Bassett Furniture Industries, Inc. (Nasdaq: BSET) announced
today its results of operations for its fiscal quarter ended August
31, 2019.
|
Fiscal 2019 Third
Quarter Highlights(Dollars in millions) |
|
|
Sales |
|
Operating Income (Loss) |
|
3rd Qtr |
|
Dollar |
% |
|
3rd
Qtr |
%
of |
|
3rd
Qtr |
%
of |
|
|
2019 |
|
2018 |
|
Change |
Change |
|
2019 |
|
Sales |
|
|
2018 |
Sales |
Consolidated (1) |
$ |
109.4 |
$ |
113.0 |
|
$ |
(3.5 |
) |
-3.1 |
% |
|
$ |
3.4 |
|
3.1 |
% |
|
$ |
4.3 |
3.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale |
$ |
62.7 |
$ |
63.8 |
|
$ |
(1.1 |
) |
-1.5 |
% |
|
$ |
3.0 |
|
4.9 |
% |
|
$ |
3.3 |
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Retail |
$ |
66.5 |
$ |
65.4 |
|
$ |
1.1 |
|
1.7 |
% |
|
$ |
(0.4 |
) |
-0.6 |
% |
|
$ |
0.9 |
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
61
Comparable Stores |
$ |
60.0 |
$ |
64.2 |
|
$ |
(4.2 |
) |
-6.5 |
% |
|
$ |
0.4 |
|
0.6 |
% |
|
$ |
1.8 |
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Logistical
Services (2) |
$ |
18.9 |
$ |
20.1 |
|
$ |
(1.2 |
) |
-6.1 |
% |
|
$ |
0.6 |
|
3.2 |
% |
|
$ |
0.1 |
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our consolidated
results include certain intercompany eliminations. See the “Segment
Information” table below for an illustration |
of the effects
of these intercompany eliminations on our consolidated sales and
operating income. |
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|
(2) Current and prior
period sales have been retrospectively restated to reflect the
transfer of intercompany home delivery services from |
logistical
services to retail. The effect of the transfer on operating income
was not material. |
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Net income for the quarter was $2.2 million or
$0.21 per diluted share as compared to $2.9 million or $0.28 per
diluted share for the prior year quarter.
“We turned in a much stronger sequential
performance compared to this year’s second quarter,” observed Rob
Spilman, Chairman and CEO. “We are focused on a number of
sales, marketing, and cost reduction measures and some of them
began to bear fruit in our 3rd quarter ended August 31, 2019.
Still, we are operating in a challenging retail environment that
demands a high degree of innovation and operational
execution. Although we generated an overall sales increase in
our corporate retail division, we posted another quarterly decline
in comparable retail store sales. Improving this trend
remains our primary focus.”
“Efforts to stimulate more web traffic and
increase brand engagement produced encouraging results in the
quarter,” continued Spilman. “We now view the combination of
web and store traffic holistically and believe that they go
hand-in-hand. Although our store traffic declined again
during the quarter, it did so at a slower pace. Web traffic
improved by 16% over the prior year quarter. We are
experimenting with new digital outreach strategies on an individual
store market basis and plan to invest more in these efforts going
forward. We opened one new store at the end of the period,
thus completing our three-year store expansion initiative.
Although we will open another licensed location and move an
existing corporate store during the fourth quarter, our attention
has moved decidedly inward as we devote our energy to driving more
sales through our existing fleet. We believe that this
thinking is particularly appropriate given the incessant
speculation about an economic downturn that remains in the
news. In any event, preservation of our balance sheet is
important. During the quarter, we generated $6.9 million of
operating cash flow, purchased $4.5 million of our stock, and paid
$1.3 million in dividends.”
