2013-12-31 annual report to stockholders

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UPHOLSTERY 38.2%

MATTRESS 11.5%

ACCESSORIES & OTHER 9.2%

BEDROOM 19.4%

DINING

10.7%

OCCASIONAL 11.0%

2012 REVENUES BY CATEGORY

Havertys is a prominent full-service home furnishings retailer with over 100 showrooms in over 80 cities across 16 states in the Southern and Midwestern regions. Founded in 1885, Havertys is a true retailing institution. The Company provides its customers with a wide selection of quality merchandise in primarily middle to upper-middle price ranges. Haverty Furniture Companies, Inc. has been a publicly held company since 1929. The Company’s two classes of stock are traded on the New York Stock Exchange under the symbols HVT and HVT.A.

Corporate profile

I am very pleased to report that your company had a record setting year in 2013. We worked hard during the recession to more fully understand our target customer, and position Havertys for the opportunities that would return with more favorable economic conditions. We saw the beginnings of that recovery in 2010 and redoubled our efforts for enhancing the customers’ perception of Havertys, optimizing the customer experience, and strengthening operations. We are gratified by the results and excited about our current initiatives.

Our comparable store sales increased 11.0% over 2012 driven by a 7.8% increase in the average sales ticket. We continued to expand gross profit margins as the merchandise mix price points trended slightly higher and retail pricing discipline tightened. These increases provided significant leverage against well-controlled expenses, generating 2013 net income double that of 2012. Cash generated from operations continued to be strong, and in August the board increased the quarterly dividend twofold.

Our advertising efforts, using traditional media of television and direct mail combined with digital marketing display ads and social media, are reaching our customer more effectively and are attracting both younger and more fashion oriented women. We use our marketing and advertising to increase consumer awareness of our brand, engaging her early in the “inspiration” stage to increase conversion odds and build loyalty after the purchase. The discover something you® campaign, which is almost two years old and will continue this year, successfully communicates that she can have what she wants at Havertys.

Havertys' exclusive merchandise offerings are well balanced as to style and price, and are selected to speak to the “on trend” customer. The decisions made by our experienced team on product mix steer the management of showroom floor space. We are able to provide varying selections across our diverse markets, furnishing suburban homes to urban lofts with southern charm, western flair, coastal ease, or composed contemporary, something few regional or national furniture retailers can successfully accomplish. Upholstery led the product categories in sales generating 38.8% of 2013 revenue. Our custom order upholstery business continued to be a very successful part of that category for us during 2013, increasing 20% on top of an 18% increase in 2012. The suppliers of the custom order products are working closely with us to shorten lead times from 6 to only 4 weeks from order to customer delivery, further separating Havertys from other retailers.

The increase in upholstery has created larger demand in occasional tables and we have also had stronger sales in the dining category, particularly in the premium casual segment. We import substantially all of our case goods and have excellent relationships with the strongest suppliers in Asia, enabling us to provide top designs and values to support our brand. Our blended sourcing strategies, which many of our competitors can not emulate, are integral to our mix of quality products yielding favorable gross profit margins.

The “Bright Inspirations” program began in 2010 and continues with refinements in both process and results. During 2013 we finished the upgrading and remodeling of 21 additional stores, have another 13 slated for 2014 and by the end of 2015 our store portfolio will be 97% new or transformed. This program is part of a holistic approach to improve the touch points inside the store that create a positive customer experience and in total we will invest an estimated $41.1 million in capital expenditures. Although temporarily disruptive to store operations it is an essential element in elevating and separating the Havertys brand from our competitors.

Dear fellow stockholders,

2013 Financial highlights

Brand building and outlook

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46.7%

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SG&A % of net sales

In 2014 we will begin a growth and repositioning program of our stores to better serve and reach our target customers. This year we are planning to open three new stores in our largest markets. One of the new stores will be a slightly smaller format in a more dense urban area. We also plan to relocate three stores and close two stores based on performance evaluations. This will result in approximately 1.8% growth in retail square footage. Cash generated from operations should cover the expected $35 million in 2014 capital expenditures. We are reviewing prospects for five new stores that would open in 2015 in markets we currently do not serve but can reach with our existing distribution network.

We continued to gain efficiencies in our operations and to better serve our customers through our investments in technology during 2013. The additional capacity to our internal cloud architecture supports our increased use of video communications and tools for sales associates. This year we will be adding several major enhancements to our in-store and website digital applications to help the customer turn her inspiration into reality. The addition of an easy to use 3D room planner will help us better reach and connect with them early in their creative plans and shopping process. We are also upgrading our fabric mapping program to provide her a better picture of her custom order selection. When these programs are in place we believe our website will be the most engaging and interactive web site of any furniture retailer in our space.

the power of self expression

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2013

The marketing, merchandise, stores, and on-line tools are framed to create a positive and expectant feeling surrounding shopping at Havertys. This makes it critical for the “face” of Havertys, the sales associate, to further nurture and build on the excitement our customers feel about bringing new furnishings into their home. Our sales teams are the most important element of the customer experience, and armed with the tools we provide, have the mission to engage every customer to meet her needs. Complimentary in-home design assistance is a natural extension of that mission and provides a service not generally offered to customers in our price category. Our sales teams and designers work together to clearly demonstrate interest in collaborating with the customer to fulfill a desire to bring to life her vision for home.

