Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Aug. 29, 2015 | Sep. 18, 2015 | |
Entity Registrant Name | BASSETT FURNITURE INDUSTRIES INC | |
Entity Central Index Key | 10,329 | |
Trading Symbol | bset | |
Current Fiscal Year End Date | --11-28 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 10,933,933 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 29, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Retained Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 29, 2015 | Aug. 30, 2014 | Aug. 29, 2015 | Aug. 30, 2014 | |
Sales revenue: | ||||
Furniture and accessories | $ 97,107 | $ 85,186 | $ 286,122 | $ 246,018 |
Logistics | 13,904 | 29,250 | ||
Total sales revenue | 111,011 | $ 85,186 | 315,372 | $ 246,018 |
Cost of furniture and accessories sold | 44,824 | 40,168 | 133,676 | 115,434 |
Selling, general and administrative expenses excluding new store pre-opening costs | 58,303 | 41,510 | 163,203 | 120,991 |
New store pre-opening costs | $ 192 | $ 109 | 236 | $ 1,217 |
Lease exit costs | 419 | |||
Asset impairment charges | 106 | |||
Restructuring Charges | 449 | |||
Income from operations | $ 7,692 | $ 3,399 | 17,283 | $ 8,376 |
Remeasurement gain on acquisition of affiliate | 7,212 | |||
Income from Continued Dumping & Subsidy Offset Act | 1,066 | |||
Other loss, net | $ (472) | $ (65) | (1,692) | $ (52) |
Income before income taxes | 7,220 | 3,334 | 23,869 | 8,324 |
Income tax expense | 2,954 | 1,078 | 9,118 | 2,674 |
Net income | 4,266 | 2,256 | 14,751 | 5,650 |
Retained earnings-beginning of period | $ 115,149 | 105,297 | $ 106,339 | 104,526 |
Purchase and retirement of common stock | (859) | (2,174) | ||
Cash dividends | $ (1,029) | (836) | $ (2,704) | (2,144) |
Retained earnings-end of period | $ 118,386 | $ 105,858 | $ 118,386 | $ 105,858 |
Basic earnings per share (in dollars per share) | $ 0.39 | $ 0.22 | $ 1.38 | $ 0.54 |
Diluted earnings per share (in dollars per share) | 0.39 | 0.21 | 1.36 | 0.53 |
Dividends per share (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.25 | $ 0.20 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 29, 2015 | Aug. 30, 2014 | Aug. 29, 2015 | Aug. 30, 2014 | |
Net income | $ 4,266 | $ 2,256 | $ 14,751 | $ 5,650 |
Other comprehensive income: | ||||
Amortization associated with supplemental executive retirement defined benefit plan (SERP) | 60 | 41 | 177 | 124 |
Income taxes related to SERP | (23) | (16) | (67) | (48) |
Other comprehensive income, net of tax | 37 | 25 | 110 | 76 |
Total comprehensive income | $ 4,303 | $ 2,281 | $ 14,861 | $ 5,726 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Aug. 29, 2015 | Nov. 29, 2014 |
Current assets | ||
Cash and cash equivalents | $ 20,600 | $ 26,673 |
Short-term investments | 23,125 | 23,125 |
Accounts receivable, net | 19,545 | 15,228 |
Inventories | 65,437 | 57,272 |
Deferred income taxes | 5,378 | 5,268 |
Other current assets | 8,313 | 7,796 |
Total current assets | 142,398 | 135,362 |
Property and equipment, net | 96,579 | 74,812 |
Deferred income taxes | 5,813 | 9,701 |
Goodwill and other intangible assets | 17,762 | 1,730 |
Other | 8,065 | 19,141 |
Total long-term assets | 31,640 | 30,572 |
Total assets | 270,617 | 240,746 |
Current liabilities | ||
Accounts payable | 21,609 | 22,251 |
Accrued compensation and benefits | 12,014 | 8,931 |
Customer deposits | $ 19,006 | 22,202 |
Dividends payable | 2,102 | |
Current portion of long-term debt | $ 4,476 | 316 |
Other accrued liabilities | 11,734 | 10,971 |
Total current liabilities | 68,839 | 66,773 |
Long-term liabilities | ||
Post employment benefit obligations | 11,353 | 11,498 |
Notes payable | 10,360 | 1,902 |
Other long-term liabilities | 3,986 | 3,741 |
Total long-term liabilities | 25,699 | 17,141 |
Stockholders’ equity | ||
Common stock | 54,681 | 52,467 |
Retained earnings | 118,386 | $ 106,339 |
Additional paid-in capital | 4,876 | |
Accumulated other comprehensive loss | (1,864) | $ (1,974) |
Total stockholders' equity | 176,079 | 156,832 |
Total liabilities and stockholders’ equity | $ 270,617 | $ 240,746 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 29, 2015 | Aug. 30, 2014 | |
Operating activities: | ||
Net income | $ 14,751 | $ 5,650 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 7,302 | 5,428 |
Equity in undistributed income of investments and unconsolidated affiliated companies | (220) | $ (534) |
Non-cash asset impairment charges | 106 | |
Non-cash portion of lease exit costs | 419 | |
Remeasurement gain on acquisition of affiliate | (7,212) | |
Tenant improvement allowance received from lessors | 933 | $ 2,119 |
Deferred income taxes | $ 3,778 | 882 |
Collateral deposited with insurance carrier | (1,150) | |
Other, net | $ 1,445 | (165) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (751) | 19 |
Inventories | (8,165) | (1,151) |
Other current assets | (21) | 732 |
Customer deposits | (3,196) | 3,870 |
Accounts payable and accrued liabilities | 2,158 | 2,570 |
Net cash provided by operating activities | 11,327 | 18,270 |
Investing activities: | ||
Purchases of property and equipment | (11,283) | (15,210) |
Proceeds from sales of property and equipment | 2,952 | $ 5,157 |
Cash paid for business acquisition, net of cash acquired | (7,323) | |
Capital contribution to affiliate | $ (1,345) | |
Proceeds from maturity of short-term investments | $ 5,000 | |
Proceeds from sale of interest in affiliate | 2,348 | |
Other | 246 | |
Net cash used in investing activities | $ (16,999) | (2,459) |
Financing activities: | ||
Cash dividends | (4,806) | (4,316) |
Proceeds from the exercise of stock options | 4,018 | 33 |
Other issuance of common stock | 254 | 242 |
Repurchases of common stock | (1,374) | (4,621) |
Taxes paid related to net share settlement of equity awards | (178) | (489) |
Excess tax benefits from stock-based compensation | 2,008 | 257 |
Repayments of notes payable | (1,630) | $ (208) |
Proceeds from equipment loans | 1,307 | |
Net cash used in financing activities | (401) | $ (9,102) |
Change in cash and cash equivalents | (6,073) | 6,709 |
Cash and cash equivalents - beginning of period | 26,673 | 12,733 |
Cash and cash equivalents - end of period | $ 20,600 | $ 19,442 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. References to “ASC” included hereinafter refer to the Accounting Standards Codification established by the Financial Accounting Standards Board as the source of authoritative GAAP. The condensed consolidated financial statements include the accounts of Bassett Furniture Industries, Incorporated (“Bassett”, “we”, “our”, or the “Company”) and our wholly-owned subsidiaries of which we have a controlling interest. The equity method of accounting was used for our investment in an affiliated company in which we exercised significant influence but did not maintain a controlling interest prior to the Zenith acquisition mentioned following. In accordance with ASC Topic 810, we have evaluated our licensees and certain other entities to determine whether they are variable interest entities (“VIEs”) of which we are the primary beneficiary and thus would require consolidation in our financial statements. To date we have concluded that none of our licensees nor any other of our counterparties represent VIEs. Revenue from the sale of furniture and accessories is reported in the accompanying condensed consolidated statements of income net of estimates for returns and allowances. For comparative purposes, certain amounts from 2014 have been reclassified to conform to the 2015 presentation. Zenith Acquisition Prior to February 2, 2015 we held a 49% interest in Zenith Freight Lines, LLC (“Zenith”) for which we used the equity method of accounting. On February 2, 2015 we acquired the remaining 51% ownership interest (see Note 3, Business Combinations). Accordingly, the results of Zenith have been consolidated with our results since the date of the acquisition. Sales of logistical services from Zenith to our wholesale and retail segments have been eliminated, and Zenith’s operating costs and expenses since the date of acquisition are included in selling, general and administrative expenses in our condensed consolidated statements of net income. Our equity in the earnings of Zenith prior to the date of the acquisition is included in other loss, net, in the accompanying condensed consolidated statements of income. |
Note 2 - Interim Financial Pres
Note 2 - Interim Financial Presentation | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Condensed Financial Statements [Text Block] | 2. Interim Financial Presentation All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. The results of operations for the three and nine months ended August 29, 2015 are not necessarily indicative of results for the full fiscal year. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended November 29, 2014. We calculate an anticipated effective tax rate for the year based on our annual estimates of pretax income and use that effective tax rate to record our year-to-date income tax provision. Any change in annual projections of pretax income could have a significant impact on our effective tax rate for the respective quarter. Our effective tax rates for the three and nine months ended August 29, 2015 and August 30, 2014 differ from the federal statutory rate primarily due to the effects of state income taxes and various permanent differences. |
Note 3 - Business Combination -
