Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

______________________________________

FORM 10-Q

______________________________________

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

For the quarterly period ended December 31, 2024

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

385 BELL STREET

DUBUQUE, IA 52001-7004

(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 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. Yes  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  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  Non-Accelerated Filer  Smaller Reporting Company  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 


Common Stock - $1.00 Par Value
Shares Outstanding as of February 5, 2025	5,269,367

FLEXSTEEL INDUSTRIES, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED December 31, 2024


		Page
Part I – Financial Information
Item 1.	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)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	16
Item 4.	Controls and Procedures	16
Part II – Other Information
Item 1A.	Risk Factors	17
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	17
Item 5.	Other Information	18
Item 6.	Exhibits	18
Signatures		19

PART I FINANCIAL INFORMATION

Item 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 (Unaudited).

FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

(Amounts in thousands, except per share data)


	Three Months Ended					Six Months Ended
	December 31,					December 31,
	2024			2023		2024			2023
Net sales	$	108,483		$	100,108	$	212,490		$	194,711
Cost of goods sold		85,678			78,158		167,318			154,351
Gross profit		22,805			21,950		45,172			40,360
Selling, general and administrative expenses		16,142			17,366		32,462			33,858
(Gain) on disposal of assets held for sale		(4,991	)		—		(4,991	)		—
Operating income		11,654			4,584		17,701			6,502
Interest expense		19			489		70			1,059
Interest (income)		(31	)		—		(31	)		—
Income before income taxes		11,666			4,095		17,662			5,443
Income tax provision		2,612			1,044		4,468			1,640
Net income and comprehensive income	$	9,054		$	3,051	$	13,194		$	3,803
Weighted average number of common shares outstanding:
Basic		5,247			5,184		5,225			5,183
Diluted		5,582			5,324		5,554			5,360
Earnings per share of common stock:
Basic	$	1.73		$	0.59	$	2.53		$	0.73
Diluted	$	1.62		$	0.57	$	2.38		$	0.71

See accompanying Notes to Consolidated Financial Statements (Unaudited).

FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)

(Amounts in thousands)


	Six Months Ended December 31, 2024
	Total Par
	Value of
	Common		Additional
	Shares		Paid-In			Treasury			Retained
	($1 Par)		Capital			Stock			Earnings			Total
Balance on June 30, 2024	$	8,407	$	39,573		$	(71,731	)	$	174,118		$	150,367
Stock-based compensation		3		1,135			—			—			1,138
Stock options exercised, net		4		(36	)		—			—			(32	)
Cash dividends declared		—		—			—			(910	)		(910	)
Net income		—		—			—			4,140			4,140
Balance on September 30, 2024	$	8,414	$	40,672		$	(71,731	)	$	177,348		$	154,703
Stock-based compensation		2		961			—			—			963
Vesting of restricted stock units and restricted shares		1		(14	)		—			—			(13	)
Stock options exercised, net		60		(1,925	)		—			—			(1,865	)
Cash dividends declared		—		—			—			(922	)		(922	)
Net income		—		—			—			9,054			9,054
Balance on December 31, 2024	$	8,477	$	39,694		$	(71,731	)	$	185,480		$	161,920


	Six Months Ended December 31, 2023
	Total Par
	Value of
	Common		Additional
	Shares		Paid-In			Treasury			Retained
	($1 Par)		Capital			Stock			Earnings			Total
Balance on June 30, 2023	$	8,292	$	36,605		$	(70,072	)	$	166,796		$	141,621
Stock-based compensation		8		903			—			—			911
Vesting of restricted stock units and restricted shares		44		(691	)		—			—			(647	)
Treasury stock purchases		—		—			(455	)		—			(455	)
Cash dividends declared		—		—			—			(815	)		(815	)
Net income		—		—			—			752			752
Balance on September 30, 2023	$	8,344	$	36,817		$	(70,527	)	$	166,733		$	141,367
Stock-based compensation		9		925			—			—			934
Vesting of restricted stock units and restricted shares		4		(45	)		—			—			(41	)
Treasury stock purchases		—		—			(972	)		—			(972	)
Cash dividends declared		—		—			—			(806	)		(806	)
Net income		—		—			—			3,051			3,051
Balance on December 31, 2023	$	8,357	$	37,697		$	(71,499	)	$	168,978		$	143,533

See accompanying Notes to Consolidated Financial Statements (Unaudited).

FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in thousands)


	Six Months Ended
	December 31,
	2024			2023
OPERATING ACTIVITIES:
Net income	$	13,194		$	3,803
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		1,853			1,899
Deferred income taxes		1			84
Stock-based compensation expense		2,101			1,845
Change in provision for losses on accounts receivable		4			(140	)
(Gain)/loss on disposition of property, plant and equipment		(4,987	)		34
Changes in operating assets and liabilities:
Trade receivables		7,924			6,907
Inventories		5,535			16,838
Other current assets		(2,869	)		(2,128	)
Other assets		(3,563	)		(5,297	)
Accounts payable - trade		(5,353	)		(4,991	)
Accrued liabilities		(4,940	)		(1,751	)
Other long-term liabilities		191			63
Net cash provided by operating activities		9,091			17,166
INVESTING ACTIVITIES:
Proceeds from sales of investments		1,155			—
Proceeds from sales of property, plant and equipment		6,704			—
Capital expenditures		(1,334	)		(3,058	)
Net cash provided by (used in) investing activities		6,525			(3,058	)
FINANCING ACTIVITIES:
Dividends paid		(1,760	)		(1,671	)
Treasury stock purchases		—			(1,427	)
Proceeds from line of credit		202,344			180,524
Payments on line of credit		(207,262	)		(190,899	)
Proceeds from issuance of common stock		141			—
Shares withheld for tax payments on vested shares and options exercised		(2,051	)		(688	)
Net cash (used in) financing activities		(8,588	)		(14,161	)
Increase (decrease) in cash and cash equivalents		7,028			(53	)
Cash and cash equivalents at beginning of the period		4,761			3,365
Cash and cash equivalents at end of the period	$	11,789		$	3,312

SUPPLEMENTAL INFORMATION
Interest paid		106			1,104
Interest received		31			—
Cash paid for income taxes, net		6,053			1,724
Capital expenditures in accounts payable		258			382

See accompanying Notes to Consolidated Financial Statements (Unaudited).

FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES

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 significant accounting policies in Note 1 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024, appropriately represent, in all material respects, the current status of accounting policies.

2. INVENTORIES

A comparison of inventories is as follows:


	December 31,		June 30,
(in thousands)	2024		2024
Raw materials	$	12,584	$	14,030
Work in process and finished parts		2,840		2,654
Finished goods		75,618		79,893
Total	$	91,042	$	96,577

3. ASSETS HELD FOR SALE

The Company completed the sale of its Dublin, Georgia facility as part of a restructuring plan in the quarter ended December 31, 2024. The company received proceeds of $6.7 million and recorded a pre-tax gain of $5.0 million related to the sale.

4. LEASES

The Company accounts for its leases in accordance with ASC 842, Leases. ASC 842 requires lessees to (i) recognize a right-of-use asset (“ROU asset”) and a lease liability that is measured at the present value of the remaining lease payments on the Consolidated Balance Sheets, (ii) recognize a single lease cost, calculated over the lease term on a straight-line basis and (iii) classify lease-related cash payments within operating and financing activities. The Company made an accounting policy election to not recognize short-term leases on the Consolidated Balance Sheets and all non-lease components, such as common area maintenance, were excluded. At any given time during the lease term, the lease liability represents the present value of the remaining lease payments, and the ROU asset is measured as the amount of the lease liability, adjusted for pre-paid rent, unamortized initial direct costs, and the remaining balance of lease incentives received. Both the lease ROU asset and lease liability are reduced to zero at the end of the lease term.

