Breaking News

Kerry Says Mideast Cease-Fire Talks to Continue Tomorrow
Tweet TWEET

Bassett Announces Fiscal Second Quarter Results

Bassett Announces Fiscal Second Quarter Results

BASSETT, Va., July 9, 2013 (GLOBE NEWSWIRE) -- Bassett Furniture Industries,
Inc. (Nasdaq:BSET) announced today its results of operations for its fiscal
quarter ended June 1, 2013.

Fiscal 2013 Second Quarter Highlights

  *Consolidated sales of $81.2 million for the second quarter of 2013
    increased 20% as compared to the second quarter of 2012;
  *Operating profit for the quarter was $3.4 million versus $1.6 million for
    the prior year quarter;
  *Wholesale sales increased 17% compared to the prior year quarter;
  *Company-owned store delivered sales increased 20% compared to the prior
    year quarter, which included a 9.3% increase from the 49 comparable
    stores; and
  *Pre-tax income for the quarter was $3.3 million versus $10.0 million for
    the prior year quarter. Excluding the effect of income received during the
    second quarter of 2012 from the Continued Dumping and Subsidy Offset Act
    ("CDSOA") of 2000, pre-tax income for the second quarter of 2013 increased
    $2.3 million over the prior year quarter.

On a consolidated basis, the Company reported net sales for the second quarter
of 2013 of $81.2 million, an increase of $13.8 million, or 20%, over the
second quarter of 2012. Operating income increased to $3.4 million, or 4.2% of
sales, from $1.6 million, or 2.4% of sales, driven by higher sales in both the
wholesale and retail segments. The improvement was partially offset by $0.9
million of increased health care costs due to higher claims experience. In the
second quarter of 2012, the Company received a $9.0 million cash distribution
from U.S. Customs and Border Protection, representing the final distribution
due the Company as part of the CDSOA, which is included as other income in the
condensed consolidated statement of income. Excluding the effect of the income
from the CDSOA from the second quarter of 2012, pre-tax income increased $2.4
million from $0.9 million to $3.3 million. The Company recorded net income of
$2.0 million or $0.18 per diluted share for the second quarter of 2013
compared to net income of $8.0 million or $0.71 per diluted share in the
second quarter of 2012.

"We were pleased with the continued upward trend in our business in the second
quarter," commented Robert H. Spilman Jr., president and chief executive
officer. "This marks the third consecutive quarter in which our revenue grew
by at least 20% compared to the prior year, which underscores the fact that we
are definitely gaining market share at the moment. Virtually every sales
channel, including our Bassett Home Furnishings stores, open market furniture
stores, our juvenile division, and the HGTV Home Furniture Collections account
base generated meaningful sales increases in the period. While we acknowledge
that economic conditions have definitely improved in general, we also believe
that we are currently outpacing industry-wide sales trends.

"In posting a 110% increase in operating profit to $3.4 million, we exhibited
meaningful improvement in our quest to become a more profitable company,"
added Spilman. "Our operating performance was tempered by a $0.9 million
increase in health care costs, which we are currently addressing on several
fronts. Nevertheless, we are beginning to more effectively leverage our sales
momentum as evidenced by a 230 basis point decline in consolidated sales,
general, and administrative expenses for the quarter. As we operate through
the historically weaker third quarter, we will continue to closely monitor the
relationship between our revenues and expenses."

Wholesale Segment

Net sales for the wholesale segment were $53.9 million for the second quarter
of 2013 as compared to $45.9 million for the second quarter of 2012, an
increase of $8.0 million or 17%. Wholesale shipments to the open market
(outside the Bassett Home Furnishings store network) increased 41% and
shipments to the Bassett Home Furnishings store network increased by 8.2%
compared to the prior year quarter. Gross margins for the wholesale segment
were 32.6% for the second quarter of 2013 as compared to 32.9% for the second
quarter of 2012. This decrease was primarily due to lower margins in the wood
business from discounting discontinued product and increased health care costs
due to higher claims experience. The decrease was partially offset by
increased margins in the upholstery operations as increased sales volumes
provided greater leverage of fixed costs. Wholesale SG&A increased $1.6
million to $14.7 million for the second quarter of 2013 as compared to $13.1
million for the second quarter of 2012. SG&A as a percentage of sales
decreased to 27.3% as compared to 28.5% for the second quarter of 2012, as the
Company effectively leveraged fixed SG&A through increased sales.

