Furniture supplier Flexsteel Industries Inc. today (April 21) reported record third-quarter and nine-month sales and net income.

Sales were $122.5 million for the quarter, ended March 31, a 10.9% increase from the prior year quarter. For the nine months sales were $345.6 million, an increase of 5.5%. The company noted that the West Coast port congestion, while improving, is still negatively impacting its performance.

Third-quarter net income was $7 million, or 90 cents per share, compared to $4.4 million or 58 cents per share in the prior year quarter, representing an increase of 57.4%. Adjusted net income for the current quarter increased 55.8% to $6.7 million, or 88 cents per share, compared to $4.3 million, or 56 cents per share, in the prior year quarter.

For the nine months, net income was $16.5 million, or $2.15 per share, compared to $9.4 million or $1.24 per share in the prior year period, an increase of 76.5%. Adjusted net income for the nine months increased 26.0% to $16.5 million or $2.15 per share compared to $13.1 million or $1.74 per share in the prior year period.

Gross margin as a percent of net sales for the quarter was 24.2% compared to 22.7% for the prior year quarter. For the nine months, gross margin as a percent of net sales was 23.8% compared to 22.8% for the prior period. The improvement in gross margin was primarily driven by declining inventory write downs.

Selling, general and administrative (SG&A) expenses for the current quarter were 15.3% of net sales compared to 16.7% of net sales in the prior year quarter. For the nine month period, SG&A expenses were 16.4% of net sales compared to 16.8% of net sales in the prior period. The improvement in SG&A as a percentage of net sales reflects fixed cost leverage on higher sales volume.

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