Bassett Furniture trims loss to $1.7 million
Sales decline 8.5% in quarter
Larry Thomas -- Furniture Today, April 9, 2010
BASSETT, Va. — Bassett Furniture Inds. said its sales fell 8.5% in the quarter ended Feb. 27, and the company reduced its net loss to $1.7 million.
The net loss, which equals 15 cents per share, was well below the loss of $12 million or $1.05 per share recorded in the quarter ended Feb. 28, 2009.
Sales totaled $52.9 million, down from $57.8 million in the same quarter the previous year.
The company said the fiscal first quarter's performance was adversely affected by the acquisition of seven troubled Bassett Furniture Direct stores and the related bad debt expenses.
"This trend has overshadowed the progress the company has made in improving its financial performance over the past few months," said Rob Spilman, president and CEO. "Nevertheless, management will maintain a strong focus on evaluating the financial health of the handful of store licensees that have suffered the most during the recession.
Including the recent acquisitions, Bassett owns 43 of the 104 BFD stores.
Since the end of the quarter, one store has been closed following an eminent domain condemnation, and the company plans to open two stores before the end of the second quarter.
Spilman said the company recorded operating cash flow of $6.7 million in the most recent quarter - the fourth consecutive quarter of positive cash flow - and remains committed to a strong balance sheet and cash flow.
"We remain encouraged by the continuing strengthening of our balance sheet and the improving margins in our wholesale and retail segments," he said.
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Bassett reduces loss to $1.7M in quarter
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