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Bassett in the Black for 2nd Quarter
July 8,
2010 by in UnCategorized
By Home Furnishings Business in Financial Reports on July 9, 2010
Bassett Furniture Industries, Bassett, Va., (NASDAQ:BSET) reported second-quarter 2010 sales of $57.8 million and net income of $100,000. That compares with sales of $57.7 million and a loss of $9.9 million in the same quarter last year.
The results for the quarter ended May 29, 2010, included $0.6 million of periodic costs associated with carrying idle retail facilities. The results for the quarter ended May 30, 2009, included $1.4 million of restructuring charges including $1.1 million of asset impairment charges related to retail store and office closures and $0.3 million of severance charges, a $0.3 million lease termination charge related to the closure of the company's Greensboro, N.C. retail office, and $1.4 million of periodic costs associated with carrying idle retail facilities. Excluding these items, net income for second-quarter 2010 would have been $0.7 million as compared to a net loss of $6.8 million for the same quarter in 2009.
As of May 29, Bassett Furniture Direct's total store network included 59 licensee-owned stores and 45 company-owned and operated stores. During the second quarter, Bassett acquired certain assets of, and now operates, one additional licensee store. The company also opened two additional stores late in the second quarter of 2010, one new and the other a store that was closed in 2008 by a former licensee. Bassett closed its Mt. Pleasant, S.C., store in March as a result of an eminent domain condemnation. In addition, two single-store licensees should complete conversions to multi-brand furniture stores during the third quarter of 2010.
"Our focus on strengthening our balance sheet and improving our operations showed more progress in the second quarter," said Robert H. Spilman Jr., president & CEO. "Gross margins improved substantially in both our retail and wholesale segments. Cost reductions and working capital management enabled us to retire the remaining $15 million obligation on our long term bank facility as well as another $5.8 million in mortgage debt. And, for the fifth consecutive quarter, we were able to generate positive operating cash flow; this time in the amount of $1.8 million. The economy has not shown a meaningful turnaround for the furniture industry overall. Therefore, we will continue to conservatively manage the business while being as aggressive as we can in our efforts to grow the company."
Click here for Bassett Furniture Industries' complete second quarter press release.