Flexsteel profit up
By Furniture Today Staff -- Furniture Today, February 18, 2008
Dubuque, Iowa — Changes in product mix and better cost controls have continued to help Flexsteel Inds., which reported Thursday that its fiscal second-quarter profit was up 32.6% on essentially flat sales.
The manufacturer and importer posted earnings of $1.9 million or 28 cents per share in the quarter ended Dec. 31 on revenues of $106 million, up 0.3% from the same period a year ago.
Residential furniture sales were up 0.8% in the quarter to $67.5 million. Sales in the recreational vehicle product market were flat at $14.9 million and commercial furniture sales fell 0.7% to $23.6 million, the company said.
Flexsteel said product mix changes and cost controls helped boost its gross profit margin in the latest quarter to 20.8% from 18.7% a year earlier. Selling, general and administrative expenses were higher, however, at 17.8% of sales compared with 16.4% in the 2006 quarter.
For its fiscal first half, sales were flat at $206.9 million but earnings were up 54.7%, to $3.05 million.
Company officials said they expect residential furniture order levels for the rest of this fiscal year to remain flat with the previous year, although industry-wide declines could result in reduced orders.
| Quarter ended 12/31 | 2007 | 2006 | Change |
|---|---|---|---|
| Sales | $105,985,985 | $105,699,659 | 0.3% |
| Operating income | 3,251,357 | 2,447,142 | 32.9% |
| Net income | 1,868,177 | 1,408,657 | 32.6% |
| Earnings per share | 0.28 | 0.21 | 33.3% |
| 6 months ended 12/31 | 2007 | 2006 | Change |
| Sales | $206,886,348 | $207,039,215 | (0.1%) |
| Operating income | 5,451,815 | 3,571,392 | 52.7% |
| Net income | 3,050,827 | 1,971,782 | 54.7% |
| Earnings per share | 0.46 | 0.30 | 53.3% |
