Bassett Furniture Holds Annual Meeting, Announces Spilman CEO and First Quarter Earnings.Business Editors 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. , N.C.--(BUSINESS WIRE)--March 28, 2000 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. , in its annual meeting of shareholders today announced that 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., formerly president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , has been elected chief executive officer. The company also announced earnings results for the first quarter of fiscal 2000, which ended February February: see month. 26. Speaking to shareholders, outgoing CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Fulton, said, "Bassett's board of directors this morning elected Rob Spilman Jr. chief executive officer. He continues as president. I will remain board chairman, but effective immediately, I will be a non-executive chairman. This company is in excellent hands with Rob Spilman as its leader. He knows the company and the industry better than anyone, and he has demonstrated again and again his ability to lead Bassett into its very bright future." Commenting on the transformation of Bassett during Fulton's three years as chief executive, Spilman described a consolidation of manufacturing capacity from 42 to 14 plants, refinement of distribution channels to focus on major retailers, Bassett Furniture Direct stores (BFD BFD Big Freakin' Deal (polite form) BFD Bidirectional Forwarding Detection (IP networking) BFD Binary File Descriptor (computer programming) ) and At Home with Bassett retailers, a major investment in development of the Bassett brand, a four percentage point improvement in manufacturing gross margin, and a doubling of operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. . Mr. Spilman outlined long range plans that include a continued aggressive expansion of BFD stores and significant top line growth. For the first quarter of fiscal 2000, 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 $.39 before the cumulative effect of an accounting change versus $.34 in the prior year. 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 quarter were $95.0 million, down from $99.8 million; sales declined because of the spin off of two operations, the bedding division and retail operations, from sales since the first quarter of 1999. The bedding division was sold in May 1999; Bassett continues to receive royalties on sales of bedding under the Bassett brand name. The company's retail stores were consolidated in December 1999 with those of the licensed Bassett Furniture Direct (BFD) stores operated by Phillip and Ronnie Ladin, forming a joint venture known as The Ladin Retail Group (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) ). Bassett's interest in profits and losses from this joint venture are reported in other income. The consolidation of the retail business with the LRG joint venture was a factor in lower levels of both gross profit and selling, general and administrative expenses in 2000 versus 1999. Also, the Company's new table top plant negatively impacted Wood Division gross margins, due to continued startup related costs. Other income was $3.7 million in 2000, versus $3.4 million in 1999. Other income was affected by Bassett's share of the loss in the LRG joint venture, which approximated $1 million; this loss was more than offset by income from other investments. In the first quarter of fiscal 2000, the Company recognized a cumulative effect of an accounting change of $535,000 ($364,000 after tax) or $.03 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 as result of changing its accounting policy regarding start-up Start-up The earliest stage of a new business venture. costs. Pursuant to the AICPA AICPA See American Institute of Certified Public Accountants (AICPA). issued SOP 98-5, "Reporting on the Costs of Start-up Activities," any previously capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. start-up costs were required to be written-off as a cumulative effect of an accounting change. Accordingly, the Company has written-off the unamortized balance of the previously capitalized store opening related start-up costs. Commenting on earnings for the quarter, Robert H. Spilman Jr., stated, "We are generally pleased with the results, particularly with the strength in sales volume of our wood products. The transition of our retail operations to the LRG joint venture is moving somewhat more slowly that originally expected, but we are beginning to see good progress. Retail sales were strong in both January and February, and we anticipate that our media advertising in March will result in further positive comparisons." At the meeting of shareholders, Bassett stated that it is continuing its share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program and has increased the number of shares it is authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. under the current program. As of February 26, approximately 63% of the current $40 million share repurchase program had been completed. Also today, Bassett's Board of Directors declared a regular quarterly dividend of $.20 per share payable June 1, 2000, to shareholders of record May 16, 2000. Bassett Furniture Industries, Inc., based in Bassett, Va., is a manufacturer and marketer of branded home furnishings. The company operates 14 plants in five states, and licenses 52 Bassett Furniture Direct stores nationwide. 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 new Internet See Web 2.0 and Internet2. site at http://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 financial results for periods beyond the first quarter of fiscal year 2000, profitable growth potential, increased future earnings, improved margins and the impact of media advertising on retail sales 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: actual pre-tax losses for the LRG retail operation, 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
Feb. 26, 2000 Feb. 27, 1999
Pct. of Pct. of Pct.
Amount Net Sales Amount Net Sales Change
Net sales $94,981 100.0% $99,809 100.0% (4.8)%
Cost of sales 76,408 80.4% 80,233 80.4% (4.8)%
Selling, general and
administrative 15,293 16.1% 16,530 16.6% (7.5)%
91,701 96.5% 96,763 96.9% (5.2)%
Income from operations 3,280 3.5% 3,046 3.1% 7.7%
Other income, net 3,658 3.8% 3,352 3.4% 9.1%
Income before income
taxes 6,938 7.3% 6,398 6.4% 8.4%
Income taxes 2,220 2.3% 1,983 2.0% 12.0%
Income before cumulative
effect of accounting
change 4,718 $ 4,415 6.9%
Cumulative effect of accounting
change (net of income
taxes of $171) (364) -
NET INCOME $ 4,354 4.6% $ 4,415 4.4% (1.4)%
Basic Earnings per share:
Income before cumulative
effect of accounting
change $ 0.39 $ 0.34
Cumulative effect of
accounting change (0.03) -
Net income per share $ 0.36 $ 0.34
Diluted Earnings per share:
Income before cumulative
effect of accounting
change 0.39 0.34
Cumulative effect of
accounting change (0.03) -
Net income per share $ 0.36 $ 0.34
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
Preliminary and Unaudited
February 26, 2000 November 27, 1999
ASSETS
Current Assets
Cash and cash
equivalents $2,599 $5,740
Trade accounts
receivable, net 69,556 64,731
Inventories, net of LIFO 49,584 50,206
Prepaid expenses 4,583 5,260
Refundable income taxes 1,006 1,006
Deferred income taxes 9,314 9,314
136,642 136,257
Property and Equipment
Cost 233,317 227,439
Less accumulated
depreciation 135,964 134,284
97,353 93,155
Other Assets
Investment securities 21,964 23,057
Investment in affiliated
companies 71,803 67,558
Investment in joint
venture 4,768 0
Other 21,332 22,802
119,867 113,417
$353,862 $342,829
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $26,606 $30,122
Accrued liabilities 20,662 26,806
47,268 56,928
Long-Term Liabilities
Employee benefits 10,919 10,998
Deferred income taxes 3,429 1,152
Notes payable 37,000 18,000
51,348 30,150
Stockholders' Equity
Common stock 59,446 60,474
Additional paid in capital 0 0
Retained earnings 188,904 187,973
Unrealized holding gains,
net of tax 7,174 7,993
Unamortized stock
compensation (278) (689)
255,246 255,751
$353,862 $342,829
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - Unaudited/Preliminary
Quarter Ended Quarter Ended
Feb. 26, 2000 Feb. 27, 1999
Net income $4,354 $4,415
Adjustments to reconcile net
income to net cash provided
by (used in) operating activities:
Depreciation and amortization 2,677 2,161
Equity in undistributed income
of affiliated companies (4,080) (2,288)
Deferred income taxes 2,277 1,202
Net (gain) loss from sales of
investment securities - (391)
Net (gain) loss from sales of
property and equipment - -
Compensation earned under restricted
stock plan 60 60
Changes in long-term liabilities (79) (117)
Changes in operating assets and
liabilities:
Trade accounts receivable (5,054) (5,006)
Inventories (5,386) 1,506
Prepaid expenses 481 (400)
Income taxes - 820
Accounts payable and
accrued liabilities (739) (2,360)
Net cash provided by (used in)
operating activities (5,489) (398)
Investing Activities:
Purchases of property and
equipment (7,979) (5,411)
Proceeds from sales of
property and equipment 0 970
Proceeds from sales of investment
securities 0 14,076
Investments in affiliated
companies (4,200) (5,850)
Other 863 308
Net cash provided by (used in)
investing activities (11,316) 4,093
Financing Activities:
Borrowings under notes payable 19,000 0
Issuance of common stock 0 15
Repurchases of common stock (2,943) (3,778)
Cash dividends (2,393) (2,551)
Net cash provided by (used in)
financing activities 13,664 (6,314)
Change in Cash and Cash Equivalents (3,141) (2,619)
Cash and Cash Equivalents,
beginning of year 5,740 5,499
Cash and Cash Equivalents,
end of quarter $2,599 $2,880
Note: Changes in operating assets Operating Assets Another term for working capital. and liabilities include the contribution of retail segment net operating assets and liabilities of $1.6 million to the LRG joint venture. --30--PS/ch* AH-BC/ch CONTACT: Bassett Furniture Industries Inc., Thomasville Grover S. Elliott, Investor Relations Investor relations The process by which the corporation communicates with its investors. , 336/725-7996 Jay S. Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. , Media, 540/629-6450 KEYWORD: 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. INDUSTRY KEYWORD: FOREST PRODUCTS EARNINGS MANAGEMENT CHANGES |
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