( 3,087) Other financing activities 136 101 --------------- --------------- Net cash used in financing activities ( 1,280) ( 41,015) --------------- --------------- Increase (decrease) in cash and cash equivalents 189 (1,137) Cash and cash equivalents at beginning of period 1,762 1,874 --------------- --------------- Cash and cash equivalents at end of period $ 1,951 $ 737 =============== =============== </TABLE> See notes to condensed consolidated financial statements. 5
HAVERTY FURNITURE COMPANIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE A - BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and all such adjustments are of a normal recurring nature. Earnings per share and all shares outstanding have been restated to record the effect of the 2-for-1 stock split on August 25, 1999. NOTE B - CHANGE IN ACCOUNTING PRINCIPLE In December 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements. This bulletin provides guidance on revenue recognition matters and, in accordance therewith, the Company changed its method of recognizing sales effective January 1, 2000. Under the new method, revenue from merchandise sales is recognized upon delivery to the customer. Previously, the Company recognized revenue for sales of merchandise when certain criteria were met, such as receipt of full payment, credit approval for charge sales and merchandise in stock. These conditions were typically met at the point of sale. The Company changed its method of revenue recognition on January 1, 2000. Accordingly, it is impractical to determine income utilizing the billed method for 2000. Revenues recognized in the first quarter of 2000 that were included in undelivered sales at December 31, 1999, aggregated approximately $19,000,000. The cumulative effect of the accounting change decreased net income by $3,356,000 and was recorded in the three month period ended March 31, 2000. The pro forma amounts shown below have been adjusted assuming that the change in the revenue recognition method had occurred prior to January 1, 1999 (in thousands, except per share data): <TABLE> <CAPTION> Quarter Ended Nine Months Ended September 30 September 30 ------------------------ -------------------------- Proforma Proforma Proforma 2000 1999 2000 1999 ------------------------ ----------- ----------- <S> <C> <C> <C> <C> Net income $ 7,376 $ 6,885 $ 19,668 $ 17,254 Basic earnings per share $0.36 $0.31 $0.94 $0.77 Diluted earnings per share $0.35 $0.30 $0.93 $0.75 </TABLE> 6
HAVERTY FURNITURE COMPANIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) NOTE C - INTERIM LIFO CALCULATIONS An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must necessarily be based on management's estimates of expected year-end inventory levels and costs. Since these are affected by factors beyond management's control, interim results are subject to the final year-end LIFO inventory valuation. 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FORWARD-LOOKING INFORMATION Certain statements we make in this report, and other written or oral statements made by or on behalf of the Company, may constitute "forward-looking statements" within the meaning of the federal securities laws. Examples of such statements in this report include descriptions of our plans with respect to new store openings and relocations, our plans to enter new markets and expectations relating to our continuing growth. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and its present expectations or projections. Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. Such statements speak only as of the date they are made and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise. The following are some of the factors that could cause the Company's actual results to differ materially from the expected results described in the Company's forward-looking statements: the ability to maintain favorable arrangements and relationships with key suppliers (including domestic and international sourcing); conditions affecting the availability and affordability of retail real estate sites; the ability to attract, train and retain highly qualified associates to staff corporate positions, existing and new stores and distribution facilities; general economic and financial market conditions, which affect consumer confidence and the spending environment for big ticket items; competition in the retail furniture industry; changes in laws and regulations, including changes in accounting standards, tax statutes or regulations. CHANGE IN ACCOUNTING PRINCIPLE The Company changed its accounting method for recognizing revenues on January 1, 2000, and is now recording merchandise sales upon delivery to the customer. Historically, sales were recognized and "billed" prior to delivery when certain criteria were met, such as receipt of full payment, credit approval for charge sales and merchandise in stock. The change is consistent with new guidance on revenue recognition provided by the Securities and Exchange Commission Staff Accounting Bulletin No. 101 - Revenue Recognition in Financial Statements. The implementation of this change was accounted for as a change in accounting principle and applied cumulatively as if the change occurred at January 1, 2000. 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) The following table outlines the results for the third quarter and the nine months ended September 30, 2000, 1999, and 1999 pro forma results, assuming that the change in the revenue recognition method had occurred prior to January 1, 1999 (in thousands): <TABLE> <CAPTION> Quarter Ended Nine Months Ended September 30, September 30, ------------------------------------------ --------------------------------------- Pro forma Pro forma 2000 1999 1999 2000 1999 1999 ------------ ------------ ------------ ------------ ------------- ----------- <S> <C> <C> <C> <C> <C> <C> Net sales $ 177,345 $ 157,875 $ 156,181 $ 505,499 $ 449,895 $ 443,533 Cost of goods sold 93,660 82,769 81,843 265,716 236,979 233,501 ------------ ------------ ------------ ------------ ------------- ---------- Gross profit 83,685 75,106 74,338 239,783 212,916 210,032 Credit service charges 3,105 3,643 3,643 9,669 11,457 11,457 ------------ ------------ ------------ ------------ ------------- ---------- Gross profit and other revenue 86,790 78,749 77,981 249,452 224,373 221,489 Expenses: Selling, general and administrative 71,600 63,697 63,409 207,125 183,589 182,577 Interest 2,888 2,797 2,797 8,813 8,820 8,820 Provision for doubtful accounts 789 1,008 1,008 2,610 3,208 3,208 Other (income) expense, net (103) 10 10 (69) (75) (75) ------------ ------------ ------------ ------------ ------------- ---------- Total expenses 75,174 67,512 67,224 218,479 195,542 194,530 ------------ ------------ ------------ ------------ ------------- ---------- Income before income taxes and cumulative effect of a change in accounting principle 11,616 11,237 10,757 30,973 28,831 26,959 Income taxes 4,240 4,045 3,872 11,305 10,379 9,705 ------------ ------------ ------------ ------------ ------------- ----------- Income before cumulative effect of a change in accounting principle 7,376 7,192 6,885 19,668 18,452 17,254 Cumulative effect on prior years (to December 31, 1999) of changing to a different revenue recognition method -- -- -- (3,356) -- -- ------------ ------------ ------------ ------------ ------------- ----------- Net income $ 7,376 $ 7,192 $ 6,885 $ 16,312 $ 18,452 $ 17,254 ============ ============ ============ ============ ============= =========== </TABLE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) RESULTS OF OPERATIONS Net sales for the third quarter and nine months ended September 30, 2000, increased 13.6% and 14.0% over the pro forma sales for the same periods for 1999, respectively. It is not practical for the Company to compute comparable-store sales utilizing the new delivered basis of revenue recognition. Calculated on the billed basis, comparable-store sales increased 10.1% and 9.7% for the third quarter and nine month period, respectively. The Company's two largest markets, Dallas and Atlanta, and its Florida and Texas regions continued to experience the strongest comparable-store sales increases. A store's results are included in the comparable-store sales computation beginning with the one-year anniversary of its opening, expansion, or the date when it was otherwise non-comparable. Management believes that the sales increases are attributable to the economic strength of its target customer, the Company's focus on brand name products and effective merchandising in its stores. Gross profit, as a percent of net sales, decreased to 47.2% for the third quarter of 2000 from 47.6%, the pro forma amount in the 1999 period, and was unchanged at 47.4% for the nine months ended September 30, 2000 and 1999 on a pro forma basis. Gross profit was impacted by product mix changes and an increase in the Company's LIFO reserve. The LIFO charge increased as a percent of sales to .18% for the third quarter and .09% for the nine months ended September 30, 2000, as compared to the pro forma amounts of .06% and .04% in the prior year periods, respectively. Management anticipates that margins for the fourth quarter will improve somewhat from the third quarter level in the typically stronger last quarter of the year. Third quarter credit service charge revenues decreased to 1.8% of net sales from 2.3% on a pro forma basis in the prior year period and decreased to 1.9% from 2.6% for the nine months ended September 30, 2000 and 1999, respectively. This reduction is due to a lower average outstanding accounts receivable portfolio and a shift toward more consumer usage of the "12 month no interest with 12 equal payments" promotion rather than deferred-payment promotions. Selling, general and administrative expenses, as a percent of net sales, decreased to 40.4% from 40.6% for the third quarter and to 41.0% from 41.2% for the nine months ended September 30, 2000, as compared to the prior year periods on a pro forma basis. Continued leveraging of fixed costs, particularly administrative and occupancy costs, have contributed to these improvements. These gains were partially offset by increases in advertising, warehouse, and delivery costs as labor and fuel costs remained higher than the prior periods and as the Company focuses on shortening the delivery cycle to the customer. Interest expense decreased as a percent of net sales, to 1.6% from 1.8% and to 1.7% from 2.0%, for the quarter and nine months September 30, 2000 and 1999 on a pro forma basis, respectively. The Company's effective interest rate was relatively unchanged at 7.2% for the third quarter and nine-month period with an increase in average debt levels of 12.6% for the third quarter and 1.2% for the nine-month period, respectively, from the year-earlier periods. The provision for doubtful accounts, as a percentage of net sales, decreased to 0.4% from 0.6% and to 0.5% from 0.7% for the third quarter and nine months ended September 30, 2000 and 1999 on a pro forma basis, respectively. This reduction reflects the continuing trend of decreased delinquencies and customer bankruptcies experienced by the Company over the last two years. Management does not expect any significant changes in the current consumer credit environment with respect to its target customers for the remainder of 2000. 