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.
(Dollars in millions)
| Sales | Operating Income (Loss) | |||||||||||||||||||||
| 4th Qtr | Dollar | % | 4th Qtr | % of | 4th Qtr | % of | ||||||||||||||||
| 2024 | 2023 | Change | Change | 2024 | Sales | 2023 | Sales | |||||||||||||||
| Consolidated (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. | ||||||||||||||||||||||
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 | |||||||||||||||||
| Amount | Percent of Net Sales | Amount | Percent of Net Sales | Amount | Percent of
Net Sales | Amount | Percent of Net 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 |
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