With the upswing in the housing market slowly but surely gaining momentum, many other sectors of the market will, without doubt, ride the housing train. One of them is the Consumer Durable goods sector as people rush to outfit and furnish new homes. More than a few companies are worth a look right now and Bassett Furniture Industries Incorporated (NASDAQ: BSET) is one of them. For you dividend junkies, the company has announced that it will begin trading ex-dividend on February 13, 2013. A cash dividend payout of $0.05 per share will be paid to investors who purchase stock in the company prior to February 13, 2013. The dividend is scheduled to be paid on March 1, 2013.
BSET had a solid year in 2012 and fourth quarter numbers were exceedingly strong. The stock has grown by 71.03 percent over the last year powered by a phenomenal earnings growth of 2483.33 percent, far outperforming the S&P 500 index for 2012. Fourth quarter net income was $16.9 million or $1.55 per share. This was up from $633 thousand or $0.06 per share the company posted in the same quarter of 2011. Operating income for the quarter rose to $2.5 million from $1.1 million same quarter 2011. This number was driven by higher sales in both the wholesale and retail portions of the company’s business. It’s not surprising that revenues for the quarter increased 21 percent to $76.81 million as opposed to $63.27 million reported the previous year same quarter. BSET has a market cap of $152.25 million and shares are trading at $14.04 as of today’s market, very close to the 52 week high of $14.35. Oh, and as if you needed more incentive to take a good look at this play, the company has an extremely low debt-to equity ratio of 0.02, which is below the industry average and to me implies that it has done very well at managing debt levels.
Bassett Furniture Industries, Inc. is a manufacturer and distributor of high quality, reasonably priced home furnishings. The company has over 130 Bassett Furniture Direct stores and has leveraged its name in home furnishings with a strategic network of licensed and company owned stores. Even with the growth the company had in 2012, analysts are predicting more growth in 2013. This one does bear watching over the next 90 days. The company will release new earnings in April of 2013. Should be a good read!