Note 3 - Business Combination - Acquisition of Zenith | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. Business Combination – Acquisition of Zenith Prior to February 2, 2015 we held a 49% interest in Zenith for which we used the equity method of accounting. Zenith provides domestic transportation and warehousing services primarily to furniture manufacturers and distributors and also provides home delivery services to furniture retailers. We historically have contracted with Zenith to provide substantially all of our domestic freight, transportation and warehousing needs for the wholesale business. In addition, Zenith provides home delivery services for many of our Company-owned retail stores. On February 2, 2015, we acquired the remaining 51% of Zenith in exchange for cash, Bassett common stock and a note payable with a total fair value of $19,111. The value of the Bassett common stock was based on the closing market price of our shares on the acquisition date, discounted for lack of marketability due to restrictions on the seller’s ability to transfer the shares. The restrictions on one half of the shares expire on the first anniversary of the acquisition, with the remainder expiring on the second anniversary. The note is payable in three annual installments of $3,000 each beginning February 2, 2016, and has been discounted to its fair value as of the date of the acquisition based on our estimated borrowing rate. The carrying value of our 49% interest in Zenith prior to the acquisition was $9,480 (see Note 7, unconsolidated affiliated company). In connection with the acquisition, this investment was remeasured to a fair value of $16,692 resulting in the recognition of a gain of $7,212 during the nine months ended August 29, 2015. The impact of this gain upon our basic and diluted earnings per share for the nine months ended August 29, 2015 is approximately $0.42 and $0.41, respectively, net of the related tax expense. The remeasured fair value of our prior interest in Zenith was estimated based on the fair value of the consideration transferred to acquire the remaining 51% of Zenith less an estimated control premium. Under the acquisition method of accounting, the fair value of the consideration transferred along with the fair value of our previous 49% interest in Zenith was allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values as of the acquisition date with the remaining unallocated amount recorded as goodwill. The total fair value of the acquired business was determined as follows: Fair value of consideration transferred in exchange for 51% of Zenith: Cash $ 9,000 Bassett common stock, 89,485 shares, par value $5.00 per share, fair value at closing $18.72 per share 1,675 Note payable 8,436 Total fair value of consideration transferred to seller 19,111 Less effective settlement of previous amounts payable to Zenith at acquisition (3,622 ) Total fair value of consideration net of effective settlement 15,489 Fair value of Bassett's previous 49% interest in Zenith 16,692 Total fair value of acquired business $ 32,181 The preliminary allocation of the fair value of the acquired business was based upon a preliminary valuation. Our estimates and assumptions are subject to change as we obtain additional information for our estimates during the measurement period (up to one year from the acquisition date). The primary areas of the preliminary allocation of the fair value of consideration transferred that are not yet finalized relate to the fair values of certain tangible and intangible assets acquired and the residual goodwill. The preliminary allocation of the fair value of the acquired business is as follows: Identifiable assets acquired: Acquired cash and cash equivalents $ 1,677 Accounts receivable, net 3,399 Prepaid expenses and other current assets 496 Property and equipment 18,110 Other long-term assets 646 Intangible assets 6,362 Total identifiable assets acquired 30,690 Liabilities assumed: Accounts payable and accrued liabilities (4,038 ) Notes payable (4,329 ) Total liabilities assumed (8,367 ) Net identifiable assets acquired 22,323 Goodwill 9,858 Total net assets acquired $ 32,181 Goodwill was determined based on the residual difference between the fair value of the consideration transferred and the value assigned to tangible and intangible assets and liabilities and is deductible for tax purposes. Among the factors that contributed to a purchase price resulting in the recognition of goodwill were Zenith’s reputation for best-in-class, fully integrated logistical services which are uniquely tailored to the needs of the furniture industry, as well as their ability to provide expedited delivery service which is increasingly in demand in the furniture industry. A portion of the fair value of consideration transferred has been provisionally assigned to identifiable intangible assets as follows: Useful Life Description: In Years Fair Value Customer relationships 15 $ 3,038 Trade names Indefinite 2,490 Technology - customized applications 7 834 Total acquired intangible assets $ 6,362 The finite-lived intangible assets are being amortized on a straight-line basis over their useful lives. The indefinite-lived intangible asset and goodwill are not amortized but will be tested for impairment annually or between annual tests if an indicator of impairment exists. The fair values of consideration transferred and net assets acquired were determined using a combination of Level 2 and Level 3 inputs as specified in the fair value hierarchy in ASC 820, Fair Value Measurements and Disclosures Acquisition costs related to the Zenith acquisition totaled $0 and $209 during the three and nine months ended August 29, 2015, respectively, and are included in selling, general and administrative expenses in the condensed consolidated statements of income. The acquisition costs are primarily related to legal, accounting and valuation services. Zenith’s revenue since February 2, 2015 included in our condensed consolidated statement of income for the three and nine months ended August 29, 2015 is $13,904 and $29,250, respectively, after the elimination of intercompany transactions. Net income of Zenith for the three and nine months ended August 29, 2015 is $629 and $1,220, respectively. The pro forma results of operations for the acquisition of Zenith have not been presented because they are not material to our consolidated results of operations. |
Note 4 - Goodwill and Other Int
Note 4 - Goodwill and Other Intangible Assets | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 4. Goodwill and Other Intangible Assets At August 29, 2015 goodwill and other intangible assets consisted of the following: Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships $ 3,038 $ (118 ) $ 2,920 Technology - customized applications 834 (70 ) 764 Total intangible assets subject to amortization 3,872 (188 ) 3,684 Intangibles not subject to amortization: Trade names 2,490 - 2,490 Goodwill 11,588 - 11,588 Total goodwill and other intangible assets $ 17,950 $ (188 ) $ 17,762 At November 29, 2014 our only intangible asset was goodwill with a carrying value of $1,731. Changes in the carrying amounts of goodwill by reportable segment were as follows: Wholesale Retail Logistics Total Balance as of November 29, 2014 $ 1,129 $ 602 $ - $ 1,731 Goodwill arising from acquisition of Zenith 3,711 1,218 4,928 9,857 Balance as of August 29, 2015 $ 4,840 $ 1,820 $ 4,928 $ 11,588 The goodwill recognized in connection with our acquisition of Zenith remains subject to future adjustments before the close of the measurement period in the first quarter of fiscal 2016. Refer to Note 3, Business Combinations, for additional information regarding the Zenith acquisition. There were no accumulated impairment losses on goodwill as of August 29, 2015 or November 29, 2014. Amortization expense associated with intangible assets during the three and nine months ended August 29, 2015 was $80 and $188, respectively. There was no amortization expense recognized during fiscal 2014. Estimated future amortization expense for intangible assets that exist at August 29, 2015 is as follows: Remainder of fiscal 2015 $ 79 Fiscal 2016 322 Fiscal 2017 322 Fiscal 2018 322 Fiscal 2019 322 Fiscal 2020 322 Thereafter 1,995 Total $ 3,684 |
Note 5 - Accounts Receivable
Note 5 - Accounts Receivable | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 5. Accounts Receivable Accounts receivable consists of the following: August 29, 2015 November 29, 2014 Gross accounts receivable $ 20,840 $ 16,477 Allowance for doubtful accounts (1,295 ) (1,249 ) Accounts receivable, net $ 19,545 $ 15,228 At August 29, 2015 and November 29, 2014 approximately 37% and 46%, respectively, of gross accounts receivable, and approximately 55% and 58%, respectively, of the allowance for doubtful accounts were attributable to amounts owed to us by our licensees. Our remaining receivables are primarily due from national account customers, traditional distribution channel customers, and logistical services customers. Activity in the allowance for doubtful accounts for the nine months ended August 29, 2015 was as follows: Balance at November 29, 2014 $ 1,249 Acquired allowance on accounts receivable (Note 3) 209 Reductions to allowance, net (163 ) Balance at August 29, 2015 $ 1,295 We believe that the carrying value of our net accounts receivable approximates fair value. The inputs into these fair value estimates reflect our market assumptions and are not observable. Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures |
Note 6 - Inventories
