Bassett(US:BSET)2019-04-04 15:12Financial Performance - Net income for the three months ended March 2, 2019, was $608 million, compared to a loss of $913 million for the same period in 2018[11]. - Total comprehensive income for the quarter was $665 million, a significant improvement from a loss of $833 million in the prior year[11]. - Basic earnings per share for the quarter ended March 2, 2019, were $0.06, compared to a loss per share of $(0.09) for the same quarter in 2018[76]. - Income from operations for the consolidated entity was $949 million for the quarter ended March 2, 2019, down from $2,050 million in the same quarter of 2018[84]. - Consolidated sales revenue reached $120,841 million for the quarter ended March 2, 2019, an increase of 9.5% from $110,272 million in the previous year[84]. Revenue Segments - Retail segment revenue for Company-owned stores was $69,629 million for the quarter ended March 2, 2019, compared to $64,661 million for the same period in 2018, representing an increase of 7.2%[84]. - Wholesale segment revenue increased to $72,781 million for the quarter ended March 2, 2019, up from $63,100 million in the prior year, marking a growth of 15.8%[84]. - Logistical services revenue was $21,751 million for the quarter ended March 2, 2019, compared to $21,422 million for the same period in 2018, reflecting a growth of 1.5%[84]. Acquisitions - The company acquired Lane Venture for a total purchase price of $15,556 million, with identifiable assets acquired valued at $12,622 million and goodwill of $4,143 million[33]. - The total cash purchase price for the Lane Venture acquisition was $15,556 million, with identifiable assets acquired valued at $12,622 million and liabilities assumed totaling $1,209 million, resulting in net identifiable assets acquired of $11,413 million and goodwill of $4,143 million[33]. - Acquisition costs related to the Lane Venture acquisition totaled $228 million during the three months ended February 24, 2018[36]. Investments and Assets - Short-term investments amounted to $22,643 million as of March 2, 2019, with a weighted average yield of approximately 2.44%[40]. - Total inventories as of March 2, 2019, amounted to $77,263, an increase from $74,284 on November 24, 2018, with a LIFO adjustment of $(8,368) and a reserve for excess and obsolete inventory of $(2,217)[47]. - The identifiable assets as of March 2, 2019, totaled $282,035, a decrease from $291,641 as of November 24, 2018[84]. Liabilities and Obligations - The company had outstanding principal on real estate notes payable of $183 as of March 2, 2019, down from $292 on November 24, 2018, with a fixed interest rate of 6.73%[57]. - The liability for the unfunded Supplemental Retirement Income Plan was $10,364 as of March 2, 2019, down from $10,574 on November 24, 2018[61]. - Future minimum lease payments under non-cancellable operating leases total $184,109 as of March 2, 2019, with significant payments due in fiscal years 2019 to 2024[72]. Operational Costs and Expenditures - Capital expenditures for the retail segment were $4,017 million for the quarter ended March 2, 2019, compared to $2,617 million in the prior year, indicating a significant increase of 53.5%[84]. - The logistics segment's total operating costs were $21,039 million for the three months ended March 2, 2019, slightly down from $21,092 million in the same period of 2018[79]. Taxation - The effective tax rate for the three months ended March 2, 2019, was impacted by state income taxes and various permanent differences, differing from the federal statutory rate of 21%[29]. - The effective tax rate for the three months ended February 24, 2018, was 164.2%, primarily due to a $2,157 charge to re-measure deferred tax assets[30]. Store Operations and Strategy - Bassett operates 102 BHF stores as of March 2, 2019, leveraging its brand name in furniture to enhance market presence[104]. - Bassett plans to open three new stores in Sarasota, FL (8,000 sq. ft.), Princeton, NJ (13,000 sq. ft.), and Thornton, CO (23,000 sq. ft.) between Q2 2019 and Q1 2020[111]. - The company utilizes a network of over 30 independent sales representatives to enhance product distribution across the United States[104]. - Bassett's retail strategy includes custom order furniture and free in-home design visits, emphasizing strong customer relationships[105]. Customer Metrics - Customer deposits amounted to $24,416 million as of March 2, 2019, down from $27,157 million as of November 24, 2018, indicating a decrease of 10.1%[88]. - Written sales for comparable stores decreased by 4.8% in Q1 2019 compared to the same period in 2018, with a weekly decrease of 11.6%[133].