Item 5. Market for Registrant’s Common Equity
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Share Investment Performance
The following graph shows changes over the past five-year period in the value of $100 invested in: (1) Flexsteel’s common stock (FLXS); (2) The NASDAQ Global Market; (3) an industry peer group of the following: American Woodmark Corp, Bassett Furniture Ind., Culp Inc., Dixie Group Inc., Ethan Allen Interiors Inc., HNI Corp., Hooker Furniture Corp., Johnson Outdoors Inc., Kimball International, Knoll Inc., La-Z-Boy Inc., Lifetime Brands Inc., Lovesac Co., Patrick Industries Inc., Sleep Number Corp., and Trex Company, Inc.
2016
2017
2018
2019
2020
2021
Flexsteel
100.00
138.65
104.40
46.37
36.07
115.36
NASDAQ
100.00
128.19
167.17
177.22
203.71
318.38
Peer Group
100.00
124.19
135.51
135.95
180.00
314.15
The Company’s common stock is traded on the NASDAQ Global Select Market under the trading symbol FLXS.
The Company estimates there were approximately 263 holders of common stock of the Company as of June 30, 2021. The payment of future cash dividends is within the discretion of the Company’s Board of Directors and will depend, among other factors, on its earnings, capital requirements and operating and financial condition.
Purchases of Equity Securities
On June 1, 2020, the Company’s Board of Directors authorized a $6 million share repurchase program through June 9, 2021. On August 20, 2020, the Company’s Board of Directors authorized an additional $8 million share repurchase program to begin on September 4, 2020, through September 3, 2021. On October 22, 2020, the Company’s Board of Directors authorized another $30 million share repurchase program through October 29, 2023. As of October 31, 2020, the $6 million and $8 million repurchase programs were completed. The following table summarizes the activity of the common stock repurchases under the program for the year ended June 30, 2021. All purchases were made in the open market.
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Total Number
Average
Total Number
Approximate Dollar Value
of Shares
Price Paid
of Shares Purchased
of Shares that May Yet
Period
Purchased
per Share
as Part of Plan
Be Purchased
As of June 30, 2020
132,197
$
11.83
132,197
$
4,429,960
July 1, 2020, to July 31, 2020
155,808
14.46
155,808
2,168,981
August 1, 2020, to August 31, 2020
116,562
17.24
116,562
153,690
September 1, 2020, to September 30, 2020
223,905
21.16
223,905
3,405,667
As of September 30, 2020
628,472
$
16.81
628,472
$
3,405,667
October 1, 2020, to October 31, 2020
132,326
25.69
132,326
30,000,000
November 1, 2020, to November 30, 2020
132,831
29.55
132,831
26,067,622
December 1, 2020, to December 31, 2020
101,689
32.69
101,689
22,738,200
As of December 31, 2020
995,318
$
21.31
995,318
$
22,738,200
January 1, 2021, to January 31, 2021
84,012
35.15
84,012
19,780,863
February 1, 2021, to February 28, 2021
94,104
34.24
94,104
16,553,899
March 1, 2021, to March 31, 2021
75,536
35.23
75,536
13,888,648
As of March 31, 2021
1,248,970
$
24.06
1,248,970
$
13,888,648
April 1, 2021, to April 30, 2021
34,825
36.51
34,825
12,615,453
As of June 30, 2021
1,283,795
$
24.40
1,283,795
$
12,615,453
Item 6. Selected Financial Data
The selected financial data presented below should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in Item 8 of this Annual Report on Form 10-K and with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Item 7 of this Annual Report on Form 10-K. The selected consolidated statements of income data of the Company are derived from the Company’s consolidated financial statements.
Five-Year Review
(Amounts in thousands, except certain ratios and per share data)
2021
2020
2019
2018
2017
SUMMARY OF OPERATIONS
Net sales
$
478,925
$
366,926
$
443,588
$
489,180
$
468,764
Gross margin
96,730
53,053
69,940
98,219
108,651
Environmental remediation
—
—
—
3,600
—
ERP impairment
—
—
21,273
—
—
Restructuring expense
3,422
34,222
10,048
—
—
(Gain) on disposal of assets
(5,881)
(19,216)
—
—
—
Litigation settlement costs (reimbursement)
12
—
475
—
(1,175)
Operating income (loss)
31,200
(34,395)
(43,154)
24,505
37,264
Income (loss) before income taxes
31,467
(33,757)
(42,608)
25,126
37,586
Income tax provision (benefit)
8,419
(6,913)
(10,003)
7,460
13,800
Net income (loss)
23,048
(26,844)
(32,605)
17,666
23,786
Net income (loss), as a percent of sales
4.8%
(7.3)%
(7.4)%
3.6%
5.1%
Weighted average diluted shares outstanding
7,468
7,956
7,889
7,919
7,886
Diluted earnings (loss) per common share
$
3.09
$
(3.37)
$
(4.13)
$
2.23
$
3.02
Cash dividends declared per common share
$
0.45
$
0.71
$
0.88
$
0.88
$
0.80
SELECTED DATA AS OF JUNE 30
Total assets
$
296,779
$
237,259
$
254,287
$
284,293
$
270,045
Shareholders’ equity
167,968
175,505
205,427
241,698
230,760
Trade receivables, net
55,986
32,217
38,157
41,253
42,362
Inventories
161,125
70,565
93,659
96,204
99,397
Property, plant and equipment, net
39,783
43,312
79,238
90,725
70,661
Capital expenditures
2,580
3,688
21,346
29,447
13,457
Depreciation expense
5,210
8,370
7,440
7,367
7,936
Working capital (current assets less
current liabilities)
128,789
128,381
118,203
148,705
158,055
Current ratio
2.3 to 1
3.4 to 1
3.5 to 1
4.6 to 1
5.2 to 1
Return on ending shareholders’ equity
13.7%
(15.3)%
(15.9)%
7.3%
10.3%
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