Bassett 1Q net income doubles
By Furniture Today Staff -- Furniture Today, April 4, 2004
BASSETT, Va. — Bassett Furniture Inds.' sales slipped 1.3% in its first quarter ended Feb. 28, but net income, excluding one-time factors, doubled.
Sales declined mainly because of the anticipated $3.8 million dropoff in business with JCPenney, which curtailed its Bassett purchases last year. In addition, the company said, an 11% gain in shipments to Bassett Furniture Direct stores over the 2003 quarter was less than expected because of slow business in January and February.
BFD business rebounded to expected levels in March, after the quarter ended, Bassett said.
Net income for the first quarter came to $2.3 million, compared with a $6.4 million loss in the same period a year earlier.
Several one-time factors affected both quarters, including a $3.9 million gain on the sale of a California upholstery plant in the recent quarter, charges for restructuring and asset impairment in both quarters, and a $4.9 million hit to income in the 2003 period because of an accounting rule change.
Excluding all that, the company said its adjusted net income was $1.6 million in the period just ended, compared with $754,000 a year ago.
"We are pleased with our year-over-year earnings improvement and our continued positive cash flow," said Rob Spilman Jr., president and CEO. "However, we are not satisfied with our current level of earnings. Our focus continues to be on better execution at the store level and the profitability of our Wood Division.
"Our Upholstery Division continued its solid performance even as we consolidated two plants into one facility, and we were pleased that our company-owned stores in Texas … posted positive earnings for the quarter," he said.
Selling, general and administrative expenses as a percentage of sales in the latest quarter were down 2 percentage points from a year earlier, mainly because of actions taken last year to lower expenses in an effort to improve the profitability of company-owned stores.
| • Bassett Furniture Inds. | |||
|---|---|---|---|
| Owns Bassett Glass, Bassett Motion, Bassett Supply and Weiman | |||
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| 13 weeks ended 2/28 | 2004 | 2003 | Change |
| (a) Includes a $3.9 million pretax gain on the sale of property, $1 million in non-operating income and a $2.8 million pretax restructuring and asset impairment charge. (b) Includes a $3.2 million pretax restructuring and asset impairment charge, a $1.1 million in non-operating income, a $602,000 income tax benefit and a $4.9 million extraordinary charge, the cumulative effect of an accounting change. | |||
| Sales | $76,568,000 | $77,614,000 | (1.3%) |
| Operating income | 1,171,000 | (94,000) | — |
| Net income | (a)2,328,000 | (b)(6,425,000) | — |
| Earnings per share | 0.20 | (0.55) | — |
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