Wholesale
Segment
Net sales for the wholesale segment were $62.7
million for the third quarter of 2019 as compared to $63.8 million
for the third quarter of 2018, a decrease of $1.1 million or
1.8%. This decrease was primarily driven by a 62% decrease in
juvenile furniture shipments as the Company continues to exit this
furniture line and a 4.4% decrease to the other open market dealers
(outside the Bassett Home Furnishings network). In addition, the
wholesale segment ceased selling accessories to the BHF network
beginning at the start of the third quarter of 2019. Both the
corporate- and licensee-owned stores now purchase accessories
directly from third-party accessory providers. Wholesale
sales of accessory items during the third quarter of 2018 were $0.9
million. These decreases were partially offset by a 2.2% increase
in shipments to the Bassett Home Furnishings network and a $0.7
million increase in Lane Venture shipments. Gross margin for
the wholesale segment was 34.5% for the third quarter of 2019 as
compared to 33.3% for the prior year quarter due to improved
margins in both the wood and upholstery operations from certain raw
material cost decreases, improved manufacturing efficiencies and
realized container freight savings on imported wood product.
SG&A as a percentage of sales increased to 29.6% as
compared to 28.1% for the third quarter of 2018. This
increase in SG&A as a percentage of sales was primarily driven
by higher over-the-road freight costs along with higher marketing
and other brand development costs, partially offset by lower
incentive compensation costs. Operating income was $3.0
million or 4.9% of sales for the third quarter of 2019 as compared
to $3.3 million or 5.2% of sales in the prior year.
“Although the imposition of tariffs has
disrupted a portion of our wholesale business, we are well
positioned for the most part as domestically produced products
comprised almost 80% of our shipments for the quarter,” added
Spilman. “Our Bassett Custom Upholstery division, excluding
Lane Venture, grew by 3% due in large part to retail sell through
of our new $999 price point frames. Lane Venture outdoor
furniture shipments grew by 21% despite the tariff exposure that we
have on woven wicker and aluminum frames. We are pursuing
alternative sourcing but finding vendors of commensurate quality
outside of China is not easy. Finally, sales of our imported
Bassett Leather products were off by 5.6% as we are fighting
through the tariff situation alongside our long time Chinese
supplier of this product line. Responding to input from our
store designers, we look forward to the introduction of a new
domestically produced custom motion program at the upcoming October
Fall Furniture Market.”
“On the wood products front, sales of our
domestically manufactured Bassett Custom wood division grew by
4.3%,” continued Spilman. “The new Bench Made Midtown line
began to ship in the quarter and already produced retail sales
beginning with our Labor Day sales event. We plan to continue
to expand the Bench Made assortment based on the track record for
sales growth that the line has recorded since its inception in
October 2014. Sales of our imported Bassett casegoods
assortment declined by 17.6% due to the continuing wind down of our
juvenile products line and weaker sales of our bedroom and formal
dining groups. Although imported wood casegoods remain an
important facet of our overall assortment, we have struggled to
post consistent sales increases in this area over the past couple
of years. We are working with our vendors to produce stronger
price points as we move ahead.”
Retail Segment
Net sales for the 71 Company-owned Bassett Home
Furnishings stores were $66.5 million for the third quarter of 2019
as compared to $65.4 million for the third quarter of 2018, an
increase of $1.1 million or 1.7%. This increase was due to an
increase of $5.3 million in non-comparable store sales as the
Company has opened 9 stores over the last 18 months, partially
offset by a $4.2 million or 6.5% decrease in sales for the 61
comparable stores.
While the Company does not recognize sales until
goods are delivered to the consumer, management tracks written
sales (the retail dollar value of sales orders taken, rather than
delivered) as a key store performance indicator. Written
sales for comparable stores decreased by 8.7% for the third quarter
of 2019 as compared to the third quarter of 2018.
The consolidated retail operating loss for the
third quarter of 2019 was $0.4 million as compared to operating
income of $0.9 million for the third quarter of 2018, a decrease of
$1.3 million. This also compares to an operating loss of $3.0
million for the second quarter of 2019, a sequential improvement of
$2.6 million. The 61 comparable stores generated operating income
of $0.4 million for the quarter, or 0.6% of sales, as compared to
$1.8 million, or 2.8% of sales, for the prior year quarter. Gross
margins for comparable stores were 52.2% for both the third quarter
of 2019 and 2018. SG&A expenses for comparable stores
decreased $0.8 million to $31.0 million or 51.6% of sales as
compared to $31.8 million or 49.5% of sales for the third quarter
of 2018. The increase as a percentage of sales was primarily
due to a de-leveraging of fixed costs from lower sales volumes and
higher financing costs as more of the Company’s retail customers
chose to finance their purchases through the Company’s third-party
credit provider. These increases were partially offset by
various fixed cost decreases that resulted from changes in the
Company’s cost structure.
