James Joseph Haverty founded Havertys in 1885, and our stock began publicly trading in 1929.

Today Havertys is one of the top 10 largest specialty furniture retailers in the United States, and our size allows us to command better pricing and delivery from our vendors. Our operating strategy is to offer quality merchandise selected, and priced to appeal to our target customer, displayed attractively in well located stores. We have shifted our merchandise to primarily proprietary products branded "Havertys" supplemented by a select number of other key brands in the bedding category. We believe that the quality of the merchandise we offer and our knowledgeable sales associates, coupled with the ability to deliver purchases within a short time-frame, are very important to our ability to maintain customer satisfaction.

We remain committed to our mission to protect and strengthen Haverty's financial position and have significantly de-leveraged our balance sheet. We ended 2008 with no short-term or long-term borrowings and have in place a $60 million revolving credit facility with a three-year term expiring in December 2011.

We have invested in developing our capabilities for cross-channel selling by transforming havertys.com from a static limited advertising tool into an interactive, consumer driven, full service shopping and transactional vehicle. We believe this will give us additional competitive advantages and more fully realize the benefits of our continuing investments in products and distribution systems.

We are certain that maintaining our focus on adjusting our costs to the conditions, limiting capital spending, and managing for cash is the right strategy for surviving the difficult industry downturn, while positioning Havertys for future growth and profitability. Given our solid position in the markets we serve and sound financial condition the opportunities for us to survive and thrive remain.