All of our teams have been challenged to strive for excellence in execution, to not only improve what we do, but seek ways to innovate. This is reflected in the work noted above and from our distribution and supply chain that oversaw 8,100 containers of product from Asia, Havertys Top Drawer Delivery teams that drove more than 5.3 million miles, our customer service or “voice” of Havertys answering over 375,000 customer calls, and the corporate support teams. I am very proud of the excellent work that was done throughout the Havertys organization in 2013 by our nearly 3,300 dedicated and talented associates.

We are very pleased by the results of this past year, yet Havertys must continue to adapt to enhance the furniture purchase experience. How we reach, connect, inspire, serve, and meet our customers where they choose to engage will influence us going forward. We are committed to creating value for our stockholders and believe our focus on the customer experience, the Havertys brand, operational strength, and measured expansion will continue to generate new records and profits. We thank you for your investment and support as we move forward towards 2015 – our 130th anniversary.

20112012

2013

Clarence H. SmithChairman, President and CEO

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%

dining11%

11%

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WE ARE H DESIGN. A COLLECTIVE OF DESIGNERS, DREAMERS & INTERIOR SPECIALISTS. TOGETHER, WE SHARE A VISION FOR A PLACE CALLED HOME.

Bright Inspiration store refreshes recycled over 52,000 square yards or nearly 243,000 pounds of carpet. Our distribution centers recycling kept over 6,200 tons out of our communities' landfills.

HVterra

UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

HAVERTY FURNITURE COMPANIES, INC. Maryland 58-0281900

780 Johnson Ferry Road, Suite 800, Atlanta, Georgia 30342

(404) 443-2900

Title of each Class Name of each exchange on which registered

No

Yes No

Yes No

Yes No

Yes No

DOCUMENTS INCORPORATED BY REFERENCE

PART I

I 269999

PART II

1012132222232324

PART III

2525

262626

PART IV

26

HAVERTY FURNITURE COMPANIES, INC.ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2013

2013 Annual Report1

FORWARD-LOOKING STATEMENTS

Haverty Furniture Companies, Inc. 2

PART I

ITEM 1. BUSINESS

Overview

Merchandise and Revenues

Year ended December 31, 2013 2012 2011

Case Goods18.3% 19.4% 19.7 %

11.1 10.7 11.011.0 11.0 11.7

40.4 41.1 42.438.8 38.2 36.6

Mattresses 10.8 11.5 11.9(1) 9.9 9.2 9.0

0.1 0.0 0.1100.0% 100.0% 100.0%

(1)

Year ended December 31, 2013 2012 2011

9.5% 9.3% 10.9%54.7 54.2 53.832.2 31.9 30.1

3.6 4.6 5.2

100.0% 100.0% 100.0%

2013 Annual Report3

Stores

2014. Internet and Social Media

Suppliers


Supply Chain and Distribution

2013 Annual Report5

Competition

Employees

Trademarks and Domain Names

Governmental Regulation


Available Information

Filings with the SEC

ITEM 1A. RISK FACTORS

Changes in economic conditions could adversely affect demand for our products.

regional and local retailers of home furnishings.

If we fail to anticipate changes in consumer preferences, our sales may decline.

2013 Annual Report

We import a substantial portion of our merchandise from foreign sources. Changes in exchange rates or tariffs could impact the price we pay for these goods, resulting in potentially

these goods.

or

of raw materials and components could

We are dependent upon the ability of our third-party producers, many of whom are located in foreign countries, to meet our requirements; any failures by these producers to meet our requirements, or the unavailability of suitable producers at reasonable prices may negatively impact our ability to deliver quality products to our customers on a timely basis or result in higher costs or reduced net sales.

Haverty Furniture Companies, Inc.

The effects of new regulations relating to

business.

Our revenue could be adversely affected by a disruption in our supply chain.

The rise of oil and gasoline prices could affect

Because of our limited number of distribution centers, should one become damaged, our operat-ing results could suffer.

Our information technology infrastructure is vulner-able to damage that could harm our business.

We may incur costs resulting from security risks we face in connection with our electronic processing

information.

