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bset20250129_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) January 29, 2025

BASSETT FURNITURE INDUSTRIES, INCORPORATED

(Exact name of registrant as specified in its charter)

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. ☐

Item 8.01

Other Events

On January 29, 2025, Bassett Furniture Industries issued a news release relating to the fourth quarter financial results for the fiscal year ended November 30, 2024. 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 January 29, 2025.

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

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.

January 29, 2025	By:	/s/ J. Michael Daniel
		J. Michael Daniel Title: Senior Vice President – Chief Financial & Administrative Officer

ex_771965.htm

Exhibit 99.1

	Contacts:
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
	mdaniel@bassettfurniture.com

	Peter D. Morrison
	Vice President of Communications
	(276) 629-6450 – Media

For immediate release

Bassett Reports Fiscal Fourth Quarter Results

(Bassett, Va.) – January 29, 2025 – Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its fourth quarter ended November 30, 2024.

Q4 Consolidated Business Highlights: [FY 24 vs. FY 23, unless otherwise specified]

●

Revenues decreased 11%.

●

Operating income of $0.9 million, which included a $1.0 million charge related to the realization of cumulative translation losses associated with the wind-down of Noa Home Inc. and a $0.4 million restructuring charge for previously announced workforce reductions.

●

Gross margin of 56.6%, driven primarily by improved margins in the wholesale segment.

●

Recorded a $2.6 million tax benefit related to the capital loss associated with our cumulative investment in Noa Home Inc. in 2022.

●

Diluted earnings per share of $0.38 vs. a loss of $0.47.

●

Generated $6.4 million of operating cash flow.

Fiscal 2024 Fourth Quarter Overview

(Dollars in millions)

	Sales										Operating Income (Loss)
	4th Qtr				Dollar			%			4th Qtr			% of			4th Qtr			% of
	2024		2023		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.

"The steps we took in our restructuring plan helped right-size our business and we returned to profitability in the fourth quarter," said Robert H. Spilman, Jr., Bassett Chairman and Chief Executive Officer. "We delivered strong consolidated gross margins and $0.38 in diluted earnings per share. Our team remains focused on operating efficiency, leveraging our cost structure and running a leaner business. We're driving newness and innovation into Bassett's product lines, e-commerce and marketing to deliver price and value for customers. We are well-positioned for the eventual housing industry turnaround and will focus on growth and productivity until it does."

Conference Call and Webcast

The Company will hold a conference call to discuss its quarterly results on January 30, 2025, at 9:00 am ET. The public is invited to listen to the conference call by webcast, accessible through the Company’s investor relations website, https://investors.bassettfurniture.com/. Participants can also listen to the conference call via https://edge.media-server.com/mmc/p/4t38wrd6. A replay and transcript of the conference call will be available on demand on the investor relations site.

About Bassett Furniture Industries, Inc.

Bassett Furniture Industries, Inc. (NASDAQ: BSET) is a leading manufacturer and marketer of high-quality home furnishings. With 87 company- and licensee-owned stores at the time of this release, Bassett 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. For more information, visit the Company’s website at 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 third 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.

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
				Percent of						Percent of						Percent of						Percent of
	Amount			Net Sales			Amount			Net Sales			Amount			Net Sales			Amount			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			0.2	%
Net income (loss)		3,204			3.8	%		(4,102	)		-4.3	%		(9,695	)		-2.9	%		(3,171	)		-0.8	%


Basic and diluted earnings (loss) per share	$	0.38					$	(0.47	)				$	(1.11	)				$	(0.36	)

*53 weeks in fiscal 2024 versus 52 weeks in fiscal 2023.

Table 2
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)

	(Unaudited)
Assets	November 30, 2024		November 25, 2023
Current assets
Cash and cash equivalents	$	39,551	$	52,407
Short-term investments		20,360		17,775
Accounts receivable, net		13,181		13,736
Inventories, net		54,965		62,982
Recoverable income taxes		4,240		2,574
Other current assets		9,242		8,480
Total current assets		141,539		157,954

Property and equipment, net		77,047		83,981

Other long-term assets
Deferred income taxes, net		6,867		4,645
Goodwill and other intangible assets		14,185		16,067
Right of use assets under operating leases		93,624		100,888
Other		7,908		6,889
Total long-term assets		122,584		128,489
Total assets	$	341,170	$	370,424

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	13,303	$	16,338
Accrued compensation and benefits		6,898		8,934
Customer deposits		25,742		22,788
Current portion of operating lease obligations		18,050		18,827
Other accrued expenses		9,410		11,003
Total current liabilities		73,403		77,890