The Company leases distribution centers and warehouses, manufacturing facilities, showrooms, and office space. At the lease inception date, the Company determines if an arrangement is, or contains a lease. Some of the Company’s leases include options to renew at similar terms. The Company assesses these options to determine if the Company is reasonably certain of exercising these options based on relevant economic and financial factors. Options that meet these criteria are included in the lease term at the lease commencement date.

For purposes of measuring the Company’s ROU asset and lease liability, the discount rate utilized by the Company was based on the average interest rates effective for the Company’s line of credit. Some of the Company’s leases contain variable rent payments, including common area maintenance and utilities. Due to the variable nature of these costs, they are not included in the measurement of the ROU asset and lease liability.

The components of the Company’s leases excluding the impact of sublease income reflected on the Company’s Consolidated Statements of Income were as follows:


	Three Months Ended				Six Months Ended
	December 31,				December 31,
(in thousands)	2024		2023		2024		2023
Operating lease expense	$	2,509	$	2,384	$	4,987	$	4,808
Variable lease expense		393		524		912		970
Total lease expense	$	2,902	$	2,908	$	5,899	$	5,778

Other information related to leases and future minimum lease payments under non-cancelable operating leases were as follows:


	Six Months Ended
	December 31,
(in thousands)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	4,918		$	4,663

Cash received from subleasing of operating lease:
Operating cash flows received from subleasing of operating lease	$	594		$	1,119

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	4,119		$	797

Weighted-average remaining lease term (in years):
Operating leases		7.6			8.6

Weighted-average discount rate:
Operating leases		3.3	%		3.1	%

Future minimum lease payments under non-cancelable operating leases were as follows:


	December 31, 2024
Remaining payments in FY2025	$	4,999
FY2026		10,145
FY2027		10,315
FY2028		10,081
FY2029		9,001
Thereafter		29,601
Total future minimum lease payments	$	74,142
Less imputed interest		8,333
Lease liability	$	65,809

5. CREDIT ARRANGEMENTS

On September 8, 2021, the Company, as the borrower, entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (the “Lender”), and the other lenders party thereto. The Credit Agreement has a five-year term and provides for up to an $85 million revolving line of credit. Subject to certain conditions, the Credit Agreement also provides for the issuance of letters of credit in an aggregate amount up to $5 million which, upon issuance, would be deemed advances under the revolving line of credit. Proceeds of borrowings were used to refinance all indebtedness owed to a prior lender and for working capital purposes. The Company’s obligations under the Credit Agreement are secured by substantially all its assets, excluding real property. The Credit Agreement contains customary representations, warranties, and covenants, including a financial covenant to maintain a fixed coverage ratio of not

less than 1.00 to 1.00. In addition, the Loan Agreement places restrictions on the Company’s ability to incur additional indebtedness, to create liens or other encumbrances, to sell or otherwise dispose of assets, and to merge or consolidate with other entities. As of December 31, 2024, management believes the Company was in compliance with all covenants.

On April 18, 2022, the Company, as the borrower, entered into a first amendment to the Credit Agreement (“First Amendment to the Credit Agreement”), with the Lender and the lenders thereto. The amendment to the Credit Agreement changed the definition of the term ‘Payment Conditions’ and further defined default or event of default and the calculation of the Fixed Charge Coverage Ratio.

Subject to certain conditions, borrowings under the Credit Agreement initially bore interest at LIBOR plus 1.25% or 1.50% per annum. On May 24, 2023, the Company entered into a second amendment to the Credit Agreement ("Second Amendment to the Credit Agreement") with the Lender to transition the applicable interest rate from LIBOR to Secured Overnight Financing Rate ("SOFR"). Effective as of the date of the Second Amendment to the Credit Agreement, borrowings under the amended Credit Agreement bear interest at SOFR plus 1.36% to 1.61%, or an effective interest rate of 5.82%, on December 31, 2024.

As of December 31, 2024, there were no outstanding borrowings under the Credit Agreement, exclusive of fees and letters of credit.

Letters of credit outstanding with the Lender as of December 31, 2024, totaled $0.9 million.

6. INCOME TAXES

The provision for income taxes for the interim periods is based on an estimate of the Company’s annual effective tax rate adjusted to reflect the impact of discrete items. Management judgment is required in projecting ordinary income to estimate the Company’s annual effective tax rate. The Company’s effective tax rate for the three months ended December 31, 2024, and December 31, 2023, was 22.4% and 25.5%, respectively. The Company's effective tax rate for the six months ended December 31, 2024 and 2023, was 25.3% and 30.1%, respectively. For the three and six months ended December 31, 2024, the effective tax rate differs from the statutory tax rate of 21% primarily due to state taxes and the impact of foreign operations. For the three and six months ended December 31, 2023, the effective tax rate differs from the statutory tax rate of 21% due to nondeductible stock compensation, state taxes, and the impact of foreign operations.

7. STOCK-BASED COMPENSATION

The Company accounts for its stock-based compensation plans in accordance with ASC 718, Stock Compensation, which requires the Company to measure all share-based payments at grant date fair value and recognize the cost over the requisite service period. Restricted shares and restricted stock units (“RSUs”) generally vest over 1 to 3 years. Stock options are granted at an exercise price equal to the fair value of the Company’s common stock price at the grant date and are exercisable for up to 10 years from the date of grant. Stock-based compensation is included in selling, general and administrative expenses on the Consolidated Statements of Income and Comprehensive Income. Forfeitures are recognized as incurred.

The following table is a summary of total stock-based compensation expenses for the three and six months ended December 31, 2024 and 2023.


	Three Months Ended				Six Months Ended
	December 31,				December 31,
(in thousands)	2024		2023		2024		2023
Total stock-based compensation expense	$	963	$	934	$	2,101	$	1,845

On December 14, 2022, the Company’s shareholders approved the Flexsteel Industries, Inc. 2022 Equity Incentive Plan (“2022 Plan”).

The 2022 Plan replaced the Long-Term Incentive Compensation Plan (“LTIP”) and the 2013 Omnibus Stock Plan (collectively, the “Prior Plans”). No further awards will be made under either of the Prior Plans, but these Prior Plans will continue to govern awards previously granted under them.

(1)

2022 Equity Incentive Plan

The 2022 Plan is a long-term incentive plan pursuant to which awards may be granted to certain employees, independent contractors and directors of the Company, in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares or other stock-based awards. For periods beginning on or after July 1, 2023, restricted stock units ("RSUs") and performance stock units ("PSUs") granted to officers and key employees as part of long-term compensation programs are issued from the 2022 Plan. RSUs and PSUs awarded from the 2022 Plan are included in the Long-Term Incentive Compensation or Restricted Share and RSUs tables below.

(2)

Long-Term Incentive Compensation Plan

The LTIP provided for PSUs to be awarded to officers and key employees based on performance goals set by the Compensation Committee of the Board of Directors (the “Committee”). In conjunction with each grant of PSUs, the Committee granted RSUs under the 2013 Omnibus Stock Plan that vested at the end of three years. No further awards will be issued under this plan.

(3)

2013 Omnibus Stock Plan

The 2013 Omnibus Stock Plan was for key employees, officers and directors and provided for the granting of incentive and nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights, and performance units. No further awards will be issued under this plan.

Long-Term Incentive Compensation

The table below sets forth, as of December 31, 2024, the number of unvested PSUs granted at the target performance level for the 2023-2025, 2024-2026, and 2025-2027 performance periods under the 2022 Plan and LTIP (as applicable) and the number of unvested RSUs granted in conjunction with the PSUs. For PSUs awarded for the three year performance periods ending June 30, 2025, 2026 and 2027, achievement is based on meeting performance goals set for each year within the three year period. The Committee selected Adjusted Operating Income as the performance metric for the performance periods ending June 30, 2025, 2026, and 2027.


