bset20180926_8k.htm

 



 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported) September 27, 2018

 


 

BASSETT FURNITURE INDUSTRIES, INCORPORATED

(Exact name of registrant as specified in its charter)

 


 

         

VIRGINIA

 

0-209

 

54-0135270

(State or other jurisdiction of

incorporation or organization)

 

(Commission File No.)

 

(I.R.S. Employer

Identification No.)

 

     

3525 FAIRYSTONE PARK HIGHWAY

BASSETT, VIRGINIA

 

24055

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code (276) 629-6000

  

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 



 

 

 

 

Item 2.02.

Results of Operations and Financial Condition.

 

On September 27, 2018 Bassett Furniture Industries issued a news release relating to, among other things, the third quarter financial results for the fiscal year ending November 24, 2018. A copy of the news release announcing this information is attached to this report as Exhibit 99.

  

Item 9.01.

Financial Statements and Exhibits.

  

   

Exhibit 99

News release issued by Bassett Furniture Industries, Inc. on September 27, 2018.

 

 

 

 

 

Signatures

 

            Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

BASSETT FURNITURE INDUSTRIES, INCORPORATED

 

 

 

 

 

Date:  September 27, 2018  

By:

/s/ J. Michael Daniel  

 

 

J. Michael Daniel

Title:    Senior Vice President – Chief Financial Officer

 

 

ex_124681.htm

 Exhibit 99

 

 

Bassett Furniture Industries, Inc.   J. Michael Daniel
P.O. Box 626    Senior Vice President and
Bassett, VA 24055   Chief Financial Officer
    (276) 629-6614 – Investors
     
    Peter D. Morrison
    Vice President of Communications
For Immediate Release    (276) 629-6450 – Media

 

  

Bassett Furniture News Release

Bassett Announces Fiscal Third Quarter Results


 

(Bassett, Va.) – September 27, 2018 – Bassett Furniture Industries, Inc. (Nasdaq: BSET) announced today its results of operations for its fiscal quarter ended August 25, 2018.

 

Fiscal 2018 Third Quarter Highlights

(Dollars in millions)

 

   

Sales

   

Operating Income

 
   

3rd Qtr

   

Dollar

   

%

   

3rd Qtr

   

% of

   

3rd Qtr

   

% of

 
   

2018

   

2017

   

Change

   

Change

   

2018

   

Sales

   

2017

   

Sales

 

Consolidated *

  $ 113.0     $ 114.3     $ (1.3 )     -1.1 %   $ 4.3       3.8 %   $ 7.3       6.4 %
                                                                 

Wholesale

  $ 63.8     $ 61.8     $ 2.1       3.4 %   $ 3.3       5.2 %   $ 4.5       7.2 %
                                                                 

Total Retail

  $ 65.4     $ 67.4     $ (2.0 )     -2.9 %   $ 0.9       1.3 %   $ 1.4       2.0 %
                                                                 

55 Comparable Stores

  $ 59.4     $ 60.4     $ (1.0 )     -1.7 %   $ 2.2       3.6 %   $ 1.2       2.0 %
                                                                 

Logistical Services

  $ 23.5     $ 24.9     $ (1.4 )     -5.6 %   $ 0.1       0.6 %   $ 1.2       4.7 %

 

* 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.

 

Net income for the quarter was $2.9 million or $0.28 per diluted share as compared to net income of $4.6 million or $0.43 per diluted share for the prior year quarter. Included in the consolidated operating and net income for the prior year quarter was a $1.2 million gain on the sale of the Las Vegas store building. Excluding the effects of this gain, operating income would have been $6.1 million or 5.3% of sales and net income would have been $3.9 million or $0.36 per diluted share for the prior year quarter, respectively.

