Bassett Furniture Industries, Incorporated (BSET) implemented workforce reductions to better align its cost structure with current business levels. These reductions, achieved through layoffs and retirements, are expected to generate annual savings of approximately $2.5 million.The company has reduced its headcount by 11% in the past year, indicating ongoing efforts to streamline operations. It anticipates recording a $500,000 severance charge related to this initiative in the current quarter.BSET Progresses ...

Bassett Furniture Industries, Incorporated (NASDAQ: BSET ), the furnishings manufacturer and retailer, reported the company's Q3 results on the 9th of October after market close. The company saw weak revenues and earnings, related to a cybersecurity incident that halted manufacturing for several I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves a ...

Bassett Furniture Industries, Incorporated (NASDAQ:BSET) Q3 2024 Earnings Conference Call October 10, 2024 9:00 AM ET Company Participants Mike Daniel - Chief Financial Officer Rob Spilman - Chairman and Chief Executive Officer Conference Call Participants Anthony Lebiedzinski - Sidoti & Company Brian Gordon - Water Tower Research Operator Good day and thank you for standing by. Welcome to Bassett Furniture Industries Q3 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode ...

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Bassett Furniture Industries, Incorporated for the periods ended August 31, 2024, and August 26, 2023 [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of $4.5 million for the quarter and $12.9 million for the nine months ended August 31, 2024, a significant decline from the previous year Consolidated Statements of Operations Highlights (Unaudited, In thousands) | Metric | Quarter Ended Aug 31, 2024 | Quarter Ended Aug 26, 2023 | Nine Months Ended Aug 31, 2024 | Nine Months Ended Aug 26, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $75,619 | $87,217 | $245,583 | $295,434 | | **Gross profit** | $40,093 | $45,044 | $131,720 | $155,074 | | **Income (loss) from operations** | $(6,357) | $(3,804) | $(17,176) | $1,378 | | **Net income (loss)** | $(4,505) | $(2,591) | $(12,899) | $930 | | **Diluted earnings (loss) per share** | $(0.52) | $(0.30) | $(1.48) | $0.11 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of August 31, 2024, the company's total assets were $335.9 million, down from $370.4 million at November 25, 2023 Condensed Consolidated Balance Sheet Highlights (Unaudited, In thousands) | Account | August 31, 2024 | November 25, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $38,329 | $52,407 | | **Inventories** | $56,138 | $62,982 | | **Total current assets** | $137,542 | $157,954 | | **Total assets** | $335,862 | $370,424 | | **Total current liabilities** | $73,117 | $77,890 | | **Total liabilities** | $170,826 | $186,983 | | **Total stockholders' equity** | $165,036 | $183,441 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended August 31, 2024, net cash used in operating activities was $2.3 million, a significant shift from the $10.2 million provided by operations in the prior-year period Cash Flow Summary (Unaudited, In thousands) | Activity | Nine Months Ended Aug 31, 2024 | Nine Months Ended Aug 26, 2023 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $(2,323) | $10,249 | | **Net cash used in investing activities** | $(5,629) | $(15,321) | | **Net cash used in financing activities** | $(6,132) | $(8,504) | | **Change in cash and cash equivalents** | $(14,078) | $(13,613) | | **Cash and cash equivalents - end of period** | $38,329 | $48,012 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide crucial context to the financial statements, detailing accounting policies and specific events - The company is ceasing operations of its e-commerce furniture retailer, Noa Home, after concluding it was unlikely to achieve profitability. This resulted in impairment charges for long-lived assets[37](index=37&type=chunk)[47](index=47&type=chunk)[69](index=69&type=chunk) - Total non-cash asset impairment charges of **$5.5 million** were recognized in the first nine months of 2024. These charges were related to retail store assets (**$2.9M**), wholesale plant and equipment (**$0.7M**), and Noa Home's long-lived assets (**$1.9M**)[37](index=37&type=chunk) - A charge of **$1.24 million** was recognized for the remaining minimum payments under a logistical services contract that the wholesale segment ceased utilizing[37](index=37&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a challenging quarter marked by decreased sales across both wholesale and retail segments, leading to a consolidated operating loss [Overview and Strategic Initiatives](index=25&type=section&id=Overview%20and%20Strategic%20Initiatives) Bassett operates as a retailer, manufacturer, and marketer of branded home furnishings, primarily through a network of 87 BHF stores and other wholesale channels - The company operates a network of **87 BHF stores** as of August 31, 2024, using a blended strategy of Company-owned stores, licensed stores, and other wholesale channels[66](index=66&type=chunk) - A new web platform was introduced in August 2023, which has led to increased customer engagement and a higher average order value for e-commerce sales[68](index=68&type=chunk) - The company decided to cease operations of its Noa Home e-commerce business, acquired in late 2022, due to its unlikelihood of achieving profitability. This resulted in non-cash impairment charges of **$2.4 million** in Q2 2024[69](index=69&type=chunk) [Cybersecurity Incident](index=26&type=section&id=Cybersecurity%20Incident) On July 10, 