IHFC posts $13.7 million profit in 2008
By Larry Thomas -- Furniture Today, March 16, 2009
HIGH POINT — Revenues for the International Home Furnishings Center declined slightly in fiscal 2008, but profits rose about 1%, according to financial statements filed recently with the Securities and Exchange Commission.
The filing shows that, while High Point's largest showroom complex remains very profitable, nearly all of its net income was paid in dividends to its owners.
The largest ownership stake is held by Bassett Furniture Inds., which owns 46.9% of the IHFC, and included the complex's financial information as part of the annual Form 10-K it filed with the SEC.
Revenues for the year ended Oct. 31 totaled $45.72 million, down 2.9% from $47.09 million in the year ended Oct. 31, 2007.
Most of the revenues came from showroom rentals, which totaled $39.88 million in fiscal 2008. The previous year, rental revenues were $40.75 million.
Net income for fiscal 2008 was $13.71 million or $28.47 per share. That's up from $13.57 million or $28.17 per share the previous year.
The fiscal 2008 figure included a one-time gain of $3.1 million as the company terminated its health insurance plan for retirees.
The financial statements show that the IHFC paid out $13 million in dividends in each of the past two fiscal years. About $6 million of that amount went to Bassett each year.
