StockNews.AI
BSET
StockNews.AI
202 days

Bassett Reports Fiscal Fourth Quarter Results

1. Bassett's Q4 revenue decreased 11% from last year. 2. Operating income was $0.9 million, impacted by restructuring charges. 3. Gross margin improved to 56.6%, benefiting from higher wholesale margins. 4. Tax benefits of $2.6 million recorded, aiding bottom line. 5. Company focused on efficiency and innovation amidst market challenges.

15m saved
Insight
Article

FAQ

Why Bullish?

Despite revenue decrease, profitability and efficiency improvements can positively influence BSET's stock.

How important is it?

Earnings results and strategic changes are crucial for investor confidence and stock outlook.

Why Short Term?

Immediate focus on restructuring impacts results; could affect stock performance shortly.

Related Companies

BSET
BASSETT, Va., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (NASDAQ: BSET) reported today its results of operations for its fourth quarter ended November 30, 2024. Q4 Consolidated Business Highlights: [FY 24 vs. FY 23, unless otherwise specified] Revenues decreased 11%.Operating income of $0.9 million, which included a $1.0 million charge related to the realization of cumulative translation losses associated with the wind-down of Noa Home Inc. and a $0.4 million restructuring charge for previously announced workforce reductions.Gross margin of 56.6%, driven primarily by improved margins in the wholesale segment.Recorded a $2.6 million tax benefit related to the capital loss associated with our cumulative investment in Noa Home Inc. in 2022.Diluted earnings per share of $0.38 vs. a loss of $0.47.Generated $6.4 million of operating cash flow. Fiscal 2024 Fourth Quarter Overview (Dollars in millions)  Sales Operating Income (Loss) 4th Qtr Dollar% 4th Qtr% of 4th Qtr% of 2024 2023 ChangeChange  2024 Sales  2023 SalesConsolidated (1)$84.3$94.7 $(10.4)-11.0% $0.9 1.1% $(4.5)-4.8%            Wholesale$52.3$60.6 $(8.3)-13.7% $8.5 16.3% $8.4 13.9%            Retail$53.1$57.9 $(4.8)-8.3% $0.1 0.2% $0.2 0.3%            Corporate & Other (2)$1.0$1.8 $(0.8)-44.4% $(7.0)N/A $(7.8)N/A            (1) Our consolidated results for the quarter include certain intercompany eliminations as well as a a $1.0 million charge for the realization of cumulative translation losses and a $0.4 million restructuring charge which are not allocated to our segment operating results.See Table 4, "Segment Information" below for an illustration of the effects of these items on our consolidated sales and operating income.                   (2) Corporate and Other includes the operations of Noa Home Inc. along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments.                "The steps we took in our restructuring plan helped right-size our business and we returned to profitability in the fourth quarter," said Robert H. Spilman, Jr., Bassett Chairman and Chief Executive Officer. "We delivered strong consolidated gross margins and $0.38 in diluted earnings per share. Our team remains focused on operating efficiency, leveraging our cost structure and running a leaner business. We're driving newness and innovation into Bassett's product lines, e-commerce and marketing to deliver price and value for customers. We are well-positioned for the eventual housing industry turnaround and will focus on growth and productivity until it does." Conference Call and Webcast The Company will hold a conference call to discuss its quarterly results on January 30, 2025, at 9:00 am ET. The public is invited to listen to the conference call by webcast, accessible through the Company’s investor relations website, https://investors.bassettfurniture.com/. Participants can also listen to the conference call via https://edge.media-server.com/mmc/p/4t38wrd6. A replay and transcript of the conference call will be available on demand on the investor relations site. About Bassett Furniture Industries, Inc. Bassett Furniture Industries, Inc. (NASDAQ: BSET) is a leading manufacturer and marketer of high-quality home furnishings. With 87 company- and licensee-owned stores at