Bassett Announces Fiscal 2000 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., a leading manufacturer and marketer 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. , today announced earnings results for the 2000 fiscal year ended November November: see month. 25. As previously announced in November, results for the quarter were disappointing and included 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 non-recurring charges. Excluding the nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". , earnings per share were $.35 for the fourth quarter and $1.49 for the fiscal year ended November 25, 2000, versus $.39 and $1.49 for the year-ago periods in 1999. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings (loss) per share (including restructuring and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges in both 2000 and 1999) were ($0.27) for the fourth quarter and $.85 for the fiscal year ended November 25, 2000, compared with $.34 and $1.44, respectively, for the prior year periods. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for fiscal year 2000 were $367.4 million compared with $394.4 million in 1999; fourth quarter sales were $88.9 million in 2000 and $102.1 million in 1999. The lower sales in 2000 reflect a much softer business climate, the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of the bedding division in May 1999, and the inclusion in 1999 of sales from the former company-owned retail stores. On a comparable year over year basis, sales were down 2.7 percent in fiscal 2000. Net income (including the one-time charges) was $10.0 million in 2000 versus $18.0 million in 1999, with 2000 reflecting the restructuring and one-time charges in addition to a decrease in operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before offset by an increase in other income. Operating earnings suffered due to the sales decline and were further impacted by production schedules, product mix, and returns and allowances. Other income included investment earnings and was bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by a dividend received from an insurance program investment. Commenting on the 2000 results, 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, said, "These results are unacceptable. Soft business conditions resulted in reduced manufacturing schedules, which impacted our operating earnings. We are reducing costs across the company and restructuring our manufacturing capacity to respond to these conditions. Order activity continues to be soft and will continue to affect operating results in the first quarter of 2001." As announced in November 2000, Bassett further 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: its domestic wood manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in the fourth quarter resulting in the eventual elimination of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 280 jobs. Total charges associated with the restructuring and one-time charges are $12.4 million with $10.4, or $.61 per share, recorded in the fourth quarter of 2000 and an estimated $2.0 million which is expected to be recorded in fiscal 2001. Of the $10.4 million, $6.7 million was restructuring charges 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. for asset writedowns and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs, $.6 million was for inventory reserves related to the restructuring, and $3.1 million was for increases in bad debt expense related to the expected losses from the bankruptcies of two national retailers. Mr. Spilman added, "The restructuring is expected to improve annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. earnings by approximately $6.0 million. We continue to believe the Bassett brand, our strong balance sheet, and our dedicated store network uniquely position the Company for the challenges we face in today's environment. We are committed to our store strategy and plan to open 12 to 15 BFD's and expand our At Home with Bassett program with approximately 35 additional retail stores in fiscal 2001." Also Tuesday Tuesday: see week. , Bassett's Board of Director's 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 March 1, 2001, to shareholders of record on February February: see month. 15, 2001. Bassett Furniture Industries, Inc., based in Bassett, Va., is one of the world's largest manufacturers and marketers of home furnishings. The 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 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 market under the symbol BSET BSET Bachelor of Science in Engineering Technology BSET Building Systems Engineering Technology BSET Berhampur School of Engineering and Technology . 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," "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 the effect of current order activity on future earnings, financial matters or results for periods after fiscal year 2000 including profitable or improved future earnings, and future manufacturing capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. 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 can not 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 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: correctness of the estimates of special charges, successful completion of the actions described in this press release, and other items. In addition to the factors set forth in this press release, the economic, competitive, governmental, technological and other factors identified in Bassett's filings with the Securities and Exchange Commission could affect the forward looking statements in this press release.
