Bassett back in black despite 5% sales dip
By Furniture Today Staff -- Furniture Today, October 6, 2003
Bassett, Va. — Full-line manufacturer-importer Bassett Furniture Inds. reported sales of $74.4 million in its third quarter, a 5% drop from the prior year's period.
But net income of $1.6 million in the three months ended Aug. 30 was a big improvement over 2002's comparable quarter, when Bassett lost $718,000.
Year to date, sales of $219.2 million are off 10.2% from the first nine months of 2002, while net income this year of $1.4 million is down 72% compared to the same period last year.
A $3.2 million charge related to the closing of Bassett's Dublin, Ga., plant in first-quarter 2003 accounted for much of the earnings decrease, the company said.
Bassett attributed the third-quarter sales dip to industrywide soft retail conditions, and most of the year-to-date decline to lower sales to major customer JCPenney.
"Business appears to be improving slightly," said Rob Spilman, president and chief executive officer. "We were pleased with the Labor Day performance of our retail network. We also were pleased with the operating cash flow we generated during the quarter, and our investment results."
He said the company would focus on improving earnings in the wood division, and on opening new licensed Bassett Furniture Direct stores.
"We are encouraged by the number of prospects who want to own and operate Bassett stores," Spilman said. "We remain committed to our goal of 150 BFDs by the end of 2005."
Bassett currently has 96 BFD stores in operation, five of which opened during the third quarter. The company expects licensees to open an additional four to six stores in the fourth quarter for a total of 18 to 20 new BFDs in 2003.
BFDs' total share of Bassett's sales should grow to 55% this year, up from 45% in 2002, the company said.
| • Bassett Furniture Inds. | |||
|---|---|---|---|
| Owns Bassett Glass, Bassett Motion, Bassett Supply and Weiman | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 8/3020032002Change | |||
| (a) Includes $1.3 million in non-operating income. (b) Includes a $1.3 million pretax restructuring and impaired fixed asset charge, $948,000 in non-operating expense and a $369,000 income tax benefit. (c) The 2003 nine months is 39 weeks; the 2002 nine months is 40 weeks. (d) Includes pretax restructuring and impaired fixed asset charges of $3.2 million in the 2003 nine months and $1.3 million in the 2002 nine months and non-operating income of $3.8 million in the 2003 nine months and $1.8 million in the 2002 nine months. | |||
| Sales | $74,434,000 | $78,367,000 | (5.0%) |
| Operating income | 600,000 | 1,112,000 | (46.0%) |
| Net income | (a)1,557,000 | (b)(718,000) | — |
| Earnings per share | 0.13 | (0.06) | — |
| 9 months ended 8/30 (c) | 2003 | 2002 | Change |
| Sales | $219,245,000 | $244,059,000 | (10.2%) |
| Operating income | 849,000 | 6,741,000 | (87.4%) |
| Net income (d) | 1,420,000 | 5,074,000 | (72.0%) |
| Earnings per share | 0.12 | 0.43 | (72.1%) |
