Earnings Call Excerpt
Flexsteel Industries, Inc. (FLXS)
F4Q09 (Qtr End 06/30/09) Earnings Call
August 20, 2009 11:30 am ET
Executives
Timothy Hall - VP of Finance and CFO
Ron Klosterman - President and CEO
Presentation
Operator
Good afternoon. My name is Mindy and I will be your conference operator today. At this time, I would like to welcome everyone to the Flexsteel Industries Inc. fourth quarter and fiscal year operating results conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. (Operator Instructions).
Thank you, and now it gives me great pleasure to turn this call over to Timothy Hall, Vice President of Finance and Chief Financial Officer.
Timothy Hall
Thank you, Mindy. Good morning, everyone, and welcome to our fiscal-year 2009 fourth quarter and fiscal year operating results conference call. We appreciate your participation this morning. Joining me this morning from our corporate headquarters in Dubuque, Iowa, is Ron Klosterman, Flexsteel’s President and Chief Executive Officer.
During our call today, we may make forward-looking statements that are subject to risk and uncertainty. A discussion of the factors that cause actual results to differ materially from what we expect now is contained in the company’s SEC filings, including the most recent 10-K filed September 15, 2008, and the press release dated August 19, 2009, announcing the fiscal year 2009 operating results. Any forward-looking statements are opinion as of now, and we undertake no obligation to update or revise any forward-looking statements to reflect events or circumstances after today’s call. I have a few comments before I turn the call over to Ron for his comments and review of operation and business outlook.
As noted in the press release, our fourth quarter net sales each of our product categories declines in quarter versus prior-year quarter. Our residential seating was off 15% to $57 million; our commercial seating decreased 33% to $15 million; and our vehicle seating decreased 76% to $3 million. Overall, our net sales for the quarter declined 26% to $75 million.
For the fiscal year 2009, again, each of our product applications were lower than for fiscal year 2008. Our residential sales fell 10.6% to $231 million; commercial net sales were $77 million which is a decrease of about 15%; recreational vehicles’ net sales were down to $16 million or a 71% decrease. The decrease in net sales for the RV, which was our hardest hit application. Initially higher fuel prices caused sales to drop off some, but as credit tightened consumer confidence fell and disposable income began to shrink. The RV industry couldn’t recover from those things.
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