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BASSETT, Va., July 8, 2010 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq:BSET) announced today its results of operations for its fiscal quarter ended May 29, 2010.
Sales for the quarter ended May 29, 2010 were $57.8 million as compared to $57.7 million for the quarter ended May 30, 2009, an increase of 0.2%. Gross margins for the second quarter of 2010 and 2009 were 49.2% and 43.4%, respectively. The margin increase was primarily a result of the retail segment's increased share of the overall sales mix, as well as improved margins in the Company-owned stores and in the wholesale operation. Selling, general and administrative expenses, excluding bad debt and notes receivable valuation charges, increased $1.5 million for the second quarter of 2010 as compared to the second quarter of 2009, again primarily due to the net addition of 11 Company-owned retail stores since the first quarter of 2009. The Company also recorded $1.1 million of bad debt and notes receivable valuation charges during the second quarter of 2010 as compared to $5.8 million for the second quarter of 2009, a $4.7 million decrease. The Company reported a profit of $0.1 million, or $0.01 per share, for the quarter ended May 29, 2010, as compared to a net loss of $9.9 million, or $0.87 per share, for the quarter ended May 30, 2009.
In order to better understand profitability trends related to on-going operations, the Company's management considers the effects of certain items on results for the quarter. Accordingly, the results for the quarter ended May 29, 2010 included $0.6 million of periodic costs associated with carrying idle retail facilities. The results for the quarter ended May 30, 2009 included $1.4 million of restructuring charges including $1.1 million of asset impairment charges related to retail store and office closures and $0.3 million of severance charges, a $0.3 million lease termination charge related to the closure of the Company's Greensboro, N.C. retail office, and $1.4 million of periodic costs associated with carrying idle retail facilities. Excluding these items, net income for the quarter ended May 29, 2010 would have been $0.7 million as compared to a net loss of $6.8 million for the quarter ended May 30, 2009. See the attached Reconciliation of Net Income (Loss) as Reported to Net Income (Loss) as Adjusted to compare quarter over quarter results without these items.