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Bassett 1Q sales up 7.1%, profits off 2.3%

By Furniture Today Staff -- Furniture Today, April 2, 2006

Bassett, Va. — Full-line manufacturer Bassett Furniture Inds. said sales rose 7.1% in its first quarter, but net income slipped 2.3% due to higher operating expenses at company-owned dedicated stores.

Sales in the quarter ended Feb. 25 totaled $86.5 million, compared with $80.8 million in last year's first quarter. Net income was $2.3 million, or 19 cents per share. That compared with $2.4 million, or 20 cents per share, a year earlier.

"We are pleased with our year-over-year wholesale division improvement," said President and CEO Robert Spilman. "Actions taken over the past three years to restructure our wholesale business have resulted in better returns, and we expect continued improvement."

Shipments to the company's Bassett Furniture Direct stores represented 70% of total sales, he said.

Currently, there are 133 BFD stores, with 27 company owned. Licensees opened four stores and closed one during the first quarter, and the company expects 12 to 14 new stores to be opened by the end of the fiscal year in November.

The 27 company-owned stores had an operating loss of $2.1 million in the first quarter. Spilman said sales and margins were lower than expected because a variety of operational changes are taking longer than expected to implement.

The stores originally were part of five independent operating units, but are being merged into a centralized organization with a new management team, he 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.
13 weeks ended 2/25	2006	2005	Change
(a) Includes non-operating pretax income of $1.77 million in the 2006 quarter and $1.97 million in the 2005 quarter.
Sales	$86,489,000	$80,752,000	7.1%
Operating income	1,415,000	1,268,000	11.6%
Net income (a)	2,310,000	2,364,000	(2.3%)
Earnings per share	0.19	0.20	(5.0%)

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Bassett 1Q sales up 7.1%; store losses hurt profits

Mar 24, 2006

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