Flexsteel 3Q sales sag 5.7%; earnings off 13.6%
By Furniture Today Staff -- Furniture Today, April 30, 2007
Dubuque, Iowa — Upholstery maker Flexsteel Inds. said sales in its third quarter ended March 31 were 5.7% below the comparable period last year, while net income fell 13.6%.
The company said sales of residential furnishings, its largest business unit, fell 15% during the quarter, while sales of recreational vehicle products declined 8%.
Sales of commercial products, however, were up 25%.
"Consistent with industry-wide trends, the residential and vehicle markets continued soft through the company's third fiscal quarter," Flexsteel said. "The company expects this to continue through the remainder of the 2007 fiscal year."
Sales for the most recent quarter totaled $104.1 million, compared with $110.3 million for the same period a year earlier.
Net income was $1.5 million, or 23 cents per share, compared with $1.8 million, or 27 cents per share, in the comparable period last year.
The most recent quarter included a one-time gain of $392,685 on the sale of vacant land.
For the first nine months of its fiscal year, Flexsteel said sales declined 0.9% to $311.1 million. Nine-month net income, however, rose 7.9% to $3.5 million, or 53 cents per share.
In the nine months ended March 31, residential furnishings sales were $188.2 million, a decline of 5% from the comparable period in the previous year.
Recreational vehicle products sales fell 9% during the same nine-month period, and commercial sales were up 17%.
| Flexsteel Inds. | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 3/31 | 2007 | 2006 | Change |
| (a) Includes a pretax gain on sale of land of $392,685 in the 2007 quarter and nine months. | |||
| Sales | $104,071,451 | $110,345,280 | (5.7%) |
| Operating income | 2,200,243 | 3,142,278 | (30.0%) |
| Net income (a) | 1,521,602 | 1,761,868 | (13.6%) |
| Earnings per share | 0.23 | 0.27 | (14.8%) |
| 9 months ended 3/31 | 2007 | 2006 | Change |
| Sales | $311,110,666 | $314,081,702 | (0.9%) |
| Operating income | 5,771,635 | 5,891,317 | (2.0%) |
| Net income (a) | 3,493,385 | 3,236,438 | 7.9% |
| Earnings per share | 0.53 | 0.49 | 8.2% |
