Bassett Announces Fourth Quarter and Fiscal 2003 Results.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 the results for its fourth quarter and fiscal year ended November November: see month. 29, 2003. The Company reported net income for the quarter of $3.2 million or $.28 per 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. share compared to $1.7 million or $.14 per diluted share in the fourth quarter of 2002. The improvement in earnings compared to the first three quarters of 2003 resulted from a combination of increased sales (due to opening more Bassett Furniture Direct (BFD BFD Big Freakin' Deal (polite form) BFD Bidirectional Forwarding Detection (IP networking) BFD Binary File Descriptor (computer programming) ) stores), productivity gains in both wood and 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. operations, and the success of inventory reduction programs late in the year. Manufactured inventory levels were reduced by $4 million in the fourth quarter and $10 million for the year, which in turn lowered related reserves resulting in approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1 million of additional gross profit in the fourth quarter. Fourth quarter gross profit and selling, general and administrative expenses were impacted by the consolidation of 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) Furniture, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (LRG), which is discussed in detail below. Gross margin for the quarter improved by nearly 6 percentage points compared with the fourth quarter of 2002. Approximately 60 percent of this improvement was due to the consolidation of LRG retail margins and nearly 40 percent, or 2.2 percentage points, resulted from the manufacturing productivity improvements and successful inventory reduction efforts noted above. The $4.1 million increase in selling, general, and administrative expenses during the quarter was due entirely to the consolidation of LRG's selling expenses into the Bassett results. Other income was higher for both the fourth quarter and the year due primarily to better results from the Company's investment portfolio in 2003. Sales for the fourth quarter of 2003 were $82.9 million, up 4 percent from the fourth quarter of 2002. This increase reflects the consolidation of LRG's retail sales. Sales for fiscal year 2003 were $316.9 million compared with $323.5 million for 2002. This decline was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a $17 million sales decrease with JCPenney, partially offset by the consolidation of LRG's retail sales. Overall economic conditions and an extra week (53 weeks vs. 52 weeks) in fiscal 2002 also contributed to the 2003 sales decrease. The Company reported a net loss of $.5 million or ($.04) per diluted share for the fiscal year 2003 after recognizing the cumulative effect of an accounting change discussed in detail below. The net loss in fiscal 2003 also included a previously announced $3.2 million charge related to closing its 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., facility in the first quarter. Fiscal 2003 net income (before the $4.9 million cumulative effect of an accounting change) was $4.4 million or $.38 per diluted share compared to $6.7 million of net income in fiscal 2002 or $.57 per diluted share. "Although we are not pleased with our overall earnings results for 2003, we are encouraged with the progress we demonstrated in the fourth quarter, the cash flow that we generated during the year, and the backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of prospects we developed in 2003 who will open new Bassett Furniture Direct stores in 2004," 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. "We expect 2004 to be a record year for opening BFD's and remain committed to our goal of 150 BFD stores by the end of 2005." As previously announced by the Company, Bassett has adopted FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). Interpretation No. 46 "Consolidation of Variable Interest Entities," (FIN fin, organ of locomotion characteristic of fish and consisting of thin tissue supported by cartilaginous or bony rays. In some fish, e.g., the eel, a single fin extends from the back, around the tail, and along the ventral surface. 46) for LRG. FIN 46 addresses the consolidation of entities known as variable interest entities by a primary beneficiary beneficiary Person or entity (e.g., a charity or estate) that receives a benefit from something (e.g., a trust, life-insurance policy, or contract). A primary beneficiary receives proceeds from a trust or insurance policy before any other. of the entity. FIN 46 consolidation criteria criteria (krītēr´ē  ),n. are based on an analysis of both contributed capital and projected risks and rewards, not control, and represents a significant and complex modification A change or alteration in existing materials. Modification generally has the same meaning in the law as it does in common parlance. The term has special significance in the law of contracts and the law of sales. of previous accounting principles. LRG had previously been accounted for using the equity method. As a result of the most recent revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to FIN 46, issued in late December December: see month. by the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). , the Company 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: LRG as of the beginning of fiscal year 2003 and not at the beginning of the fourth quarter as was earlier announced. Adopting FIN 46 for LRG as of the beginning of year provides better and more complete financial reporting for 2003, and improved comparability for future periods. The adoption of FIN 46 resulted in a non-cash cumulative effect charge of $4.9 million (net of tax) or ($.42) per diluted share in the first quarter of 2003. Attached are schedules which present the first three quarters of fiscal 2003 adjusted for the consolidation of LRG pursuant to the adoption of FIN 46 as of the beginning of fiscal 2003 with reported fourth quarter and 2003 results, and compare the previously filed results with the adjusted results for each of the first three quarters. The Company's November 29, 2003 balance sheet, with no debt and a sizeable investment portfolio, remains strong and continues to bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz its retail growth strategy. The Company generated $22.6 million of cash from operating activities, nearly double the amount generated in fiscal 2002, due primarily to inventory reduction programs which were successfully executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. in 2003. The Company used this cash and net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from certain of its investments to repay $3.0 million of debt, fund $6.2 million of 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. , fund $9.3 million of dividends, and increase its cash balance by nearly $14 million. The Bassett Furniture Direct(R) retail store program continues to grow with 100 BFD stores currently in operation. Licensees opened 19 stores in 2003 and the Company expects licensees to open 20 to 25 new stores in fiscal 2004, spread evenly over the year. Sales to BFD stores were 53 percent of wholesale sales in 2003 and are planned to 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. 63 percent of total Bassett wholesale sales in 2004. The Company's primary focus continues to be expanding and improving its BFD store program. "We will intensify in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: our efforts in these areas in 2004 while we take the necessary actions to continue to deliver value to our retail customers and further improve our 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 ," said Mr. Spilman. Towards this effort, the Company is further consolidating upholstery production from a smaller facility in 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., to its primary upholstery facility in Newton Newton, cities, United States Newton. 1 City (1990 pop. 16,700), seat of Harvey co., S central Kans., in an agricultural area; inc. 1872. , N.C. The Company expects to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. a 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. in the range of $.6 million to $1 million in the first quarter of 2004 related to these and related actions. After this consolidation is complete, the Company will have reduced the number of its manufacturing facilities from 13 in early 2001 to seven in early 2004, significantly lowering its overall fixed cost structure. "December order and shipment levels have been soft and business conditions for our Company and our industry remain challenging," added Mr. Spilman. "We are cautiously cau·tious adj. 1. Showing or practicing caution; careful. 2. Tentative or restrained; guarded: felt a cautious optimism that the offer would be accepted. optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op as we enter the new year, hard at work on new products which we will introduce in April and on our plans to strengthen our presence on the West Coast, including new stores in 2004, and a new distribution center and a small upholstery operation in 2005 to support this growth." Other opportunities and issues that will confront the Company in the first half of 2004 include realizing the proceeds of 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). manufacturing facility and completing the complex analysis of FIN 46 for its other equity investees. The Company has not determined whether any other affiliated af·fil·i·ate v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates v.tr. 1. To adopt or accept as a member, subordinate associate, or branch: entities will need to be consolidated based on this interpretation. 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 March 1, 2004, to shareholders of record on February February: see month. 13, 2004, and fixed January January: see month. 14, 2004 as the record date for determining stockholders entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to notice of and to vote at the annual meeting of stockholders to be held on February 24, 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 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. 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 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 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 13 Weeks Ended
Nov. 29, 2003 Nov. 30, 2002
------------------------------------------
Amount Percent of Amount Percent
Net Sales of Net
Sales
------------------------------------------
Net sales $82,944 100.0% $79,428 100.0%
Cost of sales 60,535 73.0% 62,695 78.9%
----------------------- ---------------
Gross profit 22,409 27.0% 16,733 21.1%
Selling, general and
administrative 20,025 24.1% 15,967 20.1%
----------------------- ---------------
Income from operations 2,384 2.9% 766 1.0%
Other income, net 1,367 1.6% 1,037 1.3%
----------------------- ---------------
Income before income taxes 3,751 4.5% 1,803 2.3%
Income taxes (546) -0.7% (136) -0.2%
----------------------- ---------------
Net income $3,205 3.9% $1,667 2.1%
======================= ===============
Basic earnings per share: $0.28 $0.14
============== ========
Diluted earnings per share: $0.28 $0.14
============== ========
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Stated in thousands of dollars except for per share data)
52 Weeks Ended 53 Weeks Ended
Nov. 29, 2003 Nov. 30, 2002
------------------------- -------------------
Amount Percent of Amount Percent of
Net Sales Net Sales
------------------------- -------------------
Net sales $316,857 100.0% $323,487 100.0%
Cost of sales 234,861 74.1% 254,993 78.8%
----------------------- -------------------
Gross profit 81,996 25.9% 68,494 21.2%
----------------------- -------------------
Selling, general and
administrative 80,026 25.3% 60,987 18.9%
Restructuring and
impaired asset charges 3,200 1.0% 1,251 0.4%
----------------------- -------------------
83,226 26.3% 62,238 19.2%
----------------------- -------------------
Income (loss) from
operations (1,230) -0.4% 6,256 1.9%
Other income, net 6,097 1.9% 2,854 0.9%
----------------------- -------------------
Income before income
taxes and cumulative
effect of accounting
change 4,867 1.5% 9,110 2.8%
Income taxes (462) -0.1% (2,369) -0.7%
----------------------- -------------------
Income before cumulative
effect of accounting
change 4,405 1.4% 6,741 2.1%
----------------------- -------------------
Cumulative effect of
accounting change, net
of income tax (4,875) -1.5% - 0.0%
----------------------- -------------------
Net income (loss) $(470) -0.1% $6,741 2.1%
======================= ===================
Basic earnings (loss) per
share:
Income before cumulative
effect of accounting change $0.38 $0.58
Cumulative effect of
accounting change (0.42) -
--------------- ---------
Net income (loss) per
share $(0.04) $0.58
=============== =========
Diluted earnings (loss)
per share:
Income before cumulative
effect of accounting change 0.38 0.57
Cumulative effect of
accounting change (0.42) -
--------------- ---------
Net income (loss) per
share $(0.04) $0.57
=============== =========
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Stated in thousands of dollars except for per share data)
Assets Nov. 29, 2003 Nov. 30, 2002
--------------------- -----------------
Current assets
Cash and cash equivalents $15,181 $1,371
Accounts receivable, net 39,230 44,806
Inventories 36,454 43,449
Refundable income taxes - 2,924
Deferred income taxes 5,307 3,600
Other current assets 4,525 6,816
--------------------- -----------------
Total current assets 100,697 102,966
--------------------- -----------------
Property and equipment, net 50,681 59,365
--------------------- -----------------
Investments 65,151 63,248
Retail real estate, net 32,930 31,177
Notes receivable, net 15,399 18,761
Other, net 15,522 15,363
--------------------- -----------------
129,002 128,549
--------------------- -----------------
Total assets $280,380 $290,880
===================== =================
Liabilities and Stockholders'
Equity
Current liabilities
Accounts payable $15,127 $17,738
Accrued liabilities 22,341 16,406
--------------------- -----------------
Total current liabilities 37,468 34,144
--------------------- -----------------
Long-term liabilities
Employee benefits 9,824 10,152
Long-term debt - 3,000
Distributions in excess of
affiliate earnings 13,070 13,941
--------------------- -----------------
22,894 27,093
--------------------- -----------------
Commitments and Contingencies
Stockholders' equity
Common stock, par value $5
a share, 50,000,000
shares authorized,
issued and outstanding -
11,599,936 in 2003 and
11,660,587 in 2002 58,000 58,303
Retained earnings 159,487 169,789
Accumulated other
comprehensive income -
unrealized holding
gains, net of income
tax 2,531 1,551
--------------------- -----------------
Total stockholders' equity 220,018 229,643
--------------------- -----------------
Total liabilities and
stockholders' equity $280,380 $290,880
===================== =================
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Stated in thousands of dollars)
52 Weeks Ended 53 Weeks Ended
Nov. 29, 2003 Nov. 30, 2002
--------------------------------
Operating Activities
Net income (loss) $(470) $6,741
Adjustments to reconcile net income to
net cash provided
by operating activities:
Depreciation and amortization 10,521 10,804
Equity in undistributed income
of investments (11,234) (6,231)
Provision for write-down of
property and equipment 1,530 -
Cumulative effect of
accounting change, net of tax 4,875 -
Provision for losses on trade
accounts receivable 604 237
Provision for corporate owned life
insurance - 705
Net gain from sales of
investment securities (289) (707)
Net gain from sales of
property and equipment (60) -
Compensation earned under
restricted stock plan - 222
Deferred income taxes (1,154) 2,215
Changes in employee benefit
liabilities (328) (444)
Changes in operating assets
and liabilities, exclusive of
assets and liabilities impacted
by consolidation of LRG Trade
accounts receivable 307 5,874
Inventories 11,144 (7,695)
Refundable income taxes 2,924 1,757
Other current assets 3,563 3,835
Accounts payable and
accrued liabilities 628 (5,437)
--------------- --------------
Net cash provided by
operating activities 22,561 11,876
--------------- --------------
Investing Activities
Purchases of property and
equipment (6,215) (9,659)
Proceeds from sales of property
and equipment 729 -
Proceeds from sales of
investments 26,776 4,406
Purchases of investments (21,776) -
Dividends from an affiliate 5,154 5,623
Investments in unconsolidated
affiliated companies (90) (2,419)
Other, net 589 2,164
--------------- --------------
Net cash provided by
investing activities 5,167 115
--------------- --------------
Financing Activities
Repayments under revolving credit
arrangement, net (3,000) (3,000)
Repayment of note payable to bank (784) (1,189)
Repayment of real estate borrowing - (1,482)
Issuance of common stock, net 320 315
Repurchases of common stock (1,193) (1,253)
Cash dividends (9,261) (9,358)
--------------- --------------
Net cash used in
financing activities (13,918) (15,967)
--------------- --------------
Net change in cash and cash
equivalents 13,810 (3,976)
--------------- --------------
Cash and cash equivalents, beginning
of year 1,371 5,347
--------------- --------------
Cash and cash equivalents, end of year $15,181 $1,371
=============== ==============
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income - Unaudited
ADJUSTED FOR CONSOLIDATION OF LRG PURSUANT TO THE ADOPTION OF FIN 46
(Stated in thousands of dollars except for per share data)
Fiscal 2003
--------------------------------------------
First Second Third Fourth
Quarter Quarter Quarter Quarter 2003
--------------------------------------------
Net sales $77,614 $76,866 $79,433 $82,944 $316,857
Cost of sales 57,410 57,318 59,598 60,535 234,861
--------------------------------------------
Gross profit 20,204 19,548 19,835 22,409 81,996
--------------------------------------------
Selling, general and
administrative 20,298 19,990 19,713 20,025 80,026
Restructuring and impaired
fixed asset charges 3,200 - - - 3,200
--------------------------------------------
Income (loss) from
operations (3,294) (442) 122 2,384 (1,230)
--------------------------------------------
Other income, net 1,142 1,821 1,767 1,367 6,097
--------------------------------------------
Income before income taxes
and cumulative effect of
accounting change (2,152) 1,379 1,889 3,751 4,867
Income taxes 602 (186) (332) (546) (462)
--------------------------------------------
Income before cumulative
effect of accounting
change (1,550) 1,193 1,557 3,205 4,405
--------------------------------------------
Cumulative effect of
accounting change, net of
income tax (4,875) - - - (4,875)
--------------------------------------------
Net income (loss) $(6,425) $1,193 $1,557 $3,205 $(470)
============================================
Basic earnings (loss) per
share:
Income (loss) before
cumulative effect of
accounting change $(0.13) $0.10 $0.13 $0.28 $0.38
Cumulative effect of
accounting change (0.42) - - - (0.42)
--------------------------------------------
Net income (loss) per
share $(0.55) $0.10 $0.13 $0.28 $(0.04)
============================================
Diluted earnings (loss)
per share:
Income (loss) before
cumulative effect of
accounting change $(0.13) $0.10 $0.13 $0.28 $0.38
Cumulative effect of
accounting change (0.42) - - - (0.42)
--------------------------------------------
Net income (loss) per
share $(0.55) $0.10 $0.13 $0.28 $(0.04)
============================================
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income - Unaudited
ADJUSTED FOR CONSOLIDATION OF LRG PURSUANT TO THE ADOPTION OF FIN 46
(Stated in thousands of dollars except for per share data)
Fiscal 2003
--------------------------------
First Qtr. First Qtr.
As filed Adjusted Difference
--------------------------------
Net sales $73,282 $77,614 $4,332
Cost of sales 57,444 57,410 (34)
--------------------------------
Gross profit 15,838 20,204 4,366
--------------------------------
Selling, general and
administrative 15,311 20,298 4,987
Restructuring and impaired
fixed asset charges 3,200 3,200 -
--------------------------------
Income (loss) from operations (2,673) (3,294) (621)
--------------------------------
Other income, net 826 1,142 316
--------------------------------
Income before income taxes and
cumulative effect of
accounting change (1,847) (2,152) (305)(a)
Income tax benefit 517 602 85
--------------------------------
Income before cumulative effect
of accounting change (1,330) (1,550) (220)
--------------------------------
Cumulative effect of accounting
change, net of income tax - (4,875) (4,875)
--------------------------------
Net income (loss) $(1,330) $(6,425) $(5,095)
================================
Basic earnings (loss) per
share:
Income (loss) before cumulative
effect of
accounting change $(0.11) $(0.13) $(0.02)
Cumulative effect of accounting
change - (0.42) (0.42)
--------------------------------
Net income (loss) per share $(0.11) $(0.55) $(0.44)
================================
Diluted earnings (loss) per
share:
Income (loss) before cumulative
effect of
accounting change $(0.11) $(0.13) $(0.02)
Cumulative effect of accounting
change - (0.42) (0.42)
--------------------------------
Net income (loss) per share $(0.11) $(0.55) $(0.44)
================================
(a) The $305 is the minority portion of LRG's first quarter losses
which were not reflected in Bassett's first quarter results.
As filed, LRG was being accounted for using the equity method.
Beginning in the second quarter of 2003, all of LRG's losses
were recorded by Bassett.
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income - Unaudited
ADJUSTED FOR CONSOLIDATION OF LRG PURSUANT TO THE ADOPTION OF FIN 46
(Stated in thousands of dollars except for per share data)
Fiscal 2003
-------------------------------------
Second Qtr. Second Qtr.
As filed Adjusted Difference
-------------------------------------
Net sales $71,529 $76,866 $5,337
Cost of sales 56,398 57,318 920
-------------------------------------
Gross profit 15,131 19,548 4,417
-------------------------------------
Selling, general and
administrative 15,409 19,990 4,581
Restructuring and impaired
fixed asset charges - - -
-------------------------------------
Income (loss) from operations (278) (442) (164)
-------------------------------------
Other income, net 1,657 1,821 164
-------------------------------------
Income before income taxes and
cumulative effect of
accounting change 1,379 1,379 -
Income taxes (186) (186) -
-------------------------------------
Income before cumulative effect
of accounting change 1,193 1,193 -
-------------------------------------
Cumulative effect of accounting
change, net of income tax - - -
-------------------------------------
Net income $1,193 $1,193 $-
=====================================
Basic earnings per share:
Income before cumulative effect
of
accounting change $0.10 $0.10 $-
Cumulative effect of accounting
change - - -
-------------------------------------
Net income per share $0.10 $0.10 $-
=====================================
Diluted earnings per share:
Income before cumulative effect
of
accounting change $0.10 $0.10 $-
Cumulative effect of accounting
change - - -
-------------------------------------
Net income per share $0.10 $0.10 $-
=====================================
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income - Unaudited
ADJUSTED FOR CONSOLIDATION OF LRG PURSUANT TO THE ADOPTION OF FIN 46
(Stated in thousands of dollars except for per share data)
Fiscal 2003
---------------------------------------
Third Qtr. Third Qtr.
As filed Adjusted Difference
---------------------------------------
Net sales $74,434 $79,433 $4,999
Cost of sales 58,797 59,598 801
---------------------------------------
Gross profit 15,637 19,835 4,198
---------------------------------------
Selling, general and
administrative 15,037 19,713 4,676
Restructuring and impaired
fixed asset charges - - -
---------------------------------------
Income from operations 600 122 (478)
---------------------------------------
Other income, net 1,289 1,767 478
---------------------------------------
Income before income taxes
and cumulative effect of
accounting change 1,889 1,889 -
Income tax provision (332) (332) -
---------------------------------------
Income before cumulative
effect of accounting change 1,557 1,557 -
---------------------------------------
Cumulative effect of
accounting change, net of
income tax - - -
---------------------------------------
Net income $1,557 $1,557 $-
=======================================
Basic earnings per share:
Income before cumulative
effect of
accounting change $0.13 $0.13 $-
Cumulative effect of
accounting change - - -
---------------------------------------
Net income per share $0.13 $0.13 $-
=======================================
Diluted earnings per share:
Income (loss) before
cumulative effect of
accounting change $0.13 $0.13 $-
Cumulative effect of
accounting change - - -
---------------------------------------
Net income per share $0.13 $0.13 $-
=======================================
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