Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Entity File Number | 0-5151 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
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 | 5,156,287 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,570 | $ 3,365 |
Trade receivables - less allowances: March 31, 2024, $2,451, June 30, 2023, $2,600 | 38,884 | 38,168 |
Inventories | 96,589 | 122,076 |
Other | 9,235 | 6,417 |
Assets held for sale | 616 | 616 |
Total current assets | 149,894 | 170,642 |
NONCURRENT ASSETS: | ||
Property, plant and equipment, net | 39,963 | 38,652 |
Operating lease right-of-use assets | 63,398 | 68,294 |
Deferred income taxes | 7,080 | 7,154 |
Other assets | 13,431 | 5,808 |
TOTAL ASSETS | 273,766 | 290,550 |
CURRENT LIABILITIES: | ||
Accounts payable - trade | 21,655 | 24,745 |
Current portion of operating lease liabilities | 7,615 | 7,179 |
Accrued liabilities: | ||
Payroll and related items | 9,306 | 9,955 |
Insurance | 2,214 | 1,920 |
Restructuring costs | 1,825 | |
Sales and advertising related items | 4,568 | 5,358 |
Other | 6,554 | 5,948 |
Total current liabilities | 53,737 | 55,105 |
LONG-TERM LIABILITIES: | ||
Operating lease liabilities, less current maturities | 59,892 | 64,974 |
Line of credit | 14,184 | 28,273 |
Other liabilities | 689 | 577 |
Total liabilities | 128,502 | 148,929 |
SHAREHOLDERS' EQUITY: | ||
Common stock - $1 par value; authorized 15,000 shares; 8,363 shares issued and 5,156 outstanding as of March 31, 2024; 8,292 shares issued and 5,174 outstanding as of June 30, 2023 | 8,363 | 8,292 |
Additional paid-in capital | 38,656 | 36,605 |
Treasury stock, at cost; 3,207 shares, and 3,118 shares as of March 31, 2024, and June 30, 2023, respectively | (71,732) | (70,072) |
Retained earnings | 169,977 | 166,796 |
Total shareholders' equity | 145,264 | 141,621 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 273,766 | $ 290,550 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Consolidated Balance Sheets [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 2,451 | $ 2,600 |
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized | 15,000,000 | 15,000,000 |
Common stock, issued | 8,363,000 | 8,292,000 |
Common stock, outstanding | 5,156,000 | 5,174,000 |
Treasury stock, shares | 3,207,000 | 3,118,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements Of Income And Comprehensive Income [Abstract] | ||||
Net sales | $ 107,219 | $ 99,052 | $ 301,930 | $ 287,873 |
Cost of goods sold | 83,902 | 80,407 | 238,253 | 238,041 |
Gross profit | 23,317 | 18,645 | 63,677 | 49,832 |
Selling, general and administrative expenses | 17,708 | 16,529 | 51,566 | 45,967 |
Environmental remediation | (2,788) | |||
Restructuring expense | 2,627 | 2,627 | ||
Other expense | 347 | |||
Operating income | 2,982 | 2,116 | 9,484 | 6,306 |
Interest expense | 336 | 260 | 1,395 | 897 |
Other (income) | (14) | (12) | (14) | (11) |
Income before income taxes | 2,660 | 1,868 | 8,103 | 5,420 |
Income tax provision | 857 | 393 | 2,497 | 803 |
Net income and comprehensive income | $ 1,803 | $ 1,475 | $ 5,606 | $ 4,617 |
Weighted average number of common shares outstanding: | ||||
Basic | 5,154 | 5,179 | 5,175 | 5,249 |
Diluted | 5,448 | 5,352 | 5,410 | 5,427 |
Earnings per share of common stock: | ||||
Basic | $ 0.35 | $ 0.28 | $ 1.08 | $ 0.88 |
Diluted | $ 0.33 | $ 0.28 | $ 1.04 | $ 0.85 |
Consolidated Statements Of Chan
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, 2022 | $ 131,560 | $ 8,190 | $ 34,467 | $ (66,372) | $ 155,275 |
Stock-based compensation | 825 | 8 | 817 | ||
Vesting of restricted stock units and restricted shares | (350) | 28 | (378) | ||
Treasury stock purchases | (403) | (403) | |||
Cash dividends declared | (833) | (833) | |||
Net income | 289 | 289 | |||
Balance, ending at Sep. 30, 2022 | 131,088 | 8,226 | 34,906 | (66,775) | 154,731 |
Balance, beginning at Jun. 30, 2022 | 131,560 | 8,190 | 34,467 | (66,372) | 155,275 |
Net income | 4,617 | ||||
Balance, ending at Mar. 31, 2023 | 132,803 | 8,247 | 36,463 | (69,340) | 157,433 |
Balance, beginning at Sep. 30, 2022 | 131,088 | 8,226 | 34,906 | (66,775) | 154,731 |
Stock-based compensation | 845 | 10 | 835 | ||
Vesting of restricted stock units and restricted shares | (57) | 3 | (60) | ||
Treasury stock purchases | (1,823) | (1,823) | |||
Cash dividends declared | (819) | (819) | |||
Net income | 2,853 | 2,853 | |||
Balance, ending at Dec. 31, 2022 | 132,087 | 8,239 | 35,681 | (68,598) | 156,765 |
Stock-based compensation | 802 | 8 | 794 | ||
Vesting of restricted stock units and restricted shares | (12) | (12) | |||
Treasury stock purchases | (742) | (742) | |||
Cash dividends declared | (807) | (807) | |||
Net income | 1,475 | 1,475 | |||
