Flexsteel Industries, Inc. Announces Quarterly Dividend and Authorizes New Share Repurchase Program

Rhea-AI Summary

Flexsteel Industries (NASDAQ:FLXS) has announced two significant shareholder-focused initiatives. The company declared a quarterly dividend of $0.17 per share, payable January 8, 2025, to shareholders of record as of December 28, 2024, marking its 332nd consecutive quarterly dividend since 1938. Additionally, the Board approved a new $30 million share repurchase program on December 11, 2024. The company still has approximately $2.1 million remaining from its previous buyback program, which expires on January 19, 2025. The timing and extent of share repurchases will be influenced by factors including stock valuation, capital planning, cash priorities, market conditions, and legal requirements.

Positive

• Approval of new $30 million share repurchase program
• Maintained consistent quarterly dividend payments since 1938
• Still has $2.1 million remaining from previous buyback authorization

Negative

• None.

Insights

Financial Analyst

The announcement combines two significant shareholder-friendly actions that signal financial strength. The $0.17 quarterly dividend maintains Flexsteel's impressive 85-year dividend payment streak, demonstrating consistent cash flow generation and commitment to shareholder returns. More notably, the new $30 million share repurchase program represents nearly 10% of the company's market cap, indicating management's confidence in the company's valuation and future prospects. With $2.1 million still remaining from the previous buyback program, the total potential repurchase capacity of $32.1 million provides significant flexibility to opportunistically acquire shares. The conservative approach with multiple conditions for repurchases suggests prudent capital management while maintaining operational flexibility.

Market Research Analyst

This dual announcement carries particular weight in the furniture industry context, where many companies have struggled with inventory management and cash flow challenges. Flexsteel's ability to not only maintain its dividend but also initiate a substantial buyback program differentiates it from peers and suggests robust operational performance. The $30 million authorization size is particularly noteworthy given the company's $313.5 million market cap, representing a significant potential reduction in share count that could boost EPS and stock value. The timing flexibility and multiple execution conditions demonstrate strategic thinking about capital deployment, allowing management to maximize shareholder value through market fluctuations.

DUBUQUE, Iowa--(BUSINESS WIRE)-- Flexsteel Industries, Inc. (NASDAQ:FLXS), announced its Board of Directors declared a quarterly dividend of $0.17 per share, payable January 8, 2025, to shareholders of record as of December 28, 2024.

Flexsteel has paid cash dividends on its common stock each year since 1938. This is the 332^nd consecutive quarterly cash dividend.

Share Repurchase Programs

On December 11, 2024, the Company’s Board of Directors approved a new share repurchase program authorizing the Company to purchase up to an aggregate of $30 million of the Company’s common stock. As of this date, there is approximately $2.1 million of remaining authorization under the previous share repurchase program approved on January 20, 2022, which expires on January 19, 2025. There are no modifications to the previous program. There is no guarantee as to the exact number or value of shares that will be repurchased by the Company, and the Company is not obligated to make any share repurchases in the future. The timing and amount of share repurchases under the previously approved share repurchase program or new $30 million share repurchase program will depend on several factors, including the Company’s stock valuation, ongoing capital planning considerations and cash priorities, general market conditions and applicable legal requirements.

About Flexsteel

Flexsteel Industries, Inc., and Subsidiaries (the “Company”) is one of the largest manufacturers, importers, and marketers of residential 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.

For more information, visit our website at http://www.flexsteel.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241211858086/en/

Michael Ressler, Flexsteel Industries, Inc.

563-585-8116

investors@flexsteel.com

Source: Flexsteel Industries, Inc.

FAQ

What is the amount of Flexsteel's (FLXS) new share repurchase program announced on December 11, 2024?

Flexsteel's Board of Directors approved a new $30 million share repurchase program on December 11, 2024.

When will Flexsteel (FLXS) pay its latest declared quarterly dividend?

Flexsteel will pay its quarterly dividend of $0.17 per share on January 8, 2025, to shareholders of record as of December 28, 2024.

How long has Flexsteel (FLXS) been paying consecutive quarterly dividends?

Flexsteel has paid consecutive quarterly cash dividends since 1938, with the latest being its 332nd consecutive quarterly dividend.

How much authorization remains from Flexsteel's (FLXS) previous share repurchase program?

Approximately $2.1 million remains from Flexsteel's previous share repurchase program, which expires on January 19, 2025.

What factors will determine the timing of Flexsteel's (FLXS) share repurchases?

The timing will depend on stock valuation, capital planning considerations, cash priorities, general market conditions, and applicable legal requirements.