−Removed: Flexsteel Industries, Inc.
−Removed: and Subsidiaries (the “Company”) is one of the largest manufacturers, importers and online marketers of residential furniture and products in the United States.
−Removed: Product offerings include a wide variety of upholstered 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.
+Added: Flexsteel Industries, Inc., and Subsidiaries (the “Company”) is one of the largest manufacturers, importers and online marketers of residential furniture and products in the United States.
+Added: 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 network.
−Removed: As of June 30, 2020, the Company has substantially completed its exit from the Commercial Office and custom-designed Hospitality product lines.
−Removed: On April 28, 2020, the Company announced it will exit the Vehicle Seating and the remainder of the Hospitality product lines, and subsequently closed its Dubuque, Iowa and Starkville, Mississippi manufacturing facilities.
−Removed: The Company expects to complete the restructuring activities related to the exit of the Vehicle Seating and the remainder of the Hospitality product lines during fiscal 2021.
The Company operates in one reportable segment, furniture products.
−Removed: The Company’s furniture products business involves the distribution of manufactured and imported products consisting of a broad line of upholstered and wooden furniture for residential and contract markets.
+Added: The Company’s furniture products business involves the distribution of manufactured and imported products consisting of a broad line of furniture for residential and contract markets.
Set forth below is information for the past three fiscal years showing the Company’s net sales attributable to each of the areas of application:
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(in thousands)
+Added: In fiscal 2020, the Company substantially completed its exit from the Commercial Office and custom design Hospitality product lines which served contract markets.
+Added: During fiscal 2021, the Company substantially completed its restructuring activities related to the exit of its Vehicle Seating and the remainder of its Hospitality product lines, which also served contract markets.
Manufacturing and Offshore Sourcing
−Removed: During the fiscal year ended June 30, 2020, the Company operated manufacturing facilities located in Georgia, Juarez, Mexico, Iowa and Mississippi (both locations in Iowa and Mississippi ceased operations effective June 30, 2020).
+Added: During the fiscal year ended June 30, 2021, the Company operated manufacturing facilities located in Georgia and Juarez, Mexico.
These on-going manufacturing operations are integral to the Company’s product offerings and distribution strategy by offering smaller and more frequent product runs of a wider product selection.
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Foreign Operations
−Removed: The Company makes minimal export sales.
−Removed: At June 30, 2020, the Company had approximately 60 employees located in Asia to ensure Flexsteel’s quality standards are met and to coordinate the delivery of purchased products.
−Removed: The Company leases and operates two manufacturing facilities in Juarez, Mexico utilizing contracted labor.
−Removed: The two Juarez facilities totaled 356,000 square feet.
−Removed: The Company also leases a 51,000 square feet bonded warehouse in Binh Duong, Vietnam to facilitate efficient consolidation and shipment to its U.S.
−Removed: warehouses and customers.
−Removed: Effective August 2020, the Company exited the bonded warehouse in Binh Duong, Vietnam.
+Added: The Company has minimal export sales.
+Added: On June 30, 2021, the Company had approximately 41 employees located in Asia to ensure Flexsteel’s quality standards are met and to coordinate the delivery of purchased products.
+Added: The Company leases and operates three manufacturing facilities in Juarez, Mexico utilizing contracted labor.
+Added: The three Juarez facilities totaled 553,000 square feet.
Customer Backlog
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Raw Materials
−Removed: The Company utilizes various types of wood, fabric, leather, filling material, high carbon spring steel, bar and wire stock, polyurethane and other raw materials in manufacturing furniture.
+Added: The Company utilizes various types of wood, fabric, leather, filling material, high carbon spring steel, bar and wire stock, polyurethane foam and other raw materials in manufacturing furniture.
While the Company purchases these materials from numerous outside suppliers, both U.S.
and foreign, it is not dependent upon any single source of supply.
−Removed: The costs of certain raw materials fluctuate, but all continue to be readily available.
−Removed: Working Capital Practices
−Removed: For a discussion of the Company’s working capital practices, see “Liquidity and Capital Resources” in Item 7 of this Annual Report on Form 10-K.
+Added: The costs of certain raw materials fluctuate, but all continue to be readily available with the exception of polyurethane foam which experienced a shortage in February 2021 due to the deep freeze in Louisiana and Texas where most of the key chemical inputs for polyurethane foam are produced.
+Added: As of June 30, 2021, the availability of polyurethane foam was still constrained.
Industry Factors
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The Company is subject to various local, state, and federal laws, regulations and agencies that affect businesses generally, see “Risk Factors” in Item 1A of this Annual Report on Form 10-K.
+Added: Our compliance with federal, state and local laws and regulations did not have a material effect upon our capital expenditures, earnings or competitive position during the fiscal year ended June 30, 2021.
Environmental Matters
−Removed: The Company is subject to environmental laws and regulations with respect to product content and industrial waste, see “Risk Factors” in Item 1A and “Legal Proceedings” in Item 3 of this Annual Report on Form 10-K.
+Added: All of Flexsteel’s stakeholders have a responsibility to protect our employees and our environment.
+Added: The officers of Flexsteel and its subsidiaries will use our role as business and community leaders to set the tone at the top to guide our management teams in their efforts to improve the workplace and the environment we directly impact.
+Added: Because we are committed to sustainable business practices, to our people, and to our communities, we will continue to grow and expand the scope of our dedications to the stewardship of our valued
+Added: The Company is subject to environmental laws and regulations with respect to product content and industrial waste.
+Added: Further discussion is included in “Risk Factors” in Item 1A and “Legal Proceedings” in Item 3 of this Annual Report on Form 10-K.
Trademarks and Patents
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Management believes it has good relations with employees.
+Added: In response to the COVID-19 pandemic, we have implemented various measures to protect the physical health, mental health, and productivity of our workforce.
+Added: These measures include, but are not limited to, enhanced cleaning and sanitizing within our facilities, and face covering requirements.
+Added: In addition, we have adopted new policies and procedures for our employees and have taken steps within our workplaces to promote social distancing.
Available Information
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.