Balance, ending at Mar. 31, 2023 | 132,803 | 8,247 | 36,463 | (69,340) | 157,433 |
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 | 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 | 5,606 | ||||
Balance, ending at Mar. 31, 2024 | 145,264 | 8,363 | 38,656 | (71,732) | 169,977 |
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 | 3,051 | 3,051 | |||
Balance, ending at Dec. 31, 2023 | 143,533 | 8,357 | 37,697 | (71,499) | 168,978 |
Stock-based compensation | 877 | 3 | 874 | ||
Stock options exercised | 88 | 3 | 85 | ||
Treasury stock purchases | (233) | (233) | |||
Cash dividends declared | (804) | (804) | |||
Net income | 1,803 | 1,803 | |||
Balance, ending at Mar. 31, 2024 | $ 145,264 | $ 8,363 | $ 38,656 | $ (71,732) | $ 169,977 |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 |
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 | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING ACTIVITIES: | ||
Net income | $ 5,606 | $ 4,617 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 2,940 | 3,483 |
Deferred income taxes | 74 | |
Stock-based compensation expense | 2,722 | 2,472 |
Change in provision for losses on accounts receivable | (149) | (149) |
Loss on disposal of assets | 60 | |
Changes in operating assets and liabilities: | ||
Trade receivables | (567) | 4,748 |
Inventories | 25,487 | 27,901 |
Other current assets | (2,818) | (2,622) |
Other assets | (7,623) | |
Accounts payable - trade | (3,039) | (6,311) |
Accrued liabilities | 1,561 | (3,430) |
Other long-term liabilities | 107 | (247) |
Net cash provided by operating activities | 24,361 | 30,462 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (4,361) | (3,597) |
Net cash (used in) investing activities | (4,361) | (3,597) |
FINANCING ACTIVITIES: | ||
Dividends paid | (2,446) | (3,241) |
Treasury stock purchases | (1,660) | (2,968) |
Proceeds from line of credit | 270,421 | 254,482 |
Payments on line of credit | (284,510) | (274,494) |
Proceeds from issuance of common stock | 88 | |
Shares withheld for tax payments on vested restricted shares | (688) | (419) |
Net cash (used in) financing activities | (18,795) | (26,640) |
Increase in cash and cash equivalents | 1,205 | 225 |
Cash and cash equivalents at beginning of the period | 3,365 | 2,184 |
Cash and cash equivalents at end of the period | 4,570 | 2,409 |
SUPPLEMENTAL INFORMATION | ||
Interest paid | 1,470 | 1,079 |
Cash paid for income taxes, net | 3,273 | 2,911 |
Capital expenditures in accounts payable | $ 260 | $ 140 |
Basis Of Presentation And Descr
Basis Of Presentation And Description Of Business | 9 Months Ended |
Mar. 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 nine months ended March 31, 2024, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2024. 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, 2023 , appropriately represent, in all material respects, the current status of accounting policies. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2024 | |
Inventories [Abstract] | |
Inventories | 2. INVENTORIES A comparison of inventories is as follows: March 31, June 30, (in thousands) 2024 2023 Raw materials $ 16,752 $ 18,616 Work in process and finished parts 3,127 3,741 Finished goods 76,710 99,719 Total $ 96,589 $ 122,076 |
Assets Held For Sale
Assets Held For Sale | 9 Months Ended |
Mar. 31, 2024 | |
Assets Held For Sale [Abstract] | |
Assets Held For Sale | 3. ASSETS HELD FOR SALE During fiscal year 2020, the Company committed to a plan to sell assets located at the Company’s Starkville, Mississippi location as part of a restructuring plan. As of March 31, 2024, the Company continues to actively market the assets in Starkville, Mississippi. A summary of the assets held for sale as of March 31, 2024, is included in the table below. Accumulated Net Book Location Asset Category Cost Depreciation Value (in thousands) Starkville, Mississippi Building & building improvements $ 4,615 $ ( 4,254 ) $ 361 Land & land improvements 694 ( 439 ) 255 Total assets held for sale $ 5,309 $ ( 4,693 ) $ 616 |
Leases
Leases | 9 Months Ended |
Mar. 31, 2024 | |
