Flexsteel Industries Inc. announced Monday (July 2) that Karel K. Czanderna has been named the company’s president and CEO. Czanderna, an established leader in the durable goods space, is a veteran of Owens Corning and Whirlpool Corporation and succeeds Ronald J. Klosterman in the role, according to a news release.
Czanderna’s appointment became effective July 1. Klosterman, who has been with Flexsteel for nearly 40 years, will maintain his board seat.
“For more than a century, Flexsteel’s employees, investors and customers have benefited from exceptional executive leadership,” said Flexsteel Chairman Lynn J. Davis. “That proud tradition will continue with Karel serving as our seventh corporate president. Having earned critical operational expertise through years of building world-class brands, Karel is uniquely equipped to enhance growth opportunities in our various business lines while maintaining the culture that has served as the company’s foundation since its inception.”
“It is an honor to join an organization that since 1893 has built a reputation for unwavering commitment to product and service excellence,” said Czanderna. “I look forward to preserving that storied heritage as we continue to expand on Flexsteel’s many industry-leading innovations to create additional value for our customers and investors.”
Czanderna, who holds a Ph.D. in materials science and engineering from Cornell University and completed an executive education program at Harvard Business School, served most recently as group president of building materials for Owens Corning. In that role, she was responsible for a $3.3 billion global business that comprised two-thirds of the Fortune 500 company’s revenue. She led 7,500 employees located in more than 65 global plants as well as an integrated supply chain organization and sales and marketing staff. Among her many achievements at Owens Corning, Czanderna is credited with doubling the profitability of the building materials business during an economic downturn.
Prior to Owens Corning, Czanderna held multiple executive positions at Whirlpool Corp., including as vice president and general manager of global KitchenAid and Jenn-Air appliance businesses. In that role, she held responsibility for a $1.8 billion business.
Czanderna, who earned her BS at Clarkson University and a master’s from Cornell, was recruited by Eastman Kodak upon completion of her studies. She served the company in multiple capacities, ultimately being promoted to senior leadership positions overseeing $500 million in business activity and more than 5,500 employees.
“Senior officers and the board of directors are confident that Karel will value Flexsteel’s heritage and be an exceptional leader,” said James R. Richardson, Flexsteel director and senior vice president of sales and marketing.
Members of the Flexsteel board retained CTPartners Executive Search Inc. to assist in identifying and evaluating potential candidates.
About Flexsteel Industries
Flexsteel Industries Inc. is headquartered in Dubuque, Iowa, and is a designer, manufacturer, importer and marketer of quality upholstered and wood furniture for residential, recreational vehicle, office, hospitality and healthcare markets.
Two key RV suppliers, Patrick Industries Inc. and Flexsteel Industries Inc., have been added to the U.S. broad-market Russell 3000 Index.
According to a press release, Russell indexes are widely used by investment managers and institutional investors worldwide for index funds and as benchmarks for both passive and active investment strategies. An industry leading $3.9 trillion in institutional assets are currently benchmarked to them.
Todd Cleveland, president and CEO of Elkhart, Ind.-based Patrick, said the company was honored to have joined the Index. “The Russell designation represents a significant milestone in Patrick’s 53 year history that will bring additional visibility to our company and our strategic initiatives as we strive to continue to create long-term value for our shareholders,” he stated.
Ronald J. Klosterman, president and CEO of Dubuque, Iowa-based Flexsteel, noted, “Many investors and institutions rely on the Russell 3000 Index as part of their investment strategy. Flexsteel’s inclusion acknowledges our strong business fundamentals and potential for future growth.”
A leader at Flexsteel Industries Inc. in Dubuque, Iowa, said this overall downturn in the RV industry is lasting longer than expected, according to a report by Dubuque Telegraph Herald.
“We thought we would have seen a greater turnaround by this time than what we have,” said Ron Klosterman, president and CEO of Flexsteel, in a conference call with investors following the release of a company earnings report last month.
The Dubuque-based furniture maker makes RV materials, along with other commercial and residential products. The company’s sales of RV materials have faltered in recent years, in 2009 falling a staggering 71% compared to 2008. Some improvement was evident by 2010, when Flexsteel’s vehicle seating sales were up, although the commercial sales category as a whole dropped 14% in year-to-year comparisons.
In the most recent quarter, Flexsteel reported a 32% increase in net income, a company record. Income rose from $2.5 million in the third quarter of last year to $3.3 million. That rise was largely driven by residential net sales; commercial sales were relatively flat.
Although the recreational vehicle industry has historically seen some substantial dips in volume, the business typically bounces back with “pretty good strength,” according to Klosterman.
“This is a little bit different than what has happened in the past. We are having a harder time seeing when that jump in volume might happen,” he said.
Klosterman said the industry’s original equipment manufacturers aren’t producing as much as the Dubuque firm would like to see and the industry’s trade organization is projecting growth in the low single digits for the balance of calendar 2012.
“Even their optimism is pretty temperate,” Klosterman said.
But at Couler Valley RV in Dubuque, last month was a record breaker. “We had a great, absolutely fabulous April. We grossed the most we’ve ever grossed in 24 years,” said Doug Gauer, who owns Couler Valley.
The business recently hired two new employees, which Gauer said were the first hires in about seven years. He attributed the strong month in part to the unseasonably warm spring weather.
“Good weather does spark a lot of enthusiasm for going camping,” Gauer said.
Similarly, in recent weeks business has slowed slightly as the weather has cooled.
But Gauer said other factors have contributed to Couler Valley’s perseverance, like a long-standing history of service in the community and the status of the overall Dubuque economy.
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Dubuque, Iowa-based furniture supplier Flexsteel Industries Inc. reported record third quarter net income of $3.3 million, or $0.48 per share, compared to net income of $2.5 million, or $0.35 per share, in the prior year quarter, an increase of 36.2%.
The company reported sales for the quarter, ended March 31, of $91.6 million compared to $85.2 million in the prior year quarter, an increase of 7.6%.
For the nine months, Flexsteel posted net income of $8.7 million, or $1.24 per share, compared to a net income of $6.9 million, or $1 per share, in the prior year period, an increase of 25.1%. Net sales for the nine-month period increased 1.1% to $258.2 million compared to $255.2 million the previous year.
Third-quarter residential sales were $71.2 million, an increase of 9.6% from the prior year quarter sales of $65 million. Commercial net sales were $20.4 million compared to $20.2 million in the prior year quarter.
For the nine months, residential net sales were $200.7 million compared to $193.7 million in the prior year, an increase of 3.6%. Commercial net sales decreased 6.6% to $57.5 million during the period compared to $61.5 million last year, a decrease of 6.6%.
To view the entire report click here.
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 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.
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.”
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.
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 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.
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.