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Flexsteel Reports Earnings Improvement For Second Quarter And Year-To-Date Fiscal 2012

Stock quotes in this article: FLXS 

Flexsteel Industries, Inc. (NASDAQ:FLXS) today reported net sales for the quarter ended December 31, 2011 of $85.0 million compared to $82.8 million in the prior year quarter, an increase of 2.6%. The Company reported net income for the current quarter of $2.9 million or $0.42 per share compared to net income of $2.1 million or $0.31 per share in the prior year quarter.

For the six months ended December 31, 2011, the Company reported net sales of $166.5 million compared to the prior year sales of $170.1 million, a decrease of 2.1%. The Company reported net income for the current six-month period of $5.3 million or $0.76 per share compared to a net income of $4.5 million or $0.65 per share in the prior year period. The prior year six-month period includes a pre-tax charge of approximately $1.0 million to facility closing costs for employee separation and other closing costs.

For the quarter ended December 31, 2011, residential net sales were $67.0 million, an increase of 5.4% from the prior year quarter net sales of $63.5 million. Commercial net sales were $18.0 million compared to $19.3 million in the prior year quarter, a decrease of 6.5%.

For the six months ended December 31, 2011, residential net sales were $129.5 million compared to residential net sales of $128.8 million in the six months ended December 31, 2010, an increase of 0.6%. Commercial net sales were $37.0 million for the six months ended December 31, 2011 compared to $41.3 million for the six months ended December 31, 2010, a decrease of 10.3%.

Gross margin for the quarter ended December 31, 2011 was 24.1% compared to 22.7% in the prior year quarter. For the six months ended December 31, 2011, the 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.

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