	Time-Based Vest (RSUs)				Performance-Based Vest (PSUs)					Total
			Weighted Average					Weighted Average					Weighted Average
			Fair Value					Fair Value					Fair Value
(shares in thousands)	Shares		Per Share		Shares			Per Share		Shares			Per Share
Unvested as of June 30, 2024		97	$	17.92		182		$	22.07		279		$	20.65
Granted		31		31.66		46			31.66		77			31.66
Vested		—		—		—			—		—			—
Forfeited		—		—		(37	)		39.07		(37	)		39.07
Unvested as of December 31, 2024		128	$	21.25		191		$	21.09		319		$	21.17

Total unrecognized stock-based compensation related to the unvested PSUs at the target performance level and the related unvested RSUs was $3.2 million as of December 31, 2024, which is expected to be recognized over a weighted-average period of 1.4 years.

Restricted Shares and RSUs

A summary of the activity in the Company’s unvested restricted shares and unvested RSUs (not granted in conjunction with PSUs) as of December 31, 2024, is as follows:


				Weighted Average
	Shares			Fair Value
	(in thousands)			Per Share
Unvested as of June 30, 2024		16		$	21.96
Granted		4			31.66
Vested		(1	)		20.08
Forfeited		—			20.33
Unvested as of December 31, 2024		19		$	24.10

Total unrecognized stock-based compensation related to unvested restricted shares and unvested RSUs (not granted in conjunction with the PSUs) was $0.3 million as of December 31, 2024, which is expected to be recognized over a weighted-average period of 1.5 years.

Options

A summary of the activity of the Company’s stock option plans as of December 31, 2024, is presented below:


				Weighted
	Shares			Average
	(in thousands)			Exercise Price
Outstanding at June 30, 2024		180		$	20.01
Exercised		(101	)		19.26
Cancelled		(12	)		34.51
Outstanding at December 31, 2024		67		$	18.54

The following table summarizes information for options outstanding at December 31, 2024:


		Options		Weighted Average
Range of		Outstanding		Remaining		Exercise
Prices		(in thousands)		Life (Years)		Price
$	9.97 - 15.14		43		5.3	$	10.62
	18.30 - 19.72		6		6.4		18.30
	21.96 - 27.57		3		4.0		24.49
	31.06 - 32.80		6		3.7		32.40
	43.09 - 47.45		9		1.7		45.29
$	9.97 - 47.45		67		4.8	$	18.54

There is no unrecognized stock-based compensation expense related to these options as of December 31, 2024.

Stock-based compensation granted outside a plan

During the quarter ended June 30, 2020, the Company awarded its former Chief Financial Officer/Chief Operating Officer (current Chief Executive Officer) 79,000 options outside of any Company stock plans. All 79,000 options remain outstanding as of December 31, 2024, with an exercise price of $9.97 and a remaining life of 5.3 years. There is no remaining unrecognized stock-based compensation expense related to these options.

8. EARNINGS PER SHARE

Basic earnings per share (EPS) of common stock are based on the weighted-average number of common shares outstanding during each period. Diluted earnings per share of common stock include the dilutive effect of potential common shares outstanding. The Company’s potential common shares outstanding are stock options, shares associated with the long-term incentive compensation plans, and non-vested restricted stock units. The Company calculates the dilutive effect of outstanding options and restricted stock units using the treasury stock method. Anti-dilutive options are not included in the computation of diluted EPS when their exercise price is greater than the average closing market price of the common shares.


	Three Months Ended				Six Months Ended
	December 31,				December 31,
(in thousands)	2024		2023		2024		2023
Basic shares		5,247		5,184		5,225		5,183
Potential common shares:
Stock options		111		66		105		74
Non-vested restricted stock units and restricted shares		224		74		224		103
Diluted shares		5,582		5,324		5,554		5,360

Anti-dilutive shares		—		136		—		136

Cash dividends declared per common share were $0.17 for the three and six months ended December 31, 2024, and were $0.15 for the three and six months ended December 31, 2023, respectively.

9. COMMITMENTS AND CONTINGENCIES

Other Proceedings – From time to time, the Company is subject to various other legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of the Company’s business. The Company does not consider any of such other proceedings that are currently pending, individually or in the aggregate, to be material to its business or likely to result in a material effect on its consolidated operating results, financial condition, or cash flows.

10. RECENT ACCOUNTING PRONOUNCEMENTS

In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023 09 “Improvements to Income Tax Disclosures.” The amendments in this ASU are intended to increase transparency through improvements to income tax disclosures primarily related to the income tax rate reconciliation and income taxes paid information. This ASU will become effective for us for the annual period beginning in fiscal year 2026, with early adoption permitted. The Company is currently evaluating the effect that the new guidance will have on our related disclosures, but do not expect this guidance will have a material impact on our financial position and results of operations.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires business entities to enhance disclosures about significant segment expenses. The ASU also requires that a public entity with a single reportable segment, like the Company, provide all of the disclosures required as part of ASU 2023-07 and all existing disclosures required by Topic 280. The ASU will become effective for us for the annual period beginning in fiscal year 2025 and for interim periods beginning with our 2026 fiscal year, on a retrospective basis, and early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on our related disclosures, but do not expect this guidance will have a material impact on our financial position and results of operations.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

GENERAL

The following analysis of the results of operations and financial condition of the Company should be read in conjunction with the Consolidated Financial Statements and related notes included elsewhere in this quarterly report on Form 10-Q.

CRITICAL ACCOUNTING POLICIES:

There have been no material changes to our critical accounting policies and estimates from the information provided in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations", included in our 2024 annual report on Form 10-K.

Overview

The following table has been prepared as an aid in understanding the Company’s results of operations on a comparative basis for the three and six months ended December 31, 2024 and 2023. The amounts presented are percentages of the Company’s net sales.


	Three Months Ended							Six Months Ended
	December 31,							December 31,
	2024				2023			2024				2023
Net sales		100.0		%		100.0	%		100.0		%		100.0	%
Cost of goods sold		79.0				78.1			78.7				79.3
Gross margin		21.0				21.9			21.3				20.7
Selling, general and administrative expenses		14.9				17.3			15.3				17.4
(Gain) on disposal of assets held for sale		(4.6	)			—			(2.3	)			—
Operating income		10.7				4.6			8.3				3.3
Interest expense		—				0.5			—				0.5
Interest (income)		—				—			—				—
Income before income taxes		10.7				4.1			8.3				2.8
Income tax provision		2.4				1.0			2.1				0.8
Net income and comprehensive income		8.3		%		3.0	%		6.2		%		2.0	%

Results of Operations for the Quarter Ended December 31, 2024 vs. 2023

Net sales were $108.5 million for the quarter ended December 31, 2024, compared to net sales of $100.1 million in the prior year quarter, an increase of 8.4%. The increase was driven by higher sales in home furnishings products sold through retail stores of $9.2 million, or 10.3%, led by unit volume increases, freight surcharges, and product mix. Sales of products sold through e-commerce channels decreased by ($0.8) million, or (7.1%), compared to the second quarter of the prior year. Lower sales in the e-commerce channel were driven by softer consumer demand.

Home furnishings backlog was $77 million as of the quarter ended December 31, 2024, an increase of 40.0% compared to $55 million in the prior year quarter.

Gross margin as a percent of net sales for the quarter ended December 31, 2024, was 21.0%, compared to 21.9% for the prior year quarter, a decrease of 90 basis points (“bps”). The 90-bps decrease was primarily due to ocean freight charge increases partially offset by cost savings initiatives.

Selling, general and administrative (“SG&A”) expenses decreased ($1.3) million to $16.1 million in the second quarter ended December 31, 2024, as compared to $17.4 million in the prior year quarter. As a percentage of net sales, SG&A was 14.9% in the quarter ended December 31, 2024 compared to 17.3% of net sales in the prior year quarter. The 240-bps decrease was due to leverage on higher sales and structural cost savings, partially offset by investments in growth initiatives for the quarter ended December 31, 2024.

During the quarter ended December 31, 2024, the Company completed the sale of its Dublin, Georgia facility which had been previously recorded as held for sale. The Company recorded a pre-tax gain of $5.0 million related to the sale. See Note 3, Assets Held For Sale, of the Notes to Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q for more information

Income tax expense was $2.6 million, or an effective rate of 22.4% for the quarter ended December 31, 2024, compared to an income tax expense of $1.0 million, or an effective rate of 25.5% during the quarter ended December 31, 2023. For the quarter ended

December 31, 2024, the effective tax rate differs from the statutory tax rate of 21% primarily due to state taxes and the impact of foreign operations.

