Business
Flexsteel Industries, Inc. Reports Strong Fiscal Second Quarter 2025 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 2025 results.\n\n\nKey Results for the Second Quarter Ended December 31, 2024\n\n\n\nNet sales for the quarter of $108.5 million compared to $100.1 million in the prior year quarter, an increase of 8.4% and fifth consecutive quarter of year-over-year sales growth.\n\n\n\nPre-tax gain of $5.0 million from sale of former manufacturing facility in Dublin, GA.\n\n\n\nGAAP operating income of $11.7 million or 10.7% of net sales compared to $4.6 million or 4.6% of net sales in the prior year quarter.\n\n\nAdjusted operating income of $6.7 million or 6.1% of net sales for the second quarter compared to $4.6 million or 4.6% of net sales in the prior year quarter.\n\n\n\n\n\n\nGAAP net income per diluted share of $1.62 for the current quarter compared to $0.57 in the prior year quarter.\n\n\nAdjusted net income per diluted share of $0.95 for the quarter compared to $0.57 in the prior year quarter.\n\n\n\n\n\n\nGenerated $6.7 million of cash from operations in the quarter and paid off all outstanding borrowings on line of credit.\n\n\n\nGAAP to non-GAAP reconciliations follow the financial statements in this press release\n\n\nManagement Commentary\n\n\n“We are competing well and gaining share in a challenging business environment,” said Derek Schmidt, President & Chief Executive Officer of Flexsteel Industries, Inc. “We continued our strong momentum from the first quarter, delivering sales growth of 8.4 percent compared to the prior year quarter, which represents our fifth consecutive quarter of mid-single to low-double digit year-over-year growth. I’m especially encouraged because our growth was broad-based. We solidly grew in our core markets while simultaneously delivering growth in all our new and expanded market initiatives. Additionally, we continue to expand our operating margin and deliver strong positive free cash flow which has allowed us to pay off our remaining bank debt and begin accumulating cash.”\n\n\nMr. Schmidt continues, “While overall industry demand remains soft, many of our retailer partners were encouraged by improved traffic trends and sales close rates duri...