Note 6 - Inventories | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 6 . Inventories Inventories are valued at the lower of cost or market. Cost is determined for domestic furniture inventories using the last-in, first-out (LIFO) method. The costs for imported inventories are determined using the first-in, first-out (FIFO) method. Inventories were comprised of the following: August 29, 2015 November 29, 2014 Wholesale finished goods $ 34,275 $ 31,399 Work in process 334 298 Raw materials and supplies 12,007 8,109 Retail merchandise 28,455 26,428 Total inventories on first-in, first-out method 75,071 66,234 LIFO adjustment (7,859 ) (7,550 ) Reserve for excess and obsolete inventory (1,775 ) (1,412 ) $ 65,437 $ 57,272 We estimate an inventory reserve for excess quantities and obsolete items based on specific identification and historical write-offs, taking into account future demand, market conditions and the respective valuations at LIFO. The need for these reserves is primarily driven by the normal product life cycle. As products mature and sales volumes decline, we rationalize our product offerings to respond to consumer tastes and keep our product lines fresh. If actual demand or market conditions in the future are less favorable than those estimated, additional inventory write-downs may be required. In determining reserves, we calculate separate reserves on our wholesale and retail inventories. Our wholesale inventories tend to carry the majority of the reserves for excess quantities and obsolete inventory due to the nature of our distribution model. These wholesale reserves primarily represent design and/or style obsolescence. Typically, product is not shipped to our retail warehouses until a consumer has ordered and paid a deposit for the product. We do not typically hold retail inventory for stock purposes. Consequently, floor sample inventory and inventory for delivery to customers account for the majority of our inventory at retail. Retail reserves are based on accessory and clearance floor sample inventory in our stores and any inventory that is not associated with a specific customer order in our retail warehouses. Activity in the reserves for excess quantities and obsolete inventory by segment are as follows: Wholesale Segment Retail Segment Total Balance at November 29, 2014 $ 1,060 $ 352 $ 1,412 Additions charged to expense 1,601 319 1,920 Write-offs (1,187 ) (370 ) (1,557 ) Balance at August 29, 2015 $ 1,474 $ 301 $ 1,775 Our estimates and assumptions have been reasonably accurate in the past. We have not made any significant changes to our methodology for determining inventory reserves in 2015 and do not anticipate that our methodology is likely to change in the future. |
Note 7 - Unconsolidated Affilia
Note 7 - Unconsolidated Affiliated Company | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 7. Unconsolidated Affiliated Compan y Prior to February 2, 2015 we owned 49% of Zenith and accounted for our investment under the equity method. Our investment in Zenith at November 29, 2014 was $7,915 and is included in other assets in our condensed consolidated balance sheet. The balance of our investment in Zenith was adjusted for our equity in the earnings of Zenith through February 2, 2015 of $220, and increased by $1,345 representing our 49% share of a $2,745 capital contribution made to Zenith, a portion of which was used for retirement of certain of Zenith’s debt prior to the acquisition. This activity resulted in a carrying value for our investment in Zenith of $9,480 on the date of acquisition. See Note 3 regarding the remeasurement of this carrying value to fair value in connection with the acquisition and the resulting gain. At November 29, 2014, we owed Zenith $2,628 for services rendered to us. We believe the transactions with Zenith were recorded at current market rates. Prior to the acquisition on February 2, 2015, we recorded the following income from Zenith in other loss, net, in our condensed consolidated statements of income: Quarter Ended Nine Months Ended August 29, 2015 August 30, 2014 August 29, 2015 August 30, 2014 Earnings recognized $ - $ 190 $ 220 $ 534 |
Note 8 - Notes Payable and Bank
Note 8 - Notes Payable and Bank Credit Facility | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Notes Payable and Bank Credit Facility Our notes payable consist of the following: August 29, 2015 Principal Balance Unamortized Discount Net Carrying Amount Zenith acquisition note payable $ 9,000 $ (388 ) $ 8,612 Transportation equipment notes payable 2,952 - 2,952 Real estate notes payable 3,272 - 3,272 Total debt 15,224 (388 ) 14,836 Less current portion (4,709 ) 233 (4,476 ) Total long-term debt $ 10,515 $ (155 ) $ 10,360 November 29, 2014 Principal Balance Unamortized Discount Net Carrying Amount Real estate notes payable $ 2,218 $ - $ 2,218 Less current portion (316 ) - (316 ) Total long-term debt $ 1,902 $ - $ 1,902 The future maturities of our notes payable are as follows: Remainder of fiscal 2015 $ 420 Fiscal 2016 5,688 Fiscal 2017 4,330 Fiscal 2018 3,855 Fiscal 2019 527 Fiscal 2020 404 Thereafter - $ 15,224 Zenith Acquisition Note Payable As part of the consideration given for our acquisition of Zenith on February 2, 2015, we issued an unsecured note payable to the former owner in the amount of $9,000. The note is payable in three annual installments $3,000 beginning February 2, 2016. Interest is payable annually at the one year LIBOR rate, which was established at 0.62% on February 2, 2015 and resets on each anniversary of the note. The note was recorded at its fair value in connection with the acquisition resulting in a debt discount that is amortized to the principal amount through the recognition of non-cash interest expense over the term of the note. Interest expense resulting from the amortization of the discount for the three and nine months ended August 29, 2015 was $76 and $177, respectively. The current portion of the note due within one year, net of the current portion of the unamortized discount, is $2,767 at August 29, 2015. Transportation Equipment Notes Payable Certain of the transportation equipment operated in our logistical services segment is financed by notes payable in the amount of $2,952. These notes are payable in fixed monthly payments of principal and interest at the fixed rate of 3.75% ,with remaining terms of twenty-two to forty-three months. The current portion of these notes due within one year at August 29, 2015 is $1,115. The notes are secured by tractors, trailers and local delivery trucks with a total net book value of $4,582 at August 29, 2015. Real Estate Notes Payable Two of our retail real estate properties have been financed through commercial mortgages with interest rates of 6.73%. These mortgages are collateralized by the respective properties with net book values totaling approximately $6,026 and $6,127 at August 29, 2015 and November 29, 2014, respectively. The total balance outstanding under these mortgages was $1,983 and $2,218 at August 29, 2015 and November 29, 2014, respectively. The current portion of these mortgages due within one year was $332 and $316 as of August 29, 2015 and November 29, 2014, respectively. Certain of the real estate located in Conover, NC and operated in our logistical services segment is subject to a note payable in the amount of $1,289. The note is payable in monthly installments of principal and interest at the fixed rate of 3.75% through October 2016, at which time the remaining balance on the note of approximately $1,004 will be due. The current portion of this note due within one year at August 29, 2015 is $262. The note is secured by land and buildings with a total net book value of $6,203 at August 29, 2015. Fair Value We believe that the carrying amount of our notes payable approximates fair value at both August 29, 2015 and November 29, 2014. In estimating the fair value, we utilize current market interest rates for similar instruments. The inputs into these fair value calculations reflect our market assumptions and are not observable. Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures Bank Credit Facility Our credit facility with our bank provides for a line of credit of up to $15,000. This credit facility is secured by our accounts receivable and inventory. The facility contains covenants requiring us to maintain certain key financial ratios. We are in compliance with all covenants under the agreement and expect to remain in compliance for the foreseeable future. The line will mature in December 2015, at which time we expect to obtain a new line under substantially similar terms. We have $1,825 outstanding under standby letters of credit, leaving availability under our credit line of $13,175. |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | 9 . Commitments and Contingencies We are involved in various legal and environmental matters, which arise in the normal course of business. Although the final outcome of these matters cannot be determined, based on the facts presently known, we believe that the final resolution of these matters will not have a material adverse effect on our financial position or future results of operations. We lease land and buildings that are used in the operation of our Company-owned retail stores as well as in the operation of certain of our licensee-owned stores, and we lease land and buildings at various locations throughout the continental United States for warehousing and distribution hubs used in our logistical services segment. We also lease tractors, trailers and local delivery trucks used in our logistical services segment. Our real estate lease terms range from one to 15 years and generally have renewal options of between five and 15 years. Some store leases contain contingent rental provisions based upon sales volume. Our transportation equipment leases have terms ranging from two to seven years with fixed monthly rental payments plus variable charges based upon mileage. The following schedule shows future minimum lease payments under non-cancellable operating leases with terms in excess of one year as of August 29, 2015: Retail Stores Distribution Centers Transportation Equipment Total Remainder of fiscal 2015 $ 4,631 $ 961 $ 669 $ 6,261 Fiscal 2016 17,528 3,523 2,429 23,480 Fiscal 2017 14,793 3,074 1,709 19,576 Fiscal 2018 12,282 1,339 806 14,427 Fiscal 2019 10,389 379 755 11,523 Fiscal 2020 9,103 - 671 9,774 Thereafter 24,635 - 30 24,665 $ 93,361 $ 9,276 $ 7,069 $ 109,706 We also have guaranteed certain lease obligations of licensee operators. Lease guarantees range from one to ten years. We were contingently liable under licensee lease obligation guarantees in the amount of $2,594 and $3,164 at August 29, 2015 and November 29, 2014, respectively. In the event of default by an independent dealer under the guaranteed lease, we believe that the risk of loss is mitigated through a combination of options that include, but are not limited to, arranging for a replacement dealer, liquidating the collateral (primarily inventory), and pursuing payment under the personal guarantees of the independent dealer. The proceeds of the above options are expected to cover the estimated amount of our future payments under the guarantee obligations, net of recorded reserves. The fair value of lease guarantees (an estimate of the cost to the Company to perform on these guarantees) at August 29, 2015 and November 29, 2014 was not material. |
