Flexsteel sales dip 2.6% in 4th qtr.
By Furniture Today Staff -- Furniture Today, August 18, 2003
Dubuque, Iowa — Upholstery maker Flexsteel Inds. said sales in its fourth quarter dipped 2.6% from the prior year's period but were up 4.4% for the fiscal year. Net income for the quarter slipped 4.2% but jumped 46.5% for the year.
Sales for the quarter ended June 30 were $74.9 million, compared to last year's $76.9 million. The period's net income was $2.6 million, versus $2.7 million last year.
Sales for the year were $292 million, compared to $279.7 million the previous year. Net income was $8.3 million, up from $5.7 million in the prior fiscal year.
During the latest quarter, Flexsteel said residential seating sales were $48.5 million, a decrease of 6.5% from the year-ago period. For the year, residential sales were $194 million, nearly flat with the prior year.
Recreational vehicle seating dropped 3.8% to $18.9 million in the fourth quarter, while commercial seating sales were up 39.9% to $7.5 million. For the year, recreational vehicle seating increased 11.4% to $75.6 million, and commercial seating sales were up 20.5% to $22.4 million.
In a conference call, President Bruce Lauritsen said Flexsteel had a very strong first two fiscal quarters but that business seemed "to trail off" at the beginning of calendar year 2003. That, plus bad weather and higher costs for foam, utilities and fuel, contributed to slippage in the fourth quarter, he said.
But the company has noticed in the past two weeks or so that "the heartbeat is a little stronger" at retail, Lauritsen said. That, plus other factors, leads Flexsteel "to feel positive about the rest of the (calendar) year. Not euphoric, but positive.... Our orders are getting a little bigger each day," he said.
| Flexsteel Inds. | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 6/30 | 2003 | 2002 | Change |
| (a) Based on average shares outstanding of 6.4 million in the 2003 periods and 6.2 million in the 2002 periods. (b) Includes a $403,065 pretax gain on the sale of land. | |||
| Sales | $74,916,424 | $76,894,738 | (2.6%) |
| Operating income | 4,637,488 | 4,125,869 | 12.4% |
| Net income | 2,623,189 | 2,737,075 | (4.2%) |
| Earnings per share (a) | 0.41 | 0.44 | (6.8%) |
| Year ended 6/30 | 2003 | 2002 | Change |
| Sales | $291,977,165 | $279,671,402 | 4.4% |
| Operating income | 12,881,211 | 8,129,285 | 58.5% |
| Net income | (b)8,291,277 | 5,659,544 | 46.5% |
| Earnings per share (a) | 1.30 | 0.92 | 41.3% |