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 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. 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. 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 was July 1, 2022, the date the lessor made 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 ends on June 30, 2034, with options for two five-year extensions . Annual base rent under the lease is $ 3.2 million plus taxes, insurance and common area maintenance costs. As of March 31, 2024 , the Company has not begun operations in the Mexicali facility. On May 3, 2023, the Company entered into a sublease with a third party for 105,000 square feet of the Mexicali facility with a term of 12 months. Annual rent net of broker's fees under the sublease is $ 1 million, plus a proportionate share of taxes, insurance, and common area maintenance. On October 2, 2023, the Company entered into a sublease with a third party for 339,413 square feet of the facility with an initial term of 12 months with four 6-month extensions . Annual rent net of broker's fees under the sublease is $ 2.2 million, plus a proportionate share of taxes, insurance, and common area maintenance. At March 31, 2024, the Company determined that no impairment indicators exist with regard to the Mexicali lease given the current and expected sublease tenants and plans for future operations in the facility. At March 31, 2024, the right-of-use asset associated specifically with the Mexicali lease is $ 30.5 m illion and associated lease liability is $ 32.1 m illion. Sublease income net of broker's fees received from the sub-tenant is offset against operating lease expense in the Company’s Consolidated Statements of Income. 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 Nine Months Ended March 31, March 31, (in thousands) 2024 2023 2024 2023 Operating lease expense $ 2,394 $ 2,700 $ 7,202 $ 8,066 Variable lease expense 518 482 1,488 1,390 Total lease expense $ 2,912 $ 3,182 $ 8,690 $ 9,456 Other information related to leases and future minimum lease payments under non-cancelable operating leases were as follows: Nine Months Ended March 31, 2024 March 31, 2023 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 7,069 $ 6,575 Cash received from subleasing of operating lease: Operating cash flows received from subleasing of operating lease $ 1,975 $ — Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 797 $ 35,305 Weighted-average remaining lease term (in years): Operating leases 8.4 9.4 Weighted-average discount rate: Operating leases 3.1 % 2.9 % Future minimum lease payments under non-cancelable operating leases were as follows: March 31, 2024 Remaining payments in FY2024 $ 2,432 FY2025 9,418 FY2026 9,208 FY2027 9,378 FY2028 9,144 Thereafter 37,040 Total future minimum lease payments $ 76,620 Less imputed interest 9,113 Lease liability $ 67,507 |
Restructuring
Restructuring | 9 Months Ended |
Mar. 31, 2024 | |
Restructuring [Abstract] | |
Restructuring | 5. RESTRUCTURING On February 5, 2024, the Company announced its plan to close its Dublin, Georgia manufacturing facility. The closure is expected to be complete by the end of fourth quarter fiscal year 2024. As a result of the planned closure, the Company anticipated incurring pre-tax restructuring and related expenses between $ 3.0 million and $ 3.1 million. Total cumulative restructuring and related costs incurred as of March 31, 2024, was $ 2.6 million. The following is a summary of restructuring costs: Three Months Ended Nine Months Ended (in thousands) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 One-time employee termination benefits $ 2,409 $ — $ 2,409 $ — Other associated costs 218 — 218 — Total restructuring and related expenses $ 2,627 $ — $ 2,627 $ — Reported as: Operating expenses $ 2,627 $ — $ 2,627 $ — One-time employee termination benefits include costs for employee separation benefits. Other associated costs primarily includes inventory and equipment transfer costs and other transition costs. The rollforward of the accrued restructuring costs is as follows: One-time Employee Other Termination Associated (in thousands) Benefits Costs Total Accrual balance on June 30, 2023 $ — $ — $ — Costs incurred 2,409 218 2,627 Expenses (paid) ( 694 ) ( 108 ) ( 802 ) Accrual balance on March 31, 2024 $ 1,715 $ 110 $ 1,825 |
Credit Arrangements
Credit Arrangements | 9 Months Ended |
Mar. 31, 2024 | |
Credit Arrangements [Abstract] | |
Credit Arrangements | 6. 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 March 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 September 8, 2021, 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 o f 6.68 %, on March 31, 2024. As of March 31, 2024, there was $ 14.2 million outstanding under the Credit Agreement, exclusive of fees and letters of credit. Letters of credit outstanding with the Lender as of March 31, 2024 , totaled $ 1.1 million. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2024 | |
