Bassett Announces First Quarter 2004 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: BSET BSET Bachelor of Science in Engineering Technology BSET Building Systems Engineering Technology BSET Berhampur School of Engineering and Technology ) announced today its earnings for its fiscal quarter ended February February: see month. 28, 2004. Sales for the first quarter of 2004 were $76.6 million, down 1.3% from first quarter 2003 levels. The net growth in the Company's ongoing distribution channels, fueled by increased shipments to Bassett Furniture Direct stores (BFDs) and greater demand for juvenile juvenile /ju·ve·nile/ (ju´vin-il) 1. pertaining to youth or childhood. 2. a youth or child; a young animal. 3. a cell or organism intermediate between immature and mature forms. products, offset most of the expected $3.8 million sales decrease with JCPenney. Shipments into the BFD BFD Big Freakin' Deal (polite form) BFD Bidirectional Forwarding Detection (IP networking) BFD Binary File Descriptor (computer programming) channel were up 11% over 2003 but were below what the Company anticipated due to lower than expected written retail business in January January: see month. . February and March written retail sales have rebounded to expected levels. The Company reported net income for the quarter of $2.3 million or $.20 per share after realizing a $3.9 million gain on the sale of its former California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). 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. facility and recognizing a $2.8 million restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and impaired asset Impaired Asset An asset with a market value that is worth less than its book value. Notes: If the sum of all estimated future cash flows is less than the carrying value of the asset, then the asset would be considered impaired and would have to be written down to its fair charge. The Company continues to transition its business, examine its domestic manufacturing cost structure and focus on its core assets and competencies. These efforts resulted in the impaired asset and restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. which included closing the Company's Hiddenite hid·den·ite n. A transparent emerald-green variety of spodumene, used as a gemstone. [After William Earl Hidden (1853-1918), American mineralogist.] Noun 1. , N.C., upholstery manufacturing facility, restructuring its Macon Macon (mā`kən, mā`kŏn), city (1990 pop. 106,612), seat of Bibb co., central Ga., at the head of navigation on the Ocmulgee River; inc. 1823. , Ga., wood manufacturing facility and plans to sell certain non-core assets. Excluding the gain and charge, net income was $1.6 million or $.13 per share compared to $.8 million or $.06 per share in the first quarter of 2003 (excluding restructuring and impaired asset charges and cumulative effect of accounting change). A reconciliation to the net income and earnings per share calculations has been set forth below. The two percentage point reduction in selling, general and administrative expenses year-over-year was primarily the result of actions taken in 2003 which lowered the expense structure in an effort to improve the profitability of the Company-owned retail stores. The Company generated $2.7 million of operating cash flows Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. during the first quarter of 2004 through a combination of earnings and inventory reduction. Cash flows from operations improved by $8.4 million in 2004 as compared to 2003. The proceeds from the sale of the California facility were also received in the quarter. Cash flow generated during the quarter was used primarily 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. , pay a quarterly dividend, and purchase investments. "We are pleased with our year-over-year earnings improvement and our continued positive cash flow," 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. "However, we are not satisfied with our current level of earnings. Our focus continues to be on better execution at the store level and the profitability of our Wood Division. Our Upholstery Division continued its solid performance even as we consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: two plants into one facility, and we were pleased that our Company-owned stores in Texas (LRG LRG Large LRG Liquefied Refinery Gases LRG Local and Regional Governments LRG Long Range Aircraft LRG Looking Real Good LRG Location Reference Group LRG Local Reference Group LRG Library Resource Guide (Information Today, Inc) ) posted positive earnings for the quarter." Bassett also announced that its Board of Directors has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a regular quarterly dividend of $.20 per share payable on June June: see month. 1, 2004, to shareholders of record on May 17, 2004. Bassett Furniture Industries, Inc. is a leading manufacturer and marketer of high quality, mid-priced 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. . With over 100 Bassett Furniture Direct stores, Bassett has leveraged its strong brand name in furniture into a growing network of licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories. While the Company continues to sell its products to other retailers, the most significant growth vehicle for Bassett continues to be the Company's dedicated retail store program. Bassett's retail strategy encompasses affordable custom-built cus·tom-built adj. Built according to the specifications of the buyer. custom-built or -made Adjective made according to the specifications of an individual customer Noun furniture that is ready for delivery in the home within 30 days. The stores also feature the latest on-trend furniture styles, more than 1,000 upholstery fabrics, free in-home in-home adj. Operating in or provided at the home of the customer or patient: in-home shopping; an in-home nursing program. design visits, and coordinated decorating accessories. For more information, visit the Company's website at www.bassettfurniture.com. The Company has included the "as adjusted" information because it uses, and believes that others may use, such information in comparing the Company's operating results from period to period. However, the items excluded in determining the "as adjusted" information are significant components in understanding and assessing the Company's overall financial performance for the periods covered. 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 end 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: economic, competitive, governmental and other factors identified in Bassett's filings with the Securities and Exchange Commission, and the effects of national and global economic or other conditions and future events on the retail demand for home furnishings.
