Flexsteel Industries, Inc.

Good morning and welcome to the Flex Steel Industries first quarter and fiscal year 2023 Army Crouchers Call. All participants will be in listen-only mode. If you need assistance, please send a conference message by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchstone phone. To withdraw your question, please press star then two. Please note that this event is being recorded. I'd like to turn the conference over to Mr. Alejandro Huerta, Chief Financial Officer for Flex Steel Industries. Please go ahead, sir.

Thank you, and welcome to today's call to discuss Flex Steel Industries' first quarter fiscal year 2023 financial results. Our earnings release, which we issued after market closed yesterday, Monday, October 24th, is available on the investor relations section of our website at www.flexsteel.com. under News and Events. I am here today with Jerry Dittmer, President and CEO, and Derek Schmidt, Chief Operating Officer. On today's call, we will provide prepared remarks, and then we will open 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 using 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 may 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 the GAAP to non-GAAP measures. And with that, I will turn the call over to Jerry Dittmer. Jerry?

Good morning, and thank you for joining us today. Our performance in the first quarter was solid, given the challenging conditions we faced, including slowing consumer demand competitive pricing pressures attempting to relieve a glut of retail inventory, as well as macroeconomic headwinds driving continuing inflationary pressures and challenges. I am encouraged by the fact that we were well prepared for these challenges and were able to deliver sales for the quarter of $95.7 million, which was above the range of our guidance of $80 to $90 million. While we saw an expected slowdown in sales, we continue to prudently manage our spending and deliver on our cost efficiency initiatives to deliver a operating income of $0.4 million for the quarter or 0.4% of revenue, which is also above our guidance range of negative 3.5% to 0%. Near-term challenges will continue create choppiness in our short-term results. However, we remain committed to delivering long-term profitability. During our fourth quarter call, I went into details on the challenges our industry is facing and will not reiterate those today. The organization is focused on navigating these challenges and delivering on our strategic initiatives that will deliver long-term success. Now I'll turn the call over to Derek to discuss our strategic initiatives and operational priorities before Alejandro takes you through further details of our financial results. I'll be back at the end of the call with some closing comments on what we see ahead.