Flexsteel Net Jumps 26.1 Percent in Fourth Quarter, 25.4 Percent for Fiscal Year
DUBUQUE, Iowa-Flexsteel closed out its fiscal year with a dramatic fourth-quarter net-income increase of 26.1 percent, to $4.4 million--bringing its fiscal-year net up 25.4 percent to $13.1 million.
Gains in sales and a better absorption of fixed costs on the higher sales volume helped enhance Flexsteel's bottom line for both the quarter and the fiscal year, which ended on June 30. Net sales rose 11.6 percent in the quarter to $93.9 million, and for the year it increased 3.7 percent to $352.1 million. Gross margin in the quarter climbed 80 basis points to 25.3 percent, and for the year it was up 140 basis points to 24.2 percent.
Selling, general and administrative expenses in the quarter increased 9.8 percent in dollars but fell back 20 basis points as a percentage of sales, to 18.1 percent. For the year, SG&A was up 7.6 percent in dollars and 60 basis points as a percentage of sales, to 18.4 percent.
For the rest of calendar 2012, Flexsteel said it expects the top line to increase moderately due to additions to its product line and to expanding its residential customer base. The company said its optimism is guarded due to the uncertainty of the outcome of the upcoming elections and the effect economic factors have on consumers' willingness to spend.