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Flexsteel Industries Reports Q4, Year-End Results

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August 20, 2009 by   Leave a Comment

Flexsteel Industries Inc. Wednesday (Aug. 19) reported results of operations for its fourth quarter and fiscal year ended June 30.

The Dubuque, Iowa-based furniture supplier to the RV industry and other markets reported net sales of $74.6 million compared to the prior year quarter of $100.6 million, a decrease of 25.9%. The company reported net income for the current quarter of $800,000 compared to net income of $300,000 in the prior year quarter.

Net sales for the fiscal year ended June 30 were $324.2 million compared to $405.7 million in the prior fiscal year, a decrease of 20.1%. The company reported a net loss for the current fiscal year of $1.5 million  compared to net income of $4.2 million in the prior year. On a pre-tax basis the reported loss of $2.6 million includes approximately $2.6 million related to facility consolidation and employee separation costs, reflecting near break-even results from continuing operations.

For the quarter ended June 30 net sales to the RV industry were $2.8 million compared to $11.6 million in the prior year quarter, a decrease of 75.9%.

For the fiscal year recreational vehicle net sales were $16.2 million, a decrease of 71.1% from net sales of $56.1 million for the year ended June 30, 2008.

Outlook

In a release, the company stated, “We believe that the consolidation of manufacturing operations and work force reductions that the company completed during the fiscal year have brought production capacity and fixed overhead in line with current and expected demand for our products. Companywide employment has been reduced approximately 30% over the past year through plant closures and work force reductions related to business conditions.

“The recreational vehicle industry continues to be the hardest hit product category with the initial impact of high fuel costs compounded by credit tightening and lack of consumer confidence in the economy as a whole. Recreational vehicle industry published data indicates that motorhome unit sales, the sector that encompasses the majority of our sales, are down nearly 80%. 

“We are not anticipating significant improvements in market conditions at this time, and are managing our business on that basis.”

The company expects current business conditions to persist for the remainder of calendar year 2009.

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