Dubuque, Iowa-based furniture supplier Flexsteel Industries Inc. reported a 5% uptick in sales for its fiscal third quarter, ended March 31.
Revenue was $126.9 million for the quarter compared to $120.8 million in the prior year quarter. Higher residential net sales were primarily due to new customers and to a lesser extent sales price increases offset by volume decreases in ready-to-assemble furniture. Net sales were $376.1 million for the nine months, an increase of 7.1%.
Net income for the quarter totaled $5.7 million, or 72 cents per share, compared to $7.6 million or 96 cents per share in the prior year quarter. For the nine months, net income was $18.1 million, or $2.28 per share, compared to $17.8 million, or $2.26 per share, in the prior year period.
Gross margin as a percent of net sales for the quarter was 21.8%, compared to 23.6% for the prior year quarter. For the nine months, gross margin as a percent of net sales was 21.6%, compared to 23.3% for the prior year period. The decrease in gross margin as a percentage of net sales is primarily due to inflationary pressures including labor, raw material and delivery costs partially offset by volume leverage on fixed costs. The current quarter also includes $0.6 million or 0.5% of net sales for anticipated costs related to a voluntary field replacement of a dual USB control in certain power reclining furniture styles.
As reported earlier in this fiscal year, the company completed a $6.5 million sale of a facility and recognized a pre-tax gain of $1.8 million. The after-tax basis reported in “Gain on sale of facility” is $1.3 million or $0.16 per share.
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