Flexsteel Industries (FLXS) Pressured Following Q4 Results, Outlook

Flexsteel Industries (NASDAQ: FLXS) shares are slumping about 12 percent Wednesday after it reported Q4 EPS of $0.74, versus $0.74 reported last year. Revenue for the quarter came in at $121.3 million, versus $111.1 million reported last year.

Outlook

Due to existing strong order backlog and positive order trends the Company expects top line growth will continue in fiscal year 2016. Residential growth is expected from existing customers and products, and through expanding our product portfolio and customer base. The Company believes this growth will be led by increased demand for upholstered, ready-to-assemble, and case goods products. The Company anticipates sales of commercial products consistent with fiscal year 2015. The Company is confident in its ability to take advantage of market opportunities.

The Company continues to progress on two multi-year initiatives, designed to enhance customer experience and increase shareholder value. Consistent with its logistics strategy, the Company began operations in April 2015, as planned, at its Edgerton distribution facility after investing $32 million. The Company continues to develop its business information system requirements and expensed $0.6 million during the current fiscal year related to the project. The timing and level of additional investment required for these initiatives will be evaluated as the projects progress. Operating capital expenditures are estimated to be $7 million for fiscal 2016. The Company believes it has adequate working capital and borrowing capabilities to meet these requirements.

The Company remains committed to its core strategies, which include providing a wide range of quality product offerings and price points to the residential and commercial markets, combined with a conservative approach to business. We will maintain our focus on a strong balance sheet through emphasis on cash flow and increasing profitability. We believe these core strategies are in the best interest of our shareholders.

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

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