"Our wholesale segment continued to post better results in the quarter as both
our upholstery and wood operations posted strong growth," continued Spilman.
"Our domestic upholstery operations, driven by strong consumer reaction to our
assortment, were able to produce at full strength. This enabled our domestic
upholstery volume to post a 20% increase in revenue and a 45% increase in
divisional operating profit. We have been able to efficiently manage our labor
costs to accommodate these robust work schedules, thus enhancing our
profitability. On the wood products front, we were again able to post double
digit sales growth despite the overall difficulty that the segment is
experiencing in the industry. Wood sales increased 16% for the period.
Divisional operating results, however, were flat. We began trimming our
overall wood SKU count to achieve better asset utilization and the
corresponding discounts affected our wood profitability in the quarter. We
plan to continue this process for the rest of 2013 in order to accomplish our
internal inventory turn objective."

Retail Segment

Net sales for Company-owned stores were $51.5 million for the second quarter
of 2013 as compared to $42.8 million for the second quarter of 2012, an
increase of $8.7 million or 20%. The increase was comprised of a $3.9 million
or 9.3% increase in comparable store sales and a $4.7 million increase in
non-comparable store sales.

While the Company does not recognize sales until goods are delivered to the
consumer, management tracks written sales (the retail dollar value of sales
orders taken, rather than delivered) as a key store performance indicator.
Written sales for comparable stores increased by 6.9% for the second quarter
of 2013 as compared to the second quarter of 2012.

Operating income for the second quarter of 2013 was $0.3 million as compared
to $0.1 million for the second quarter of 2012. Gross margins were lower at
47.4% for the quarter as compared to 48.5% for the prior year quarter due in
large part to a concerted effort to reduce clearance inventory levels at the
Company-owned stores. SG&A expense increased $3.4 million, primarily due to
increased store count and higher sales volumes. As a percentage of sales, SG&A
decreased to 46.9% for the quarter as compared to 48.4% for the same quarter
last year, primarily due to leverage of fixed costs from higher sales. This
improvement was partially offset by increased health care costs due to higher
claims experience and incremental management and overhead costs as the
Company-owned store 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 year to date through
the second quarter of 2013:

                     November 24, New    Stores   Stores June 1,
                     2012         Stores Acquired Closed 2013
                                                     
Company-owned stores  53          2     --     --   55
Licensee-owned stores 33          2     --     (1)   34
                                                     
Total                 86          4     --     (1)   89

"Our corporate retail group posted their ninth consecutive quarter of
improvement while recording an operating profit of $0.3 million," added
Spilman."The 9.3% increase in comparable store sales comes on top of a 7.9%
increase last year.We continue to enjoy the strong custom upholstery sales
that we are driving through our HGTV Design Studio at Bassett platform and we
are looking forward to introducing a new television campaign later this
year.Also, we are about to begin a very active phase of store development as
we plan to open six new corporate locations and reposition five existing
stores over the next nine months."

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 89 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 second
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)
                                                                         
                                                                           
              Quarter Ended     Quarter Ended     Six Months Ended   Six Months Ended
              June 1, 2013      May 26, 2012      June 1, 2013       May 26, 2012
                       Percent          Percent           Percent           Percent
                         of                of                 of                 of
              Amount    Net     Amount    Net     Amount     Net     Amount     Net
                         Sales             Sales              Sales              Sales
                                                                         
Net sales      $81,223 100.0%  $67,454 100.0%  $161,072 100.0%  $128,422 100.0%
                                                                         
Cost of sales  39,397   48.5%   31,793   47.1%   77,886    48.4%   61,090    47.6%
                                                                         