Non-comparable stores generated sales of $6.5
million with an operating loss of $0.8 million as compared to sales
of $1.3 million and an operating loss of $0.9 million in the prior
year quarter. As part of the $0.8 million loss for the third
quarter of 2019, the Company incurred $0.3 million in new store
pre-opening costs, a decrease of $0.2 million from the prior
year. In addition, the Company incurred $0.1 million of post
opening startup losses for both the third quarter of 2019 and
2018.
Early in September 2019, the Company closed its
Gulfport, MS store due to continued operating losses and its desire
to exit the geographic market. The Company plans to market
the real estate for sale and expects to receive proceeds in excess
of its book value.
“We are seeking to improve this year’s
comparable store sales trend on multiple fronts,” said
Spilman. “Although we saw the customary spike in sales around
the Labor Day weekend, our year-over-year results have not improved
thus far in the fourth quarter. Positively, despite employing
a more aggressive promotional strategy, corporate retail gross
margins for the quarter held firm at 52.2%. Our new Everyday
Value assortment is building as we added a third upholstery group
and our two opening price point bedrooms to the collection.
The everyday low-price products, combined with a 14 day in the home
service promise, are intended to add an element of immediacy to
supplement our in-home design capability, which has generated over
40% of our sales dollars so far this year. Ultimately, the
Everyday Value products will comprise 15% to 20% of the SKUs in the
line. We are pleased with the sales results of this effort
since the initial introduction this spring. In store, we are
evaluating the more successful elements of our Generation 3 store
prototype, particularly the fixturing and the touch screen
technology that we employ. We plan to add these features to
several of our current stores to enhance the in-store experience in
the coming months. We have also realigned our retail field
organization to manage the stores with a more nimble and
cost-effective staffing model. We will begin to see the
results of these moves toward the end of the fourth quarter and
into the 2020 fiscal year.”
Logistical Services
Segment
Revenues for Zenith were $18.9 million for the
third quarter of 2019 as compared to $20.1 million for 2018, a
decrease of $1.2 million or 6.1%. This decrease was primarily
due to the previously announced discontinuation of home delivery
services to third-party customers along with lower over the road
trucking revenue, partially offset by revenue increases in the
third-party warehousing operations. Zenith’s operating
expenses were $18.3 million or 96.8% of sales as compared to $20.0
million or 99.3% of sales for the prior year period.
About Bassett Furniture Industries, Inc.Bassett
Furniture Industries, Inc. (NASDAQ:BSET), is a leading manufacturer
and marketer of high quality home furnishings. With 103 company-
and licensee-owned stores at the time of this release, Bassett has
leveraged its strong brand name in furniture into a network of
corporate and licensed stores that focus on providing consumers
with a friendly environment for buying furniture and accessories.
The most significant growth opportunity for Bassett continues to be
the Company’s dedicated retail store program. Bassett’s retail
strategy includes stylish, custom-built furniture that is ready for
delivery in the home within 30 days. The stores also feature the
latest on-trend furniture styles, free in-home design visits, and
coordinated decorating accessories. Bassett also has a traditional
wholesale business with more than 700 accounts on the open market,
across the United States and internationally and a logistics
business specializing in home furnishings. For more
information, visit the Company’s website at bassettfurniture.com.
