Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2021 | Jan. 27, 2022 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2021 | |
Entity File Number | 0-5151 | |
Document Fiscal Year Focus | 2022 | |
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 | 52001-0877 | |
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 | 6,487,755 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,087 | $ 1,342 |
Trade receivables - less allowances: December 31, 2021, $3,430, June 30, 2021, $3,240 | 50,001 | 55,986 |
Inventories | 179,042 | 161,125 |
Other | 8,399 | 9,421 |
Assets held for sale | 616 | 666 |
Total current assets | 242,145 | 228,540 |
NONCURRENT ASSETS: | ||
Property, plant and equipment, net | 38,495 | 39,783 |
Operating lease right-of-use assets | 41,206 | 27,057 |
Other assets | 1,908 | 1,399 |
TOTAL ASSETS | 323,754 | 296,779 |
CURRENT LIABILITIES: | ||
Accounts payable - trade | 38,092 | 67,773 |
Current portion of operating lease liabilities | 6,665 | 5,833 |
Accrued liabilities: | ||
Payroll and related items | 5,708 | 7,662 |
Insurance | 2,961 | 3,062 |
Restructuring costs | 2,671 | 1,522 |
Advertising | 6,190 | 5,196 |
Environmental remediation | 3,570 | 3,570 |
Other | 5,173 | 5,133 |
Total current liabilities | 71,030 | 99,751 |
LONG-TERM LIABILITIES: | ||
Operating lease liabilities, less current maturities | 37,241 | 24,317 |
Lines of Credit | 59,734 | 3,500 |
Other liabilities | 685 | 1,243 |
Total liabilities | 168,690 | 128,811 |
SHAREHOLDERS' EQUITY: | ||
Common stock - $1 par value; authorized 15,000 shares; 8,153 shares issued and 6,544 outstanding as of December 31, 2021; 8,133 shares issued and 6,848 outstanding as of June 30, 2021 | 8,153 | 8,133 |
Additional paid-in capital | 36,001 | 34,015 |
Treasury stock, at cost; 1,608 shares and 1,284 shares as of December 31, 2021, and June 30, 2021, respectively | (40,978) | (31,320) |
Retained earnings | 151,888 | 157,140 |
Total shareholders' equity | 155,064 | 167,968 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 323,754 | $ 296,779 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Consolidated Balance Sheets [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 3,430 | $ 3,240 |
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized | 15,000 | 15,000 |
Common stock, issued | 8,153 | 8,133 |
Common stock, outstanding | 6,544 | 6,848 |
Treasury stock, shares | 1,608 | 1,284 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements Of Income [Abstract] | ||||
Net sales | $ 141,668 | $ 119,106 | $ 279,356 | $ 224,345 |
Cost of goods sold | 132,141 | 94,728 | 246,419 | 177,152 |
Gross margin | 9,527 | 24,378 | 32,937 | 47,193 |
Selling, general and administrative expenses | 17,541 | 18,911 | 36,326 | 33,086 |
Restructuring expense | 622 | 863 | 774 | 2,244 |
(Gain) on disposal of assets due to restructuring | (5,229) | (1,400) | (5,881) | |
Operating (loss) income | (8,636) | 9,833 | (2,763) | 17,744 |
Interest expense | 223 | 426 | ||
Other (income) | (104) | (162) | (102) | (211) |
(Loss) income before income taxes | (8,755) | 9,995 | (3,087) | 17,955 |
Income tax (benefit) provision | (1,210) | 1,545 | 105 | 5,626 |
Net (loss) income | $ (7,545) | $ 8,450 | $ (3,192) | $ 12,329 |
Weighted average number of common shares outstanding: | ||||
Basic | 6,682 | 7,246 | 6,758 | 7,475 |
Diluted | 6,682 | 7,495 | 6,758 | 7,681 |
(Loss) earnings per share of common stock: | ||||
Basic | $ (1.13) | $ 1.17 | $ (0.47) | $ 1.65 |
Diluted | $ (1.13) | $ 1.13 | $ (0.47) | $ 1.61 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total Par Value Of Common Shares [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Balance, beginning at Jun. 30, 2020 | $ 8,008 | $ 31,748 | $ (1,563) | $ 137,312 | $ 175,505 |
Stock-based compensation | 2 | 954 | 956 | ||
Vesting of restricted stock units and restricted shares | 55 | (387) | (332) | ||
Treasury stock purchases | (9,000) | (9,000) | |||
Cash dividends declared | (383) | (383) | |||
Net (loss) income | 3,879 | 3,879 | |||
Balance, ending at Sep. 30, 2020 | 8,065 | 32,315 | (10,563) | 140,808 | 170,625 |
Balance, beginning at Jun. 30, 2020 | 8,008 | 31,748 | (1,563) | 137,312 | 175,505 |
Net (loss) income | 12,329 | ||||
Balance, ending at Dec. 31, 2020 | 8,082 | 33,373 | (21,576) | 148,528 | 168,407 |
Balance, beginning at Sep. 30, 2020 | 8,065 | 32,315 | (10,563) | 140,808 | 170,625 |
Stock-based compensation | 10 | 1,017 | 1,027 | ||
Stock options exercised | 7 | 41 | 48 | ||
Treasury stock purchases | (11,013) | (11,013) | |||
Cash dividends declared | (730) | (730) | |||
Net (loss) income | 8,450 | 8,450 | |||
Balance, ending at Dec. 31, 2020 | 8,082 | 33,373 | (21,576) | 148,528 | 168,407 |
Balance, beginning at Jun. 30, 2021 | 8,133 | 34,015 | (31,320) | 157,140 | 167,968 |
Stock-based compensation | 3 | 1,159 | 1,162 | ||
Vesting of restricted stock units and restricted shares | 7 | (257) | (250) | ||
Treasury stock purchases | (1,915) | (1,915) | |||
Cash dividends declared | (1,047) | (1,047) | |||
Net (loss) income | 4,353 | 4,353 | |||
Balance, ending at Sep. 30, 2021 | 8,143 | 34,917 | (33,235) | 160,446 | 170,271 |
Balance, beginning at Jun. 30, 2021 | 8,133 | 34,015 | (31,320) | 157,140 | 167,968 |
Net (loss) income | (3,192) | ||||
Balance, ending at Dec. 31, 2021 | 8,153 | 36,001 | (40,978) | 151,888 | 155,064 |
Balance, beginning at Sep. 30, 2021 | 8,143 | 34,917 | (33,235) | 160,446 | 170,271 |
Stock-based compensation | 4 | 1,016 | 1,020 | ||
Vesting of restricted stock units and restricted shares | (2) | (42) | (44) | ||
Stock options exercised | 8 | 110 | 118 | ||
Treasury stock purchases | (7,743) | (7,743) | |||
Cash dividends declared | (1,013) | (1,013) | |||
Net (loss) income | (7,545) | (7,545) | |||
Balance, ending at Dec. 31, 2021 | $ 8,153 | $ 36,001 | $ (40,978) | $ 151,888 | $ 155,064 |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Common stock, par value | $ 1 | |
Total Par Value Of Common Shares [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES: | ||
Net (loss) income | $ (3,192) | $ 12,329 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation | 2,662 | 2,687 |
Deferred income taxes | 2,110 | |
Stock-based compensation expense | 2,182 | 1,983 |
Change in provision for losses on accounts receivable | 190 | 1,335 |