2024, the company detected and contained a cybersecurity incident that caused temporary disruptions to operations, including manufacturing and order fulfillment - A cybersecurity incident on July 10, 2024, caused temporary disruptions to manufacturing and order fulfillment[72](index=72&type=chunk)[73](index=73&type=chunk) - The incident resulted in an estimated **$1.0 to $2.0 million** in lost sales. Direct costs included **$98k** in legal/remediation fees and **$609k** in wages for unproductive labor during the shutdown[74](index=74&type=chunk) [Consolidated Results of Operations](index=27&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated net sales for Q3 2024 fell 13.3% YoY to $75.6 million, while nine-month sales dropped 16.9% to $245.6 million, driven by declines in both wholesale and retail Consolidated Results Summary (In thousands) | Metric | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $75,619 | $87,217 | -13.3% | $245,583 | $295,434 | -16.9% | | **Gross profit** | $40,093 | $45,044 | -11.0% | $131,720 | $155,074 | -15.1% | | **Gross Margin** | 53.0% | 51.6% | +140 bps | 53.6% | 52.5% | +110 bps | | **SG&A expenses** | $45,210 | $48,848 | -7.4% | $142,141 | $154,709 | -8.1% | | **Income (loss) from operations** | $(6,357) | $(3,804) | -67.1% | $(17,176) | $1,378 | N/M | - The quarterly gross margin improvement was partially offset by **$609k** in unproductive labor costs from the cybersecurity incident; excluding this, the margin would have been **53.8%**[77](index=77&type=chunk) [Segment Performance](index=28&type=section&id=Segment%20Performance) Both primary segments experienced sales declines Wholesale Segment Results (Q3 2024 vs Q3 2023, In thousands) | Metric | Q3 2024 | Q3 2023 | Change (%) | | :--- | :--- | :--- | :--- | | **Net sales** | $47,828 | $56,660 | -15.6% | | **Gross profit** | $14,681 | $17,124 | -14.3% | | **Income from operations** | $4,440 | $6,340 | -30.0% | - Wholesale sales decline was driven by a **22% decrease** in shipments to the open market and a **13% decrease** to the retail store network[93](index=93&type=chunk) Retail Segment Results (Q3 2024 vs Q3 2023, In thousands) | Metric | Q3 2024 | Q3 2023 | Change (%) | | :--- | :--- | :--- | :--- | | **Net sales** | $47,256 | $52,264 | -9.6% | | **Gross profit** | $24,971 | $26,946 | -7.3% | | **Income (loss) from operations** | $(2,840) | $(3,036) | -6.5% | - Retail written sales (orders taken but not delivered) declined **4.8%** in Q3 2024 compared to Q3 2023[101](index=101&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash position decreased by $14.1 million in the first nine months of 2024, ending the period with $56.2 million in cash, cash equivalents, and short-term investments - Cash and short-term investments totaled **$56.2 million** at August 31, 2024[114](index=114&type=chunk) - For the first nine months of 2024, the company used cash for capital expenditures (**$4.7M**), dividends (**$4.9M**), and stock repurchases (**$1.1M**)[113](index=113&type=chunk) - The company's availability under its **$25 million** credit facility is limited to an additional **$2.2 million** because it would not have met certain financial covenants had they been required to be tested[31](index=31&type=chunk)[117](index=117&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies several market risks, including foreign currency fluctuations related to its Noa Home investment, changes in the cost and availability of raw materials, and commodity price risk - The company is exposed to market risk from foreign currency changes (primarily Canadian dollar), raw material costs (wood, foam), diesel fuel prices, and the commercial real estate market[124](index=124&type=chunk)[125](index=125&type=chunk) - Significant real estate exposure includes **$24.3 million** in owned retail properties and **$90.1 million** in right-of-use assets for leased locations, which are subject to impairment risk[126](index=126&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation by the principal executive and financial officers as of the end of the reporting period, the company concluded that its disclosure controls and procedures are effective - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[127](index=127&type=chunk) [PART II - OTHER INFORMATION](index=39&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no material legal proceedings during the period - There are no material legal proceedings to report[127](index=127&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) The company updated its risk factors to reflect material developments, specifically highlighting the risks associated with its extensive reliance on computer systems - Risk factors were updated to emphasize the company's reliance on computer systems and the potential for adverse effects from disruptions, such as the cybersecurity incident that occurred in July 2024[128](index=128&type=chunk)[129](index=129&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) During the three months ended August 31, 2024, the company repurchased a total of 46,843 shares of its common stock for approximately $633,000 at an average price of $13.51 per share Stock Repurchase Activity (Q3 2024) | Period | Total Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | June 2 - July 6, 2024 | 21,472 | $13.97 | | July 7 - Aug 3, 2024 | 4,528 | $13.59 | | Aug 4 - Aug 31, 2024 | 20,843 | $13.24 | | **Total** | **46,843** | **$13.51** | - As of August 31, 2024, **$20.7 million** remained available for share repurchases under the company's plan[130](index=130&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, credit agreements, officer certifications, and interactive data files