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations - Unaudited
(Stated in thousands of dollars except for per share data)
Quarter Ended Quarter Ended
Nov. 25, Nov. 27
2000 1999
Unaudited Percent Percent
Adjusted of Net Adjusted of Net
Amount Amount(1) Sales (2) Amount Amount(1) Sales(2)
Net sales $88,902 $88,902 100.0% $102,141 $102,141 100.0%
Cost of sales 76,352 75,752 85.2% 79,309 78,633 77.0%
Selling, general and
administrative 17,106 13,956 15.7% 20,404 19,924 19.5%
Restructuring 6,680 - 0.0% - - 0.0%
------------------ -----------------
100,138 89,708 100.9% 99,713 98,557 96.5%
------------------ -----------------
Income (loss)
from
operations (11,236) (806) -0.9% 2,428 3,584 3.5%
Other income,
net 6,456 6,456 7.3% 3,428 3,428 3.4%
------------------ -----------------
Income (loss)
before income
taxes (4,780) 5,650 6.4% 5,856 7,012 6.9%
Income taxes
(benefit) (1,649) 1,595 1.8% 1,782 2,250 2.2%
------------------ -----------------
NET INCOME $(3,131) $4,055 4.6% $4,074 $4,762 4.7%
(LOSS)
================== =================
BASIC EARNINGS (LOSS)
PER SHARE $ (0.27) $ 0.35 $ 0.34 $ 0.39
================== =================
DILUTED EARNINGS
(LOSS) PER
SHARE $ (0.27) $ 0.35 $ 0.34 $ 0.39
================== =================
(1) The adjusted amount is unaudited pro forma information which
eliminates the effect of restructuring and non-recurring charges in
1999 and 2000
(2) The percentages pertain to the Adjusted Amounts
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Stated in thousands of dollars except for per share data)
Year Ended Year Ended
Nov. 25, 2000 Nov. 27, 1999
Unaudited Percent Percent
Adjusted of Net Adjusted of Net
Amount Amount(1) Sales (2) Amount Amount(1) sales(2)
Net sales $ 367,444 $367,444 100.0% $ 394,412 $394,412 100.0%
Cost of sales 302,281 301,681 82.1% 309,316 308,640 78.3%
Selling, general and
administrative 61,679 58,529 15.9% 72,622 72,142 18.3%
Restructuring 6,680 - 0.0% - -
------------------- -------------------
370,640 360,210 98.0% 381,938 380,782 96.5%
------------------- -------------------
Income (loss) from
operations (3,196) 7,234 2.0% 12,474 13,630 3.5%
Other income,
net 18,263 18,263 5.0% 13,744 13,744 3.5%
------------------- -------------------
Income before
income taxes 15,067 25,497 6.9% 26,218 27,374 6.9%
Income taxes 4,671 7,904 2.2% 8,264 8,732 2.2%
------------------- -------------------
Income before
cumulative effect
of accounting
change 10,396 17,593 17,954 18,642
Cumulative effect of accounting
change (net of income
taxes of $171) (364) - - -
------------------- -------------------
NET INCOME $ 10,032 $17,593 4.8% $ 17,954 $ 18,642 4.7%
=================== ===================
Basic Earnings per share:
Income before cumulative
effect of
accounting
change $ 0.88 $ 1.49 $ 1.44 $ 1.49
Cumulative effect
of accounting
change (0.03) - - -
------------------- -------------------
Net income
per share $ 0.85 $ 1.49 $ 1.44 $ 1.49
=================== ===================
Diluted Earnings per share:
Income before cumulative
effect of accounting
change 0.88 1.49 1.44 1.49
Cumulative effect of
accounting
change (0.03) - - -
------------------- -------------------
Net income
per share $ 0.85 $ 1.49 $ 1.44 $ 1.49
=================== ===================
(1) The adjusted amount is unaudited pro forma information which
eliminates the effect of restructuring and non-recurring charges in
1999 and 2000
(2) The percentages pertain to the Adjusted Amounts
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Proforma Continuing Business Information - Unaudited
(Stated in thousands of dollars)
For the quarter ended Less:
Nov. 25, 2000 As reported Adjustments Proforma
Net Sales $ 88,902 $ - $ 88,902
Cost of sales 76,352 (600) 75,752
Selling, general and
administrative 17,106 (3,150) 13,956
Restructuring 6,680 (6,680) -
----------------------------------------
100,138 (10,430) 89,708
Income (loss) from
operations $ (11,236)$10,430 $ (806)
========================================
For the quarter ended Less:
Nov. 27, 1999 As reported Adjustments Proforma
Net Sales $ 102,141 $ - $ 102,141
Cost of sales 79,309 (676) 78,633
Selling, general and
administrative 20,404 (480) 19,924
----------------------------------------
99,713 (1,156) 98,557
Income from operations $ 2,428 $1,156 $ 3,584
========================================
For the year ended Less:
Nov. 25, 2000 As reported Adjustments Proforma
Net Sales $ 367,444 $ - $ 367,444
Cost of sales 302,281 (600) 301,681
Selling, general and
administrative 61,679 (3,150) 58,529
Restructuring 6,680 (6,680) -
----------------------------------------
370,640 (10,430) 360,210
Income (loss) from
operations $ (3,196)$10,430 $ 7,234
========================================
For the year ended Less:
Nov. 27, 1999 As reported Adjustments Proforma
Net Sales $ 394,412 $ - $ 394,412
Cost of sales 309,316 (676) 308,640
Selling, general and
administrative 72,622 (480) 72,142
----------------------------------------
381,938 (1,156) 380,782
Income from operations $ 12,474 $1,156 $ 13,630
========================================
Note: The unaudited proforma information above for each of the
applicable periods eliminates the effect of restructuring and
non-recurring charges on results of operations during fiscal 1999 and
2000.
