Bassett Announces First Quarter 2003 Earnings.Business Editors BASSETT Bassett is a surname, and may refer to:
Bassett Furniture Bassett Furniture is a furniture manufacturer located in Virginia, USA. Bassett Furniture is one of the oldest furniture manufacturers in Virginia and has been producing hand crafted furniture for over 100 years. Industries Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BSET BSET Bachelor of Science in Engineering Technology BSET Building Systems Engineering Technology BSET Berhampur School of Engineering and Technology ) announced today the financial results for its first fiscal quarter ended March 1, 2003. Sales for the first quarter of 2003 were $73.3 million, down 13.6% from first quarter 2002 levels. The decrease was due to industry wide soft retail conditions as well as the previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). significant sales decrease with JCPenney. Also, the first quarter of 2002 included an additional week of shipments compared to fiscal 2003 (2002 was a 53 week fiscal year). Gross margin improvement for the quarter was driven by the inclusion of corporate store gross profit, cost reductions initiated earlier this year, and better margin performance in both the Upholstery upholstery, general term for household fittings, hangings, curtains, cushions, and covers. It refers to stuffed, padded, and spring-cushioned furniture, such as chairs and sofas, or to the usually decorative materials and fabrics that cover them. and Import Divisions. The Company achieved the margin improvement despite significantly lower manufacturing shipments in the first quarter of 2003. The increase in selling, general and administrative expense, both in terms of dollars and as a percentage of sales, is primarily reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the inclusion of corporate store results for the first quarter of 2003. The Company reported a loss for the quarter of $1.3 million or $(.11) per share after taking a previously announced $3.2 million charge related to closing the Company's Dublin Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. , Ga., wood manufacturing facility. Excluding the charge, net income was $1 million or $.08 per share compared to $2.9 million or $.25 per share in the first quarter of 2002. "Business conditions continue to be challenging," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. H. Spilman Jr., president and chief executive officer. "The cost reduction actions we have taken have helped to offset lower sales levels and will position us for greater profitability in the future. We continue to be focused on our stores - both adding additional stores and improving our overall program. I am particularly excited about the new product introductions for the coming months, especially 'American Hewn' which will debut at next month's furniture market." The Bassett Furniture Direct (BFD BFD Big Freakin' Deal (polite form) BFD Bidirectional Forwarding Detection (IP networking) BFD Binary File Descriptor (computer programming) ) retail store program continues to grow with 88 stores currently in operation. Licensees opened four stores in the first quarter and the Company expects licensees to open six stores in the second quarter and a total of 20 new stores in fiscal 2003. Sales to BFD stores were 45% of total Company sales in 2002 and are planned to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 55% of total Bassett sales in 2003. Sales to BFD stores were 50% of sales for the first quarter of 2003. The Company borrowed $4 million during the first quarter of 2003 to support increased inventory levels needed by the Company's growing Import Division in addition to funding an increase in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . The increase in accounts receivable is reflective of the general economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. . The Company's debt to capital ratio was 3% at March 1, 2003. The Company received proceeds of $17 million from its Bassett Industries Alternative Asset Fund Investment during the quarter and reinvested $12 million of these funds with another money manager. The remaining $5 million was used to fund capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. , BFD growth, and working capital. The Company's cash flow statement for the first quarter of 2002 reflects two quarterly dividend payments as a result of the 14 week quarter. Bassett Furniture Industries Inc., based in Bassett, Va., is one of the world's leading manufacturers and marketers of branded home furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. . Bassett's products, designed to provide quality, style and value, are sold through Bassett Furniture Direct(TM) stores, At Home with Bassett(R), and other furniture and department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. . The Company's common stock is traded on the NASDAQ market under the symbol BSET. More information about Bassett is available on the Company's Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the site at www.bassettfurniture.com. Certain of the statements in the immediately preceding paragraphs, particularly those preceded by, followed by or including the words "believes," "expects," "anticipates," "intends," "should," "estimates," or similar expressions, or those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc or anticipating financial results for periods beyond the first quarter of fiscal year 2003, constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . For those statements, Bassett claims the protection of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward looking statements contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. In many cases, Bassett cannot predict what factors would cause actual results to differ materially from those indicated in the forward looking statements. Expectations included in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are based on preliminary information as well as certain assumptions which management believes to be reasonable at this time. The following important factors affect Bassett and could cause those results to differ materially from those expressed in the forward looking statements: the effects of recent events and the effects of future governmental and military responses to such events on demand for furniture at the retail level, and the economic, competitive, governmental, technological and other factors identified in Bassett's filings with the Securities and Exchange Commission.