(BSET-E)
Certain of the statements in this
release, particularly those preceded by, followed by or including
the words “believes,” “plans,” “expects,” “anticipates,” “intends,”
“should,” “estimates,” or similar expressions, or those relating to
or anticipating financial results or changes in operations for
periods beyond the end of the third fiscal quarter of 2019,
constitute “forward looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended. For
those statements, Bassett claims the protection of the safe harbor
for forward looking statements contained in the Private Securities
Litigation Reform Act of 1995. In many cases, Bassett cannot
predict what factors would cause actual results to differ
materially from those indicated in the forward looking
statements. Expectations included in the forward-looking
statements are based on preliminary information as well as certain
assumptions which management believes to be reasonable at this
time. The following important factors affect Bassett and
could cause actual results to differ materially from those
indicated in the forward looking statements: the effects of
national and global economic or other conditions and future events
on the retail demand for home furnishings and the ability of
Bassett’s customers and consumers to obtain credit; the success of
marketing, logistics, retail and other initiatives; and the
economic, competitive, governmental and other factors identified in
Bassett’s filings with the Securities and Exchange
Commission. Any forward-looking statement that Bassett makes
speaks only as of the date of such statement, and Bassett
undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or
otherwise. Comparisons of results for current and any prior
periods are not intended to express any future trends or indication
of future performance, unless expressed as such, and should only be
viewed as historical data.
|
BASSETT FURNITURE
INDUSTRIES, INC. AND SUBSIDIARIES |
Condensed
Consolidated Statements of Income - unaudited |
(In thousands,
except for per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Nine Months Ended |
|
August 31, 2019 |
|
August 25, 2018 |
|
August 31, 2019 |
|
August 25, 2018 |
|
|
Percent of |
|
|
Percent of |
|
|
Percent of |
|
|
Percent of |
|
Amount |
Net Sales |
|
Amount |
Net Sales |
|
Amount |
Net Sales |
|
Amount |
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Sales
revenue: |
|
|
|
|
|
|
|
|
|
|
|
Furniture and accessories |
$ |
98,369 |
|
|
|
$ |
99,807 |
|
|
|
$ |
301,550 |
|
|
|
$ |
298,605 |
|
|
Logistics |
|
11,050 |
|
|
|
|
13,149 |
|
|
|
|
36,900 |
|
|
|
|
41,603 |
|
|
Total sales revenue |
|
109,419 |
|
100.0 |
% |
|
|
112,956 |
|
100.0 |
% |
|
|
338,450 |
|
100.0 |
% |
|
|
340,208 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
furniture and accessories sold |
|
42,246 |
|
38.6 |
% |
|
|
44,821 |
|
39.7 |
% |
|
|
133,953 |
|
39.6 |
% |
|
|
133,750 |
|
39.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses excluding |
|
|
|
|
|
|
|
|
|
|
|
new
store pre-opening costs |
|
63,519 |
|
58.1 |
% |
|
|
63,279 |
|
56.0 |
% |
|
|
197,495 |
|
58.4 |
% |
|
|
192,986 |
|
56.7 |
% |
New store
pre-opening costs |
|
254 |
|
0.2 |
% |
|
|
532 |
|
0.5 |
% |
|
|
1,117 |
|
0.3 |
% |
|
|
1,435 |
|
0.4 |
% |
Early
retirement program |
|
- |
|
0.0 |
% |
|
|
- |
|
0.0 |
% |
|
|
835 |
|
0.2 |
% |
|
|
- |
|
0.0 |
% |
Income from operations |
|
3,400 |
|
3.1 |
% |
|
|
4,324 |
|
