false 0000010329 0000010329 2023-03-30 2023-03-30



Date of Report (Date of earliest event reported) March 30, 2023

(Exact name of registrant as specified in its charter)

(State or other jurisdiction of
incorporation or organization)
(Commission File No.)
(I.R.S. Employer
Identification No.)
3525 Fairystone Park Highway
Bassett, Virginia
(Address of principal executive offices)
(Zip Code)
Registrants 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)
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 March 30, 2023, Bassett Furniture Industries issued a news release relating to the first quarter financial results for the fiscal year ending November 25, 2023. A copy of the news release announcing this information is attached to this report as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 News Release issued by Bassett Furniture Industries, Inc. on March 30, 2023.
104 Cover Page Interactive Data File (embedded within the inline XBRL document).

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.
Date: March 30, 2023
/s/ J. Michael Daniel
J. Michael Daniel
Title:          Senior Vice President – Chief Financial Officer

Exhibit 99.1


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 First Quarter Results


(Bassett, Va.) – March 30, 2023 – Bassett Furniture Industries, Inc. (Nasdaq: BSET) announced today its results of operations for its first quarter ended February 25, 2023.


Fiscal 2023 First Quarter Highlights of Continuing Operations

(Dollars in millions)






Operating Income (Loss)


1st Qtr






1st Qtr


% of


1st Qtr


% of


















Consolidated (1)

  $ 107.7     $ 117.9     $ (10.2 )     -8.7 %   $ 2.7       2.5 %   $ 6.5       5.5 %


  $ 69.9     $ 83.5     $ (13.6 )     -16.3 %   $ 9.0       12.9 %   $ 10.2       12.2 %


  $ 65.0     $ 64.1     $ 0.9       1.4 %   $ 1.5       2.3 %   $ 2.6       4.1 %

Corporate & Other (2)

  $ 3.0     $ -     $ 3.0       100.0 %   $ (7.8 )     N/A     $ (6.2 )     N/A  



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




Corporate and Other includes the operations of Noa Home Inc. for 2023 along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments.  This represents a change in our segment presentation from prior periods. Previously, those shared  Corporate costs had been included in the Wholesale segment and the operations of Noa Home Inc. were included in the Retail segment.  Prior period results have been restated to conform to the current presentation.


Early in our first quarter we fulfilled the remaining excess portion of the large backlog created during the pandemic boom and are now producing and shipping at a rate commensurate with our written business. As the industry and Bassett wrestle with macroeconomic inconsistencies, we are focused on efficiently targeting our consumers, new product innovation, providing the best buying experience and service possible, and working to sharpen our value proposition on the heels of the unprecedented cost pressures that we faced over the past thirty months. We are managing our expense structure while investing in the growth initiatives that are essential for the Company’s future. Our balance sheet continues to provide the foundational element on which our strategy rests and provides the strength to weather the depth of the current market downturn.




Wholesale sales were 16% behind last year but 7.5% ahead of the last corresponding pre-pandemic quarter. For the past two months, we have been working reduced production schedules in our facilities. As a consequence, we have adjusted manufacturing employment levels by 11% this year, primarily through attrition. Total wholesale inventories were reduced by 15% for the period. As previously reported, we continue to right size our Club Level imported motion inventories and are suffering margin degradation in so doing as the inventory is valued with the exorbitant ocean freight costs incurred last year and we are discounting the product to move the goods. The corresponding effect resulted in a 250 basis point blow to overall operating margins for the quarter versus last year. The bottom-line effects of the price reduction lessened somewhat as the period unfolded but will represent a hindrance to operating results until sometime in the third quarter at current sales levels. Once we return to Club Level inventories that were shipped from Asia with current ocean freight rates, those margins will return to historical levels, which is already the case for certain styles.


The turmoil caused by pandemic supply chain upheaval is now behind us. Part of the disruption included skyrocketing raw material prices and the aforementioned freight costs. As the environment has normalized, certain manufacturing cost inputs have been reduced. Armed with the results of a thorough line-wide cost analysis, we plan to sharpen price points on key items across the line to enhance sales and improve overhead absorption in our factories. We will implement the new pricing strategy in our stores and to our wholesale customers sometime in April, which we believe will not adversely affect wholesale margins based on our internal calculations.


