−Removed: 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.
−Removed: 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.
+Added: Flexsteel Industries, Inc., and Subsidiaries (the “Company”) is one of the largest manufacturers, importers, and marketers of residential furniture products in the United States.
+Added: 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.
−Removed: The Company distributes its products throughout the United States through its e-commerce channel and dealer network.
+Added: The Company distributes its products throughout the United States through its e-commerce channel and direct sales force.
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 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 the residential market.
+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.
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)
−Removed: In fiscal 2020, the Company substantially completed its exit from the Commercial Office and custom design Hospitality product lines which served contract markets.
−Removed: 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, 2021, the Company operated manufacturing facilities located in Georgia and Juarez, Mexico.
−Removed: 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.
+Added: During the fiscal year ended June 30, 2022, the Company operated manufacturing facilities located in Dublin, Georgia, and Juarez, Mexico.
+Added: These ongoing 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.
The Company identifies and eliminates manufacturing inefficiencies and adjusts manufacturing schedules on a daily basis to meet customer requirements.
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The furniture industry is highly competitive and includes a large number of U.S.
−Removed: and foreign manufacturers and distributors, none of which dominates the market.
+Added: and foreign manufacturers and distributors, none of which dominate the market.
The Company competes in markets with a large number of relatively small manufacturers;
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On June 30, 2022, the Company had approximately 33 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 three manufacturing facilities in Juarez, Mexico utilizing contracted labor.
+Added: The Company leases and operates three manufacturing facilities in Juarez, Mexico and had approximately 1,200 employees located in Mexico on June 30, 2022.
The three Juarez facilities totaled 553,000 square feet.
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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.
−Removed: While the Company purchases these materials from numerous outside suppliers, both U.S.
−Removed: 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 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.
−Removed: As of June 30, 2021, the availability of polyurethane foam was still constrained.
+Added: The Company purchases these materials from numerous outside suppliers, both U.S.
+Added: and foreign, and is not dependent upon any single source of supply.
+Added: The costs of certain raw materials fluctuate, but all continue to be readily available within supplier lead-times however, we could experience supply-chain disruptions at any time, which could impact the availability of materials
Industry Factors
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The Company owns the United States improvement patents to its Flexsteel guaranteed-for-life Blue Steel Spring – the all-riveted, high-carbon, steel-banded seating platform that gives upholstered and leather furniture the strength and comfort to last a lifetime, as well as patents on convertible beds.
−Removed: The Company has patents and owns certain trademarks in connection with its furniture products which are due to expire on dates ranging from 2021-2036.
+Added: The Company has patents and owns certain trademarks in connection with its furniture.
It is not common in the furniture industry to obtain a patent for a furniture design.
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New models and designs of furniture, as well as new fabrics, are introduced continuously.
−Removed: The Company had 665 employees as of June 30, 2021, including 8 employees who are covered by collective bargaining agreements.
+Added: The Company had approximately 1,800 employees on June 30, 2022, including 7 employees who are covered by collective bargaining agreements.
Management believes it has good relations with employees.
−Removed: In response to the COVID-19 pandemic, we have implemented various measures to protect the physical health, mental health, and productivity of our workforce.
−Removed: These measures include, but are not limited to, enhanced cleaning and sanitizing within our facilities, and face covering requirements.
−Removed: 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.