Flexsteel (FLXS) Reports Q2 EPS of $0.79 on Revenues of $119.1M

Flexsteel (NASDAQ: FLXS) reported Q2 EPS of $0.79, versus ($0.19) reported last year. Revenue for the quarter came in at $119.1 million, versus $102.9 million reported last year.

Highlights for the Second Quarter Ended December 31, 2020

• Net sales increased 15.7% to $119.1 million compared to $102.9 million in the prior year quarter
• Organic net sales1, excluding discontinued Vehicle Seating and Hospitality product lines, increased by 25.5%
• Record retail home furnishings backlog of $101 million as of December 31, 2020, driven by strong year-over-year order growth of 49% in the second quarter
• Gross margin increased to 20.5% compared to 15.6% in the prior year quarter
• GAAP net income per diluted share of $1.13 compared to net loss of ($0.68) in the prior year quarter
• Non-GAAP1 net income per diluted share of $0.79 compared to net loss of ($0.19) in the prior year quarter
• Share repurchases of $11.0 million during the quarter

1GAAP to non-GAAP reconciliations follow the financial statements in this press release.

Management Commentary

“Despite ongoing challenges from COVID-19, we executed well and delivered on strong demand for home furnishing products during our second quarter as we reported sales growth of 16% and organic sales growth of 26% compared to the prior year quarter, with growth in virtually all product categories,” said Jerry Dittmer, President and CEO of Flexsteel Industries.

“We enter the third quarter with strong sales momentum and a record high backlog. Global supply chain disruptions remain a significant near-term challenge due to constrained ocean container availability and material and labor shortages, but we are investing aggressively to expand our supply chain capabilities and inventories to best support our customers and the robust consumer demand for furniture. We recently signed a new building lease in Juarez, Mexico for an additional manufacturing plant which will add incremental manufacturing capacity in late third quarter. I remain confident in our ability to profitably grow the company in 2021 while accelerating strategic investments to drive long-term profitable growth and improve our customers’ experience.”

For earnings history and earnings-related data on Flexsteel (FLXS) click here.

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