Bassett's yearly sales up 6.2%, profits slip 7.9%
By Larry Thomas -- Furniture Today, January 15, 2006
Bassett, Va. — Bassett Furniture said sales rose 6.2% in fiscal 2005, but net income slipped 7.9% due to several one-time charges.
The sales gain for the year ended Nov. 26 was driven largely by its proprietary Bassett Furniture Direct stores, which accounted for 68% of the year's total shipments of $335.2 million.
The company said shipments to BFD stores rose 18%, or about $32.5 million. That was more than enough to offset the expected $22.6 million in lost sales to traditional furniture stores and other retail channels.
"We remain squarely focused on retail, using our expanded corporate store program to build a platform for providing solutions to our customers and to develop best practices which will serve the entire BFD store program," said Robert Spilman Jr., president and CEO.
Bassett currently has 132 BFD stores, including 27 company-owned locations. Fifteen of those stores in the Dallas, Atlanta and upstate New York markets were acquired during fiscal 2005.
The acquisitions resulted in one-time charges of $4.2 million. Those items, combined with a $2 million charge stemming from the closing of its Mount Airy, N.C., plant, caused fiscal 2005 net income to fall to $7.6 million or 63 cents per share. In fiscal 2004, net income totaled $8.2 million or 69 cents per share.
Without the charges, net income for fiscal 2005 was $10.9 million or 92 cents per share.
For the fourth quarter, sales rose 10.6% to $88.6 million. Net income, including the one-time charge for the plant closing, dropped 21% to $2.3 million, or 19 cents per share.
Excluding the charge, net income was $3 million or 25 cents per share. In last year's fourth quarter, it was $2.9 million, or 24 cents per share.
Fourth-quarter shipments to BFD stores increased by $8 million, or about 17%, from the same quarter a year earlier.
| 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 11/26 | 2005 | 2004 | Change |
| (a) Includes pretax restructuring and asset impairment charges of $1.96 million in the 2005 quarter, $6.16 million in the 2005 year and $4.06 million in the 2004 year. Includes non-operating pretax income of $1.9 million in the 2005 quarter, $2.6 million in the 2004 quarter, $8.06 million in the 2005 year and $7.1 million in the 2004 year. Also includes a pretax gain of $3.9 million on sale of property in the 2004 year. | |||
| Sales | $88,649,000 | $80,146,000 | 10.6% |
| Operating income | 2,639,000 | 1,009,000 | 161.5% |
| Net income (a) | 2,266,000 | 2,868,000 | (21.0%) |
| Earnings per share | 0.19 | 0.24 | (20.8%) |
| Year ended 11/26 | 2005 | 2004 | Change |
| Sales | $335,207,000 | $315,654,000 | 6.2% |
| Operating income | 7,547,000 | 3,897,000 | 93.7% |
| Net income (a) | 7,563,000 | 8,209,000 | (7.9%) |
| Earnings per share | 0.63 | 0.69 | (8.7%) |
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