Flexsteel 4Q sales rise 6.2%; earnings dip
By Furniture Today Staff -- Furniture Today, August 27, 2006
Dubuque, Iowa — Flexsteel Inds.' sales rose 6.2% in its fourth quarter to $112.3 million, while earnings dipped 3.8% from the same period a year ago to $1.5 million.
For the year ended June 30, sales rose 4% to $426.4 million and earnings fell 21.9% to $4.7 million.
President and Chief Operating Officer Ron Klosterman told analysts that net earnings were down largely because the upholstery maker and importer recorded about $400,000 after taxes in stock-based compensation this year — because of a new accounting standard — and had some one-time gains in 2005. Excluding all that, operating earnings were about flat, he said.
Sales of residential furniture, Flexsteel's biggest product line, were up 4% in the quarter to $70.4 million, and up 2.2% for the year to $261.9 million.
Klosterman said the company faced challenges in the past year with rising costs, notably in fuel and petrochemical products, and rising interest rates. He said about 35% of sales came from imported products in the latest fiscal year, up six or seven percentage points from fiscal 2005.
"Although this is challenging for our domestic production, it provides us with opportunities that maybe we haven't taken advantage of before," he said. In residential furniture, Flexsteel aims to offer a blended product line of imports and custom-made domestic product.
The company said residential retail sales were "weaker than anticipated" in fiscal 2006 and could remain soft for the rest of this calendar year.
CEO Bruce Lauritsen said the retail climate is still affected by unpredictable fuel prices and geopolitical instability, with consumer confidence "shaky at best." But he added the company is optimistic about its products, particularly the 18-month-old Wrangler Home collection.
"For our fall selling season, we're armed for bear with great products and great values," he said.
| Flexsteel Inds. | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 6/30 | 2006 | 2005 | Change |
| (a) Includes an $809,022 pretax gain on the sale of facilities. | |||
| Sales | $112,325,883 | $105,768,368 | 6.2% |
| Operating income | 2,669,387 | 2,466,278 | 8.2% |
| Net income | 1,481,745 | 1,539,588 | (3.8%) |
| Earnings per share | 0.23 | 0.23 | 0.0% |
| Year ended 6/30 | 2006 | 2005 | Change |
| Sales | $426,407,585 | $410,022,809 | 4.0% |
| Operating income | 8,560,704 | 8,256,692 | 3.7% |
| Net income | 4,718,183 | (a)6,043,956 | (21.9%) |
| Earnings per share | 0.72 | 0.92 | (21.7%) |
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Flexsteel 4Q sales slip 1.6%
Aug 29, 2011 -
Flexsteel 4Q sales fall 12%
Sep 21, 2008 -
Flexsteel posts $4.1M profit
Aug 25, 2010 -
Flexsteel 4Q sales up 2%
Aug 26, 2007 -
Flexsteel 3Q sales up 8.9%
May 9, 2006
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