Flexsteel (NASDAQ: FLXS) reported Q1 EPS of $0.80, versus $0.00 reported last year. Revenue for the quarter came in at $105.2 million, versus $100.3 million reported last year.

Highlights for the First Quarter Ended September 30, 2020

• Net sales increased 4.9% to $105.2 million compared to $100.3 million in the prior year quarter
• Organic net sales1, excluding discontinued Vehicle Seating and Hospitality product lines, increased by 17.9%
• Record level backlog of $89 million driven by strong year-over-year order growth of 60% in retail home furnishings
• Gross margin increased to 21.7% compared to 17.2% in the prior year quarter
• GAAP net income per diluted share of $0.49 compared to $1.17 in the prior year quarter
• Non-GAAP1 net income per diluted share of $0.80 compared to $0.00 in the prior year quarter
• Share repurchases of $9.0 million during the quarter

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

Management Commentary

“During the first quarter, we delivered solid financial results and saw increased demand for home furnishing products as consumers spend more time in the home and are shifting spending from travel and entertainment to home products,” said Jerry Dittmer, President and CEO of Flexsteel Industries.

“The strategic decisions made last quarter to accelerate our transformation and heighten focus on our core retail and e-commerce furniture businesses have made us stronger and more agile to meet surging demand with a more efficient network. The Company is financially strong with over $36 million of cash and no debt. We invested in increased inventories in the first quarter to support our customers and are expecting to receive a record number of inbound shipments in our second quarter to meet continued strong demand. Additionally, we recently added new production lines in both of our North American manufacturing facilities to expand capacity. In the first quarter, we returned the business to operating margins near historical peaks which we are committed to sustaining going forward. With profitability stabilized and sales momentum strong, we are now pivoting towards strategic investments to drive long-term profitable growth and improve our customers’ experience. While market conditions remain dynamic and could quickly change based on a multitude of factors, our team is competing well, and we are cautiously optimistic in our ability to continue profitably growing the business in 2021.”

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