(Gain) on disposal of assets | (1,887) | (5,858) |
Changes in operating assets and liabilities: | ||
Trade receivables | 5,795 | (15,435) |
Inventories | (17,917) | (21,459) |
Other current assets | 1,021 | 6,038 |
Other assets | (508) | 11 |
Accounts payable - trade | (29,521) | 125 |
Accrued liabilities | 720 | 4,954 |
Other long-term liabilities | (543) | 246 |
Net cash (used in) operating activities | (40,998) | (10,934) |
INVESTING ACTIVITIES: | ||
Purchases of investments | (16) | |
Proceeds from sales of investments | 16 | |
Proceeds from sale of capital assets | 1,937 | 18,527 |
Capital expenditures | (1,535) | (663) |
Net cash provided by investing activities | 402 | 17,864 |
FINANCING ACTIVITIES: | ||
Dividends paid | (3,060) | (1,535) |
Treasury stock purchases | (9,658) | (20,013) |
Proceeds from lines of credit | 81,247 | |
Payments on lines of credit | (25,013) | |
Proceeds from issuance of common stock | 118 | 40 |
Shares withheld for tax payments on vested restricted shares | (293) | (323) |
Net cash provided by (used in) financing activities | 43,341 | (21,831) |
Increase (decrease) in cash and cash equivalents | 2,745 | (14,901) |
Cash and cash equivalents at beginning of the period | 1,342 | 48,197 |
Cash and cash equivalents at end of the period | 4,087 | 33,296 |
SUPPLEMENTAL INFORMATION | ||
Cash paid for amounts included in lease liabilities | 3,059 | 2,547 |
Right-of-use assets exchanged for lease liabilities | 16,814 | 2,741 |
Interest paid | 351 | |
Income taxes (refunded), net | (1,719) | (5,783) |
Capital expenditures in accounts payable | $ (160) | |
Capital expenditures in accounts payable | $ 31 |
Basis of Presentation and Descr
Basis of Presentation and Description of Business | 6 Months Ended |
Dec. 31, 2021 | |
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 online marketers of furniture products in the United States. Product offerings include a wide variety of furniture such as sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, and bedroom 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 dealer sales force. COVID-19 - In March 2020, a novel strain of coronavirus (“COVID-19”) was declared a global pandemic by the World Health Organization. This pandemic has negatively affected the U.S. and global economies, disrupted global supply chains and financial markets, led to significant travel and transportation restrictions, including mandatory business closures and orders to shelter in place. The Company’s business operations and financial performance for the fiscal year 2020 were impacted by COVID-19. During the year ended June 30, 2021, the Company saw improvement in our business conditions as retailers reopened and orders increased, however, we continued to see supply chain challenges faced by the furniture industry due to the limited availability of ocean containers and significant increases in ocean container rates, limited availability and inflationary pressures in key materials, and labor shortages both in Asia and the United States. These supply chain issues have continued during the three and six months ended December 31, 2021. The COVID-19 pandemic remains fluid and the extent of the impact on our business may be significant, however, we are unable to predict the extent or nature of these impacts at this time. BASIS OF PRESENTATION – The Consolidated Financial Statements included herein have been prepared by Flexsteel, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished 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, 2021, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022. 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, 2021, appropriately represent, in all material respects, the current status of accounting policies and are incorporated by reference. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS – In December 2019, the FASB issued ASU 2019-12 “Income Taxes Simplifying the Accounting for Income Taxes (Topic 740)” as part of its initiative to reduce complexity in the accounting standards. The amendments in ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and simplifies other aspects of the accounting for income taxes. The amendments in this guidance were effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Effective July 1, 2021, the Company adopted Topic 740 and there was no impact on the Company’s financial statements. |
Inventories
Inventories | 6 Months Ended |
Dec. 31, 2021 | |
Inventories [Abstract] | |
Inventories | 2. INVENTORIES A comparison of inventories is as follows: December 31, June 30,(in thousands) 2021 2021Raw materials $ 25,920 $ 22,500Work in process and finished parts 5,333 6,234Finished goods 147,789 132,391Total $ 179,042 $ 161,125 |
Assets Held For Sale
Assets Held For Sale | 6 Months Ended |
Dec. 31, 2021 | |
Assets Held For Sale [Abstract] | |
Assets Held For Sale | 3. ASSETS HELD FOR SALE During the fiscal year 2020, the Company committed to a plan to sell assets located at the Company’s Mississippi location as part of the Company’s restructuring plan, see Note 5 Restructuring. A summary of the assets held for sale as of December 31, 2021, is included in the table below. Accumulated Net BookLocationAsset Category Cost Depreciation Value(in thousands) Starkville, MississippiBuilding & building improvements 4,615 (4,254) 361 Land & land improvements 694 (439) 255 Total Starkville 5,309 (4,693) 616 Total assets held for sale $ 5,309 $ (4,693) $ 616 |
Leases
