IHFC earns $14.3 million in year, up 4.7%
By Furniture Today Staff -- Furniture Today, March 19, 2007
High Point — The International Home Furnishings Center, this city's largest showroom complex, saw its rental revenues rise 2.6% in its most recent fiscal year as net income climbed 4.7%.
The numbers, disclosed in a Securities and Exchange Commission filing by Bassett Furniture Inds., also showed the IHFC's revenue from market directories and services to tenants dropped 9%. As a result, total revenues for the year ended Oct. 31 were essentially flat at $46.8 million.
Rental revenue amounted to $40.2 million, up from $39.2 million in the year ended Oct. 31, 2005. Other revenues came to $6.53 million.
Net income totaled $14.2 million or $29.54 per share for the most recent fiscal year. That's a 4.7% jump over the $13.6 million or $28.22 per share recorded for the previous year.
Net income was aided by a 21.6% reduction in interest expenses in the most recent year. Operating expenses, by contrast, rose 2.7%.
Bassett owns 46.9% of the IHFC and is its largest shareholder. The company usually includes the showroom building's financial statement in its Form 10-K report because it represents a large chunk of the furniture maker's income.
During the year ended Oct. 31, Bassett received approximately $6.5 million in dividends from the IHFC. The building paid all but $228,848 of its net income in dividends.
| Year ended 10/31 | 2006 | 2005 | Change |
|---|---|---|---|
| Revenues | $46,763,562 | $46,411,375 | 0.8% |
| Operating income | 31,589,530 | 31,649,804 | (0.2%) |
| Net income | 14,228,849 | 13,591,221 | 4.7% |
| Earnings per share | 29.54 | 28.22 | 4.7% |
