flexsteel-logoDubuque, Iowa-based furniture supplier Flexsteel Industries Inc. today (Oct. 15) reported record first quarter net sales and net income.

Net sales were $109 million for the quarter ended Sept. 30, a 4% increase from the prior year quarter. Net income was $4.9 million, or 64 cents per share compared to $3.8 million, or 51 cents per share, a year ago. Adjusted net income for the current quarter increased 14% to $5 million, or 65 cents per share, compared to $4.4 million, or 59 cents per share, in the prior year.

Flexsteel reported that the company purchased land and a building in Edgerton, Kan., for $24 million, to be used as a distribution facility, utilizing cash of $12 million and short-term borrowings of $12 million.

Other highlights include:

• Gross margin as a percent of net sales for the quarter was 23.5% compared to 22.7% for the prior year quarter. The company said the improvement is from product mix changes and focus on margin realization.

• Selling, general and administrative (SG&A) expenses for the current quarter was 16.9% of net sales compared to 17.5% of net sales in the prior year quarter. Indiana civil litigation defense costs in the current quarter were $0.8 million or 0.8% of net sales lower than the prior year period.

• The company generated $3 million in cash flow from operations reflecting net income of $5 million, depreciation expense of $1 million and changes in operating assets and liabilities of $3 million. Dividend payments totaled $1 million for the quarter.