Flexsteel Industries Announces Fourth Quarter Earnings
DUBUQUE, Iowa--Aug. 9, 2001--Flexsteel Industries :
FLEXSTEEL INDUSTRIES, INC.
FINANCIAL INFORMATION
FOURTH QUARTER ENDED JUNE 30, 2001
08/09/2001
THREE MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
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2001 2000 2001 2000
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Sales $68,849,892 $77,378,963 $284,772,510 $300,065,940
Operating Income 161,652 4,611,884 6,542,542 17,679,097
Pretax Earnings 279,242 4,770,476 7,274,005 18,657,594
Income Taxes 105,000 1,740,000 2,680,000 6,730,000
Net Earnings $ 174,242 $ 3,030,476 $ 4,594,005 $ 11,927,594
Per Share Common
Stock:
Net Earnings –
Basic $0.03 $0.48 $0.75 $1.85
Net Earnings –
Assuming Dilution $0.03 $0.47 $0.74 $1.82
Dividends $0.13 $0.13 $0.52 $0.52
Average Common Shares
Outstanding:
Basic 6,071,972 6,323,837 6,107,785 6,457,960
Assuming Dilution 6,137,023 6,421,329 6,174,320 6,561,968
For the fiscal year ended June 30, 2001, net sales were $284.8 million, a decrease of 5.1% compared to the record net sales of $300.1 million in fiscal year 2000. Net sales improved for residential seating during the fiscal year, while demand for vehicle and commercial seating products decreased. Net sales for the fourth quarter decreased 11.0% to $68.8 million from the record net sales of $77.4 million reported in the year earlier quarter. The sales decrease for the quarter was due to lower levels of shipments in all seating product categories.
Income from operations for the quarter ended June 30, 2001, decreased 96.5% to $0.2 million from $4.6 million reported in the year earlier quarter. For the fiscal year ended June 30, 2001, income from operations declined to $6.5 million from $17.7 million reported in the prior year. Excluding the gain on sale of land of $1.2 million reported in the prior year, income from operations declined $9.9 million or 60.3%. The decline in income from operations reflects the lower sales volume and changes in product mix, increased expenses for bad debt, advertising and health insurance, and costs associated with retail operations.
Net income for the quarter ended June 30, 2001, was $0.2 million or $0.03 per diluted share compared to a record $3.0 million or $0.47 per diluted share for the year earlier quarter. Net income for the fiscal year ended June 30, 2001 was $4.6 million or $0.74 per diluted share. Net income for the fiscal year ended June 30, 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, net income for the fiscal year ended June 30, 2001 declined $0.90 per diluted share or $6.1 million from the record amount reported in the prior year.
Fiscal year 2000 net sales amounts have been adjusted to reflect the implementation of Emerging Issues Task Force No. 00-10, Accounting for Shipping and Handling Fees and Costs, which had no effect on previously reported income.