Bassett Furniture Industries (BSET) 11 Jul 242024 Q2 Earnings call transcript

Hello, and thank you for standing by, and welcome to Bassett Furniture Industries Q2 2024 Earnings Call. [Operator Instructions] I would now like to turn the call over to Mike Daniel, CFO of Bassett Furniture. Sir, you may begin.

Thank you, Tawanda, and welcome to Bassett Furniture's earnings call for the second quarter ended June 1, 2024.

Joining me today is our Chairman and Chief Executive Officer, Rob Spilman, Jr. We issued our news release yesterday after the market closed, and it's available on our website.

year's reporting an a of additional efficient compared the our we look important information updated today's announced to provides offering in including believe and prior plan about have our format to the fresh with that metrics conference business, We call quarter. We're restructuring provide we second easy release. comparison the

a the open after session will Q&A call for remarks. We our

hours quarterly Investor of post the transcript the site In this within our will welcome we XX you, call. addition, enhance will we we process this call of feedback. believe results We how on and your help share with our

During safe Act Reform such accuracy nor Securities to involve any provision of differ These view. are guarantee from make we of risk any management's made obligation XXXX. materially and does statements forecast pursuant the and the today's uncertainties the cause certain Private cannot inherently estimate, statements. to or forward-looking undertake that statements of results may present company Litigation be call, harbor to it could considered actual forward-looking The update

For risks on XX-K, with are the cautionary see year notes, more corporate Other fiscal XXXX. November available related describing website. Form to ended our XX, our the for on annual company's SEC information, filings including the important report please business

Rob? Now, I'll turn it over comments about to second quarter. Rob our for

everyone, quarter. exerted rates, remain Good thank for today. Elevated you morning, mortgage relatively Mike. and furniture in prices, high inflationary the and on currently Thank industry tension the macroeconomic home you, pressure persistent. joining us general continued The second

homes, spending is higher associated level during was are down, areas more own what housing and Texas. the where customer our costs. our sales were due with business fixed stronger they specifically across that both of a on their Wholesale COVID. Revenue to hotter, our the Geographically, Retail pressure in on to reversal retail than southeast experiences in saw and greater segments from know are many we in also from We data

pleased $X.X XX.X% strong the in gross charges that valuation were year's margin compared with the additional at levied, we coming in last to the Excluding consolidated XX.X%. in recorded million inventory second quarter that we we

sell-off Although by run million end ] in expected velocity. even elected XXXX, the we leaner this course over not items to sales discontinued the we the we fiscal of product couple on our XX% quarters. dropped the reserves that or since productively of inventories the believe quarter record [ assortment of an of elements our certain future $XX.X generating are Accordingly, have in anticipation can business higher more of because of next

holiday comprise even up big sales, average year. In events Our the last of that Design down retail I the was environment more retail discussed ticket makeover year. earlier, slightly projects weight. from XX% from economic $X,XXX, last X% current carry total sales

We are messaging key ongoing engagement total. Additions our business Memorial Memorial our to to promotion leather category Custom promotional our to designed consumer for that stronger product program catalog, areas over home. of last the sales with introduced Dining breakfast holiday re-entered of addition Day recently Day written product True the the we during notable optimizations, pleased and X-week year's Origins the dining of new kitchen everyday program. success the as was the Upholstery event or drive website period. Particularly the slightly online successfully proved exceeded selling Also, drove

at about High April the On in Furniture Wholesale side, show X reasons. we our were showing Point the excited for