 

“We forged ahead in the third quarter with the many growth and business enhancement initiatives that we have described in recent communications,” commented Rob Spilman, Chairman and CEO. “While we seek to improve upon the 1.1% revenue decline and resulting drop in operating income that were posted in the period, we are focused on the advancement of our strategy as we seek to build on the success of the past several years. The executional elements of our improvement strategy - our customer service model, product line extension, digital marketing, logistics, and store network expansion - are being driven in concert with the ultimate goal of attracting and retaining more Bassett customers through our vertically integrated model as time goes on. Backed by our highly recognized brand, solid balance sheet, and industry leading speed-to-market capabilities, our blueprint for the future will benefit not only our store network but also the furniture retail channels that we serve in the open market. During the quarter, we generated over $11 million of cash flow from operations while purchasing approximately $2 million of our common stock. Finally, in support of these efforts, our Board of Directors increased our quarterly dividend by 13.6% in July.”

 

 

 

 

Wholesale Segment

 

Net sales for the wholesale segment were $63.8 million for the third quarter of 2018 as compared to $61.8 million for the third quarter of 2017, an increase of $2.1 million or 3.4%. This increase was driven by $3.2 million in sales from Lane Venture, acquired during the first quarter of 2018, partially offset by a 2.7% decrease in furniture shipments to the Bassett Home Furnishings network and a 0.2% decrease in furniture shipments to the open market (outside the Bassett Home Furnishings network), as compared to the prior year period. Gross margins for the wholesale segment were 33.3% for the third quarter of 2018 as compared to 33.6% for the prior year quarter. This decrease was primarily driven by the addition of comparatively lower margins in the Lane Venture operation as both Upholstery and Wood margins were slightly higher year over year. Wholesale SG&A for the third quarter of 2018 was $18.0 million as compared to $16.3 million for the prior year period. SG&A as a percentage of sales increased to 28.2% as compared to 26.4% for the third quarter of 2017. This increase in SG&A as a percentage of sales was primarily driven by planned higher digital marketing and other brand development costs. Operating income was $3.3 million or 5.2% of sales as compared to $4.5 million or 7.2% of sales in the prior year.

 

“Wholesale shipments of Bassett branded products declined by 2% in the quarter,” continued Spilman. “There are several interesting subplots that make up the story of the wholesale quarter. Bassett Casegoods shipments continue to rebound as recent introductions resonate with retail customers. Sales of these imported wood products grew by 4.7% in the period. Bassett Custom Wood declined modestly compared to last year’s 23% growth rate of these domestically produced products. On the upholstery front, shipments of domestically made Bassett Custom Upholstery declined by 1.7% versus the record third quarter of 2017. Nevertheless, we are very encouraged by dealer reaction to the revamp of our signature Bassett Custom Upholstery program and look forward to introducing this product to our stores and independent customers later this fall. Representing some 25% of total domestic upholstery shipments, this introduction has been a major product development undertaking. We continue to invest and experiment with various elements of our website and mobile digital marketing tactics. Some of this work is foundational data collection that will provide us with the tracking metrics that will form the cornerstone of our ability to digitally track the consumer’s journey through the Bassett experience. Once again, we will invest in these capabilities until they have been fully developed over the next few quarters. With the addition of the Lane Venture volume, overall wholesale shipments grew by 3.4%. Encouragingly, our wholesale backlog (excluding Lane Venture) at quarter’s end was 16% greater than last year.”

 

“September 24, 2018 marked the first day of the new 10% tariff on goods imported from China with the threat of them increasing to 25% on January 1, 2019,” added Spilman. “Included in the over 5,700 items specified by the Trump Administration is all furniture and furniture components manufactured in China. We strongly oppose the concept of these tariffs and have worked closely with our representation in Washington lobbying against it. Fortunately, over 70% of what we sell is manufactured here in the United States with components that primarily are either made domestically or sourced from countries not subject to the new tariffs, with certain fabrics and leathers being an exception. In addition, we have transformed much of our supply chain for internationally-sourced finished goods over the last few years so that most of those goods will not be subject to the new tariffs. We have developed a plan to mitigate the cost increases, which includes instituting what we hope will be a temporary price increase on certain products.”

