Bassett Reports Fiscal Fourth Quarter Results
Bassett Furniture Industries (NASDAQ: BSET) reported its Q4 FY24 results with mixed performance. Revenue declined 11% year-over-year, but the company returned to profitability with operating income of $0.9 million. The quarter included a $1.0 million charge related to Noa Home Inc. wind-down and a $0.4 million restructuring charge for workforce reductions.
The company achieved a strong gross margin of 56.6%, primarily driven by improvements in the wholesale segment. The wholesale division reported operating income of $8.5 million (16.3% of sales), while retail operations generated $0.1 million (0.2% of sales). The quarter benefited from a $2.6 million tax benefit related to Noa Home Inc. investment loss, resulting in diluted earnings per share of $0.38 compared to a loss of $0.47 in the previous year. The company generated $6.4 million in operating cash flow.
Bassett Furniture Industries (NASDAQ: BSET) ha riportato i risultati del quarto trimestre FY24 con una performance mista. I ricavi sono diminuiti dell'11% rispetto all'anno precedente, ma l'azienda è tornata a essere redditizia con un utile operativo di 0,9 milioni di dollari. Il trimestre ha incluso una modifica di 1,0 milioni di dollari relativa alla liquidazione di Noa Home Inc. e una spesa di ristrutturazione di 0,4 milioni di dollari per riduzioni della forza lavoro.
L'azienda ha raggiunto un forte margine lordo del 56,6%, principalmente grazie a miglioramenti nel segmento all'ingrosso. La divisione all'ingrosso ha riportato un utile operativo di 8,5 milioni di dollari (16,3% delle vendite), mentre le operazioni al dettaglio hanno generato 0,1 milioni di dollari (0,2% delle vendite). Il trimestre ha beneficiato di un vantaggio fiscale di 2,6 milioni di dollari relativo alla perdita di investimento in Noa Home Inc., risultando in un utile per azione diluito di 0,38 dollari rispetto a una perdita di 0,47 dollari nell'anno precedente. L'azienda ha generato 6,4 milioni di dollari in flusso di cassa operativo.
Bassett Furniture Industries (NASDAQ: BSET) reportó sus resultados del cuarto trimestre FY24 con un desempeño mixto. Los ingresos disminuyeron un 11% interanual, pero la empresa volvió a ser rentable con un ingreso operativo de 0.9 millones de dólares. El trimestre incluyó un cargo de 1.0 millones de dólares relacionado con la liquidación de Noa Home Inc. y un cargo de reestructuración de 0.4 millones de dólares por reducciones de personal.
La empresa logró un fuerte margen bruto del 56.6%, impulsado principalmente por mejoras en el segmento mayorista. La división mayorista reportó un ingreso operativo de 8.5 millones de dólares (16.3% de las ventas), mientras que las operaciones minoristas generaron 0.1 millones de dólares (0.2% de las ventas). El trimestre se benefició de un beneficio fiscal de 2.6 millones de dólares relacionado con la pérdida de inversión en Noa Home Inc., resultando en ganancias por acción diluidas de 0.38 dólares en comparación con una pérdida de 0.47 dólares en el año anterior. La empresa generó 6.4 millones de dólares en flujo de efectivo operativo.
배시트 가구 산업 (NASDAQ: BSET)은 FY24 4분기 결과를 발표하며 혼합된 성과를 보였습니다. 매출은 전년 대비 11% 감소했지만 회사는 90만 달러의 운영 수익을 기록하며 다시 수익성을 확보했습니다. 이 분기에는 Noa Home Inc. 청산과 관련된 100만 달러의 비용과 인력 감축을 위한 40만 달러의 구조 조정 비용이 포함되었습니다.
회사는 도매 부문에서의 개선 덕분에 56.6%의 강력한 총 마진을 달성했습니다. 도매 부문은 850만 달러의 운영 수익 (매출의 16.3%)을 기록했으며, 소매 부문은 10만 달러 (매출의 0.2%)의 수익을 창출했습니다. 이번 분기는 Noa Home Inc.의 투자 손실과 관련된 260만 달러의 세금 혜택으로 혜택을 받았으며, 그 결과 희석 주당 순이익은 0.38달러로 지난해의 0.47달러 손실과 비교되었습니다. 회는 640만 달러의 운영 현금 흐름을 생성했습니다.
Bassett Furniture Industries (NASDAQ: BSET) a annoncé ses résultats du quatrième trimestre FY24 avec des performances mixtes. Le chiffre d'affaires a diminué de 11% par rapport à l'année précédente, mais l'entreprise est revenue à la rentabilité avec un revenu opérationnel de 0,9 million de dollars. Ce trimestre a inclus une charge de 1,0 million de dollars liée à la liquidation de Noa Home Inc. et une charge de restructuration de 0,4 million de dollars pour des réductions de personnel.
L'entreprise a réalisé une forte marge brute de 56,6%, principalement grâce aux améliorations dans le segment de la vente en gros. La division de vente en gros a rapporté un revenu opérationnel de 8,5 millions de dollars (16,3% des ventes), tandis que les opérations de détail ont généré 0,1 million de dollars (0,2% des ventes). Ce trimestre a bénéficié d'un avantage fiscal de 2,6 millions de dollars lié à la perte d'investissement dans Noa Home Inc., résultant en un bénéfice par action dilué de 0,38 dollar par rapport à une perte de 0,47 dollar l'année précédente. L'entreprise a généré 6,4 millions de dollars en flux de trésorerie opérationnel.