Note 10 - Post Employment Benef
Note 10 - Post Employment Benefit Obligations | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Postemployment Benefits Disclosure [Text Block] | 10. Post Employment Benefit Obligations We have an unfunded Supplemental Retirement Income Plan (the “Supplemental Plan”) that covers one current and certain former executives. The liability for this plan was $10,323 and $10,376 as of August 29, 2015 and November 29, 2014, respectively, and is recorded as follows in the condensed consolidated balance sheets: August 29, 2015 November 29, 2014 Accrued compensation and benefits $ 724 $ 724 Post employment benefit obligations 9,599 9,652 Total pension liability $ 10,323 $ 10,376 Components of net periodic pension costs are as follows: Quarter Ended Nine Months Ended August 29, 2015 August 30, 2014 August 29, 2015 August 30, 2014 Service cost $ 26 $ 20 $ 78 $ 59 Interest cost 94 93 281 279 Amortization of transition obligation 11 10 32 32 Amortization of loss 49 31 146 92 Net periodic pension cost $ 180 $ 154 $ 537 $ 462 We have an unfunded Deferred Compensation Plan that covers one current executive and certain former executives and provides for voluntary deferral of compensation. This plan has been frozen with no additional participants or deferrals permitted. Our liability under this plan was $2,081 and $2,174 as of August 29, 2015 and November 29, 2014, respectively, and is recorded as follows in the condensed consolidated balance sheets: August 29, 2015 November 29, 2014 Accrued compensation and benefits $ 328 $ 328 Post employment benefit obligations 1,753 1,846 Total deferred compensation liability $ 2,081 $ 2,174 During the third quarter of fiscal 2014, we recorded a credit to income of $124 due to a change in our estimate of the future obligation of a former employee. We recognized expense (income) under this plan during the three and nine months ended August 29, 2015 and August 30, 2014 as follows: Quarter Ended Nine Months Ended August 29, 2015 August 30, 2014 August 29, 2015 August 30, 2014 Deferred compensation expense (income) $ 54 $ (52 ) $ 162 $ 92 |
Note 11 - Earnings Per Share
Note 11 - Earnings Per Share | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 11 . Earnings Per Share The following reconciles basic and diluted earnings per share: Net Income Weighted Average Shares Net Income Per Share For the quarter ended August 29, 2015: Basic earnings per share $ 4,266 10,816,293 $ 0.39 Add effect of dilutive securities: Options and restricted shares - 116,575 - Diluted earnings per share $ 4,266 10,932,868 $ 0.39 For the quarter ended August 30, 2014: Basic earnings per share $ 2,256 10,475,945 $ 0.22 Add effect of dilutive securities: Options and restricted shares - 135,209 (0.01 ) Diluted earnings per share $ 2,256 10,611,154 $ 0.21 For the nine months ended August 29, 2015: Basic earnings per share $ 14,751 10,658,416 $ 1.38 Add effect of dilutive securities: Options and restricted shares - 153,787 (0.02 ) Diluted earnings per share $ 14,751 10,812,203 $ 1.36 For the nine months ended August 30, 2014: Basic earnings per share $ 5,650 10,596,433 $ 0.54 Add effect of dilutive securities: Options and restricted shares - 138,627 (0.01 ) Diluted earnings per share $ 5,650 10,735,060 $ 0.53 For the three and nine months ended August 29, 2015 and August 30, 2014, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive: Quarter Ended Nine Months Ended August 29, 2015 August 30, 2014 August 29, 2015 August 30, 2014 Stock options - 207,500 - 207,500 Unvested shares 2,000 - 8,354 66,339 Total anti-dilutive securities 2,000 207,500 8,354 273,839 |
Note 12 - Financial Instruments
Note 12 - Financial Instruments and Fair Value Measurements | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 1 2 . Financial Instruments and Fair Value Measurements Financial Instruments Our financial instruments include cash and cash equivalents, short-term investments in certificates of deposit, accounts receivable, cost method investments, accounts payable and long-term debt. Because of their short maturities, the carrying amounts of cash and cash equivalents, short-term investments in certificates of deposit, accounts receivable, and accounts payable approximate fair value. Our cost method investments generally involve entities for which it is not practical to determine fair values. Investments Our short-term investments of $23,125 at both August 29, 2015 and November 29, 2014 consisted of certificates of deposit (CDs) with original terms generally ranging from six to twelve months, bearing interest at rates ranging from 0.28% to 1.00%. At August 29, 2015, the weighted average remaining time to maturity of the CDs was approximately ten months and the weighted average yield of the CDs was approximately 0.42%. Each CD is placed with a Federally insured financial institution and all deposits are within Federal deposit insurance limits. As the CDs mature, we expect to reinvest them in CDs of similar maturities of up to one year. Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at August 29, 2015 and November 29, 2014 approximates their fair value. Fair Value Measurement The Company accounts for items measured at fair value in accordance with ASC Topic 820, Fair Value Measurements and Disclosures Level 1 Inputs Level 2 Inputs Level 3 Inputs We believe that the carrying amounts of our current assets and current liabilities approximate fair value due to the short-term nature of these items. The recurring estimate of the fair value of our notes payable for disclosure purposes (see Note 8) involves Level 3 inputs. Our primary non-recurring fair value estimates typically involve business acquisitions (Note 3) which involve a combination of Level 2 and Level 3 inputs, and asset impairments (Note 13) which utilize Level 3 inputs. |
Note 13 - Asset Disposition, Im
Note 13 - Asset Disposition, Impairment Charges and Accured Lease Exit Costs, and Income from CDSOA | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Asset Disposition and Accrued Lease Exit Costs [Text Block] | 1 3 . Asset Disposition, Impairment Charges and Accrued Lease Exit Costs, and Income from CDSOA Asset Disposition On March 12, 2015, we closed on the sale of our retail real estate investment property located in Sugarland, Texas and received cash in the amount of $2,835 which is included in proceeds from sales of property and equipment in the accompanying statement of condensed consolidated cash flows. This asset was included in other assets at November 29, 2014 along with our other investments in retail real estate. During the nine months ended August 29, 2015, we recognized a non-cash charge of $182 to write down the carrying value of the Sugarland real estate to the selling price. This charge is included in other loss, net in our condensed consolidated income statement. Asset Impairment Charges and Lease Exit Costs During the first quarter of fiscal 2015 we announced the closing of our Company-owned retail store location in Memphis, Tennessee. In connection with this closing, we recognized non-cash charges for the nine months ended August 29, 2015 of $419 for the accrual of lease exit costs and $106 for the write off of abandoned leasehold improvements and other store assets. The following table summarized the activity related to our accrued lease exit costs: Balance at November 29, 2014 $ 433 Provisions associated with Company-owned retail store closures 419 Payments and other (185 ) Balance at August 29, 2015 $ 667 Current portion included in other accrued liabilities $ 402 Long-term portion included in other long-term liabilities 265 $ 667 Management Restructuring Costs During the nine months ended August 29, 2015, we recognized $449 of expense related to severance payable to a former executive, who left the Company in April, 2015. Of the total severance amount, $254 had been paid during the second and third quarters of 2015 with the remaining $195 included in other accrued liabilities in the condensed consolidated balance sheet at August 29, 2015. Income from Continued Dumping & Subsidy Offset Act During the nine months ended August 29, 2015, we recognized income of $1,066 arising from distributions received from U.S. Customs and Border Protection (“Customs”) under the Continued Dumping and Subsidy Offset Act of 2000 (“CDSOA”). These distributions primarily represent amounts previously withheld by Customs pending the resolution of claims filed by certain manufacturers who did not support the antidumping petition (“Non-Supporting Producers”) challenging certain provisions of the CDSOA and seeking to share in the distributions. The Non-Supporting Producers’ claims were dismissed by the courts and all appeals were exhausted in 2014. While it is possible that we may receive additional distributions from Customs, we cannot estimate the likelihood or amount of any future distributions. |