Leases | 6 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 4. LEASES The Company accounts for its leases in accordance with ASU No. 2016-02, Leases (Topic 842) (“ASC 842”). 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 has 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 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. On August 20, 2021, Flexsteel entered into a lease agreement for the construction of a 507,830 square foot manufacturing facility in Mexicali, Mexico. The lease commencement date under ASC 842 guidance will be April 1, 2022, the date the lessor makes the building available for use by the Company for purposes of completing any leasehold improvements required by the Company prior to beginning operations. The 12-year lease term begins on June 1, 2022, and ends on May 31, 2034, with options for two five-year extensions. The annual base rent under the lease is $3.1 million-plus taxes, insurance, and common area maintenance costs. On September 28, 2021, Flexsteel entered into a warehousing agreement, a component of which meets the definition of a lease under ASC 842. The lease component includes a 241,920 square foot facility in Greencastle, Pennsylvania, and all improvements and equipment necessary to operate the facility. The lease commencement date is October 1, 2021, the date the building became available for use by the Company. The 125-month lease term began on October 1, 2021, and ends on February 28, 2034, with an option for a 5-year extension. The annual base rent under the lease is $1.8 million-plus taxes, insurance, utilities, and common area maintenance costs. 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 reflected on the Company’s Consolidated Statements of Income were as follows: Three Months Ended Six Months Ended December 31, December 31,(in thousands) 2021 2020 2021 2020Operating lease expense $ 1,821 $ 991 $ 3,210 $ 2,065Variable lease expense 467 74 542 143Total lease expense $ 2,288 $ 1,065 $ 3,752 $ 2,208 Other information related to leases and future minimum lease payments under non-cancellable operating leases were as follows: Six Months Ended December 31, 2021 December 31, 2020(in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,059 $ 2,547 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 16,814 $ 2,741 Weighted-average remaining lease term (in years): Operating leases 4.7 1.9 Weighted-average discount rate: Operating leases 2.5% 3.3% Future minimum lease payments under non-cancellable operating leases were as follows: Six Months Ended December 31, 2021 December 31, 2020(in thousands) Within one year $ 7,819 $ 4,491After one year and within two years 6,872 4,048After two years and within three years 5,590 2,844After three years and within four years 4,167 1,491After four years and within five years 4,242 1After five years 20,227 —Total future minimum lease payments $ 48,917 $ 12,875Less – Discount 5,011 720Lease liability $ 43,906 $ 12,155 |
Restructuring
Restructuring | 6 Months Ended |
Dec. 31, 2021 | |
Restructuring [Abstract] | |
Restructuring | 5. RESTRUCTURING On May 15, 2019, the Company announced its plans to exit the Commercial Office and custom-designed Hospitality product lines. The changes were initial outcomes driven from customer and product line profitability and footprint utilization analyses in the fourth quarter of fiscal 2019. On June 18, 2019, the Company announced it completed the analysis and planning process and set forth the comprehensive transformation program to be executed over a two-year period, which included the previously announced restructuring activities on May 15, 2019. The transformation program included activities such as business simplification, process improvement, exiting of non-core businesses, facility closures, and reductions in the workforce. The Company has substantially completed the portion of the restructuring activities related to the exit of the Commercial Office and custom-designed Hospitality product lines. On April 28, 2020, the Company announced the exit of Vehicle Seating and the remainder of the Hospitality product lines, and subsequently closed its Dubuque, Iowa and Starkville, Mississippi manufacturing facilities. The remaining properties listed for sale as part of the footprint optimization are included in Note 3, Assets Held for Sale. The Company substantially completed the restructuring activities related to the exit of Vehicle Seating and the remainder of the Hospitality product lines during fiscal 2021. As a result of these planned actions, which will be complete in the fiscal year ending June 30, 2022, the Company anticipates incurring pre-tax restructuring and related expenses of approximately $60 million over this two-year timeframe. Total cumulative restructuring and related costs incurred as of December 31, 2021, were $59.4 million. The following is a summary of restructuring costs: Three Months Ended Six Months Ended(in thousands) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020Inventory impairment $ — $ 45 $ — $ 45One-time employee termination benefits — — — 179Other associated costs 622 863 774 2,065Total restructuring and related expenses $ 622 $ 908 $ 774 $ 2,289Reported as: Cost of goods sold $ — $ 45 $ — $ 45Operating expenses $ 622 $ 863 $ 774 $ 2,244 Other associated costs include legal and professional fees, stock-based compensation expenses for retention restricted stock units in connection with the Company’s restructuring plan, and ongoing facilities and transition costs. The roll-forward of the accrued restructuring costs is as follows: One-time Employee Contract Other Inventory Termination Termination Associated (in thousands) Impairment Benefits Costs Costs TotalAccrual balance at June 30, 2021 $ — $ 1,502 $ — $ 20 $ 1,522Costs incurred — — — 774 774Expenses (paid) reimbursed — (130) — 505 375Accrual balance at December 31, 2021 $ — $ 1,372 $ — $ 1,299 $ 2,671 |
Credit Arrangements
Credit Arrangements | 6 Months Ended |
Dec. 31, 2021 | |
Credit Arrangements [Abstract] | |
Credit Arrangements | 6. CREDIT ARRANGEMENTS On August 28, 2020, the Company entered into a two-year secured $25.0 million revolving line of credit with Dubuque Bank and Trust Company, with an interest rate of 1.50% plus LIBOR, subject to a floor of 3.00%. The revolving line of credit was secured by essentially all the Company’s assets, excluding real property, and required the Company to maintain compliance with certain financial and non-financial covenants. This line of credit was subsequently canceled in the first quarter of the fiscal year 2022. 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 $5,000,000 which, upon issuance, would be deemed advances under the revolving line of credit. The Company’s $1.2 million letters of credit previously issued by the Lender are being treated as outstanding under the Credit Agreement. Proceeds of borrowings were used to refinance all indebtedness owed to Dubuque Bank & Trust and for working capital purposes. The Company’s obligations under the Credit Agreement are secured by substantially all of its assets, excluding real property. Subject to certain conditions, borrowings under the Credit Agreement bear interest at LIBOR plus 1.25% or 1.50% per annum, or an effective interest rate of 1.35% on December 31, 2021. When LIBOR becomes unavailable, the replacement rate will be determined pursuant to the terms of the Credit Agreement. The Credit Agreement contains customary representations, warranties, and covenants, including a financial covenant to maintain a fixed coverage ratio of not less than 1.00:1.00. 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, 2021, there was $59.7 million outstanding under the Credit Agreement, exclusive of fees and letters of credit. Letters of credit outstanding at Wells Fargo Bank N.A. (“Wells”) as of December 31, 2021, totaled $1.2 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | 7. 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 quarters ended December 31, 2021, and December 31, 2020, were 13.8% and 15.5%, respectively, and for the six months ended December 31, 2021, and December 31, 2020, were (3.4%) and 31.3%, respectively. The quarter ended December 31, 2020, effective rate of 15.5% was due to a discrete tax benefit arising from the reversal of valuation allowances resulting from the gain on the sale of capital assets. The quarter ended December 31, 2021, and six months ended December 31, 2021, effective rates of 13.8% and (3.4%) were due to the tax benefit on the year-to-date loss not being recorded due to the Company’s valuation allowance position. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 8. 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 upon vesting. Stock-based compensation is included in selling, general and administrative, and restructuring expenses on the Consolidated Statements of Income. The stock-based compensation expense included in the restructuring expense was for retention RSUs in connection with the Company’s restructuring plan. 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, 2021. Three Months Ended Six Months Ended December 31, December 31,(in thousands) 2021 2020 2021 2020Total stock-based compensation expense $ 1,020 $ 1,029 $ 2,182 $ 1,983 The Company has two stock-based compensation plans available for granting awards to employees and directors. (1) Long-Term Incentive Compensation Plan (“LTIP”) The LTIP provides for performance stock units (“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”). For awards under the LTIP for the three years ending June 30, 2022, 2023, and 2024, participants may earn one-third of the award in each of the three years based on meeting performance goals for that year. The Committee selected Adjusted Earnings Before Interest and Tax with a defined percentage growth in fiscal years 2022, 2023, and 2024 as the performance metric. In conjunction with each grant of PSUs, the Committee grants RSUs under the 2013 Omnibus Stock Plan that vest at the end of three years. The table below sets forth, as of December 31, 2021, the number of unvested PSUs granted at the target performance level for the 2020-2022, 2021-2023, and 2022-2024 performance periods under the LTIP and the number of unvested RSUs granted in conjunction with the PSUs: 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 ShareUnvested as June 30, 2021 107 $ 13.89 142 $ 13.36 249 $ 13.59Granted 27 42.50 40 42.50 67 42.50Forfeited (3) 39.49 (4) 39.49 (7) 39.49Unvested as of December 31, 2021 131 $ 19.25 178 $ 19.39 309 $ 19.33 Total unrecognized stock-based compensation related to the unvested PSUs at the target performance level and the related unvested RSUs was $3.05 million as of December 31, 2021, which is expected to be recognized over a weighted-average period of 1.4 years. (2) 2013 Omnibus Stock Plan The 2013 Omnibus Stock Plan is for key employees, officers and directors and provides for the granting of incentive and nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights, and performance units. 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) during the six months ended December 31, 2021, is as follows: Weighted Average Shares Fair Value (in thousands) Per ShareUnvested as of June 20, 2021 56 $ 26.81Granted 3 42.50Vested (18) 28.22Forfeited (3) 19.98Unvested as of December 31, 2021 38 $ 27.81 Total unrecognized stock-based compensation related to unvested restricted shares and unvested RSUs (not granted in conjunction with the PSUs) was $0.6 million as of December 31, 2021, which is expected to be recognized over a weighted-average period of 1.3 years. Options A summary of the activity of the Company’s stock option plans as of December 31, 2021, is presented below: Weighted Shares Average (in thousands) Exercise PriceOutstanding at June 30, 2021 232 $ 21.91Granted — —Exercised (8) 15.75Canceled (9) 36.58Outstanding at December 31, 2021 215 $ 21.50 The following table summarizes information for options outstanding at December 31, 2021: Options Weighted AverageRange of Outstanding Remaining ExercisePrices (in thousands) Life (Years) Price$ 9.97 - 15.14 97 8.2 $ 12.64 18.30 - 19.72 12 5.3 18.99 21.96 - 27.57 58 5.3 24.21 31.06 - 32.80 32 4.4 32.30 43.09 - 47.45 16 4.8 45.42$ 9.97 - 47.45 215 6.4 $ 21.50 The total unrecognized stock-based compensation expense related to options was $0.10 million as of December 31, 2021, which is expected to be recognized over a weighted-average period of 1.2 years. Stock-based compensation granted outside a plan During the quarter ended June 30, 2020, the Company awarded its Chief Financial Officer/Chief Operating Officer 79,000 options outside of any Company stock plans. The total unrecognized stock-based compensation expense related to options awarded outside a plan was $0.04 million as of December 31, 2021, which is expected to be recognized over 1.3 years. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9. 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 Plan, and non-vested restricted stock units and restricted shares. The Company calculates the dilutive effect of outstanding options, restricted stock units, and restricted shares 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. In computing EPS for the three and six months ended December 31, 2021, there are no dilutive shares as the company reported a net loss. Three Months Ended Six Months Ended December 31, December 31,(in thousands) 2021 2020 2021 2020Basic shares 6,682 7,246 6,758 7,475Potential common shares: Stock options — 147 — 110Non-vested restricted stock units and restricted shares — 102 — 96 — 249 — 206Diluted shares 6,682 7,495 6,758 7,681 Anti-dilutive shares — 63 — 91 Cash dividends declared per common share were $0.15 and $0.30 for the three and six months ended December 31, 2021, respectively, and were $0.10 and $0.15 for the three and six months ended December 31, 2020, respectively. |
