Flexsteel Industries Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Flexsteel Industries Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing financial statements and stock-related activities.</b>

AI Summary

FLEXSTEEL INDUSTRIES INC (FLXS) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Flexsteel Industries Inc. filed a 10-Q report for the period ending March 31, 2024. The filing references various stock plans including the New Omnibus Stock Plan and Long-Term Management Incentive Compensation Plan. Key financial statement items such as Retained Earnings, Additional Paid In Capital, and Treasury Stock are detailed for multiple periods. The company's Credit Agreement with Wells Fargo Bank, N.A. is a recurring mention. Specific dates related to stock awards, credit agreements, and facility closures are noted.

Why It Matters

For investors and stakeholders tracking FLEXSTEEL INDUSTRIES INC, this filing contains several important signals. This filing provides an updated snapshot of Flexsteel's financial health and operational status as of Q3 FY2024. The details on stock plans and credit agreements offer insight into executive compensation, shareholder value, and the company's financing structure.

Risk Assessment

Risk Level: medium — FLEXSTEEL INDUSTRIES INC shows moderate risk based on this filing. The filing contains numerous specific financial data points and references to agreements, indicating a need for detailed review to assess the company's financial standing and potential risks.

Analyst Insight

Review the detailed financial statements and disclosures regarding stock-based compensation and credit agreements to understand the company's current financial position and future outlook.

Key Numbers

• 2024-03-31 — Period End Date (Conformed period of report)
• 2024-05-01 — Filing Date (Filed as of date)
• 0630 — Fiscal Year End (Company fiscal year end)
• 2510 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• FLEXSTEEL INDUSTRIES INC (company) — Filer name
• FLXS (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• Wells Fargo Bank, N.A. (company) — Mentioned in relation to Credit Agreement
• New Omnibus Stock Plan (other) — Mentioned in relation to stock awards
• Long-Term Management Incentive Compensation Plan (other) — Mentioned in relation to stock awards
• Environmental Protection Agency (EPA) (regulator) — Mentioned in relation to past dates
• DUBUQUE, IA (location) — Business and mailing address city/state

FAQ

Industry Context

Flexsteel Industries operates within the household furniture manufacturing sector.

Regulatory Implications

The filing is a standard 10-Q report required by the SEC for publicly traded companies.

What Investors Should Do

1. Analyze the detailed financial statements for the three and nine months ended March 31, 2024, and 2023.
2. Review disclosures related to stock-based compensation, including the New Omnibus Stock Plan and Long-Term Management Incentive Compensation Plan.
3. Examine the terms and conditions of the Credit Agreement with Wells Fargo Bank, N.A.

Year-Over-Year Comparison

This 10-Q filing provides updated financial information for the quarter ending March 31, 2024, compared to the same period in the prior year, though specific comparative figures are not detailed in the provided text.

Key Financial Figures

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

Filing Documents

• flxs-20240331.htm (10-Q) — 1351KB
• flxs-ex31_1.htm (EX-31.1) — 12KB
• flxs-ex31_2.htm (EX-31.2) — 12KB
• flxs-ex32.htm (EX-32) — 8KB
• 0000950170-24-051378.txt (&nbsp;) — 5698KB
• flxs-20240331.xsd (EX-101.SCH) — 806KB
• flxs-20240331_htm.xml (XML) — 1030KB

– Financial Information

Part I – Financial Information Item 1.

Financial Statements

Financial Statements 3 Consolidated Balance Sheets as of March 31, 2024, and June 30, 2023 (Unaudited) 3 Consolidated Statements of Income and Comprehensive Income for three and nine months ended March 31, 2024, and March 31, 2023 (Unaudited) 4 Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended March 31, 2024, and March 31, 2023 (Unaudited) 5 Consolidated Statements of Cash Flows for the nine months ended March 31, 2024, and March 31, 2023 (Unaudited) 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8 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 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 18 Item 4.

Controls and Procedures

Controls and Procedures 18

– Other Information

Part II – Other Information Item 1A.

Risk Factors

Risk Factors 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19 Item 6. Exhibits 19

Signatures

Signatures 20 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) March 31, June 30, 2024 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 4,570 $ 3,365 Trade receivables - less allowances: March 31, 2024, $ 2,451 , June 30, 2023, $ 2,600 38,884 38,168 Inventories 96,589 122,076 Other 9,235 6,417 Assets held for sale 616 616 Total current assets 149,894 170,642 NONCURRENT ASSETS: Property, plant and equipment, net 39,963 38,652 Operating lease right-of-use assets 63,398 68,294 Deferred income taxes 7,080 7,154 Other assets 13,431 5,808 TOTAL ASSETS $ 273,766 $ 290,550 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable - trade $ 21,655 $ 24,745 Current portion of operating lease liabilities 7,615 7,179 Accrued liabilities: Payroll and related items 9,306 9,955 Insurance 2,214 1,920 Restructuring costs 1,825 — Sales and advertising related items 4,568 5,358 Other 6,554 5,948 Total current liabilities 53,737 55,105 LONG-TERM LIABILITIES: Operating lease liabilities, less current maturities 59,892 64,974 Line of credit 14,184 28,273 Other liabilities 689 577 Total liabilities 128,502 148,929 SHAREHOLDERS' EQUITY: Common stock - $ 1 par value; authorized 15,000 shares; 8,363 shares issued and 5,156 outstanding as of March 31, 2024; 8,292 shares issued and 5,174 outstanding as of June 30, 2023 8,363 8,292 Additional paid-in capital 38,656 36,605 Treasury stock, at cost; 3,207 shares, and 3,118 shares as of March 31, 2024, and June 30, 2023, respectively ( 71,732 ) ( 70,072 ) Retained earnings 169,977 166,796 Total shareholders' equity 145,264 141,621 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 273,766 $ 290,550 See a

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) FOR THE PERIOD ENDED March 31, 2024 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 nine months ended March 31, 2024, 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 significant

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