Bassett Posts 4Q Income of $5.7 Million

January 21, 2016  by in Financial Reports, Industry   

Consolidated sales for the quarter were $115.6 million, a 22 percent increase compared to $94.7 million in the same quarter last year. Excluding sales from the recently acquired Zenith Freight Lines, sales increased 7 percent.

Wholesale sales increased 6.3 percent to $64.5 million for the fourth quarter compared to $60.7 million for the fourth quarter of 2014.

Company-owned store sales increased 6.6 percent, including a comparable store sales increase of 6.7 percent, compared to the prior year quarter. Total retail operating income was $2.2 million or 3.3 percent of sales for the quarter as compared to operating income of $2.1 million or 3.3 percent of sales for the prior year quarter.

"Fiscal 2015 proved to be another strong year of sales and earnings growth for Bassett," said Robert H. Spilman Jr., president and CEO.  "Several operational milestones were accomplished in driving consolidated net revenue to $431 million, a 27 percent increase compared to 2014, resulting in a 72 percent increase in operating income to $26 million, or 6 percent of sales. Robust comparable store growth of 13 percent propelled our corporate retail group to a $6.2 million operating profit, our first ever annual profit in that division.  The acquisition of Zenith Freight Lines, LLC that took place last February solidified the future of our industry leading service proposition and contributed $3.5 million of operating profit to the final ten months of the year. Largely driven by strong retail growth, our upholstery division posted a 14 percent sales gain and improved divisional operating profit by 22 percent. Finally, our start-up solid wood custom dining line, Bench Made, exceeded our sales plan and became profitable in the third month of operation. We believe that this strong performance of the integrated components of our business in 2015 underscores the opportunity that further expansion of our retail footprint and product assortment affords us in the future.”

For the year ended Nov. 28, the company reported net income of $20.4 million compared to net income of $9.3 million in the previous year. Sales for the year were $387.4 million compared to sales of $340.7 million in the previous year.

The complete earnings release is available online.