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Diluted earnings per share before the cumulative effect of an accounting change were $0.35 and $0.30 pro forma for the third quarter and $0.93 and $0.75 pro forma for the nine months ended September 30, 2000 and 1999, respectively, on approximately 2.1 million fewer and 1.9 million fewer weighted average diluted shares outstanding, respectively. LIQUIDITY AND SOURCES OF CAPITAL The Company has historically used internally generated funds, bank borrowings and private placements with institutions to finance its continuing operations and growth. Net cash provided by operating activities was $20.3 million during the first nine months of 2000. Inventory increased $12.7 million during the first quarter (not including the increase resulting from the cumulative effect of the accounting change) and an additional $1.1 million during the second quarter. These inventory increases were higher than management's expectations and inventory levels were reviewed in those markets which exceeded their targeted inventory levels. Inventory decreased $2.7 million during the third quarter and management expects that inventory in existing locations may continue to decrease slightly by the end of the historically stronger fourth quarter. Offsetting this decrease will be the showroom inventories added for four stores opening near the end of the year. Investing activities used $18.8 million of cash during the nine months ended September 30, 2000. Capital expenditures during the period were $23.7 million for new store construction and renovation, some of which will be completed later in the year and into 2001 as well as leasehold improvements, equipment and furniture and fixtures associated with the Company's relocation of its corporate offices. Financing activities used $1.3 million of cash during the nine months ended September 30, 2000. Borrowings under the Company's revolving credit facilities increased $21.1 million. Financing activities also included the use of $11.6 million for the stock repurchase program. In addition to cash flow from operations, the Company uses bank lines of credit on an interim basis to finance capital expenditures and repay long-term debt. Longer-term transactions such as private placements of senior notes, sale/leasebacks and mortgage financings are used periodically to reduce short-term borrowings and manage interest-rate risk. The Company pursues a diversified approach to its financing requirements and balances its overall capital structure, as determined by the interest rate environment, with fixed-rate debt and interest rate swap agreements to reduce the impact of changes in interest rates on its variable rate debt (61.5% of total debt was fixed or interest rate protected as of September 30, 2000). The Company's average effective interest rate on all borrowings (excluding capital leases) was 7.0% at September 30, 2000. Capital expenditures for the remainder of 2000 are presently expected to include the construction of two new store locations in existing markets, improvements to two new leased store locations and the expansion and remodeling of one existing store. The estimate of capital expenditures for the fourth quarter of 2000 is approximately $15 million, which also includes a portion of the construction costs for two new stores which will open in the first half of 2001 and the purchase of land for a future store site. Funds available from operations, bank lines of credit and other possible financing transactions are expected to be adequate to finance the Company's planned expenditures. 11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) SEASONALITY Although the Company does not consider its business to be seasonal, sales are somewhat higher in the second half of the year, particularly in the fourth quarter. IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS In June 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities" (FAS 133), as amended by FAS 137 and FAS 138. Management will adopt the new requirements effective January 1, 2001. The Statement will require the Company to recognize its derivatives on the balance sheet at fair value. Management has assessed its derivatives and believes that the implementation of FAS 133 will not have a material impact on the Company's earnings and financial position. 12
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE OF MARKET RISK During the second quarter, the Company terminated four interest rate swap agreements, entered into a new agreement, and one agreement matured. At September 30, 2000, the Company had two outstanding agreements, having notional amounts of $30,000,000 and $10,000,000, at rates of 5.57% maturing in 2003 and 5.74% maturing in 2000, respectively. Under the agreements, the Company makes payments at fixed rates and receives payments at variable rates which are based on LIBOR, adjusted quarterly. 13
PART II. OTHER INFORMATION Item 5. OTHER INFORMATION As stated in the Company's 2000 Proxy Statement, proposals by stockholders intended to be presented at the 2001 Annual Meeting must be received at the office of the Company no later than November 21, 2000, for inclusion in the Company's Proxy Statement for the 2001 Annual Meeting. In connection with the Company's Annual Meeting of Shareholders to be held in 2001, if the Company does not receive notice of a matter or proposal to be considered by February 5, 2001, then the persons appointed by the Board of Directors to act as the proxies for such Annual Meeting (named in the form of proxy) will be allowed to use their discretionary voting authority with respect to any such matter or proposal at the Annual Meeting, if such matter or proposal is raised at the Annual Meeting. Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits filed with this report. 27 -- Financial Data Schedule. (b) Reports on Form 8-K. None. 14
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the Undersigned thereunto duly authorized. HAVERTY FURNITURE COMPANIES, INC. (Registrant) Date OCTOBER 24, 2000 By: /s/ DENNIS L. FINK ------------------ ----------------------------------------- Dennis L. Fink, Executive Vice President and Chief Financial Officer (principal financial officer) By: /s/ DAN C. BRYANT ----------------------------------------- Dan C. Bryant, Vice President and Controller (principal accounting officer) By: /s/ JENNY H. PARKER ----------------------------------------- Jenny H. Parker, Vice President, Secretary and Treasurer 15