The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Wed Aug 16, 2017
DUBUQUE, Iowa - Flexsteel Industries, Inc. has reported a 7.1 percent increase in net sales during the fourth quarter.
Highlights of the report include:
-Net sales increased to a record $500 million, a 7.1 percent increase;
-Net income increased to a record $24 million, an 8.7 percent increase; and
-Ending cash balance increased $35 million, after eliminating all borrowings.
Residential net sales increased but were partially offset by lower delivery charges associated with lower fuel costs. The increase in commercial net sales was evenly split between price and volume.
This was the third consecutive year of record net sales and the seventh consecutive year of growth. The increase in residential net sales was substantially due to increased sales volume in upholstered and ready-to-assemble products partially offset by discounting of certain case goods and lower delivery charges associated with lower fuel costs. The increase in commercial net sales was substantially due to volume.
Gross margin as a percent of net sales for the quarter ended June 30 was 24 percent compared to 22.7 percent for the prior year quarter. In the current quarter, the company received a settlement of $1.3 million from the Polyurethane Foam Antitrust Litigation, contributing 1.1 percent to the improved gross margin.
For the fiscal year ended June 30, gross margin as a percent of net sales was 22.7 percent compared to 23.5 percent for the prior fiscal year. The company’s investment in its expanded distribution network, designed to meet current and future customer needs while improving operations became operational in the fourth quarter of fiscal year 2015. This investment increased costs by $2.5 million during fiscal year 2016 or 0.5 percent of net sales.
The company believes that demand for furniture products in the United States continues to be modest due to political and economic uncertainty. The company may experience lower residential net sales in the first half of fiscal 2017 versus the prior year, when backlog was shipped due to the clearing of the west coast port congestion. The company expects commercial net sales growth to continue during fiscal 2017. The company will focus on streamlining product commercialization to increase sales with customers and continue controlling discretionary spending, according to a press release.
During fiscal year 2017, Flexsteel expects to have the following expenditures:
-$14 million for capital expenditures and $3.5 million as SG&A expense for upgrading its business information systems to better meet market conditions, customer requirements and increasing operating efficiency; and
-$4 million in operating capital expenditures.
During the next two fiscal years, Flexsteel plans to invest $25 million in North American manufacturing infrastructure to address aging facilities and improve efficiency. 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. The company will maintain its focus on a strong balance sheet through emphasis on cash flow and increasing profitability.