Flexsteel Reports Higher Earnings in Fiscal 2Q

Dubuque, Iowa-based furniture supplier Flexsteel Industries Inc. today (Feb. 3) reported sales for its fiscal second quarter, ended Dec. 31, rose 2.6% to $85 million compared to $82.8 million in the prior year quarter. Net income during the period was $2.9 million, or 42 cents per share, compared to net income of $2.1 million, or 31 cents per share the previous year.

For the six months, Flexsteel posted sales of $166.5 million compared to prior year sales of $170.1 million, a decrease of 2.1%. Net income was $5.3 million, or 76 cents per share, compared to net income of $4.5 million, or 65 cents per share, in the previous year. The prior year six-month period included a pre-tax charge of approximately $1 million to facility closing costs for employee separation and other closing costs.

For the quarter, residential sales were $67 million, an increase of 5.4% from the prior year’s sales of $63.5 million. Commercial sales were $18 million compared to $19.3 million in the prior year quarter, a decrease of 6.5%. For the six months, residential sales were flat at $129.5 million compared to $128.8 million the previous year while commercial sales fell 10.3% to $37 million from $41.3 million.

Gross margin for the quarter was 24.1% compared to 22.7% in the year-ago quarter. For the six months, gross margin was 23.7% compared to 22.6% for the prior year six-month period. Gross margin for the prior year quarter and six-month period was adversely impacted by inventory write-down of $0.6 million associated with the facility closing.

To view the entire report click here.

 

Flexsteel Posts Level 1Q Earnings, Sales Slide

Flexsteel Industries Inc. Tuesday (Oct. 25) reported a slight rise in earnings for the first quarter, as improved margins offset a 6.5% decline in sales.

The company’s net income for the quarter rose to $2.4 million from $2.3 million last year. On a per share basis, earnings remained unchanged at $0.34.

Sales for the quarter slipped 6.5% to $81.5 million from $87.2 million last year, when the company benefited from a longer than normal lag time on orders.

Looking ahead, the company said it expects that top line growth will be modest through fiscal year 2012.

Flexsteel is a manufacturer of upholstered and wood furniture for residential, recreational vehicle, office, hospitality and healthcare markets.

For a full report click here.

 

 

Flexsteel’s Klosterman Set to Retire Next Year

Ronald J. Klosterman has announced his plans to retire as president and CEO of Dubuque, Iowa-based furniture supplier Flexsteel Industries Inc. prior to the end of 2012.

According to a news release, Klosterman, who has been with Flexsteel for nearly 40 years, succeeded K. Bruce Lauritsen as president and CEO in 2006.

“Flexsteel has been fortunate to have an executive of the caliber of Ron Klosterman,” said Chairman L. Bruce Boylen. “Ron has been entrenched in every aspect of Flexsteel’s operations, including finance, manufacturing and marketing. He has gained tremendous respect within the company and the furniture industry demonstrating confidence in and conviction to our company. We will benefit from his guidance in his continuing role as a director.”

Boylen said that the board has formed a search committee and will retain an executive search firm to identify candidates to succeed Klosterman.

Klosterman began his career with Flexsteel as a staff accountant, was promoted to manager of corporate accounting and audit, then served as general manager of the company’s Dublin, Ga., production facility. He held positions as treasurer, president, CFO and COO before becoming president and CEO. He was appointed to the board in 2005.

“Today’s announcement is an important milestone in our succession planning process that will position the company for a smooth leadership transition,” Klosterman said. “It has been, and continues to be, a privilege to lead this tremendous company.”

 

Flexsteel Reports Year-end Sales Flat, Grow 4%

Dubuque, Iowa-based furniture supplier Flexsteel Industries Inc. reported net sales for the fiscal year ended June 30 of $339.4 million compared to $326.5 million in the prior fiscal year, an increase of 4%. Net sales for the quarter were $84.2 million compared to the prior year quarter of $85.6 million, a decrease of 1.6%.

For the fiscal year ended, residential net sales increased 4.9% to $258.1 million compared to $246.0 million for the previous year. Commercial net sales were $81.3 million for the year ended, an increase of 1.1% from net sales of $80.5 million for fiscal 2010.

Fourth quarter residential net sales were $64.4 million compared to the prior year quarter of $65.7 million, a decrease of 2%. Commercial net sales were $19.8 million for the quarter compared to $19.9 million in the prior year quarter.

Net income for the fiscal year was $10.4 million, or $1.50 per share, compared to net income of $10.8 million, or $1.61, per share in the prior year. The current year includes pre-tax charges of $1.6 million related to closing a manufacturing facility. Employee separation and other closing costs of $1.0 million are reported as facility closing costs and an inventory write-down of $0.6 million is charged to cost of goods sold. Net income for the quarter ended June 30, 2011 was $3.5 million, or $0.50 per share, compared to net income of $4.1 million, or $0.61 per share, in the prior year quarter.

To view the entire report click here.

 

Flexsteel to Construct New Corporate Office

Dubuque, Iowa-based Flexsteel Industries Inc. says it plans to build a $12 million, 40,000-square-foot corporate office building in the Port of Dubuque area, replacing a headquarters in the city that is several decades old.

Furniture Today reported that the construction of the building for the RV seating manufacturer is contingent upon approval and financial assistance from governmental entities at state and local levels, the company said. If all goes well, construction would begin in July with completion in early summer 2012.

“Our corporate offices have been at the north Jackson Street location since 1936,” said Ron Klosterman, president and CEO of the furniture manufacturer and importer. “After 75 years, the office facility is out of date both structurally and technologically. Our business has changed over the past 118 years and continues to evolve.”

The four-story building will be designed to be energy-efficient and environmentally friendly, with large windows to make use of natural light.

And the furniture, of course, will include products from Flexsteel’s DMI commercial office division and Flexsteel hospitality and home furnishings lines. The building will allow for future expansion.

Flexsteel Industries Reports Better Q3 Results

Flexsteel Industries Inc. has reported results of operations for its third quarter and fiscal year-to-date March 31, 2011.

Excerpts from the RV seating manufacturer’s press release follow.

The company reported net sales for the quarter  of $85.2 million compared to $81.5 million in the prior year quarter, an increase of 4.6%. The company’s net income improved by 5.8% in the current quarter to $2.5 million or 35 cents per share compared to net income of $2.3 million or 34 cents per share in the prior year quarter.

For the nine months ended March 31, 2011, the company reported net sales of $255.2 million compared to the prior year sales of $240.9 million, an increase of 5.9%. The company reported net income for the current nine-month period of $6.9 million or $1 per share compared to a net income of $6.7 million or $1 per share in the prior year period. The current year nine-month period includes pre-tax charges related to closing a manufacturing facility of approximately $1.0 million for employee separation and other closing costs, and an inventory write-down to cost of goods sold of $0.6 million.

Outlook

Our balance sheet remains strong reflecting working capital in excess of $97 million and no bank borrowings. We were able to realize gains in residential sales for the current year over the prior year. There are indications that improving job prospects and improving consumer sentiment are having a positive impact on residential sales even though the housing market remains weak. We expect to continue top-line growth of our residential products through fiscal year 2012. Our commercial product sales are up slightly for the current year over the prior year. The commercial office industry continues to report increases in sales over last year. While we have benefited minimally from those increases to date, we believe we will see increased sales volume during fiscal year 2012. Based on low demand for an extended period, we anticipate increased orders for hospitality products during fiscal year 2012 as the economy improves.

The company continues to experience increases in the cost of certain raw materials, such as steel, polyester fiber, fabric and leather, and finished products. We are implementing price increases to help mitigate the impact of the increased material and finished product costs, however, we will continue to experience downward pressure on gross margin until we realize the full benefits of these sell price increases and see an end to the cost increases.

We remain committed to our core strategies, which include a wide range of quality product offerings and price points to the residential and commercial markets, combined with a conservative approach to business. We will maintain our focus on a strong balance sheet through emphasis on cash flow and improving profitability. We believe these core strategies are in the best interest of our shareholders.

Flexsteel Reports Lower Q2 Sales/Earnings

Upholstered and wooden furniture products maker Flexsteel Industries Inc. posted second-quarter net income of $2.1 million or 32 cents per share, compared with $3 million or 45 cents per share in the same quarter last year, RTT News Service reported.

Net sales for the quarter declined to $82.8 million, from $83.5 million in the prior year quarter.

Net income for six months was $4.5 million, up from $4.3 million last year.

For six months, net sales were $170.1 million, compared with $159.5 million in the year-ago period.

Click here to read Flexsteel’s 10-K filing with the Securities and Exchange Commission.

Browsers, Few Buyers, at Big Boy Toy Show

After two years of a tough market for recreational-vehicle sales, Doug Gauer, of Couler  Valley RV in Dubuque, Iowa, has seen some signs of improvement, the Dubuque Telegraph  Herald reported.

“This year looks pretty good so far,” said Gauer, who was displaying some RV models at  the Big Boy Toy Show at the Five Flags Center Sunday afternoon (Jan. 30).

Gauer and several other tri-state area RV dealers displayed some of their models at the show, which is presented by the Telegraph Herald.

The hard times the industry has dealt with in recent years have been evident at Dubuque-based furniture maker Flexsteel Industries Inc., which reported a 71% drop in sales of RV materials in 2009.

In 2010, Flexsteel’s vehicle seating sales were up, although the commercial sales category as a whole dropped 14% in year-to-year comparisons.

For his part, Gauer thinks the industry has responded well to the difficult market conditions in recent years and doesn’t think that increasing gas prices will take a toll on this year’s potential sales.

Camping and recreational vehicles are a way of life for a lot of families, Gauer said, and they will find a way to keep their traditions going.

“If it is in your blood, it stays in your blood,” he said. “An RV is an investment, something the whole family can do.”

Gauer and his wife, Sue Gauer, own Dubuque-based Couler Valley RV.

This year, Gauer said, people are shopping earlier than in years past. He said RV companies have done a lot to revamp their products in the wake of the recession.

Prices have stayed relatively flat, said Gauer. He added that there is a wide range of prices in the products, which can include anything from small trailers to entire homes and cost anywhere from $6,000 to $300,000.

Nearby, Dave Brown had two recreational vehicles on display that were priced at $49,000 and $80,000.

Brown, owner of Brown’s Sales and Leasing in Guttenberg and Elkader, said he hasn’t been seeing a lot of early shoppers but is anticipating that more consumers will be buying when the weather warms up.

Gauer and Brown agreed that most of the people at the Big Boy Toy Show Sunday were browsing rather than buying.

Most of the questions Brown fielded dealt with whether his business takes trade-ins, how much the RVs on display could tow, and what the monthly payments would be.

Brown said interest rates are low right now.

Gas prices, which have been blamed for stifling RV sales after spikes in recent years, do not worry Gauer. He sees concern over fuel costs as more psychological than pragmatic.

“You don’t pull your camper to work every day,” Gauer said. “A couple of dollars a gallon more shouldn’t affect people.”

Gauer is quick to point out the advantages of traveling with an RV, which he believes is cleaner and more comfortable than hotel lodging.

“I sleep better in my camper than in my own home,” Gauer said.

Flexsteel Industries Notes Better Q1 Results

Flexsteel Industries Inc. this week reported a higher net income for the first quarter ended Sept. 30, helped mainly by a 15% increase in revenue as well as improved gross margins.

Flexsteel’s net income for the first quarter rose to $2.3 million or 34 cents per share from $1.4 million or 21 cents per share in the same quarter last year. First quarter results included a pre-tax charge of approximately $1.0 million related to the planned closing of a manufacturing operation, according to a news release.

Net sales for the quarter increased to $87.2 million from $75.9 million in the prior-year quarter, as residential net sales grew 16% and commercial net sales grew 12%.

Gross margin for the quarter edged up to 22.5% from 21.8% in the previous-year quarter, helped mainly by better coverage of fixed costs on the higher sales volume.

The Dubuque, Iowa-based manufacturer supplies seating to the RV industry.

Coon and Klosterman Tout RVs in Big Apple

“The RV industry has grown through booms and busts, world wars, the digital age and countless fads,” Coon said. “But we know our best years lie ahead of us. In fact, RV wholesale shipments are projected to increase more than 45% this year.”

Klosterman told the gathering of his NASDAQ-listed company’s nearly 50-year involvement with the RV industry, as well as record net income. Flexsteel makes furniture for the RV market.

“The RV market continues to grow,” Klosterman said. “We’re excited to be part of the RV industry’s centennial celebration and look to grow America’s love of RVing for another century.”

In conjunction with the closing bell ceremony, super-sized RV Centennial and Go RVing logos were on view in Times Square, along with RV lifestyle video from the Go RVing campaign, which aired on the NASDAQ tower. The closing bell ceremony was also broadcast by CNBC, CNBC India, CNBC.com, Fox Business Network, Canada’s Business News Network, Bloomberg and Bloomberg Brazil.

Earlier in the day, the two told FOX Business Network’s audience about the upswing in the RV industry and the deep love consumers have for RVing, during a live interview arranged by RVIA and its public relations agency Barton Gilanelli. The interview was conducted inside a Fleetwood motorhome.

“We’ve actually shipped more units through July than we did all of last year,” Coon told FOX Business. “It shows you the love that people have for RVing. During recession, consumers lay off buying, but then they come back.”

Coon also cited results from RVIA’s Vacation Cost Comparison study, which shows that RVs are the most cost-effective way to take a family vacation.

The Fox Business interview can be viewed here http://video.foxbusiness.com/#/v/4321747/consumers-driving-rv-profits-/?playlist_id=87185.

For other still photos of the event click here.

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