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Flexsteel Industries, Inc. Reports Strong Fiscal Second Quarter 2024 Results and Announces Manufacturing Network Optimization Actions
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 2024 results and announced actions to optimize its North American manufacturing network.\n\n\nKey Results for the Second Quarter Ended December 31, 2023\n\n\n\nHealthy sales growth of 7.5%. Net sales for the quarter of $100.1 million compared to $93.1 million in the prior year quarter.\n\n\n\nRobust sales orders of $104.8 million representing growth of $12.8M, or 13.9%, compared to prior year quarter.\n\n\n\nSignificant gross margin improvement to 21.9% compared to 17.0% in the prior year quarter.\n\n\n\nSolid GAAP operating income of $4.6 million or 4.6% of net sales compared to $3.8 million or 4.0% of net sales in the prior year quarter.\n\n\nNon-GAAP operating income of $4.6 million or 4.6% of net sales for the second quarter compared to $1.0 million or 1.0% of net sales in the prior year quarter.\n\n\n\n\n\n\nGAAP net income per diluted share of $0.57 for the current quarter compared to net income of $0.53 in the prior year quarter.\n\n\nNon-GAAP net income per diluted share of $0.57 for the quarter compared to non-GAAP net income of $0.08 in the prior year quarter.\n\n\n\n\n\n\nStrong cash flow generation: cash flow from operations of $18.9 million for the quarter driven by higher profits and a $15.6 million reduction in inventories.\n\n\n\nStrengthened balance sheet: debt repayments of $15.1 million for the quarter, or a 46% reduction in borrowings under the line of credit.\n\n\n\n\n\nGAAP to non-GAAP reconciliations follow the financial statements in this press release\n\n\n\n\n\n\n\nManagement Commentary\n\n\n“I am very pleased with our second quarter results, which are consistent with the preliminary results announced on January 11th,” said Jerry Dittmer, CEO of Flexsteel Industries, Inc. “While headwinds persist in our industry largely due to shifts in discretionary consumer spending towards experiences and away from home furnishings, we are competing well and growing both our top and bottom line.”\n\n\nMr. Dittmer continues, “We delivered strong net sales of $100.1 million, or growth of 7.5%, which was slightly above our sales guidance range of $94 to $100 milli...