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Previous: BAKER MICHAEL CORP, SC 13G/A, 1995-04-04 |
Next: BROWN & SHARPE MANUFACTURING CO /DE/, 8-K, 1995-04-04 |
<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED FEBRUARY 28, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to _________________
Commission File No. 0-209
BASSETT FURNITURE INDUSTRIES, INCORPORATED
(Exact name of Registrant as specified in its charter)
Virginia 54-0135270
- ------------------------------------- --------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
Bassett, Virginia 24055
------------------------------
(Address of principal executive offices)
(Zip Code)
(703) 629-6000
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days. Yes X No .
----------- ----------
At February 28, 1995, 14,086,815 shares of common stock of the Registrant
were outstanding.
Page 1 of 8
<PAGE> 2
PART I - FINANCIAL INFORMATION
BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS - UNAUDITED
<TABLE>
<CAPTION>
THREE MONTHS ENDED FEBRUARY 28,
-------------------------------
1995 1994
---- ----
<S> <C> <C>
Net sales $123,550,551 $121,664,291
Costs and expenses
Cost of sales 102,928,562 101,827,454
Selling, general and administrative 16,016,344 15,470,419
-------------- --------------
118,944,906 117,297,873
-------------- --------------
Income from operations 4,605,645 4,366,418
Other income, net 2,313,201 2,326,995
-------------- --------------
Income before income taxes and cumulative
effect of a change in accounting principle 6,918,846 6,693,413
Income taxes 2,022,500 1,963,000
-------------- --------------
Income before cumulative effect of
a change in accounting principle 4,896,346 4,730,413
Cumulative effect of a change in accounting principle -0- (510,200)
-------------- --------------
NET INCOME 4,896,346 4,220,213
Retained earnings - beginning of period 221,949,817 216,211,676
-------------- --------------
226,846,163 220,431,889
Cash dividends (2,817,363) (2,889,640)
-------------- --------------
Retained earnings - end of period $224,028,800 $217,542,249
============== ==============
EARNINGS PER SHARE:
Income before cumulative effect
of a change in accounting principle $ .35 $ .33
Cumulative effect of a change
in accounting principle -0- (.04)
----- -----
NET INCOME PER SHARE $ .35 $ .29
===== =====
DIVIDENDS PER SHARE $ .20 $ .20
===== =====
</TABLE>
- ------------------------------------------
The accompanying notes are an integral part of the condensed financial
statements.
Page 2 of 8
<PAGE> 3
PART I - FINANCIAL INFORMATION - CONTINUED
BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET - UNAUDITED
<TABLE>
<CAPTION>
ASSETS FEBRUARY 28, 1995 NOVEMBER 30, 1994
- ------ ----------------- -----------------
<S> <C> <C>
Current Assets
Cash and cash equivalents $ 40,686,641 $ 42,314,957
Trade accounts receivable, less allowances
for doubtful accounts and discounts 70,640,492 71,936,750
Inventories:
Finished goods 45,777,938 45,243,596
Work in process 15,428,111 15,588,696
Raw materials and supplies 45,884,911 44,588,519
------------ ------------
107,090,960 105,420,811
Less LIFO adjustment 25,711,000 25,346,000
------------ ------------
81,379,960 80,074,811
Prepaid expenses 1,176,603 2,206,736
Prepaid income taxes -0- 274,675
Deferred income taxes 1,848,000 1,823,000
------------ ------------
195,731,696 198,630,929
Property, Plant and Equipment
Cost 210,266,134 207,227,241
Less allowances for depreciation 155,070,620 152,673,335
------------ ------------
55,195,514 54,553,906
Other Assets
Investment in securities 48,311,595 43,638,983
Investment in affiliated companies 35,829,484 35,080,525
Other 8,082,555 8,593,887
------------ ------------
92,223,634 87,313,395
------------ ------------
$343,150,844 $340,498,230
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current Liabilities
Accounts payable $ 26,694,413 $ 29,786,395
Accrued compensation 4,645,688 5,215,159
Income taxes 1,781,513 -0-
------------ ------------
33,121,614 35,001,554
Deferrals
Deferred liabilities 9,683,855 9,529,784
Deferred income taxes 1,632,500 774,000
------------ ------------
11,316,355 10,303,784
Stockholders' Equity
Common stock 70,434,075 70,434,075
Retained earnings 224,028,800 221,949,817
Unrealized holding gains, net of tax 4,250,000 2,809,000
------------ ------------
298,712,875 295,192,892
------------ ------------
$343,150,844 $340,498,230
============ ============
</TABLE>
- -----------------------------------------------
The accompanying notes are an integral part of the condensed financial
statements.
Page 3 of 8
<PAGE> 4
PART I - FINANCIAL INFORMATION - CONTINUED
BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - UNAUDITED
<TABLE>
<CAPTION>
THREE MONTHS ENDED FEBRUARY 28,
-------------------------------
1995 1994
---- ----
<S> <C> <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES $5,874,788 $5,209,879
INVESTING ACTIVITIES
Changes (net) in investment securities (2,378,258) (1,718,687)
Purchases of property, plant and equipment (3,038,893) (2,451,953)
Proceeds from sale of property, plant and equipment 40,000 6,500
Dividend from affiliated company 272,376 272,376
Other 419,034 277,856
----------- -----------
(4,685,741) (3,613,908)
FINANCING ACTIVITIES
Cash dividends (2,817,363) (2,889,640)
----------- -----------
CHANGE IN CASH AND CASH EQUIVALENTS (1,628,316) (1,293,669)
CASH AND CASH EQUIVALENTS - beginning of period 42,314,957 52,957,556
----------- -----------
CASH AND CASH EQUIVALENTS - end of period $40,686,641 $51,663,887
=========== ===========
</TABLE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
A. Per share amounts are based on 14,086,815 and 14,448,201 weighted
average number of shares outstanding at February 28, 1995 and 1994,
respectively.