Gross profit   41,826   51.5%   35,661   52.9%   83,186    51.6%   67,332    52.4%
                                                                         
Selling,
general and    38,416   47.3%   33,435   49.6%   77,412    48.1%   64,463    50.2%
administrative
expense
Restructuring
and asset      --       0.0%    475      0.7%    --        0.0%    711       0.6%
impairment
charges
Lease exit     --       0.0%    131      0.2%    --        0.0%    359       0.3%
costs
Operating      3,410    4.2%    1,620    2.4%    5,774     3.6%    1,799     1.4%
income
                                                                         
Income from
Continued
Dumping &      --       0.0%    9,010    13.4%   --        0.0%    9,010     7.0%
Subsidy Offset
Act
Other loss,    (129)    -0.2%   (677)    -1.0%   (797)     -0.5%   (1,924)   -1.5%
net
Income before  3,281    4.0%    9,953    14.8%   4,977     3.1%    8,885     6.9%
income taxes
                                                                         
Income tax     (1,328)  -1.6%   (1,911)  -2.8%   (2,044)   -1.3%   (1,439)   -1.1%
expense
Net income     $1,953  2.4%    $8,042  11.9%   $2,933   1.8%    $7,446   5.8%
                                                                         
Basic earnings $0.18          $0.72          $0.27           $0.67    
per share
                                                                         
Diluted
earnings per   $0.18          $0.71          $0.27           $0.66    
share




BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets -Unaudited
(In thousands)
                                                      
Assets                                     June 1, 2013 November24, 2012
Current assets                                         
Cash and cash equivalents                  $43,571    $45,566
Short-term investments                     1,125       --
Accounts receivable, net                   15,444      15,755
Inventories, net                           55,994      57,916
Deferred income taxes, net                 7,116       6,832
Other current assets                       8,580       6,439
Total current assets                       131,830     132,508
                                                      
Property and equipment, net                57,922      56,624
                                                      
Other long-term assets                                 
Retail real estate                         12,485      12,736
Deferred income taxes, net                 9,974       10,485
Other                                      13,392      14,827
Total long-term assets                     35,851      38,048
Total assets                               $225,603   $227,180
                                                      
Liabilities and Stockholders' Equity                   
Current liabilities                                    
Accounts payable                           $18,883    $22,405
Accrued compensation and benefits          6,497       6,926
Customer deposits                          14,341      12,253
Dividends payable                          --          542
Other accrued liabilities                  10,285      10,454
Total current liabilities                  50,006      52,580
                                                      
Long-term liabilities                                  
Post employment benefit obligations        11,183      11,577
Real estate notes payable                  2,927       3,053
Other long-term liabilities                2,076       2,690
Total long-term liabilities                16,186      17,320
                                                      
                                                      
Stockholders' equity                                   
Common stock                               54,275      54,184
Retained earnings                          106,167     104,319
Additional paid-in-capital                 154         --
Accumulated other comprehensive loss       (1,185)     (1,223)
Total stockholders' equity                 159,411     157,280
Total liabilities and stockholders' equity $225,603   $227,180




BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - unaudited
(In thousands)
                                                            
                                            Six Months Ended Six Months Ended
                                            June 1, 2013     May 26, 2012
Operating activities:                                        
Net income                                   $2,933         $7,446
Adjustments to reconcile net income to net
cash provided (used in) operating                           
activities:
Depreciation and amortization                2,890           2,615
Equity in undistributed income of
investments and unconsolidated affiliated    (282)           (134)
companies
Provision for restructuring and asset        --              711
impairment charges
Non-cash portion of lease exit costs         --              359
Other than temporary impairment of           --              806
investments
Deferred income taxes                        353             107
Other, net                                   (491)           330
Changes in operating assets and liabilities                  
Accounts receivable                          243             337
Inventories                                  1,922           (2,786)
Other current assets                         (2,101)         (64)
Accounts payable and accrued liabilities     (2,644)         (1,465)
Net cash provided by operating activities    2,823           8,262
                                                            
