Flexsteel's profits climb 26.1% in quarter to $4.4 million
Larry Thomas -- Furniture Today, August 15, 2012
DUBUQUE, Iowa — Buoyed by an uptick in residential furniture sales, Flexsteel Inds. reported record profits for the fiscal fourth quarter and fiscal year ended June 30.
The upholstery and case goods resource said its bottom line also was aided by lower freight costs and a decrease in bad debt expense.
Net income for the fiscal fourth quarter was $4.4 million or 61 cents per share. That's an increase of 26.1% from $3.5 million or 50 cents per share in the same quarter last year.
For the fiscal year, net income totaled $13.1 million or $1.86 per share. That's up 28.8% from $10.4 million or $1.50 per share the previous fiscal year.
Net sales for the fiscal fourth quarter rose 11.6% to $93.9 million. That figure included residential furniture sales of $74.8 million, a 16% jump from last year's fourth quarter.
For the fiscal year, sales rose 3.7% to $352.1 million. Residential furniture sales totaled $275.4 million, up 7%.
In a statement announcing its financial results, Flexsteel said it expects moderate top-line growth through the remainder of the 2012 calendar year. The company said management's "optimism is guarded" because of uncertainty regarding what effects the upcoming elections and economic factors will have on the consumers' confidence and willingness to buy.
Flexsteel said it expects the growth to come from product introductions and an expansion of its residential customer base.
"The company remains committed to its core strategies, which include offering a wide range of quality products and price points to the residential and commercial markets, combined with a conservative approach to business," the statement said.