Net income was $9.1 million, or $1.62 per diluted share for the quarter ended December 31, 2024, compared to net income of $3.1 million, or $0.57 per diluted share in the prior year quarter.

On February 1, 2025, the President of the United States issued executive order “Imposing Duties To Address The Situation At Our Southern Border” which imposed a 25% tariff on all products of Mexico beginning February 4, 2025. Further executive order issued February 3, 2025, paused the implementation of these tariffs until March 4, 2025. The current situation is dynamic, and it is unknown if the two countries will reach an agreement to further pause or eliminate the pending tariffs. Given the Company’s sizable manufacturing operations in Mexico, should these tariffs be enacted they could have a material impact on our future cost of goods sold, profit and cash flow. The ultimate impact will be dependent on the magnitude and duration of the tariffs and the Company is assessing options to mitigate any potential impact.

Results of Operations for the six months ended December 31, 2024 and 2023

Net sales were $212.5 million for the six months ended December 31, 2024, compared to net sales of $194.7 million in the prior-year six-month period, an increase of 9.1%. The increase in sales of $17.8 million was driven by a $20.2 million increase related to home furnishing products sold through retailers offset by a decrease of ($2.4) million for home furnishing products sold through e-commerce channels.

Gross margin as a percent of net sales for the six months ended December 31, 2024, was 21.3%, compared to 20.7% for the prior-year six-month period, an increase of 60 bps. The 60-bps increase was primarily driven by sales volume leverage and structural cost reduction savings versus the prior year ended December 31, 2023.

Selling, general and administrative expenses decreased ($1.4) million in the six months ended December 31, 2024, compared to the prior-year six-month period. SG&A as a percentage of sales was 15.3% in the six months ended December 31, 2024, compared to the prior-year six-month period of 17.4%. The 210-bps decrease was primarily due to sales volume leverage partially offset by investments in growth initiatives for the six months ended December 31, 2024.

During the six-month period ended December 31, 2024, the Company completed the sale of its Dublin, Georgia facility which had been previously recorded as held for sale. The Company recorded a pre-tax gain of $5.0 million related to the sale. See Note 3, Assets Held For Sale, of the Notes to Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q for more information

Income tax expense was $4.5 million, or an effective rate of 25.3%, during the six months ended December 31, 2024, compared to income tax expense of $1.6 million in the prior-year six-month period, or an effective tax rate of 30.1%. The effective tax rate for the six months ended December 31, 2024, was primarily impacted by state taxes and the impact of foreign operations.

Net income was $13.2 million, or $2.38 per diluted share for the six months ended December 31, 2024, compared to net income of $3.8 million, or $0.71 per diluted share in the prior-year six-month period.

Liquidity and Capital Resources

Working capital (current assets less current liabilities) on December 31, 2024, was $98.2 million compared to $95.0 million on June 30, 2024. The $3.2 million increase in working capital was primarily due to a decrease in accounts payable of $5.1 million, a decrease in payroll and related liabilities of $4.6 million, and an increase in other current liabilities of $0.6 million offset by an increase in other current assets of $7.2 million, an increase in cash of $7 million, and a decrease in net trade receivables of $7.9 million, a decrease in inventories of $5.5 million and a decrease in assets held for sale of $1.7 million. Refer to discussion of working capital changes below, under Net cash provided by operating activities. Capital expenditures were $1.3 million during the six months ended December 31, 2024.

A summary of operating, investing, and financing cash flow is shown in the following table:


	Six Months Ended
	December 31,
(in thousands)	2024			2023
Net cash provided by operating activities	$	9,091		$	17,166
Net cash provided by (used in) investing activities		6,525			(3,058	)
Net cash (used in) financing activities		(8,588	)		(14,161	)
Increase (decrease) in cash and cash equivalents	$	7,028		$	(53	)

Net cash provided by operating activities

For the six months ended December 31, 2024, net cash provided by operating activities was $9.1 million, primarily due to an increase in net income of $13.2 million, adjustments for non-cash items including a pre-tax gain on sale of assets of $5 million, stock-based compensation of $2.1 million, depreciation of $1.9 million, and a decrease in inventory of $5.5 million offset by an increase in trade receivables of $7.9 million, an increase in accrued liabilities of $4.9 million, a decrease in other current assets of $3.6 million, an increase in accounts payable of $5.4 million and a decrease of other assets and liabilities of $0.2 million.

For the six months ended December 31, 2023, net cash provided by operating activities was $17.2 million, primarily due to a decrease in inventory of $16.8 million, a decrease in trade receivables of $6.9 million, net income of $3.8 million, and adjustments for non-cash items including depreciation of $1.9 million, stock-based compensation of $1.8 million, and deferred income taxes of $0.1 million partially offset by an increase in other assets of $5.3 million, a decrease in accounts payable of $5.0 million, an increase in other current assets of $2.1 million, and a decrease in accrued liabilities of $1.7 million.

Net cash provided by (used in) investing activities

For the six months ended December 31, 2024, net cash provided by investing activities was $6.5 million due to proceeds from the sale of Dublin of $6.7 million, and corporate owned life insurance proceeds of $1.1 million, offset by capital expenditures of $1.3 million.

For the six months ended December 31, 2023, net cash used in investing activities was $3.1 million due to capital expenditures.

Net cash (used in) financing activities

For the six months ended December 31, 2024, net cash used in financing activities was $8.6 million, due to payments on the line of credit of $207.1 million partially offset by proceeds from the line of credit of $202 million, shares withheld for tax payments on vested shares and options exercised of $2.1 million, dividends paid of $1.8 million, and proceeds from issuance of common stock of $0.1 million.

For the six months ended December 31, 2023, net cash used in financing activities was $14.2 million, due to payments on the line of credit of $190.9 million partially offset by proceeds from the line of credit of $180.5 million, dividends paid of $1.7 million, $1.4 million paid for purchases of company stock, and $0.7 million paid for tax payments on employee vested restricted shares netted with proceeds from the issuance of common stock.

Line of Credit

As of December 31, 2024, there were no outstanding borrowings under the Credit Agreement, exclusive of fees and letters of credit.

Letters of credit outstanding with the Lender as of December 31, 2024, totaled $0.9 million.

Contractual Obligations

As of December 31, 2024, there have been no material changes to our contractual obligations presented in our Annual Report on Form 10-K for the year ended June 30, 2024.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

General – Market risk represents the risk of changes in the value of a financial instrument, derivative or non-derivative, caused by fluctuations in interest rates, foreign exchange rates and equity prices. As discussed below, management of the Company does not believe that changes in these factors could cause material fluctuations in the Company’s results of operations or cash flows. The ability to import furniture products can be adversely affected by political issues in the countries where suppliers are located, as well as disruptions associated with shipping distances and negotiations with port employees. Other risks related to furniture product importation include government imposition of regulations and/or quotas; duties, taxes or tariffs on imports; and significant fluctuation in the value of the U.S. dollar against foreign currencies. Any of these factors could interrupt supply, increase costs, and decrease earnings.

Foreign Currency Risk – During the quarters ended December 31, 2024 and 2023, the Company did not have sales but did have purchases and other expenses denominated in foreign currencies, primarily the Mexican Peso. The wages of our employees and certain other employee benefits and indirect costs related to our operations in Mexico are made in Pesos and subject to foreign currency fluctuation with the U.S. dollar. The Company does not employ any foreign currency hedges against this exposure. A negative shift in the value of the U.S. dollar against the Peso could increase the cost of our manufactured product. In addition, the Company has certain asset and liabilities related to our manufacturing operations which are denominated in pesos, primarily our VAT receivable for recoverable VAT paid in Mexico. A negative shift in the value of the Peso against the U.S. dollar could result in the value of our receivable decreasing which may impact our earnings. Beginning in the third quarter of fiscal year 2025, we began using a derivative instrument to reduce our exposure to foreign currency risk from changes in the peso’s exchange rate for this exposure.