 

 

 

 

Retail Segment

 

Net sales for the 64 Company-owned Bassett Home Furnishings stores were $65.4 million for the third quarter of 2018 as compared to $67.4 million for the third quarter of 2017, a decrease of $2.0 million or 2.9%. The overall decrease was due to a 1.7% decrease in comparable store sales along with a $1.0 million decrease in non-comparable store sales.

 

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 increased by 0.2% for the third quarter of 2018 as compared to the third quarter of 2017.

 

The consolidated retail operating income for the third quarter of 2018 was $0.9 million as compared to $1.4 million for the third quarter of 2017, a decrease of $0.5 million. The 55 comparable stores generated operating income of $2.2 million for the quarter, or 3.6% of sales, as compared to $1.2 million, or 2.0% of sales, for the prior year quarter. Gross margins for comparable stores were 52.2% for the third quarter of 2018 as compared to 51.9% for the third quarter of 2017.  This increase was primarily due to improved pricing strategies and product mix. SG&A expenses for comparable stores decreased $1.3 million to $28.8 million or 48.5% of sales as compared to $30.2 million or 49.9% of sales for the third quarter of 2017 primarily due to lower advertising and employee benefit costs, and $0.5 million in prior year expenses associated with settling employment claims.

 

Non-comparable stores generated sales of $6.0 million with an operating loss of $1.3 million as compared to sales of $7.0 million and operating income of $0.1 million in the prior year quarter. As part of the $1.3 million loss for the third quarter of 2018, the Company incurred $0.5 million in new store pre-opening costs, an increase of $0.2 million over the prior year. In addition, the Company incurred $0.1 million of post opening startup losses compared to $0.1 million in the third quarter of 2017. Also, the prior year period included a $1.2 million gain on the sale of the Las Vegas store building. As previously stated, the Company’s retail expansion is initially costly. However, the Company believes that site selection and new store presentation will generally result in locations that operate at or above a break-even level within a reasonable period of time following store opening.

 

“Written business in our corporate stores improved as the quarter progressed,” said Spilman. “Written comparable store sales improved by a modest 0.2% but delivered comparable sales declined by 1.7%. No new corporate stores were opened in the period although we did debut a new licensed location in Daly City, California, our fifth store in the San Francisco Bay area. We are about to embark upon a robust new store opening timeline in which we will open six new stores and relocate two others over the next three quarters. Three of the new stores will be in Florida as we enter the Miami, Naples/Ft. Myers, and Sarasota markets. We have three existing stores in Florida and we plan to fill in the state over the next few years. Our footprint from Atlanta to New York performs exceptionally well and we hope to bolt on 10-12 additional (including the aforementioned three) locations to the south to complement our strength on the eastern seaboard. We are also excited about the prospects for our first Generation 3 store which opened in Frisco, Texas on September 12th. Although only open for a short time, we are particularly encouraged with the level of customer traffic and the pace of written sales. With an expanded design center, a new fixturing package and our newest technology, we seek to offer our consumers a tactile experience that builds on their initial interface with the Bassett brand on our website. As time goes on, we plan to incorporate the fundamentals of the new prototype across a large portion of the existing network.”

 

 

 

 

Logistical Services Segment

 

Revenue for Zenith was $23.5 million for the third quarter of 2018 as compared to $24.9 million for 2017, a decrease of $1.4 million or 5.6%. This decrease was primarily due to decreased revenues in both the middle and final mile operations. The middle mile decrease was due to freight reductions from one significant customer. Final mile revenues began to decline during the quarter as Zenith began the process of discontinuing the final mile service in preparation for transitioning the assets and many of the employees used in that service to the Bassett corporate retail operation, where they will be used solely for the delivery of goods to Bassett retail customers. This will result in reducing total revenue for the Logistical Services segment by approximately 20% when the transition is complete. As the majority of those revenues have been from Bassett corporate retail stores and have historically been eliminated in Bassett’s consolidated income statement, the ultimate effect is expected to be a reduction of consolidated revenues by less than 1%. Zenith’s operating expenses were $23.4 million or 99.4% of sales as compared to $23.8 million or 95.3% of sales for the prior year period. This increase in expenses as a percent of sales was primarily due to increases in fuel costs coupled with reduced leverage of fixed costs.

 

“The labor shortage in the over-the-road transportation business, the loss of volume from a major customer, and the decision to transfer the home delivery services into the Bassett corporate retail division’s hands made for a tough quarter at Zenith,” commented Spilman. “Despite the results, Zenith remains a fundamental piece of our model and we believe that the current challenges can be overcome. At its core, Zenith’s ability to efficiently move furniture over the road remains best of class and in high demand. The loss of volume from one customer was responsible for 176% of Zenith’s revenue decline in the period. The freight line remains profitable despite higher fuel costs. This part of the business is being constrained by a lack of drivers in the marketplace but we are having some early success in using our regional warehouse assets to do more short hauls to customers in zones that will allow those drivers to spend the night at home. Our warehousing business is also profitable and in demand as we grew revenue by 4.7% this quarter. Our decision to cede the home delivery business to Bassett retail was based on the 80% of total home delivery revenue that Bassett represented and the incompatibility of the white glove service demanded by Bassett consumers and the separate demands of the pure play e-commerce customers that we were servicing. In essence, for the most part, Zenith home delivery personnel will become employees of Bassett retail and continue to do what they have been doing. This will allow Zenith to focus on their core competencies with a reduced overhead burden. In the end, the long haul freight excellence of Zenith coupled with its regional warehousing platform makes the business essential to Bassett’s service proposition and attractive to our other customers, especially in the unprecedented tight labor market in which we operate today.”

 

 

 


About Bassett Furniture Industries, Inc.

Bassett Furniture Industries, Inc. (NASDAQ:BSET), is a leading manufacturer and marketer of high quality home furnishings. With 97 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 2018, 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 25, 2018

   

August 26, 2017

   

August 25, 2018

   

August 26, 2017

 
           

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

  $ 99,807             $ 100,152             $ 298,605             $ 294,144          

Logistics

    13,149               14,109               41,603               40,134          

Total sales revenue

    112,956       100.0 %     114,261       100.0 %     340,208       100.0 %     334,278       100.0 %
                                                                 

Cost of furniture and accessories sold

    44,821       39.7 %     45,320       39.7 %     133,750       39.3 %     132,199       39.5 %
                                                                 

Selling, general and administrative expenses excluding new store pre-opening costs

    63,279       56.0 %     61,373       53.7 %     192,986       56.7 %     180,972       54.1 %

New store pre-opening costs

    532       0.5 %     308       0.3 %     1,435       0.4 %     1,583       0.5 %

Income from operations

    4,324       3.8 %     7,260       6.4 %     12,037       3.5 %     19,524       5.8 %
                                                                 

Gain on sale of investments

    -       0.0 %     -       0.0 %     -       0.0 %     3,267       1.0 %

Impairment of investment real estate

    -       0.0 %     -       0.0 %     -       0.0 %     (1,084 )     -0.3 %

Other loss, net

    (492 )     -0.4 %     (583 )     -0.5 %     (1,352 )     -0.4 %     (1,944 )     -0.6 %

Income before income taxes

    3,832       3.4 %     6,677       5.8 %     10,685       3.1 %     19,763       5.9 %
                                                                 

Income tax provision

    887       0.8 %     2,098       1.8 %     4,364       1.3 %     6,431       1.9 %

Net income

  $ 2,945       2.6 %   $ 4,579       4.0 %   $ 6,321       1.9 %   $ 13,332       4.0 %
                                                                 

Basic earnings per share

  $ 0.28             $ 0.43             $ 0.59             $ 1.25          
                                                                 

Diluted earnings per share

  $ 0.28             $ 0.43             $ 0.59             $ 1.24          

 

 

 

 

BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

 

   

(Unaudited)

         

 

 

August 25, 2018

   

November 25, 2017

 
Assets            

Current assets

               

Cash and cash equivalents

  $ 25,763     $ 53,949  

Short-term investments

    22,643       23,125  

Accounts receivable, net

    19,485       19,640  

Inventories, net

    63,726       54,476  

Other current assets

    8,724       8,192  

Total current assets

    140,341       159,382  
                 

Property and equipment, net

    103,205       103,244  
                 

Other long-term assets

               

Deferred income taxes, net

    5,773       8,393  

Goodwill and other intangible assets

    28,541       17,351  

Other

    6,624       5,378  

Total long-term assets

    40,938       31,122  

Total assets

  $ 284,484     $ 293,748  
                 

Liabilities and Stockholders’ Equity

               

Current liabilities

               

Accounts payable

  $ 24,219     $ 21,760  

Accrued compensation and benefits

    13,434       14,670  

Customer deposits

    21,168       27,107  

Dividends payable

    -       3,759  

Current portion of long-term debt

    436       3,405  

Other accrued liabilities

    13,031       12,655  

Total current liabilities

    72,288       83,356  
                 

Long-term liabilities

               

Post employment benefit obligations

    13,677       13,326  

Long-term debt

    -       329  

Other long-term liabilities

    6,564       5,277  

Total long-term liabilities

    20,241       18,932  
                 

Stockholders’ equity

               

Common stock

    53,326       53,690  

Retained earnings

    141,505       139,378  

Additional paid-in-capital

    -       962  

Accumulated other comprehensive loss

    (2,876 )     (2,570 )

Total stockholders' equity

    191,955       191,460  

Total liabilities and stockholders’ equity

  $ 284,484     $ 293,748  

 

 

 

 

BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows - unaudited

(In thousands)

 

   

Nine Months Ended

 
   

August 25, 2018

   

August 26, 2017

 

Operating activities:

               

Net income

  $ 6,321     $ 13,282  

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

               

Depreciation and amortization

    9,920       10,060  

Provision for asset impairment charge

    -       1,084  

Gain on sale of property and equipment

    (130 )     (1,278 )

Gain on sale of investments

    -       (3,267 )

Tenant improvement allowances received from lessors

    2,220       1,165  

Deferred income taxes

    2,620       195  

Other, net

    490       516  

Changes in operating assets and liabilities

               

Accounts receivable

    1,183       (1,018 )

Inventories

    (5,349 )     (4,190 )

Other current and long-term assets

    (496 )     1,919  

Customer deposits

    (5,939 )     (4,424 )

Accounts payable and accrued liabilities

    196       654  

Net cash provided by operating activities

    11,036       14,698  
                 

Investing activities:

               

Purchases of property and equipment

    (12,632 )     (10,817 )

Proceeds from sale of retail real estate and property and equipment

    2,488       4,474  

Cash paid for business acquisition

    (15,556 )     -  

Proceeds from maturities and sales of investments

    482       3,592  

Acquisition of retail licensee store

    -       (655 )

Other

    -       223  

Net cash used in investing activities

    (25,218 )     (3,183 )
                 

Financing activities:

               

Cash dividends

    (7,462 )     (6,544 )

Proceeds from the exercise of stock options

    27       310  

Other issuance of common stock

    264       83  

Repurchases of common stock

    (2,848 )     (83 )

Taxes paid related to net share settlement of equity awards

    (674 )     (641 )

Repayments of notes payable

    (3,311 )     (3,287 )

Net cash used in financing activities

    (14,004 )     (10,162 )

Change in cash and cash equivalents

    (28,186 )     1,353  

Cash and cash equivalents - beginning of period

    53,949       35,144  

Cash and cash equivalents - end of period

  $ 25,763     $ 36,497  

 

 

 

 

BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES

Segment Information - unaudited

(In thousands)

 

   

Quarter Ended

   

Nine Months Ended

 
   

August 25, 2018

   

August 26, 2017

   

August 25, 2018

   

August 26, 2017

 

Net Sales

                               

Wholesale

  $ 63,847     $ 61,757     $ 190,735     $ 186,025  

Retail - Company-owned stores

    65,430       67,402       198,773       196,139  

Logistical services

    23,536       24,925       73,714       71,885  

Inter-company eliminations:

                               

Furniture and accessories

    (29,470 )     (29,007 )     (90,903 )     (88,020 )

Logistical services

    (10,387 )     (10,816 )     (32,111 )     (31,751 )

Consolidated

  $ 112,956     $ 114,261     $ 340,208     $ 334,278  
                                 

Operating Income

                               

Wholesale

  $ 3,298     $ 4,466     $ 9,401     $ 15,142  

Retail

    858       1,353       971       1,377  

Logistical services

    139       1,164       758       1,736  

Inter-company elimination

    29       277       907       1,269  

Consolidated

  $ 4,324     $ 7,260     $ 12,037     $ 19,524  

 

 

 

 

BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES

Rollforward of BHF Store Count

 

   

November 25,

                           

August 25,

 
   

2017

   

Opened*

   

Closed*

   

Transfers

   

2018

 
                                         

Company-owned stores

    60       4       -       -       64  

Licensee-owned stores

    30       2       -       -       32  
                                         

Total

    90       6       -       -       96  

 

* 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)

 

   

55 Comparable Stores

   

53 Comparable Stores

 
   

Quarter Ended

   

Quarter Ended

   

Nine Months Ended

   

Nine Months Ended

 
   

August 25, 2018

   

August 26, 2017

   

August 25, 2018

   

August 26, 2017

 
           

Percent of

           

Percent of

           

Percent of

           

Percent of

 
   

Amount

   

Net Sales

   

Amount

   

Net Sales

   

Amount

   

Net Sales

   

Amount

   

Net Sales

 
                                                                 

Net sales

  $ 59,435       100.0 %   $ 60,446       100.0 %   $ 175,730       100.0 %   $ 176,236       100.0 %
                                                                 

Cost of sales

    28,424       47.8 %     29,073       48.1 %     85,104       48.4 %     86,834       49.3 %
                                                                 

Gross profit

    31,011       52.2 %     31,373       51.9 %     90,626       51.6 %     89,402       50.7 %
                                                                 

Selling, general and administrative expense*

    28,848       48.5 %     30,166       49.9 %     85,030       48.4 %     85,438       48.5 %
                                                                 

Income from operations

  $ 2,163       3.6 %   $ 1,207       2.0 %   $ 5,596       3.2 %   $ 3,964       2.2 %

 

 

   

All Other Stores

   

All Other Stores

 
   

Quarter Ended

   

Quarter Ended

   

Nine Months Ended

   

Nine Months Ended

 
   

August 25, 2018

   

August 26, 2017

   

August 25, 2018

   

August 26, 2017

 
           

Percent of

           

Percent of

           

Percent of

           

Percent of

 
   

Amount

   

Net Sales

   

Amount

   

Net Sales

   

Amount

   

Net Sales

   

Amount

   

Net Sales

 
                                                                 

Net sales

  $ 5,995       100.0 %   $ 6,956       100.0 %   $ 23,043       100.0 %   $ 19,903       100.0 %
                                                                 

Cost of sales

    2,926       48.8 %     4,024       57.8 %     11,169       48.5 %     10,794       54.2 %
                                                                 

Gross profit

    3,069       51.2 %     2,932       42.2 %     11,874       51.5 %     9,109       45.8 %
                                                                 

Selling, general and administrative expense

    3,842       64.1 %     2,478       35.6 %     15,064       65.4 %     10,113       50.8 %

Pre-opening store costs**

    532       8.9 %     308       4.4 %     1,435       6.2 %     1,583       8.0 %
                                                                 

Income (loss) from operations

  $ (1,305 )     -21.8 %   $ 146       2.1 %   $ (4,625 )     -20.1 %   $ (2,587 )     -13.0 %

 

*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 possesion and store opening date, employee payroll and training costs prior to store opening and other various expenses incurred prior to store opening.