While year over year retail delivered sales increased by 1.4% for the quarter, retail operating profit fell to $1.5 million. Gross margins were flat compared to last year as the effects of heavier promotional activity were offset by the positive impacts of LIFO valuation adjustments. We elected to increase marketing expenses as well to maintain consumer engagement on the web and in our stores. The increase in interest rates also impacted our consumer finance costs. Our new Dallas store opened in the period and we also remodeled two other existing locations in the Dallas market to test a new fixturing package designed to further enhance accessory sales. We will begin work on our new large store (25,000 square feet) in Tampa early in April. We are excited about the new face that our latest formats put on our brand presentation, and we will monitor the performance of these locations as we consider enhancements to certain stores in the rest of the fleet.


2023 is a big year from a technology standpoint as our long-awaited digital transformation becomes more obvious with the debut of our new web platform in the next ninety days. Adding a new level of omni-channel capabilities has been a major objective from the outset and we are close to bringing it to the marketplace. On a related note, February brought the second quarter of our ownership of pure-play e-commerce provider Noa Home to a close. Noa is operating at a loss and will likely do so until at least the latter part of the year as we hone their operating metrics and adjust certain pricing strategies. We also continue to work on broadening their assortment. We value the insights that we are gaining from owning Noa and look forward to growing the business and reaching a new consumer in their existing international markets and ultimately the U.S.


Once again, we will manage our capital allocation strategy in keeping with the economic uncertainty that we see around us today. We have postponed certain elements of our capital expenditure plan as we gain clarity on consumer behavior over the next few months. Although we have slowed the pace of share repurchases as compared to the prior year, we retired $1.8 million of our stock in the quarter and plan to continue to actively acquire shares while we believe the stock is undervalued. We are confident in the investments that we are making for the future but recognize that the fluid economic environment in which we are currently operating merits the conservative capital allocation approach that we are taking.



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 92 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 (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 first fiscal quarter of 2023, 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 Bassetts 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 Bassetts 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.





Table 1


Condensed Consolidated Statements of Income - unaudited

(In thousands, except for per share data)



Quarter Ended


February 25, 2023


February 26, 2022


Percent of


Percent of




Net Sales




Net Sales


Net sales of furniture and accessories

  $ 107,698       100.0 %   $ 117,864       100.0 %

Cost of furniture and accessories sold

    50,501       46.9 %     60,471       51.3 %

Gross profit

    57,197       53.1 %     57,393       48.7 %

Selling, general and administrative expenses

    54,495       50.6 %     50,915       43.2 %

Income from operations

    2,702       2.5 %     6,478       5.5 %

Other loss, net

    (415 )     -0.4 %     (629 )     -0.5 %

Income from continuing operations before income taxes

    2,287       2.1 %     5,849       5.0 %

Income tax expense

    842       0.8 %     1,558       1.3 %

Income from continuing operations

    1,445       1.3 %     4,291       3.6 %

Income from discontinued operations - net of tax

    -               1,282          

Net income

  $ 1,445             $ 5,573          

Basic and diluted earnings per share:


Income from continuing operations

  $ 0.16             $ 0.44          

Income from discontinued operations

    -               0.13          

Basic and diluted earnings per share

  $ 0.16             $ 0.57          




Table 2


Condensed Consolidated Balance Sheets

(In thousands)







