Bassett Announces First Quarter 2005 Earnings.BASSETT Bassett is a surname, and may refer to:
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 its earnings for its fiscal quarter ended February February: see month. 26, 2005. Sales for the first quarter of 2005 were $80.8 million, up 5% from first quarter 2004 levels, fueled by a $9 million or 22% increase in shipments to Bassett Furniture Direct (BFD BFD Big Freakin' Deal (polite form) BFD Bidirectional Forwarding Detection (IP networking) BFD Binary File Descriptor (computer programming) ) stores 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. Offsetting this increase was an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. $5 million expected sales decrease with traditional furniture stores. The Bassett Furniture Direct retail store program continues to grow with 120 stores in operation at the end of the first quarter. Licensees opened seven stores during the quarter (three were closed) and the Company continues to expect a total of 20 to 25 new BFD stores will be opened in fiscal 2005. Margins were up slightly due to an increased sales mix sales mix See product mix. of both 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 imported products. SG&A expenses were up slightly due to increases in marketing spending primarily related to the introduction of the John Elway John Albert Elway, Jr. (born June 28, 1960) played American football quarterback in the National Football League (NFL) for the Denver Broncos from 1983 through 1998. Elway holds many college and professional records and was inducted to the Pro Football Hall of Fame and is the only Home Collection. The Company reported net income for the quarter of $2.4 million or $.20 per share which compares to net income of $2.3 million or .20 per share in the first quarter of 2004. On an adjusted basis, 2004's net income for the first quarter was $1.6 million or $.13 per share (excluding an unusual gain and 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 charges in 2004)*. A reconciliation to the net income and earnings per share calculations has been set forth below. "We are pleased with our year-over-year sales improvement as our Bassett Furniture Direct growth is now outpacing the expected attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: in our other distribution channels," 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. "Our import and upholstery divisions continue to post strong sales and earnings improvement and our investment portfolio had another strong quarter. Even though February was a strong month for us, business conditions continue to be fairly tough at retail, especially in certain parts of the country including Texas. Our primary focus in 2005 continues to be improving every aspect of the BFD store program." The Company borrowed $5 million during the quarter primarily to fund increases 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 and inventories. The Company also received a dividend from its investment in an affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. (IHFC IHFC International Heat Flow Commission IHFC International Home Furnishings Corp ) during the quarter and paid its regular quarterly dividend to shareholders during 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, 2005, to shareholders of record on May 16, 2005. 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 120 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 the first quarter of 2005, 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 26, February 28,
2005 2004
------------------ ------------------
Percent Percent
of of
Amount Net Sales Amount Net Sales
------------------ ------------------
Net sales $80,752 100.0% $76,568 100.0%
Cost of sales 59,456 73.6% 56,901 74.3%
------------------ ------------------
Gross profit 21,296 26.4% 19,667 25.7%
------------------ ------------------
Selling, general and
administrative 20,028 24.8% 18,496 24.2%
Gain on sale of property - 0.0% (3,890) -5.1%
Restructuring and impaired asset
charges - 0.0% 2,840 3.7%
------------------ ------------------
20,028 24.8% 17,446 22.8%
Income from operations 1,268 1.6% 2,221 2.9%
Other income, net 1,970 2.4% 1,013 1.3%
------------------ ------------------
Income before income taxes 3,238 4.0% 3,234 4.2%
Income tax provision (874) -1.1% (906) -1.2%
------------------ ------------------
Net income $2,364 2.9% $2,328 3.0%
================== ==================
Basic earnings per share: $0.20 $0.20
======== ========
Diluted earnings per share: $0.20 $0.20
======== ========
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Reconciliation of Net Income as Reported
to Net Income as Adjusted (Unaudited)
