Daily News
From Home Furnishing Business
Flexsteel Sales, Earnings Fall Slightly in Fiscal Year
August 16,
2017 by Larry Thomas in Economic News, Industry 
Upholstery and case goods resource Flexsteel Inds. (NASDAQ: FLXS) said sales and earnings fell slightly in the fourth fiscal quarter and fiscal year that ended June 30 as the company reorganized parts of its business and eliminated some products from its portfolio.
Net sales for the final quarter of the fiscal year totaled $117.4 million, down 4.4% from $122.8 million in the same quarter last year. Residential furniture sales were down 3.8% to $99.3 million.
Net income fell 2.3% to $6.02 million or 76 cents per share.
For the fiscal year, net sales were $468.8 million, down 6.3% from $500.1 million the previous fiscal year. The total included residential furniture sales of $396.1 million, which were down 5.9% from the previous year.
Full-year net income totaled $23.8 million or $3.02 per share. That was down from $24.2 million or $3.12 per share the previous year.
Flexsteel said the full-year totals included expenditures of $10.6 million on a new business information system, which should be in operation by the end of the current fiscal year on June 30, 2018. The company said it expects to have $5 million in capital expenditures and incur $2 million of sales, general and administrative expenses for the new system this year.
“Fiscal year 2017 was the second best fiscal year in net sales and net income per share in our history,” said Karel Czanderna, president and CEO. “We grew net sales by $15 million with new and existing customers and products across the markets we serve. Net sales primarily decreased by $46 million associated with products that did not meet our discerning quality standards and the reorganization of three of our businesses. These actions maintained profitability in the current year and will further enable long-term net sales and net income growth.”
In the current fiscal year, she said the company expects to have moderate revenue growth, tempered by an intentional sales decrease to certain contract furniture customers. The company is focused on improving product delivery and driving efficiencies in operations, Czanderna explained.