Bassett reports $4.2M 1Q loss
By Larry Thomas -- Furniture Today, April 23, 2007
Bassett, Va. — Hampered by a double-digit sales decline and charges related to a factory closing, Bassett Furniture Inds. recorded a net loss of $4.2 million in its first quarter.
The company said sales for the quarter ended Feb. 24 were $73.4 million, a drop of 15.1% from the first quarter of the previous year. The declines were felt in both its wholesale and retail segments, although wholesale shipments were off 18% and retail was down just 3.2%
"This was an extremely difficult quarter for the company, both in terms of our business levels and the announcement made earlier this month related to the closing of our (manufacturing) facility in Bassett," said Robert Spilman Jr., president and CEO.
Spilman said the plant closing, which will be completed during the fiscal third quarter, should add $3 million to $4 million annually to operating income beginning in 2008.
In the most recent quarter, the wholesale division had an operating loss of $1.2 million and the retail division had an operating loss of $2.4 million.
Bassett's first quarter net loss, which equals 35 cents per share, compares with net income of $2.2 million or 18 cents per share in the previous year's first quarter. The most recent quarter includes a $3.6 million charge related to the plant closing.
Bassett owns 27 of its 133 Bassett Furniture Direct stores. The company said it experienced "moderately positive trends in sales and margins" at these stores during February and March.
| Bassett | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 2/24 | 2007 | 2006 | Change |
| (a) Includes a pretax asset impairment charge of $3.6 million in the 2007 quarter. Also includes other income of $910,000 in the 2007 quarter and $1.9 million in the 2006 quarter. | |||
| Sales | $73,420,000 | $86,489,000 | (15.1%) |
| Operating income | (3,514,000) | 1,078,000 | — |
| Net income (a) | (4,188,000) | 2,180,000 | — |
| Earnings per share | 0.35 | 0.18 | — |
