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Flexsteel Industries Inc. (FLXS-4.39%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $108.5 million from $100.1 million in the same quarter the previous year. The increase is attributed to higher sales in home furnishings products sold through retail stores.
Cost of goods sold for the quarter was $85.7 million, representing 79% of sales, compared to 78.1% in the same quarter of the previous year. This increase in cost ratio is due to ocean freight charge increases.
The company reported a gross profit of $22.8 million for the quarter, compared to $22 million in the previous year. The gross margin decreased to 21% from 21.9% in the prior year quarter.
Selling, general, and administrative expenses decreased to $16.1 million from $17.4 million, primarily due to leverage on higher sales and structural cost savings.
Net income for the quarter was $9.1 million, up from $3.1 million in the previous year. Earnings per diluted share increased to $1.62 from $0.57 in the prior year quarter.
Cash provided by operating activities was $9.1 million, while cash provided by investing and used in financing activities was $6.5 million and $8.6 million, respectively.
Flexsteel had a working capital of $98.2 million as of December 31, 2024. The company completed the sale of its Dublin, Georgia facility, recording a pre-tax gain of $5 million.
The filing also details a credit agreement with Wells Fargo Bank, providing up to an $85 million revolving line of credit, with no outstanding borrowings as of December 31, 2024.
The company anticipates potential impacts from a proposed 25% tariff on products from Mexico, which could affect future costs and cash flow.
Flexsteel continues to focus on its home furnishings segment, with a backlog of $77 million as of December 31, 2024, reflecting a 40% increase from the prior year.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Flexsteel Industries Inc. quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.