Flexsteel restates earnings for 2004, 2005
By Furniture Today Staff -- Furniture Today, September 8, 2008
DUBUQUE, Iowa — Case goods and upholstery major Flexsteel has restated its earnings for fiscal 2004 and 2005 after discovering a flaw in a subsidiary's accounting of inventory freight costs.
The company also made adjustments to its balance sheets and cash flow statements for those two years, and added $2.29 million to its accounts payable ledger for fiscal 2006 and 2007.
The error, disclosed in a filing with the Securities and Exchange Commission, initially was discovered and corrected in fiscal 2006. However, the company said those changes failed to address the incorrect accounting for inventory freight costs in earlier years.
As a result, Flexsteel's net income for the year ended June 30, 2004, was reduced from $10.13 million or $1.55 per share to $9.83 million or 1.51 per sharer.
For the year ended June 30, 2005, net income was reduced from $6.04 million or 92 cents per share to $4.91 million or 74 cents per share.
The company said its earnings for the years ending June 30, 2006, and June 30, 2007, won't be changed. For fiscal 2006, net income was $4.72 million or 72 cents per share. For fiscal 2007, it was $9.33 million or $1.42 per share.
Flexsteel hasn't reported sales and earnings for its most recent fiscal year, which ended June 30.
