Bassett 1Q income leaps 29.3% as sales rise 2.7%
By Furniture Today Staff -- Furniture Today, April 1, 2002
Bassett, Va. — Bassett Furniture's net income jumped 29.3% to $2.9 million in its first quarter ended March 2, while sales rose 2.7% from a year earlier to $84.8 million.
Operating income rose partly because of improved earnings in the Upholstery Division and reductions in fixed costs.
Other income also improved by 80% from the comparable quarter last year to $1.2 million, mainly because of reduced losses from Bassett's investment in LRG Furniture, which operates a number of licensed Bassett Furniture Direct stores.
One reason for the sales increase was this year's longer first quarter, 14 weeks versus 13 last year. Strong performances at BFD stores also contributed, the company said.
"We are encouraged by the start of our new year and believe that we are now better positioned for improved operating results," said Rob Spilman, president and chief executive officer. "We continue to focus on our BFD program, providing superior service to customers, and delivering a better return to our shareholders."
Last year's first quarter was affected by two one-time items, a $3 million gain on the sale of property and equipment, and a $1.8 million restructuring and impaired asset charge.
Bassett said it expects to complete its previously announced transaction with LRG during the current quarter. Bassett will buy, for net book value, LRG's five remaining stores in North Carolina and Virginia. The company said the units will complement Bassett's corporate store program, while allowing LRG to focus on its seven stores in Texas and Nevada.
| Bassett Furniture Inds. | |||
|---|---|---|---|
| Owns Bassett Glass, Bassett Motion, Bassett Supply and Weiman | |||
| Earnings per share are fully diluted. | |||
| Quarter ended 3/2(a) | 2002 | 2001 | Change |
| Sales | $84,788,000 | $82,553,000 | 2.7% |
| Operating income | 3,000,000 | 1,358,000 | 120.9% |
| Net income | 2,912,000 | (b)2,252,000 | 29.3% |
| Earnings per share | 0.25 | 0.19 | 31.6% |
| (a) The 2002 quarter is 14 weeks; the 2001 quarter is 13 weeks. (b) Includes a $3 million pretax gain on the sale of property and equipment and a $1.8 million pretax restructuring and asset impairment charge. | |||