Long-term liabilities
Post employment benefit obligations		10,882		10,207
Long-term portion of operating lease obligations		88,395		97,357
Other long-term liabilities		1,163		1,529
Total long-term liabilities		100,440		109,093


Stockholders’ equity
Common stock		43,681		43,842
Retained earnings		122,847		139,354
Additional paid-in-capital		6		93
Accumulated other comprehensive income		793		152
Total stockholders' equity		167,327		183,441
Total liabilities and stockholders’ equity	$	341,170	$	370,424

Table 3
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - unaudited
(In thousands)

	Year Ended*
	November 30, 2024			November 25, 2023
Operating activities:
Net income (loss)	$	(9,695	)	$	(3,171	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		9,918			10,141
Non-cash asset impairment charges		5,515			-
Non-cash goodwill impairment charges		-			5,409
Net loss on sale of property and equipment		7			5
Gain on revaluation of contingent consideration		-			(1,013	)
Inventory valuation charges		5,001			4,626
Deferred income taxes		(2,442	)		831
Other, net		2,277			2,031
Changes in operating assets and liabilities:
Accounts receivable		555			4,102
Inventories		3,016			17,869
Other current and long-term assets		(2,427	)		1,773
Right of use assets under operating leases		17,254			18,680
Customer deposits		2,954			(13,175	)
Accounts payable and other liabilities		(7,246	)		(9,188	)
Obligations under operating leases		(20,637	)		(20,196	)
Net cash provided by operating activities		4,050			18,724

Investing activities:
Purchases of property and equipment		(5,211	)		(17,489	)
Proceeds from sale of property and equipment		-			500
Proceeds from disposal of discontinued operations, net		-			1,000
Investment in certificates of deposit		(2,585	)		(60	)
Other		(972	)		(1,714	)
Net cash used in investing activities		(8,768	)		(17,763	)

Financing activities:
Cash dividends		(6,654	)		(5,982	)
Other issuance of common stock		371			318
Repurchases of common stock		(1,420	)		(4,176	)
Taxes paid related to net share settlement of equity awards		(161	)		(109	)
Repayments of finance lease obligations		(253	)		(278	)
Net cash used in financing activities		(8,117	)		(10,227	)
Effect of exchange rate changes on cash and cash equivalents		(21	)		48
Change in cash and cash equivalents		(12,856	)		(9,218	)
Cash and cash equivalents - beginning of period		52,407			61,625

Cash and cash equivalents - end of period	$	39,551		$	52,407

*53 weeks in fiscal 2024 versus 52 weeks in fiscal 2023.

Table 4
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Segment Information - unaudited
(In thousands)

	Quarter Ended						Year Ended*
	November 30, 2024			November 25, 2023			November 30, 2024			November 25, 2023
Sales Revenue
Wholesale sales of furniture and accessories	$	52,324		$	60,593		$	207,462		$	248,911
Less: Sales to retail segment		(22,054	)		(25,587	)		(87,021	)		(103,519	)
Wholesale sales to external customers		30,270			35,006			120,441			145,392
Retail sales of furniture and accessories		53,085			57,936			204,563			235,940
Corporate & Other - Noa Home⁽¹⁾		985			1,760			4,919			8,804
Consolidated net sales of furniture and accessories	$	84,340		$	94,702		$	329,923		$	390,136


Income (Loss) before Income Taxes
Income (Loss) from Operations
Wholesale	$	8,471		$	8,360		$	25,357		$	30,699
Retail		70			215			(6,604	)		(536	)
Net expenses - Corporate and other⁽¹⁾		(6,956	)		(7,786	)		(28,456	)		(29,926	)
Inter-company elimination		724			107			1,591			1,024
Asset impairment charges		-			-			(5,515	)		-
Loss on contract abandonment		-			-			(1,240	)		-
Loss upon realization of cumulative translation adjustment		(962	)		-			(962	)		-
Restructuring charges		(440	)		-			(440	)		-
Gain on revaluation of contingent consideration		-			-			-			1,013
Goodwill impairment charge		-			(5,409	)		-			(5,409	)
Consolidated income (loss) from operations		907			(4,513	)		(16,269	)		(3,135	)

Interest income		598			883			2,673			2,528
Other loss, net		(285	)		(500	)		(774	)		(1,881	)
Consolidated income (loss) before income taxes	$	1,220		$	(4,130	)	$	(14,370	)	$	(2,488	)

*53 weeks in fiscal 2024 versus 52 weeks in fiscal 2023.

⁽¹⁾	Corporate and Other includes the operations of Noa Home Inc. along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments.