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Flexsteel Industries, Inc. Reports Fiscal Second Quarter 2023 Results
DUBUQUE, Iowa--(BUSINESS WIRE)-- Flexsteel Industries, Inc. (NASDAQ:FLXS) (“Flexsteel” or the “Company”), one of the largest manufacturers, importers, and
About this update from Flexsteel Industries, Inc.
[{"type":"text","content":" DUBUQUE, Iowa--(BUSINESS WIRE)--\nFlexsteel Industries, Inc. (NASDAQ:FLXS) (“Flexsteel” or the “Company”), one of the largest manufacturers, importers, and marketers of residential furniture products in the United States, today reported second quarter fiscal year 2023 financial results.\n\nKey Results from the Second Quarter Ended December 31, 2022\n\n\nNet sales for the quarter decreased 34.3% to $93.1 million compared to $141.7 million in the prior-year quarter.\n\n\nGross margin increased to 17.0% for the quarter compared to 6.7% in the prior-year quarter.\n\n\nGAAP operating income of $3.8 million for the quarter compared to a loss of ($8.6) million in the prior-year quarter.\n\n\nNon-GAAP1 operating income of $1.0 million for the quarter compared to a loss of ($8.0) million in the prior-year quarter.\n\n\nGAAP net income per diluted share of $0.53 for the current quarter compared to a net loss of ($1.13) in the prior-year quarter.\n\n\nNon-GAAP1 net income per diluted share of $0.08 for the quarter compared to a net loss of ($1.05) in the prior-year quarter.\n\n\nCash flow from operations of $24.6 million for the six months ended.\n\n\nDebt repayments of $18.6 million for the six months ended.\n\n\n1GAAP to non-GAAP reconciliations follow the financial statements in this press release.\n\nManagement Commentary\n\n“Despite a challenging macro-economic environment, I am pleased with our second quarter results,” said Jerry Dittmer, President, and CEO of Flexsteel Industries. “We delivered net sales for the quarter of $93.1 million, which was within our sales guidance of $87 to $97 million, as our growth initiatives helped partially offset the hurdles posed by high retail inventories and waning consumer demand. Our adjusted operating income of $1.0 million, or 1.0% of revenue, was at the high end of our guidance range of negative 1.5% to positive 1.5%, as we effectively managed costs and successfully navigated an intensely competitive pricing environment. As important, we continued to generate strong cash flow and strengthen our balance sheet. In the first half of fiscal 2023, we generated $22.5 million of free cash flow (cash provided by operating activities less capital expenditures) and reduced bank debt by almost half, or $18.6 million. We are focused on remaining financially agile given ongoing economic uncertainty while ...