Flexsteel reports 16% spike in quarterly net sales, dramatic swing in net income

A Dubuque-headquartered manufacturing company Monday reported a 16% year-over-year spike in net sales during its recently completed quarter.

Flexsteel Industries recorded sales totaling $119.1 million in the three months that ended on Dec. 31, compared to $102.9 million during that same time period in the prior year.

Net income also shot up to $8.5 million in the recent quarter that ended on Dec. 31, compared to a loss of $5.4 million in the prior year.

“Despite ongoing challenges from COVID-19, we executed well and delivered on strong demand for home-furnishing products during our second quarter (of the fiscal year) 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 President and CEO Jerry Dittmer in a press release.

The quarterly net income was bolstered by the sale of the company’s manufacturing plant in Dubuque, as well as a facility in Pennsylvania, which Flexsteel reported resulted in “total net proceeds of $15.7 million and a total gain of $5.2 million.” The company reported that without those proceeds, the company would have had net income of $5.9 million in the quarter.

Flexsteel closed its production facility in Dubuque in June and sold it to Simmons Pet Foods, which will reopen the plant this summer. Online property records state that Simmons bought the property in December for $14.5 million.

Company officials will further discuss the earnings report during a conference call today. Additional details will be shared in Wednesday’s Telegraph Herald.

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