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 three months ended March 31, 2024, and March 31, 2023, was 32.2 % and 21.0 % , respectively. The Company's effective tax rate for the nine months ended March 31, 2024 and 2023 , was 30.8 % and 14.8 %, respectively. For the three and nine months ended March 31, 2024 , the effective tax rate differs from the statutory tax rate of 21 % due to nondeductible stock compensation, state taxes, the impacts associated with uncertain tax positions, and impact of foreign operations. For the three and nine months ended March 31, 2023 , the effective tax rate differs from the statutory tax rate of 21 % due to nondeductible stock compensation, state taxes, the impacts associated with uncertain tax positions, as well as impacts arising from the reversal of a valuation allowance associated with movements in certain deferred tax assets . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Mar. 31, 2024 | |
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 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 nine months ended March 31, 2024 and 2023. Three Months Ended Nine Months Ended March 31, March 31, (in thousands) 2024 2023 2024 2023 Total stock-based compensation expense $ 877 $ 802 $ 2,722 $ 2,472 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 March 31, 2024, the number of unvested PSUs granted at the target performance level for the 2022-2024, 2023-2025, and 2024-2026 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 period ending June 30, 2024 participants may earn the award based on a cumulative three year performance goal. For PSUs awarded for the three year performance periods ending June 30, 2025 and 2026, 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 based on a defined percentage growth as the performance metric for the performance periods ending June 30, 2024, 2025, and 2026. 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, 2023 79 $ 24.56 211 $ 19.19 290 $ 20.65 Granted 66 18.91 99 18.91 165 18.91 Vested — — ( 75 ) 12.15 ( 75 ) 12.15 Forfeited ( 3 ) 21.45 ( 22 ) 15.57 ( 25 ) 16.28 Unvested as of March 31, 2024 142 $ 22.00 213 $ 21.91 355 $ 21.94 Total unrecognized stock-based compensation related to the unvested PSUs at the target performance level and the related unvested RSUs was $ 3.5 mil lion as of March 31, 2024, which is expected to be recognized over a weighted-average period of 1.7 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 March 31, 2024, is as follows: Weighted Average Shares Fair Value (in thousands) Per Share Unvested as of June 30, 2023 74 $ 21.67 Granted 4 20.06 Vested ( 8 ) 28.66 Forfeited ( 1 ) 20.33 Unvested as of March 31, 2024 69 $ 20.79 Total unrecognized stock-based compensation related to unvested restricted shares and unvested RSUs (not granted in conjunction with the PSUs) wa s $ 0.3 mi llion as of March 31, 2024, which is expected to be recognized over a weighted-average pe riod of 0.6 y ear. Options A summary of the activity of the Company’s stock option plans as of March 31, 2024, is presented below: Weighted Shares Average (in thousands) Exercise Price Outstanding at June 30, 2023 202 $ 20.98 Exercised ( 3 ) $ 32.13 Canceled ( 18 ) 27.40 Outstanding at March 31, 2024 181 $ 20.15 The following table summarizes information for options outstanding at March 31, 2024: Options Weighted Average Range of Outstanding Remaining Exercise Prices (in thousands) Life (Years) Price $ 9.97 - 15.14 97 5.9 $ 12.64 18.30 - 19.72 6 7.2 18.30 21.96 - 27.57 39 4.8 22.64 31.06 - 32.80 26 2.1 32.29 43.09 - 47.45 13 2.5 45.28 $ 9.97 - 47.45 181 4.9 $ 20.15 There is no unrecognized stock-based compensation expense related to these options as of March 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 President) 79,000 options outside of any Company stock plans. All 79,000 options remain outstanding as of March 31, 2024 , with an exercise price of $ 9.97 and a remaining life of 6.0 years. There is no remaining unrecognized stock-based compensation expense related to these options. During the quarter ended December 31, 2018, the Company awarded its Chief Executive Officer 55,000 options outside of any Company stock plans. All 55,000 options remain outstanding as of March 31, 2024 , with an exercise price of $ 21.96 and a remaining life of 4.7 ye ars. There is no remaining unrecognized stock-based compensation expense related to these options. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share | |
