9.7% sales gain lifts Flexsteel to record annual income
Larry Thomas -- Furniture Today, August 15, 2013
DUBUQUE, Iowa — Driven by its residential furnishings business, upholstery and case goods resource Flexsteel Inds. reported record net income of $13.2 million for the fiscal year ended June 30.
Sales for the fiscal year rose 9.7% to $386.2 million. That included residential furniture sales of $311 million - a 13% jump from the previous fiscal year.
Commercial furniture sales totaled $75 million, down from $77 million in the previous year.
The most recent year's net income, which equals $1.80 per share, was slightly ahead of the previous year's $13.1 million or $1.86 per share. The most recent year's per-share figures were lower because the company had approximately 318,000 additional shares outstanding.
Gross margin for the year slipped to 23.4% from 24.2% the previous year. The company said the decline was due largely to increased workers compensation and health insurance expenses.
For the fourth fiscal quarter, sales totaled $102 million, an 8.6% increase from $94 million in the comparable quarter. The company said residential sales rose 10% to $82 million.
Fourth-quarter net income totaled $4.24 million or 57 cents per share. That was down 3.6% form $4.4 million or 61 cents per share in the comparable quarter.
In a statement accompanying the earnings announcement, the company said it believes "moderate top line growth" will continue through the end of the calendar year.
"Residential growth is expected to continue with existing customers and products, and through expanding our product portfolio and customer base," the statement read. "The company expects this growth to be lead by increased demand for upholstered products."