Bassett Furniture (BSET) came out with a quarterly loss of $0.52 per share versus the Zacks Consensus Estimate of a loss of $0.34. This compares to loss of $0.30 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -52.94%. A quarter ago, it was expected that this furniture seller would post a loss of $0.12 per share when it actually produced a loss of $0.19, delivering a surprise of -58.33%. Over the last four quarters, the compa ...

BASSETT, Va., Oct. 09, 2024 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its third quarter ended August 31, 2024. In addition, the Company's Board of Directors declared a regular quarterly dividend of $0.20 per share of common stock, payable on Nov. 29, 2024, to shareholders of record at the close of business on Nov. 15, 2024. This dividend represents an 11% increase over the prior year's quarterly dividend. Q3 Consolidated Business Highl ...

Bassett Furniture Industries, Incorporated (BSET) is set to report its third-quarter fiscal 2024 results on Oct. 9, after market close. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. In the last reported quarter, the company's earnings and net sales missed the Zacks Consensus Estimate by 58.3% and 3.3%, respectively. BSET's earnings surpassed the consensus mark in two of the trailing four quarters and missed on the other two occasions, the average negative surprise being 289.8%. B ...

BASSETT, Va., Sept. 25, 2024 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq: BSET) announced today it will host a conference call with management on Thursday, October 10, 2024, at 9:00 a.m. ET to discuss its third quarter 2024 financial results. The Company will issue its earnings release after the market closes on Wednesday, October 9, 2024. Chairman and Chief Executive Officer Rob Spilman will host the call, along with Chief Financial Officer Mike Daniel. The public is invited to listen to ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Bassett Furniture (BSET) reports results for the quarter ended August 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the s ...

Bassett Furniture Industries, Incorporated (NASDAQ:BSET) Q2 2024 Earnings Conference Call July 11, 2024 9:00 AM ET Company Participants Mike Daniel - Chief Financial Officer Rob Spilman, Jr. - Chairman & Chief Executive Officer Conference Call Participants Anthony Lebiedzinski - Sidoti Budd Bugatch - Water Tower Research Operator Hello, and thank you for standing by, and welcome to Bassett Furniture Industries Q2 2024 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker ...