false 0000010329 0000010329 2022-01-31 2022-01-31

 

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

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FORM 8-K

 

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CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported) January 31, 2022

 

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BASSETT FURNITURE INDUSTRIES, INCORPORATED

(Exact name of registrant as specified in its charter)

 

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Virginia		000-00209		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))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol		Name of exchange on which registered
Common Stock ($5.00 par value)		BSET		NASDAQ

 

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. ☐

 

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Item 2.02.

Results of Operations and Financial Condition.

 

On January 31, 2022 Bassett Furniture Industries issued a news release relating to the fourth quarter financial results for the fiscal year ended November 27, 2021 and discusses sale of Zenith Freight Lines, LLC assets. A copy of the news release announcing this information is attached to this report as Exhibit 99.1.

 

 

Item 8.01.

Other Events

 

On January 31, 2022, the Company issued a joint press release with J.B. Hunt Transport Services, Inc. announcing the execution of an agreement to sell the assets of Zenith Freight Lines, LLC to J.B. Hunt Transport, Inc.

 

 

Item 9.01.

Financial Statements and Exhibits.

 

(d) Exhibits

 

99.1	News Release issued by Bassett Furniture Industries, Inc. on January 31, 2022.

 

99.2	News Release regarding agreement to sell the assets of Zenith Freight Lines, Inc. issued by the Company January 31, 2022.

 

104	Cover Page Interactive Data File (embedded within the inline XBRL document).

 

 

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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: January 31, 2022	By:	/s/ J. Michael Daniel
		J. Michael Daniel Title: Senior Vice President – Chief Financial Officer

 

 

Exhibit 99.1

 

 

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

 

 

Bassett Furniture News Release

Bassett Announces Fiscal Fourth Quarter Results and Discusses Sale of Zenith Assets

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(Bassett, Va.) – January 31, 2022 – Bassett Furniture Industries, Inc. (Nasdaq: BSET) announced today its results of operations for its fourth quarter ended November 27, 2021 and discusses the previously announced sale of the assets of Zenith Freight Lines, LLC for $87 million in cash.

 

Fiscal 2021 Fourth Quarter Highlights

(Dollars in millions)

 

		Sales																Operating Income (Loss)
		4th Qtr								Dollar				%				4th				% of				4th Qtr				% of
		2021				2020				Change				Change				2021				Sales				2020				Sales
Consolidated (1)		$	129.9			$	118.4			$	11.5				9.7	%		$	7.1				5.5	%		$	10.0				8.4	%
Wholesale		$	76.0			$	67.5			$	8.5				12.8	%		$	2.9				3.8	%		$	5.9				8.7	%
Retail		$	66.4			$	64.8			$	1.6				2.5	%		$	3.4				5.1	%		$	2.5				3.9	%
Logistical Services		$	23.5			$	20.7			$	2.8				13.5	%		$	0.5				2.1	%		$	1.2				5.8	%

 

(1)	Our consolidated results include certain intercompany eliminations. See Table 4, “Segment Information” below for an illustration of the effects of these intercompany eliminations on our consolidated sales and operating income (loss).

 

Our fourth quarter concluded another turbulent year for the industry with a consolidated sales increase of 9.7%, coming in at $129.9 million. Although incoming wholesale orders did slow from 2020’s torrid pace, fourth quarter written orders were 8.7% ahead of 2019. Despite ongoing supply chain complications, we were able to slightly reduce our backlog at year end measured against the end of our third quarter. Nevertheless, we ended the year with a wholesale backlog of $90.1 million compared to $54.9 million in 2020 and $20.0 million in 2019. Raw material stock outages have improved somewhat since the end of November, making way for further reduction of the wholesale backlog to start 2022.

 

 

Operating profit of $7.1 million was behind last year due to margin pressure in our wholesale and logistics operations and higher spending levels, primarily related to technology initiatives. I am especially pleased that we generated $26.0 million of operating profit for the full year, the most since 2017, despite the aforementioned margin pressures. For the past five quarters, we have sought to combat ceaseless raw material and ocean freight increases with wholesale price increases of our own; passed along to our customers. Unfortunately, our spiraling costs coupled with late shipments from our suppliers have eroded our wholesale margins as we continue to produce goods today with higher material costs than they had when the finished goods were sold months ago. This dynamic will remain with us for the first few months of 2022 as we whittle the backlog down to normalized levels and our pricing becomes current with our costs. We hope the pace of cost increases has slowed such that future wholesale price increases will be at a more normal level. Furthermore, we are experiencing COVID related delays in our wood import business to begin the year as plant schedules have been compromised in Vietnam since a second wave of the virus hit that country this fall.

 

Supply chain issues also prevented our corporate retail stores from realizing the full benefit of the sales generated over the course of the year. In spite of that, corporate retail grew sales and profits in the fourth quarter and the year by reducing its SG&A costs significantly. Also, for the year, corporate retail gross margins improved by 200 basis points, primarily attributable to lower promotional costs and reduced levels of discounting for obsolescence. This trend continued at a greater level in the fourth quarter and should keep going in 2022.

 

2021 represented growth for all of our sales channels, led by our open market accounts, customers outside of our corporate and licensed store network. Excluding our Lane Venture outdoor division, total wholesale shipments for the year were comprised of 57% retail sales and 43% open market. Open market shipments grew by 49% compared to last year. Both our Bassett Design Center (BDC) store-within-a-store network and Bassett Club Level motion furniture store accounts were major contributors to this exciting trend. Equally exciting was the progress we made in advancing our position in the outdoor furniture arena. Though experiencing daily disruptions to our production schedule due to poor service from outdoor fabric suppliers, our sales momentum allowed us to partially overcome this handicap and grow our Lane Venture and Bassett Outdoor divisions by 28%.

 

Looking ahead, we have started a series of initiatives currently underway that are designed to grow Bassett and to make us more competitive in the short- and mid-term. We plan to invest up to $30 million in the business in 2022 in the following areas:

	●	Technology – Our digital transformation program is well underway, which includes reformatting our business data with a new Product Information Management package and introducing a new website platform this fall.
	●	Retail – We plan to open two new format stores in 2022, one of which will be in a new market while the other store will be a reposition of a store in the Dallas market. We also have plans to remodel at least three others.
	●	Manufacturing – New advanced machinery purchases are in process for both our North Carolina upholstery operations and our Virginia based woodworking facilities. We have also invested in new material handling equipment to improve the ergonomic environment of our facilities and to further protect our products on their way to our customers.
	●	Outdoor – The domestic aluminum outdoor furniture operation that we acquired in Haleyville, Alabama in 2019 has the potential to significantly contribute to our growth plan. We are negotiating to buy the facility (currently leased) and another adjacent building and continue with the upgrade program that is already underway.

 

 

Today we made a joint announcement with J.B. Hunt Transport Services, Inc (J.B. Hunt) to sell Zenith Freight Lines to a subsidiary of J.B. Hunt for $87 million subject to customary closing conditions. We expect to close the deal by the end of February. This transaction will open an exciting new chapter in our quest to provide the highest level of service to our customers. Disruption caused by the pandemic aside, we believe that the consolidation of the traditional “middle mile” segment of specialized furniture carriers is inevitable. There are already much fewer of these providers today than were in existence a few years ago. Accordingly, this thinking led us to seriously consider selling Zenith to J. B. Hunt when the initial overtures were made last year. As due diligence progressed, we came to understand the benefits that the scale of J.B. Hunt could provide in terms of equipment, technology, driver recruitment, intermodal transportation, and warehousing density. As we became more familiar with their management team and developed respect for them, we became convinced that they were the right partners for our vision to build out a nationwide network of Regional Fulfillment Centers that could serve as local warehouses for our “Make, Then Sell” stocking assortment while serving as cross docks for our “Sell, Then Make” custom programs that have been so successful for us for so long. The idea is to reduce costs to our customers and get them their goods faster, while providing more visibility to the status of their shipment in the process. We plan to open the first of these new facilities in Florida this spring and we are working on every aspect of the model that will be required to allow our new logistics strategy to serve as a linchpin for future wholesale and retail growth for Bassett. We are extremely enthusiastic about the potential to better serve our customers with the 50-year accumulated furniture know-how of Zenith in combination with the power of the JB Hunt platform.

 

Of course, there are additional considerations brought on by today’s announcement for Bassett. In light of the cash value of the transaction where we expect to net in the neighborhood of $65 million after taxes, our Board of Directors and Management will evaluate appropriate capital allocation strategies which may include any or all of the following:

	●	Payment of a special dividend
	●	Increase in the regular quarterly dividend
	●	Investment in a strategic acquisition or other partnership
	●	Increase in the share repurchase authorization
	●	Increase in capital investment in the business

 

Our business has notably improved since the return from the first phase of COVID in May 2020. Sales have grown and we have developed new capabilities and new sales channels, particularly with our Club Level motion line and with a deepening commitment to the outdoor furniture category. The partnership with J.B. Hunt and the upcoming investments in technology and new growth strategies represent a tremendous opportunity for us to build on the successful elements of our business and to augment them with new products, better technology, and higher levels of service. We will provide additional insights into our business and capital allocation strategies after the transaction with J.B. Hunt closes.

