Bassett posts smaller loss
By Gary Evans -- Furniture Today, July 20, 2008
BASSETT, Va. — Bassett Furniture Inds. posted a loss of $391,000 or 3 cents a share in its fiscal second quarter ended May 31, compared with a loss of $2.4 million or 20 cents a share in the prior year quarter.
Revenue was $74.9 million compared with $75.4 million a year earlier, a decline of 0.8%. But this year's total was increased by revenues of $4.1 million due to an accounting change, with the company now invoicing stores for delivery costs.
Excluding $1.4 million in defense costs over a proxy fight earlier this year, a $1.3 million gain from the sale of a company airplane, and a $400,000 impairment charge for the writeoff of leasehold improvements for a closed store, the company said it had a loss of 1 cent per share.
Bassett said that retail sales from company-owned stores grew by 12%, but revenue from wholesale sales fell 2%.
“We remain encouraged by sales results from our new retail prototype despite the ongoing difficult home furnishings environment,” said Rob Spilman, president and CEO. “Sales per square foot in the new format continue to noticeably outperform our existing fleet average and we eagerly anticipate the conversion of two more stores later this year. As more stores are converted, we will have a meaningful sample with which we can evaluate the appropriate level of investment to allocate to the Bassett Home Furnishings concept in the future.”
Sales for the 27 weeks ended May 31 were $156.5 million, a 5% increase from the $148.9 million in the 26 weeks ended May 26, 2007. The delivery cost accounting change added $8.7 million to this year's first half revenue, the company said.
The company reported net income of $126,000 or 1 cent per share in the first half, compared with a loss of $6.6 million or 56 cents per share a year earlier.
The company said it had 127 Bassett Home Furnishings stores in operation on May 31. In the first six months of 2008, three new stores were opened (two licensees and one corporate) and six stores were closed (five licensees and one corporate). The company said an addition nine to 10 underperforming stores are expected to close this year.
| Bassett Furniture Inds. | |||
|---|---|---|---|
| Owns Bassett Glass, Bassett Motion and Bassett Supply | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| (a) First half was 27 weeks in 2008 and 26 weeks in 2007. (b) Includes pretax proxy defense costs of $1.4 million in the 2008 quarter and half. Also includes a $958,000 pretax gain in the 2008 quarter and half and pretax charges $1.9 million in the 2007 quarter and $5.5 million in the 2007 half, all for restructuring, asset impairment and unusual charges or gains. Includes pretax lease exit costs of $1.9 million in the 2007 quarter and half. |
|||
| 27 weeks ended 5/31 (a) | 2008 | 2007 | Change |
| Sales | $156,460,000 | $148,852,000 | 5.1% |
| Operating income | 7,579,000 | (5,625,000) | — |
| Net income (b) | 126,000 | (6,607,000) | — |
| Earnings per share | 0.01 | (0.56) | — |
| 13 weeks ended 5/31 | 2008 | 2007 | Change |
| Sales | $74,862,000 | $75,432,000 | (0.8%) |
| Operating income | 2,559,000 | (2,112,000) | — |
| Net income (b) | (391,000) | (2,420,000) | — |
| Earnings per share | (0.03) | (0.20) | — |
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