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Flexsteel profit up despite 25.9% sales decline in 4Q

By Larry Thomas -- Furniture Today, August 24, 2009

Dubuque, Iowa — Upholstery and case goods resource Flexsteel Inds. reported a profit of $798,461 for the quarter ended June 30, despite a 25.9% drop in sales.

The quarterly profit, which equals 12 cents per share, was more than double the profit reported in the same quarter last year, when the Flexsteel made $336,047 or 5 cents per share.

Sales for the period — the final quarter of Flexsteel's fiscal year — totaled $74.6 million, down from $100.6 million in the comparable quarter in 2008. The company said sales were weak across all three of its business segments, but said its recreational vehicle seating business has been hit the hardest by the recession.

Sales in that segment plunged more than 75% to just $2.8 million in the quarter.

Flexsteel's largest segment, residential furniture, had sales of $66.9 million, a drop of 14.8% from the same quarter last year. Commercial furniture sales fell 33% to $14.8 million.

For the fiscal year ended June 30, companywide sales were $324.2 million, a 20.1% drop from $405.7 million the previous fiscal year. Residential furniture sales were off 10.6% to $230.7 million for the year, while commercial furniture sales fell 15.6% to $77.2 million.

Recreational vehicle seating sales for the fiscal year were $16.2 million, a drop of 71.1% from the previous fiscal year.

Flexsteel recorded a net loss for the year of $1.5 million or 23 cents per share. The loss included $2.5 million in one-time restructuring charges, and the company said that on a pre-tax basis, it had near break-even results from continuing operations.

In the previous fiscal year, the company had net income of $4.2 million or 64 cents per share.

"We believe that the consolidation of manufacturing operations and work force reductions completed during the fiscal year has brought production capacity in line with current and expected demand for our products," the company said in a statement, noting that employment was slashed by 30% during the year.

The company said it believes current business conditions will persist for the remainder of the calendar year.

Flexsteel Inds.
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.

Quarter ended 6/30	2009	2008	Change
(a) Includes facility consolidation and other charges of $173,576 in the 2009 quarter and $2.5 million in the 2009 year.
Sales	$74,564,239	$100,630,109	(25.9%)
Operating income	1,470,059	611,235	140.5%
Net income (a)	798,461	336,047	137.6%
Earnings per share	0.12	0.05	140.0%
Year ended 6/30	2009	2008	Change
Sales	$324,157,556	$405,654,829	(20.1%)
Operating income	283,131	7,595,948	(96.3%)
Net income (a)	(1,509,344)	4,236,405	—
Earnings per share	(0.23)	0.64	—

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Flexsteel posts profit despite 25.9% sales decline

Aug 20, 2009

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