Litigation
Litigation | 6 Months Ended |
Dec. 31, 2021 | |
Litigation [Abstract] | |
Litigation | 10. LITIGATION Environmental Matters – In March 2016, the Company received a General Notice Letter for the Lane Street Groundwater Superfund Site (the “Lane Street Site”) located in Elkhart, Indiana from the U.S. Environmental Protection Agency (EPA). In April 2016, the EPA issued their proposed clean-up plan for groundwater pollution and request for public comment. The Company responded to the request for public comment in May 2016. The EPA issued a Record of Decision selecting a remedy in August 2016 and estimated total costs to remediate of $3.6 million. In July 2017, the EPA issued a Special Notice Letter to the Company demanding that the Company perform the remedy selected and pay for the remediation cost and past response costs of $5.5 million. On October 12, 2017, the Company, after consultation with its insurance carriers, offered an amount, fully reimbursable by insurance coverage, to the EPA to resolve this matter. On November 6, 2017, the settlement offer extended on October 12, 2017, was rejected. In April 2018, the EPA issued a Unilateral Administrative Order for Remedial Design and Remedial Action (the “Order”) against the Company. The Order was issued under Section 106(a) of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. §9606(a). The Order directs the Company to perform remedial design and remedial action for the Lane Street Site. The Order was to be effective May 29, 2018. To ensure completion of the remediation work, the EPA required the Company to secure financial assurance in the initial amount of $3.6 million, which as noted above, is the estimated cost of remedial work. The Company believes that financial assurance is not required because it meets the relevant financial test criteria as provided in the Order. In May 2018, the EPA agreed to suspend enforcement of the Order so that the Company could conduct environmental testing upgradient to its former manufacturing location pursuant to an Administrative Order on Consent (AOC). On April 24, 2019, the Company signed an AOC with the EPA to conduct the upgradient investigation. The Company negotiated site access to the upgradient property over a period of months in 2019, followed by completion of sampling activities on that property on September 28-29, 2019. Following multiple exchanges from November 2019 through early 2020, the Company submitted a final and supplemental report to the EPA regarding the results of the upgradient investigation on June 17, 2020. Through an agreement with the EPA, the statute of limitations for potential claims by the EPA was extended through February 28, 2022. The Company reflected a $3.6 million liability in the Consolidated Balance Sheets for the fiscal year ended June 30, 2018. Despite the Company’s position that it did not cause nor contribute to the contamination, the Company continues to reflect this liability in the Consolidated Balance Sheets as of December 31, 2021, in accordance with FASB issued Asset Retirement and Environmental Obligations (ASC 410-30). The Company continues to evaluate the Order, its legal options, and insurance coverages to assert its defense and recovery of current and future expenses related to this matter. 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. |
Basis of Presentation and Des_2
Basis of Presentation and Description of Business (Policies) | 6 Months Ended |
Dec. 31, 2021 | |
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 online marketers of furniture products in the United States. Product offerings include a wide variety of furniture such as sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, and bedroom 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 dealer sales force. |
COVID-19 | COVID-19 - In March 2020, a novel strain of coronavirus (“COVID-19”) was declared a global pandemic by the World Health Organization. This pandemic has negatively affected the U.S. and global economies, disrupted global supply chains and financial markets, led to significant travel and transportation restrictions, including mandatory business closures and orders to shelter in place. The Company’s business operations and financial performance for the fiscal year 2020 were impacted by COVID-19. During the year ended June 30, 2021, the Company saw improvement in our business conditions as retailers reopened and orders increased, however, we continued to see supply chain challenges faced by the furniture industry due to the limited availability of ocean containers and significant increases in ocean container rates, limited availability and inflationary pressures in key materials, and labor shortages both in Asia and the United States. These supply chain issues have continued during the three and six months ended December 31, 2021. The COVID-19 pandemic remains fluid and the extent of the impact on our business may be significant, however, we are unable to predict the extent or nature of these impacts at this time. |
Basis Of Presentation | BASIS OF PRESENTATION – The Consolidated Financial Statements included herein have been prepared by Flexsteel, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished 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, 2021, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022. 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, 2021, appropriately represent, in all material respects, the current status of accounting policies and are incorporated by reference. |