Bassett Furniture Industries (NASDAQ: BSET) hat die Ergebnisse für das 4. Quartal FY24 mit gemischter Leistung veröffentlicht. Der Umsatz sank im Jahresvergleich um 11%, aber das Unternehmen verbuchte mit einem operativen Gewinn von 0,9 Millionen Dollar wieder einen Gewinn. Das Quartal beinhaltete einen Belastung von 1,0 Millionen Dollar im Zusammenhang mit der Abwicklung von Noa Home Inc. sowie eine Umstrukturierungsbelastung von 0,4 Millionen Dollar aufgrund von Stellenabbau.
Das Unternehmen erzielte eine starke Bruttomarge von 56,6%, die hauptsächlich durch Verbesserungen im Großhandelssegment angetrieben wurde. Die Großhandelsabteilung meldete einen operativen Gewinn von 8,5 Millionen Dollar (16,3% des Umsatzes), während der Einzelhandel einen Gewinn von 0,1 Millionen Dollar (0,2% des Umsatzes) erzielte. Das Quartal profitierte von einem Steuervergünstigung von 2,6 Millionen Dollar im Zusammenhang mit dem Investitionsverlust von Noa Home Inc., was zu einem verwässerten Gewinn von 0,38 Dollar pro Aktie führte, verglichen mit einem Verlust von 0,47 Dollar im Vorjahr. Das Unternehmen erzielte einen operativen Cashflow von 6,4 Millionen Dollar.
- Return to profitability with $0.9 million operating income
- Strong gross margin of 56.6%
- Wholesale segment operating margin improved to 16.3%
- Generated $6.4 million operating cash flow
- EPS improved from -$0.47 to $0.38
- Revenue declined 11% year-over-year
- Wholesale sales decreased 13.7%
- Retail sales dropped 8.3%
- $1.4 million in restructuring and wind-down charges
Insights
Bassett Furniture's Q4 FY24 results demonstrate the effectiveness of their restructuring initiatives despite continued market headwinds. The company achieved a notable turnaround with
Key performance indicators reveal important trends:
- Wholesale segment maintained robust profitability with
16.3% operating margin, improving from13.9% YoY despite13.7% lower sales - Retail segment demonstrated resilience with near break-even performance (
0.2% operating margin) despite8.3% sales decline - Strong cash flow generation of
$6.4 million from operations indicates effective working capital management
The
The company's focus on operational efficiency and lean operations positions it well for margin sustainability, though revenue growth remains challenged by housing market conditions. Their network of 87 stores provides significant leverage potential when market conditions improve, while the traditional wholesale channel with 700+ accounts offers diversification benefits.
BASSETT, Va., Jan. 29, 2025 (GLOBE NEWSWIRE) -- 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 | ||||||||||||||||||||||
| 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
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 leverages 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 more than 700 traditional wholesale accounts on the open market, across the United States and internationally. For more information, visit the Company’s website at https://www.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 fourth 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.
Contacts:
J. Michael Daniel
Senior Vice President and
Chief Financial Officer
(276) 629-6614 – Investors
mdaniel@bassettfurniture.com
Peter D. Morrison
Vice President of Communications
(276) 629-6450 – Media
| 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 | |||||||||||||||||
| Amount | Percent of Net Sales | Amount | Percent of Net Sales | Amount | Percent of Net Sales | Amount | Percent of Net Sales | |||||||||||||
| Net sales of furniture and accessories | $ | 84,340 | $ | 94,702 | $ | 329,923 | $ | 390,136 | ||||||||||||
| Cost of furniture and accessories sold | 36,645 | 43,288 | 150,508 | 183,648 | ||||||||||||||||
| Gross profit | 47,695 | 51,414 | 179,415 | 206,488 | ||||||||||||||||
| Selling, general and administrative expenses | 45,386 | 50,518 | 187,527 | 205,227 | ||||||||||||||||
| Asset impairment charges | - | - | 5,515 | |||||||||||||||||
| Loss on contract abandonment | - | - | 1,240 | - | ||||||||||||||||
| Loss upon realization of cumulative translation adjustment | 962 | - | 962 | - | ||||||||||||||||
| Restructuring charges | 440 | 440 | ||||||||||||||||||
| Goodwill impairment charge | - | 5,409 | - | 5,409 | ||||||||||||||||
| Gain on revaluation of contingent consideration | - | - | - | 1,013 | ||||||||||||||||
| 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 | ) | - | ||||||||
| Income (loss) before income taxes | 1,220 | (4,130 | ) | - | (14,370 | ) | - | (2,488 | ) | - | ||||||||||
| Income tax expense (benefit) | (1,984 | ) | - | (28 | ) | - | (4,675 | ) | - | 683 | ||||||||||
| Net income (loss) | 3,204 | (4,102 | ) | - | (9,695 | ) | - | (3,171 | ) | - | ||||||||||
| 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 | ||||||||||
| 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 | ||||||||||
| Income (Loss) before Income Taxes | ||||||||||
| Income (Loss) from Operations | ||||||||||
| Wholesale | ||||||||||
| 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 | ||||||||||
| *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. | ||||||||||
FAQ
What was Bassett Furniture's (BSET) revenue decline in Q4 2024?
What was BSET's earnings per share in Q4 2024?
How much operating cash flow did BSET generate in Q4 2024?
What was Bassett Furniture's (BSET) gross margin in Q4 2024?
How did BSET's wholesale segment perform in Q4 2024?