2013 Annual Report

ITEM 1B. UNRESOLVED STAFF COMMENTS

ITEM 2. PROPERTIES

Stores

Distribution Facilities

Corporate Facilities

ITEM 3. LEGAL PROCEEDINGS

ITEM 4. MINE SAFETY DISCLOSURES

Owned or Leased

Approximate Square Footage

Leased 808,000

Owned 238,000

Owned 226,000

Owned 129,000

Leased 50,000

Leased 42,000

Location

Leased 30,000

Number of Stores State

Number of Stores

28 4

22 4

16 3

8 2

7 Ohio 2

7 Indiana 1

7 1

State

Georgia

Tennessee 6 1


ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Stockholders

Dividends

Equity Compensation Plans

PART II

2013

Common Stock Class A Common Stock

Quarter Ended High LowDividendDeclared High Low

DividendDeclared

$ 21.00 $ 16.16 $ 0.04 $ 20.83 $ 16.31 $ 0.0375

25.76 19.88 0.04 25.57 20.17 0.0375

27.85 21.76 0.08 27.51 21.93 0.0750

31.67 23.95 0.08 31.58 24.00 0.0750

2012

Common Stock Class A Common Stock

Quarter Ended High LowDividendDeclared High Low

DividendDeclared

$ 13.00 $ 10.80 $ — $ 12.90 $ 10.40 $ —

12.97 10.39 0.04 12.90 10.50 0.0375

14.31 10.77 0.04 14.05 11.00 0.0375

17.62 13.52 1.04(1) 17.25 13.77 0.9875(1)

2013 Annual Report11

Stock Performance Graph

2008 2009 2010 2011 2012 2013

$100.00 $147.40 $140.64 $120.24 $191.32 $370.75

$100.00 $143.16 $135.90 $ 117.35 $186.26 $359.97

$100.00 $125.57 $158.60 $160.22 $186.37 $263.37

SIC $100.00 $141.47 $147.68 $134.74 $114.28 $213.17

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

2009 2010 2011 2012 2013


ITEM 6. SELECTED FINANCIAL DATA

Year ended December 31,

(Dollars in thousands, except per share data) 2013 2012 2011 2010 2009

Results of Operations$ 746,090 $ 670,073 $ 620,903 $ 620,331 $ 588,264

Net sales change over prior year 11.3% 7.9% 0.1% 5.5% (14.9)% Comp-store sales change over prior year 11.0% 6.8% 0.3% 7.0% (14.2)%

401,496 352,035 320,716 318,767 305,498 Percent of net sales 53.8% 52.5% 51.7% 51.4% 51.9 %

348,599 328,826 315,865 311,897 310,523 Percent of net sales 46.7% 49.1% 50.9% 50.3% 52.8%

52,487 23,516 4,603 8,673 (5,408)(1) 32,265 14,911 15,463 8,444 (4,179)

Share Data

$ 1.41 $ 0.67 $ 0.70 $ 0.38 $ (0.20)1.35 0.59 0.67 0.36 (0.19)

(2) 0.240 1.12 0.1200 0.100 0.0225(2) 0.225 1.06 0.1125 0.095 0.0200

20,122 19,471 18,829 18,512 17,5192,393 2,775 3,120 3,331 3,908

T 22,515 22,246 21,949 21,843 21,427Financial Position

$ 91,483 $ 96,902 $ 93,713 $ 91,938 $ 93,301$ 20,202 $ 25,014 $ 17,566 $ 14,053 $ 3,259

21,450 19,415 18,242 16,859 19,346189,242 193,085 179,333 175,511 176,363

$ 417,855 $ 402,096 $ 385,100 $ 370,239 $ 360,933(3) 17,155 19,354 13,046 9,099 7,183

298,264 259,428 262,669 253,182 244,5575.4% 6.9% 4.7% 3.5% 2.9%

1,107 624 737 815 80555,889 52,168 19,072 24,201 38,495

Other Supplemental Data:3,266 3,250 3,050 3,100 3,0004,259 4,353 4,246 4,230 4,278

119 122 119 118 121$ 176 $ 158 $ 148 $ 148 $ 139

2012.


Overview

Industry

Our Business

2013 Highlights

Management Objectives

Key Performance Indicators

Operating Results

Percentage of Net Sales 2013 2012 2011100.0% 100.0% 100.0%

46.2 47.5 48.3

53.8 52.5 51.7

46.7 49.1 50.9

I 7.0 3.5 0.7

4.3 2.2 2.5

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Net Sales

2014 Outlook

December 31,2013 2012 2011

Net SalesComp-Store

Sales Net SalesComp-Store

Sales Net SalesComp-Store

Sales

Period Ended

inD

inD

in

Q1 $186.1 13.8% 11.5% $163.6 6.1% 5.7% $154.2 (1.2)% (0.6)%

Q2 171.1 12.9 11.2 151.5 5.9 5.6 143.1 (1.4) (1.4)

Q3 192.7 11.6 11.8 172.7 11.1 10.0 155.4 (1.1) (0.6)

Q4 196.2 7.6 9.5 182.3 8.4 6.0 168.3 3.8 3.5

Year $746.1 11.3% 11.0% $670.1 7.9% 6.8% $620.9 0.1% 0.3%


Year-to-Year Comparisons

2014 Outlook

2013.

Selling, General and Administrative Expenses

Year-to-Year Comparisons


2014 Outlook

Provision for Income Taxes

Liquidity and Capital Resources

Overview of Liquidity

Capital Expenditures

2013 Annual Report

Store Expansion and Capital Expenditures

Analysis of Cash Flows

Cash ows from operating activities Cash ows used in investing activities

Cash ows used in nancing activities

Year Ended December 31, 2013 2012 2011

$ 55,889 $ 52,168 $ 19,072

$(20,202) $ (25,014) $ (17,566)

$ 35,687 $ 27,154 $ 1,506

$(20,120) $ (24,766) $ (24,222)

$ (6,134) $ (23,437) $ (3,310)


Payments Due or Expected by Period

TotalLess Than

1 Year1-3

Years3-5

YearsAfter 5Years

L (1) $ 24,002 $ 1,938 $ 4,254 $ 4,440 $ 13,370

O 228,108 31,296 60,135 51,873 84,804

P 83,707 83,707 — — —

Total contractual obligations(2) $ 335,817 $ 116,941 $ 64,389 $ 56,313 $ 98,174

2013 2012 2011

Store Activity: # of Stores Square Footage # of Stores Square Footage # of Stores Square Footage

— — 4 139 3 101

3 103 1 32 2 84

Year end balances 119 4,259 122 4,353 119 4,246

Contractual Obligations

Store Expansion and Capital Expenditures

Long-Term Debt

Off-Balance Sheet Arrangements


LocationOpeningQuarter Category

(Approximate in thousands)Proposed

2014 2013 2012 2011

(1) $ 15,000 $ 100 $ 9,500 $ 7,800

7,000 11,200 5,500 4,900

5,000 3,900 4,600 2,300

27,000 15,200 19,600 15,000

3,500 2,300 1,600 200

4,500 2,700 3,800 2,400

Total $ 35,000 $ 20,200 $ 25,000 $ 17,600

(1)

Critical Accounting Estimates and Assumptions


Pension and etirement bene ts Pension and

Self-Insurance

(Approximate in thousands) 2013 2012


Stoc -based compensation

aluation Allowance of Deferred Tax Assets


Index Page

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9A. CONTROLS AND PROCEDURES

(a) Disclosure Controls and Procedures

(b) Management s Annual eport on Internal Control over Financial eporting

Internal Control – Integrated Framework i

Attestation eport of the Independent egistered Public Accounting Firm

(c) Changes in Internal Control over Financial eporting


Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting

ITEM 9B. OTHER INFORMATION


ITEM 11. EXECUTIVE COMPENSATION

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Name Position with the Company Age

Date assumed an

Position

635253

61606252

5552 2005

awson averty, r and Clarence Smith are rst cousins


PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) (1) Financial Statements.

(2) Financial Statement Schedule.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Th

Fo

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

2013 Annual Report

Exhibit No. Exhibit

3.1

3.2

10.1

10.2

+10.3

+10.4

*+10.5

+10.6

(3) Exhibits:


Exhibit No. Exhibit

+10.9

10.10

10.11

10.12

*10.13

+10.14

+10.15

+10.16

+10.19

*21

*23.1

*31.1

*31.2

*32.1


SIGNATURES

HAVERTY FURNITURE COMPANIES, INC./S/ CLARENCE H. SMITH

/S/ JOHN T. GLOVER /S/ VICKI R. PALMER

/S/ RAWSON HAVERTY, JR. /S/ FRED L. SCHUERMANN

/S/ L. PHILLIP HUMANN /S/ AL TRUJILLO

/S/ MYLLE H. MANGUM


Report of Independent Registered Public Accounting Firm

2013 Annual Report

December 31,

(In thousands, except per share data) 2013 2012

ASSETS

$ 83,185 $ 53,5507,016 7,0138,172 9,710

91,483 96,9026,494 9,5324,349 3,187

200,699 179,894832 814

189,242 193,08513,253 24,366

Other assets 13,829 3,937 Total assets $ 417,855 $ 402,096

LIABILITIES AND STOCKHOLDERS’ EQUITY

$ 21,810 $ 28,17819,008 20,96336,338 33,272

D — 6,595959 881

Total current liabilities 78,115 89,88916,196 18,47325,280 34,306

— —

Total liabilities 119,591 142,668

Stockholders’ equity

27,853 27,212

2,915 3,29777,406 73,803

Retained earnings 281,222 254,310(15,412) (23,378)

(75,720) (75,816) Total stockholders' equity 298,264 259,428

Total liabilities and stockholders' equity $ 417,855 $ 402,096

he accompanying notes are an integral part of these consolidated nancial statements.

HAVERTY FURNITURE COMPANIES, INC.CONSOLIDATED BALANCE SHEETS


Year Ended December 31,(In thousands, except per share data) 2013 2012 2011

$ 746,090 $ 670,073 $ 620,903

344,594 318,038 300,187401,496 352,035 320,716

320 293 460 401,816 352,328 321,176

348,599 328,826 315,865 Interest, net 1,107 624 737

120 165 167

(497) (803) (196) Total expenses 349,329 328,812 316,573

52,487 23,516 4,603I 20,222 8,605 (10,860)

Net income $ 32,265 $ 14,911 $ 15,463

$ 1.45 $ 0.69 $ 0.71$ 1.37 $ 0.58 $ 0.67

$ 1.41 $ 0.67 $ 0.70$ 1.35 $ 0.59 $ 0.67

19,865 19,096 18,6332,558 2,943 3,287

22,815 22,382 22,1532,558 2,943 3,287


HAVERTY FURNITURE COMPANIES, INC.CONSOLIDATED STATEMENTS OF INCOME

Year Ended December 31,

(In thousands) 2013 2012 2011Net income $ 32,265 $ 14,911 $ 15,463

10,943 339 (10,315)

