 ATLANTA, Aug. 10, 2020 GLOBE NEWSWIRE -- HAVERTYS NYSE: HVT and HVT.A reported today its operating results for the 2020 second quarter ended June 30, 2020. Financial HighlightsQuarter ended June 30, 2020 Compared to Same Period of 2019 EPS of 0.72 per share in 2020 compared to 0.29 in 2019. Adjusted EPS of 0.52 in 2020 excludes 1.24 for gain on sale-leaseback. As previously reported, sales were 110.0 million for 2020 compared with 191.9 million for 2019.Clarence H. Smith, chairman, president and CEO, said, The second quarter was like no other in our countrys or Havertys history, but optimism for our future and the opportunities for growth endure. We reopened our stores in May with team members ready to serve customers eager to refresh their homes. Our written business for the last two months of the quarter was up 13.9 and written comparable store business was up 17.5 compared to the same periods in 2019. Our customers want their homes to reflect their style and be a comfortable, happy place. Our wide merchandise selection, custom options, and free design service assists them in that endeavor.We are analyzing our personnel needs and are currently challenged to accelerate staffing and increase our delivery capacity. Many of our vendor partners are also facing workforce issues as they restart their operations and seek to meet product demand. Our inventory position in certain products could be stressed during the coming months as availability lags demand.Given the sustained pace of our business since reopening and our liquidity position, the board approved important shareholder actions related to dividends and the stock repurchase program. The per share dividend for the third quarter was increased 25, restoring it to the first quarters amount, and the resumption of the stock repurchase program was approved. The board will continue to evaluate returning value to stockholders given the ongoing uncertainty caused by COVID-19. The opening of our new store in the DallasFt. Worth, TX market is on schedule for late August and as previously planned, we closed a store in that market in July. We have also set a new opening date in the first quarter of 2021 for entering the Myrtle Beach, SC market. Our expected capital expenditures for 2020 are 9.2 million as we invest in stores and technology.The commitment of our team members and strong balance sheet give us the flexibility to shift our focus and resources to meet changing circumstances, benefit from new opportunities, and capitalize on our competitive advantages.Financial SummaryQuarter ended June 30, 2020 Compared to Same Period of 2019 Stores were closed March 19 and 103 stores reopened on May 1 and the remaining 17 by June 20. Deliveries were halted on March 21 and restarted on May 5 with less capacity. Gross profit margins increased 20 basis points to 54.2 from 54.0. SGA expenses reflect the closure of our stores in April and the measures taken as part of our business continuity plan. Reduction in salaries and wages of 9.9 million associated with 3,033 furloughed team members for the month of April 2020. Severance costs of 1.7 million for approximately 35 reduction in workforce effective April 30, 2020. Reduction in advertising spend of 3.5 million in 2020. As previously reported, completed a sale-leaseback transaction of three warehouse facilities in May. This transaction generated 69.5 million in net proceeds and a gain of 31.6 million. Repayment of 43.8 million of borrowings under credit facility. No amounts outstanding at June 30, 2020. Reinstatement of salaries, 401k benefits, and vendor terms. We are not providing guidance on our gross margin and SGA expense expectations for the remainder of 2020 at this time given the uncertainty caused by the pandemic. Dividends and Stock Repurchase ProgramThe company also reported today that, on August 7, 2020, its board of directors declared a cash dividend to be paid on the outstanding shares of the companys two classes of common stock at a rate of 0.20 per share on the common stock and 0.19 per share on the Class A common stock. This restores the rates to the amounts declared prior to the store closures. The dividend is payable on Wednesday, September 9, 2020, to stockholders of record at the close of business on Monday, August 24, 2020. Havertys has paid a cash dividend in each year since 1935.The board also approved resumption of the companys stock repurchase program which was halted in March. The balance of the current authorization for repurchases is approximately 29.7 million. Shares may be repurchased, at the companys discretion, from time-to-time in the open market or in privately negotiated transactions. HAVERTY FURNITURE COMPANIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME in thousands, except per share data Unaudited Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net sales 109,968 191,893 289,400 379,134 Cost of goods sold 50,322 88,336 130,201 172,494 Gross profit 59,646 103,557 159,199 206,640 Credit service charges 19 19 38 41 Gross profit and other revenue 59,665 103,576 159,237 206,681 Expenses: Selling, general and administrative 72,649 95,784 170,184 194,663 Provision for doubtful accounts 3 20 36 23 Other income expense, net 31,812 126 31,895 280 Total expenses 40,840 95,678 138,325 194,406 Income before interest and income taxes 18,825 7,898 20,912 12,275 Interest income expense, net 200 339 13 688 Income before income taxes 18,625 8,237 20,925 12,963 Income tax expense 4,985 2,191 5,466 3,295 Net income 13,640 6,046 15,459 9,668 Diluted earnings per share: Common Stock 0.72 0.29 0.81 0.47 Class A Common Stock 0.69 0.27 0.78 0.44 Diluted weighted average shares outstanding: Common Stock 18,985 20,542 19,126 20,723 Class A Common Stock 1,532 1,621 1,532 1,689 Cash dividends per share: Common Stock 0.15 0.18 0.35 0.36 Class A Common Stock 0.14 0.17 0.33 0.34 HAVERTY FURNITURE COMPANIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS in thousands - Unaudited June 30, 2020 December 31, 2019 June 30, 2019 Unaudited Unaudited ASSETS Current assets Cash and cash equivalents 151,055 75,739 56,094 Restricted cash and cash equivalents 6,709 6,663 6,591 Accounts receivable, net 1,141 1,527 1,578 Inventories 104,840 104,817 109,213 Prepaid expenses 10,302 7,652 9,876 Other current assets 8,960 8,125 10,489 Total current assets 283,007 204,523 193,841 Accounts receivable, long-term, net 128 195 221 Property and equipment, net 112,253 156,534 157,551 Right of-use lease assets 234,046 175,474 187,178 Deferred income taxes 11,640 13,198 12,175 Other assets 10,035 10,148 9,810 Total assets 651,109 560,072 560,776 LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities Accounts payable 22,803 27,830 20,910 Customer deposits 57,538 30,121 29,098 Accrued liabilities 45,733 39,654 33,318 Current lease liabilities 31,289 29,411 28,768 Total current liabilities 157,363 127,016 112,094 Noncurrent lease liabilities 206,918 149,594 158,782 Other liabilities 22,450 22,959 22,640 Total liabilities 386,731 299,569 293,516 Stockholders equity 264,378 260,503 267,260 Total liabilities and stockholders equity 651,109 560,072 560,776 HAVERTY FURNITURE COMPANIES, INC. 