Bassett Furniture (BSET)
Returning Capital to Shareholders
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.
Refer to the full report for the price target, fundamental analysis, and rating.
Returning Capital. On Friday, Bassett announced the first steps of its capital allocation strategy for the estimated $65 million of net proceeds from the sale of its Zenith Logistics business to J.B. Hunt. In addition to the declaration of the normal quarterly dividend of $0.14 per share, Bassett’s Board approved a special dividend of $1.50 per share and increased the Company’s share repurchase authorization to $40 million. The $1.50 special dividend will consume approximately $15 million of cash, leaving $50 million for share repurchases and other capital allocation strategies.
Special Dividend. Bassett has a history of paying special dividends, including at least one annually from 2011-2017 and again in 2020. The $1.50 per share amount represented 8.6% of the closing share price as of Thursday …
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.