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 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 Nine Months Ended March 31, March 31, (in thousands) 2024 2023 2024 2023 Basic shares 5,154 5,179 5,175 5,249 Potential common shares: Stock options 151 75 103 60 Non-vested restricted stock units and restricted shares 143 98 132 118 Diluted shares 5,448 5,352 5,410 5,427 Anti-dilutive shares 12 154 48 161 Cash dividends declared per common share were $ 0.15 and $ 0.45 for the three and nine months ended March 31, 2024 , respectively, and were $ 0.15 and $ 0.45 for the three and nine months ended March 31, 2023 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2024 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 10. COMMITMENTS AND CONTINGENCIES 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 directed 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, was the estimated cost of remedial work. The Company believed that financial assurance was not required because it met 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. Despite the Company’s position that it did not cause or contribute to the contamination, the Company reached a settlement with the EPA and the State of Indiana, which was filed as a consent decree in the U.S. District Court for the Northern District of Indiana on October 24, 2022. The consent decree required Flexsteel to pay $ 9.8 million in resolution of the matter. Flexsteel also reached agreements with its insurance carriers for partial reimbursement of the settlement. During the quarter ended December 31, 2022, the Company made full payment in accordance with the settlement agreement and as a result of insurance proceeds received, the Company recorded income of $ 2.8 million for the quarter ended December 31, 2022. 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. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 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 nine months ended March 31, 2024, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2024. 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, 2023 , appropriately represent, in all material respects, the current status of accounting policies. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Inventories [Abstract] | |
Comparison Of Inventories | March 31, June 30, (in thousands) 2024 2023 Raw materials $ 16,752 $ 18,616 Work in process and finished parts 3,127 3,741 Finished goods 76,710 99,719 Total $ 96,589 $ 122,076 |
Assets Held For Sale (Tables)
Assets Held For Sale (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Assets Held For Sale [Abstract] | |
Summary Of Assets Held For Sale | Accumulated Net Book Location Asset Category Cost Depreciation Value (in thousands) Starkville, Mississippi Building & building improvements $ 4,615 $ ( 4,254 ) $ 361 Land & land improvements 694 ( 439 ) 255 Total assets held for sale $ 5,309 $ ( 4,693 ) $ 616 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Components Of Leases Excluding Impact Of Sublease Income | Three Months Ended Nine Months Ended March 31, March 31, (in thousands) 2024 2023 2024 2023 Operating lease expense $ 2,394 $ 2,700 $ 7,202 $ 8,066 Variable lease expense 518 482 1,488 1,390 Total lease expense $ 2,912 $ 3,182 $ 8,690 $ 9,456 |
Other Information Related To Leases And Future Minimum Lease Payments | Nine Months Ended March 31, 2024 March 31, 2023 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 7,069 $ 6,575 Cash received from subleasing of operating lease: Operating cash flows received from subleasing of operating lease $ 1,975 $ — Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 797 $ 35,305 Weighted-average remaining lease term (in years): Operating leases 8.4 9.4 Weighted-average discount rate: Operating leases 3.1 % 2.9 % |
Future Minimum Lease Payments | March 31, 2024 Remaining payments in FY2024 $ 2,432 FY2025 9,418 FY2026 9,208 FY2027 9,378 FY2028 9,144 Thereafter 37,040 Total future minimum lease payments $ 76,620 Less imputed interest 9,113 Lease liability $ 67,507 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Restructuring [Abstract] | |
Summary Of Restructuring Costs | Three Months Ended Nine Months Ended (in thousands) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 One-time employee termination benefits $ 2,409 $ — $ 2,409 $ — Other associated costs 218 — 218 — Total restructuring and related expenses $ 2,627 $ — $ 2,627 $ — Reported as: Operating expenses $ 2,627 $ — $ 2,627 $ — |
Roll-forward Of Accrued Restructuring Costs | One-time Employee Other Termination Associated (in thousands) Benefits Costs Total Accrual balance on June 30, 2023 $ — $ — $ — Costs incurred 2,409 218 2,627 Expenses (paid) ( 694 ) ( 108 ) ( 802 ) Accrual balance on March 31, 2024 $ 1,715 $ 110 $ 1,825 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Total Stock-Based Compensation Expense | Three Months Ended Nine Months Ended March 31, March 31, (in thousands) 2024 2023 2024 2023 Total stock-based compensation expense $ 877 $ 802 $ 2,722 $ 2,472 |
Schedule Of Stock Option Plans | Weighted Shares Average (in thousands) Exercise Price Outstanding at June 30, 2023 202 $ 20.98 Exercised ( 3 ) $ 32.13 Canceled ( 18 ) 27.40 Outstanding at March 31, 2024 181 $ 20.15 |
