On August 19, 2024, Flexsteel Industries Inc (FLXS, Financial) released its 8-K filing detailing the company's financial performance for the fourth quarter and full fiscal year ended June 30, 2024. Flexsteel Industries Inc is a United States-based company that manufactures, imports, and markets residential upholstered wooden furniture products. The company's products are intended for use in home, office, hotel, healthcare, and other contract applications.
Performance Overview
Flexsteel Industries Inc (FLXS, Financial) reported net sales of $110.8 million for the fourth quarter, a 4.7% increase compared to $105.8 million in the prior year quarter. For the full fiscal year, net sales rose by 4.8% to $412.8 million from $393.7 million in the previous year. This performance surpassed the analyst estimate of $110.04 million in revenue for the quarter.
Robust sales orders of $108.5 million for the fourth quarter represented a growth of $2.7 million, or 2.6%, compared to the prior year quarter. The company's gross margin increased to 21.3% for the fourth quarter and 21.1% for the year, compared to 20.0% and 18.0% respectively in the prior year.
Financial Achievements
Flexsteel Industries Inc (FLXS, Financial) achieved a GAAP operating income of $7.6 million or 6.9% of net sales for the fourth quarter and $17.1 million or 4.1% of net sales for the year. Adjusted operating income was $6.2 million or 5.6% of net sales for the fourth quarter and $18.3 million or 4.4% of net sales for the year. These figures reflect significant improvements from the prior year.
GAAP net income per diluted share was $0.89 for the current quarter and $1.91 for the year, compared to $1.91 and $2.74 respectively in the prior year. Adjusted net income per diluted share was $0.75 for the quarter and $2.11 for the year, compared to $0.36 and $0.87 respectively in the prior year.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Net Sales | $110.8M | $105.8M | $412.8M | $393.7M |
| Gross Margin | 21.3% | 20.0% | 21.1% | 18.0% |
| GAAP Operating Income | $7.6M | $4.2M | $17.1M | $10.5M |
| Adjusted Operating Income | $6.2M | $4.2M | $18.3M | $8.1M |
| GAAP Net Income per Diluted Share | $0.89 | $1.91 | $1.91 | $2.74 |
| Adjusted Net Income per Diluted Share | $0.75 | $0.36 | $2.11 | $0.87 |
Management Commentary
“I am extremely pleased with our fourth quarter results,” said Derek Schmidt, President & Chief Executive Officer of Flexsteel Industries, Inc. “Despite continued challenging conditions for our industry, we are executing well and delivered 4.7% sales growth in the quarter which represents our third consecutive quarter of mid- to high-single digit year-over-year growth. Our strategies to gain share in our core markets and pursue new growth in expanded markets are working due to our investments in innovation, new product development, customer experience and marketing.”
Liquidity and Cash Flow
Flexsteel Industries Inc (FLXS, Financial) reported cash flow from operations of $7.5 million for the fourth quarter and $31.9 million for the year. The company also made debt repayments of $23.5 million for the year, reducing borrowings under the line of credit by 83%. The company ended the quarter with a cash balance of $4.8 million and working capital of $95.0 million.
Analysis
Flexsteel Industries Inc (FLXS, Financial) has demonstrated strong financial performance in the fourth quarter and full fiscal year 2024, with significant improvements in net sales, gross margin, and operating income. The company's ability to grow sales and improve profitability despite industry challenges is noteworthy. The reduction in debt and strong cash flow generation further highlight the company's solid financial position.
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Explore the complete 8-K earnings release (here) from Flexsteel Industries Inc for further details.