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income - Unaudited
(In thousands, except for per share data)
13 Weeks Ended 13 Weeks Ended
February 28, 2004 March 1, 2003
---------------------------------------------
Amount Percent of Amount Percent of
Net Sales Net Sales
---------------------------------------------
Net sales $76,568 100.0% $77,614 100.0%
Cost of sales 56,901 74.3% 57,410 74.0%
----------------------- --------------------
Gross profit 19,667 25.7% 20,204 26.0%
----------------------- --------------------
Selling, general and
administrative 18,496 24.2% 20,298 26.2%
Gain on sale of property (3,890) -5.1% - 0.0%
Restructuring and
impaired asset charges 2,840 3.7% 3,200 4.1%
----------------------- --------------------
17,446 22.8% 23,498 30.3%
----------------------- --------------------
Income (loss) from
operations 2,221 2.9% (3,294) -4.2%
Other income, net 1,013 1.3% 1,142 1.5%
----------------------- --------------------
Income before income
taxes and cumulative
effect of accounting
change 3,234 4.2% (2,152) -2.8%
Income tax (provision)
benefit (906) -1.2% 602 0.8%
----------------------- --------------------
Income (loss) before
cumulative effect of
accounting change 2,328 3.0% (1,550) -2.0%
----------------------- --------------------
Cumulative effect of
accounting change, net
of income tax of $3,200 - 0.0% (4,875) -6.3%
----------------------- --------------------
Net income (loss) $2,328 3.0% $(6,425) -8.3%
======================= ====================
Basic earnings (loss) per
share: $0.20 $(0.55)
============= ==========
Diluted earnings (loss)
per share: $0.20 $(0.55)
============= ==========
Note - As reflected and explained in the Company's 2003 Annual
Report, 2003 first quarter amounts were adjusted to reflect
the adoption of FIN 46R for LRG which required consolidation
of LRG as of
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Reconciliation of Net Income (Loss) as Reported
to Net Income as Adjusted (Unaudited)
(In thousands, except for per share data)
13 Weeks 13 Weeks
Ended Ended
February March 1,
28, 2004 2003
---------- ----------
Net income (loss) as reported $2,328 $(6,425)
Gain on sale of property, net of income taxes (2,801) -
Restructuring and impaired asset charge, net of
income taxes 2,045 2,304
Cumulative effect of accounting change, net of
income taxes - 4,875
---------- ----------
Net income as adjusted $1,572 $754
========== ==========
Reconciliation of Earnings (Loss) Per Share as Reported
to Earnings Per Share as Adjusted (Unaudited)
13 Weeks 13 Weeks
Ended Ended
February March 1,
28, 2004 2003
---------- ----------
Diluted earnings (loss) per share $0.20 $(0.55)
Gain on sale of property, net of income taxes (0.24) -
Restructuring and impaired asset charge, net of
income taxes 0.17 0.19
Cumulative effect of accounting change, net of
income taxes - 0.42
---------- ----------
Diluted earnings per share as adjusted $0.13 $0.06
========== ==========
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
Assets Feb. 28, Nov. 29,
2004 2003
----------- ---------
Current assets
Cash and cash equivalents $18,781 $15,181
Accounts receivable, net 40,313 39,230
Inventories 33,865 36,454
Deferred income taxes 5,351 5,307
Assets held for sale 1,868 1,881
Other current assets 1,941 4,525
----------- ---------
Total current assets 102,119 102,578
----------- ---------
