Flexsteel Industries Inc. (NASDAQ:FLXS) Q4 2020 Earnings Conference Call - Final Transcript

Aug 25, 2020 • 09:00 am ET


Flexsteel Industries Inc. (NASDAQ:FLXS) Q4 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Flexsteel Industries Fourth Quarter and Fiscal Year 2020 Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Derek Schmidt, Chief Financial Officer and Chief Operating Officer for Flexsteel Industries. Please go ahead.

Derek P. Schmidt

Thank you, and welcome to today's call to discuss Flexsteel Industries' Fourth Quarter and Fiscal Year 2020 Financial Results. Our earnings release, which we issued after market closed yesterday, Monday, August 24th, is available on the Investor Relations section of our website, www.flexsteel.com, under News & Events.

I am here today with Jerry Dittmer, President and Chief Executive Officer. On today's call, we will provide prepared remarks and then we'll open up the call to your questions.

Before we begin, I would like to remind you that the comments on today's call will include forward-looking statements, which can be identified by the use of the words, such as, estimate, anticipate, expect and similar phrases. Forward-looking statements by their nature involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, those that are described in our most recent annual report on Form 10-K as updated by our subsequent quarterly reports on Form 10-Q and other SEC filings as applicable.

These forward-looking statements speak only as of the date of this conference call and should not be relied upon as predictions of future events. Additionally, we refer to non-GAAP measures, which are intended to supplement but not substitute, for the most directly comparable GAAP measures. The press release available on the website contains the financial and other quantitative information to be discussed today, as well as the reconciliation of GAAP to non-GAAP measures.

And with that, I'll turn the call over to Jerry Dittmer. Jerry?

Jerald K. Dittmer

Good morning, and thank you for joining us today. When we last spoke in April, I think we all had high hope that this pandemic will be behind us by now. Unfortunately, our nation is still in the grip of COVID and its widespread damage to our well-being and economy, and there is no clear end insight. Times of crisis test the resolve of each of us and I am especially grateful to all our Flexsteel co-workers and their commitment and perseverance as we navigate the challenges ahead.

Now, I will take a few minutes to cover the impact of COVID-19 on our industry and business. On a macro level, consumer confidence and unemployment levels, which are important economic determinants of future home furnishings demand have plummeted. Although, the unemployment rate has declined over the past few months, it currently stands around 10%, which is notably higher than the pre-COVID levels which were below 4%. Consumer confidence as measured by the Conference Board has dropped sharply from 130 in January and February to 92.6 in July.