B. Effective December 1, 1993, the Company adopted the provisions of FASB
Statement No. 109 and reported the cumulative effect of the change in
the method of accounting for income taxes in the financial statements
for 1994 in the amount of $510,200. The principal cause of this
adjustment was due to the basis difference of an acquisition made in
prior years which was accounted for as a purchase transaction.
C. Effective December 1, 1993, the Company adopted the provisions of FASB
Statement No. 115 "Accounting for Certain Investments in Debt and
Equity Securities" and initially reported the effects thereof in the
1994 financial statements. Under Statement No. 115 the Company
classifies its investment in securities as available-for-sale, which
is reported at fair value. Unrealized holding gains and losses (net
of tax effect) are reported as a separate component of stockholders'
equity. The fair value and cost of the investment in securities was
$48.3 million and $41.5 million at February 28, 1995, respectively.
Page 4 of 8
<PAGE> 5
PART I - FINANCIAL INFORMATION - CONTINUED
BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES
BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q and do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESULTS OF OPERATIONS:
Major components of net income expressed as a percentage of net sales are
reflected below:
<TABLE>
<CAPTION>
Three Months Ended February 28
------------------------------
1995 1994
---- ----
<S> <C> <C>
Cost of sales 83.31% 83.70%
SG&A expenses 12.96 12.71
Income from operations 3.73 3.59
Other income, net 1.87 1.91
Income before income taxes 5.60 5.50
Income taxes 1.64 1.61
Accounting change -0- .42
Net income 3.96 3.47
</TABLE>
NET SALES
Net sales increased less than 2% in the first quarter from 1994 to 1995. There
were no significant changes in any Division between the two periods.
COSTS AND EXPENSES
Cost of sales as a percentage of net sales improved from 83.70% in 1994 to
83.31% in 1995. There were no significant changes in any Division between the
two periods.
Selling, general and administrative expenses as a percentage of net sales
increased to 12.96% in 1995 from 12.71% in 1994. There were no significant
changes in any Division between the two periods.
OTHER INCOME, NET
Major sources of other income are reflected below (in thousands):
<TABLE>
<CAPTION>
Three Months Ended February 28
------------------------------
1995 1994
---- ----
<S> <C> <C>
Equity in unremitted income of affiliated cos. $1,021 $953
Interest (tax exempt) 550 417
Dividends 543 543
Other 199 414
------ ------
$2,313 $2,327
====== ======
</TABLE>
INCOME TAXES
The effective income tax rate remained approximately the same in the two
periods: 29.23% in 1995 and 29.33% in 1994.
LIQUIDITY AND CAPITAL RESOURCES:
The current ratio was 5.9 to 1 at February 28, 1995, 5.7 to 1 at November 30,
1994 and 5.8 to 1 at February 28, 1994. Working capital has remained
relatively unchanged in the past year: $168 million (February 28, 1994); $169
million (May 31, 1994); $163 million (August 31, 1994); $164 million (November
30, 1994); and $163 million (February 28, 1995). Cash provided by operations
increased to $5.9 million in the 1995 first quarter from $5.2 million in 1994.
Cash provided by operating activities is expected to be adequate for normal
future cash requirements. There were no significant commitments for capital
expenditures at February 28, 1995. Capital expenditures that will be made in
the future for normal requirements are anticipated to be made from funds
generated by operating activities.
Page 5 of 8
<PAGE> 6
PART II - OTHER INFORMATION
BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
(27) Financial Data Schedule
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BASSETT FURNITURE INDUSTRIES, INCORPORATED
/s/ ROBERT H. SPILMAN
- ----------------------------------------------------
Robert H. Spilman, Chairman of the Board and Chief Executive Officer
Date: 4-4-95
--------------------------------------
/s/ PHILIP E. BOOKER
- -----------------------------------------------------
Philip E. Booker, Vice President, Controller (Chief Accounting Officer)
Date: 4-4-95
--------------------------------------
Page 6 of 8
<PAGE> 7
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT
For the quarter ended Commission File Number
February 28, 1995 0-209
BASSETT FURNITURE INDUSTRIES, INCORPORATED
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Exhibit Description Page No.
----------- ------------------- --------
<S> <C> <C>
27 Financial Data Schedule page - 8
</TABLE>
Page 7 of 8
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Art 5 FDS 1st Qtr 10Q
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-START> DEC-01-1994
<PERIOD-END> FEB-28-1995
<CASH> 40,687
<SECURITIES> 48,312
<RECEIVABLES> 70,640
<ALLOWANCES> 0
<INVENTORY> 81,380
<CURRENT-ASSETS> 195,732
<PP&E> 210,266
<DEPRECIATION> 155,071
<TOTAL-ASSETS> 343,151
<CURRENT-LIABILITIES> 33,122
<BONDS> 0
<COMMON> 70,434
0
0
<OTHER-SE> 228,279
<TOTAL-LIABILITY-AND-EQUITY> 343,151
<SALES> 123,551
<TOTAL-REVENUES> 125,864
<CGS> 102,929
<TOTAL-COSTS> 118,945
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 159
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 6,919
<INCOME-TAX> 2,023
<INCOME-CONTINUING> 4,896
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,896
<EPS-PRIMARY> .35
<EPS-DILUTED> 0
</TABLE>
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