February 25, 2023


November 26, 2022


Current assets


Cash and cash equivalents

  $ 54,892     $ 61,625  

Short-term investments

    17,725       17,715  

Accounts receivable, net

    18,308       17,838  

Inventories, net

    79,011       85,477  

Recoverable income taxes

    1,707       2,353  

Other current assets

    12,103       11,487  

Total current assets

    183,746       196,495  

Property and equipment, net

    78,030       77,001  

Other long-term assets


Deferred income taxes, net

    5,438       5,528  

Goodwill and other intangible assets

    21,599       21,727  

Right of use assets under operating leases

    96,454       99,472  


    6,350       6,050  

Total long-term assets

    129,841       132,777  

Total assets

  $ 391,617     $ 406,273  

Liabilities and Stockholders Equity


Current liabilities


Accounts payable

  $ 17,956     $ 20,359  

Accrued compensation and benefits

    9,942       12,921  

Customer deposits

    31,040       35,963  

Current portion of operating lease obligations

    18,947       18,819  

Other current liabilities and accrued expenses

    12,695       12,765  

Total current liabilities

    90,580       100,827  

Long-term liabilities


Post employment benefit obligations

    10,386       9,954  

Long-term portion of operating lease obligations

    93,618       97,477  

Other long-term liabilities

    3,173       2,406  

Total long-term liabilities

    107,177       109,837  

Stockholders equity


Common stock

    44,311       44,759  

Retained earnings

    149,611       150,800  

Additional paid-in-capital

    -       -  

Accumulated other comprehensive income (loss)

    (62 )     50  

Total stockholders' equity

    193,860       195,609  

Total liabilities and stockholders equity

  $ 391,617     $ 406,273  





Table 3


Consolidated Statements of Cash Flows - unaudited

(In thousands)



Three Months Ended


February 25, 2023


February 26, 2022


Operating activities:


Net income

  $ 1,445     $ 5,573  

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


Depreciation and amortization

    2,340       3,655  

Deferred income taxes

    132       116  

Other, net

    852       770  

Changes in operating assets and liabilities


Accounts receivable

    (470 )     (4,609 )


    6,466       (3,675 )

Other current and long-term assets

    30       781  

Right of use assets under operating leases

    4,587       6,559  

Customer deposits

    (4,923 )     2,999  

Accounts payable and other liabilities

    (4,596 )     (2,194 )

Obligations under operating leases

    (5,300 )     (7,109 )

Net cash provided by operating activities

    563       2,866  

Investing activities:


Purchases of property and equipment

    (3,341 )     (2,424 )

Proceeds from sale of property and equipment

    -       9  


    (563 )     (465 )

Net cash used in investing activities

    (3,904 )     (2,880 )

Financing activities:


Cash dividends

    (1,421 )     (1,374 )

Other issuance of common stock

    80       93  

Repurchases of common stock

    (1,844 )     (765 )

Taxes paid related to net share settlement of equity awards

    (109 )     -  

Repayments of finance lease obligations

    (69 )     (434 )

Net cash used in financing activities

    (3,363 )     (2,480 )

Effect of exchenge rate changes on cash and cash equivalents

    (29 )     -  

Change in cash and cash equivalents

    (6,733 )     (2,494 )

Cash and cash equivalents - beginning of period

    61,625       34,374  

Cash and cash equivalents - end of period

  $ 54,892     $ 31,880  




Table 4


Segment Information - unaudited

(In thousands)



Quarter Ended


February 25, 2023


February 26, 2022


Sales Revenue


Wholesale sales of furniture and accessories

  $ 69,884     $ 83,485  

Less: Sales to retail segment

    (30,099 )     (29,728 )

Wholesale sales to external customers

    39,785       53,757  

Retail sales of furniture and accessories

    64,962       64,107  

Corporate & Other (1)

    2,951       -  

Consolidated net sales of furniture and accessories

  $ 107,698     $ 117,864  

Income from Operations



  $ 8,994     $ 10,202  


    1,530       2,622  

Net expenses - Corporate and other (1)

    (7,771 )     (6,245 )

Inter-company elimination

    (51 )     (101 )


  $ 2,702     $ 6,478  


(1) Corporate and Other includes the operations of Noa Home Inc. for 2023 along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments.  This represents a change in our segment presentation from prior periods. Previously, those shared Corporate costs  had been included in the Wholesale segment and the operations of Noa Home Inc. were included  in the Retail segment. Prior period results have been restated to conform to the current presentation.