Schedule Of Options Outstanding And Exercisable | Options Weighted Average Range of Outstanding Remaining Exercise Prices (in thousands) Life (Years) Price $ 9.97 - 15.14 97 5.9 $ 12.64 18.30 - 19.72 6 7.2 18.30 21.96 - 27.57 39 4.8 22.64 31.06 - 32.80 26 2.1 32.29 43.09 - 47.45 13 2.5 45.28 $ 9.97 - 47.45 181 4.9 $ 20.15 |
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, 2023 74 $ 21.67 Granted 4 20.06 Vested ( 8 ) 28.66 Forfeited ( 1 ) 20.33 Unvested as of March 31, 2024 69 $ 20.79 |
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, 2023 79 $ 24.56 211 $ 19.19 290 $ 20.65 Granted 66 18.91 99 18.91 165 18.91 Vested — — ( 75 ) 12.15 ( 75 ) 12.15 Forfeited ( 3 ) 21.45 ( 22 ) 15.57 ( 25 ) 16.28 Unvested as of March 31, 2024 142 $ 22.00 213 $ 21.91 355 $ 21.94 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share | |
Schedule Of Earnings Per Share, Basic And Diluted | Three Months Ended Nine Months Ended March 31, March 31, (in thousands) 2024 2023 2024 2023 Basic shares 5,154 5,179 5,175 5,249 Potential common shares: Stock options 151 75 103 60 Non-vested restricted stock units and restricted shares 143 98 132 118 Diluted shares 5,448 5,352 5,410 5,427 Anti-dilutive shares 12 154 48 161 |
Inventories (Comparison Of Inve
Inventories (Comparison Of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Inventories [Abstract] | ||
Raw materials | $ 16,752 | $ 18,616 |
Work in process and finished parts | 3,127 | 3,741 |
Finished goods | 76,710 | 99,719 |
Total | $ 96,589 | $ 122,076 |
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 | Mar. 31, 2024 USD ($) |
Long Lived Assets Held-for-sale [Line Items] | |
Cost | $ 5,309 |
Accumulated Depreciation | (4,693) |
Net Book Value | 616 |
Buildings & Building 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 & 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 Thousands | 9 Months Ended | |||||
Oct. 02, 2023 USD ($) ft² | May 03, 2023 USD ($) ft² | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jul. 01, 2022 | Aug. 20, 2021 ft² | |
Short-term Debt [Line Items] | ||||||
Lessee, Operating Lease, Term of Contract | 12 years | |||||
Lessee, Operating Lease, Option to Extend | options for two five-year extensions | |||||
Sublease area | ft² | 339,413 | 105,000 | ||||
Sublease term | 12 months | |||||
Sublease initial term | 12 months | |||||
Sublease extensions | four 6-month extensions | |||||
Sublease annual rent | $ 2,200 | $ 1,000 | ||||
Operating lease right-of-use assets | $ 63,398 | $ 68,294 | ||||
Lease liability | 67,507 | |||||
Mexicali, Mexico [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Area of Real Estate Property | ft² | 507,830 | |||||
Annual base rent | 3,200 | |||||
Operating lease right-of-use assets | 30,500 | |||||
Lease liability | $ 32,100 |
Leases (Components Of Leases Ex
Leases (Components Of Leases Excluding Impact Of Sublease Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||||
Operating lease expense | $ 2,394 | $ 2,700 | $ 7,202 | $ 8,066 |
Variable lease expense | 518 | 482 | 1,488 | 1,390 |
Total lease expense | $ 2,912 | $ 3,182 | $ 8,690 | $ 9,456 |
Leases (Other Information Relat
Leases (Other Information Related To Leases And Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid operating leases | $ 7,069 | $ 6,575 |
Cash received from subleasing of operating lease: Operating cash flows received from subleasing of operating lease | 1,975 | |
Right-of-use assets obtained in exchange for lease liabilities: Operating leases | $ 797 | $ 35,305 |
Weighted-average remaining lease term (in years): Operating leases | 8 years 4 months 24 days | 9 years 4 months 24 days |
Weighted-average discount rate: Operating leases | 3.10% | 2.90% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Leases [Abstract] | |
Remaining payments in FY2024 | $ 2,432 |
FY2025 | 9,418 |
FY2026 | 9,208 |
FY2027 | 9,378 |
FY2028 | 9,144 |
Thereafter | 37,040 |
Total future minimum lease payments | 76,620 |
Less imputed interest | 9,113 |
Lease liability | $ 67,507 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | $ 1,825 | $ 1,825 |
Restructuring Charges | 2,627 | 2,627 |
Dublin, Georgia Manufacturing Facility [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 2,600 | |
Dublin, Georgia Manufacturing Facility [Member] | Minimum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | 3,000 | 3,000 |
Dublin, Georgia Manufacturing Facility [Member] | Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | $ 3,100 | $ 3,100 |
Restructuring (Summary Of Restr
Restructuring (Summary Of Restructuring Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 2,627 | |
Operating Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 2,627 | 2,627 |
One-Time Employee Termination Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 2,409 | 2,409 |
Other Associated Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 218 | 218 |