 

 

Robert H. Spilman, Jr., Chairman and CEO

 

 

About Bassett Furniture Industries, Inc.

Bassett Furniture Industries, Inc. (NASDAQ:BSET), is a leading manufacturer and marketer of high quality home furnishings. With 96 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. 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 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 fourth fiscal quarter of 2021, 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 (including, without limitation, the effects on revenue, supply and demand resulting from the duration and extent of the COVID-19 pandemic) 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.

 

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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 27, 2021								November 28, 2020								November 27, 2021								November 28, 2020
						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		$	114,364							$	105,389							$	430,886							$	337,672
Logistical services			15,532								12,994								55,648								48,191
Total sales revenue			129,896				100.0	%			118,383				100.0	%			486,534				100.0	%			385,863				100.0	%
Cost of furniture and accessories sold			56,373				43.4	%			50,427				42.6	%			209,799				43.1	%			163,567				42.4	%
Selling, general and administrative expenses			51,357				39.5	%			46,178				39.0	%			196,831				40.5	%			176,404				45.7	%
Cost of logistical services			15,057				11.6	%			11,729				9.9	%			53,905				11.1	%			46,910				12.2	%
Asset impairment charges			-				0.0	%			-				0.0	%			-				0.0	%			12,184				3.2	%
Goodwill impairment charge			-				0.0	%			-				0.0	%			-				0.0	%			1,971				0.5	%
Litigation expense			-				0.0	%			-				0.0	%			-				0.0	%			1,050				0.3	%
Income (loss) from operations			7,109				5.5	%			10,049				8.5	%			25,999				5.3	%			(16,223	)			-4.2	%
Other income (loss), net			(743	)			-0.6	%			(133	)			-0.1	%			(1,759	)			-0.4	%			(563	)			-0.1	%
Income (loss) before income taxes			6,366				4.9	%			9,916				8.4	%			24,240				5.0	%			(16,786	)			-4.4	%
Income tax provision (benefit)			1,325				1.0	%			3,373				2.8	%			6,198				1.3	%			(6,365	)			-1.6	%
Net income (loss)		$	5,041				3.9	%		$	6,543				5.5	%		$	18,042				3.7	%		$	(10,421	)			-2.7	%
Basic earnings (loss) per share		$	0.52							$	0.65							$	1.83							$	(1.05	)
Diluted earnings (loss) per share		$	0.52							$	0.65							$	1.83							$	(1.05	)

 

 

Table 2

BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

 

		(Unaudited)
		November 27, 2021				November 28, 2020
Assets
Current assets
Cash and cash equivalents		$	34,374			$	45,799
Short-term investments			17,715				17,715
Accounts receivable, net			28,168				22,340
Inventories, net			78,004				54,886
Recoverable income taxes			8,379				9,666
Other current assets			13,644				10,272
Total current assets			180,284				160,678
Property and equipment, net			94,066				90,917
Other long-term assets
Deferred income taxes, net			3,189				4,587
Goodwill and other intangible assets			23,448				23,827
Right of use assets under operating leases			114,148				116,903
Other			6,525				5,637
Total long-term assets			147,310				150,954
Total assets		$	421,660			$	402,549
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$	28,324			$	23,426
Accrued compensation and benefits			15,934				16,964
Customer deposits			51,492				39,762
Current portion of operating lease obligations			27,693				27,078
Other current liabilities and accrued expenses			10,776				11,141
Total current liabilities			134,219				118,371
Long-term liabilities
Post employment benefit obligations			12,968				12,089
Long-term portion of operating lease obligations			105,841				111,972
Other long-term liabilities			5,900				2,087
Total long-term liabilities			124,709				126,148
Stockholders’ equity
Common stock			48,811				49,714
Retained earnings			115,631				109,710
Additional paid-in-capital			113				-
Accumulated other comprehensive loss			(1,823	)			(1,394	)
Total stockholders' equity			162,732				158,030
Total liabilities and stockholders’ equity		$	421,660			$	402,549

 

 

Table 3

BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows - unaudited

(In thousands)

 

