Flexsteel Sees Record 1Q Income, Sales Higher
Furniture supplier Flexsteel Industries Inc. reported gains in sales and income for the company’s fiscal first quarter, ended Sept. 30.
Sales during the period totaled $91.2 million, representing a 12% increase compared to the prior year first quarter. Residential sales were $72.3 million, an increase of 16% from $62.5 million the previous year, while commercial sales were flat at approximately $19 million.
The Dubuque, Iowa-based company reported record first-quarter net income of $2.9 million, or 40 cents per share, compared to $2.4 million, or 34 cents per share, for the prior year.
Working capital at Sept. 30 was $102.8 million compared to $103.7 million at June 30. Changes in working capital from June 30 to Sept. 30 include a reduction in cash of $7.4 million offset by increases in inventory of $2.9 million and accounts receivable of $2.2 million, and a reduction in current liabilities of $0.9 million. The higher inventory levels support the increases in residential sales volume and expanded product offerings. The accounts receivable increase is primarily due to the timing of collections.
Cash decreased by $7.4 million during the first fiscal quarter of 2013 with net cash used in operating activities of $3.5 million, capital expenditures of $3.0 million and payment of dividends of $1.0 million. The company expects that capital expenditures will be approximately $3.0 million for the remainder of fiscal year 2013.
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