Total Restructuring And Related Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 2,627 | $ 2,627 |
Restructuring (Roll-forward Of
Restructuring (Roll-forward Of Accrued Restructuring Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | $ 2,627 | |
Expenses (paid) | (802) | |
Accrual, Ending balance | $ 1,825 | 1,825 |
One-Time Employee Termination Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | 2,409 | 2,409 |
Expenses (paid) | (694) | |
Accrual, Ending balance | 1,715 | 1,715 |
Other Associated Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | 218 | 218 |
Expenses (paid) | (108) | |
Accrual, Ending balance | $ 110 | $ 110 |
Credit Arrangements (Narrative)
Credit Arrangements (Narrative) (Details) $ in Millions | 9 Months Ended | |
Sep. 08, 2021 USD ($) | Mar. 31, 2024 USD ($) | |
Short-term Debt [Line Items] | ||
Letters of credit outstanding | $ 1.1 | |
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 | 6.68% | |
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 | |
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 | |
Secured Credit Agreement [Member] | Wells Fargo Bank N.A. [Member] | ||
Short-term Debt [Line Items] | ||
Line of credit outstanding | $ 14.2 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Taxes [Abstract] | ||||
Effective Income Tax Rate, Continuing Operations | 32.20% | 21% | 30.80% | 14.80% |
Effective federal statutory income tax rate | 21% | 21% | 21% | 21% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2018 | Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options remain outstanding | 181,000 | 202,000 | |||
Stock Option [Member] | |||||
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 | 7 months 6 days | ||||
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 | ||||
Former Chief Financial Officer/Chief Operating Officer (Current President) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized stock-based compensation related to unvested shares | $ 0 | ||||
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 period ending June 30, 2024 participants may earn the award based on a cumulative three year performance goal. For PSUs awarded for the three year performance periods ending June 30, 2025 and 2026, 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 based on a defined percentage growth as the performance metric for the performance periods ending June 30, 2024, 2025, and 2026. | ||||
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 | $ 3,500 | ||||
Total unrecognized stock-based compensation, expected period | 1 year 8 months 12 days | ||||
Long-Term Incentive Compensation Plan [Member] | 2024, 2025, and 2026 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period for performance awards, years | 3 years | ||||
Long-Term Incentive Compensation Plan [Member] | 2024, 2025, and 2026 [Member] | Scenario, Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of award | 33% | ||||
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] | Chief Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options issued under stock option plans | 55,000,000 | ||||
Weighted average exercise price of options | $ 21.96 | ||||
Remaining life | 4 years 8 months 12 days | ||||
Options remain outstanding | 55,000,000 | ||||
Stock-based Compensation Outside A Plan [Member] | Former Chief Financial Officer/Chief Operating Officer (Current President) [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 | ||||
Remaining life | 6 years | ||||
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 (Summa
Stock-Based Compensation (Summary Of Total Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Stock-Based Compensation [Abstract] | ||||
Total stock-based compensation expense | $ 877 | $ 802 | $ 2,722 | $ 2,472 |
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 | 9 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the beginning of period, Shares | shares | 290 |
Granted, Shares | shares | 165 |
Vested, Shares | shares | (75) |
Forfeited, Shares | shares | (25) |
Unvested at the end of period, Shares | shares | 355 |
Unvested at the beginning of period, Weighted average fair value per share | $ / shares | $ 20.65 |
Granted, Weighted average fair value per share | $ / shares | 18.91 |
Vested, Weighted average fair value per share | $ / shares | 12.15 |
Forfeited, Weighted average fair value per share | $ / shares | 16.28 |
Unvested at the end of period, Weighted average fair value | $ / shares | $ 21.94 |
Time Based Vest [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the beginning of period, Shares | shares | 79 |
Granted, Shares | shares | 66 |
Forfeited, Shares | shares | (3) |
Unvested at the end of period, Shares | shares | 142 |
Unvested at the beginning of period, Weighted average fair value per share | $ / shares | $ 24.56 |
Granted, Weighted average fair value per share | $ / shares | 18.91 |
Forfeited, Weighted average fair value per share | $ / shares | 21.45 |
Unvested at the end of period, Weighted average fair value | $ / shares | $ 22 |
Performance Based Vest [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the beginning of period, Shares | shares | 211 |
Granted, Shares | shares | 99 |
Vested, Shares | shares | (75) |
Forfeited, Shares | shares | (22) |
Unvested at the end of period, Shares | shares | 213 |
Unvested at the beginning of period, Weighted average fair value per share | $ / shares | $ 19.19 |
Granted, Weighted average fair value per share | $ / shares | 18.91 |
Vested, Weighted average fair value per share | $ / shares | 12.15 |
Forfeited, Weighted average fair value per share | $ / shares | 15.57 |
Unvested at the end of period, Weighted average fair value | $ / shares | $ 21.91 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule Of Unvested Shares - PSUs And RSUs) (Details) - Restricted Shares And RSUs [Member] shares in Thousands | 9 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the beginning of period, Shares | shares | 74 |
Granted, Shares | shares | 4 |
Vested, Shares | shares | (8) |
Forfeited, Shares | shares | (1) |
Unvested at the end of period, Shares | shares | 69 |
Unvested at the beginning of period, Weighted average fair value per share | $ / shares | $ 21.67 |
Granted, Weighted average fair value per share | $ / shares | 20.06 |
Vested, Weighted average fair value per share | $ / shares | 28.66 |
Forfeited, Weighted average fair value per share | $ / shares | 20.33 |
Unvested at the end of period, Weighted average fair value | $ / shares | $ 20.79 |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule Of Stock Option Plans) (Details) shares in Thousands | 9 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Stock-Based Compensation [Abstract] | |
Shares, Outstanding at beginning balance | shares | 202 |
Shares, Exercised | shares | (3) |
Shares, Cancelled | shares | (18) |
Shares, Outstanding at ending balance | shares | 181 |
Weighted Average Exercise Price, Outstanding at beginning balance | $ / shares | $ 20.98 |
Weighted Average Exercise Price, Exercised | $ / shares | 32.13 |
Weighted Average Exercise Price, Canceled | $ / shares | 27.4 |
Weighted Average Exercise Price, Outstanding at ending balance | $ / shares | $ 20.15 |
Stock-Based Compensation (Sch_4
Stock-Based Compensation (Schedule Of Options Outstanding And Exercisable) (Details) shares in Thousands | 9 Months Ended |
Mar. 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 | 97 |
Weighted Average Remaining Life (Years) | 5 years 10 months 24 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 | 6 |
Weighted Average Remaining Life (Years) | 7 years 2 months 12 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 | 39 |
Weighted Average Remaining Life (Years) | 4 years 9 months 18 days |
Weighted Average, Exercise Price | $ 22.64 |
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 | 26 |
Weighted Average Remaining Life (Years) | 2 years 1 month 6 days |
Weighted Average, Exercise Price | $ 32.29 |
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 | 13 |
Weighted Average Remaining Life (Years) | 2 years 6 months |
Weighted Average, Exercise Price | $ 45.28 |
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 | 181 |
Weighted Average Remaining Life (Years) | 4 years 10 months 24 days |
Weighted Average, Exercise Price | $ 20.15 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share | ||||
Dividends declared per common share | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.45 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share | ||||
Basic shares | 5,154 | 5,179 | 5,175 | 5,249 |
Stock options | 151 | 75 | 103 | 60 |
Non-vested restricted stock units and restricted shares | 143 | 98 | 132 | 118 |
Diluted shares | 5,448 | 5,352 | 5,410 | 5,427 |
Anti-dilutive shares | 12 | 154 | 48 | 161 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 24, 2022 | Apr. 30, 2018 | Dec. 31, 2022 | Mar. 31, 2023 | Jul. 31, 2017 | Aug. 31, 2016 | |
Loss Contingencies [Line Items] | ||||||
Environmental remediation | $ 2,800 | $ 2,788 | ||||
Environmental Protection Agency (EPA) [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Estimated amount of possible loss | $ 5,500 | $ 3,600 | ||||
Settlement | $ 9,800 | |||||
Estimated cost of remedial work | $ 3,600 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Subsequent Event [Line Items] | |
Restructuring and related expenses | $ 1,825 |
One -Time Costs | |
Subsequent Event [Line Items] | |
Restructuring and related expenses | $ 1,715 |