Bassett Makes Money in 4th Quarter

January 27, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on January 28, 2010

Bassett Furniture Inds. Inc. (Nasdaq: BSET), Bassett, Va., reported net income of $2.6 million on sales of $59.5 million for in its fiscal fourth quarter 2009, ended Nov. 28. In fourth-quarter 2008, Bassett lost $37.8 million despite sales of $61.7 million that were 3.5 percent ahead of the 2009 period.

Bassett had fiscal 2009 sales of $232.7 million, down 19.3 percent from the $288.3 million recorded in fiscal '08, which was a 53-week year. The company lost $22.7 million in 2009, compared with a loss of $40.4 million in fiscal 2008.

"The company's ongoing focus on expense reduction and working capital management began to bear fruit in the fourth quarter as we were able to post a modest profit," said Robert H. Spilman Jr., president and chief executive officer. "More importantly, perhaps, we produced $6.1 million of operating cash flow for the quarter. This marks the company's third consecutive quarter generating positive operating cash.

"Our industry remains in the grasp of a brutal sales slump," Spilman continued. "Until consumers begin to feel significantly better about the state of the economy and the safety of their jobs, we must continue to concentrate on finding ways to successfully operate at reduced sales levels. Consequently, we will once again make positive cash flow the key benchmark for 2010 as we fight for all of the market share we can garner."

During the year ended Nov. 28, 2009, Bassett acquired nine stores from licensees, one of which was acquired during the fourth quarter. In addition, the company closed four under-performing stores. The total company-owned store count as of fiscal year-end stood at 36, of which 26 were comparable stores (stores owned and operated by the Company longer than one year).

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