Flexsteel Industries Q2 2025 Update
Ticker: FLXS · Form: 10-Q · Filed: Feb 5, 2025 · CIK: 37472
Sentiment: neutral
Topics: financials, 10-Q, equity, compensation
TL;DR
Flexsteel's Q2 2025 financials are in, showing shifts in equity and compensation plans.
AI Summary
Flexsteel Industries Inc. reported its Q2 2025 results for the period ending December 31, 2024. The company's financial statements show changes in common stock, additional paid-in capital, retained earnings, and treasury stock. Key financial instruments and compensation plans, such as performance shares and restricted stock units, were also detailed.
Why It Matters
This filing provides insight into Flexsteel's financial health and operational performance during the second quarter of fiscal year 2025, impacting investor confidence and strategic decisions.
Risk Assessment
Risk Level: medium — The filing details financial performance and capital structure, which can indicate potential risks or opportunities for investors.
Key Numbers
- Q2 2025 — Fiscal Quarter (Reporting period for the 10-Q filing.)
- 0630 — Fiscal Year End (Indicates the end of the company's fiscal year.)
Key Players & Entities
- FLEXSTEEL INDUSTRIES INC (company) — Filer
- 20241231 (date) — Conformed Period of Report
- 20250205 (date) — Filed as of Date
- Wells Fargo Bank N.a. (company) — Financial Institution
FAQ
What were the key changes in Flexsteel's equity accounts during Q2 2025?
The filing indicates changes in common stock, additional paid-in capital, retained earnings, and treasury stock for the period ending December 31, 2024.
What is the reporting period for this 10-Q filing?
The conformed period of report is for the quarter ending December 31, 2024 (Q2 2025).
When was this 10-Q filing submitted to the SEC?
The filing was submitted on February 5, 2025.
What types of compensation plans are mentioned in the filing?
The filing mentions Long-Term Management Incentive Compensation Plans, including performance shares and restricted stock units (RSUs).
Which financial institution is mentioned in relation to a credit agreement?
Wells Fargo Bank N.a. is mentioned in relation to a credit agreement and Secured Overnight Financing Rate (SOFR) overnight index swap rate.
Filing Stats: 4,502 words · 18 min read · ~15 pages · Grade level 12.3 · Accepted 2025-02-05 17:06:17
Key Financial Figures
- $1.00 — Exchange Act). Yes No Common Stock - $1.00 Par Value Shares Outstanding as of Fe
Filing Documents
- flxs-20241231.htm (10-Q) — 1432KB
- flxs-ex31_1.htm (EX-31.1) — 17KB
- flxs-ex31_2.htm (EX-31.2) — 13KB
- flxs-ex32.htm (EX-32) — 8KB
- 0000950170-25-014645.txt ( ) — 5583KB
- flxs-20241231.xsd (EX-101.SCH) — 743KB
- flxs-20241231_htm.xml (XML) — 960KB
– Financial Information
Part I – Financial Information Item 1.
Financial Statements
Financial Statements 3 Consolidated Balance Sheets as of December 31, 2024, and June 30, 2024 (Unaudited) 3 Consolidated Statements of Income and Comprehensive Income for three and six months ended December 31, 2024, and December 31, 2023 (Unaudited) 4 Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended December 31, 2024, and December 31, 2023 (Unaudited) 5 Consolidated Statements of Cash Flows for the six months ended December 31, 2024, and December 31, 2023 (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 13 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 16
– 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 5. Other Information 18 Item 6. Exhibits 18
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, 2024 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 11,789 $ 4,761 Trade receivables - less allowances: December 31, 2024, $ 2,436 , June 30, 2024, $ 2,440 36,310 44,238 Inventories 91,042 96,577 Other 9,910 8,098 Assets held for sale — 1,707 Total current assets 149,051 155,381 NONCURRENT ASSETS: Property, plant and equipment, net 36,414 36,709 Operating lease right-of-use assets 61,587 61,439 Deferred income taxes 8,606 8,607 Other assets 15,889 12,326 TOTAL ASSETS $ 271,547 $ 274,462 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable - trade $ 20,712 $ 25,830 Current portion of operating lease liabilities 8,035 7,517 Accrued liabilities: Payroll and related items 7,482 12,059 Insurance 1,953 1,900 Sales and advertising related items 6,650 6,073 Other 6,036 7,027 Total current liabilities 50,868 60,406 LONG-TERM LIABILITIES: Operating lease liabilities, less current maturities 57,774 58,076 Line of credit — 4,822 Other liabilities 985 791 Total liabilities 109,627 124,095 SHAREHOLDERS' EQUITY: Common stock - $ 1 par value; authorized 15,000 shares; 8,477 shares issued and 5,270 outstanding as of December 31, 2024; 8,407 shares issued and 5,200 outstanding as of June 30, 2024 8,477 8,407 Additional paid-in capital 39,694 39,573 Treasury stock, at cost; 3,207 shares as of December 31, 2024, and June 30, 2024 ( 71,731 ) ( 71,731 ) Retained earnings 185,480 174,118 Total shareholders' equity 161,920 150,367 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 271,547 $ 274,462 See accompanying Notes to Consolidated Financial Statements (Un
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) FOR THE PERIOD ENDED December 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 six months ended December 31, 2024, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2025. 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