		Year Ended
		November 27, 2021				November 28, 2020
Operating activities:
Net income (loss)		$	18,042			$	(10,421	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization			14,597				13,480
Gain on lease modification			(37	)			(1,313	)
Net (gain) loss on disposals of property and equipment			(367	)			(81	)
Asset impairment charges			-				12,184
Goodwill impairment charges			-				1,971
Inventory valuation charges			2,969				4,922
Bad debt valuation charges (recoveries)			(156	)			492
Deferred income taxes			1,545				2,513
Other, net			765				(51	)
Changes in operating assets and liabilities
Accounts receivable			(5,672	)			(1,454	)
Inventories			(26,087	)			6,494
Other current and long-term assets			(2,241	)			(9,325	)
Right of use assets under operating leases			26,243				32,107
Customer deposits			11,730				14,421
Accounts payable and other liabilities			2,153				5,965
Obligations under operating leases			(28,921	)			(35,229	)
Net cash provided by operating activities			14,563				36,675
Investing activities:
Purchases of property and equipment			(10,750	)			(6,029	)
Proceeds from sale of property and equipment			382				2,345
Purchase of investments			-				(295	)
Proceeds from maturity of short-term investments			-				16
Other			(1,203	)			216
Net cash used in investing activities			(11,571	)			(3,747	)
Financing activities:
Cash dividends			(7,689	)			(4,544	)
Proceeds from the exercise of stock options			42				-
Other issuance of common stock			363				285
Repurchases of common stock			(5,566	)			(2,208	)
Taxes paid related to net share settlement of equity awards			(219	)			(228	)
Repayments of finance lease obligations			(1,348	)			(121	)
Net cash used in financing activities			(14,417	)			(6,816	)
Change in cash and cash equivalents			(11,425	)			26,112
Cash and cash equivalents - beginning of period			45,799				19,687
Cash and cash equivalents - end of period		$	34,374			$	45,799

 

 

Table 4

BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES

Segment Information - unaudited

(In thousands)

 

		Quarter Ended								Year Ended
		November 27, 2021				November 28, 2020				November 27, 2021				November 28, 2020
Sales Revenue
Wholesale sales of furniture and accessories		$	75,958			$	67,487			$	295,329			$	221,075
Less: Sales to retail segment			(27,967	)			(26,881	)			(112,270	)			(95,347	)
Wholesale sales to external customers			47,991				40,606				183,059				125,728
Retail sales of furniture and accessories			66,373				64,783				247,827				211,944
Consolidated net sales of furniture and accessories			114,364				105,389				430,886				337,672
Logistical services revenue			23,452				20,736				86,977				75,158
Less: Services to wholesale segment			(7,920	)			(7,742	)			(31,329	)			(26,967	)
Logistical services to external customers			15,532				12,994				55,648				48,191
Total sales revenue		$	129,896			$	118,383			$	486,534			$	385,863
Operating Income (Loss)
Wholesale		$	2,868			$	5,932			$	17,490			$	4,587
Retail			3,381				2,507				7,044				(9,497	)
Logistical services			476				1,230				1,743				1,245
Inter-company elimination			384				380				(278	)			2,647
Asset impairment charges			-				-				-				(12,184	)
Goodwill impairment charge			-				-				-				(1,971	)
Litigation expense			-				-				-				(1,050	)
Consolidated		$	7,109			$	10,049			$	25,999			$	(16,223	)

 

Exhibit 99.2

 

FOR IMMEDIATE RELEASE

 

J. Michael Daniel Senior Vice President and Chief Financial Officer (276) 629-6614 – Investors		Brad Delco Vice President - Finance & Investor Relations (479) 820-2723

 

J.B. HUNT TO ACQUIRE ZENITH FREIGHT LINES FROM BASSETT

 

ANTICIPATED ISSUE DATE/TIME – 7 AM CT, January 31, 2022

 

BASSETT, Va. and LOWELL, Ark., January 31, 2022 – J.B. Hunt Transport Services Inc (NASDAQ: JBHT), one of the largest supply chain solutions providers in North America, and Bassett Furniture Industries, Inc. (NASDAQ: BSET), a leading manufacturer and marketer of high-quality home furnishings, announced today that Bassett and J.B. Hunt Transport, Inc., the wholly-owned operating subsidiary of J.B. Hunt Transport Services, Inc., have entered into a definitive agreement under which J.B. Hunt Transport will acquire the assets of Zenith Freight Lines, LLC, a wholly-owned subsidiary of Bassett, for approximately $87 million.

 

Upon closing of the transaction, J.B. Hunt and Bassett will enter into a long-term master services agreement whereby J.B. Hunt will continue to provide the exceptional service Zenith has performed for Bassett for almost 50 years.

 

“This investment enhances J.B. Hunt’s furniture delivery capabilities by expanding our nationwide, end-to-end supply chain solution for our customers, and we look forward to establishing a long-term connection with Bassett, a manufacturer and retailer of high-quality home furnishings and a leader in the industry,” said John Roberts, president and CEO of J.B. Hunt.

 

“The sale of Zenith opens an exciting new chapter in our quest to provide the highest level of service to our customers,” said Robert H. Spilman, Jr., Bassett’s CEO and Chairman of the Board. “Disruption caused by the pandemic aside, we believe that the consolidation of traditional specialized furniture transportation is inevitable. As discussions with J.B. Hunt progressed, we came to understand the benefits that the scale of J.B. Hunt could provide in terms of equipment, technology, driver recruitment, intermodal transportation, and warehousing density. In addition, we developed a healthy respect for the management team and their operating culture. We are extremely enthusiastic about the potential to better serve our customers with the 50-year accumulated furniture transportation know-how of Zenith in combination with the power of the J.B. Hunt platform.”

 

Zenith posted revenue of $87 million in the fiscal year ending November 2021, with Bassett representing one-third of its business. The transaction will be funded using J.B. Hunt’s existing cash balance and is expected to close by February 28, 2022, subject to customary closing conditions.

 

Based in Conover, NC, and founded by Jack and Debbie Hawn, Zenith provides specialized LTL transportation services for furniture manufacturers and retailers in the continental United States. Zenith moves products from manufacturing points or import locations utilizing employee drivers, late-model equipment, and approximately one-million square feet of warehouse space to facilitate over one-quarter of a million moves annually. Following the acquisition, both founders will transition to key roles with J.B. Hunt to ensure a seamless integration with minimal impact on day-to-day service.

 

 

"The sale of Zenith to J.B. Hunt represents the culmination of our life’s work in the furniture transportation industry,” said Jack L. Hawn, president of Zenith. “Becoming a part of J.B. Hunt will advance the quality service we have established by providing scalable, efficient solutions to the furniture industry.”

 

The acquisition will expand J.B. Hunt’s industry-leading Final Mile Services® segment, which operates one of the largest nationwide, commingled cross-dock operations. With 116 locations and over 3.5 million square feet of warehouse and facilities space, Final Mile has the ability to serve 100% of the contiguous United States.

 

“Zenith’s reputation in the furniture industry and their focus on quality customer service extends our model to be the best final mile provider in North America,” said Nick Hobbs, chief operating officer, executive vice president and president of Contract Services at J.B. Hunt. “We are excited to welcome the employees and customers of Zenith to J.B. Hunt.”

 

About J.B. Hunt

J.B. Hunt Transport Services Inc., an S&P 500 company, provides innovative supply chain solutions for a variety of customers throughout North America. Utilizing an integrated, multimodal approach, the company applies technology-driven methods to create the best solution for each customer, adding efficiency, flexibility, and value to their operations. J.B. Hunt services include intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, final mile, and more. J.B. Hunt Transport Services, Inc. stock trades on NASDAQ under the ticker symbol JBHT and is a component of the Dow Jones Transportation Average. J.B. Hunt Transport, Inc. is a wholly owned subsidiary of J.B. Hunt Transport Services, Inc. For more information, visit www.jbhunt.com.

 

About Bassett Furniture Industries, Inc.

Bassett Furniture Industries, Inc. (NASDAQ:BSET), is a leading manufacturer and marketer of high-quality home furnishings. With 96 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. 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 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 www.bassettfurniture.com.

 

 

Forward-Looking Statements

 

This release contains forward-looking statements which include, but are not limited to, statements about the benefits of the business combination transaction involving J.B. Hunt Transport, Inc. (“J.B. Hunt Transport”) and Bassett Furniture Industries, Inc. (“Bassett”), including the combined company’s future financial and operating results, plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this press release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements, including, but not limited to, (i) the possibility that the acquisition does not close when expected or at all because required approvals and other conditions to closing are not received or satisfied on a timely basis or at all; (ii) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (iii) the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, ongoing or future effects of the COVID-19 pandemic, interest rates, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which J.B. Hunt Transport and Bassett operate; (iv) the ability to promptly and effectively integrate the businesses of J.B. Hunt Transport and Bassett; (v) the reaction to the transaction of the companies’ customers, employees and counterparties; and (vi) diversion of management time on acquisition-related issues. Additional information on factors that might affect J.B. Hunt Transport Services, Inc.’s financial results is included in its Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on February 23, 2021. J.B. Hunt Transport Services, Inc. assumes no obligation to update the information in this press release, except as otherwise required by law.

 

 

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