International area second, outreach design True Center. showroom debut Studio the inner of reported that First, year. In Market Upholstery over we yield the next results effective spotlighting our we concept located and in yesterday, We executing our firms, interior program. And are restructuring this the expect designers Design XXX that Custom interior community well we contact the we pleased a design through to Bassett into were made immediately. will strategic selling with our hall of news strategy the and our space release

lines. Number U.S. working inevitable are by expand current locations, the a capital capital Number the positioning business of profitability. There locations points our corporate Noa inventory This operation. Number to down capabilities, consumer optimize from we cost retail the overall our the setting three, close going to our location purchases four, small our in into While out distribution revenue of structure supported the five, and organic e-commerce number in through a stores business. We makes key locations. And our one, designed furniture model omnichannel X depths America manufacturing wood to dedicated that refurbishment rebound unproductive quick consultants, customization branded and home. trained growth satellite the design improve invest of capabilities period organization owned and Bassett and unique are we custom plan believe industry, to drop drive leveraging X two, and to Home is enhanced customer drive X footprint. Number company the plan. network of people the for made through our grow we of and most for us acquisition. licensed technology industry. in With response our rationalize primary are and table the manufacturing for highly for retail our our and get and are in

further locations. markets targeted new are store we investments plan not locations, of year. refurbishment do any for Although Capital this existing exploring openings for are we X corporate

format is industry Design interior their to Our about clients, this upholstery. custom True excited than more to the to now new Custom well fabric are introduced Upholstery offer design a our better frame refer long as the offering and solutions earlier approach one in personalized showcasing serve proven offering on to community we Bassett and Studio year. Many suited the

we what are to quarter for signed new X,XXX off represents through we first upholstery a length, options, the face to custom locations. retailers, et concept XX fabric frame in report, furniture cetera. multiple truly had and a foot is, April, back program XX. independent options, Designed in up Custom True of And start. Recall cushion our styles, square is Our great choice really better and May, arm, leather

response For for, They're displays, the fixtures and us margins with that a a is that inventory. in and happy the feedback. received setup giving Bassett quick they they customers positive very fact are lower can modest recognized investment and carry our

wood efficiently dealers charge This second the fold providing We have furniture that in XX and footprint. quarter. end by of are our we are in toward of year for believe goal amount XXX manufacturing more is we reconfiguring underway to Because the least the action manufacture domestic and are a resulted locations. we million cost-effectively, targeting $X.X our currently wood at U.S.-made we ultimate can of same

our structure. to cost is goal Our lower

the retail in consolidation during our the completed of phase that warehouses of have We X initial resulted warehouse the closing quarter.

distribution decision they to that charge close headquartered center with to the the generate XXXX, We billion out will operations also e-commerce to the U.S. third U.K. an of in Singapore, to Noa needed retailer working not end the the result Canada a $X made be Despite major the of Canada, to Home, in third quarter the mid-price and capital plan furniture significant growth. in savings starting in were providing sales able in was taken quarter. We the with Noa consistently up result at in that additional wholesale of and move could

of additional year. and their to have operation we fiscal end wind did operation made As interest the that down of best not a the the by the was feel Bassett's decision result, funding in

Our in shareholders outlined, capital like to and business, repurchase. allocation our those deliver focus to remains and dividends strategy on share investments returns I've through

confidence dividend. approved quarterly XX% We're proud We of our also increase our in in increase and Board announced our sign this potential Directors on of Tuesday cash an that dividend, growth and the a Bassett to flow. is

has plan inflation. believe position backed a long cycles and by company our restructuring cash and operating will XXX strengthen revenue, years of and economic reduce Our our strong weathering housing history, consistent that dividend from to costs, grow We counting, financial margins.

be the expect our we reset half for plan, back a will this implement we of business. XXXX As

We that returns. and will deliver increase shareholder and consumer improve will us to market allow competitive long-term are our share that advantages optimistic unique demand

to more on Now, I'll over financials. turn things our for Mike details

reserves lease the of charges loss stores of with wind consolidation. $X.X associated asset and Noa decreased Consolidated unusual be that margins comparable commentary, XX.X% operating for shortly, a consolidated to million the compared XX.X%. unusual to second the $X.X XXXX in of XXXX due year million Adjusted the additional were my plan expenses I'll second noted. Total XX%. inventory In significant quarter discuss margins to and $XX.X gross and quarter operating Rob. will consolidated several I had XX.X%. We gross profit were at second discuss XXXX. Included the quarter to fiscal the Wholesale million were the otherwise versus unless versus compared Inc. and of of additional more charges for charges of course $X.X couple Rob with $XXX,XXX inventory $X.X impairment retail improvements previously assets both asset valuation valuation of operations. And domestic quarters. product enumerated, of associated of associated $XXX,XXX store operations with of discontinued inventory of and charges the and asset impairment tenant Retail valuation of the consolidation prior of Home anticipation down comparisons over the million quarter finally, as revenues inventory for XX.X% impairment will or million of of the next $XXX,XXX underperforming charges use in current restructuring and of fiscal warehouse Thanks, million charges of the the including $X.X wood manufacturing in the our our sell-off right of

a starting and the XXXX. As annual $X.X result between the savings plan $X.X and realize cost of charges taken, with fiscal million to expect restructuring of we million

shipments. Gross Net the the decrease increase due our shipments open business. the due Club period, decrease to our year basis improvement prior sales from a I provide or by network, the store Now, XXX Level prior expected margins market, partially $X.X Lane a operations. year, will regarding leather to increased primarily to XX% in in primarily offset Venture over million, in Wholesale in points XX%, X% shipments the retail to information decreased a XX%

and majority in on being receipts. freight extended at just the with furnishings. Also, due line product home of of weakening received times, second higher As with lead significantly ocean inventory this amounts associated product the than internationally are received market during demand the XXXX, sourced product quarters downturn realized we costs was is currently as to third the were the significant product of we costs current

efficiency partially in decreases In favorable increases of from of fixed charges upholstery the decreased we due reduced increased claims. wood sales. for of reserve leverage deleverage percentage primarily in to costs and adjustment addition, operations previously inefficiencies labor by handling valuation margins lower a sales These diligence returns additional in of and were inventory to XXX improved sales and our due costs $X.X domestic the due discussed as volumes. SG&A offset due a gross fixed million points, and to basis warranty and realized to

decreased prior sales margin value but the million net flat Now operations, quarter of period. of Written orders the or sales XX% year $XX.X goods X.X% sales, from from were period was moving declined with Gross lower our the delivered, clearance XXXX. the higher on to on on because margins inline by margins Retail store prior second goods. taken offset not

of strategy previously inventory had in increased selling of due goods of costs primarily valuation sales more be levels. SG&A we $XXX,XXX as points, decreased fixed volumes. lower to addition, better sales charges basis from aggressive inventory to to leverage due control percentage In increased to XXX again, the discussed expenses a clearance

Noa that we will we the down Inc. be operations discussed, Rob of have announced winding As Home

valuation name of and off sell-through the the recorded intangible recorded $X.X a to $XXX,XXX inventory. charge million to write an inventory trade for As asset we previously prepare of for orderly of part the reserves that,

all to $X.X turn generated We quarter balance capital capital with ended million cash for of million our allocation. We expenditures, sheet the funding dividends, short-term of and the operating and let's and in repurchases share the cash, investments. Finally, $XX.X quarter.

current have our state capital of cut for the we business, prior plans back Given expenditures.

million to an remodels. with of on over million plan $X spend half back limited we the that majority the additional retail store of year, $X spending to Now the

opportunistically will to also continue shares We the share as buyback price warrants.

remains the storm our sales to while growth. for the current Our platform financial economic weather executing solid plans and with us provides condition generating

Tawanda, questions. so. provide Now we instructions to for do please open up will the line

Instructions] Sidoti. with first [Operator of Lebiedzinski comes a Anthony Our question line from

quick given maintaining state the job of a just sheet, First, comment. a strong business Nice nowadays. balance certainly

then of of just we the of what's out how So the the expected I timeline kind like, guess should components If through kind us restructuring the as low-hanging components plan, kind first, at fruit we and impact? think when we of And the timing restructuring the parse maybe the could of, the different plan, about walk to the benefits? first? look

fill Why don't crack I Mike, the it, blanks. a and take at you in

it. Got Yes.

go and Anthony, let's the from said, start we we'll Well, as up. bottom -- and

So the we intangible sheet. mentioned, number And as the five was Noa balance Home on the Mike business. just goodwill had

be hit. inventory And over we've that taken reserve of remaining the for the the down so will course also, some year. that And winding

that's numbers. those but amount baked the a don't over the number. live material small we some So place there, all that's think a takes be reported folks checked into that of that We And Canada. we There third -- severance really primarily so. will quarter, in with employees of think we had

had govern the Canada of to, adhere the to that of course, we've to operation. So in set regard laws closing

So anyway, the most point. for is that's of part, done most the

North as and to architectural North of and Concord, of refurbishment capital is undergoing Mike that is drawings worked speak. this refurbishment we course, soon -- invest a our as the up get We're store our the store mentioned refurbishment, as Moving number that out. structure and And Carolina cost some four plan overall take Delaware actually Greensboro, underway. Wilmington, into we we as we again Carolina to

In macro number. again, a structure, of terms material severance would but be of it's our just costs with at be, we're that, look There I overall don't could what it some think doing. kind involved cost a potentially

that that's be half back again, taken inventory, the So hopefully over up ongoing. The of but we've the dispositioned been well. kind year, front will as of basically

but So event. end or of concerned. quarter the attempting California operation the is of are there third that and have four, that's if it's sublease if do to be will $X one, it you or operation Again, number million could in consolidation -- and to charge to sure in the of have up in far that we this are number four successful number the the mentioned that we we that, out this we wood also as into the we program we not have in be announced. I baked quarter. warehousing out already I'm think as in say, there We we by could any third plan of a as

probably for significant year. that's of on restructuring most the the So that thing the remains rest the

plan to this year material a I but that really is we correct items mentioned end, there's charge. me, warehouse you all which the So Mike can this and consummate by severance not all in looming these

Now, am out leaving that? anything I on

like that. And to the No. that during furniture to together theoretically the cost third And do hopefully some and plants, again, and baked quarter But goal $X.X XXXX, here involved $X.X the have will we'll Anthony, all is some have expect in getting of still inefficiencies I XXXX fourth in quarter. consolidation savings certainly, million think the for But be in. realize wood have million some, to clean we with XXXX. that the on the we'll

second And to at XX.X%. the could write then very believe inventory were strong, back we I we if came quarter if I guess gross in or down to just the exclude margin charge, so, go a

margin is? So of gross that to think type do sustainable what you attribute you do and that that how

retail job. On good side, the very we're doing a

that of pricing have I for worked regard, some we in that of time. that part it part is -- on think

for trivial, and is been was table. a wrong A nothing disciplined there's match with exactly but of Mike we've because out domestic hard kind mentioned So only table I and gone worked claims great store It of a reserve. say that. the that Also, with manufacturing returns in a how of We beautiful our and would the us, table perception, company-wide it's furniture, solid which on a effort, And control would guys last say, that we the is big lot so came consumers approach have they can't remarks and -- X somewhat from retail, down we then it, tree, sounds lot this in really didn't of perception more months. the issue about and a a thing the also that. really job made we his the a would and wood, well, not from but a there. I on our would inside sometimes say God had done see who've and warranty

had think we of that's driver margin. go as can the on We how and been to we be where gross know we a move has Club through has want higher Level the are of we as piece mentioned that it's much we year that And inventory. And half is we issues inventory think that that the XXXX, it. Also, the But we sustainable. itself yes, don't in retail a in back competitive last than do because well. So big marketplace sustainable. we righted

you the products majority but are some And import domestically, then so Level. vast of like Club your do obviously, products made -- the

You also import some components.

heard talking ocean higher freight about companies we Now, costs. from have some

Some have you that? charges. should on about freight Can we comment put How think in that?