210 210 210

1,695 1,873 947

(4,882) (921) 3,389

7,966 1,501 (5,769)

— 117 201

7,966 1,618 (5,568)Total comprehensive income $ 40,231 $ 16,529 $ 9,895


HAVERTY FURNITURE COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

2013 Annual Report

Year Ended December 31,2013 2012 2011

(In thousands, except share and per share data) Shares Dollars Shares Dollars Shares Dollars

27,212,184 $ 27,212 26,578,193 $ 26,578 26,272,106 $ 26,272

382,199 382 344,802 345 211,440 212

259,029 259 289,189 289 94,647 94

Ending balance 27,853,412 27,853 27,212,184 27,212 26,578,193 26,578

3,297,433 3,297 3,642,235 3,642 3,853,675 3,854

(382,199) (382) (344,802) (345) (211,440) (212)

Ending balance 2,915,234 2,915 3,297,433 3,297 3,642,235 3,642

(8,263,557) (75,816) (8,271,024) (75,847) (8,282,677) (75,959)

10,143 96 25,649 249 11,653 112

— — (18,182) (218) — —

Ending balance (8,253,414) (75,720) (8,263,557) (75,816) (8,271,024) (75,847)

73,803 69,209 67,214

(1,928) (1,605) (237)

1,754 289 15

454 147 157

3,323 2,553 2,060

Ending balance 77,406 73,803 69,209

254,310 264,083 251,229

32,265 14,911 15,463

(5,353) (24,684) (2,609)

Ending balance 281,222 254,310 264,083

(23,378) (24,996) (19,428)

7,966 1,501 (5,769)

Other — 117 201

Ending balance (15,412) (23,378) (24,996)

Total Stockholders’ Equity $298,264 $259,428 $262,669

The accompanying notes are an integral part of these consolidated nancial statements.

HAVERTY FURNITURE COMPANIES, INC.CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY


Year ended December 31

(In thousands) 2013 2012 2011

CASH FLOWS FROM OPERATING ACTIVITIES$ 32,265 $ 14,911 $ 15,463

21,450 19,415 18,242

3,323 2,553 2,060

(1,754) (289) (15)

(652) (2,209) (7,947)

120 165 167

Other 459 614 346

1,400 1,210 2,299

5,419 (3,458) (1,775)

(1,955) 6,391 987

(2,638) 1,819 (11,714)

(1,548) 11,046 959

NET CASH PROVIDED BY OPERATING ACTIVITIES 55,889 52,168 19,072

CASH FLOWS FROM INVESTING ACTIVITIES(20,202) (25,014) (17,566)

(3) (200) (6,813)

85 448 157

NET CASH USED IN INVESTING ACTIVITIES (20,120) (24,766) (24,222)

CASH FLOWS FROM FINANCING ACTIVITIES— — —

— — —

— — —

(867) (766) (588)

872 2,457 285

1,754 289 15

(5,353) (24,684) (2,609)

(2,540) (733) (413)

NET CASH USED IN FINANCING ACTIVITIES (6,134) (23,437) (3,310)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 29,635 3,965 (8,460)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 53,550 49,585 58,045

CASH AND CASH EQUIVALENTS AT END OF YEAR $ 83,185 $ 53,550 $ 49,585

The accompanying notes are an integral part of these consolidated nancial statements.

HAVERTY FURNITURE COMPANIES, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS

2013 Annual Report

NOTE 1, DECRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Business:

Basis of Presentation:

Use of Estimates:

Cash and Cash Equivalents:

Restricted Cash and Cash Equivalents:

Inventories:

Property and Equipment:

Customer Deposits:

Revenue Recognition:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Cost of Goods Sold:

Selling, General and Administrative Expenses:

Deferred Escalating Minimum Rent and Lease Incentives:

Advertising Expense:

Interest Expense, net:

Other Income, net:

Self-Insurance:

Fair Values of Financial Instruments:

Impairment of Long-Lived Assets:

2013 Annual Report

and 2011.

Earnings Per Share:

Comprehensive Income:

Recently Issued and Adopted Accounting Pronouncement:

Comprehensive Income Reporting of mounts Reclassi ed Out of ccumulated Other

Comprehensive Income

Presentation of an nrecogni ed Tax ene t hen a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This

NOTE 2, ACCOUNTS RECEIVABLE:


NOTE 3, INVENTORIES:

NOTE 4, PROPERTY AND EQUIPMENT:

( 2013 2012$ 47,650 $ 46,703

235,468 232,077

92,375 83,976

39,954 37,346

19,577 22,177

902 425

435,926 422,704

(240,808) (225,048)

(5,876) (4,571)

Property and equipment, net $189,242 $193,085

NOTE 5, CREDIT ARRANGEMENT:

