Bassett Reports Fiscal Third Quarter Results, Updates Progress on Restructuring Plan and Announces Regular Quarterly Dividend

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[{"type":"text","content":"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 Highlights: [FY 24 vs. FY 23, unless otherwise specified] Revenues decreased 13%, impacted by a cyber incident that suspended all financial systems and manufacturing for 7 days.Operating loss of $6.4 million, which included a $1.2 million loss on a logistical services contract the Company abandoned and various costs associated with the cyber incident.Gross margin of 53.0%, which included $0.6 million of manufacturing wages paid during the cyber shutdown. Excluding the wage charge, gross profit margin would have been 53.8% as compared to adjusted gross margin of 52.7% in 2023 (see Table 5).Diluted loss per share of $0.52 vs. a loss of $0.30 in 2023.Limited cash flow deficit for the quarter to $0.4 million despite challenging results and cyber disruption related costs. Fiscal 2024 Third Quarter Overview (Dollars in millions) Sales Operating Income (Loss) 3rd Qtr Dollar% 3rd Qtr% of 3rd Qtr% of 2024 2023 ChangeChange 2024 Sales 2023 SalesConsolidated (1)$75.6$87.2 $(11.6)-13.3% $(6.4)-8.5% $(3.8)-4.4% Wholesale$47.8$56.7 $(8.9)-15.7% $4.4 9.2% $6.3 11.1% Retail$47.3$52.3 $(5.0)-9.6% $(2.8)-5.9% $(3.0)-5.7% Corporate & Other (2)$1.0$1.8 $(0.8)-44.4% $(7.0)N/A $(7.4)N/A (1) Our consolidated results for the quarter include certain intercompany eliminations as well as a $1.2 million contract abandonment charge which are not allocated to our segment operating results. See Table 4, \"Segment Information\" below for an illustration of the effects of these items on our consolidated sales and operating income. (2) Corporate and Other includes the operations of Noa Home Inc. along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments. “The third quarter is historically our slowest as we customarily shut down manufacturing for the week of July 4th,” said Robert H. Spilman, Jr., Bassett Chairman and Chief Exec...

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