(In thousands, except for per share data)
13 Weeks Ended 13 Weeks Ended
February 26, February 28,
2005 2004
---------------- ---------------
Net income as reported $2,364 $2,328
Gain on sale of property, net of
income taxes - (2,801)
Restructuring and impaired asset
charges, net of income taxes - 2,045
---------------- ---------------
Net income as adjusted $2,364 $1,572
================ ===============
Reconciliation of Earnings Per Share as Reported
to Earnings Per Share as Adjusted (Unaudited)
13 Weeks Ended 13 Weeks Ended
February 26, February 28,
2005 2004
---------------- ---------------
Diluted earnings per share $0.20 $0.20
Gain on sale of property, net of
income taxes - (0.24)
Restructuring and impaired asset
charge, net of income taxes - 0.17
---------------- ---------------
Diluted earnings per share as adjusted $0.20 $0.13
================ ===============
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
Assets February 26, November 27,
2005 2004
------------ ------------
Current assets
Cash and cash equivalents $5,800 $4,022
Accounts receivable, net 43,382 40,507
Inventories 48,208 47,285
Deferred income taxes 3,880 4,130
Assets held for sale, net 1,145 2,753
Other current assets 3,980 3,980
------------ ------------
Total current assets 106,395 102,677
------------ ------------
Property and equipment, net 39,717 40,243
------------ ------------
Investments 75,264 73,520
Retail real estate, net 54,190 53,085
Notes receivable, net 14,919 14,642
Other, net 13,236 13,199
------------ ------------
157,609 154,446
------------ ------------
Total assets $303,721 $297,366
============ ============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $16,883 $19,948
Accrued liabilities 21,689 18,601
------------ ------------
Total current liabilities 38,572 38,549
------------ ------------
Long-term liabilities
Employee benefits 9,354 9,423
Long-term debt 5,000 -
Real estate notes payable 15,494 15,604
Distributions in excess of affiliate
earnings 13,750 12,578
------------ ------------
43,598 37,605
------------ ------------
Commitments and Contingencies
Stockholders' equity
Common stock, par value $5 a share,
50,000,000 shares authorized, issued and
outstanding - 11,753,640 in 2005 and
11,735,967 in 2004 58,768 58,680
Retained earnings 158,355 158,341
Additional paid-in-capital 1,546 1,373
Accumulated other comprehensive income -
unrealized holding gains, net of income
tax 2,882 2,818
------------ ------------
Total stockholders' equity 221,551 221,212
------------ ------------
Total liabilities and stockholders' equity $303,721 $297,366
============ ============
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - Unaudited
(In thousands)
13 Weeks Ended 13 Weeks Ended
February 26, February 28,
2005 2004
-------------- --------------
Operating Activities
Net income $2,364 $2,328
Adjustments to reconcile net income to
net cash provided by (used in) operating
activities:
Depreciation and amortization 2,467 2,519
Equity in undistributed income of
investments (2,772) (1,901)
Provision for write-down of
property and equipment - 2,103
Provision for losses on trade
accounts receivable 590 310
Net gain from sales of
investments (587) (79)
Net gain from sales of property
and equipment - (3,890)
Deferred income taxes 250 838
Changes in employee benefit
liabilities (69) (58)
Changes in operating assets and
liabilities
Trade accounts receivable (3,465) (1,393)
Inventories (923) 2,589
Other current assets - 554
Notes receivable, net (277) (307)
Accounts payable and
accrued liabilities 23 (944)
-------------- --------------
Net cash (used in) provided by
operating activities (2,399) 2,669
-------------- --------------
Investing Activities
Purchases of property and equipment (1,104) (654)
Purchases of retail real estate (1,632) (1,536)
Proceeds from sales of property and
equipment 1,367 6,104
Proceeds from sales of investments 3,513 4,414
Purchases of investments (3,088) (9,414)
Dividends from an affiliate 2,342 2,343
Other, net (21) 651
-------------- --------------
Net cash provided by
investing activities 1,377 1,908
-------------- --------------
Financing Activities
Borrowings under revolving credit
arrangement 5,000 -
Repayments of real estate notes
payable (110) -
Issuance of common stock, net 260 1,354
Cash dividends (2,350) (2,331)
-------------- --------------
Net cash provided by
(used) in financing
activities 2,800 (977)
-------------- --------------
Net change in cash and cash equivalents 1,778 3,600
-------------- --------------
Cash and cash equivalents, beginning of
year 4,022 15,181
-------------- --------------
Cash and cash equivalents, end of quarter $5,800 $18,781
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