the time of this release, Bassett leverages 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. Bassett’s retail strategy includes stylish, custom-built furniture that features the latest on-trend furniture styles, free in-home design visits, and coordinated decorating accessories. Bassett also has more than 700 traditional wholesale accounts on the open market, across the United States and internationally. For more information, visit the Company’s website at https://www.bassettfurniture.com/. (BSET-E) Forward-Looking Statements 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 fourth fiscal quarter of 2024, 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. Contacts: J. Michael Daniel Senior Vice President and Chief Financial Officer (276) 629-6614 – Investors mdaniel@bassettfurniture.com Peter D. Morrison Vice President of Communications (276) 629-6450 – Media Table 1 BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations - unaudited (In thousands, except for per share data)                            Quarter Ended Year Ended*  November 30, 2024 November 25, 2023 November 30, 2024 November 25, 2023  AmountPercent ofNet Sales AmountPercent ofNet Sales AmountPercent ofNet Sales AmountPercent ofNet Sales              Net sales of furniture and accessories$84,340 100.0% $94,702 100.0% $329,923 100.0% $390,136 100.0% Cost of furniture and accessories sold 36,645 43.4%  43,288 45.7%  150,508 45.6%  183,648 47.1%      Gross profit 47,695 56.6%  51,414 54.3%  179,415 54.4%  206,488 52.9%              Selling, general and administrative expenses 45,386 53.8%  50,518 53.3%  187,527 56.8%  205,227 52.6% Asset impairment charges - 0.0%  - 0.0%  5,515 1.7%    Loss on contract abandonment - 0.0%  - 0.0%  1,240 0.4%  - 0.0% Loss upon realization of cumulative translation adjustment 962 1.1%  - 0.0%  962 0.3%  - 0.0% Restructuring charges 440 0.5%     440 0.1%    Goodwill impairment charge - 0.0%  5,409 5.7%  - 0.0%  5,409 1.4% Gain on revaluation of contingent consideration - 0.0%  - 0.0%  - 0.0%  1,013 2.1%    Income (loss) from operations 907 1.1%  (4,513)-4.8%  (16,269)-4.9%  (3,135)-0.8%              Interest income 598 0.7%  883 0.9%  2,673 0.8%  2,528 0.6% Other loss, net (285)-0.3%  (500)-0.5%  (774)-0.2%  (1,881)-0.5% Income (loss) before income taxes 1,220 1.4%  (4,130)-4.4%  (14,370)-4.4%  (2,488)-0.6%              Income tax expense (benefit) (1,984)-2.4%  (28)-0.0%  (4,675)-1.4%  683 0.2% Net income (loss) 3,204 3.8%  (4,102)-4.3%  (9,695)-2.9%  (3,171)-0.8%                           Basic and diluted earnings (loss) per share$0.38   $(0.47)  $(1.11)  $(0.36)               *53 weeks in fiscal 2024 versus 52 weeks in fiscal 2023.             Table 2BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets(In thousands)  (Unaudited)  Assets November 30, 2024 November 25, 2023Current assets        Cash and cash equivalents $39,551 $52,407    Short-term investments  20,360  17,775    Accounts receivable, net  13,181  13,736    Inventories, net  54,965  62,982    Recoverable income taxes  4,240  2,574    Other current assets  9,242  8,480Total current assets  141,539  157,954     Property and equipment, net  77,047  83,981     Other long-term assets        Deferred income taxes, net  6,867  4,645    Goodwill and other intangible assets  14,185  16,067    Right of use assets under operating leases  93,624  100,888    Other  7,908  6,889Total long-term assets  122,584  128,489Total assets $341,170 $370,424     Liabilities and Stockholders’ Equity    Current liabilities        Accounts payable $13,303 $16,338    Accrued compensation and benefits  6,898  8,934    Customer deposits  25,742  22,788    Current portion of operating lease obligations  18,050  18,827    Other accrued expenses  9,410  11,003Total current liabilities  73,403  77,890     Long-term liabilities        Post employment benefit obligations  10,882  10,207    Long-term portion of operating lease obligations  88,395  97,357    Other long-term liabilities  1,163  1,529Total long-term liabilities  100,440  109,093     Stockholders’ equity         Common stock  43,681  43,842     Retained earnings  122,847  139,354     Additional paid-in-capital  6  93     Accumulated other comprehensive income  793  152Total stockholders' equity  167,327  183,441Total liabilities and stockholders’ equity $341,170 $370,424 Table 3BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESConsolidated Statements of Cash Flows - unaudited(In thousands)       Year Ended*  November 30, 2024 November 25, 2023Operating activities:    Net income (loss) $(9,695) $(3,171)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      Depreciation and amortization  9,918   10,141 Non-cash asset impairment charges  5,515   - Non-cash goodwill impairment charges  -   5,409 Net loss on sale of property and equipment  7   5 Gain on revaluation of contingent consideration  -   (1,013)Inventory valuation charges  5,001   4,626 Deferred income taxes  (2,442)  831 Other, net  2,277   2,031 Changes in operating assets and liabilities:    Accounts receivable  555   4,102 Inventories  3,016   17,869 Other current and long-term assets  (2,427)  1,773 Right of use assets under operating leases  17,254   18,680 Customer deposits  2,954   (13,175)Accounts payable and other liabilities  (7,246)  (9,188)Obligations under operating leases  (20,637)  (20,196)Net cash provided by operating activities  4,050   18,724      Investing activities:    Purchases of property and equipment  (5,211)  (17,489)Proceeds from sale of property and equipment  -   500 Proceeds from disposal of discontinued operations, net  -   1,000 Investment in certificates of deposit  (2,585)  (60)Other  (972)  (1,714)Net cash used in investing activities  (8,768)  (17,763)     Financing activities:     Cash dividends  (6,654)  (5,982)Other issuance of common stock  371   318 Repurchases of common stock  (1,420)  (4,176)Taxes paid related to net share settlement of equity awards  (161)  (109)Repayments of finance lease obligations  (253)  (278)Net cash used in financing activities  (8,117)  (10,227)Effect of exchange rate changes on cash and cash equivalents (21)  48 Change in cash and cash equivalents  (12,856)  (9,218)Cash and cash equivalents - beginning of period  52,407   61,625      Cash and cash equivalents - end of period $39,551  $52,407           *53 weeks in fiscal 2024 versus 52 weeks in fiscal 2023.     Table 4 BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES Segment Information - unaudited (In thousands)             Quarter Ended Year Ended*    November 30, 2024 November 25, 2023 November 30, 2024 November 25, 2023 Sales Revenue         Wholesale sales of furniture and accessories $ 52,324 $ 60,593 $ 207,462 $ 248,911 Less: Sales to retail segment (22,054) (25,587) (87,021) (103,519) Wholesale sales to external customers 30,270 35,006 120,441 145,392 Retail sales of furniture and accessories 53,085 57,936 204,563 235,940 Corporate & Other - Noa Home (1) 985 1,760 4,919 8,804 Consolidated net sales of furniture and accessories $ 84,340 $ 94,702 $ 329,923 $ 390,136                     Income (Loss) before Income Taxes         Income (Loss) from Operations         Wholesale $ 8,471 $ 8,360 $ 25,357 $ 30,699 Retail 70 215 (6,604) (536) Net expenses - Corporate and other (1) (6,956) (7,786) (28,456) (29,926) Inter-company elimination 724 107 1,591 1,024 Asset impairment charges - - (5,515) - Loss on contract abandonment - - (1,240) - Loss upon realization of cumulative translation adjustment(962) - (962) - Restructuring charges (440) - (440) - Gain on revaluation of contingent consideration - - - 1,013 Goodwill impairment charge - (5,409) - (5,409) Consolidated income (loss) from operations 907 (4,513) (16,269) (3,135)           Interest income 598 883 2,673 2,528 Other loss, net (285) (500) (774) (1,881) Consolidated income (loss) before income taxes $ 1,220 $ (4,130) $ (14,370) $ (2,488)                     *53 weeks in fiscal 2024 versus 52 weeks in fiscal 2023.                   (1) Corporate and Other includes the operations of Noa Home Inc. along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments.                            

Related News