See “Risk [MD1] Factors” in Item 1A in the most recent Annual Report on Form 10-K for further discussion.

Interest Rate Risk – The Company’s primary market risk exposure regarding financial instruments is changes in interest rates. On December 31, 2024, the Company had no outstanding borrowings on its line of credit, exclusive of fees and letters of credit.

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures. Based on their evaluation as of the end of the period covered by this Quarterly Report on Form 10-Q, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) were effective as of December 31, 2024.

(b) Changes in internal control over financial reporting. During the quarter ended December 31, 2024, there were no significant changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended) that have materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.

Cautionary Statement Relevant to Forward-Looking Information for “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995

The Company and its representatives may from time to time make written or oral forward-looking statements concerning long-term goals or anticipated results of the Company, including statements contained in the Company’s filings with the Securities and Exchange Commission and its reports to stockholders.

Statements, including those in this Quarterly Report on Form 10-Q, which are not historical or current facts, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are certain important factors that could cause the Company’s results to differ materially from those anticipated by some of the statements made

herein. Investors are cautioned that all forward-looking statements involve risk and uncertainty. Some of the factors that could affect results are the cyclical nature of the furniture industry, supply chain disruptions, litigation, restructurings, the effectiveness of new product introductions and distribution channels, the product mix of sales, pricing pressures, the cost of raw materials and fuel, changes in foreign currency values, retention and recruitment of key employees, actions by governments including laws, regulations, taxes and tariffs, the amount of sales generated and the profit margins thereon, competition (both U.S. and foreign), credit exposure with customers, participation in multi-employer pension plans, disruptions or security breaches to business information systems, the impact of any future pandemic, and general economic conditions. For further information regarding these risks and uncertainties, see the “Risk Factors” section in Item 1A of our most recent Annual Report on Form 10-K.

The Company specifically declines to undertake any obligation to publicly revise any forward-looking statements that have been made to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

PART II OTHER INFORMATION

Item 1A. Risk Factors

There has been no material change in the risk factors set forth under Part 1, Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On January 20, 2022, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to $30 million of the Company’s common stock through January 19, 2025.

On December 11, 2024, the Board of Directors approved an additional share repurchase program authorizing the Company to purchase up to $30 million of the Company’s common stock.

The following table summarizes the activity of the common stock repurchases made during the three months ended December 31, 2024.


	Total Number		Average		Total Number of Shares		Approximate Dollar Value of Shares
	of Shares		Price Paid		Purchased		that May Yet
Period	Purchased		per Share		as Part of Plans		Be Purchased
October 1, 2024, to October 31, 2024		—	$	—		1,485,274	$	2,115,634
November 1, 2024, to November 30, 2024		—		—		1,485,274		2,115,634
December 1, 2024, to December 31, 2024		—		—		1,485,274		32,115,634
Three months ended December 31, 2024		—	$	—		1,485,274	$	32,115,634

Item 5. Other Information

Rule 10b5-1 Trading Plans

During the three months ended September 30, 2024, no director or officer of the Company adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits


Exhibit No.
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.*
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.*
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS	XBRL Instance Document**
101.SCH	Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104.Cover Page	Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
*	Filed herewith
**	In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall be deemed to be “furnished” and not “filed.”

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



		FLEXSTEEL INDUSTRIES, INC.


Date:	February 5, 2025	By:	/s/ Michael J. Ressler
			Michael J. Ressler
			Chief Financial Officer
			(Principal Financial & Accounting Officer)

EXHIBIT 31.1

CERTIFICATION

I, Derek P. Schmidt, certify that:

I have reviewed this quarterly report on Form 10-Q of Flexsteel Industries, Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the Registrant as of, and for, the periods presented in this report;

The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

disclosed in this report any changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the Audit and Ethics Committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):

all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: February 5, 2025

    /s/ Derek P. Schmidt

   

    Derek P. Schmidt
Chief Executive Officer

Exhibit 31.2

CERTIFICATION

I, Michael J. Ressler, certify that:

I have reviewed this quarterly report on Form 10-Q of Flexsteel Industries, Inc.;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: February 5, 2025

    /s/ Michael J. Ressler

   

    Michael J. Ressler
Chief Financial Officer

Exhibit 32

CERTIFICATION BY

CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Flexsteel Industries, Inc. (the “Company”) on Form 10-Q for the quarter ended December 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Derek P. Schmidt, Chief Executive Officer, and Michael J. Ressler, Chief Financial Officer, of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and;

(2)

The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company.

Date: February 5, 2025

    /s/ Derek P. Schmidt

   

    Derek P. Schmidt
Chief Executive Officer

    /s/ Michael J. Ressler

   

    Michael J. Ressler
Chief Financial Officer

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Dec. 31, 2024	Feb. 05, 2025
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2024
Securities Act File Number	0-5151
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q2
Entity Registrant Name	FLEXSTEEL INDUSTRIES, INC.
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	42-0442319
Entity Address, Address Line One	385 BELL STREET
Entity Address, City or Town	DUBUQUE
Entity Address, State or Province	IA
Entity Address, Postal Zip Code	52001-7004
City Area Code	563
Local Phone Number	556-7730
Title of 12(b) Security	Common Stock
Trading Symbol	FLXS
Security Exchange Name	NASDAQ
Entity Central Index Key	0000037472
Current Fiscal Year End Date	--06-30
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,269,367
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
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
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

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Consolidated Balance Sheets [Abstract]
Trade receivables, allowance for doubtful accounts	$ 2,436	$ 2,440
Common stock, par value	$ 1	$ 1
Common stock, authorized	15,000,000	15,000,000
Common stock, issued	8,477,000	8,407,000
Common stock, outstanding	5,270,000	5,200,000
Treasury stock, shares	3,207,000	3,207,000

Consolidated Statements Of Income And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Consolidated Statements Of Income And Comprehensive Income [Abstract]
Net sales	$ 108,483	$ 100,108	$ 212,490	$ 194,711
Cost of goods sold	85,678	78,158	167,318	154,351
Gross profit	22,805	21,950	45,172	40,360
Selling, general and administrative expenses	16,142	17,366	32,462	33,858
(Gain) on disposal of assets held for sale	(4,991)		(4,991)
Operating income	11,654	4,584	17,701	6,502
Interest expense	19	489	70	1,059
Interest (income)	(31)		(31)
Income before income taxes	11,666	4,095	17,662	5,443
Income tax provision	2,612	1,044	4,468	1,640
Net income and comprehensive income	$ 9,054	$ 3,051	$ 13,194	$ 3,803
Weighted average number of common shares outstanding:
Basic	5,247	5,184	5,225	5,183
Diluted	5,582	5,324	5,554	5,360
Earnings per share of common stock:
Basic	$ 1.73	$ 0.59	$ 2.53	$ 0.73
Diluted	$ 1.62	$ 0.57	$ 2.38	$ 0.71

Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands	Total	Total Par Value Of Common Shares [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]
Balance, beginning at Jun. 30, 2023	$ 141,621	$ 8,292	$ 36,605	$ (70,072)	$ 166,796
Stock-based compensation	911	8	903
Vesting of restricted stock units and restricted shares	(647)	44	(691)
Treasury stock purchases	(455)			(455)
Cash dividends declared	(815)				(815)
Net Income (Loss)	752				752
Balance, ending at Sep. 30, 2023	141,367	8,344	36,817	(70,527)	166,733
Balance, beginning at Jun. 30, 2023	141,621	8,292	36,605	(70,072)	166,796
Net Income (Loss)	3,803
Balance, ending at Dec. 31, 2023	143,533	8,357	37,697	(71,499)	168,978
Balance, beginning at Sep. 30, 2023	141,367	8,344	36,817	(70,527)	166,733
Stock-based compensation	934	9	925
Vesting of restricted stock units and restricted shares	(41)	4	(45)
Treasury stock purchases	(972)			(972)
Cash dividends declared	(806)				(806)
Net Income (Loss)	3,051				3,051
Balance, ending at Dec. 31, 2023	143,533	8,357	37,697	(71,499)	168,978
Balance, beginning at Jun. 30, 2024	150,367	8,407	39,573	(71,731)	174,118
Stock-based compensation	1,138	3	1,135
Stock options exercised	(32)	4	(36)
Cash dividends declared	(910)				(910)
Net Income (Loss)	4,140				4,140
Balance, ending at Sep. 30, 2024	154,703	8,414	40,672	(71,731)	177,348
Balance, beginning at Jun. 30, 2024	150,367	8,407	39,573	(71,731)	174,118
Net Income (Loss)	13,194
Balance, ending at Dec. 31, 2024	161,920	8,477	39,694	(71,731)	185,480
Balance, beginning at Sep. 30, 2024	154,703	8,414	40,672	(71,731)	177,348
Stock-based compensation	963	2	961
Vesting of restricted stock units and restricted shares	(13)	(1)	(14)
Stock options exercised	1,865	60	1,925
Cash dividends declared	(922)				(922)
Net Income (Loss)	9,054				9,054
Balance, ending at Dec. 31, 2024	$ 161,920	$ 8,477	$ 39,694	$ (71,731)	$ 185,480

Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares	Jun. 30, 2024	Jun. 30, 2023
Common stock, par value	$ 1
Total Par Value Of Common Shares [Member]
Common stock, par value	$ 1	$ 1

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
OPERATING ACTIVITIES:
Net Income (Loss)	$ 13,194	$ 3,803
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	1,853	1,899
Deferred income taxes	1	84
Stock-based compensation expense	2,101	1,845
Change in provision for losses on accounts receivable	4	(140)
(Gain)/loss on disposition of capital assets	(4,987)	34
Changes in operating assets and liabilities:
Trade receivables	7,924	6,907
Inventories	5,535	16,838
Other current assets	(2,869)	(2,128)
Other assets	(3,563)	(5,297)
Accounts payable - trade	(5,353)	(4,991)
Accrued liabilities	(4,940)	(1,751)
Other long-term liabilities	191	63
Net cash provided by operating activities	9,091	17,166
INVESTING ACTIVITIES:
Proceeds from sales of investments	1,155
Proceeds from the sale of capital assets	6,704
Capital expenditures	(1,334)	(3,058)
Net cash provided by (used in) investing activities	6,525	(3,058)
FINANCING ACTIVITIES:
Dividends paid	(1,760)	(1,671)
Treasury stock purchases		(1,427)
Proceeds from line of credit	202,344	180,524
Payments on line of credit	(207,262)	(190,899)
Proceeds from issuance of common stock	141
Shares withheld for tax payments on vested shares and options exercised	(2,051)	(688)
Net cash (used in) financing activities	(8,588)	(14,161)
Increase (decrease) in cash and cash equivalents	7,028	(53)
Cash and cash equivalents at beginning of the period	4,761	3,365
Cash and cash equivalents at end of the period	11,789	3,312
SUPPLEMENTAL INFORMATION
Interest paid	106	1,104
Interest received	31
Cash paid for income taxes, net	6,053	1,724
Capital expenditures in accounts payable	$ 258	$ 382

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2024	Dec. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 9,054	$ 4,140	$ 3,051	$ 752	$ 13,194	$ 3,803

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

Basis Of Presentation And Description Of Business	6 Months Ended
Basis Of Presentation And Description Of Business	Dec. 31, 2024
Basis Of Presentation And Description Of Business [Abstract]
Basis Of Presentation And Description Of Business	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 significant accounting policies in Note 1 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024, appropriately represent, in all material respects, the current status of accounting policies.

Inventories

6 Months Ended

Dec. 31, 2024

Inventory, Net [Abstract]

Inventories

2. INVENTORIES

A comparison of inventories is as follows:


	December 31,		June 30,
(in thousands)	2024		2024
Raw materials	$	12,584	$	14,030
Work in process and finished parts		2,840		2,654
Finished goods		75,618		79,893
Total	$	91,042	$	96,577

Assets Held For Sale

6 Months Ended

Dec. 31, 2024

Assets Held For Sale [Abstract]

Property, Plant and Equipment Assets Held-for-Sale Disclosure [Abstract]

3. ASSETS HELD FOR SALE

Leases

6 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

4. LEASES

The components of the Company’s leases excluding the impact of sublease income reflected on the Company’s Consolidated Statements of Income were as follows:


	Three Months Ended				Six Months Ended
	December 31,				December 31,
(in thousands)	2024		2023		2024		2023
Operating lease expense	$	2,509	$	2,384	$	4,987	$	4,808
Variable lease expense		393		524		912		970
Total lease expense	$	2,902	$	2,908	$	5,899	$	5,778

Other information related to leases and future minimum lease payments under non-cancelable operating leases were as follows:


	Six Months Ended
	December 31,
(in thousands)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	4,918		$	4,663

Cash received from subleasing of operating lease:
Operating cash flows received from subleasing of operating lease	$	594		$	1,119

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	4,119		$	797

Weighted-average remaining lease term (in years):
Operating leases		7.6			8.6

Weighted-average discount rate:
Operating leases		3.3	%		3.1	%

Future minimum lease payments under non-cancelable operating leases were as follows:


	December 31, 2024
Remaining payments in FY2025	$	4,999
FY2026		10,145
FY2027		10,315
FY2028		10,081
FY2029		9,001
Thereafter		29,601
Total future minimum lease payments	$	74,142
Less imputed interest		8,333
Lease liability	$	65,809

Credit Arrangements

6 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Credit Arrangements

5. CREDIT ARRANGEMENTS

As of December 31, 2024, there were no outstanding borrowings under the Credit Agreement, exclusive of fees and letters of credit.

Letters of credit outstanding with the Lender as of December 31, 2024, totaled $0.9 million.

Income Taxes

6 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

6. INCOME TAXES

Stock-Based Compensation

6 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation

7. STOCK-BASED COMPENSATION

The following table is a summary of total stock-based compensation expenses for the three and six months ended December 31, 2024 and 2023.


	Three Months Ended				Six Months Ended
	December 31,				December 31,
(in thousands)	2024		2023		2024		2023
Total stock-based compensation expense	$	963	$	934	$	2,101	$	1,845

On December 14, 2022, the Company’s shareholders approved the Flexsteel Industries, Inc. 2022 Equity Incentive Plan (“2022 Plan”).

(1)

2022 Equity Incentive Plan

(2)

Long-Term Incentive Compensation Plan

(3)

2013 Omnibus Stock Plan

Long-Term Incentive Compensation


	Time-Based Vest (RSUs)				Performance-Based Vest (PSUs)					Total
			Weighted Average					Weighted Average					Weighted Average
			Fair Value					Fair Value					Fair Value
(shares in thousands)	Shares		Per Share		Shares			Per Share		Shares			Per Share
Unvested as of June 30, 2024		97	$	17.92		182		$	22.07		279		$	20.65
Granted		31		31.66		46			31.66		77			31.66
Vested		—		—		—			—		—			—
Forfeited		—		—		(37	)		39.07		(37	)		39.07
Unvested as of December 31, 2024		128	$	21.25		191		$	21.09		319		$	21.17

Restricted Shares and RSUs

A summary of the activity in the Company’s unvested restricted shares and unvested RSUs (not granted in conjunction with PSUs) as of December 31, 2024, is as follows:


				Weighted Average
	Shares			Fair Value
	(in thousands)			Per Share
Unvested as of June 30, 2024		16		$	21.96
Granted		4			31.66
Vested		(1	)		20.08
Forfeited		—			20.33
Unvested as of December 31, 2024		19		$	24.10

Options

A summary of the activity of the Company’s stock option plans as of December 31, 2024, is presented below:


				Weighted
	Shares			Average
	(in thousands)			Exercise Price
Outstanding at June 30, 2024		180		$	20.01
Exercised		(101	)		19.26
Cancelled		(12	)		34.51
Outstanding at December 31, 2024		67		$	18.54

The following table summarizes information for options outstanding at December 31, 2024:


		Options		Weighted Average
Range of		Outstanding		Remaining		Exercise
Prices		(in thousands)		Life (Years)		Price
$	9.97 - 15.14		43		5.3	$	10.62
	18.30 - 19.72		6		6.4		18.30
	21.96 - 27.57		3		4.0		24.49
	31.06 - 32.80		6		3.7		32.40
	43.09 - 47.45		9		1.7		45.29
$	9.97 - 47.45		67		4.8	$	18.54

There is no unrecognized stock-based compensation expense related to these options as of December 31, 2024.

