Bassett Furniture (BSET)
What Does the Sale of Zenith Portend? Reports 4Q21 Results
Bassett Furniture Industries, Inc. is a leading manufacturer and marketer of high-quality home furnishings. With 96 company- and licensee-owned stores located throughout the United States, Bassett has leveraged its strong brand name in furniture into a network of corporate and licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories. Bassett’s retail strategy includes stylish, custom-built furniture that features the latest on-trend furniture styles, free in-home design visits, and coordinated decorating accessories. The Company also has a traditional wholesale business with more than 700 accounts on the open market and a logistics business specializing in the transport and warehousing of home furnishings. In addition, Bassett sells its products through its website at www.bassettfurniture.com. With revenues in excess of $450 million, approximately 75% of its goods are manufactured, assembled and/or finished in factories located in Virginia, North Carolina and Alabama with the remainder primarily sourced from Asia. The Company was founded in 1902 and is based in Bassett, Virginia.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
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4Q21 Results. Revenue was $129.9 million, up 9.7% y-o-y and up 14.3% compared to the non-COVID impacted 4Q19. Backlog fell modestly sequentially to $90.1 million. Bassett reported net income of $5.0 million, or $0.52 per share, compared to net income of $6.5 million, or $0.65 per share, in the prior year. We had forecast revenue of $122 million and EPS of $0.54.
Zenith Sale. Bassett announced a proposed sale of its logistics arm, Zenith Freight Lines to J.B. Hunt for $87 million, or an estimated $65 million after taxes. Bassett will work closely with J.B. Hunt to build out a nationwide network of regional fulfillment centers with a goal of delivering goods faster and at reduced cost …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.