Recently Adopted Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS – In December 2019, the FASB issued ASU 2019-12 “Income Taxes Simplifying the Accounting for Income Taxes (Topic 740)” as part of its initiative to reduce complexity in the accounting standards. The amendments in ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and simplifies other aspects of the accounting for income taxes. The amendments in this guidance were effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Effective July 1, 2021, the Company adopted Topic 740 and there was no impact on the Company’s financial statements. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Inventories [Abstract] | |
Comparison Of Inventories | December 31, June 30,(in thousands) 2021 2021Raw materials $ 25,920 $ 22,500Work in process and finished parts 5,333 6,234Finished goods 147,789 132,391Total $ 179,042 $ 161,125 |
Assets Held For Sale (Tables)
Assets Held For Sale (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Assets Held For Sale [Abstract] | |
Summary Of Assets Held For Sale | Accumulated Net BookLocationAsset Category Cost Depreciation Value(in thousands) Starkville, MississippiBuilding & building improvements 4,615 (4,254) 361 Land & land improvements 694 (439) 255 Total Starkville 5,309 (4,693) 616 Total assets held for sale $ 5,309 $ (4,693) $ 616 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components Of Leases | Three Months Ended Six Months Ended December 31, December 31,(in thousands) 2021 2020 2021 2020Operating lease expense $ 1,821 $ 991 $ 3,210 $ 2,065Variable lease expense 467 74 542 143Total lease expense $ 2,288 $ 1,065 $ 3,752 $ 2,208 |
Other Lease Information | Six Months Ended December 31, 2021 December 31, 2020(in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,059 $ 2,547 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 16,814 $ 2,741 Weighted-average remaining lease term (in years): Operating leases 4.7 1.9 Weighted-average discount rate: Operating leases 2.5% 3.3% |
Future minimum lease payments under non-cancellable operating leases | Six Months Ended December 31, 2021 December 31, 2020(in thousands) Within one year $ 7,819 $ 4,491After one year and within two years 6,872 4,048After two years and within three years 5,590 2,844After three years and within four years 4,167 1,491After four years and within five years 4,242 1After five years 20,227 —Total future minimum lease payments $ 48,917 $ 12,875Less – Discount 5,011 720Lease liability $ 43,906 $ 12,155 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Restructuring [Abstract] | |
Summary Of Restructuring Costs | Three Months Ended Six Months Ended(in thousands) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020Inventory impairment $ — $ 45 $ — $ 45One-time employee termination benefits — — — 179Other associated costs 622 863 774 2,065Total restructuring and related expenses $ 622 $ 908 $ 774 $ 2,289Reported as: Cost of goods sold $ — $ 45 $ — $ 45Operating expenses $ 622 $ 863 $ 774 $ 2,244 |
Components Of Restructuring Costs | One-time Employee Contract Other Inventory Termination Termination Associated (in thousands) Impairment Benefits Costs Costs TotalAccrual balance at June 30, 2021 $ — $ 1,502 $ — $ 20 $ 1,522Costs incurred — — — 774 774Expenses (paid) reimbursed — (130) — 505 375Accrual balance at December 31, 2021 $ — $ 1,372 $ — $ 1,299 $ 2,671 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2021 2020Total stock-based compensation expense $ 1,020 $ 1,029 $ 2,182 $ 1,983 |
Schedule Of Stock Option Plans | Weighted Shares Average (in thousands) Exercise PriceOutstanding at June 30, 2021 232 $ 21.91Granted — —Exercised (8) 15.75Canceled (9) 36.58Outstanding at December 31, 2021 215 $ 21.50 |
Schedule Of Options Outstanding And Exercisable | Options Weighted AverageRange of Outstanding Remaining ExercisePrices (in thousands) Life (Years) Price$ 9.97 - 15.14 97 8.2 $ 12.64 18.30 - 19.72 12 5.3 18.99 21.96 - 27.57 58 5.3 24.21 31.06 - 32.80 32 4.4 32.30 43.09 - 47.45 16 4.8 45.42$ 9.97 - 47.45 215 6.4 $ 21.50 |
Restricted Shares And RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Unvested Shares | Weighted Average Shares Fair Value (in thousands) Per ShareUnvested as of June 20, 2021 56 $ 26.81Granted 3 42.50Vested (18) 28.22Forfeited (3) 19.98Unvested as of December 31, 2021 38 $ 27.81 |
Long-Term Incentive Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Unvested Shares | 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 ShareUnvested as June 30, 2021 107 $ 13.89 142 $ 13.36 249 $ 13.59Granted 27 42.50 40 42.50 67 42.50Forfeited (3) 39.49 (4) 39.49 (7) 39.49Unvested as of December 31, 2021 131 $ 19.25 178 $ 19.39 309 $ 19.33 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | Three Months Ended Six Months Ended December 31, December 31,(in thousands) 2021 2020 2021 2020Basic shares 6,682 7,246 6,758 7,475Potential common shares: Stock options — 147 — 110Non-vested restricted stock units and restricted shares — 102 — 96 — 249 — 206Diluted shares 6,682 7,495 6,758 7,681 Anti-dilutive shares — 63 — 91 |
Inventories (Comparison Of Inve
Inventories (Comparison Of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Inventories [Abstract] | ||
Raw materials | $ 25,920 | $ 22,500 |
Work in process and finished parts | 5,333 | 6,234 |
Finished goods | 147,789 | 132,391 |
Total | $ 179,042 | $ 161,125 |
Assets Held For Sale (Summary O
Assets Held For Sale (Summary Of Assets Held For Sale) (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations [Member] $ in Thousands | Dec. 31, 2021USD ($) |
Long Lived Assets Held-for-sale [Line Items] | |
Cost | $ 5,309 |
Accumulated Depreciation | (4,693) |
Net Book Value | 616 |
Starkville, Mississippi [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Cost | 5,309 |
Accumulated Depreciation | (4,693) |
Net Book Value | 616 |
Buildings and improvements [Member] | Starkville, Mississippi [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Cost | 4,615 |
Accumulated Depreciation | (4,254) |
Net Book Value | 361 |
Land and Land Improvements [Member] | Starkville, Mississippi [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Cost | 694 |
Accumulated Depreciation | (439) |
Net Book Value | $ 255 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | Sep. 28, 2021USD ($)ft² | Aug. 20, 2021USD ($)ft² |
