Flexsteel Industries Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Flexsteel Industries Inc. filed its Q2 2024 10-Q report, detailing financial data and corporate actions as of December 31, 2023.</b>

AI Summary

FLEXSTEEL INDUSTRIES INC (FLXS) filed a Quarterly Report (10-Q) with the SEC on February 7, 2024. Flexsteel Industries Inc. filed a 10-Q report for the period ending December 31, 2023. The filing covers the second quarter of fiscal year 2024. Key dates mentioned include 2023-12-31, 2023-09-30, and 2022-12-31 for financial reporting. The company is incorporated in Minnesota (MN) and operates in the Household Furniture SIC code [2510]. The filing references a Credit Agreement with Wells Fargo Bank, N.A., with dates including 2021-09-08 and 2023-07-01.

Why It Matters

For investors and stakeholders tracking FLEXSTEEL INDUSTRIES INC, this filing contains several important signals. This 10-Q filing provides investors with an updated view of Flexsteel's financial health and operational performance for the second quarter of fiscal year 2024. The inclusion of specific dates for credit agreements and stock-based compensation plans offers insight into the company's financial structure and executive compensation strategies.

Risk Assessment

Risk Level: medium — FLEXSTEEL INDUSTRIES INC shows moderate risk based on this filing. The filing contains numerous specific dates and financial terms, indicating a detailed reporting process, but lacks explicit financial performance metrics like revenue or net income, requiring further analysis of the full document.

Analyst Insight

Review the full 10-Q filing to extract specific financial performance data, including revenue, net income, and debt levels, to assess the company's current financial standing.

Key Numbers

• 20231231 — Period End Date (Conformed period of report)
• 20240207 — Filing Date (Filed as of date)
• Q2 — Fiscal Quarter (Reporting period)
• 2024 — Fiscal Year (Reporting period)
• 0630 — Fiscal Year End (Company's fiscal year end)
• 2510 — SIC Code (Standard Industrial Classification for Household Furniture)
• MN — State of Incorporation (State where Flexsteel Industries Inc. is incorporated)
• 3195567730 — Business Phone (Contact phone number for the company)

Key Players & Entities

• FLEXSTEEL INDUSTRIES INC (company) — Filer name
• FLXS (company) — Ticker symbol
• 20231231 (date) — Conformed period of report
• 20240207 (date) — Filed as of date
• 0000037472 (company) — Central Index Key
• Wells Fargo Bank, N.A. (company) — Bank mentioned in relation to Credit Agreement
• 3195567730 (phone) — Business phone number
• Environmental Protection Agency (regulator) — Agency mentioned

Forward-Looking Statements

• Flexsteel's profitability will remain challenged in the near term due to ongoing soft demand and restructuring costs. (Flexsteel Industries Inc.) — medium confidence, target: 2024-06-30
• The workforce reduction and facility closure will lead to improved operating margins in the long term, assuming demand stabilizes. (Flexsteel Industries Inc.) — medium confidence, target: 2025-12-31

FAQ

Risk Factors

• Environmental Regulations [medium — regulatory]: The company's operations are subject to environmental regulations, as indicated by a mention of the Environmental Protection Agency (EPA).

Key Dates

• 2023-12-31: Period End Date — End of the reporting period for the 10-Q filing.
• 2024-02-07: Filing Date — Date the 10-Q report was officially filed with the SEC.

Key Financial Figures

• $1.00 — Exchange Act). Yes No Common Stock - $1.00 Par Value Shares Outstanding as of Fe

Filing Documents

• flxs-20231231.htm (10-Q) — 1187KB
• flxs-ex31_1.htm (EX-31.1) — 12KB
• flxs-ex31_2.htm (EX-31.2) — 12KB
• flxs-ex32.htm (EX-32) — 8KB
• 0000950170-24-012208.txt (&nbsp;) — 5161KB
• flxs-20231231.xsd (EX-101.SCH) — 795KB
• flxs-20231231_htm.xml (XML) — 876KB

– Financial Information

Part I – Financial Information Item 1.

Financial Statements

Financial Statements 3 Consolidated Balance Sheets as of December 31, 2023, and June 30, 2023 (Unaudited) 3 Consolidated Statements of Income and Comprehensive Income for three and six months ended December 31, 2023, and December 31, 2022 (Unaudited) 4 Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended December 31, 2023, and December 31, 2022 (Unaudited) 5 Consolidated Statements of Cash Flows for the six months ended December 31, 2023, and December 31, 2022 (Unaudited) 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 16 Item 4.

Controls and Procedures

Controls and Procedures 17

– Other Information

Part II – Other Information Item 1A.

Risk Factors

Risk Factors 17 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17 Item 6. Exhibits 18

Signatures

Signatures 19 2 Table of Contents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Ite m 1. Financial Statements FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in thousands) December 31, June 30, 2023 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 3,312 $ 3,365 Trade receivables - less allowances: December 31, 2023, $ 2,460 , June 30, 2023, $ 2,600 31,401 38,168 Inventories 105,238 122,076 Other 8,545 6,417 Assets held for sale 616 616 Total current assets 149,112 170,642 NONCURRENT ASSETS: Property, plant and equipment, net 39,848 38,652 Operating lease right-of-use assets 65,341 68,294 Deferred income taxes 7,070 7,154 Other assets 11,105 5,808 TOTAL ASSETS $ 272,476 $ 290,550 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable - trade $ 19,825 $ 24,745 Current portion of operating lease liabilities 7,565 7,179 Accrued liabilities: Payroll and related items 7,382 9,955 Insurance 1,989 1,920 Sales and advertising related items 5,427 5,358 Other 6,401 5,948 Total current liabilities 48,589 55,105 LONG-TERM LIABILITIES: Operating lease liabilities, less current maturities 61,813 64,974 Line of credit 17,898 28,273 Other liabilities 643 577 Total liabilities 128,943 148,929 SHAREHOLDERS' EQUITY: Common stock - $ 1 par value; authorized 15,000 shares; 8,357 shares issued and 5,163 outstanding as of December 31, 2023; 8,292 shares issued and 5,174 outstanding as of June 30, 2023 8,357 8,292 Additional paid-in capital 37,697 36,605 Treasury stock, at cost; 3,194 shares, and 3,118 shares as of December 31, 2023, and June 30, 2023, respectively ( 71,499 ) ( 70,072 ) Retained earnings 168,978 166,796 Total shareholders' equity 143,533 141,621 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 272,476 $ 290,550 See accompanying Notes to

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) FOR THE PERIOD ENDED December 31, 2023 1. BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS DESCRIPTION OF BUSINESS – Flexsteel Industries, Inc. and Subsidiaries (the "Company" or "Flexsteel" or "Our") is one of the largest manufacturers, importers, and marketers of furniture products in the United States. Product offerings include a wide variety of furniture such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor furniture. A featured component in most of the upholstered furniture is a unique steel drop-in seat spring from which the name "Flexsteel" is derived. The Company distributes its products throughout the United States through its e-commerce channel and direct sales force. BASIS OF PRESENTATION – The unaudited Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The information contained in the Consolidated Financial Statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such Consolidated Financial Statements. Operating results for the three and six months ended December 31, 2023, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2024. Certain information and footnote disclosures normally included in the Consolidated Financial Statements prepared in accordance with generally accepted accounting principles ("GAAP") in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Except to the extent updated or described below, the signifi

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