3.8 |
% |
|
|
5,050 |
|
1.5 |
% |
|
|
12,037 |
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Other loss,
net |
|
(298 |
) |
-0.3 |
% |
|
|
(492 |
) |
-0.4 |
% |
|
|
(566 |
) |
-0.2 |
% |
|
|
(1,352 |
) |
-0.4 |
% |
Income
before income taxes |
|
3,102 |
|
2.8 |
% |
|
|
3,832 |
|
3.4 |
% |
|
|
4,484 |
|
1.3 |
% |
|
|
10,685 |
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision |
|
945 |
|
0.9 |
% |
|
|
887 |
|
0.8 |
% |
|
|
1,274 |
|
0.4 |
% |
|
|
4,364 |
|
1.3 |
% |
Net
income |
$ |
2,157 |
|
2.0 |
% |
|
$ |
2,945 |
|
2.6 |
% |
|
$ |
3,210 |
|
0.9 |
% |
|
$ |
6,321 |
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
0.21 |
|
|
|
$ |
0.28 |
|
|
|
$ |
0.31 |
|
|
|
$ |
0.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
$ |
0.21 |
|
|
|
$ |
0.28 |
|
|
|
$ |
0.31 |
|
|
|
$ |
0.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASSETT FURNITURE
INDUSTRIES, INC. AND SUBSIDIARIES |
Condensed
Consolidated Balance Sheets |
(In thousands) |
|
|
(Unaudited) |
|
|
Assets |
|
August 31, 2019 |
|
November 24, 2018 |
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
14,638 |
|
|
$ |
33,468 |
|
Short-term investments |
|
|
17,643 |
|
|
|
22,643 |
|
Accounts receivable, net |
|
|
20,640 |
|
|
|
19,055 |
|
Inventories, net |
|
|
65,465 |
|
|
|
64,192 |
|
Other
current assets |
|
|
13,417 |
|
|
|
9,189 |
|
Total
current assets |
|
|
131,803 |
|
|
|
148,547 |
|
|
|
|
|
|
Property and
equipment, net |
|
|
104,908 |
|
|
|
104,863 |
|
|
|
|
|
|
Other long-term assets |
|
|
|
|
Deferred income taxes, net |
|
|
3,251 |
|
|
|
3,266 |
|
Goodwill and other intangible assets |
|
|
28,196 |
|
|
|
28,480 |
|
Other |
|
|
7,258 |
|
|
|
6,485 |
|
Total
long-term assets |
|
|
38,705 |
|
|
|
38,231 |
|
Total assets |
|
$ |
275,416 |
|
|
$ |
291,641 |
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
20,363 |
|
|
$ |
27,407 |
|
Accrued compensation and benefits |
|
|
11,046 |
|
|
|
12,994 |
|
Customer deposits |
|
|
22,484 |
|
|
|
27,157 |
|
Other accrued liabilities |
|
|
11,821 |
|
|
|
14,261 |
|
Total
current liabilities |
|
|
65,714 |
|
|
|
81,819 |
|
|
|
|
|
|
Long-term liabilities |
|
|
|
|
Post
employment benefit obligations |
|
|
12,716 |
|
|
|
13,173 |
|
Other
long-term liabilities |
|
|
13,040 |
|
|
|
6,340 |
|
Total
long-term liabilities |
|
|
25,756 |
|
|
|
19,513 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
Common stock |
|
|
50,578 |
|
|
|
52,638 |
|
Retained earnings |
|
|
135,533 |
|
|
|
140,009 |
|
Accumulated other comprehensive loss |
|
|
(2,165 |
) |
|
|
(2,338 |
) |
Total
stockholders' equity |
|
|
183,946 |
|
|
|
190,309 |
|
Total liabilities and stockholders’ equity |
|
$ |
275,416 |
|
|
$ |
291,641 |
|
|
|
|
|
|
BASSETT FURNITURE
INDUSTRIES, INC. AND SUBSIDIARIES |
Consolidated
Statements of Cash Flows - unaudited |
(In thousands) |
|
|
|
|
|
|
|
Nine Months Ended |
|
|
August 31, 2019 |
|
August 25, 2018 |
Operating activities: |
|
|
|
|
Net income |
|
$ |
3,210 |
|
|
$ |
6,321 |
|
Adjustments
to reconcile net income to net cash provided by (used in) |
|
|
|
|
operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
10,092 |
|
|
|
9,920 |
|
Gain on sale of property and equipment |
|
|
(98 |
) |
|
|
(130 |
) |
Deferred income taxes |
|
|
22 |
|
|
|
2,620 |
|
Other, net |
|
|
161 |
|
|
|
1,084 |
|
Changes in operating assets and liabilities |
|
|
|
|
Accounts receivable |
|
|
(1,760 |
) |
|
|
1,183 |
|
Inventories |
|
|
(2,105 |
) |
|
|
(5,349 |