Mexicali, Mexico [Member] | ||
Short-term Debt [Line Items] | ||
Area of Real Estate Property | ft² | 507,830 | |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 12 years | |
Lessee, Operating Lease, Lease Not yet Commenced, Renewal Term | 5 years | |
Base rent under the lease | $ | $ 3.1 | |
Greencastle, PA [Member] | ||
Short-term Debt [Line Items] | ||
Area of Real Estate Property | ft² | 241,920 | |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 125 months | |
Lessee, Operating Lease, Lease Not yet Commenced, Renewal Term | 5 years | |
Base rent under the lease | $ | $ 1.8 |
Leases (Components Of Leases) (
Leases (Components Of Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1,821 | $ 991 | $ 3,210 | $ 2,065 |
Variable lease expense | 467 | 74 | 542 | 143 |
Total lease expense | $ 2,288 | $ 1,065 | $ 3,752 | $ 2,208 |
Leases (Other Lease Information
Leases (Other Lease Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 3,059 | $ 2,547 |
Right-of-use assets obtained in exchange for lease liabilities: Operating leases | $ 16,814 | $ 2,741 |
Weighted-average remaining lease term (in years): Operating leases | 4 years 8 months 12 days | 1 year 10 months 24 days |
Weighted-average discount rate: Operating leases | 2.50% | 3.30% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Within one year | $ 7,819 | $ 4,491 |
After one year and within two years | 6,872 | 4,048 |
After two years and within three years | 5,590 | 2,844 |
After three years and within four years | 4,167 | 1,491 |
After four years and within five years | 4,242 | 1 |
After five years | 20,227 | |
Total future minimum lease payments | 48,917 | 12,875 |
Less - Discount | 5,011 | 720 |
Lease liability | $ 43,906 | $ 12,155 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring costs | $ 2,671 | $ 2,671 | $ 1,522 | ||
Restructuring Charges | 622 | $ 863 | $ 774 | $ 2,244 | |
Commercial Office And Custom-Designed Hospitality Product Lines [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Period of transformation program execution | 2 years | ||||
Expected restructuring costs | $ 60,000 | $ 60,000 | |||
Restructuring Charges | $ 59,400 |
Restructuring (Summary Of Restr
Restructuring (Summary Of Restructuring Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 622 | $ 908 | $ 774 | $ 2,289 |
Cost Of Goods Sold [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 45 | 45 | ||
Operating Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 622 | 863 | 774 | 2,244 |
Inventory Impairment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 45 | 45 | ||
One-time Employee Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 179 | |||
Other Associated Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 622 | $ 863 | $ 774 | $ 2,065 |
Restructuring (Roll Forward of
Restructuring (Roll Forward of Accrued Restructuring Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Accrual, Beginning balance | $ 1,522 | |||
Costs incurred | $ 622 | $ 908 | 774 | $ 2,289 |
Expenses (paid) reimbursed | 375 | |||
Accrual, Ending balance | 2,671 | 2,671 | ||
Inventory Impairment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs incurred | 45 | 45 | ||
One-time Employee Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrual, Beginning balance | 1,502 | |||
Costs incurred | 179 | |||
Expenses (paid) reimbursed | (130) | |||
Accrual, Ending balance | 1,372 | 1,372 | ||
Other Associated Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrual, Beginning balance | 20 | |||
Costs incurred | 622 | $ 863 | 774 | $ 2,065 |
Expenses (paid) reimbursed | 505 | |||
Accrual, Ending balance | $ 1,299 | $ 1,299 |
Credit Arrangements (Narrative)
Credit Arrangements (Narrative) (Details) - USD ($) | Sep. 08, 2021 | Aug. 28, 2020 | Dec. 31, 2021 |
Wells Fargo Bank N.A. [Member] | |||
Short-term Debt [Line Items] | |||
Debt term | 5 years | ||
Letters of credit outstanding | $ 1,200,000 | ||
Secured Credit Agreement [Member] | |||
Short-term Debt [Line Items] | |||
Credit agreement capacity | $ 25,000,000 | ||
Line of credit outstanding | $ 59,700,000 | ||
Debt term | 2 years | ||
Letters of credit outstanding | $ 1,200,000 | ||
Fixed coverage ratio | 100.00% | ||
Secured Credit Agreement [Member] | Minimum [Member] | |||
Short-term Debt [Line Items] | |||
Interest rate under prime rate | 3.00% | ||
Secured Credit Agreement [Member] | Libor Plus 1 [Member] | |||
Short-term Debt [Line Items] | |||
Basis spread on interest rate | 1.50% | ||
Interest rate at period end | 1.35% | ||
Secured Credit Agreement [Member] | Libor Plus 1 [Member] | Minimum [Member] | |||
Short-term Debt [Line Items] | |||
Interest rate under prime rate | 1.25% | ||
Secured Credit Agreement [Member] | Libor Plus 1 [Member] | Maximum [Member] | |||
Short-term Debt [Line Items] | |||
Interest rate under prime rate | 1.50% | ||
Secured Credit Agreement [Member] | Wells Fargo Bank N.A. [Member] | |||
Short-term Debt [Line Items] | |||
Credit agreement capacity | $ 85,000,000 | ||
Secured Credit Agreement [Member] | Wells Fargo Bank N.A. [Member] | Letter Of Credit [Member] | Maximum [Member] | |||
Short-term Debt [Line Items] | |||
Minimum working capital required to be maintained under covenant | $ 5,000,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | ||||
Effective Income Tax Rate, Continuing Operations | 13.80% | 15.50% | (3.40%) | 31.30% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 13.80% | 15.50% | (3.40%) |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020shares | Dec. 31, 2021USD ($)item | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of plans | item | 2 | |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized stock-based compensation, expected period | 1 year 2 months 12 days | |
Total unrecognized stock-based compensation expense related to options | $ 100 | |
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 | $ 600 | |
Total unrecognized stock-based compensation, expected period | 1 year 3 months 18 days | |
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 | $ 3,050 | |
Total unrecognized stock-based compensation, expected period | 1 year 4 months 24 days | |
Stock Option Plans [Member] | Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period options are exercisable | 10 years | |
