Bassett 3Q sales rise 5.3%
Janice Chamberlain -- Furniture Today, October 2, 2005
Bassett, Va. — Full-line manufacturer and importer Bassett Furniture Inds. posted a 5.3% sales increase paired with a 67.2% jump in net income in its third quarter. Sales in the quarter ended Aug. 27 reached $82.7 million, measured against $78.6 million in the comparable 2004 period.
Bassett said the sales gain was led by a $5 million, or 12%, increase in shipments to Bassett Furniture Direct stores. That more than counterbalanced an expected attrition in sales to traditional furniture stores of about $4 million.
Net profits in the latest quarter were $1.9 million, compared with $1.1 million in the year-earlier period.
Profit margins in the 2005 and 2004 quarters were 2.3% and 1.4%, respectively, with gross margins reaching 30.8% in the latest quarter, compared with 25.6% in the year-ago period.
In the first three quarters, Bassett had sales of $246.6 million, up 4.7% over the same period in 2004. Net income in the latest nine months was $5.3 million, even with year-earlier results.
The gross margin in the 2005 nine months increased to 28% from 25.6% in the comparable 2004 period, and profit margins were 2.1% in 2005 and 2.3% in 2004.
There are now 127 Bassett Furniture Direct stores. Licensees opened six stores during the third quarter, and Bassett expects licensees to open another four to five stores during the fourth quarter for a total of 20 or 21 new BFD stores this fiscal year.
Sales to BFD stores accounted for 67% of Bassett's wholesale shipments in the first nine months of 2005, compared with 58% in the same period in 2004.
"We are pleased with the growth of our Bassett Furniture Direct program and the continued strong performance from our upholstery division and imported products within our wood division," said Bassett President and CEO Robert Spilman. "Our focus is squarely on retail and utilizing our expanded group of corporate stores to build a platform for operational excellence which will serve the entire BFD store program."
Bassett has declared a quarterly dividend of 20 cents per share, payable Dec. 1 to shareholders of record on Nov. 15.
| 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. | |||
| 13 weeks ended 8/27 | 2005 | 2004 | Change |
| (a) Includes pretax restructuring and impaired asset charges of $1.7 million in the 2005 13 weeks, $1.2 million in the 2004 13 weeks, $4.2 million in the 2005 39 weeks and $4.1 million in the 2004 39 weeks and non-operating income of $2.3 million in the 2005 13 weeks, $1.6 million in the 2004 13 weeks, $6.1 million in the 2005 39 weeks and $4.5 million in the 2004 39 weeks. The 2004 39 weeks also includes a $3.9 million pretax gain on the sale of property. |
|||
| Sales | $82,743,000 | $78,585,000 | 5.3% |
| Operating income | 1,950,000 | 1,081,000 | 80.4% |
| Net income (a) | 1,886,000 | 1,128,000 | 67.2% |
| Earnings per share | 0.16 | 0.10 | 60.0% |
| 39 weeks ended 8/27 | 2005 | 2004 | Change |
| Sales | $246,557,000 | $235,508,000 | 4.7% |
| Operating income | 4,908,000 | 2,887,000 | 70.0% |
| Net income (a) | 5,297,000 | 5,340,000 | (0.8%) |
| Earnings per share | 0.44 | 0.45 | (2.2%) |
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