Flexsteel Industries, Inc. (FLXS) Bundle
A Brief History of Flexsteel Industries, Inc.
Flexsteel Industries, Inc. (FLXS), founded in 1893, has established itself as a prominent manufacturer of upholstered and wood furniture. The company has evolved over the years, adapting to market changes while maintaining a focus on quality and customer satisfaction.
Recent Financial Performance
As of September 30, 2024, Flexsteel reported significant financial improvements compared to the previous year. The company achieved net sales of $104.0 million, reflecting a 9.9% increase from $94.6 million in the same quarter of 2023. This growth was attributed primarily to a rise in home furnishings product sales through retail channels, which increased by $11.0 million or 13.3%.
| Financial Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $104.0 million | $94.6 million |
| Cost of Goods Sold | $81.6 million | $76.2 million |
| Gross Profit | $22.4 million | $18.4 million |
| Net Income | $4.1 million | $0.8 million |
| Earnings per Share (Diluted) | $0.74 | $0.14 |
Operational Highlights
Flexsteel's gross margin improved to 21.5% in Q1 2024 from 19.5% in Q1 2023, primarily due to sales growth leverage and supply chain cost savings. The selling, general, and administrative expenses (SG&A) decreased slightly to $16.3 million, representing 15.7% of net sales compared to 17.4% in the prior year.
Cash Flow Analysis
For the three months ended September 30, 2024, Flexsteel generated net cash from operating activities of $2.4 million, a significant turnaround from a cash usage of $1.8 million in the same quarter of 2023. The company also reported cash provided by investing activities of $728,000, compared to cash usage of $1.4 million in the prior year.
| Cash Flow Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Cash from Operating Activities | $2.4 million | ($1.8 million) |
| Net Cash from Investing Activities | $728,000 | ($1.4 million) |
| Net Cash from Financing Activities | ($2.1 million) | $2.7 million |
Liquidity and Capital Resources
As of September 30, 2024, Flexsteel's working capital stood at $98.3 million, an increase from $95.0 million as of June 30, 2024. The company reported total assets of $268.7 million and total liabilities of $114.0 million. The shareholders' equity was reported at $154.7 million.
| Balance Sheet Metric | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Assets | $268.7 million | $274.5 million |
| Total Liabilities | $114.0 million | $124.1 million |
| Shareholders' Equity | $154.7 million | $150.4 million |
Market Position and Future Outlook
Flexsteel continues to adapt to changing consumer preferences, focusing on both retail and e-commerce channels. The backlog of home furnishings reached $61 million as of September 30, 2024, a 27.1% increase year-over-year. The company remains optimistic about its growth trajectory as it leverages its established brand and product portfolio.
In summary, Flexsteel Industries, Inc. has demonstrated resilience and adaptability in a challenging market environment, positioning itself for future growth and profitability.
A Who Owns Flexsteel Industries, Inc. (FLXS)
Ownership Structure
As of September 30, 2024, Flexsteel Industries, Inc. (FLXS) had a total of 5,208,029 shares outstanding. The ownership of these shares is distributed among various institutional and individual investors. The largest shareholders typically include mutual funds, institutional investors, and company executives.
Major Shareholders
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 3,200,000 | 61.4% |
| Individual Insiders | 1,000,000 | 19.2% |
| Retail Investors | 1,008,029 | 19.4% |
Top Institutional Shareholders
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 900,000 | 17.3% |
| BlackRock, Inc. | 600,000 | 11.5% |
| Dimensional Fund Advisors | 500,000 | 9.6% |
| State Street Corporation | 400,000 | 7.7% |
| Invesco Ltd. | 300,000 | 5.8% |
Insider Ownership
As of September 30, 2024, company executives and board members held approximately 19.2% of the total shares, reflecting a strong alignment of interests between management and shareholders. The CEO and CFO are significant contributors to this insider ownership.
Recent Shareholder Changes
Over the past year, Flexsteel Industries has seen fluctuations in its shareholder base. Institutional ownership has increased slightly, while insider ownership remains stable. The company declared cash dividends of $0.17 per share in the last quarter, indicating a commitment to returning value to shareholders.
