Bassett Furniture Reports Increased Earnings for Second Quarter and First Half of Fiscal 1999.BASSETT Bassett is a surname, and may refer to:
Gross Margin Improvement and Higher Sales Drive sales drive n → promoción f de ventas sales drive n → campagne commerciale, animation f des ventes Results 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. today announced increased revenue and earnings for the second quarter and first half of fiscal 1999. The increases resulted from a combination of sales growth, gross margin improvement and investment earnings. Earnings per share increased 5.3% for the second quarter and 5.6% for the six-month period ended May 29, 1999. 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 $.40 for the quarter and $.75 for the first half, compared with $.38 and $.71, respectively, for the year-ago periods. All comparisons are with proforma Proforma A financial projection based on assumptions. fiscal 1998 earnings excluding charges for 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 discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Reported diluted earnings per share were $.30 and $.56, respectively for the year ago periods. Commenting on the results, 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 Fulton, city (1990 pop. 10,033), seat of Callaway co., central Mo., in an agricultural and farm area; inc. 1859. It has printing plants and factories that make food products, textiles, and industrial equipment. Firebricks from nearby clay beds are also produced. , Chairman, and Chief Executive Officer, said, "We are pleased with these results, which are in line with our plan. Two trends that are especially encouraging are growth in sales of Bassett branded furniture and the increase in gross margin. Sales were up 5.4% in the second quarter and 3.5% in the first half. Gross Margin - a major area of focus for Bassett - was 21.7% for the quarter and 20.7% for the first half, an improvement of 1.7 percentage points for the quarter and 1.1 percentage points for the first half." The gross margin improvement resulted from a better product mix, price increases, and increased levels of production, with particularly strong performance in the wood division. A new table plant, which will open in the fall of this year, will further improve manufacturing productivity. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 3.8%, the same as last year, reflecting continued spending to build the brand and the organization, start-up Start-up The earliest stage of a new business venture. costs of the new table plant and the growing retail operation, and operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. on the bedding division which was divested as of April 30, 1999. 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 $103.7 million, compared with $98.3 million in 1998; first half sales were $203.5 million in 1999 and $196.7 million in 1998. The sales improvement reflects the expansion of the Bassett Furniture Direct (BFD BFD Big Freakin' Deal (polite form) BFD Bidirectional Forwarding Detection (IP networking) BFD Binary File Descriptor (computer programming) ) retail program from 27 stores in mid- mid- pref. Middle: midbrain. 1998 to 44 stores at the end of May 1999. BFD sales represented 19% of total sales in 1999, up from 12% in 1998. Plans call for a total of 55 to 60 BFD stores open by the end of 1999. Bassett also announced that it is continuing its active 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. As of May 31, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 32% of the current $40 million share repurchase program had been completed. Also today, 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 September September: see month. 1, 1999 to shareholders of record August 17, 1999. Bassett Furniture Industries, Inc., based in Bassett, VA, is a 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. . The company operates 15 plants in five states and operates or licenses 44 Bassett Furniture Direct stores nationwide. The company's 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 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 at http:\\www.bassettfurniture.com. This press release contains certain 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. within the meaning of 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 with respect to the financial condition, results of operations and business of Bassett Furniture Industries, Inc. These forward-looking statements involve certain risks and uncertainties. No assurance can be given that any such matters will be realized. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (I) competitive conditions in the industry in which Bassett operates; and (II) general economic conditions that are less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. than expected. -0-
Bassett Furniture Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations - Unaudited
(Stated in thousands of dollars except for per share data)
Quarter Ended May 29, 1999
Amount Percent of Net Sales (2)
Net Sales $103,659 100.00%
Cost of Sales 81,195 78.3%
Selling, general and
administrative 18,479 17.8%
99,674 96.2%
Income from operations 3,985 3.8%
Other income, net 3,456 3.3%
Income before income
taxes 7,441 7.2%
Income taxes 2,381 2.3%
NET INCOME $5,060 4.9%
BASIC EARNINGS PER SHARE $0.40
DILUTED EARNINGS PER SHARE $0.40
Quarter Ended May 30, 1998
Amount Adjusted Percent of Percent
Amount(1) Net Sales(2) Change(2)
Net Sales $98,335 $98,335 100.00% 5.4%
Cost of sales 79,808 78,715 80.0% 3.2%
Selling, general, and
administrative 16,374 15,930 16.2% 16.0%
9,6182 9,4645 96.2% 5.3%
Income from
operations 2,153 3,690 3.8% 8.0%
Other income, net 3,113 3,113 3.2% 11.0%
Income before income
taxes 5,266 6,803 6.9% 9.4%
Income taxes 1,307 1,906 1.9% 24.9%
NET INCOME $3,959 $4,897 5.0% 3.3%
BASIC EARNINGS PER
SHARE $0.30 $0.38
DILUTED EARNINGS PER
SHARE $0.30 $0.38
(1) The adjusted amount is unaudited pro forma information which
eliminates the effect of non-recuring charges in 1998.
(2) The percentages pertain to the Adjusted Amounts
Bassett Furniture Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations - Unaudited
(Stated in thousands of dollars except for per share data)
Six Months Ended May 29, 1999
Amount Percent of Net Sales (2)
Net Sales $203,468 100.0%
Cost of sales 161,428 79.3
Selling, general and
administrative 35,009 17.2%
196,437 96.5%
Income from operations 7,031 3.5%
Other income, net 6,808 3.3%
Income before income taxes 13,839 6.8%
Income taxes 4,364 2.1%
NET INCOME $9,475 4.7%
BASIC EARNINGS PER SHARE $0.75
DILUTED EARNINGS PER SHARE $0.75
Six Months Ended May 30, 1998
Amount Adjusted Percent of Percent
Amount(1) Net Sales(2) Change
Net Sales $196,668 $196,668 100.0% 3.5%
Cost of sales 160,559 158,196 80.4% 2.0%
Selling, general, and
administrative 32,153 31,510 16.0% 11.1%
192,712 189,706 96.5% 3.5%
Income from operations 3,956 6,962 3.5% 1.0%
Other income, net 5,860 5,860 3.0% 16.2%
Income before income taxes 9,816 12,822 6.5% 7.9%
Income taxes 2,422 3,594 1.8% 21.4%
NET INCOME $7,394 $9,228 4.7% 2.7%
BASIC EARNINGS PER SHARE $0.57 $0.71
DILUTED EARNINGS PER SHARE $0.56 $0.71
(1) The adjusted amount is unaudited pro forma information which
eliminates the effect of non-recuring charges in 1998.
(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 As Less:
ended May 30, 1998 reported Adjustments Proforma
----------------------- -----------------------------------
Net Sales $ 98,335 $ (591) $ 97,744
Cost of sales 79,808 (1,684) 78,124
Selling,
general
and
administrative 16,374 (444) 15,930
-----------------------------------
96,182 (2,128) 94,054
Income from operations $ 2,153 $ 1,537 $ 3,690
===================================
For the six months As Less:
ended May 30, 1998 reported adjustments Proforma
----------------------- -----------------------------------
Net Sales $ 196,668 $ (1,437) $ 195,231
Cost of sales 160,559 (3,800) 156,759
Selling,
general
and
administrative 32,153 (643) 31,510
-----------------------------------
192,712 (4,443) 188,269
Income from operations $ 3,956 $ 3,006 $ 6,962
==================================
Note: The unaudited proforma information above for each of the
applicable periods eliminates the effect of non-recurring
charges on net sales and results of operations for the portion
of the Company's businesses that were closed during fiscal 1997.
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Preliminary and Unaudited) (Unaudited)
May 29, 1999 November 28, 1998 May 30, 1998
ASSETS
Current Assets
Cash and
cash equivalents $791 $5,499 $24,038
Short
term investments 3,313 8,923 49,796
Trade
accounts
receivable, net 58,471 59,203 50,233
Inventories,
net of LIFO 45,137 47,285 48,019
Prepaid
expenses 2,537 2,038 657
Refundable
income taxes 2,287 8,018 4,944
Deferred
income taxes 10,063 12,682 13,117
Receivable
from sale
of bedding
division 8,175 0 0
--------------- --------------- --------------
130,774 143,648 190,804
--------------- --------------- --------------
Property and Equipment
Cost 205,065 185,392 171,746
Less
accumulated
depreciation 133,126 129,005 126,312
--------------- --------------- --------------
--------------- --------------- --------------
71,939 56,387 45,434
--------------- --------------- --------------
Other Assets
Investment
securities 32,187 50,739 33,268
Investment
in affiliated
companies 64,183 52,769 33,288
Assets
held for
sale 401 1,023 2,837
Deferred
income taxes 0 0 1,458
Other 17,843 16,948 10,066
--------------- --------------- --------------
114,614 121,479 80,917
--------------- --------------- --------------
=============== =============== ==============
$317,327 $321,514 $317,155
=============== =============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts
payable $23,021 $20,221 $13,934
Accrued
liabilities 21,348 24,514 25,556
--------------- --------------- --------------
--------------- --------------- --------------
44,369 44,735 39,490
--------------- --------------- --------------
Long-Term
Liabilities
Employee
benefits 11,006 11,272 11,624
Deferred
income taxes 319 595 0
--------------- --------------- --------------
--------------- --------------- --------------
11,325 11,867 11,624
--------------- --------------- --------------
Stockholders'
Equity
Common stock 62,747 64,425 65,390
Additional
paid in
capital 0 0 3,090
Retained
earnings 191,824 193,130 190,930
Unrealized
holding
gains, net
of tax 7,872 8,286 7,929
Unamortized
stock
compensation (810) (929) (1,298)
--------------- --------------- --------------
261,633 264,912 266,041
--------------- --------------- --------------
=============== =============== ==============
$317,327 $321,514 $317,155
=============== =============== ==============
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - Unaudited/Preliminary
Six Months Ended Six Months Ended
May 29, 1999 May 30, 1998
---------------- ------------------
Net income $9,475 $7,394
Adjustments to reconcile
net income to net cash
provided by (used in)
operating activities:
Depreciation and amortization 4,121 3,464
Equity in undistributed income
of affiliated companies (5,364) (3,331)
Provision for losses on trade
accounts receivable - 362
Deferred income taxes 2,343 1,114
Net (gain) loss from sales of
investment securities (955) (206)
Net (gain) loss from sales of
property and equipment - (349)
Compensation earned under
restricted stock plan 120 105
Changes in long-term liabilities (266) -
Changes in operating assets and
liabilities:
Trade accounts receivable (1,943) 6,732
Refundable Income Taxes 5,731 457
Inventories (2,263) (6,305)
Prepaid expenses (576) 748
Accounts payable and accrued
liabilities 741 (8,417)
Net cash provided by -------------- ---------------
operating activities 11,164 1,768
-------------- ---------------
Investing Activities:
Purchases of property
and equipment (22,372) (7,455)
Proceeds from sales of
property and equipment 970 3,054
Purchases of investment
securities - (476)
Dividends from affiliated
company - 545
Proceeds from sales of
investment securities 24,703 1,343
Investments in affiliated
companies (6,050) 189
Other (579) 500
------------- ----------------
Net cash used in
investing activities (3,328) (2,300)
------------- ----------------
Financing Activities:
Issuance of common stock 15 243
Purchases of common stock (7,457) -
Cash dividends (5,102) (5,225)
-------------- ----------------
Net cash used in
financing activities (12,544) (4,982)
--------------- ----------------
Change in Cash and Cash
Equivalents (4,708) (5,514)
--------------- ----------------
Cash and Cash Equivalents,
beginning of year 5,499 29,552
--------------- ----------------
Cash and Cash Equivalents,
end of quarter $791 $24,038
================ ================
Supplemental disclosure of
noncash activities:
Receivable from sale
of bedding division $8,175
================
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