Bassett Announces Third Quarter 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 earnings results for the third fiscal quarter ended August 25, 2001. As previously announced in August 2001, Bassett continues to realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. 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. and, as a result, $4.4 million of pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and non-recurring charges were recorded in the third quarter of fiscal 2001, most of which are non-cash. Excluding the nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". and including property gains, diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were ($.01) for the third quarter versus $.37 for the prior year. Diluted earnings per share (including one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges in 2001) were ($.24) for the third quarter compared with $.37 for the prior year period. 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 the third quarter of 2001 were $71.3 million compared with $91.2 million in the prior year. The company's sales declined due largely to a continued soft retail furniture environment and the loss of two of its major customers to bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most in late 2000. 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. of $4.0 million and $0.4 million of non-recurring charges for the third quarter of 2001 are expected to result in pretax annual savings of $8.0 million. Of the $4.0 million in restructuring charges, $3.0 million was restructuring charges for non-cash asset writedowns and $1.0 million was for 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 and other related employee costs associated with plant closures. The non-recurring charges relate to inventory write downs, disposal costs and plant clean up related to plant closures. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.5 million in related restructuring charges are expected to be incurred in the fourth quarter of 2001. Year to date restructuring charges now total $6.6 million from the closure of three domestic wood manufacturing facilities and include fixed asset write-downs and severance cost for terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: employees. Total 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. cost savings from these plant closings and related actions will 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. $10 million. Gains from sale of property and equipment of $1 million for the quarter ended and $4 million for the nine months ended August 25, 2001 relate to the sale of Bassett's former showroom in Thomasville Thomasville. 1 City (1990 pop. 17,457), seat of Thomas co., SW Ga., near the Fla. line; inc. 1831. It is a farm trade center, with a large fresh-vegetable market. and two smaller plants in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. . "Operating results were generally in line with our pre-release earlier this month. We are pleased with the progress we have made on reducing inventory and 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 levels," 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 that soft business conditions in the industry will continue to impact operating results for the remainder of 2001. While the economy has suffered a major shock from the devastating dev·as·tate tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates 1. To lay waste; destroy. 2. To overwhelm; confound; stun: was devastated by the rude remark. events earlier this month, the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. prospects for economic growth remain sound. In addition to the interest rate cut this month, the Fed has supplied record amounts of money to the banking system in an effort to cushion Cushion In the context of project financing, the extra amount of net cash flow remaining after expected debt service. cushion See call protection. the impact and help stabilize stabilize See peg. the economy." The Company continued its focus on working capital management during this period of relatively weak demand for 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. . On a year to date basis, inventories and receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed have been reduced by $27 million. For the third quarter alone, inventories were reduced by $8 million. As a result of these efforts, the Company's debt has been reduced from $45 million as of November November: see month. 25, 2000 to $13 million as of the end of the third quarter. Bassett will continue to focus on developing its brand and growing its sales channels including Bassett Furniture Direct (BFD BFD Big Freakin' Deal (polite form) BFD Bidirectional Forwarding Detection (IP networking) BFD Binary File Descriptor (computer programming) ), At Home with Bassett, and its Five Star dealer network. The company currently has 63 BFD stores and expects to open seven stores before the end of the year, which should result in increased sales for the fourth quarter. Excellent customer service, coupled with quality products and a network of stores dedicated to building relationships with consumers will help the company be more profitable in the future. Also on September September: see month. 25, 2001, Bassett's Board of Directors 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 December December: see month. 3, 2001, to shareholders of record November 16, 2001. Bassett Furniture Industries Inc., based in Bassett, Va., is one of the world's leading manufacturers and marketers of branded home furnishings. 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 third quarter of fiscal year 2001, 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 Operations - Unaudited
(Stated in thousands of dollars except for per share data)
Quarter Ended Quarter Ended
August 25, 2001 August 26, 2000
-------------------------------------
Percent of Percent of Percent
Amount Net Sales Amount Net Sales Change
-----------------------------------------------
Net sales $ 71,290 100.0% $ 91,155 100.0% (21.8)%
Cost of sales 61,133 85.8% 75,287 82.6% (18.8)%
Selling, general
and administrative 12,805 18.0% 13,606 14.9% (5.9)%
Gain on sale of
property and equipment (985) -
Restructuring charges 3,973 -
--------- ---------
76,926 107.9% 88,893 97.5% (13.5)%
--------- ---------
Income (loss) from
operations (5,636) -7.9% 2,262 2.5%
Other income, net 1,323 1.9% 4,069 4.5%
--------- ---------
Income (loss) before
income taxes (4,313) -6.0% 6,331 6.9%
Income (taxes) benefit 1,479 2.1% (2,026) -2.2%
--------- ---------
Net income (loss) $ (2,834) $ 4,305
========= =========
Basic earnings (loss)
per share: $ (0.24) $ 0.37
========= =========
Diluted earnings (loss)
per share: $ (0.24) $ 0.37
========= =========
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations - Unaudited
(Stated in thousands of dollars except for per share data)
Nine Months Ended Nine Months Ended
August 25, 2001 August 26, 2000
----------------------------------------
Percent of Percent of Percent
Amount Net Sales Amount Net Sales Change
-----------------------------------------------
Net sales $ 227,608 100.0% $ 278,542 100.0% (18.3)%
Cost of sales 191,799 84.3% 225,929 81.1% (15.1)%
Selling, general
and administrative 39,728 17.5% 44,573 16.0% (10.9)%
Gain on sale of
property and
equipment (4,013) -
Restructuring
charges 6,639 -
--------- ---------
234,153 102.9% 270,502 97.1% (13.4)%
--------- ---------
Income (loss) from
operations (6,545) -2.9% 8,040 2.9%
Other income, net 4,678 2.1% 11,807 4.2%
--------- ---------
Income (loss)
before income
taxes and
cumulative effect
of accounting
change (1,867) -0.8% 19,847 7.1%
Income (taxes) benefit 747 0.3% (6,309) -2.3%
--------- ---------
Income before
cumulative effect of
accounting change (1,120) 13,538
Cumulative effect of
accounting change
(net of income taxes
of $171) - (364)
--------- ---------
NET INCOME (LOSS) $ (1,120) -0.5% $ 13,174 4.7%
========== =========
Basic earnings
per share:
Income (loss)
before cumulative
effect of
accounting change $ (0.10) $ 1.14
Cumulative effect
of accounting
change - (0.03)
---------- ---------
Net income (loss)
per share $ (0.10) $ 1.11
========== =========
Diluted earnings per
share:
Income (loss)
before
cumulative
effect of
accounting
change (0.10) 1.14
Cumulative effect
of accounting
change - (0.03)
---------- ---------
Net income (loss)
per share $ (0.10) $ 1.11
========== =========
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Proforma Continuing Business Information - Unaudited
(Stated in thousands of dollars)
For the quarter ended Less:
August 25, 2001 As reported Adjustments Proforma
--------------------- ------------------------------------
Net Sales $ 71,290 $ - $ 71,290
Cost of sales 61,133 (450) 60,683
Selling, general
and administrative 12,805 12,805
Gain on Sale of
property and equipment (985) 985 -
Restructuring charges 3,973 (3,973) -
------------------------------------
76,926 (3,438) 73,488
Income (loss) from
operations $ (5,636) $ 3,438 $ (2,198)
====================================
For the nine months ended Less:
August 25, 2001 As reported Adjustments Proforma
------------------------- ------------------------------------
Net Sales $ 227,608 $ - $ 227,608
Cost of sales 191,799 (450) 191,349
Selling, general
and administrative 39,728 39,728
Gain on Sale of
property and equipment (4,013) 4,013 -
Restructuring charges 6,639 (6,639) -
------------------------------------
234,153 (3,076) 231,077
Income (loss)
from operations $ (6,545) $ 3,076 $ (3,469)
====================================
Note: The unaudited proforma Proforma A financial projection based on assumptions. information above for each of the applicable periods eliminates the effect of restructuring and non-recurring charges on results of operations during fiscal 2001.
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
Preliminary and Unaudited
August 26, 2001 November 25, 2000
--------------- -----------------
ASSETS
------
Current Assets
Cash and cash equivalents $ 4,025 $ 3,259
Trade accounts receivable,
net 56,452 70,309
Inventories, net of LIFO 31,815 50,201
Other current assets 6,832 6,069
Refundable income taxes 580 580
Deferred income taxes 6,457 6,457
--------------- -----------------
106,161 136,875
--------------- -----------------
Property and Equipment
Cost 228,256 230,043
Less accumulated depreciation 136,179 136,071
--------------- -----------------
92,077 93,972
--------------- -----------------
Other Assets
Investment securities 10,807 15,043
Investment in affiliated
companies 45,653 69,972
Deferred income taxes 5,941 2,061
Other 33,762 28,757
--------------- -----------------
96,163 115,833
--------------- -----------------
---------------------------
---------------------------
$ 294,401 $ 346,680
=============== =================
LIABILITIES AND STOCKHOLDERS'
EQUITY
-----------------------------
Current Liabilities
Accounts payable $ 12,292 $ 20,310
Accrued liabilities 19,852 21,583
--------------- -----------------
32,144 41,893
--------------- -----------------
Long-Term Liabilities
Employee benefits 10,487 10,647
Notes payable 13,000 45,000
--------------- -----------------
23,487 55,647
--------------- -----------------
Stockholders' Equity
Common stock 58,675 58,824
Additional paid in capital - -
Retained earnings 176,956 185,293
Unrealized holding gains,
net of tax 3,404 5,418
Unamortized stock
compensation (265) (395)
--------------- -----------------
238,770 249,140
--------------- -----------------
$ 294,401 $ 346,680
=============== =================
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - Unaudited/Preliminary
Nine Months Ended Nine Months Ended
August 25, 2001 August 26, 2000
----------------- -----------------
Net income (loss) $ (1,120) $ 13,174
Adjustments to reconcile net
income (loss) to net cash
provided by (used in) operating
activities:
Depreciation and amortization 8,357 7,454
Equity in undistributed income
of affiliated companies (4,367) (8,888)
Provision for write-down of
property and equipment 4,547 -
Provision for deferred income
taxes (3,880) 4,312
Net gain from sales of
investment securities (1,502) (1,585)
Net gain from sales of property
and equipment (4,013) (175)
Net gain on financial
instrument (448) (1,394)
Compensation earned under
restricted stock plan 130 180
Changes in long-term liabilities (160) (339)
Changes in operating assets
and liabilities:
Trade accounts receivable 8,717 (6,466)
Inventories 18,385 (10,708)
Prepaid expenses and other (763) (1,786)
Accounts payable and accrued
liabilities (9,300) (5,632)
--------------- -------------
Net cash provided by (used in)
operating activities 14,583 (11,853)
--------------- -------------
Investing Activities:
Purchases of property and
equipment (11,953) (16,151)
Proceeds from sales of property
and equipment 5,114 1,330
Proceeds from sales of affiliate
investments - 1,748
Dividends from affiliated
companies 28,782 2,000
Proceeds from sales of investment
securities 2,590 4,772
Investment in affiliated
companies - (4,200)
Other, net 1,016 (2,616)
--------------- -------------
Net cash provided by (used in)
investing activities 25,549 (13,117)
--------------- -------------
Financing Activities:
Borrowings (repayments) under
notes payable (32,000) 33,500
Issuance of common stock 219 -
Repurchases of common stock (550) (4,587)
Cash dividends (7,035) (7,142)
--------------- -------------
Net cash provided by (used in)
financing activities (39,366) 21,771
--------------- -------------
Change in Cash and Cash Equivalents 766 (3,199)
--------------- -------------
Cash and Cash Equivalents,
beginning of period 3,259 5,740
--------------- -------------
Cash and Cash Equivalents, end of
period $ 4,025 $ 2,541
=============== ==============
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion