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Flexsteel revenues jump 44.6% in 4Q

By Furniture Today Staff -- Furniture Today, August 29, 2004

Dubuque, Iowa — Upholstery manufacturer and case goods importer Flexsteel said sales in its fourth fiscal quarter jumped 44.6% to $108.3 million, up from $74.9 million in the comparable 2003 quarter.

Net income for the quarter ended June 30 increased 3.3% to $2.7 million from $2.6 million last year.

The results include DMI Furniture from its Sept. 18, 2003 acquisition.

For the year, Flexsteel sales soared 37.4% to $401.2 million. Last year, its sales were $292 million. Annual profits rose $10.1 million, an increase of 22.2% over last year's $8.3 million.

Income a year ago included a $403,065 pretax gain on the sale of land.

Quarterly sales in Flexsteel's residential segment rocketed 50.3% to $72.9 million, $23.2 million of which were attributed to DMI. Recreational vehicle sales were up 22%, and commercial sales jumped 64.2%. Flexsteel said commercial net sales included $6.3 million in sales from DMI.

For the year ended June 30, 2004, residential sales were $266.3 million, up 37.3% over last year's results. Sales included $67.9 million from DMI. Recreational vehicle sales increased 13% to $85.4 million, and commercial sales more than doubled to $49.5 million. DMI accounted for $24.6 million of commercial net sales.

Gross margin percentages slipped slightly in the 2004 periods. The gross margin percentage in the 2004 quarter was 20.2%, compared with 23.3% a year ago. For the full year, gross margin percentage was 20.7%, measured against 22.4% last year.

Selling, general and administrative expenses accounted for 15.9% of sales in the fourth quarter compared with 17.1% in last year's final quarter. In 2004, annual SG&A as a percentage of sales was 16.6%, measured against 18% for the 2003 fiscal year.

Flexsteel said capital expenditures, excluding the acquisition of DMI, were $6 million this year and $5.1 million last year. Next year's projected capital spending is $5 million; the company plans to spend it on manufacturing and delivery equipment.

Flexsteel Inds.
Earnings per share are fully diluted.
Quarter ended 6/30	2004	2003	Change
(a) Includes a $403,065 pretax gain on the sale of land.
Sales	$108,298,046	$74,916,424	44.6%
Operating income	4,670,404	4,637,488	0.7%
Net income	2,709,979	2,623,189	3.3%
Earnings per share	0.41	0.41	0.0%
Year ended 6/30	2004	2003	Change
Sales	$401,221,510	$291,977,165	37.4%
Operating income	16,602,209	12,881,211	28.9%
Net income	10,130,257	(a)8,291,277	22.2%
Earnings per share	1.55	1.30	19.2%

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Flexsteel 2Q sales jump 48.3%

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