Stock-based compensation granted outside a plan

Earnings Per Share

6 Months Ended

Dec. 31, 2024

Earnings Per Share

Earnings Per Share

8. EARNINGS PER SHARE


	Three Months Ended				Six Months Ended
	December 31,				December 31,
(in thousands)	2024		2023		2024		2023
Basic shares		5,247		5,184		5,225		5,183
Potential common shares:
Stock options		111		66		105		74
Non-vested restricted stock units and restricted shares		224		74		224		103
Diluted shares		5,582		5,324		5,554		5,360

Anti-dilutive shares		—		136		—		136

Cash dividends declared per common share were $0.17 for the three and six months ended December 31, 2024, and were $0.15 for the three and six months ended December 31, 2023, respectively.

Commitments And Contingencies

6 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

9. COMMITMENTS AND CONTINGENCIES

Recent Accounting Pronouncements

6 Months Ended

Dec. 31, 2024

Accounting Standards Update and Change in Accounting Principle [Abstract]

Recent Accounting Pronouncements

10. RECENT ACCOUNTING PRONOUNCEMENTS

Summary Of Significant Accounting Policies (Policies)	6 Months Ended
Summary Of Significant Accounting Policies (Policies)	Dec. 31, 2024
Basis Of Presentation And Description Of Business [Abstract]
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	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 significant accounting policies in Note 1 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024, appropriately represent, in all material respects, the current status of accounting policies.

Inventories (Tables)

6 Months Ended

Dec. 31, 2024

Inventory, Net [Abstract]

Comparison Of Inventories


	December 31,		June 30,
(in thousands)	2024		2024
Raw materials	$	12,584	$	14,030
Work in process and finished parts		2,840		2,654
Finished goods		75,618		79,893
Total	$	91,042	$	96,577

Leases (Tables)

6 Months Ended

Dec. 31, 2024

Leases [Abstract]

Components Of Leases Excluding Impact Of Sublease Income


	Three Months Ended				Six Months Ended
	December 31,				December 31,
(in thousands)	2024		2023		2024		2023
Operating lease expense	$	2,509	$	2,384	$	4,987	$	4,808
Variable lease expense		393		524		912		970
Total lease expense	$	2,902	$	2,908	$	5,899	$	5,778

Other Information Related To Leases And Future Minimum Lease Payments


	Six Months Ended
	December 31,
(in thousands)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	4,918		$	4,663

Cash received from subleasing of operating lease:
Operating cash flows received from subleasing of operating lease	$	594		$	1,119

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	4,119		$	797

Weighted-average remaining lease term (in years):
Operating leases		7.6			8.6

Weighted-average discount rate:
Operating leases		3.3	%		3.1	%

Future Minimum Lease Payments


	December 31, 2024
Remaining payments in FY2025	$	4,999
FY2026		10,145
FY2027		10,315
FY2028		10,081
FY2029		9,001
Thereafter		29,601
Total future minimum lease payments	$	74,142
Less imputed interest		8,333
Lease liability	$	65,809

Stock-Based Compensation (Tables)

6 Months Ended

Dec. 31, 2024

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary Of Total Stock-Based Compensation Expense


	Three Months Ended				Six Months Ended
	December 31,				December 31,
(in thousands)	2024		2023		2024		2023
Total stock-based compensation expense	$	963	$	934	$	2,101	$	1,845

Schedule Of Stock Option Plans


				Weighted
	Shares			Average
	(in thousands)			Exercise Price
Outstanding at June 30, 2024		180		$	20.01
Exercised		(101	)		19.26
Cancelled		(12	)		34.51
Outstanding at December 31, 2024		67		$	18.54

Schedule Of Options Outstanding And Exercisable


		Options		Weighted Average
Range of		Outstanding		Remaining		Exercise
Prices		(in thousands)		Life (Years)		Price
$	9.97 - 15.14		43		5.3	$	10.62
	18.30 - 19.72		6		6.4		18.30
	21.96 - 27.57		3		4.0		24.49
	31.06 - 32.80		6		3.7		32.40
	43.09 - 47.45		9		1.7		45.29
$	9.97 - 47.45		67		4.8	$	18.54

Restricted Shares And RSUs [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule Of Unvested Shares - PSUs And RSUs


				Weighted Average
	Shares			Fair Value
	(in thousands)			Per Share
Unvested as of June 30, 2024		16		$	21.96
Granted		4			31.66
Vested		(1	)		20.08
Forfeited		—			20.33
Unvested as of December 31, 2024		19		$	24.10

Long-Term Incentive Compensation Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule Of Unvested Shares - PSUs And RSUs


	Time-Based Vest (RSUs)				Performance-Based Vest (PSUs)					Total
			Weighted Average					Weighted Average					Weighted Average
			Fair Value					Fair Value					Fair Value
(shares in thousands)	Shares		Per Share		Shares			Per Share		Shares			Per Share
Unvested as of June 30, 2024		97	$	17.92		182		$	22.07		279		$	20.65
Granted		31		31.66		46			31.66		77			31.66
Vested		—		—		—			—		—			—
Forfeited		—		—		(37	)		39.07		(37	)		39.07
Unvested as of December 31, 2024		128	$	21.25		191		$	21.09		319		$	21.17

Earnings Per Share (Tables)

6 Months Ended

Dec. 31, 2024

Earnings Per Share

Schedule Of Earnings Per Share, Basic And Diluted


	Three Months Ended				Six Months Ended
	December 31,				December 31,
(in thousands)	2024		2023		2024		2023
Basic shares		5,247		5,184		5,225		5,183
Potential common shares:
Stock options		111		66		105		74
Non-vested restricted stock units and restricted shares		224		74		224		103
Diluted shares		5,582		5,324		5,554		5,360

Anti-dilutive shares		—		136		—		136

Inventories (Comparison Of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Inventory, Net [Abstract]
Raw materials	$ 12,584	$ 14,030
Work in process and finished parts	2,840	2,654
Finished goods	75,618	79,893
Total	$ 91,042	$ 96,577

Assets Held For Sale (Narrative) (Details) $ in Thousands	6 Months Ended
Assets Held For Sale (Narrative) (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Assets Held For Sale [Abstract]
Proceeds from the sale of capital assets	$ 6,704
Pretax gain related to sale	$ 5,000

Leases (Components Of Leases Excluding Impact Of Sublease Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Operating lease expense	$ 2,509	$ 2,384	$ 4,987	$ 4,808
Variable lease expense	393	524	912	970
Total lease expense	$ 2,902	$ 2,908	$ 5,899	$ 5,778

Leases (Other Information Related To Leases And Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid operating leases	$ 4,918	$ 4,663
Cash received from subleasing of operating lease: Operating cash flows received from subleasing of operating lease	594	1,119
Right-of-use assets obtained in exchange for lease liabilities: Operating leases	$ 4,119	$ 797
Weighted-average remaining lease term (in years): Operating leases	7 years 7 months 6 days	8 years 7 months 6 days
Weighted-average discount rate: Operating leases	3.30%	3.10%