Note 14 - Recent Accounting Pro
Note 14 - Recent Accounting Pronouncements | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 14. Recent Accounting Pronouncements In April 2014, the FASB issued Accounting Standards Update No. 2014-08 (ASU 2014-08), which updated the guidance in ASC Topic 205, Presentation of Financial Statements, and ASC Topic 360, Property, Plant and Equipment. The amendments in ASU 2014-08 change the criteria for reporting discontinued operations for all public and nonpublic entities. The amendments also require new disclosures about discontinued operations and disposals of components of an entity that do not qualify for discontinued operations reporting. This guidance will become effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years, and therefore will become effective for us as of the beginning of our 2016 fiscal year. The adoption of this guidance is not expected to have a material impact upon our financial condition or results of operations. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), which creates ASC Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, ASU 2014-09 supersedes the cost guidance in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts, and creates new Subtopic 340-40, Other Assets and Deferred Costs—Contracts with Customers. In summary, the core principle of Topic 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Companies are allowed to select between two transition methods: (1) a full retrospective transition method with the application of the new guidance to each prior reporting period presented, or (2) a retrospective transition method that recognizes the cumulative effect on prior periods at the date of adoption together with additional footnote disclosures. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and early application is not permitted. Therefore the amendments in ASU 2014-09 will become effective for us as of the beginning of our 2019 fiscal year. We are currently evaluating the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements and have not made any decision on the method of adoption . In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement — Extraordinary and Unusual Items In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Inventory |
Note 15 - Segment Information
Note 15 - Segment Information | 9 Months Ended |
Aug. 29, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 1 5 . Segment Information We have strategically aligned our business into three reportable segments as defined in ASC 280, Segment Reporting ● Wholesale. ● Retail – Company-owned s tores. ● Logistical services . Inter-company sales elimination represents the elimination of wholesale sales to our Company-owned stores and the elimination of Zenith logistics revenue from our wholesale and retail segments. Inter-company income elimination includes the embedded wholesale profit in the Company-owned store inventory that has not been realized. These profits will be recorded when merchandise is delivered to the retail consumer. The inter-company income elimination also includes rent paid by our retail stores occupying Company-owned real estate, and the elimination of shipping and handling charges from Zenith for services provided to our wholesale and retail operations. Prior to the beginning of fiscal 2015, our former investments and real estate segment included our short-term investments, our holdings of retail real estate previously leased as licensee stores, and our former equity investment in Zenith prior to acquisition. This segment has been eliminated and the assets formerly reported therein are now considered to be part of our wholesale segment. The earnings and costs associated with these assets, including our equity in the income of Zenith prior to the date of acquisition, will continue to be included in other loss, net, in our condensed consolidated statements of income. The following table presents our segment information: Quarter Ended Nine Months Ended August 29, 2015 August 30, 2014 August 29, 2015 August 30, 2014 Sales Revenue Wholesale $ 62,165 $ 56,069 $ 187,675 $ 163,339 Retail - Company-owned stores 62,009 53,987 183,113 154,401 Logistical services 23,650 - 51,607 - Inter-company eliminations: Furniture and accessories (27,067 ) (24,870 ) (84,666 ) (71,722 ) Logistical services (9,746 ) - (22,357 ) Consolidated $ 111,011 $ 85,186 $ 315,372 $ 246,018 Income (loss) from Operations Wholesale $ 3,795 $ 3,216 $ 11,518 $ 9,821 Retail - Company-owned stores 2,037 (167 ) 3,967 (2,605 ) Logistical services 1,070 - 2,089 - Inter-company elimination 790 350 683 1,160 Management restructuring costs - - (449 ) - Lease exit costs - - (419 ) - Asset impairment charges - - (106 ) - Consolidated $ 7,692 $ 3,399 $ 17,283 $ 8,376 Depreciation and Amortization Wholesale $ 501 $ 539 $ 1,539 $ 1,420 Retail - Company-owned stores 1,326 1,451 4,024 4,008 Logistical services 745 - 1,739 - Consolidated $ 2,572 $ 1,990 $ 7,302 $ 5,428 Capital Expenditures Wholesale $ 1,793 $ 788 $ 4,138 $ 4,013 Retail - Company-owned stores 1,448 2,690 5,326 11,674 Logistical services 100 - 1,819 - Consolidated $ 3,341 $ 3,478 $ 11,283 $ 15,687 As of As of August 29, 2015 November 29, 2014 Identifiable Assets Wholesale $ 137,228 $ 154,275 Retail - Company-owned stores 90,728 86,471 Logistical services 42,661 - Consolidated $ 270,617 $ 240,746 |
Note 3 - Business Combination21
Note 3 - Business Combination - Acquisition of Zenith (Tables) | 9 Months Ended |
Aug. 29, 2015 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Fair value of consideration transferred in exchange for 51% of Zenith: Cash $ 9,000 Bassett common stock, 89,485 shares, par value $5.00 per share, fair value at closing $18.72 per share 1,675 Note payable 8,436 Total fair value of consideration transferred to seller 19,111 Less effective settlement of previous amounts payable to Zenith at acquisition (3,622 ) Total fair value of consideration net of effective settlement 15,489 Fair value of Bassett's previous 49% interest in Zenith 16,692 Total fair value of acquired business $ 32,181 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Identifiable assets acquired: Acquired cash and cash equivalents $ 1,677 Accounts receivable, net 3,399 Prepaid expenses and other current assets 496 Property and equipment 18,110 Other long-term assets 646 Intangible assets 6,362 Total identifiable assets acquired 30,690 Liabilities assumed: Accounts payable and accrued liabilities (4,038 ) Notes payable (4,329 ) Total liabilities assumed (8,367 ) Net identifiable assets acquired 22,323 Goodwill 9,858 Total net assets acquired $ 32,181 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Useful Life Description: In Years Fair Value Customer relationships 15 $ 3,038 Trade names Indefinite 2,490 Technology - customized applications 7 834 Total acquired intangible assets $ 6,362 |
Note 4 - Goodwill and Other I22
Note 4 - Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Aug. 29, 2015 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships $ 3,038 $ (118 ) $ 2,920 Technology - customized applications 834 (70 ) 764 Total intangible assets subject to amortization 3,872 (188 ) 3,684 Intangibles not subject to amortization: Trade names 2,490 - 2,490 Goodwill 11,588 - 11,588 Total goodwill and other intangible assets $ 17,950 $ (188 ) $ 17,762 |
Schedule of Goodwill [Table Text Block] | Wholesale Retail Logistics Total Balance as of November 29, 2014 $ 1,129 $ 602 $ - $ 1,731 Goodwill arising from acquisition of Zenith 3,711 1,218 4,928 9,857 Balance as of August 29, 2015 $ 4,840 $ 1,820 $ 4,928 $ 11,588 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Remainder of fiscal 2015 $ 79 Fiscal 2016 322 Fiscal 2017 322 Fiscal 2018 322 Fiscal 2019 322 Fiscal 2020 322 Thereafter 1,995 Total $ 3,684 |
Note 5 - Accounts Receivable (T
Note 5 - Accounts Receivable (Tables) | 9 Months Ended |
Aug. 29, 2015 | |
Notes Tables | |
Schedule Of Accounts Receivable [Table Text Block] | August 29, 2015 November 29, 2014 Gross accounts receivable $ 20,840 $ 16,477 Allowance for doubtful accounts (1,295 ) (1,249 ) Accounts receivable, net $ 19,545 $ 15,228 |
Schedule of Credit Losses for Financing Receivables, Current [Table Text Block] | Balance at November 29, 2014 $ 1,249 Acquired allowance on accounts receivable (Note 3) 209 Reductions to allowance, net (163 ) Balance at August 29, 2015 $ 1,295 |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 9 Months Ended |
Aug. 29, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | August 29, 2015 November 29, 2014 Wholesale finished goods $ 34,275 $ 31,399 Work in process 334 298 Raw materials and supplies 12,007 8,109 Retail merchandise 28,455 26,428 Total inventories on first-in, first-out method 75,071 66,234 LIFO adjustment (7,859 ) (7,550 ) Reserve for excess and obsolete inventory (1,775 ) (1,412 ) $ 65,437 $ 57,272 |
Activity In Reserves For Excess Quantities And Obsolete Inventory By Segment [Table Text Block] | Wholesale Segment Retail Segment Total Balance at November 29, 2014 $ 1,060 $ 352 $ 1,412 Additions charged to expense 1,601 319 1,920 Write-offs (1,187 ) (370 ) (1,557 ) Balance at August 29, 2015 $ 1,474 $ 301 $ 1,775 |
Note 7 - Unconsolidated Affil25
Note 7 - Unconsolidated Affiliated Company (Tables) | 9 Months Ended |
Aug. 29, 2015 | |
Zenith Freight Lines [Member] | |
Notes Tables | |
Equity Method Investments [Table Text Block] | Quarter Ended Nine Months Ended August 29, 2015 August 30, 2014 August 29, 2015 August 30, 2014 Earnings recognized $ - $ 190 $ 220 $ 534 |
Note 8 - Notes Payable and Ba26
Note 8 - Notes Payable and Bank Credit Facility (Tables) | 9 Months Ended |