2013 Annual Report

(in thousands) 2013 2012 2011$ 18,370 $ 8,231 $ 1,565

1,610 769 143

316 8 33

(1,363) (1,207) (14,121)

1,466 1,129 717

(204) 342 422

— (125) 274

— (674) 42

Other 27 132 65

$ 20,222 $ 8,605 $(10,860)

(In thousands) 2013 2012Accured liabilities:

$ 14,318 $ 11,798

8,231 7,782

5,326 4,095

Other 8,463 9,597

$36,338 $33,272

Other liabilities:$ — $ 6,768

11,581 12,003

Other 13,699 15,535

$25,280 $34,306

NOTE 7, INCOME TAXES:

(In thousands) 2013 2012 2011Current

$ 18,253 $ 9,375 $ (3,136)

State 2,621 1,439 223

20,874 10,814 (2,913)

Deferred(706) (2,235) (7,002)

State 54 26 (945)

(652) (2,209) (7,947)

$ 20,222 $ 8,605 $ (10,860)

NOTE 6, ACCURED LIABILITIES AND OTHER LIABILITIES:


2009.

(in thousands) 2013 2012Current assets (liabilities):

$ 11,048 $ 5,060

(10,754) (10,292)

— (1,363)

294 (6,595)

Non-current assets (liabilities):39,974 46,997

(26,721) (22,631)

13,253 24,366

Net deferred tax assets $ 13,547 $ 17,771

(In thousands) 2013 2012

Deferred tax assets:$ 610 $ 578

11,977 10,313

Leases 5,007 5,608

776 655

110 1,576

Pension 4,633 9,515

Other 28 37

23,141 28,282

Deferred tax liabilities:8,951 8,446

Other 643 702

9,594 9,148

— (1,363)

Net deferred tax assets $ 13,547 $ 17,771

2013 Annual Report

NOTE 8, LONG-TERM DEBT AND LEASE OBLIGATIONS:

NOTE 9, STOCKHOLDERS’ EQUITY:

NOTE 10, BENEFIT PLANS:

2006.

(In thousands) 2013 2012(a) $ — $ —

17,155 19,354

17,155 19,354

(959) (881)

$ 16,196 $ 18,473

Uncertain Tax Positions:

(In thousands) 2013 2012 2011$ — $ 783 $ 785

— — 38

— — (40)

— (783) —

Balance at December 31 — — $ 783


Pension Plan SERP(In thousands) 2013 2012 2013 2012

$ 80,610 $ 77,677 $ 6,368 $ 6,175 S — — 134 97

3,278 3,506 259 262 (6,838) 5,172 (595) 31

(3,594) (5,745) (192) (197)73,456 80,610 5,974 6,368

Change in plan assets: 73,842 66,571 — —4,200 3,000 192 1978,456 10,016 — —

(3,594) (5,745) (192) (197)82,904 73,842 — —

Funded status of the plan - (underfunded) $ 9,448 $ (6,768) $ (5,974) $ (6,368)

$ 73,456 $ 80,610 $ 5,974 $ 6,309

Pension Plan SERP

(In thousands) 2013 2012 2013 2012$ 9,448 $ — $ — $ —

— — (214) (222)— (6,768) (5,760) (6,146)

$ 9,448 $ (6,768) $ (5,974) $ (6,368)

Pension Plan SERP

(In thousands) 2013 2012 2011 2013 2012 2011

$ — $ — $ — $ 134 $ 97 $ 102

3,278 3,506 3,686 259 262 286

(4,948) (4,474) (4,230) — — —

— — — 210 210 210

1,627 1,847 941 68 26 6

Net pension costs $ (43) $ 879 $ 397 $ 671 $ 595 $ 604

Pension Plan SERP

(In thousands) 2013 2012 2013 2012$ — $ — $ (641) $ (851)

(11,176) (23,150) (568) (1,232)

$ (11,176) $(23,150) $ (1,209) $ (2,083)

2013 Annual Report

Assumptions

2013 20124.93% 4.13%

n/a 3.50%

2013 2012 2011

4.13% 4.60% 5.45%

6.65% 6.75% 7.10%

3.50% 3.50% 3.50%

Security ClassStrategic

TargetTactical Range

10% 0% - 20%

15% 5% - 25%

25% 15% - 35%

75% 65% - 85%

Cash 0% 0% - 10%

Total Fund 100%

Cash Flows

(In thousands)Pension

Plan SERP

2014 $ 3,875 $ 214

2015 3,997 225

2016 4,157 256

4,378 365

4,528 370

23,454 2,100

Plan Assets


Fair Value MeasurementsDecember 31, 2013 December 31, 2012

Total Level 1 Level 2 Total Level 1 Level 2

$ 380 $ 380 $ — $ 518 $ 518 $ —

6,348 6,348 3,348 3,348

(a) 9,151 9,151 16,927 16,927

U.S. 1,183 1,183 2,162 2,162

1,174 1,174 2,052 2,052

6,316 6,316 11,276 11,276

1,530 1,530 2,891 2,891

25,702 6,348 19,354 38,656 3,348 35,308

O 8,143 8,143 5,125 5,125

4,294 4,294 2,641 2,641

16,964 16,964 10,278 10,278

6,478 6,478 3,150 3,150

(d) 20,943 20,943 13,474 13,474

56,822 — 56,822 34,668 — 34,668

Total $82,904 $ 6,728 $76,176 $73,842 $ 3,866 $ 69,976

(

Other Plans

2013 Annual Report

NOTE 11, STOCK BASED COMPENSATION PLANS:

Restricted Stock AwardStock-Settled

Appreciation Rights Options

Shares or Units

Weighted-Average Award Price Rights

Weighted-Average Award Price Shares

Weighted-Average Exercise

Price

Outstanding at January 1, 2011 289,125 $11.65 144,049 $ 8.87 830,427 $ 15.18

Granted 249,600 12.67 — — — —(1) (104,000) 12.03 — — (25,000) 10.81

(2,700) 12.39 — — (513,327) 15.95

Outstanding at December 31, 2011 432,025 12.13 144,049 8.87 292,100 14.20

Granted 252,700 12.34 — — — —(1) (127,050) 11.87 (22,300) 8.94 (236,100) 12.89

(1,750) 12.34 (6,000 12.84

Outstanding at December 31, 2012 555,925 12.28 121,749 8.85 50,000 20.56

Granted 162,150 18.15 112,000 18.14 — —(1) (277,975) 12.24 (84,049) 8.90 (48,000) 20.75

(3,100) 15.00 — — (2,000) 15.90

Outstanding at December 31, 2013 437,000 $14.46 149,700 $15.78 — —

Exercisable at December 31, 2013 37,700 $ 8.76 — —

Exercisable at December 31, 2012 96,224 $ 8.89 50,000 $ 20.56

Exercisable at December 31, 2011 80,508 $ 8.91 292,100 $ 14.20

(


NOTE 12, EARNINGS PER SHARE:

Numerator: 2013 2012 2011

$ 4,787 $ 21,721 $ 2,244

23,972 (8,522) 11,005

28,759 13,199 13,249

3,506 1,712 2,214

$ 32,265 $ 14,911 $ 15,463

566 2,963 365

2,940 (1,251) 1,849

$ 3,506 $ 1,712 2,214Demominator:

19,865 19,096 18,633

2,558 2,943 3,287

392 343 233

22,815 22,382 22,153

2,558 2,943 3,287

$ 1.45 $ 0.69 $ 0.71

$ 1.37 $ 0.58 $ 0.67

$ 1.41 $ 0.67 $ 0.70

$ 1.35 $ 0.59 $ 0.67

2013 Annual Report

NOTE 13, COMMITMENTS:

(In thousands)

Operating Leases

2014 $ 31,296

2015 30,941

2016 29,194

26,850

25,023

84,804

228,108

(24)

Net minimum lease payments $ 228,084

2013 2012 2011

$ 27,370 $ 27,633 $ 28,347

— — 34

(146) (137) (292)

27,224 27,496 28,089

2,444 2,162 1,997

$29,668 $29,658 $ 30,086

NOTE 14, SUPPLEMENTAL CASH FLOW INFORMATION:

Income Taxes Paid and Refunds Received

Non-Cash Transactions


NOTE 15, SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED):

2013 Quarter EndedMarch 31 June 30 September 30 December 31

$ 186,090 $ 171,114 $ 192,722 $ 196,164

100,309 91,311 103,877 106,000

86 76 78 79

13,450 7,866 15,388 15,783

8,260 4,830 9,494 9,681

0.37 0.22 0.42 0.43

0.35 0.20 0.40 0.41

0.36 0.21 0.42 0.42

0.34 0.20 0.40 0.41

2012 Quarter EndedMarch 31 June 30 September 30 December 31

$ 163,569 $ 151,519 $ 172,677 $ 182,307

85,341 79,749 90,673 96,271

76 71 69 77

4,021 3,766 5,636 10,093

2,457 2,361 3,314 6,779

0.11 0.11 0.15 0.31

0.11 0.10 0.14 0.28

0.11 0.11 0.15 0.30

0.11 0.10 0.14 0.29

2013 Annual Report

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTSHAVERTY FURNITURE COMPANIES, INC. AND SUBSIDIARIES:

Column A Column B Column C Column D Column E

(In thousands)

Balance at beginning of period

Additions charged to costs and expenses

Deductions Describe (1)(2)

Balance at end of period

Year ended December 31, 2013$ 395 $ 120 $ 165 $ 350

$ 1,152 $ 10,402 $ 10,277 $ 1,277

$ 525 $ 165 $ 295 $ 395

$ 1,100 $ 9,027 $ 8,975 $ 1,152

$ 700 $ 167 $ 342 $ 525

$ 1,210 $ 8,193 $ 8,303 $ 1,100

CLARENCE H. SMITH Chairman, President and Chief Executive Officer STEVEN G. BURDETTE Executive Vice President, Stores J. EDWARD CLARY Chief Information Officer and Senior Vice President, Distribution THOMAS P. CURRAN Senior Vice President, Marketing

