Furniture supplier Flexsteel Industries Inc. today (Aug. 15) reported record net income for its fourth quarter and fiscal year, ended June 30.
The Dubuque, Iowa-based company posted net income of $13.1 million, or $1.86 per share, compared to net income of $10.4 million, or $1.50 per share, in the prior year. Net income for the quarter was $4.4 million, or $0.61 per share, compared to $3.5 million, or $0.50 per share, in the prior year quarter.
Net sales for the fiscal year were $352.1 million compared to $339.4 million in the prior fiscal year, an increase of 4%. Net sales for the quarter increased 12% to $93.9 million compared to the prior year quarter of $84.2 million.
The company said that earnings for the fiscal year improved due to better absorption of fixed costs on the higher sales volume, lower freight costs and a decrease in bad debt expense which were offset by higher legal and professional fees of $2.1 million, primarily related to an Indiana civil lawsuit. The prior year included facility closing costs of $1 million and a $0.6 million inventory write-down related to the facility closing. Net income for the fourth fiscal quarter improved due to better absorption of fixed costs from the increased sales volume.
For the fiscal year, residential sales were $275.4 million compared to $258.1 million for the previous year, an increase of 7%. Commercial sales were $76.7 million for the year, a decrease of 6% from $81.3 million the year prior. For the quarter, residential net sales increased 16% to $74.8 million compared to the prior year quarter of $64.4 million. Commercial net sales were $19.1 million for the quarter compared to $19.8 million in the prior year quarter.
Looking forward, Flexsteel believes that moderate overall top line growth will continue through the end of calendar year 2012 through additions to product offerings and expanding our residential customer base. The company is expecting current order trends for commercial products to continue for the remainder of the calendar year.
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