Bassett Announces Fiscal First Quarter Results

Bassett Announces Fiscal First Quarter Results

BASSETT, Va., April 4, 2013 (GLOBE NEWSWIRE) -- Bassett Furniture Industries,
Inc. (Nasdaq:BSET) announced today its results of operations for its fiscal
quarter ended March 2, 2013.

Fiscal 2013 First Quarter Highlights

  *Consolidated sales for the first quarter of 2013 increased 31% as compared
    to the first quarter of 2012
  *Operating profit for the quarter was $2.4 million versus $0.2 million for
    the prior year quarter
  *Wholesale sales increased 27% compared to the prior year quarter
  *Company-owned store delivered sales increased 29% compared to the prior
    year quarter which included a 16% increase from the 48 comparable stores
  *Due to the Company's fiscal calendar, the first quarter of 2013 consisted
    of 14 weeks while the first quarter of 2012 consisted of 13 weeks

On a consolidated basis, the Company reported net sales for the first quarter
of 2013 of $79.8 million, an increase of $18.9 million, or 31%, over the first
quarter of 2012. As noted above, the first quarter of 2013 consisted of 14
weeks while the first quarter of 2012 consisted of 13 weeks. On an average
weekly basis, consolidated net sales increased 22%. Operating income increased
to $2.4 million from $0.2 million driven primarily by higher sales in both the
wholesale and retail segments. This was partially offset by higher selling,
general and administrative expenses due primarily to the increased number of
Company-owned stores, planned higher marketing and advertising costs to drive
continued sales growth, and increased health care costs due to higher claim
experience. The Company recorded net income of $1.0 million or $0.09 per
diluted share for the first quarter of 2013 compared to a net loss of $(0.6)
million or $(0.05) per diluted share in the first quarter of 2012.

"The sales momentum that we enjoyed at the end of 2012 continued during the
first quarter of 2013 as we posted an exciting 31% increase in consolidated
revenue," commented Robert H. Spilman, Jr., President and Chief Executive
Officer. "Allowing for the extra week in this year's fiscal calendar, the
Company grew revenue by 22% on a normalized basis. The same factors that
propelled our business during the second half of last year drove this
quarter's increase – improving sales in our Bassett Home Furnishings stores
and market share gains with independent retailers. Operating profit continued
to improve as both our wholesale and retail segments posted markedly better
results than a year ago. These positive trends combined with our financial
strength make us well positioned to continue to grow our top line and further
enhance operating performance in the future."

Wholesale Segment

Net sales for the wholesale segment were $54.0 million for the first quarter
of 2013 as compared to $42.6 million for the first quarter of 2012, an
increase of $11.4 million or 27%. On an average weekly basis (normalizing for
the extra week in the first quarter of 2013), wholesale net sales increased
18%. Wholesale shipments increased due to a 47% increase in wholesale sales
outside the BHF store network and a 17% increase in shipments to the BHF store
network. Gross margins for the wholesale segment were 33.4% for the first
quarter of 2013 as compared to 31.8% for the first quarter of 2012. This
increase was primarily due to higher margins in the upholstery operations as
increased sales volumes provided greater leverage of fixed costs, partially
offset by increased health care costs due to higher claim experience.
Wholesale SG&A increased $3.3 million to $15.0 million for the first quarter
of 2013 as compared to $11.7 million for the first quarter of 2012. SG&A costs
as a percentage of sales increased to 27.8% as compared to 27.5% for the first
quarter of 2012. Profit improvement from leveraging fixed SG&A costs through
higher sales volumes was offset by planned increased marketing and advertising
costs to drive continued sales growth.

"Both our upholstery and wood operations grew nicely in the quarter as a
number of our recent product introductions are selling well at retail," added
Spilman. "To drive volume and increase consumer awareness, we spent more
heavily on sales promotions and on national advertising in association with
our partnership with the HGTV television network. We believe that these
investments in marketing are bearing fruit in the form of increasing market
share. On a normalized basis, our upholstery and wood operations grew at the
rate of 18% and 14% respectively in the quarter. As a result, wholesale
operating income was 64% greater than the same period a year ago. Continued
growth in our domestic custom assortment as well as our offshore cut and sew
program were the major contributors to our gains in upholstery. And despite
the industry wide challenges that the casegoods segment has experienced in
recent years, we were gratified to see our new wood product introductions
drive a double digit sales increase for the second consecutive quarter."

Retail Segment

Net sales for Company-owned stores were $50.0 million for the first quarter of
2013 as compared to $38.8 million for the first quarter of 2012, an increase
of $11.2 million or 29%. The increase was comprised of a $6.1 million or 16%
increase in comparable store sales along with a $5.1 million increase in
non-comparable store sales. On an average weekly basis (normalizing for the
extra week in the first quarter of 2013), comparable store sales increased
7.6%.

While the Company does not recognize sales until goods are delivered to the
customer, management tracks written sales (the dollar value of sales orders
taken, rather than delivered) as a key store performance indicator. Written
sales for comparable stores increased by 20% for the first quarter of 2013 as
compared to the first quarter of 2012. On an average weekly basis, written
sales for comparable stores increased by 12%.

Operating results for the Company-owned stores improved from a loss of $1.0
million in the first quarter of 2012 to a loss of $0.6 million in the first
quarter of 2013. This improvement was primarily driven by the increased sales
noted above. Gross margins were slightly lower at 47.8% for the quarter as
compared to 48.1% for the prior year quarter. SG&A expense increased $4.8
million, primarily due to increased store count and higher sales volumes. As a
percentage of sales, SG&A decreased to 48.9% for the quarter as compared to
50.7% for the same quarter last year, primarily due to greater leverage of
fixed costs from higher sales. This improvement was partially offset by
increased health care costs due to higher claim experience and incremental
management and overhead costs as the Company-owned network continues to grow.
Refer to the accompanying schedule of Supplemental Retail Information for
results of operations for the Company's retail segment by comparable and all
other stores.

The following table summarizes the changes in store count during the first
quarter of 2013:

                     November 24, New    Stores   Stores March 2,
                     2012         Stores Acquired Closed 2013
                                                     
Company-owned stores  53          1     --     --   54
Licensee-owned stores 33          1     --     (1)   33
                                                     
Total                 86          2     --     (1)   87

"The progress that our corporate retail group has exhibited over the past
several reporting periods continued during the first quarter as our operating
loss was reduced by 43%," continued Spilman."The conversion of our in store
design centers to the HGTV Design Studio at Bassett played a large part in our
7.6% same store sales increase, which comes on top of a 9.1% same store sales
increase last year.Consumers are responding to our HGTV marketing campaign
and are buying more with each transaction, signifying growth in our in home
"makeover" capability, a key point of differentiation for Bassett stores.The
quarter ended with the opening of a new store in a fashionable home
furnishings shopping district in Dallas.The second quarter will see a
repositioned Hartford, CT location come on line as well as the opening of a
new small store in Raleigh, NC.We are also at the front end of the relocation
process of several of our first generation stores.We look forward to moving
these stores to locations that are more suitable to the Bassett of 2013.We
believe that our new generation stores in better situated real estate will
garner improved financial performance in these individual locations."

About Bassett Furniture Industries, Inc.

Bassett Furniture Industries, Inc. (Nasdaq:BSET), is a leading manufacturer
and marketer of high quality, mid-priced home furnishings. With 87 company-
and licensee-owned stores, 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. The most significant growth opportunity for Bassett continues to
be the Company's dedicated retail store program. Bassett's retail strategy
includes affordable custom-built furniture that is ready for delivery in the
home within 30 days. The stores also feature the latest on-trend furniture
styles, more than 1,000 upholstery fabrics, free in-home design visits, and
coordinated decorating accessories. Bassett is also growing its traditional
wholesale business with more than 500 accounts on the open market, across the
United States and internationally.For more information, visit the Company's
website at bassettfurniture.com. (BSET-E)

Certain of the statements in this release, particularly those preceded by,
followed by or including the words "believes," "expects," "anticipates,"
"intends," "should," "estimates," or similar expressions, or those relating to
or anticipating financial results for periods beyond the end of the first
fiscal quarter of 2013, 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; 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.

BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income- unaudited
(In thousands, except for per share data)
                                                                
                                                        
                                    14 Weeks Ended       13 Weeks Ended
                                    March 2, 2013        February 25, 2012
                                             Percent of          Percent of
                                    Amount    Net Sales  Amount    Net Sales
                                                                
Net sales                            $79,849 100.0%     $60,968 100.0%
                                                                
Cost of sales                        38,489   48.2%      29,297   48.1%
                                                                
Gross profit                         41,360   51.8%      31,671   51.9%
                                                                
Selling, general and administrative  38,996   48.8%      31,028   50.9%
expense
Restructuring and asset impairment   --       0.0%       236      0.4%
charges
Lease exit costs                     --       0.0%       228      0.4%
                                                                
Operating income                     2,364    3.0%       179      0.3%
                                                                
Other loss, net                      668      0.8%       1,247    2.0%
Income (loss) before income taxes    1,696    2.1%       (1,068)  -1.8%
                                                                
Income tax expense (benefit)         716      0.9%       (472)    -0.8%
Net income (loss)                    $980    1.2%       $(596)  -1.0%
                                                                
Basic earnings (loss)per share      $0.09             $(0.05) 
                                                                
Diluted earnings (loss) per share    $0.09             $(0.05) 




BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets - Unaudited
(In thousands)
                                                       
Assets                                     March 2, 2013 November24, 2012
Current assets                                          
Cash and cash equivalents                  $47,159     $45,566
Accounts receivable, net                   14,838       15,755
Inventories                                57,807       57,916
Deferred income taxes, net                 6,952        6,832
Other current assets                       5,251        6,439
Total current assets                       132,007      132,508
                                                       
Property and equipment, net                56,738       56,624
                                                       
Other long-term assets                                  
Retail real estate                         12,610       12,736
Deferred income taxes, net                 10,280       10,485
Other                                      15,352       14,827
Total long-term assets                     38,242       38,048
Total assets                               $226,987    $227,180
                                                       
Liabilities and Stockholders' Equity                    
Current liabilities                                     
Accounts payable                           $18,427     $22,405
Accrued compensation and benefits          6,742        6,926
Customer deposits                          15,955       12,253
Dividends payable                          --           542
Other accrued liabilities                  11,107       10,454
Total current liabilities                  52,231       52,580
                                                       
Long-term liabilities                                   
Post employment benefit obligations        11,501       11,577
Real estate notes payable                  2,991        3,053
Other long-term liabilities                2,291        2,690
Total long-term liabilities                16,783       17,320
                                                       
                                                       
Stockholders' equity                                    
Common stock                               54,236       54,184
Retained earnings                          104,757      104,319
Additional paid-in-capital                 184          --
Accumulated other comprehensive loss       (1,204)      (1,223)
Total stockholders' equity                 157,973      157,280
Total liabilities and stockholders' equity $226,987    $227,180




BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - unaudited
(In thousands)
                                                           
                                             14 Weeks Ended 13 Weeks Ended
                                             March 2, 2013  February 25, 2012
Operating activities:                                       
Net income (loss)                             $980         $(596)
Adjustments to reconcile net income to net
cash provided by (used in) operating                        
activities:
Depreciation and amortization                 1,434         1,316
Equity in undistributed income of investments (114)         (16)
and unconsolidated affiliated companies
Provision for restructuring and asset         --            236
impairment charges
Non-cash portion of lease exit costs          --            228
Other than temporary impairment of            --            806
investments
Deferred income taxes                         171           20
Other, net                                    (102)         (341)
Changes in operating assets and liabilities                 
Accounts receivable                           860           894
Inventories                                   109           (930)
Other current assets                          (1,120)       (439)
Accounts payable and accrued liabilities      (250)         (2,472)
Net cash provided by (used in) operating      1,968         (1,294)
activities
                                                           
Investing activities:                                       
Purchases of property and equipment           (2,621)       (1,918)
Proceeds from sale of property and equipment  955           5
Proceeds from sale of interest in affiliate   2,348         1,410
Proceeds from sales of investments            --            398
Purchases of investments                      --            (396)
Other                                         2             2
Net cash provided by (used in) investing      684           (499)
activities
                                                           
Financing activities:                                       
Repayments of real estate notes payable       (59)          (49)
Issuance of common stock                      320           39
Repurchases of common stock                   (236)         (646)
Cash dividends                                (1,084)       (6,063)
Net cash used in financing activities         (1,059)       (6,719)
Change in cash and cash equivalents           1,593         (8,512)
Cash and cash equivalents - beginning of      45,566        69,601
period
Cash and cash equivalents - end of period     $47,159      $61,089




BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Segment Information - unaudited
(In thousands)
                                                        
                                          14 Weeks Ended 13 Weeks Ended
                                          March 2, 2013  February 25, 2012
Net Sales                                                
Wholesale                                  $53,960      $42,611
Retail                                     49,957        38,816
Inter-company elimination                  (24,068)      (20,459)
Consolidated                               $79,849      $60,968
                                                        
Operating Income (Loss)                                  
Wholesale                                  $3,001       $1,831
Retail                                     (571)         (999)
Inter-company elimination                  (66)          (189)
Restructuring and asset impairment charges --            (236)
Lease exit costs                           --            (228)
Consolidated                               $2,364       $179




BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Supplemental Retail Information---unaudited
(In thousands)
                                                                
                                    48 Comparable Stores
                                    14 Weeks Ended       13 Weeks Ended
                                    March 2, 2013        February 25, 2012
                                             Percent of          Percent of
                                    Amount    Net Sales  Amount    Net Sales
                                                                
Net sales                            $44,353 100.0%     $38,270 100.0%
                                                                
Cost of sales                        23,146   52.2%      19,846   51.9%
                                                                
Gross profit                         21,207   47.8%      18,424   48.1%
                                                                
Selling, general and administrative  21,315   48.1%      19,083   49.9%
expense*
                                                                
Income (loss) from operations        $(108)  -0.3%      $(659)  -1.8%
                                                                
                                                                
                                    All Other Stores
                                    14 Weeks Ended       13 Weeks Ended
                                    March 2, 2013        February 25, 2012
                                             Percent of          Percent of
                                    Amount    Net Sales  Amount    Net Sales
                                                                
Net sales                            $5,604  100.0%     $546    100.0%
                                                                
Cost of sales                        2,937    52.4%      301      55.1%
                                                                
Gross profit                         2,667    47.6%      245      44.9%
                                                                
Selling, general and administrative  3,130    55.9%      585      107.1%
expense
                                                                
Loss from operations                 $(463)  -8.3%      $(340)  -62.2%
                                                                
*Comparable store SG&A includes retail corporate overhead and administrative
costs.

CONTACT: J. Michael Daniel
         Senior Vice President and
         Chief Financial Officer
         (276) 629-6614 - Investors
        
         Jay S. Moore
         Director of Communications
         (276) 629-6450 - Media
 
Press spacebar to pause and continue. Press esc to stop.