BASSETT, Va., Sept. 27, 2012 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq:BSET) announced today its results of operations for its fiscal quarter ended August 25, 2012.
Fiscal 2012 Third Quarter Highlights
- Consolidated sales for the third quarter 2012 increased 8.5% as compared to the third quarter 2011
- Operating profit for the third quarter was $0.8 million versus a $0.2 million loss for the third quarter last year
- Company-owned store delivered sales increased 22.5% with a 9.9% increase from the 43 comparable stores
- Repurchased 369,500 shares using $4.3 million of cash and paid $0.6 million in dividends during the quarter
- Declared a special dividend on August 29, 2012 of $1.25 per share of common stock outstanding payable on October 26, 2012 to holders of record on October 12, 2012
On a consolidated basis, the Company reported net sales for the third quarter of 2012 of $64.4 million, an increase of $5.0 million, or 8.5%, from sales levels attained in the third quarter of 2011. Operating income improved to $0.8 million from a loss of $0.2 million driven primarily by higher sales in both the wholesale and retail segments. This was offset by higher selling, general and administrative expenses due primarily to the increased number of Company-owned stores. The Company also recorded a tax benefit of $1.9 million primarily as a result of favorable provision to return adjustments related to our 2011 Federal income tax return and the release of a portion of the valuation allowance against certain deferred tax assets. As a result, the Company recorded net income of $2.4 million or $0.21 per diluted share compared to $0.4 million or $0.04 per diluted share in the third quarter of 2011."The achievement of solid growth in both our wholesale and retail segments in our fiscal third quarter was encouraging," commented Robert H. Spilman, Jr. President and Chief Executive Officer. "New product introductions, comparable corporate retail sales gains, and greater penetration with open market independent retailers contributed to the 8.5% consolidated revenue growth that the Company generated during the period. Returning from the traditional July 4th shut down of our manufacturing facilities, production schedules compared favorably to those of the past few years. And, of course, we were very pleased to post a 9.9% increase in our comparable corporate store sales. Despite continuing up front expense associated with the pending launch of our partnership with the HGTV television network, we returned to operating profitability for the quarter after posting a small operating loss for the same quarter last year."