Haverty Furniture CEO: Balance sheet, budget goals top 2008 priorities

Haverty Furniture Companies, Inc. (NYSE: HVT) CEO Clarence Smith said the furniture retailer’s top priority for 2008 is maintaining a strong balance sheet and hitting budgeted goals. Smith made the comments during a morning conference call.

“In this difficult economy, we know that cash is king,” Smith said. “We’re very strong financially.”

At the end of 2007, Haverty’s liabilities totaled $92.9 million, from $122.4 million at the end of 2006.

He said the Atlanta, Ga.-based firm plans to open new locations and close some old locations as leases expire or the local market deteriorates. Haverty also plans to continue paying its regular dividend to stockholders, Smith said.

The chief executive also said Haverty is working on its customer service levels, which he believes gives the company an edge over competition and will lead to additional sales.

Before the opening, Haverty posted fourth-quarter earnings of $1.6 million, or $0.07 per share, down 50% from $3.2 million, or $0.14 per share, a year earlier.

Quarterly sales totaled $205.8 million, down 4.7% from $216 million during the year-ago period. Wall Street analysts projected $205.8 million in revenue.

Total expenses declined to $102.3 million for the three months ended Dec. 31, from $103.7 million in the year-ago quarter.

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