Wed, Apr 23, 9:16 PM (25 days ago)
**Flexsteel Industries, Inc. (FLXS) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $113.972,000, up 6.3% from $107.219,000 in Q1 2024. - **Profit Margins:** Gross margin improved to 22.2% from 21.7%, driven by higher sales and favorable mix. - **Net Loss:** Q1 2025 saw a net loss of $3.742,000, compared to a net income of $1.803,000 in Q1 2024, due to a $14.1 million asset impairment charge. - **Earnings Per Share (EPS):** Basic EPS was -$0.71, down from $0.35 in Q1 2024. **Cash Flow:** - **Operating Activities:** Net cash provided by operating activities was $21.353,000, down from $24.361,000 in Q1 2024. - **Investing Activities:** Net cash provided by investing activities was $6.003,000, a significant improvement from -$4.361,000 in Q1 2024. - **Financing Activities:** Net cash used in financing activities was -$9.483,000, an improvement from -$18.795,000 in Q1 2024. **Trends and Uncertainties:** - **Sales Growth:** Driven by higher sales in home furnishings products through retail stores, offset by decreased e-commerce sales. - **Asset Impairment:** A $14.1 million impairment charge related to a Mexicali, Mexico facility due to trade policy uncertainties. - **Tariff Risks:** Potential tariffs on imports from Vietnam could impact future sales, costs, and profitability. - **Future Operations:** The company is assessing options to mitigate tariff impacts and continues to optimize its distribution and logistics network. **Future Outlook:** - **Growth Initiatives:** The company is investing in growth initiatives and optimizing its distribution network. - **Tariff Uncertainty:** The impact of potential tariffs remains a significant uncertainty. - **Financial Covenants:** The company believes it is in compliance with all financial covenants as of Q1 2025.