UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
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FORM
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For the quarterly period ended
or
For the transition period from to
Commission file number
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(Exact Name of Registrant as Specified in Its Charter)
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Incorporated in the State of | |
(State or other Jurisdiction of | (I.R.S. Identification No.) |
Incorporation or Organization) |
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(Address of Principal Executive Offices) (Zip Code)
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(Registrant’s Telephone Number, Including Area Code)
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
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 a 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.
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).
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 ¨
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
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Common Stock - $1.00 Par Value |
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Shares Outstanding as of February 8, 2023 | |
FLEXSTEEL INDUSTRIES, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2022
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Part I – Financial Information | ||
Item 1. | 3 | |
| Consolidated Balance Sheets as of December 31, 2022, and June 30, 2022 (Unaudited) | 3 |
| 4 | |
| 5 | |
| 6 | |
| 7 | |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 14 |
Item 3. | 17 | |
Item 4. | 17 | |
Part II – Other Information | ||
Item 1A. | 18 | |
Item 2. | 18 | |
Item 6. | 19 | |
| 20 |
PART I FINANCIAL INFORMATION
Item 1.Financial Statements
FLEXSTEEL INDUSTRIES, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in thousands)
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| December 31, |
| June 30, | ||
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| 2022 | ||
ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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Trade receivables - less allowances: December 31, 2022, $ |
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Inventories |
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Other |
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Assets held for sale |
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Total current assets |
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NONCURRENT ASSETS: |
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Property, plant and equipment, net |
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Operating lease right-of-use assets |
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Other assets |
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TOTAL ASSETS |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable - trade |
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Current portion of operating lease liabilities |
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Accrued liabilities: |
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Payroll and related items |
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Insurance |
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Restructuring costs |
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Advertising |
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Environmental remediation |
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Other |
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Total current liabilities |
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LONG-TERM LIABILITIES: |
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Operating lease liabilities, less current maturities |
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Lines of credit |
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Other liabilities |
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Total liabilities |
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SHAREHOLDERS' EQUITY: |
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Common stock - $ |
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Additional paid-in capital |
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Treasury stock, at cost; June 30, 2022, respectively |
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Retained earnings |
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Total shareholders' equity |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
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See accompanying Notes to Consolidated Financial Statements (Unaudited).
FLEXSTEEL INDUSTRIES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(Amounts in thousands, except per share data)
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| Three Months Ended |
| Six Months Ended | ||||||||
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| 2021 |
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| 2021 | ||||
Net sales |
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Cost of goods sold |
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Gross margin |
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Selling, general and administrative expenses |
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Environmental remediation |
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Restructuring expense |
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Other expense |
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Gain on disposal of assets due to restructuring |
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Operating income (loss) |
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Interest expense |
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Other (income) expense |
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Income (loss) before income taxes |
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Income tax provision (benefit) |
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Net income (loss) and comprehensive income (loss) |
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Weighted average number of common shares outstanding: |
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Basic |
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Diluted |
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Earnings (loss) per share of common stock: |
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Basic |
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Diluted |
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See accompanying Notes to Consolidated Financial Statements (Unaudited).
FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(Amounts in thousands)
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| Six Months Ended December 31, 2022 | |||||||||||||
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| Total Par |
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| Value of |
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| Shares ($ |
| Capital |
| Stock |
| Earnings |
| Total | |||||
Balance on June 30, 2022 |
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Stock-based compensation |
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Vesting of restricted stock units and restricted shares |
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Treasury stock purchases |
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Cash dividends declared |
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Net income |
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Balance on September 30, 2022 |
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Stock-based compensation |
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Vesting of restricted stock units and restricted shares |
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Treasury stock purchases |
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Cash dividends declared |
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Net income |
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Balance on December 31, 2022 |
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| Six Months Ended December 31, 2021 | |||||||||||||
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| Total Par |
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| Value of |
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| Shares ($ |
| Capital |
| Stock |
| Earnings |
| Total | |||||
Balance on June 30, 2021 |
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Stock-based compensation |
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Vesting of restricted stock units and restricted shares |
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Treasury stock purchases |
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Cash dividends declared |
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Net income |
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Balance on September 30, 2021 |
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Stock-based compensation |
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Vesting of restricted stock units and restricted shares |
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Stock options exercised |
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Treasury stock purchases |
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Cash dividends declared |
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Net income |
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Balance on December 31, 2021 |
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See accompanying Notes to Consolidated Financial Statements (Unaudited).
FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)
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| Six Months Ended | ||||
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| December 31, | ||||
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| 2021 | ||
OPERATING ACTIVITIES: |
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Net income (loss) |
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Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
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Depreciation |
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Stock-based compensation expense |
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Change in provision for losses on accounts receivable |
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(Gain) on disposal of assets |
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Changes in operating assets and liabilities: |
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Trade receivables |
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Inventories |
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Other current assets |
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Other assets |
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Accounts payable - trade |
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Accrued liabilities |
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Other long-term liabilities |
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Net cash provided by (used in) operating activities |
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