Leases (Future Minimum Lease Payments) (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Leases [Abstract]
Remaining payments in FY2025	$ 4,999
FY2026	10,081
FY2027	10,315
FY2028	10,145
FY2029	9,001
Thereafter	29,601
Total future minimum lease payments	74,142
Less imputed interest	8,333
Lease liability	$ 65,809

Credit Arrangements (Narrative) (Details)		3 Months Ended
Credit Arrangements (Narrative) (Details)	Sep. 08, 2021 USD ($)	Dec. 31, 2024 USD ($)
Short-term Debt [Line Items]
Letters of credit outstanding		$ 900,000
Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member]
Short-term Debt [Line Items]
Interest rate	1.50%
Basis spread on interest rate	1.25%
Effective interest rate		5.82%
Debt term	5 years
Fixed coverage ratio		1
Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member] \| Maximum [Member]
Short-term Debt [Line Items]
Credit agreement capacity	$ 85,000,000
Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member] \| SOFR [Member] \| Maximum [Member]
Short-term Debt [Line Items]
Basis spread on interest rate		1.61%
Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member] \| SOFR [Member] \| Minimum [Member]
Short-term Debt [Line Items]
Basis spread on interest rate		1.36%
Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member] \| Letter Of Credit [Member]
Short-term Debt [Line Items]
Credit agreement capacity	$ 5,000,000
Secured Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member]
Short-term Debt [Line Items]
Line of credit outstanding		$ 0

Income Taxes (Narrative) (Details)	3 Months Ended		6 Months Ended
Income Taxes (Narrative) (Details)	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Effective Income Tax Rate, Continuing Operations	22.40%	25.50%	25.30%	30.10%
Effective federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%

Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2024	Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options remain outstanding		67,000	180,000
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period options are exercisable		10 years
Restricted Shares And RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation related to unvested shares		$ 300
Total unrecognized stock-based compensation, expected period		6 months
Former Chief Financial Officer Chief Operating Officer (Current Chief Executive Officer) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation related to unvested shares	$ 0
Remaining life		5 years 3 months 18 days
Long-Term Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
PSU award description		For PSUs awarded for the three year performance periods ending June 30, 2025, 2026 and 2027, achievement is based on meeting performance goals set for each year within the three year period. The Committee selected Adjusted Operating Income as the performance metric for the performance periods ending June 30, 2025, 2026, and 2027.
Long-Term Incentive Compensation Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation related to unvested shares		$ 3,200
Total unrecognized stock-based compensation, expected period		1 year 4 months 24 days
Stock Option Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants		0
Omnibus Stock Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period		3 years
Shares available for future grants		0
Stock-based Compensation Outside A Plan [Member] \| Former Chief Financial Officer Chief Operating Officer (Current Chief Executive Officer) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options issued under stock option plans	79,000
Weighted average exercise price of options		$ 9.97
Options remain outstanding		79,000
Minimum [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period		1 year
Maximum [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period		3 years

Stock-Based Compensation (Summary Of Total Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract]
Total stock-based compensation expense	$ 963	$ 934	$ 2,101	$ 1,845

Stock-Based Compensation (Schedule Of Unvested Shares - Long-Term Incentive Compensation Plan RSUs) (Details) - Long-Term Incentive Compensation Plan [Member] shares in Thousands	6 Months Ended
	Dec. 31, 2024 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	279
Granted, Shares \| shares	77
Forfeited, Shares \| shares	(37)
Unvested at the end of period, Shares \| shares	319
Unvested at the beginning of period, Weighted average fair value per share \| $ / shares	$ 20.65
Granted, Weighted average fair value per share \| $ / shares	31.66
Forfeited, Weighted average fair value per share \| $ / shares	39.07
Unvested at the end of period, Weighted average fair value \| $ / shares	$ 21.17
Time Based Vest [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	97
Granted, Shares \| shares	31
Unvested at the end of period, Shares \| shares	128
Unvested at the beginning of period, Weighted average fair value per share \| $ / shares	$ 17.92
Granted, Weighted average fair value per share \| $ / shares	31.66
Unvested at the end of period, Weighted average fair value \| $ / shares	$ 21.25
Performance Based Vest [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	182
Granted, Shares \| shares	46
Forfeited, Shares \| shares	(37)
Unvested at the end of period, Shares \| shares	191
Unvested at the beginning of period, Weighted average fair value per share \| $ / shares	$ 22.07
Granted, Weighted average fair value per share \| $ / shares	31.66
Forfeited, Weighted average fair value per share \| $ / shares	39.07
Unvested at the end of period, Weighted average fair value \| $ / shares	$ 21.09

Stock-Based Compensation (Schedule Of Unvested Shares - PSUs And RSUs) (Details) - Restricted Shares And RSUs [Member] shares in Thousands	6 Months Ended
	Dec. 31, 2024 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	16
Granted, Shares \| shares	4
Vested, Shares \| shares	(1)
Unvested at the end of period, Shares \| shares	19
Unvested at the beginning of period, Weighted average fair value per share	$ 21.96
Granted, Weighted average fair value per share	31.66
Vested, Weighted average fair value per share	20.08
Forfeited, Weighted average fair value per share	20.33
Unvested at the end of period, Weighted average fair value	$ 24.1

Stock-Based Compensation (Schedule Of Stock Option Plans) (Details) shares in Thousands	6 Months Ended
	Dec. 31, 2024 $ / shares shares
Share-Based Payment Arrangement, Noncash Expense [Abstract]
Shares, Outstanding at beginning balance \| shares	180
Shares, Exercised \| shares	(101)
Shares, Cancelled \| shares	(12)
Shares, Outstanding at ending balance \| shares	67
Weighted Average Exercise Price, Outstanding at beginning balance \| $ / shares	$ 20.01
Weighted Average Exercise Price, Exercised \| $ / shares	19.26
Weighted Average Exercise Price, Canceled \| $ / shares	34.51
Weighted Average Exercise Price, Outstanding at ending balance \| $ / shares	$ 18.54

Stock-Based Compensation (Schedule Of Options Outstanding And Exercisable) (Details) shares in Thousands	6 Months Ended
	Dec. 31, 2024 $ / shares shares
9.97 - 15.14 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	$ 9.97
Range of Price Upper	$ 15.14
Options Outstanding \| shares	43
Weighted Average Remaining Life (Years)	5 years 3 months 18 days
Weighted Average, Exercise Price	$ 10.62
18.30 - 19.72 Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	18.30
Range of Price Upper	$ 19.72
Options Outstanding \| shares	6
Weighted Average Remaining Life (Years)	6 years 4 months 24 days
Weighted Average, Exercise Price	$ 18.30
21.96 - 27.57 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	21.96
Range of Price Upper	$ 27.57
Options Outstanding \| shares	3
Weighted Average Remaining Life (Years)	4 years
Weighted Average, Exercise Price	$ 24.49
31.06 - 32.80 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	31.06
Range of Price Upper	$ 32.80
Options Outstanding \| shares	6
Weighted Average Remaining Life (Years)	3 years 8 months 12 days
Weighted Average, Exercise Price	$ 32.4
43.09 - 47.45 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	43.09
Range of Price Upper	$ 47.45
Options Outstanding \| shares	9
Weighted Average Remaining Life (Years)	1 year 8 months 12 days
Weighted Average, Exercise Price	$ 45.29
9.97 - 47.45 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	9.97
Range of Price Upper	$ 47.45
Options Outstanding \| shares	67
Weighted Average Remaining Life (Years)	4 years 9 months 18 days
Weighted Average, Exercise Price	$ 18.54

Earnings Per Share (Narrative) (Details) - $ / shares	3 Months Ended		6 Months Ended
Earnings Per Share (Narrative) (Details) - $ / shares	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Earnings Per Share
Dividends declared per common share	$ 0.17	$ 0.15	$ 0.17	$ 0.15

Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Earnings Per Share
Basic shares	5,247	5,184	5,225	5,183
Stock options	111	66	105	74
Non-vested restricted stock units and restricted shares	224	74	224	103
Diluted shares	5,582	5,324	5,554	5,360
Anti-dilutive shares	0	136	0	136