Flexsteel Industries Earnings 2021-03-31

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

flxs-20210331x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

______________________________________

FORM 10-Q

______________________________________

þ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2021

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number 0-5151

______________________________________

FLEXSTEEL INDUSTRIES, INC.

(Exact Name of Registrant as Specified in Its Charter)


Incorporated in State of Minnesota	42-0442319
(State or other Jurisdiction of	(I.R.S. Identification No.)
Incorporation or Organization)

385 BELL STREET

DUBUQUE, IA 52001-0877

(Address of Principal Executive Offices) (Zip Code)

(563) 556-7730

(Registrant’s Telephone Number, Including Area Code)

______________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	FLXS	The Nasdaq Stock Market, LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act (check one).

Large Accelerated Filer ¨ Accelerated Filer þ Non-Accelerated Filer ¨ Smaller Reporting Company þ Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ


Common Stock - $1.00 Par Value
Shares Outstanding as of April 27, 2021	6,853,593

‎

Table of Contents

FLEXSTEEL INDUSTRIES, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2021


		Page
Part I – Financial Information
Item 1.	Financial Statements	3
	Consolidated Balance Sheets as of March 31, 2021 and June 30, 2020 (Unaudited)	3
	Consolidated Statements of Income for the three and nine months ended March 31, 2021 and March 31, 2020 (Unaudited)	4
	Consolidated Statements of Comprehensive Income for the three and nine months ended March 31, 2021 and March 31, 2020 (Unaudited)	4
	Consolidated Statements of Changes in Shareholders’ Equity for the nine months ended March 31, 2021 and March 31, 2020 (Unaudited)	5
	Consolidated Statements of Cash Flows for the nine months ended March 31, 2021 and March 31, 2010 (Unaudited)	6
	Notes to Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4.	Controls and Procedures	17
Part II – Other Information
Item 1A.	Risk Factors	18
Item 2A.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 6.	Exhibits	18
Signatures		19

‎

Table of Contents

PART I FINANCIAL INFORMATION

Item 1.Financial Statements

FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Amounts in thousands)



	March 31,		June 30,
	2021		2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	16,971	$	48,197
Trade receivables - less allowances: March 31, 2021, $3,050; June 30, 2020, $1,770		44,231		32,217
Inventories		109,448		70,565
Other		10,182		18,535
Assets held for sale		666		12,329
Total current assets		181,498		181,843
NONCURRENT ASSETS:
Property, plant and equipment, net		40,309		43,312
Operating lease right-of-use assets		28,539		8,683
Deferred income taxes		—		2,111
Other assets		1,384		1,310
TOTAL ASSETS	$	251,730	$	237,259

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - trade	$	31,798	$	27,747
Current portion of operating lease liabilities		5,741		4,408
Accrued liabilities:
Payroll and related items		4,914		3,275
Insurance		2,987		3,787
Restructuring costs		1,392		1,961
Advertising		4,730		3,823
Environmental remediation		3,570		3,600
Other		5,331		4,861
Total current liabilities		60,463		53,462
LONG-TERM LIABILITIES:
Operating lease liabilities, less current maturities		26,202		7,607
Other liabilities		1,539		685
Total liabilities		88,204		61,754

SHAREHOLDERS' EQUITY:
Common stock - $1 par value; authorized 15,000 shares; 8,125 shares issued and 6,875 outstanding as of March 31, 2021; 8,008 shares issued and 7,876 outstanding as of June 30, 2020		8,125		8,008
Additional paid-in capital		33,100		31,748
Treasury stock, at cost; 1,249 shares and 132 shares as of March 31, 2021 and June 30, 2020, respectively		(30,048)		(1,563)
Retained earnings		152,349		137,312
Total shareholders' equity		163,526		175,505
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	251,730	$	237,259

See accompanying Notes to Consolidated Financial Statements (Unaudited).

Table of Contents

FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Amounts in thousands, except per share data)


	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
Net sales	$	118,408	$	98,821	$	342,753	$	302,118
Cost of goods sold		95,284		84,973		272,436		254,999
Gross margin		23,124		13,848		70,317		47,119
Selling, general and administrative		16,292		20,115		49,378		55,678
Restructuring expense		480		2,377		2,724		13,448
Gain on disposal of assets due to restructuring		—		(302)		(5,881)		(19,269)
Operating income (loss)		6,352		(8,342)		24,096		(2,738)
Interest expense		—		(16)		—		(16)
Other income		59		135		270		328
Income (loss) before income taxes		6,411		(8,223)		24,366		(2,426)
Income tax provision (benefit)		1,533		(2,953)		7,159		(1,323)
Net income (loss)	$	4,878	$	(5,270)	$	17,207	$	(1,103)
Weighted average number of common shares outstanding:
Basic		6,998		7,965		7,316		7,955
Diluted		7,270		7,965		7,551		7,955
Earnings (loss) per share of common stock:
Basic	$	0.70	$	(0.66)	$	2.35	$	(0.14)
Diluted	$	0.67	$	(0.66)	$	2.28	$	(0.14)

See accompanying Notes to Consolidated Financial Statements (Unaudited).

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(Amounts in thousands)



	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
Net income (loss)	$	4,878	$	(5,270)	$	17,207	$	(1,103)
Other comprehensive loss:
Unrealized loss on securities		—		—		—		(18)
Reclassification of realized loss on securities to other income		—		—		—		7
Unrealized losses in securities before taxes		—		—		—		(11)
Income tax benefit related to securities losses		—		—		—		3
Other comprehensive loss, net of tax		—		—		—		(8)
Comprehensive income (loss)	$	4,878	$	(5,270)	$	17,207	$	(1,111)

See accompanying Notes to Consolidated Financial Statements (Unaudited).

‎

Table of Contents

FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)

(Amounts in thousands)



	Nine Months Ended March 31, 2021
	Total Par
	Value of		Additional
	Common		Paid-In		Treasury		Retained
	Shares ($1 Par)		Capital		Stock		Earnings		Total
Balance at June 30, 2020	$	8,008	$	31,748	$	(1,563)	$	137,312	$	175,505
Stock-based compensation		2		954		—		—		956
Vesting of restricted stock units and restricted shares		55		(387)						(332)
Treasury stock purchases		—		—		(9,000)		—		(9,000)
Cash dividends declared		—		—		—		(383)		(383)
Net income		—		—		—		3,879		3,879
Balance at September 30, 2020	$	8,065	$	32,315	$	(10,563)	$	140,808	$	170,625
Stock-based compensation		10		1,017		—		—		1,027
Stock options exercised		7		41		—		—		48
Treasury stock purchases		—		—		(11,013)		—		(11,013)
Cash dividends declared		—		—		—		(730)		(730)
Net income		—		—		—		8,450		8,450
Balance at December 31, 2020	$	8,082	$	33,373	$	(21,576)	$	148,528	$	168,407
Stock-based compensation		3		772		—		—		775
Vesting of restricted stock units and restricted shares		40		(1,045)		—		—		(1,005)
Treasury stock purchases		—		—		(8,472)		—		(8,472)
Cash dividends declared		—		—		—		(1,057)		(1,057)
Net income		—		—		—		4,878		4,878
Balance at March 31, 2021	$	8,125	$	33,100	$	(30,048)	$	152,349	$	163,526

Nine Months Ended March 31, 2020

Total Par

Price	15.01	EPS	-3
Shares	8	P/E	-5
MCap	123	P/FCF	-16
Net Debt	-36	EBIT	-21
TEV	87	TEV/EBIT	-4
TTM 2019-09-30, in MM, except price, ratios

10-Q	2021-03-31	Filed 2021-04-30
10-Q	2020-12-31	Filed 2021-01-29
10-Q	2020-09-30	Filed 2020-10-30
10-K	2020-06-30	Filed 2020-08-31
10-Q	2020-03-31	Filed 2020-05-01
10-Q	2019-12-31	Filed 2020-01-31
10-Q	2019-09-30	Filed 2019-10-31
10-K	2019-06-30	Filed 2019-09-13
10-Q	2019-03-31	Filed 2019-05-02
10-Q	2018-12-31	Filed 2019-02-06
10-Q	2018-09-30	Filed 2018-10-30
10-K	2018-06-30	Filed 2018-09-06
10-Q	2018-03-31	Filed 2018-05-02
10-Q	2017-12-31	Filed 2018-01-30
10-Q	2017-09-30	Filed 2017-10-25
10-K	2017-06-30	Filed 2017-08-22
10-Q	2017-03-31	Filed 2017-04-26
10-Q	2016-12-31	Filed 2017-02-08
10-Q	2016-09-30	Filed 2016-10-25
10-K	2016-06-30	Filed 2016-08-24
10-Q	2016-03-31	Filed 2016-04-22
10-Q	2015-12-31	Filed 2016-02-09
10-Q	2015-09-30	Filed 2015-10-21
10-K	2015-06-30	Filed 2015-08-28
10-Q	2015-03-31	Filed 2015-04-23
10-Q	2014-12-31	Filed 2015-02-09
10-Q	2014-09-30	Filed 2014-10-17
10-K	2014-06-30	Filed 2014-08-28
10-Q	2014-03-31	Filed 2014-04-22
10-Q	2013-12-31	Filed 2014-02-10
10-Q	2013-09-30	Filed 2013-10-18
10-K	2013-06-30	Filed 2013-08-23
10-Q	2013-03-31	Filed 2013-04-18
10-Q	2012-12-31	Filed 2013-02-08
10-Q	2012-09-30	Filed 2012-10-19
10-K	2012-06-30	Filed 2012-08-22
10-Q	2012-03-31	Filed 2012-04-19
10-Q	2011-12-31	Filed 2012-02-07
10-Q	2011-09-30	Filed 2011-10-24
10-K	2011-06-30	Filed 2011-08-19
10-Q	2011-03-31	Filed 2011-04-21
10-Q	2010-12-31	Filed 2011-02-08
10-Q	2010-09-30	Filed 2010-10-22
10-K	2010-06-30	Filed 2010-08-26
10-Q	2010-03-31	Filed 2010-04-23
10-Q	2009-12-31	Filed 2010-02-09

8-K	2021-01-25	Earnings, Regulation FD, Exhibits
8-K	2020-12-09	Officers, Shareholder Vote, Exhibits
8-K	2020-10-26
8-K	2020-09-01
8-K	2020-08-24
8-K	2020-06-07
8-K	2020-06-01
8-K	2020-05-01
8-K	2020-04-28
8-K	2020-04-13
8-K	2020-03-18
8-K	2020-03-11
8-K	2020-01-27
8-K	2019-12-31
8-K	2019-12-09
8-K	2019-10-28
8-K	2019-09-20
8-K	2019-09-08
8-K	2019-08-29
8-K	2019-08-27
8-K	2019-08-26
8-K	2019-06-27
8-K	2019-06-17
8-K	2019-05-15
8-K	2019-04-29
8-K	2019-02-04
8-K	2019-01-28
8-K	2019-01-09
8-K	2018-12-24
8-K	2018-12-17
8-K	2018-12-10
8-K	2018-10-29
8-K	2018-10-25
8-K	2018-09-21
8-K	2018-09-09
8-K	2018-08-23
8-K	2018-07-05
8-K	2018-06-05
8-K	2018-04-26
8-K	2018-01-25
8-K	2018-01-24
8-K	2018-01-02

EX-31.1	flxs-20210331xex31_1.htm
EX-31.2	flxs-20210331xex31_2.htm
EX-32	flxs-20210331xex32.htm

FLXS 10Q Quarterly Report

Flexsteel Industries Earnings 2021-03-31