) |
Other
current and long-term assets |
|
|
(1,986 |
) |
|
|
(496 |
) |
Customer deposits |
|
|
(4,673 |
) |
|
|
(5,939 |
) |
Accounts payable and other liabilities |
|
|
(4,922 |
) |
|
|
2,416 |
|
Net cash provided by (used in) operating
activities |
|
|
(2,059 |
) |
|
|
11,630 |
|
|
|
|
|
|
Investing activities: |
|
|
|
|
Purchases of
property and equipment |
|
|
(10,651 |
) |
|
|
(12,632 |
) |
Proceeds
from sale of property and equipment |
|
|
119 |
|
|
|
2,488 |
|
Proceeds
from maturities of investments |
|
|
5,000 |
|
|
|
482 |
|
Cash paid
for business acquisition |
|
|
- |
|
|
|
(15,556 |
) |
Other |
|
|
(506 |
) |
|
|
(672 |
) |
Net cash used in investing activities |
|
|
(6,038 |
) |
|
|
(25,890 |
) |
|
|
|
|
|
Financing activities: |
|
|
|
|
Cash
dividends |
|
|
(3,867 |
) |
|
|
(7,492 |
) |
Proceeds
from the exercise of stock options |
|
|
25 |
|
|
|
27 |
|
Other
issuance of common stock |
|
|
246 |
|
|
|
264 |
|
Repurchases
of common stock |
|
|
(6,845 |
) |
|
|
(2,848 |
) |
Taxes paid
related to net share settlement of equity awards |
|
|
- |
|
|
|
(674 |
) |
Repayments
of notes payable |
|
|
(292 |
) |
|
|
(3,233 |
) |
Net cash used in financing activities |
|
|
(10,733 |
) |
|
|
(13,956 |
) |
Change in cash and cash equivalents |
|
|
(18,830 |
) |
|
|
(28,216 |
) |
Cash
and cash equivalents - beginning of period |
|
|
33,468 |
|
|
|
53,949 |
|
|
|
. |
|
. |
Cash
and cash equivalents - end of period |
|
$ |
14,638 |
|
|
$ |
25,733 |
|
|
|
|
|
|
|
|
BASSETT FURNITURE
INDUSTRIES, INC. AND SUBSIDIARIES |
|
Segment Information
- unaudited |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Nine Months Ended |
|
|
|
|
August 31, 2019 |
|
August 25, 2018 |
|
August 31, 2019 |
|
August 25, 2018 |
|
Net
Sales |
|
|
|
|
|
|
|
|
|
Wholesale |
|
$ |
62,690 |
|
$ |
63,847 |
|
$ |
198,602 |
|
$ |
190,735 |
|
Retail -
Company-owned stores |
|
66,539 |
|
65,430 |
|
198,736 |
|
198,773 |
|
Logistical
services (1) |
|
18,899 |
|
20,119 |
|
60,743 |
|
62,770 |
|
Inter-company eliminations: |
|
|
|
|
|
|
|
|
|
Furniture and accessories |
|
(30,860) |
|
(29,470) |
|
(95,789) |
|
(90,903) |
|
Logistical
services (1) |
|
(7,849) |
|
(6,970) |
|
(23,842) |
|
(21,167) |
|
Consolidated |
|
$ |
109,419 |
|
$ |
112,956 |
|
$ |
338,450 |
|
$ |
340,208 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
Wholesale |
|
$ |
3,044 |
|
$ |
3,298 |
|
$ |
10,399 |
|
$ |
9,401 |
|
Retail |
|
(431) |
|
858 |
|
(6,430) |
|
971 |
|
Logistical
services |
|
610 |
|
139 |
|
1,574 |
|
758 |
|
Inter-company elimination |
|
177 |
|
29 |
|
342 |
|
907 |
|
Early
retirement program |
|
- |
|
- |
|
(835) |
|
- |
|
Consolidated |
|
$ |
3,400 |
|
$ |
4,324 |
|
$ |
5,050 |
|
$ |
12,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Prior period sales have been retrospectively restated to
reflect the transfer of |
|
|
|
|
|
intercompany home delivery services from logistical services to
retail. The effect of the |
|
|
|
|
|
transfer on operating income was not material. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASSETT FURNITURE
INDUSTRIES, INC. AND SUBSIDIARIES |
|
Rollforward of BHF
Store Count |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November
24, |
|
|
|
August
31, |
|
|
2018 |
Opened* |
Closed* |
Transfers |
2019 |
|
|
|
|
|
|
|
Company-owned stores |
|
65 |
6 |
- |
- |
71 |
Licensee-owned stores |
|
32 |
1 |
- |
- |
33 |
|
|
|
|
|
|
|
Total |
|
97 |
7 |
- 0 |
- 0 |