Aug. 29, 2015 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | August 29, 2015 Principal Balance Unamortized Discount Net Carrying Amount Zenith acquisition note payable $ 9,000 $ (388 ) $ 8,612 Transportation equipment notes payable 2,952 - 2,952 Real estate notes payable 3,272 - 3,272 Total debt 15,224 (388 ) 14,836 Less current portion (4,709 ) 233 (4,476 ) Total long-term debt $ 10,515 $ (155 ) $ 10,360 November 29, 2014 Principal Balance Unamortized Discount Net Carrying Amount Real estate notes payable $ 2,218 $ - $ 2,218 Less current portion (316 ) - (316 ) Total long-term debt $ 1,902 $ - $ 1,902 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Remainder of fiscal 2015 $ 420 Fiscal 2016 5,688 Fiscal 2017 4,330 Fiscal 2018 3,855 Fiscal 2019 527 Fiscal 2020 404 Thereafter - $ 15,224 |
Note 9 - Commitments and Cont27
Note 9 - Commitments and Contingencies (Tables) | 9 Months Ended |
Aug. 29, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Retail Stores Distribution Centers Transportation Equipment Total Remainder of fiscal 2015 $ 4,631 $ 961 $ 669 $ 6,261 Fiscal 2016 17,528 3,523 2,429 23,480 Fiscal 2017 14,793 3,074 1,709 19,576 Fiscal 2018 12,282 1,339 806 14,427 Fiscal 2019 10,389 379 755 11,523 Fiscal 2020 9,103 - 671 9,774 Thereafter 24,635 - 30 24,665 $ 93,361 $ 9,276 $ 7,069 $ 109,706 |
Note 10 - Post Employment Ben28
Note 10 - Post Employment Benefit Obligations (Tables) | 9 Months Ended |
Aug. 29, 2015 | |
Notes Tables | |
Schedule of Pension Liability [Table Text Block] | August 29, 2015 November 29, 2014 Accrued compensation and benefits $ 724 $ 724 Post employment benefit obligations 9,599 9,652 Total pension liability $ 10,323 $ 10,376 August 29, 2015 November 29, 2014 Accrued compensation and benefits $ 328 $ 328 Post employment benefit obligations 1,753 1,846 Total deferred compensation liability $ 2,081 $ 2,174 |
Schedule of Net Benefit Costs [Table Text Block] | Quarter Ended Nine Months Ended August 29, 2015 August 30, 2014 August 29, 2015 August 30, 2014 Service cost $ 26 $ 20 $ 78 $ 59 Interest cost 94 93 281 279 Amortization of transition obligation 11 10 32 32 Amortization of loss 49 31 146 92 Net periodic pension cost $ 180 $ 154 $ 537 $ 462 |
Deferred Compensation Arrangement with Individual Disclosure, Postretirement Benefits [Table Text Block] | Quarter Ended Nine Months Ended August 29, 2015 August 30, 2014 August 29, 2015 August 30, 2014 Deferred compensation expense (income) $ 54 $ (52 ) $ 162 $ 92 |
Note 11 - Earnings Per Share (T
Note 11 - Earnings Per Share (Tables) | 9 Months Ended |
Aug. 29, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net Income Weighted Average Shares Net Income Per Share For the quarter ended August 29, 2015: Basic earnings per share $ 4,266 10,816,293 $ 0.39 Add effect of dilutive securities: Options and restricted shares - 116,575 - Diluted earnings per share $ 4,266 10,932,868 $ 0.39 For the quarter ended August 30, 2014: Basic earnings per share $ 2,256 10,475,945 $ 0.22 Add effect of dilutive securities: Options and restricted shares - 135,209 (0.01 ) Diluted earnings per share $ 2,256 10,611,154 $ 0.21 For the nine months ended August 29, 2015: Basic earnings per share $ 14,751 10,658,416 $ 1.38 Add effect of dilutive securities: Options and restricted shares - 153,787 (0.02 ) Diluted earnings per share $ 14,751 10,812,203 $ 1.36 For the nine months ended August 30, 2014: Basic earnings per share $ 5,650 10,596,433 $ 0.54 Add effect of dilutive securities: Options and restricted shares - 138,627 (0.01 ) Diluted earnings per share $ 5,650 10,735,060 $ 0.53 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Quarter Ended Nine Months Ended August 29, 2015 August 30, 2014 August 29, 2015 August 30, 2014 Stock options - 207,500 - 207,500 Unvested shares 2,000 - 8,354 66,339 Total anti-dilutive securities 2,000 207,500 8,354 273,839 |
Note 13 - Asset Disposition, 30
Note 13 - Asset Disposition, Impairment Charges and Accured Lease Exit Costs, and Income from CDSOA (Tables) | 9 Months Ended |
Aug. 29, 2015 | |
Notes Tables | |
Schedule Of Activity Related To Accrued Lease Exit Costs [Table Text Block] | Balance at November 29, 2014 $ 433 Provisions associated with Company-owned retail store closures 419 Payments and other (185 ) Balance at August 29, 2015 $ 667 Current portion included in other accrued liabilities $ 402 Long-term portion included in other long-term liabilities 265 $ 667 |
Note 15 - Segment Information (
Note 15 - Segment Information (Tables) | 9 Months Ended |
Aug. 29, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Quarter Ended Nine Months Ended August 29, 2015 August 30, 2014 August 29, 2015 August 30, 2014 Sales Revenue Wholesale $ 62,165 $ 56,069 $ 187,675 $ 163,339 Retail - Company-owned stores 62,009 53,987 183,113 154,401 Logistical services 23,650 - 51,607 - Inter-company eliminations: Furniture and accessories (27,067 ) (24,870 ) (84,666 ) (71,722 ) Logistical services (9,746 ) - (22,357 ) Consolidated $ 111,011 $ 85,186 $ 315,372 $ 246,018 Income (loss) from Operations Wholesale $ 3,795 $ 3,216 $ 11,518 $ 9,821 Retail - Company-owned stores 2,037 (167 ) 3,967 (2,605 ) Logistical services 1,070 - 2,089 - Inter-company elimination 790 350 683 1,160 Management restructuring costs - - (449 ) - Lease exit costs - - (419 ) - Asset impairment charges - - (106 ) - Consolidated $ 7,692 $ 3,399 $ 17,283 $ 8,376 Depreciation and Amortization Wholesale $ 501 $ 539 $ 1,539 $ 1,420 Retail - Company-owned stores 1,326 1,451 4,024 4,008 Logistical services 745 - 1,739 - Consolidated $ 2,572 $ 1,990 $ 7,302 $ 5,428 Capital Expenditures Wholesale $ 1,793 $ 788 $ 4,138 $ 4,013 Retail - Company-owned stores 1,448 2,690 5,326 11,674 Logistical services 100 - 1,819 - Consolidated $ 3,341 $ 3,478 $ 11,283 $ 15,687 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | As of As of August 29, 2015 November 29, 2014 Identifiable Assets Wholesale $ 137,228 $ 154,275 Retail - Company-owned stores 90,728 86,471 Logistical services 42,661 - Consolidated $ 270,617 $ 240,746 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) | Feb. 02, 2015 | Feb. 01, 2015 |
Zenith Freight Lines [Member] | ||
Equity Method Investment, Ownership Percentage | 49.00% | |
Zenith Freight Lines [Member] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% |
Note 3 - Business Combination33
Note 3 - Business Combination - Acquisition of Zenith (Details Textual) | Feb. 02, 2015USD ($) | Feb. 01, 2015USD ($) | Aug. 29, 2015USD ($) | Aug. 30, 2014USD ($) | Aug. 29, 2015USD ($) | Aug. 29, 2015USD ($)$ / shares | Aug. 30, 2014USD ($) |
Zenith Freight Lines [Member] | |||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||
Equity Method Investments, Carrying Value Prior to Step Acquisition Remeasurement | $ 9,480,000 | ||||||
Zenith Freight Lines [Member] | Long-term Debt [Member] | |||||||
Debt Instrument, Periodic Payment | $ 3,000,000 | ||||||
Zenith Freight Lines [Member] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||||||
Business Combination, Consideration Transferred | $ 19,111,000 | $ 19,111,000 | |||||
Debt Instrument, Periodic Payment, Number of Installments | 3 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 16,692,000 | 16,692,000 | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 7,212,000 | ||||||
Basic Earnings Per Share Adjustment | $ / shares | $ 0.42 | ||||||
Diluted Earnings Per Share Adjustment | $ / shares | $ 0.41 | ||||||
Business Combination, Acquisition Related Costs | $ 0 | $ 209,000 | |||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 13,904,000 | 29,250,000 | |||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 629,000 | 1,220,000 | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 7,212,000 |
Note 3 - Business Combination34
Note 3 - Business Combination - Acquisition of Zenith - Fair Value of Acquired Business (Details) - Zenith Freight Lines [Member] | 9 Months Ended |
Aug. 29, 2015USD ($) | |
Cash | $ 9,000,000 |
Bassett common stock, 89,485 shares, par value $5.00 per share, fair value at closing $18.72 per share | 1,675,000 |
Note payable | 8,436,000 |
Total fair value of consideration transferred to seller | 19,111,000 |
Less effective settlement of previous amounts payable to Zenith at acquisition | (3,622,000) |
Total fair value of consideration net of effective settlement | 15,489,000 |
Fair value of Bassett's previous 49% interest in Zenith | 16,692,000 |
Total fair value of acquired business | $ 32,181,000 |
Note 3 - Business Combination35
Note 3 - Business Combination - Acquisition of Zenith - Allocation of Fair Value of the Acquired Business (Details) | Feb. 02, 2015USD ($) |
Zenith Freight Lines [Member] | |
Acquired cash and cash equivalents | $ 1,677,000 |
Accounts receivable, net | 3,399,000 |
Prepaid expenses and other current assets | 496,000 |
Property and equipment | 18,110,000 |
Other long-term assets | 646,000 |
Intangible assets | 6,362,000 |
Total identifiable assets acquired | 30,690,000 |
Accounts payable and accrued liabilities | (4,038,000) |
Notes payable | (4,329,000) |
Total liabilities assumed | (8,367,000) |
Net identifiable assets acquired | 22,323,000 |
Goodwill | 9,858,000 |
Total net assets acquired | $ 32,181,000 |
Note 3 - Business Combination36
Note 3 - Business Combination - Acquisition of Zenith - Acquired Identifiable Intangible Assets (Details) - Zenith Freight Lines [Member] $ in Thousands | 9 Months Ended |
Aug. 29, 2015USD ($) | |
Customer Relationships [Member] | |
Useful Life In Years | 15 years |
Fair Value | $ 3,038 |
Technology-Based Intangible Assets [Member] | |
Useful Life In Years | 7 years |
Fair Value | $ 834 |
Trade Names [Member] | |
Fair Value | 2,490 |
Fair Value | $ 6,362 |
Note 4 - Goodwill and Other I37
Note 4 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Aug. 29, 2015 | Aug. 29, 2015 | Nov. 29, 2014 | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | $ 0 | $ 0 |