B. GREGORY DAVIS Vice President, Information Technology Development

RANDALL A. DAVIS Vice President, Corporate Controller

ALLAN J. DeNIRO Senior Vice President, Chief People Officer

DENNIS L. FINK Executive Vice President and Chief Financial Officer

RICHARD D. GALLAGHER Senior Vice President, Merchandising RAWSON HAVERTY, JR. Senior Vice President, Real Estate and Development SCOTT T. MILES Vice President, Stores JENNY HILL PARKER Senior Vice President, Finance, Secretary and Treasurer

MATT C. SCALF Vice President, Import Services

JANET E. TAYLOR Senior Vice President, General Counsel BARTEL J. VANDER IEST Vice President, Internal Audit RHONDA J. WOLF Vice President, Merchandising

REGIONAL MANAGERS

J. KEITH FIELDS - Central JOHN L. GILL - Western

JOHN P. GROSS - Eastern TIMOTHY E. HART - Florida RAMSEY P. JONES - Southern

CORPORATE ADDRESSHaverty Furniture Companies, Inc.780 Johnson Ferry Road, Suite 800Atlanta, GA 30342 | (404) 443-2900

NOTICE OF ANNUAL MEETINGFriday, May 12, 2014 | 10:00 a.m. Marriott SpringHill | 120 East Redwood St.Baltimore, Maryland 21202

STOCKHOLDER INFORMATION

TRANSFER AGENT AND REGISTRARFor stockholder inquiries concerning dividend checks, transferring ownership, address changes or lost certificates, please contact:

Computershare Investor Services (800) 568-3476

INVESTOR RELATIONSAdditional copies of this report, Form 10-K or other financial information is available without charge and may be obtained by written request to Investor Relations at the corporate address.

We invite you to visit the Investors section on our website at www.havertys.com

CLARENCE H. SMITH Chairman, President and Chief Executive OfficerHaverty Furniture Companies, Inc.

JOHN T. GLOVER Retired, former President andVice ChairmanPost Properties, Inc.

L. PHILLIP HUMANNLead Director, Retired, former Chairman of the Board SunTrust Banks, Inc.

RAWSON HAVERTY, JR. Senior Vice President, Real Estate and Development Haverty Furniture Companies, Inc. MYLLE H. MANGUM Chief Executive Officer IBT Enterprises, LLC FRANK S. McGAUGHEY, III Partner in the law firm of Bryan Cave LLP TERENCE F. McGUIRK

Chairman and Chief Executive Officer Atlanta Braves

VICKI R. PALMER Retired, former Executive Vice President, Financial Services and Administration Coca-Cola Enterprises Inc. FRED L. SCHUERMANN Retired, former President and Chief Executive Officer LADD Furniture, Inc. AL TRUJILLO President and Chief Executive Officer Georgia Tech Foundation; Former President and Chief Executive Officer Recall Corporation

BOARD OF DIRECTORS

PRINCIPAL CORPORATE OFFICERS

Haverty Furniture Companies, Inc. | havertys.com780 Johnson Ferry Road, Suite 800 | Atlanta, GA 30342 404-443-2900

119total stores

ALABAMA Anniston Birmingham (2) Huntsville Mobile Montgomery Tuscaloosa

ARKANSAS Little RockPine Bluff

FLORIDA Boca RatonCocoa Daytona Beach Ft. Lauderdale Ft. Myers Ft. Pierce

Ft. Walton BeachJacksonville (2) Jensen Beach Lakeland Melbourne Naples Orange Park Orlando (3) Pensacola Port Charlotte Port Richey Sarasota Tallahassee Tampa (4) West Palm Beach Winter Garden

GEORGIA Athens Atlanta (10) Augusta Columbus Gainesville Macon Savannah

INDIANA Indianapolis

KANSAS Wichita

KENTUCKY Florence Lexington Louisville

LOUISIANA Alexandria Baton Rouge Monroe Shreveport MARYLANDBaltimoreMetro DC (3) MISSOURI Springfield

NORTH CAROLINA Asheville Charlotte (2) Fayetteville Raleigh (2) Wilmington Winston-Salem

OHIO Cincinnati Columbus

SOUTH CAROLINA Charleston (2) Columbia (2) Florence Greenville Hilton Head

TENNESSEE Knoxville Memphis (2) Murfreesboro Nashville (2)

TEXASAmarillo Austin (2) Dallas (8) Ft. Worth (3) Longview Lubbock MidlandSan Angelo San Antonio (2) Sherman Tyler

VIRGINIA Metro DC (3)Norfolk (2) Richmond (2)

2014 OPENINGSAtlanta, GAFt. Worth, TXCoconut Creek, FL

2014 RELOCATIONSFayetteville, NCOrlando, FLTo be announced

LOCATIONS

1GREAT YEAR

6future

openings52

markets

4.3Msquare feet

BRIGHT INSPIRATIONS

$15.2MSTORE

INVESTMENTS

Regional Distribution Center Home Delivery Center

Local Market Cross Dock

Store Location

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2013-12-31 annual report to stockholders

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