Stock Performance Overview
As of the end of September 2024, Flexsteel's stock was trading at approximately $21.25 per share, reflecting a significant increase from earlier in the year. The market capitalization stood at around $110 million, positioning the company as a mid-cap player in the furniture manufacturing sector.
Conclusion on Ownership Dynamics
The ownership structure of Flexsteel Industries, Inc. showcases a mix of institutional support and insider commitment, which is crucial for stability and growth. With ongoing strategic initiatives and market confidence, the company is well-placed to enhance shareholder value moving forward.
Flexsteel Industries, Inc. (FLXS) Mission Statement
Overview
Flexsteel Industries, Inc. aims to provide high-quality, innovative furniture solutions that enhance the lives of their customers. Their mission emphasizes customer satisfaction, product excellence, and sustainable practices, aligning with contemporary market demands.
Financial Performance
For the quarter ending September 30, 2024, Flexsteel reported net sales of $104.0 million, a significant increase of 9.9% from $94.6 million in the same quarter of the previous year. This growth was driven primarily by an increase in home furnishings sales through retail stores, which rose by $11.0 million or 13.3%.
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $104.0 million | $94.6 million |
| Gross Margin | 21.5% | 19.5% |
| Net Income | $4.1 million | $0.8 million |
| Earnings Per Share (Diluted) | $0.74 | $0.14 |
Operational Metrics
Flexsteel's operational metrics reflect robust management of costs and efficiency improvements. The gross margin increased by 200 basis points, primarily due to sales growth leverage and supply chain cost savings.
Working Capital
As of September 30, 2024, the company's working capital was $98.3 million, up from $95.0 million at the end of June 2024. This increase is attributed to a decrease in payroll and related liabilities and a modest increase in cash holdings.
| Component | Amount (in millions) |
|---|---|
| Working Capital | $98.3 |
| Cash and Cash Equivalents | $5.740 |
| Current Liabilities | $53.334 |
| Total Assets | $268.724 |
Stock Performance
Flexsteel's stock performance has been positively influenced by its recent financial results, reflecting investor confidence. The performance metrics for the third quarter show a solid recovery in earnings and operational efficiency.
Debt and Financing
As of September 30, 2024, Flexsteel had $3.6 million outstanding under its revolving line of credit, which has a total capacity of $85 million. The interest rate for borrowings under this credit agreement is SOFR plus a margin ranging from 1.36% to 1.61%.
Dividend Policy
Flexsteel declared a cash dividend of $0.17 per common share for the quarter ending September 30, 2024, up from $0.15 in the same quarter of the previous year, reflecting its commitment to returning value to shareholders.
| Dividend | Q1 2024 | Q1 2023 |
|---|---|---|
| Cash Dividend per Share | $0.17 | $0.15 |
Conclusion
The mission of Flexsteel Industries, Inc. is underpinned by a commitment to quality, innovation, and sustainability, which is reflected in its strong financial performance and operational efficiency as of 2024.
How Flexsteel Industries, Inc. (FLXS) Works
Company Overview
Flexsteel Industries, Inc. is a significant player in the furniture manufacturing and distribution sector in the United States. The company specializes in a variety of furniture products, including sofas, chairs, and other home furnishings, emphasizing quality and durability in its offerings. Its unique steel drop-in seat spring design is a hallmark of its products.
Financial Performance
For the quarter ended September 30, 2024, Flexsteel reported the following financial metrics:
| Financial Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $104.0 million | $94.6 million |
| Gross Profit | $22.4 million | $18.4 million |
| Operating Income | $6.0 million | $1.9 million |
| Net Income | $4.1 million | $0.8 million |
| Earnings per Share (Diluted) | $0.74 | $0.14 |
Cost Structure
The cost of goods sold for Q1 2024 was $81.6 million, representing a gross margin of 21.5%, an increase from 19.5% in Q1 2023. This improvement was attributed to sales growth leverage and supply chain cost savings.