Stock-based Compensation Outside A Plan [Member] | Chief Executive Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized stock-based compensation related to unvested shares | $ 40 | |
Total unrecognized stock-based compensation, expected period | 1 year 3 months 18 days | |
Stock-based Compensation Outside A Plan [Member] | Chief Financial Officer/Chief Operating Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options issued under stock option plans | shares | 79,000 | |
Minimum [Member] | Restricted Shares And RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 1 year | |
Maximum [Member] | Restricted Shares And RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 3 years |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Total Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-Based Compensation [Abstract] | ||||
Total stock-based compensation expense | $ 1,020 | $ 1,029 | $ 2,182 | $ 1,983 |
Stock-Based Compensation (Sched
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, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the beginning of period, Shares | shares | 249 |
Granted, Shares | shares | 67 |
Forfeited, Shares | shares | (7) |
Unvested at the end of period, Shares | shares | 309 |
Unvested at the beginning of period, Weighted average fair value per share | $ / shares | $ 13.59 |
Granted, Weighted average fair value per share | $ / shares | 42.50 |
Forfeited, Weighted average fair value per share | $ / shares | 39.49 |
Unvested at the end of period, Weighted average fair value | $ / shares | $ 19.33 |
Time Based Vest [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the beginning of period, Shares | shares | 107 |
Granted, Shares | shares | 27 |
Forfeited, Shares | shares | (3) |
Unvested at the end of period, Shares | shares | 131 |
Unvested at the beginning of period, Weighted average fair value per share | $ / shares | $ 13.89 |
Granted, Weighted average fair value per share | $ / shares | 42.50 |
Forfeited, Weighted average fair value per share | $ / shares | 39.49 |
Unvested at the end of period, Weighted average fair value | $ / shares | $ 19.25 |
Performance Based Vest [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the beginning of period, Shares | shares | 142 |
Granted, Shares | shares | 40 |
Forfeited, Shares | shares | (4) |
Unvested at the end of period, Shares | shares | 178 |
Unvested at the beginning of period, Weighted average fair value per share | $ / shares | $ 13.36 |
Granted, Weighted average fair value per share | $ / shares | 42.50 |
Forfeited, Weighted average fair value per share | $ / shares | 39.49 |
Unvested at the end of period, Weighted average fair value | $ / shares | $ 19.39 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule Of Unvested Shares - Restricted Shares And RSUs) (Details) - Restricted Shares And RSUs [Member] shares in Thousands | 6 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the beginning of period, Shares | shares | 56 |
Granted, Shares | shares | 3 |
Vested, Shares | shares | (18) |
Forfeited, Shares | shares | (3) |
Unvested at the end of period, Shares | shares | 38 |
Unvested at the beginning of period, Weighted average fair value per share | $ / shares | $ 26.81 |
Granted, Weighted average fair value per share | $ / shares | 42.50 |
Vested, Weighted average fair value per share | $ / shares | 28.22 |
Forfeited, Weighted average fair value per share | $ / shares | 19.98 |
Unvested at the end of period, Weighted average fair value | $ / shares | $ 27.81 |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule Of Stock Option Plans) (Details) shares in Thousands | 6 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Shares, Outstanding at beginning balance | shares | 232 |
Shares, Exercised | shares | (8) |
Shares, Cancelled | shares | (9) |
Shares, Outstanding at ending balance | shares | 215 |
Weighted Average Exercise Price, Outstanding at beginning balance | $ / shares | $ 21.91 |
Weighted Average Exercise Price, Exercised | $ / shares | 15.75 |
Weighted Average Exercise Price, Cancelled | $ / shares | 36.58 |
Weighted Average Exercise Price, Outstanding at ending balance | $ / shares | $ 21.50 |
Stock-Based Compensation (Sch_4
Stock-Based Compensation (Schedule Of Options Outstanding And Exercisable) (Details) shares in Thousands | 6 Months Ended |
Dec. 31, 2021$ / sharesshares | |
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 | 97 |
Weighted Average Remaining Life (Years) | 8 years 2 months 12 days |
Weighted Average, Exercise Price | $ 12.64 |
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 | 12 |
Weighted Average Remaining Life (Years) | 5 years 3 months 18 days |
Weighted Average, Exercise Price | $ 18.99 |
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 | 58 |
Weighted Average Remaining Life (Years) | 5 years 3 months 18 days |
Weighted Average, Exercise Price | $ 24.21 |
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 | 32 |
Weighted Average Remaining Life (Years) | 4 years 4 months 24 days |
Weighted Average, Exercise Price | $ 32.30 |
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 | 16 |
Weighted Average Remaining Life (Years) | 4 years 9 months 18 days |
Weighted Average, Exercise Price | $ 45.42 |
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 | 215 |
Weighted Average Remaining Life (Years) | 6 years 4 months 24 days |
Weighted Average, Exercise Price | $ 21.50 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Dividends declared per common share | $ 0.15 | $ 0.10 | $ 0.30 | $ 0.15 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Basic shares | 6,682 | 7,246 | 6,758 | 7,475 |
Stock options | 147 | 110 | ||
Non-vested restricted stock units and restricted shares | 102 | 96 | ||
Potential common shares, total | 249 | 206 | ||
Diluted shares | 6,682 | 7,495 | 6,758 | 7,681 |
Anti-dilutive shares | 63 | 91 |
Litigation (Narrative) (Details
Litigation (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | |||||
Apr. 30, 2018 | Jul. 31, 2017 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2018 | Aug. 31, 2016 | |
Litigation [Abstract] | ||||||
Estimated amount of possible loss | $ 3,600 | |||||
Environmental remediation | $ 3,600 | $ 5,500 | ||||
Liabilities | $ 168,690 | $ 128,811 | $ 3,600 |