Seating supplier Flexsteel Industries Inc., reports its sales to RV industry customers increased 3% in dollar terms during the first quarter of its fiscal year 2004, which ended on Sept. 30.
The Dubuque, Iowa company’s RV seating sales revenue totaled $20.4 million in the period, compared with $19.8 million a year earlier.
Flexsteel’s total sales increased 10% in the first quarter to $76.9 million, compared with $70 million a year earlier, but its net income declined 8% to $1.86 million, compared with $2.03 million last year.
Flexsteel also makes residential and office seating, and it acquired residential office furniture manufacturer DMI on Sept. 18. In the Sept. 18-30 period, DMI contributed $1.7 million to Flexsteel’s $49.4 million in residential furniture sales and DMI added $1.4 million to Flexsteel’s $7.1 million in commercial furniture sales.
To acquire DMI, Flexsteel, a Nasdaq Stock Market-listed company, paid $16.7 million in cash to DMI’s shareholders and assumed $35 million in liabilities, including $25.5 million in long-term debt.
Flexsteel also incurred $2.8 million worth of transaction costs to acquire DMI.