Amortization of Intangible Assets | 80,000 | 188,000 | 0 |
Goodwill | $ 11,588,000 | $ 11,588,000 | $ 1,731,000 |
Note 4 - Goodwill and Other I38
Note 4 - Goodwill and Other Intangible Assets - Goodwill and Other Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Aug. 29, 2015USD ($) | |
Customer Relationships [Member] | |
Intangibles subject to amortization, Gross Carrying Amount | $ 3,038 |
Intangibles subject to amortization, Accumulated Amortization | (118) |
Intangibles subject to amortization, Intangible Assets, Net | 2,920 |
Technology-Based Intangible Assets [Member] | |
Intangibles subject to amortization, Gross Carrying Amount | 834 |
Intangibles subject to amortization, Accumulated Amortization | (70) |
Intangibles subject to amortization, Intangible Assets, Net | 764 |
Intangibles subject to amortization, Gross Carrying Amount | 3,872 |
Intangibles subject to amortization, Accumulated Amortization | (188) |
Intangibles subject to amortization, Intangible Assets, Net | 3,684 |
Trade names | 2,490 |
Goodwill | 11,588 |
Total goodwill and other intangible assets | 17,950 |
Total goodwill and other intangible assets | $ 17,762 |
Note 4 - Goodwill and Other I39
Note 4 - Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) | 9 Months Ended | |
Aug. 29, 2015 | Nov. 29, 2014 | |
Wholesale Segment [Member] | ||
Goodwill | $ 4,840,000 | $ 1,129,000 |
Goodwill arising from acquisition of Zenith | 3,711,000 | |
Retail Segment [Member] | ||
Goodwill | 1,820,000 | $ 602,000 |
Goodwill arising from acquisition of Zenith | 1,218,000 | |
Logistical Services [Member] | ||
Goodwill | 4,928,000 | |
Goodwill arising from acquisition of Zenith | 4,928,000 | |
Goodwill | 11,588,000 | $ 1,731,000 |
Goodwill arising from acquisition of Zenith | $ 9,857,000 |
Note 4 - Goodwill and Other I40
Note 4 - Goodwill and Other Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Details) $ in Thousands | Aug. 29, 2015USD ($) |
Remainder of fiscal 2015 | $ 79 |
Fiscal 2,016 | 322 |
Fiscal 2,017 | 322 |
Fiscal 2,018 | 322 |
Fiscal 2,019 | 322 |
Fiscal 2,020 | 322 |
Thereafter | 1,995 |
Total | $ 3,684 |
Note 5 - Accounts Receivable (D
Note 5 - Accounts Receivable (Details Textual) - Licensees [Member] | 9 Months Ended | 12 Months Ended |
Aug. 29, 2015 | Nov. 29, 2014 | |
Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 37.00% | 46.00% |
Allowance for Doubtful Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 55.00% | 58.00% |
Note 5 - Accounts Receivable -
Note 5 - Accounts Receivable - Accounts Receivable (Details) - USD ($) $ in Thousands | Aug. 29, 2015 | Nov. 29, 2014 |
Gross accounts receivable | $ 20,840 | $ 16,477 |
Allowance for doubtful accounts | (1,295) | (1,249) |
Accounts receivable, net | $ 19,545 | $ 15,228 |
Note 5 - Accounts Receivable 43
Note 5 - Accounts Receivable - Activity in Allowance for Doubtful Accounts (Details) $ in Thousands | 9 Months Ended |
Aug. 29, 2015USD ($) | |
Zenith Freight Lines [Member] | |
Acquired allowance on accounts receivable (Note 3) | $ 209 |
Balance at November 29, 2014 | 1,249 |
Reductions to allowance, net | (163) |
Balance at August 29, 2015 | $ 1,295 |
Note 6 - Inventories - Inventor
Note 6 - Inventories - Inventories (Details) - USD ($) $ in Thousands | Aug. 29, 2015 | Nov. 29, 2014 |
Wholesale finished goods | $ 34,275 | $ 31,399 |
Work in process | 334 | 298 |
Raw materials and supplies | 12,007 | 8,109 |
Retail merchandise | 28,455 | 26,428 |
Total inventories on first-in, first-out method | 75,071 | 66,234 |
LIFO adjustment | (7,859) | (7,550) |
Reserve for excess and obsolete inventory | (1,775) | (1,412) |
Inventory, net | $ 65,437 | $ 57,272 |
Note 6 - Inventories - Activity
Note 6 - Inventories - Activity in Reserves for Excess Quantities and Obsolete Inventory by Segment (Details) $ in Thousands | 9 Months Ended |
Aug. 29, 2015USD ($) | |
Wholesale Segment [Member] | Operating Segments [Member] | |
Balance at November 29, 2014 | $ 1,060 |
Additions charged to expense | 1,601 |
Write-offs | (1,187) |
Balance at August 29, 2015 | 1,474 |
Retail Segment [Member] | Operating Segments [Member] | |
Balance at November 29, 2014 | 352 |
Additions charged to expense | 319 |
Write-offs | (370) |
Balance at August 29, 2015 | 301 |
Balance at November 29, 2014 | 1,412 |
Additions charged to expense | 1,920 |
Write-offs | (1,557) |
Balance at August 29, 2015 | $ 1,775 |
Note 7 - Unconsolidated Affil46
Note 7 - Unconsolidated Affiliated Company (Details Textual) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Feb. 02, 2015 | Aug. 29, 2015 | Aug. 30, 2014 | Aug. 29, 2015 | Aug. 30, 2014 | Feb. 01, 2015 | Nov. 29, 2014 | |
Zenith Freight Lines [Member] | |||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||
Equity Method Investments | $ 9,480 | $ 7,915 | |||||
Income (Loss) from Equity Method Investments | 220 | ||||||
Investments in and Advances to Affiliates, at Fair Value, Gross Additions | 1,345 | ||||||
Capital Contributions Made to Unconsolidated Affiliated Companies | $ 2,745 | ||||||
Due to Affiliate | $ 2,628 | ||||||
Income (Loss) from Equity Method Investments | $ 190 | $ 220 | $ 534 |
Note 7 - Unconsolidated Affil47
Note 7 - Unconsolidated Affiliated Company - Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 29, 2015 | Aug. 30, 2014 | Aug. 29, 2015 | Aug. 30, 2014 | |
Earnings recognized | $ 190 | $ 220 | $ 534 |
Note 8 - Notes Payable and Ba48
Note 8 - Notes Payable and Bank Credit Facility (Details Textual) $ in Thousands | Feb. 02, 2015USD ($) | Aug. 29, 2015USD ($) | Aug. 29, 2015USD ($) | Nov. 29, 2014USD ($) |
Minimum [Member] | Transportation Equipment Notes Payable [Member] | ||||
Debt Instrument, Term | 1 year 330 days | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | ||
Maximum [Member] | Transportation Equipment Notes Payable [Member] | ||||
Debt Instrument, Term | 3 years 210 days | |||
Debt Instrument, Interest Rate, Stated Percentage | 2002.00% | 2002.00% | ||
Transportation Equipment Notes Payable [Member] | Tractors, Trailers and Local Delivery Trucks [Member] | ||||
Debt Instrument, Collateral Amount | $ 4,582 | $ 4,582 | ||
Transportation Equipment Notes Payable [Member] | ||||
Secured Debt | 2,952 | 2,952 | ||
Secured Debt, Current | 1,115 | 1,115 | ||
Long-term Debt | 2,952 | 2,952 | ||
Unsecured Debt [Member] | Zenith Freight Lines [Member] | ||||
Debt Instrument, Face Amount | $ 9,000 | |||
Debt Instrument, Number of Annual Payments | 3 | |||
Debt Instrument, Periodic Payment | $ 3,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.62% | |||
Amortization of Debt Discount (Premium) | 76 | 177 | ||
Debt Instrument, Carrying Amount, Current | 2,767 | 2,767 | ||
Real Estate Notes Payable Operated in Retail Segment [Member] | Financed Through Commercial Mortgages [Member] | ||||
Debt Instrument, Collateral Amount | $ 6,026 | $ 6,026 | $ 6,127 | |
Real Estate Notes Payable Operated in Retail Segment [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.73% | 6.73% | ||
Secured Debt, Current | $ 332 | $ 332 | 316 | |
Long-term Debt | 1,983 | 1,983 | 2,218 | |
Real Estate Notes Payable Operated in Logistical Services Segment [Member] | Land and Building [Member] | ||||
Debt Instrument, Collateral Amount | $ 6,203 | $ 6,203 | ||
Real Estate Notes Payable Operated in Logistical Services Segment [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | ||
Secured Debt | $ 1,289 | $ 1,289 | ||
Secured Debt, Current | 262 | 262 | ||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 1,004 | 1,004 | ||
Debt Instrument, Carrying Amount, Current | 4,709 | 4,709 | $ 316 | |
Long-term Debt | 14,836 | 14,836 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 15,000 | 15,000 | ||
Letters of Credit Outstanding, Amount | $ 13,175 | $ 13,175 |
Note 8 - Notes Payable and Ba49
Note 8 - Notes Payable and Bank Credit Facility - Real Estate Notes Payable and Bank Debt (Details) - USD ($) $ in Thousands | Aug. 29, 2015 | Nov. 29, 2014 |
Zenith Note Payable [Member] | ||
Principal Balance | $ 9,000 | |
Unamortized Discount | (388) | |
Long-term Debt | 8,612 | |
Real Estate Notes Payable [Member] | ||
Principal Balance | 3,272 | $ 2,218 |
Long-term Debt | 3,272 | 2,218 |
Transportation Equipment Notes Payable [Member] | ||
Principal Balance | 2,952 | |
Long-term Debt | 2,952 | |
Principal Balance | 15,224 | |
Unamortized Discount | (388) | |
Long-term Debt | 14,836 | |
Principal Balance | (4,709) | (316) |
Unamortized Discount | 233 | |
Net Carrying Amount | (4,476) | (316) |
Principal Balance | 10,515 | 1,902 |
Unamortized Discount | (155) | |
Net Carrying Amount | $ 10,360 | $ 1,902 |
Note 8 - Notes Payable and Ba50
Note 8 - Notes Payable and Bank Credit Facility - Maturities of Notes Payable (Details) $ in Thousands | Aug. 29, 2015USD ($) |
Remainder of fiscal 2015 | $ 420 |
Fiscal 2,016 | 5,688 |
Fiscal 2,017 | 4,330 |
Fiscal 2,018 | 3,855 |
Fiscal 2,019 | 527 |
Fiscal 2,020 | 404 |
Total repayments of principal | $ 15,224 |
Note 9 - Commitments and Cont51
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 29, 2015 | Nov. 29, 2014 | |
Minimum [Member] | Transportation Equipment [Member] | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 2 years | |
Minimum [Member] | ||
Operating Lease, Lease Term | 1 year | |
Renewal Term On Operating Lease | 5 years | |
Lease Guarantees Term | 1 year | |
Maximum [Member] | Transportation Equipment [Member] | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 7 years | |
Maximum [Member] | ||
Operating Lease, Lease Term | 15 years | |
Renewal Term On Operating Lease | 15 years | |
Lease Guarantees Term | 10 years | |
Lease Obligations of Licensee Operators [Member] | ||
Loss Contingency, Estimate of Possible Loss | $ 2,594 | $ 3,164 |
Note 9 - Commitments and Cont52
Note 9 - Commitments and Contingencies - Future Minimum Lease Payments under the Non-Cancelable Operating Leases (Details) $ in Thousands | Aug. 29, 2015USD ($) |
Retail Stores [Member] | |
Remainder of fiscal 2015 | $ 4,631 |
Fiscal 2,016 | 17,528 |
Fiscal 2,017 | 14,793 |
Fiscal 2,018 | 12,282 |
Fiscal 2,019 | 10,389 |
Fiscal 2,020 | 9,103 |
Thereafter | 24,635 |
Total | 93,361 |
Distribution Centers [Member] | |
Remainder of fiscal 2015 | 961 |
Fiscal 2,016 | 3,523 |
Fiscal 2,017 | 3,074 |
Fiscal 2,018 | 1,339 |
Fiscal 2,019 | $ 379 |
Fiscal 2,020 | |
Thereafter | |
Total | $ 9,276 |
Transportation Equipment Leases [Member] | |
Remainder of fiscal 2015 | 669 |
Fiscal 2,016 | 2,429 |
Fiscal 2,017 | 1,709 |
Fiscal 2,018 | 806 |
Fiscal 2,019 | 755 |
Fiscal 2,020 | 671 |
Thereafter | 30 |
Total | 7,069 |
Remainder of fiscal 2015 | 6,261 |
Fiscal 2,016 | 23,480 |
Fiscal 2,017 | 19,576 |
Fiscal 2,018 | 14,427 |
Fiscal 2,019 | 11,523 |
Fiscal 2,020 | 9,774 |
Thereafter | 24,665 |
Total | $ 109,706 |
Note 10 - Post Employment Ben53
Note 10 - Post Employment Benefit Obligations (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 30, 2014 | Aug. 29, 2015 | Nov. 29, 2014 | |
Supplemental Employee Retirement Plan [Member] | |||
Postemployment Benefits Liability | $ 10,323 | $ 10,376 | |
Postemployment Benefits Liability, Noncurrent | 9,599 | 9,652 | |
Unfunded Deferred Compensation Plan [Member] | |||
Postemployment Benefits Liability, Noncurrent | 2,081 | 2,174 | |
Postemployment Benefits Liability, Noncurrent | $ 11,353 | $ 11,498 | |
Change of Estimate of Future Obligation to Former Employee, Effect on Income | $ 124 |
Note 10 - Post Employment Ben54
Note 10 - Post Employment Benefit Obligations - Pension Liability (Details) - USD ($) $ in Thousands | Aug. 29, 2015 | Nov. 29, 2014 |
Supplemental Employee Retirement Plan [Member] | ||
Accrued compensation and benefits | $ 724 | $ 724 |
Postemployment Benefits Liability, Noncurrent | 9,599 | 9,652 |
Total pension liability | 10,323 | 10,376 |
Unfunded Deferred Compensation Plan [Member] | ||
Accrued compensation and benefits | 328 | 328 |
Postemployment Benefits Liability, Noncurrent | 1,753 | 1,846 |
Total pension liability | 2,081 | 2,174 |
Postemployment Benefits Liability, Noncurrent | $ 11,353 | $ 11,498 |
Note 10 - Post Employment Ben55
Note 10 - Post Employment Benefit Obligations - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 29, 2015 | Aug. 30, 2014 | Aug. 29, 2015 | Aug. 30, 2014 | |
Service cost | $ 26 | $ 20 | $ 78 | $ 59 |
Interest cost | 94 | 93 | 281 | 279 |
Amortization of transition obligation | 11 | 10 | 32 | 32 |
Amortization of loss | 49 | 31 | 146 | 92 |
Net periodic pension cost | $ 180 | $ 154 | $ 537 | $ 462 |
Note 10 - Post Employment Ben56
Note 10 - Post Employment Benefit Obligations - Deferred Compensation Arrangement Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 29, 2015 | Aug. 30, 2014 | Aug. 29, 2015 | Aug. 30, 2014 | |
Deferred compensation expense (income) | $ 54 | $ (52) | $ 162 | $ 92 |
Note 11 - Earnings Per Share -
Note 11 - Earnings Per Share - Reconciliation of Basic and Diluted Loss Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 29, 2015 | Aug. 30, 2014 | Aug. 29, 2015 | Aug. 30, 2014 | |
Basic earnings per share | $ 4,266 | $ 2,256 | $ 14,751 | $ 5,650 |
Basic earnings per share (in shares) | 10,816,293 | 10,475,945 | 10,658,416 | 10,596,433 |
Basic earnings per share (in dollars per share) | $ 0.39 | $ 0.22 | $ 1.38 | $ 0.54 |
Options and restricted shares (in shares) | 116,575 | 135,209 | 153,787 | 138,627 |
Diluted earnings per share | $ 4,266 | $ 2,256 | $ 14,751 | $ 5,650 |
Diluted earnings per share (in shares) | 10,932,868 | 10,611,154 | 10,812,203 | 10,735,060 |
Diluted earnings per share (in dollars per share) | $ 0.39 | $ 0.21 | $ 1.36 | $ 0.53 |
Basic earnings per share | $ 4,266 | $ 2,256 | $ 14,751 | $ 5,650 |
Options and restricted shares (in dollars per share) | $ (0.01) | $ (0.02) | $ (0.01) |
Note 11 - Earnings Per Share 58
Note 11 - Earnings Per Share - Antidilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Aug. 29, 2015 | Aug. 30, 2014 | Aug. 29, 2015 | Aug. 30, 2014 | |
Employee Stock Option [Member] | ||||
Antidilutive securities (in shares) | 207,500 | 207,500 | ||
Restricted Stock [Member] | ||||
Antidilutive securities (in shares) | 2,000 | 8,354 | 66,339 | |
Antidilutive securities (in shares) | 2,000 | 207,500 | 8,354 | 273,839 |
Note 12 - Financial Instrumen59
Note 12 - Financial Instruments and Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 29, 2015 | Nov. 29, 2014 | |
Minimum [Member] | ||
Certificates of Deposit Terms | 180 days | |
Interest Rate of Certificates of Deposit | 0.28% | |
Maximum [Member] | ||
Certificates of Deposit Terms | 1 year | |
Interest Rate of Certificates of Deposit | 1.00% | |
Weighted Average [Member] | ||
Certificates of Deposit Terms | 300 days | |
Interest Rate of Certificates of Deposit | 0.42% | |
Short-term Investments | $ 23,125 | $ 23,125 |
Note 13 - Asset Disposition, 60
Note 13 - Asset Disposition, Impairment Charges and Accured Lease Exit Costs, and Income from CDSOA (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Aug. 29, 2015 | Aug. 30, 2014 | Aug. 29, 2015 | Aug. 29, 2015 | Aug. 30, 2014 | Mar. 12, 2015 | |
Sugarland Real Estate [Member] | ||||||
Impairment of Real Estate | $ 182 | |||||
Leasehold Improvements [Member] | ||||||
Asset Impairment Charges | 106 | |||||
Employee Severance [Member] | ||||||
Restructuring Charges | 449 | |||||
Payments for Restructuring | $ 254 | |||||
Restructuring Reserve, Current | $ 195 | $ 195 | 195 | |||
Disposal Group, Including Discontinued Operation, Assets | $ 2,835 | |||||
Gain (Loss) on Contract Termination | (419) | |||||
Asset Impairment Charges | 106 | |||||
Restructuring Charges | 449 | |||||
Income from Continued Dumping and Subsidy Offset Act | $ 1,066 |
Note 13 - Asset Disposition, 61
Note 13 - Asset Disposition, Impairment Charges and Accured Lease Exit Costs, and Income from CDSOA - Activity Related to Our Accrued Lease Exit Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 29, 2015 | Aug. 29, 2015 | |
Balance at November 29, 2014 | $ 433 | |
Provisions associated with Company-owned retail store closures | 419 | |
Payments and other | (185) | |
Balance at August 29, 2015 | 667 | |
Current portion included in other accrued liabilities | $ 402 | |
Long-term portion included in other long-term liabilities | 265 | |
Accrued lease exit costs | $ 433 | $ 667 |
Note 15 - Segment Information62
Note 15 - Segment Information (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended |
Aug. 29, 2015USD ($) | Aug. 29, 2015USD ($) | |
Zenith Freight Lines [Member] | ||
Business Combination, Pro Forma Information Operating Costs of Acquiree Since Acquisition Date, Actual | $ 22,580 | $ 49,517 |
Number of Reportable Segments | 3 |
Note 15 - Segment Information -
Note 15 - Segment Information - Segment Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 29, 2015 | Aug. 30, 2014 | Aug. 29, 2015 | Aug. 30, 2014 | |
Wholesale Segment [Member] | Operating Segments [Member] | Non-cash Change in Accounts Payable Related to Property, Plant, and Equipment [Member] | ||||
Capital expenditures | $ 1,793 | $ 788 | $ 4,138 | $ 4,013 |
Wholesale Segment [Member] | Operating Segments [Member] | ||||
Sales revenues | 62,165 | 56,069 | 187,675 | 163,339 |
Income (loss) from operations | 3,795 | 3,216 | 11,518 | 9,821 |
Depreciation and amortization | 501 | 539 | 1,539 | 1,420 |
Company-owned Retail Stores [Member] | Operating Segments [Member] | Non-cash Change in Accounts Payable Related to Property, Plant, and Equipment [Member] | ||||
Capital expenditures | 1,448 | 2,690 | 5,326 | 11,674 |
Company-owned Retail Stores [Member] | Operating Segments [Member] | ||||
Sales revenues | 62,009 | 53,987 | 183,113 | 154,401 |
Income (loss) from operations | 2,037 | (167) | 3,967 | (2,605) |
Depreciation and amortization | 1,326 | $ 1,451 | 4,024 | $ 4,008 |
Logistical Services [Member] | Operating Segments [Member] | Non-cash Change in Accounts Payable Related to Property, Plant, and Equipment [Member] | ||||
Capital expenditures | 100 | 1,819 | ||
Logistical Services [Member] | Operating Segments [Member] | ||||
Sales revenues | 23,650 | 51,607 | ||
Income (loss) from operations | 1,070 | 2,089 | ||
Depreciation and amortization | 745 | 1,739 | ||
Logistical Services [Member] | Intersegment Eliminations [Member] | ||||
Sales revenues | (9,746) | (22,357) | ||
Furniture and Accessories [Member] | Intersegment Eliminations [Member] | ||||
Sales revenues | (27,067) | $ (24,870) | (84,666) | $ (71,722) |
Intersegment Eliminations [Member] | ||||
Income (loss) from operations | 790 | 350 | 683 | 1,160 |
Non-cash Change in Accounts Payable Related to Property, Plant, and Equipment [Member] | ||||
Capital expenditures | 3,341 | 3,478 | 11,283 | 15,687 |
Sales revenues | 111,011 | 85,186 | 315,372 | 246,018 |
Income (loss) from operations | $ 7,692 | $ 3,399 | 17,283 | $ 8,376 |
Management restructuring costs | (449) | |||
Lease exit costs | (419) | |||
Asset impairment charges | (106) | |||
Depreciation and amortization | $ 2,572 | $ 1,990 | 7,302 | $ 5,428 |
Capital expenditures | $ 11,283 | $ 15,210 |
Note 15 - Segment Information64
Note 15 - Segment Information - Segment Information - Indentifiable Assets (Details) - USD ($) $ in Thousands | Aug. 29, 2015 | Nov. 29, 2014 |
Wholesale Segment [Member] | Operating Segments [Member] | ||
Identifiable Assets | ||
Identifiable assets | $ 137,228 | $ 154,275 |
Company-owned Retail Stores [Member] | Operating Segments [Member] | ||
Identifiable Assets | ||
Identifiable assets | 90,728 | $ 86,471 |
Logistical Services [Member] | Operating Segments [Member] | ||
Identifiable Assets | ||
Identifiable assets | 42,661 | |
Identifiable assets | $ 270,617 | $ 240,746 |