Flexsteel 2Q sales up 1.2%
Net income falls 69.5%
By Furniture Today Staff -- Furniture Today, February 27, 2006
Dubuque, Iowa — Flexsteel Inds. said sales for its second quarter ended Dec. 31 were up 1.2% from the same period a year earlier, to $106.3 million.
Net income for the quarter was $489,017, down 69.5% from $1.6 million in the same quarter a year ago. The latest quarter included an expense of about $400,000 or 6 cents per share for stock-based compensation.
For the six months ended Dec. 31, sales increased 0.4% to $203.7 million while net income declined 47.4% to $1.5 million. The latest half included the $400,000 expense for stock-based compensation, while the six months ended Dec. 31, 2004, included an after-tax gain of about $400,000 or 6 cents per share on the sale of a former manufacturing facility.
For the quarter, residential furniture sales declined 1.5% from a year earlier to $69.6 million.
In Flexsteel's other business segments, sales to the recreational vehicle market declined 15.8% to $15.9 million and commercial furniture sales increased 34.1% to $20.8 million.
For the six months, residential furniture sales of $127.7 were down 1.5% from a year earlier. Recreational vehicle market sales fell 19.1% to $34.2 million, while commercial sales were up 22.2% to $41.8 million.
The company said residential sales were down because of lower retail demand. In addition, Flexsteel said the industry continues to be impacted by increases in energy costs and raw materials along with competition from imported products.
"The second quarter was dominated by news of unprecedented cost increases for poly-foam and other materials with petrochemical content, which are major components in our seating products, as well as increases or expected increases in other key components such as fabric, steel and plywood," the company said in its earnings report.
| Flexsteel Inds. | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 12/31 | 2005 | 2004 | Change |
| (a) Includes a $400,000 charge for stock-based compensation. (b) Includes a $608,613 pretax gain on the sale of a facility. | |||
| Sales | $106,301,259 | $105,050,826 | 1.2% |
| Operating income | 1,092,510 | 2,730,438 | (60.0%) |
| Net income | (a) 489,017 | (b) 1,604,568 | (69.5%) |
| Earnings per share | 0.07 | 0.24 | (70.8%) |
| 6 months ended 12/31 | 2005 | 2004 | Change |
| Sales | $203,736,422 | $202,906,383 | 0.4% |
| Operating income | 2,749,039 | 4,245,404 | (35.2%) |
| Net income | (a) 1,474,570 | (b) 2,804,710 | (47.4%) |
| Earnings per share | 0.22 | 0.42 | (47.6%) |
