Flexsteel Industries, Inc. Announces Third Quarter Earnings
DUBUQUE, Iowa--April 17, 2001--Flexsteel Industries, Inc.
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
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2001 2000 2001 2000
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Sales $68,441,058 $74,972,094 $205,286,457 $213,076,665
Operating Income $1,098,930 $4,516,099 $ 6,380,890 $13,067,213
Pretax Earnings $1,289,223 $4,672,949 $ 6,994,763 $13,887,118
Income Taxes 475,000 1,730,000 2,575,000 4,990,000
Net Earnings $ 814,223 $2,942,949 $ 4,419,763 $ 8,897,118
Per Share Common
Stock:
Net Earnings -
Basic $0.13 $0.46 $0.72 $1.37
Net Earnings -
Diluted $0.13 $0.45 $0.71 $1.35
Dividends $0.13 $0.13 $0.39 $0.39
Average Common
Shares Outstanding:
Basic 6,070,892 6,422,157 6,131,994 6,481,102
Diluted 6,140,248 6,522,426 6,199,023 6,587,281
Sales for the third quarter ended March 31, 2001, were $68.4 million or 8.7% lower than the record $75.0 million reported for the year earlier quarter. For the current quarter, shipments of vehicle seating products decreased by $9.6 million or 37.5% while residential shipments increased by $4.0 million or 8.9%. Fiscal year-to-date sales declined 3.7% or $7.8 million to $205.3 million for the nine months from the record $213.1 million reported for the prior year period. The decline in year-to-date sales reflects decreased demand for vehicle seating products of $22.6 million or 31.5%, offset by increased shipments of residential products of $15.6 million or 12.3%.
Income from operations for the quarter ended March 31, 2001, declined 75.7% to $1.1 million from $4.5 million reported in the year earlier quarter. For the nine-months ended March 31, 2001, income from operations declined to $6.4 million from $13.1 million reported in the prior year. Excluding the gain on sale of land of $1.3 million reported in the prior period, income from operations declined $5.4 million or 46.0%. The decline in income from operations reflects the lower sales volume and changes in product mix in the current period.
Net earnings for the quarter ended March 31, 2001, were $0.8 million or $0.13 per diluted share compared to a record $2.9 million or $0.45 per diluted share for the year earlier quarter. Net earnings on a year-to-date basis were $4.4 million or $0.71 per diluted share. Net earnings for the nine months ended March 31, 2000 includes a net gain of $0.8 million or $0.12 per share on the sale of land and $0.06 per share or $0.4 million from the proceeds of life insurance. Excluding the aforementioned items, year to date net earning for the nine months ended March 31, 2001 declined $0.46 per diluted share or $3.3 million from the record amounts reported in the prior year nine-months to date net earnings. Advertising, bad debts and health insurance cost increases and the cost associated with the development of retail operations negatively impacted net earnings in the current period.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
The Company and its representatives may from time to time make written or oral forward-looking statements with respect to goals and expectations of the Company, including statements contained in the Company's filings with the Securities and Exchange Commission and in its reports to stockholders.
Statements, including those in this report, which are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are certain important factors that could cause results to differ materially from those anticipated by some of the statements made herein. Investors are cautioned that all forward-looking statements involve risk and uncertainty. Some of the factors that could affect results are the effectiveness of new product introductions, the product mix of our sales, the cost of raw materials, the amount of sales generated and the profit margins thereon, credit risk from customers, volatility in the major markets, competition and general conditions.
The Company specifically declines to undertake any obligation to publicly revise any forward-looking statements that have been made to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.