104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Does not include openings and closures due to relocation of
existing stores within a market. |
|
|
|
|
|
|
|
|
BASSETT FURNITURE
INDUSTRIES, INC. AND SUBSIDIARIES |
|
|
Supplemental Retail
Information--unaudited |
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61 Comparable Stores |
|
56 Comparable Stores |
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Nine Months
Ended |
|
Nine Months
Ended |
|
|
|
August 31, 2019 |
|
August 25, 2018 |
|
August 31, 2019 |
|
August 25, 2018 |
|
|
|
|
Percent of |
|
Percent of |
|
Percent of |
|
Percent of |
|
|
Amount |
Net Sales |
|
Amount |
Net Sales |
|
Amount |
Net Sales |
|
Amount |
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
60,018 |
|
100.0 |
% |
|
$ |
64,179 |
|
100.0 |
% |
|
$ |
174,538 |
|
100.0 |
% |
|
$ |
188,067 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales |
|
28,686 |
|
47.8 |
% |
|
|
30,650 |
|
47.8 |
% |
|
|
85,572 |
|
49.0 |
% |
|
|
90,917 |
|
48.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
31,332 |
|
52.2 |
% |
|
|
33,529 |
|
52.2 |
% |
|
|
88,966 |
|
51.0 |
% |
|
|
97,150 |
|
51.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expense* |
|
30,975 |
|
51.6 |
% |
|
|
31,750 |
|
49.5 |
% |
|
|
90,557 |
|
51.9 |
% |
|
|
91,937 |
|
48.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
$ |
357 |
|
0.6 |
% |
|
$ |
1,779 |
|
2.8 |
% |
|
$ |
(1,591 |
) |
-0.9 |
% |
|
$ |
5,213 |
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other Stores |
|
All Other Stores |
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Nine Months
Ended |
|
Nine Months
Ended |
|
|
|
August 31, 2019 |
|
August 25, 2018 |
|
August 31, 2019 |
|
August 25, 2018 |
|
|
|
|
Percent of |
|
Percent of |
|
Percent of |
|
Percent of |
|
|
Amount |
Net Sales |
|
Amount |
Net Sales |
|
Amount |
Net Sales |
|
Amount |
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
6,521 |
|
100.0 |
% |
|
$ |
1,251 |
|
100.0 |
% |
|
$ |
24,198 |
|
100.0 |
% |
|
$ |
10,706 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales |
|
3,163 |
|
48.5 |
% |
|
|
700 |
|
56.0 |
% |
|
|
12,006 |
|
49.6 |
% |
|
|
5,356 |
|
50.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
3,358 |
|
51.5 |
% |
|
|
551 |
|
44.0 |
% |
|
|
12,192 |
|
50.4 |
% |
|
|
5,350 |
|
50.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expense |
|
3,892 |
|
59.7 |
% |
|
|
940 |
|
75.1 |
% |
|
|
15,914 |
|
65.8 |
% |
|
|
8,157 |
|
76.2 |
% |
|
|
Pre-opening
store costs** |
|
254 |
|
3.9 |
% |
|
|
532 |
|
42.5 |
% |
|
|
1,117 |
|
4.6 |
% |
|
|
1,435 |
|
13.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
$ |
(788 |
) |
-12.1 |
% |
|
$ |
(921 |
) |
-73.6 |
% |
|
$ |
(4,839 |
) |
-20.0 |
% |
|
$ |
(4,242 |
) |
-39.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Comparable
store SG&A includes retail corporate overhead and
administrative costs. |
|
|
|
|
|
|
|
|
|
**Pre-opening store
costs include the accrual for straight-line rent recorded during
the period between |
|
|
|
|
|
|
|
|
date of
possession and store opening date, employee payroll and training
costs prior to store opening |
|
|
|
|
|
|
|
and other various expenses incurred prior to store
opening. |
|
|
|
|
|
|
|
|
|
|
|
|
J. Michael DanielSenior Vice President
and Chief Financial Officer(276)
629-6614 – Investors
Peter D. MorrisonVice President of
Communications(276) 629-6450 – Media
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