Thu, Oct 10, 12:59 PM (84 days ago)
BASSETT FURNITURE INDUSTRIES, INC. (BSET) reported a challenging third quarter ending August 31, 2024, with net sales of $75,619, down 13.3% year-over-year. The decline was driven by a 16% drop in wholesale sales and a 10% decrease in retail revenue. Gross profit fell to $40,093, reflecting a gross margin improvement to 53% despite unproductive labor costs from a cybersecurity incident that disrupted operations. Selling, general, and administrative (SG&A) expenses decreased by 7.4%, but as a percentage of sales, they increased due to lower revenue. The company incurred a net loss of $4,505 for the quarter, compared to a loss of $2,591 in the prior year. Cash flow from operations was negative at $2,323, a significant drop from last year's positive cash flow, attributed to working capital changes. Total assets decreased to $335,862, with cash and equivalents at $38,329. The company continues to face uncertainties, including the wind-down of Noa Home operations, which is expected to impact future performance. Despite these challenges, Bassett maintains liquidity with $56,163 in cash and short-term investments, supported by a $25,000 credit facility, of which $6,013 is currently drawn.