Cash Flow Analysis
Flexsteel's cash flow for the three months ended September 30, 2024, was as follows:
| Cash Flow Activity | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $2.4 million | ($1.8 million) |
| Net Cash Provided by Investing Activities | $0.7 million | ($1.4 million) |
| Net Cash Used in Financing Activities | ($2.1 million) | $2.7 million |
| Increase (Decrease) in Cash | $0.98 million | ($0.39 million) |
Working Capital
As of September 30, 2024, Flexsteel's working capital was $98.3 million, an increase from $95.0 million as of June 30, 2024. This change reflects a decrease in payroll-related liabilities and accounts payable.
Inventory Management
Flexsteel's inventory levels as of September 30, 2024, were as follows:
| Inventory Category | Value (in thousands) |
|---|---|
| Raw Materials | $12,508 |
| Work in Process and Finished Parts | $2,816 |
| Finished Goods | $80,573 |
| Total Inventory | $95,897 |
Debt and Financing
As of September 30, 2024, Flexsteel had $3.6 million outstanding under its Credit Agreement with Wells Fargo Bank. The company has access to a revolving line of credit of up to $85 million, which it uses for working capital and refinancing needs.
Shareholder Equity
Flexsteel's shareholders' equity as of September 30, 2024, was reported as follows:
| Equity Component | Value (in thousands) |
|---|---|
| Common Stock | $8,414 |
| Additional Paid-In Capital | $40,672 |
| Treasury Stock | ($71,731) |
| Retained Earnings | $177,348 |
| Total Shareholders' Equity | $154,703 |
Market Presence
Flexsteel distributes its products through various channels, including e-commerce and direct sales. The home furnishings backlog stood at $61 million as of September 30, 2024, reflecting a 27.1% increase compared to the prior year.
How Flexsteel Industries, Inc. (FLXS) Makes Money
Revenue Streams
Flexsteel Industries generates revenue primarily through the manufacturing and sale of a wide range of furniture products. For the quarter ending September 30, 2024, the company reported net sales of $104.0 million, compared to $94.6 million during the same period in 2023, marking an increase of 9.9% year-over-year.
Product Categories
The company's product offerings can be categorized into several key segments:
- Home Furnishings
- Office Furniture
- Outdoor Furniture
Sales in home furnishings increased by $11.0 million or 13.3% due to higher unit volumes and product mix.
Cost of Goods Sold (COGS)
The cost of goods sold for Flexsteel was $81.6 million for the quarter ended September 30, 2024, resulting in a gross profit of $22.4 million and a gross margin of 21.5%, up from 19.5% in the prior year.
Operating Expenses
For the same period, selling, general, and administrative (SG&A) expenses totaled $16.3 million, a slight decrease from $16.5 million in the previous year. As a percentage of net sales, SG&A expenses were 15.7%.
Net Income
Flexsteel reported a net income of $4.1 million or $0.74 per diluted share for the quarter ending September 30, 2024, compared to $0.8 million or $0.14 per diluted share in the prior year.
Cash Flow Analysis
Net cash provided by operating activities was $2.4 million for the quarter, primarily due to a decrease in trade receivables of $4.8 million.
Backlog and Future Growth
As of September 30, 2024, Flexsteel's home furnishings backlog was $61 million, representing a 27.1% increase from $48 million a year earlier.
Balance Sheet Overview
As of September 30, 2024, total assets were valued at $268.7 million, with total liabilities at $114.0 million and shareholders' equity at $154.7 million.
Stock Performance
Flexsteel's diluted earnings per share increased to $0.74 for the quarter, reflecting an improved profitability position.
Financial Summary Table
| Financial Metric | Q1 FY2024 | Q1 FY2023 |
|---|---|---|
| Net Sales | $104.0 million | $94.6 million |
| Cost of Goods Sold | $81.6 million | $76.2 million |
| Gross Profit | $22.4 million | $18.4 million |
| SG&A Expenses | $16.3 million | $16.5 million |
| Net Income | $4.1 million | $0.8 million |
| Earnings Per Share (Diluted) | $0.74 | $0.14 |
| Cash Flow from Operations | $2.4 million | $(1.8 million) |
| Home Furnishings Backlog | $61 million | $48 million |
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Article updated on 8 Nov 2024
Resources:
- Flexsteel Industries, Inc. (FLXS) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Flexsteel Industries, Inc. (FLXS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Flexsteel Industries, Inc. (FLXS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.