Property and equipment, net 45,877 48,800
----------- ---------
Investments 72,839 65,151
Retail real estate, net 32,922 32,930
Notes receivable, net 15,706 15,399
Other, net 13,241 15,522
----------- ---------
134,708 129,002
----------- ---------
Total assets $282,704 $280,380
=========== =========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $15,712 $15,127
Accrued liabilities 20,812 22,341
----------- ---------
Total current liabilities 36,524 37,468
----------- ---------
Long-term liabilities
Employee benefits 9,766 9,824
Distributions in excess of affiliate earnings 14,352 13,070
----------- ---------
24,118 22,894
----------- ---------
Commitments and Contingencies
Stockholders' equity
Common stock, par value $5 a share, 50,000,000
shares authorized,
issued and outstanding - 11,697,418 in 2004
and 11,599,936 in 2003 58,487 58,000
Retained earnings 160,352 159,487
Accumulated other comprehensive income -
unrealized holding gains, net of income tax 3,223 2,531
----------- ---------
Total stockholders' equity 222,062 220,018
----------- ---------
Total liabilities and stockholders' equity $282,704 $280,380
=========== =========
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - Unaudited
(In thousands)
13 Weeks 13 Weeks
Ended Ended
Feb.28, March 1,
2004 2003
------------------
Operating Activities
Net income (loss) $2,328 $(6,425)
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 2,519 2,773
Equity in undistributed income of
investments (1,901) (1,830)
Provision for write-down of property and
equipment 2,103 1,530
Cumulative effect of accounting change, net - 4,875
Provision for losses on trade accounts
receivable 90 29
Net gain from sales of investments (349) -
Net gain from sales of property and
equipment (3,890) (13)
Deferred income taxes 838 (602)
Changes in employee benefit liabilities (58) (56)
Changes in operating assets and liabilities,
exclusive of assets and liabilities
acquired in a business combination:
Trade accounts receivable (1,173) (2,856)
Inventories 2,589 (4,830)
Refundable income taxes - 2,003
Other current assets 554 (539)
Accounts payable and accrued
liabilities (944) 203
-------- --------
Net cash provided by (used in) operating
activities 2,706 (5,738)
-------- --------
Investing Activities
Purchases of property and equipment (2,190) (1,836)
Proceeds from sales of property and equipment 6,104 183
Proceeds from sales of investments 4,414 17,000
Purchases of investments (9,414) (12,000)
Dividends from an affiliate 2,343 1,874
Other, net 614 410
-------- --------
Net cash provided by investing
activities 1,871 5,631
-------- --------
Financing Activities
Borrowings under revolving credit arrangement - 4,000
Issuance of common stock, net 1,354 38
Repurchases of common stock - (914)
Cash dividends (2,331) (2,318)
-------- --------
Net cash provided by (used in)
financing activities (977) 806
-------- --------
Net change in cash and cash equivalents 3,600 699
-------- --------
Cash and cash equivalents, beginning of period 15,181 2,892
-------- --------
Cash and cash equivalents, end of period $18,781 $3,591
======== ========
Note - As reflected and explained in the Company's 2003 Annual
Report, 2003 first quarter amounts were adjusted to reflect
the adoption of FIN 46R for LRG which required consolidation
of LRG as of the beginning of 2003.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion