Bassett Sees Continued Soft Business Climate.Business Editors BASSETT, Va.--(BUSINESS WIRE)--June 20, 2001 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 it expects earnings for the fiscal second quarter of 2001, being significantly impacted by lower sales and production levels, transition costs related to shifting domestic wood production between facilities and inventory reductions, to be at an approximate breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations level (before 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. ). The second quarter restructuring charges are expected to be in the range of $.04 to $.07 per share. Sales levels declined by approximately 20% from the second quarter of 2000, due largely to the loss of two major customers to bankruptcy in late 2000 and a soft furniture retail environment. During the first half of 2001, the Company has continued to manage the business for cash, reducing its inventories by $10 million and lowering receivables by $10 million. These reductions, along with a dividend received from an affiliate, allowed the Company to pay down its long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. by $28 million, reducing the debt balance to $17 million at the end of the second quarter. The Company has also reduced its annual fixed cost structure by approximately $15 million in conjunction with closing two wood plants. In addition, the Company unveiled a new showroom in High Point, N.C., and continues to grow its Bassett Furniture Direct, At Home with Bassett, and Five Star retail programs. "Guided by our core growth strategies, we continue to position the Company for the long-term. During this period we are sustained by our strong financial position and brand name," said Robert H. Spilman Jr., president and chief executive officer. "Order rates for the last several weeks have increased somewhat and we do anticipate operating improvement over the next six months. However, we expect that the current difficult business environment will continue to impact comparative operating results for the remainder of 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 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," "estimates," or similar expressions, or those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc sales declines, net earnings, production levels, cost reductions, pricing, inventory reduction, anticipating future improvement or financial results for periods beyond the first quarter of fiscal year 2001, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended. 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, technological, raw material issues and other factors identified in Bassett's filings with the Securities and Exchange Commission. |
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