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
November 25, 2000 November 27, 1999
----------------- -----------------
ASSETS
------
Current Assets
Cash and cash equivalents $3,259 $5,740
Trade accounts receivable, net 70,309 64,731
Inventories, net of LIFO 50,201 50,206
Other current assets 6,069 5,260
Refundable income taxes 580 1,006
Deferred income taxes 6,349 9,314
------------ ------------
136,767 136,257
------------ ------------
Property and Equipment
Cost 238,660 225,529
Less accumulated depreciation 144,573 132,374
------------ ------------
94,087 93,155
------------ ------------
Other Assets
Investment securities 15,043 23,057
Investment in affiliated companies 70,201 67,558
Deferred income taxes 2,169 0
Other 28,528 22,802
------------ ------------
115,941 113,417
------------ ------------
$346,795 $342,829
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities
Accounts payable $20,203 $30,122
Accrued liabilities 21,563 26,806
------------ ------------
41,766 56,928
------------ ------------
Long-Term Liabilities
Employee benefits 10,647 10,998
Notes payable to banks 45,000 18,000
Deferred income taxes 0 1,152
------------ ------------
55,647 30,150
------------ ------------
Stockholders' Equity
Common stock 58,816 60,474
Additional paid-in capital 0 0
Retained earnings 185,321 187,973
Unrealized holding gains, net of tax 5,418 7,993
Unamortized stock compensation (173) (689)
------------ ------------
249,382 255,751
------------ ------------
$346,795 $342,829
============ ============
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Year Ended Year Ended
Nov. 25, 2000 Nov. 27, 1999
------------- -------------
Net income $10,032 $17,954
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 9,628 8,386
Equity in undistributed income of
affiliated companies (10,172) (12,587)
Provision for writedown of property
and equipment 5,800 -
Provision for losses on trade accounts
receivable 3,150 358
Deferred income taxes (286) 4,112
Net (gain) loss from sales of
investment securities (2,356) (1,795)
Net (gain) loss from sales of property
and equipment (175) (89)
Compensation earned under restricted
stock plan 240 240
Changes in long-term liabilities (351) (274)
Changes in operating assets and
liabilities:
Trade accounts receivable (8,957) (8,617)
Inventories (6,364) (7,636)
Prepaid expenses and other (1,005) (3,661)
Refundable income taxes - 7,012
Accounts payable and accrued
liabilities (6,241) 13,325
------------- ------------
Net cash provided by (used in)
operating activities (7,057) 16,728
------------- ------------
Investing Activities:
Purchases of property and equipment (17,930) (47,696)
Proceeds from sales of property and
equipment 1,338 1,370
Proceeds from sales of affiliate
companies 1,748 -
Dividends from affiliated companies 12,000 5,448
Proceeds from sales of investment
securities 5,785 37,814
Investments in affiliated companies (4,200) (5,700)
Change in investment in corporate owned
life insurance - (3,841)
Proceeds from sale of bedding division - 6,500
Issuance of notes receivable (6,000) -
Other (1,007) (1,320)
------------- ------------
Net cash used in investing
activities (8,266) (7,425)
------------- ------------
Financing Activities:
Repurchase of common stock (4,718) (17,138)
Issuance of common stock 57 59
Cash dividends (9,497) (9,983)
Borrowings under notes payable 27,000 18,000
------------- ------------
Net cash provided by (used in)
financing activities 12,842 (9,062)
------------- ------------
Change in Cash and Cash Equivalents (2,481) 241
------------- ------------
Cash and Cash Equivalents, beginning
of year 5,740 5,499
------------- ------------
Cash and Cash Equivalents, end
of year $3,259 $5,740
============== ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion