Flexsteel Reports Rise in 3Q Sales, Profits Dip
Flexsteel Industries Inc. today reported an increase in sales for its fiscal third quarter, ended March 31, on a slight drop in earnings.
The Dubuque, Iowa-based furniture maker said net income fell to $3.1 million, or 42 cents per share, during the quarter compared to $3.3 million, or 48 cents per share the previous year. Sales totaled $98.4 million, a 7.3% increase over prior year quarter net sales of $91.6 million. Residential net sales were $79.9 million in the current quarter, an increase of 12.3% from the prior year quarter of $71.2 million reflecting an improved demand for upholstered products. Commercial net sales were $18.4 million in the current year quarter compared to $20.4 million in the prior year quarter, a decrease of 9.9%.
Gross margin for the quarter ended March 31, 2013 was 23.2% compared to 24.1% in the prior year quarter. The percentage change in gross margin is primarily due to changes in product and customer mix, and to a lesser extent freight, raw material and finished product cost increases. The company adjusts its selling prices to reflect market conditions and cost changes. For the nine months ended March 31, 2013, the gross margin was 23.5% compared to 23.8% for the prior year nine month period.
For the nine months, the company reported net income of $8.9 million, or $1.22 per share, versus $8.7 million, or $1.24 per share, a year ago. Sales for the period were $284.2 million, a 10.1% increase compared to the prior year. Residential net sales were $228.9 million in the current nine-month period, an increase of 14% from the prior year of $200.7 million. Commercial net sales were $55.3 million in the compared to $57.5 million in the prior year nine month period.