Bassett Furniture Industries Inc. (BSET) has announced a widened net loss for the third quarter ending on August 31, 2024. The loss amounted to $4.51 million, equating to $0.52 per share, compared to a loss of $2.59 million or $0.30 per share during the same period last year. This exceeds the expectations of analysts surveyed by Thomson Reuters, who anticipated a loss of $0.38 per share for the quarter. It's important to note that analysts' forecasts usually do not factor in special items.
Commenting on these results, Robert Spilman, Jr., Chairman and CEO of Bassett, explained, "The third quarter has traditionally been our slowest, in large part due to our customary manufacturing shutdown during the week of July 4th."
The quarter's revenue from furniture and accessories dropped to $75.62 million from last year's figure of $87.22 million. This downturn was largely due to a cyber incident that took down all financial systems and halted manufacturing for seven days. Analysts had projected revenues of $80.0 million for this period.
Additionally, Bassett declared a regular quarterly dividend of $0.20 per share of common stock, with payment scheduled for November 29, 2024, to shareholders documented by the close of business on November 15, 2024. This dividend marks an 11% increase over the previous year's quarterly dividend.
In terms of operational strategy, Bassett has made headway with its restructuring plan announced in July, aimed at reducing costs and enhancing operational efficiency for future revenue growth. The comprehensive five-point plan is slated for completion by the end of the fourth quarter and is on track to improve annual bottom-line results by an estimated $5.5 million to $6.5 million. Bassett is committed to regaining profitability.