Business
Flexsteel Industries, Inc. Reports Fiscal Third 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 third quarter fiscal year 2023 financial results.\n\n\nKey Results from the Third Quarter Ended March 31, 2023\n\n\n\nNet sales for the quarter decreased 29.5% to $99.1 million compared to $140.4 million in the prior-year quarter.\n\n\n\nGross margin increased to 18.8% for the quarter compared to 15.7% in the prior-year quarter.\n\n\n\nGAAP operating income of $2.1 million for the quarter compared to $5.8 million in the prior-year quarter.\n\n\n\nGAAP net income per diluted share of $0.28 for the current quarter compared to net income of $0.82 in the prior-year quarter.\n\n\n\nCash flow from operations of $30.5 million for the nine months ended.\n\n\n\nDebt repayments of $20.0 million for the nine months ended.\n\n\n\nGAAP to non-GAAP reconciliations follow the financial statements in this press release.\n\n\nManagement Commentary\n\n\n“I am pleased with our third quarter results and the progress the organization has made, especially as we consider the many consumer and macroeconomic headwinds we continue to face,” said Jerry Dittmer, President, and CEO of Flexsteel Industries, Inc. “Despite the market challenges, we delivered net sales for the third quarter of $99.1 million, representing sequential quarter-over-quarter growth of 6.4% compared to the second quarter. Our growth initiatives are working and gaining momentum, and we anticipate continuing that drive to deliver even higher sales in the fourth quarter compared to the third quarter results. At the same time, we are improving profitability and generating solid free cash flow. Our operating income of $2.1 million, or 2.1% of revenue, was in the upper range of our guidance of 1.0% to 2.5%. As planned, we are working through higher-cost inventories and realizing the benefits of cost-saving initiatives to drive margin accretion. Similar to our sales outlook, we expect profitability to sequentially improve in the fourth quarter compared to the third quarter, bolstered by the traction of our growth initiatives which have an attractive margin profile. I’m very excited about the trajectory of our business. We’ve been transforming the Company for...