So we rates, have contracted course, folks like do. most container of

that containers a the get And there's been contracted it's will week-to-week adverse so we kind with some at of us, far things no the weeks our, effect. rate so need

Some we're rates the And excuse games all me, up. have companies definitely not. And on definitely, are spot the shipping again. the gone have rates weeks playing this

course, some Canal Suez cetera. We're looking the Of at hard macro are a very big some with factors there et surcharge.

can't not have discussing that yet. which contracted one these speak. we've -- rate, at as seen they yes, certain you And get, can't We if we at But times. enacted always rates they're get the triple -- you we're

about day an of There and that, of day most all issue. call a But that. is lot of the think in, people on factors know the So it's kind I it all out. are behind probably

year, we about it was modeling the would real know about of back might Anthony, gross for you mix I the I questions. a to remember reserves, me reserves jump through. Rob up in slightly brings of X to quick you're took sell say we're margin, if because that on, asking Hey, things will. let on The we on half of the trying what talking have the lower the what only because margins

there a margins. less the basis be in or the And Rob's lower could back So bit then little referring margins that of XXXX, be, half the a back again, we go-forward to year, to. on should

I on And to it pass my question last before others.

So given this? Upholstery, your do better on to to focus advertising your True change highlight plan Custom messaging you

these on about this seeing upholstery. new custom tired make about website. but mind, like custom did we feel and we We red True sofa, been is you're on upholstery. fabric on a respond really this the This feature our lot, of inch and that's mind, this Custom the bases talk and -- actually and don't a not. a They'll a all got in put term talk have backs we a sofa custom really, for this. in And us. fabric Well, the things frankly, We doing they when call upholstery they'll that ] the [ because, and to As different people cushions blue it sales our good. is by of people and when

that will yes, what today. into versus custom really overworked term I the overt industry think, upholstery see we leverage more that comprises on the in upholstery true thinking we custom messaging

Bugatch question Budd from Water line Tower the Our comes with next of Research.

your a Custom time and to me seen questions. And a sheet for right. its its remember I and business True seeing remarkable balance really some and want go it's and you going a I commitment industry and think comment. time, dividend. ask you've charges needed to it stronger time, take the my and you're same long shareholders. And about a I'm come this don't at in I confidence with also been not to raise also shows pleasant that forthrightly time And address let doing because company I've where to into just the a a of up a and That's tremendous

get that different you have got look? market it in the You have -- program additional. pipeline -- XX new upholstery since at How's custom significantly you've you really And your make features than think unique the others. you XX. said I you And some dealers and different XX want market, to XX and said

best-in-class gotten down delivery, really fixturing that of in end. we and characterize are thing, a about Well, thing a of furniture We that our we're I guys of we want purchase and it inexpensive out said and done feel options, and but our we've about and ourselves, to way too these now to year the And release, and some we big of is programs, the little which material trickles the it's like of our the this good sales kind representatives. this take of because for our these that management don't all make that we getting number things field that And make the got thing this, thing ahead last speed a our the an trickle we've of And the but science, included the program. we to this California. in breadth all technology in I by sounds faster say past retailer When when fixtures. one the XX the week in that, can guys in mean actually to the point advantage furniture this. energized provide, than but get fixture far all the of then of where guys, the

the our there, all representative sets the it inventorying stuff. so now then that And And goes the all arrives and on salesforce. palletizing the all in truck. up, furniture and support same material We're we're of trains this

And really take our in our you this internally a as best to the a tough been a have and word. it's thing. this for team great with rallying whole cry so -- time, it's exciting spread And program kickoff use to

of are And installed And them XX, be are the will done? if them, they of when not, already? all of some

and up -- yes, say, yes. I majority would this, the the those yes. say would guys I of and should And... running, but Yes, know are I

of sales? Any terms in early results delta

kind that our of bigger that going it thing And has the also design works. a This of been it's good Monday, as and well. on. our because good this have and get in on we we the in epicenter yes, really about gallery report thing program, That's a, centers every then for Well, stores results. our years,

yes, is, getting So good results. we're this

would mean, in retail been this have a retailer. program the for been brainer I when I a business, that no would was have a

I whenever was to So sales, my it could capital use a idea. good always do your

we For we it where the to I've retail how starting change retail second than Are what in the -- up the I Memorial sequentially quarter. see start the positive bad that to we know and important see change several significantly orders and that maybe orders would said last the did during on last deliveries. a in backlog are period, is an the Day in quarters, noticed at progress at less Are point month? was so you but were quarter? you month the have some impact, seeing now

-- Let Mike try would this. to X of a through walk stab of one that at I you kind us thing say it. can take and

think took million. while. I huge, the got and I mean, mean, now definitely backlog I to backlog $XXX a the $XX it -- was million. well, up it's

end fiscal way was So but big up the just it this, holiday think the the he the I XXXX the quarters one J.D. set Bassett thing in don't contemplating year, on happens, that weekends.

so at first the ends Labor the ends Memorial And at ends and third quarter at Day, President's Day, second Day. quarter quarter the

a periods. And you And those Mike through the a big that. so boost we get are can walk selling because of kind

X%, is, in for were thing the do sales think, one our kind I quarter. the down say retail picture, to big think, though, I I want X.X%, of

was down XX%. top-line our So

to starting hit we're So finally here. bottom

last period. this, good it say say, was for a Day, in X will I can I X-week we remarks, Memorial as we mentioned Now, last this, X, July versus I And this the I number. my event. up was The if obviously to can want year off say July But Jay? were and versus year, spring

environment -- in tentpole at than outside kind So significance have for the past, of had least us. are in these they've this events

Mike, got... So you've

and pretty selling to you yes, last you were tag of since XX since QX XXXX, of down see along quarter, down retail our it's QX that million. consistent backlog. 'XX, through here, million. the of was year, to And backlog then. can Yes, $XX comparing that to And At still to been it back was we you're compared go if $XX QX next

saying that's feels hit it we've the bottom. think So I a of way like

were selling for said, down backlog. really were through the we we but As quarter, the because X.X% written we down XX%

That's from in the way you the the queue. math disclosed stuff the works

the next the looks bouncing in now question for what quarters. My think. that I is statement. it the income last you've because So shrunk that's couple like on here along time bottom the this I mean, math you're point at of delta

terms tax, XX%. And that. In GAAP you is the tax yield know of the I respect report and

adjust. don't different inventory particular valuation significant inventory you period in think parse may items consequences You The got write-downs. the we've kind asset items and are? what those tax But valuation, charge, X Can treatments. this that additional tax of have I of out the

Yes, and I'll Rob. take this one,

Good.

things. X So

million X first the associated $X.X me with Let say take $XXX,XXX, benefit the Noa, charges the and I no tax on that.

in inventory other charges. in the and So that's terms there's the on restructuring tax the other, just baked into no difference the consider. It's treatment the the really rate. Then thing to first of year-end charges

in given all just would things with your fashion. in -- a loss, being expect, we where are our permanent that out blended It work and XX%, XX% you rate. Now, doesn't differences what normal

I answers that question, but. know your if don't So

into between And certainly XX% is a XX% federal the it alignment. assuming math state Well, then better brings kinds XX%, the and items. the of and discrete balance other

Correct.

mid And it still works XXs kind XXs what Is of range? it out? so where -- low about with the what losses, be or would that in is that

It's in loss losses actual we Noa. section. corporate generated give You other have out to back by Noa, buried the which the don't and with associated you the

you by Noa. the So we can't the don't math do loss really give that's because you generated the actual numbers of

million come of take it $X.X the gets equation, we the kind out tax somewhat But take percentages alignment. more and that if into of to the

the... Of Okay?

you'd losses Right. the charges back from outside have then also taken. out Noa But of to the

can on a time. in we take and stab get that we'll it commentary see Well, at point that what at we'll

do On that quarter quarter the over to see you Does the ratably in come in the year? you or benefit come $X.X same year? ] 'XX year of that fiscal that at [ next the does level, build during see $X.X in by it million million,

that is would day of Xst calendar first idea the year. our or the is the which be of starting Well, XXXX December, it fiscal

quarter. So first with really, starting the

And about a residual to didn't domestically other with but in that, Noa up to that know from Rob, couple sales learnings might even terms in I of want just you there or. you can that live somehow in is hopefully glean any there Noa e-comm? Canada of expectations, were quickies. or some And chat there

that's a thing pure is Good put -- a learned we business, furniture We bit. that quite is and new question. that in e-commerce year. tough website for last we at Bassett One a damn about play Then, and talked sure.

are We shoots good. couple that's We that. helped experience we but Noa a a to effort. starting results. We're back think green And he likely us bit see dating we're to anywhere remain some a on a have has sure, and for side, on and where better of we e-commerce mix. before with e-commerce for And the one period of Noa. of is the that. have be platform the not and time, of quite folks in And navigation some all near that to want much nice seeing And

they and in benefit. And but ongoing up a potentially, know, furniture we've sell. sold yes, than perspective, there we see brand also, some decided, did from more and explored have So that don't and I we we Canada haven't

sheet Maybe, forward the cash continuing more on really up go we and and as at mothership, requiring the with entry there? an Noa did now, see site we contributions the Bassett product level we're could balance from in they that level. not offering So but were focused value with a

So happen the we're regard. talking in about could in future still what that

more the on margin showed, a $X.X charge million gross the that million you detailed. I a the just cash statement valuation few between inventory said, inventory income I as flow What As and There's difference affected to think, the difference? additional for that are accounts in These $X.X more. the showing that valuation.

reconcile we gross charge of that where into about $X.X we release, year. provide was the didn't that so the year. charge saw versus was. to quarter saved last referring number so we reserve. $X.X you put But in run And $XXX for year it, normally every that least, $X,XXX,XXX. $XXX,XXX a what And million $X.X XXX it, to, you talk $X you a you're last regular can And you back we the at that a month, $X,XXX,XXX years but that's it's Well, compare we to didn't $X we that kind million charge press adjusted charge kind charge take But million, shows normal of give delta talk million another about roughly what didn't that quarter extra how we table the a did million that's an margin within a our or stuff and rate. in last both that's

I think additional normally to Yes, have we don't see At and look. reserve I charge. go back that least

of seen we wouldn't the out. And just the it to, quarterly to you magnitude our because On it called inventory, basis, ongoing in we an do addition inventory. guess, have what was normal in did we I charge that that

Yes.

you're year. right, yes, But we broke in out. think that's I of normally -- that at break the end the don't we it out year last XX-K

at I make We're way it. for When that? know That's process other the would they last sites, you see in you but looking is, talk other would retail. you'll on to decision nothing think markets And and about yes. the talked what me some the for for and the decision? -- when about a that you're Rob, are made be this I exciting quarters, you a might be can little bit do the year, is call

It time these making on a sites. that is. in to at actual to, got what surmise you we've things days the cases, these in some mean, timetable set happen be I would travel next and these happen would XXXX depending make the long far would some I goes. as the to decision, I look make that that takes July in But be as something think in we XX would decisions situation the once

in I'm the remarks. and back like gentlemen, closing queue. would I Spilman the further for showing no now Ladies to call turn questions to

up it your we interest in All by the Well, wrap righty. appreciate like just saying Bassett questions. and I'd to

as of is remain our was shareholder we restructuring underway, long charges. And plan on our that of got the Board value. earlier, restructuring economic And of operator. the indication time, quarter decisions operation. on right continue service leader. increase we've additional customer furnishings and quarterly remains for efficient more our basis leaner, making to dividend the delivering a the approved in challenging. that that a with confident Third Directors Tuesday for But your XX% further an the through focus We're a Thank you thank and you, to provide for we can is industry and environment our home history exceptional cycles said weathering

concludes you and participation. your call. Ladies welcome. Thank gentlemen, You're today's conference for this

disconnect. You now may