Investing activities:                                        
Purchases of property and equipment          (5,184)         (4,352)
Proceeds from sales of property and          955             --
equipment
Proceeds from sale of interest in affiliate  2,348           1,410
Proceeds from sales of investments           --              875
Purchases of investments                     (1,125)         (857)
Other,net                                    5               13
Net cash used in investing activities        (3,001)         (2,911)
                                                            
Financing activities:                                        
Repayments of real estate notes payable      (126)           (100)
Issuance of common stock                     462             157
Repurchases of common stock                  (526)           (1,250)
Cash dividends                               (1,627)         (6,626)
Net cash used in financing activities        (1,817)         (7,819)
Change in cash and cash equivalents          (1,995)         (2,468)
Cash and cash equivalents - beginning of     45,566          69,601
period
Cash and cash equivalents - end of period    $43,571        $67,133




BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Segment Information - unaudited
(In thousands)
                                                              
                        Quarter ended Quarter ended Six months   Six months
                                                     ended        ended
                        June 1, 2013  May 26, 2012  June 1, 2013 May 26, 2012
Net Sales                                                      
Wholesale                $53,934     $45,940     $107,893   $88,550
Retail                   51,470       42,805       101,427     81,622
Inter-company            (24,181)     (21,291)     (48,248)    (41,750)
elimination
Consolidated             $81,223     $67,454     $161,072   $128,422
                                                              
Operating Income (Loss)                                        
Wholesale                $2,849      $2,033      $5,850     $3,864
Retail                   277          66           (294)       (933)
Inter-company            284          127          218         (62)
elimination
Restructuring and asset  --           (475)        --          (711)
impairment charges
Lease exit costs         --           (131)        --          (359)
Consolidated             $3,410      $1,620      $5,774     $1,799




BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Supplemental Retail Information--unaudited
(In thousands)
                                                                       
              49 Comparable Stores               48 Comparable Stores
              Quarter Ended     Quarter Ended     Six Months Ended  Six Months Ended
              June 1, 2013      May 26, 2012      June 1, 2013      May 26, 2012
                       Percent          Percent          Percent          Percent
                         of                of                of                of
              Amount    Net     Amount    Net     Amount    Net     Amount    Net
                         Sales             Sales             Sales             Sales
                                                                       
Net sales      $46,361 100.0%  $42,427 100.0%  $89,985 100.0%  $79,896 100.0%
                                                                       
Cost of sales  24,252   52.3%   21,689   51.1%   46,981   52.2%   40,950   51.3%
                                                                       
Gross profit   22,109   47.7%   20,738   48.9%   43,004   47.8%   38,946   48.7%
                                                                       
Selling,
general and    21,413   46.2%   20,231   47.7%   42,362   47.1%   38,901   48.7%
administrative
expense*
                                                                       
Income from    $696    1.5%    $507    1.2%    $642    0.7%    $45     0.0%
operations
                                                                       
                                                                       
              All Other Stores                    All Other Stores
              Quarter Ended     Quarter Ended     Six Months Ended  Six Months Ended
              June 1, 2013      May 26, 2012      June 1, 2013      May 26, 2012
                       Percent          Percent          Percent          Percent
                         of                of                of                of
              Amount    Net     Amount    Net     Amount    Net     Amount    Net
                         Sales             Sales             Sales             Sales
                                                                       
Net sales      $5,109  100.0%  $378    100.0%  $11,442 100.0%  $1,726  100.0%
                                                                       
Cost of sales  2,805    54.9%   340      89.9%   6,159    53.8%   1,226    71.0%
                                                                       
Gross profit   2,304    45.1%   38       10.1%   5,283    46.2%   500      29.0%
                                                                       
Selling,
general and    2,723    53.3%   479      126.7%  6,219    54.4%   1,478    85.6%
administrative
expense
                                                                       
Loss from      $(419)  -8.2%   $(441)  -116.6% $(936)  -8.2%   $(978)  -56.6%
operations
                                                                       
*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