Bassett Sales and Earnings Up In Second Quarter.Business Editors 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 that its second quarter 2002 sales were $80.9 million, up 10% compared to the second quarter of 2001. Sales increased due to strong performances in the Bassett Furniture Direct (BFD BFD Big Freakin' Deal (polite form) BFD Bidirectional Forwarding Detection (IP networking) BFD Binary File Descriptor (computer programming) ) retail stores and the Five Star quick-ship program. The Company also recorded $2.7 million of net retail sales (after elimination of the wholesale portion) from the six Company owned BFD stores acquired from 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 . Effective March 1, 2002, the Company acquired the assets and assumed the liabilities of six BFD retail stores located 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. and Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). from LRG Furniture, LLC in a non-cash transaction. Included in the balance sheet at June June: see month. 1, 2002 are assets and liabilities associated with these retail stores, including retail inventories of $3 million. Earnings per share were $.25 for the second quarter of 2002 compared to a loss of $.05 for the prior year period. Included in the results for the second quarter of 2001 were 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 $.8 million. The 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. and import divisions continued better earnings performance and the wood division posted improved earnings from the prior year despite slightly lower sales. Gross margin improved over the second quarter of 2001 due to the cost reductions associated with the 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). of manufacturing completed last year and, to a lesser degree, inclusion of retail sales in 2002. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter improved by more than $6 million compared to the prior year period as a result of restructuring efforts completed in 2001 and increased sales volume. Cash flow for the first six months was on plan, enabling the Company to repay $8.7 million of debt. Cash generated from operations was more than $14 million for the first six months of 2002 due in part to the continued reduction in trade 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 and other short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. 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 . Bassett Bassett is a surname, and may refer to:
n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2002 total of 85 stores. The Company intends to add 15 to 20 new stores each year. "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 are headed in the right direction, but we still have a long way to go," 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., Bassett president and chief executive officer. "We are now focusing Bassett Furniture Direct expansion in major metropolitan areas such as New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C., and Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). . Sales growth in these markets will be largely incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. as the Company currently has only a small presence in these areas." Current softness in the economy and a seasonally slower third quarter for the furniture industry may impact earnings in the next quarter, however the Company remains confident in its store strategy, manufacturing and sourcing initiatives and its long-term financial plan Long-term financial plan Financial plan covering two or more years of future operations. . Also, Bassett's Board of Directors declared a regular quarterly dividend of $.20 per share payable September September: see month. 3, 2002 to shareholders of record on August 16, 2002. Founded in 1902, Bassett Furniture Industries Inc. is one of the world's leading manufacturers and marketers 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. . Bassett's products, designed to provide quality, style and value, are sold through Bassett Furniture Direct(R) stores, At Home with Bassett(R), Five Star 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 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," "plans," or similar expressions, or those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc store openings, sales, earnings or future improvement of financial results for periods beyond the second quarter of fiscal year 2002, constitute "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 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 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: economic, competitive, governmental, or sourcing issues 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
June 1, 2002 May 26, 2001
Percent of Percent of
Amount Net Sales Amount Net Sales
--------------------------------------------
Net sales $ 80,904 100.0% $73,765 100.0%
Cost of sales 62,455 77.2% 62,672 85.0%
Selling, general and
administrative 15,820 19.6% 13,722 18.6%
Restructuring charges - 0.0% 819 1.1%
------------------- -------------------
78,275 96.8% 77,213 104.7%
------------------- -------------------
Income (loss) from
operations 2,629 3.2% (3,448) -4.7%
Other income, net 1,544 1.9% 2,677 3.6%
------------------- -------------------
Income (loss) before
income taxes 4,173 5.2% (771) -1.0%
Income taxes (benefit) 1,293 1.6% (233) -0.3%
------------------- -------------------
Net income (loss) $ 2,880 3.6% $ (538) -0.7%
=================== ===================
Basic earnings (loss)
per share: $ 0.25 $ (0.05)
========== =========
Diluted earnings (loss)
per share: $ 0.25 $ (0.05)
========== =========
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 Six Months Ended
June 1, 2002 May 26, 2001
Percent of Percent of
Amount Net Sales Amount Net Sales
-------------------- ----------------------
Net sales $165,692 100.0% $156,318 100.0%
Cost of sales 130,515 78.8% 130,666 83.6%
Selling, general and
administrative 29,548 17.8% 26,923 17.2%
Gain on Sale of property
and equipment - 0.0% (3,028) -1.9%
Restructuring charges - 0.0% 2,666 1.7%
------------------- --------------------
160,063 96.6% 157,227 100.6%
------------------- -------------------
Income (loss) from
operations 5,629 3.4% (909) -0.6%
Other income, net 2,765 1.7% 3,355 2.1%
------------------- -------------------
Income before income
taxes 8,394 5.1% 2,446 1.6%
Income taxes 2,602 1.6% 732 0.5%
------------------- -------------------
Net Income $ 5,792 3.5% $ 1,714 1.1%
=================== ===================
Basic earnings
per share: $ 0.50 $ 0.15
========= =========
Diluted earnings
per share: $ 0.50 $ 0.15
========= =========
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Stated in thousands of dollars)
Unaudited
June 1, 2002 November 24, 2001
------------ -----------------
ASSETS
Current Assets
Cash and cash equivalents $ 5,325 $ 5,347
Trade accounts receivable, net 44,612 51,487
Inventories, net of LIFO 38,136 32,244
Other current assets 4,101 10,609
Refundable income taxes 2,728 2,728
Deferred income taxes 3,841 3,841
------------ -----------------
98,743 106,256
------------ -----------------
Property and Equipment
Cost 227,835 225,661
Less accumulated depreciation 137,128 135,254
------------ -----------------
90,707 90,407
------------ -----------------
Other Assets
Investment securities 7,457 9,116
Investment in affiliated companies 62,196 62,636
Deferred income taxes 4,493 6,528
Notes receivable, net 18,913 14,551
Other, net 9,777 11,909
------------ -----------------
102,836 104,740
------------ -----------------
$ 292,286 $ 301,403
============ =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 16,291 $ 15,010
Accrued liabilities 16,582 18,250
------------ -----------------
32,873 33,260
------------ -----------------
Long-Term Liabilities
Employee benefits 10,481 10,596
Long-term debt - 7,482
Deferred revenue from affiliate 13,845 15,593
------------ -----------------
24,326 33,671
------------ -----------------
Stockholders' Equity
Common stock 58,726 58,636
Retained earnings 174,274 173,011
Unrealized holding gains,
net of tax 2,219 3,047
Unamortized stock compensation (132) (222)
------------ -----------------
235,087 234,472
------------ -----------------
$ 292,286 $ 301,403
============ =================
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - Unaudited
(Stated in thousands of dollars)
Six Months Ended Six Months Ended
June 1, 2002 May 26, 2001
---------------- ----------------
Net income $ 5,792 $ 1,714
Adjustments to reconcile
net income to net cash provided
by operating activities:
Depreciation and amortization 5,085 5,544
Equity in undistributed income
of affiliated companies (4,096) (3,214)
Provision for write-down
of fixed assets - 1,600
Deferred income taxes 2,602 (1,665)
Net gain from sales of investment
securities (302) (914)
Net gain from sales of property
and equipment - (3,028)
Net gain on financial instrument - (448)
Compensation earned under restricted
stock plan 90 86
Changes in long-term liabilities (115) (113)
Changes in operating assets and
liabilities:
Trade accounts receivable 6,305 10,272
Inventories (2,382) 10,115
Prepaid expenses and other 6,550 188
Accounts payable and accrued
liabilities (5,308) (7,374)
---------------- ----------------
Net cash provided by
operating activities 14,221 12,763
---------------- ----------------
Investing Activities:
Purchases of property and equipment (4,346) (10,527)
Proceeds from sales of property
and equipment - 3,828
Dividends from affiliated companies 5,343 26,809
Proceeds from sales of investment
securities 654 1,621
Investment in affiliated companies (2,118) -
Other (665) (977)
---------------- ----------------
Net cash provided by (used in)
investing activities (1,132) 20,754
---------------- ----------------
Financing Activities:
Repayments under notes payable, net (8,671) (28,000)
Issuance of common stock 249 176
Repurchases of common stock - (550)
Cash dividends (4,689) (4,690)
---------------- ----------------
Net cash used in financing
activities (13,111) (33,064)
---------------- ----------------
Change in Cash and Cash Equivalents (22) 453
---------------- ----------------
Cash and Cash Equivalents,
beginning of period 5,347 3,259
---------------- ----------------
Cash and Cash Equivalents,
end of period $ 5,325 $ 3,712
================ ================
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