Flexsteel Industries, Inc.

Good morning and welcome to the Flex Steel Industries third quarter fiscal year 2023 earnings conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist 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 touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the call to Alejandro Huerta, Chief Financial Officer for Flex Steel Industries. Please go ahead.

Thank you, and welcome to today's call to discuss Flex Steel Industries' third quarter fiscal year 2023 financial results. Our earnings release, which we issued after market closed yesterday, Monday, May 1st, 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. I am pleased with our performance in the third quarter despite the challenging macroeconomic environment. We remained on the offense during the third quarter, delivering innovative new products and investing in our strategic initiatives. This drove sales for the quarter of $99.1 million, which was in the upper half of our guidance range. Our growth initiatives have begun to add meaningful revenue and partially offset the challenges posed by slowing consumer demand. These initiatives, along with a continued focus on controlling operating costs, enabled us to deliver operating income of $2.1 million, or 2.1%, which was in the upper range of our guidance. Along with our growth initiatives, we have committed to driving working capital efficiency and continued dedication to reducing our debt, further strengthening our balance sheet. During the third quarter, we made strides in both areas as we maintained our working capital balances but reduced our outstanding debt by an additional $1.4 million. We've paid down debt by $20 million since the end of the fiscal 2022. We continue to see near-term challenges due to a multiple macroeconomic headwind. However, We do not plan to detour from our commitment to deliver long-term profitable growth. With that in mind, we will continue to invest pragmatically in growth initiatives to drive sales and margin expansion. Our organization is focused on navigating the challenges in the current environment while positioning ourselves to deliver on our long-term strategic initiatives. I'll now turn the call over to Derek to discuss our strategic initiative and operational priorities before Alejandro takes you through the 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.