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income - Unaudited
(Stated in thousands of dollars except for per share data)
13 Weeks Ended 14 Weeks Ended
March 1, 2003 March 2, 2002
------------------------------
Amount Percent Amount Percent
of Net of Net
Sales Sales
------------------------------
Net sales $73,282 100.0% $84,788 100.0%
Cost of sales 57,444 78.4% 68,060 80.3%
-------------- ---------------
Gross profit 15,838 21.6% 16,728 19.7%
-------------- ---------------
Selling, general and administrative 15,311 20.9% 13,728 16.2%
Restructuring and impaired fixed asset
charges 3,200 4.4% - 0.0%
-------------- ---------------
18,511 25.3% 13,728 16.2%
-------------- ---------------
Income (loss) from operations (2,673) -3.6% 3,000 3.5%
Other income , net 826 1.1% 1,221 1.4%
-------------- ---------------
Income (loss) before income taxes (1,847) -2.5% 4,221 5.0%
Income tax (provision) benefit 517 0.7% (1,309) -1.5%
-------------- ---------------
Net income (loss) $(1,330) -1.8% $2,912 3.4%
============== ===============
Basic earnings (loss) per share: $(0.11) $0.25
======== ========
Diluted earnings (loss) per share: $(0.11) $0.25
======== ========
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Stated in thousands of dollars except for per share data)
(Unaudited)
March 1, 2003 Nov. 30, 2002
------------- -------------
ASSETS
--------------------------
Current Assets
Cash and cash equivalents $2,307 $1,371
Accounts receivable, net 47,339 44,806
Inventories 47,482 43,449
Refundable income taxes 921 2,924
Deferred income taxes 3,671 3,600
Other current assets 7,321 6,816
----------- ---------
109,041 102,966
----------- ---------
Property and equipment, net 87,940 90,542
----------- ---------
Other Assets
Investments 58,374 63,248
Investment in unconsolidated affiliated
companies 4,281 4,383
Deferred income taxes 4,258 3,454
Notes receivable, net 18,256 18,761
Other, Net 7,129 7,526
----------- ---------
92,298 97,372
----------- ---------
Total Assets $289,279 $290,880
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities
Accounts payable $15,720 $17,738
Accrued liabilities 17,027 16,406
----------- ---------
Total current liabilities 32,747 34,144
----------- ---------
Long-Term Liabilities
Employee benefits 10,096 10,152
Long-term debt 7,000 3,000
Deferred revenue from unconsolidated
affiliate 14,825 13,941
----------- ---------
31,921 27,093
----------- ---------
Stockholders' Equity
Common stock, par value $5 a share,
50,000,000 shares authorized, issued and
outstanding - 11,642,964 in 2003 and
11,660,587 in 2002 57,978 58,303
Retained earnings 165,590 169,789
Unrealized holding gains, net of tax 1,043 1,551
----------- ---------
Total stockholders' equity 224,611 229,643
----------- ---------
Total liabilities and
stockholders' equity $289,279 $290,880
=========== =========
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - Unaudited
(Stated in thousands of dollars)
13 Weeks 14 Weeks
Ended Ended
March 1, March 2,
2003 2002
-------------------
Operating Activities
Net income (loss) $(1,330) $2,912
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 2,703 2,611
Equity in undistributed income of
investments (1,316) (1,644)
Provision for write-down of property and
equipment 1,530 -
Provision for losses on trade accounts
receivable 29 -
Net gain from sales of investment
securities - (302)
Net gain from sales of property and
equipment (13) -
Compensation earned under restricted stock
plans - 45
Deferred income taxes (517) 1,309
Changes in employee benefit liabilities (56) (58)
Changes in operating assets and
liabilities:
Trade accounts receivable (2,562) (309)
Inventories (4,033) 2,533
Refundable income taxes 2,003 -
Other current assets (505) 22
Accounts payable and accrued
liabilities (1,397) (1,233)
--------- -------
Net cash provided by (used in) operating
activities (5,464) 5,886
--------- -------
Investing Activities
Purchases of property and equipment (1,801) (1,196)
Proceeds from sales of property and equipment 183 -
Dividends from affiliated companies 1,874 1,750
Proceeds from sales of investment securities 17,000 665
Purchase of investment securities (12,000) -
Investments in unconsolidated affiliated
companies - (2,118)
Other, net 338 598
--------- -------
Net cash provided by (used in)
investing activities 5,594 (301)
--------- -------
Financing Activities
Borrowings (repayments) under notes payable,
net 4,000 (5,016)
Issuance of common stock 38 34
Repurchase of common stock (914) -
Cash dividends paid (2,318) (4,684)
--------- -------
Net cash provided by (used in)
financing activities 806 (9,666)
--------- -------
Net change in cash and cash equivalents 936 (4,081)
--------- -------
Cash and cash equivalents, beginning of period 1,371 5,347
--------- -------
Cash and cash equivalents, end of period $2,307 $1,266
========= ========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion