Okay, we're going to go ahead and get started with the next presentation. First off, thank you everyone for joining us today here in person in Chicago, as well as those who are joining us virtually via the webcast. My name is Joe Noyons. I'm with Three Part Advisors. Up next, we have Flexsteel. Flexsteel is traded on the Nasdaq under the symbol FLXS. Many of you are probably familiar with their products, but may not be as familiar with the equity story today. So excited for you to learn more. Presenting on behalf of the company today is going to be Derek Schmidt, the CEO, and Michael Ressler, the Chief Financial Officer. Thank you. All right. Good morning, everyone. Appreciate your interest in learning more about Flexsteel. We'll try to keep the presentation to about 20 minutes and then certainly leave ample time for all of your questions. The obligatory slide on forward-looking information, we will talk about some perspectives here. So what we're going to cover today, I'm going to give you an overview of our company strategy, specifically talk about what we believe our competitive advantage and our differentiation in the market is, what's going to continue to drive our growth going forward. Then Mike is going to come up and talk to you about our investment thesis and certainly financial outlook. So I'm going to start with the investment thesis here, and it's five-fold. One, we're going to talk about the operating model that we built, why we've continued to outperform the market, gain share, and what gives us our confidence to continue to do that. Mike will show you that we've got 11 consecutive quarters of year-over-year growth in a fairly challenging, difficult furniture industry environment over the last couple of years. Certainly, the bullish case on the medium to long term is furniture is heavily tied to housing turnover, consumer sentiment. For those astute investors in the room, I'm sure you're all aware that housing industry has been challenged. Consumer sentiment is certainly at decades lows. There is kind of a bullish case here, certainly when those dynamics turn around, and we believe we're well positioned to continue to gain share. Number two, we do believe we have a differentiated operating model, and we'll talk about it starts with deep consumer research, understanding targeted consumers, who they are, how they shop, what their problems are, and then taking that insight and driving relevant innovation to meet their problems better than anybody else. Then executing the operating model flawlessly to create value both for consumers and certainly our retailers. Third, Mike will talk to you about where we're at today, where we've been. There's a pretty compelling story in terms of the margin expansion, and we have confidence we're doing the right things to continue that margin expansion here in the mid and long term. Fourth, this is a model that generates a lot of cash. It's not a capital-intensive industry. We spend less than 1% of our revenues on CapEx. We've got ample capacity to support future growth, and we've been very disciplined in terms of working capital management with opportunities to continue to improve going forward. Lastly, business generates a lot of cash, and we're deploying it responsibly. Mike will talk about our capital allocation priorities, but we do have a demonstrated history that if we can't invest it with a return above our cost capital, we will responsibly return that capital to shareholders. So that's the investment story. A little bit of a visual. You see here 11 consecutive quarters of growth in the green. A little bit of slowdown here recently, largely due to macroeconomic factors. In March, when we went to war with Iraq, we saw retail traffic and consumer shopping significantly dip following that, and it's been sluggish since. I would attribute the slowdown to macro factors, still feel really confident about our internal strategy and prospects going forward. You see the margin story in the middle, where we came from, where we're at, 7.5% operating margin today. We believe there's still room for expansion. Ultimately, the results we've delivered have translated into shareholder value. So you see the stock returns over the last year, last three years. We're certainly pleased with the stock's performance, but we believe we've got a lot of value to create for shareholders going forward. In terms of our company, you see the financial numbers up here. I think attractive financial dynamics. Even though we're relatively small at a $500 million of sales, we are one of the top 10 manufacturers. We do business with a very broad set of distribution, over 2,700 storefronts, primarily sell through the U.S., and our geographical breadth largely resembles the U.S. population. Mike will talk a little bit about, we do have a hybrid sourcing model. So we manufacture our own products, and we source our products. We've learned from the challenges and tribulations through COVID, and we've built a much more agile, resilient operating model, I think, to navigate future disruptions if they were to occur. In terms of what our business looks like, you can look at it from three dimensions, our products, our sales distribution, and consumers we target. From a product perspective, you see that 80%+ of what we sell is squarely in the living room. It's been our bread and butter. It's been our core. There's an opportunity both to continue to innovate and grow. I think our core living room collection, more importantly, we've got opportunities where we're under-penetrated and feel like we can gain share. So a couple areas here, this health and wellness, you'll see prospectively, we're estimating to be about 12% of our revenue. Three years back, it was zero. So a lot of our effort around strategy and how we differentiate is focused on this health and wellness. You'll also see bedroom and dining. That's what we call case goods. It's an area where we have a right to win. It's a challenge category, but we're making strides. We believe it has long-term potential and strategic relevance to us. There's a couple other categories there to the right-hand side. Less about really internal organic growth and potentially represents some opportunities for us to think about future acquisitions. The point here is, while we've got a concentrated position in the home, there are opportunities for us to expand, certainly our wallet share of where people spend money in their homes. And we've got the distribution and the retail relationships to leverage in order to position ourselves in those categories. As you start to think about how we go to market, and how we sell our products, we do not sell direct to consumers. We do have our own sites, but that's more to present our brand and build brand awareness. About 95% of our sales go through what we call the independent retail channel. Depending on your geography, if you wanted examples, I can share them with you later. But this has been our core. Opportunity for us here is, this is an area where there's a lot of players, but again, there's consolidation happening. And where we've been successful for the last several years and we've got lots of opportunities is there's big regional players here that understand how the landscape is changing. They started with brick and mortar, but they're evolving their digital capabilities. They're engaging consumers. They're building out, certainly, their e-commerce capabilities, and they're formidable players. And we're building a differentiated value proposition for how we service these large regionals, and we're gaining share, as a result. So they're growing, and we're growing even faster. There's also an opportunity for us to broaden, certainly, our distribution footprint beyond independent retailer. We do have relationships with Amazon, Wayfair, Costco, Macy's. Again, this is a channel that there's growth to be had. It's important for our brand to be represented to build broader consumer brand awareness. But we're after long-term sustainable profit growth. As we look at this channel, we're balancing certainly how fast we grow and still maintain the profitability expectations that we want for the business going forward. As you start to think about our positioning, we are not a low-cost brand, but we're also not a high-end, designer-driven brand. Where we compete is really just a sliver above the middle of the market. So premium branded, we're known for our superior quality, comfort, durability, and increasingly, we're bringing more innovation around functionality and helping consumers solve relevant problems. The way we go to market, primarily with our Flexsteel brand, but we also have and will continue to develop, I think, relevant sub-brands that are tuned and tailored to meet specific consumer needs. For example, up there you'll see a brand called Zecliner. That is specifically a sleep solution targeted towards the 7% of U.S. adults that don't sleep regularly in their bed at night. You'll see a brand up there called Zen. That is around restorative. So think about individuals who maybe they're fitness geeks. They run marathons. They want a really attractive piece of furniture in their house, but they want something that helps them restore themselves. So think about cooling, heat, massage. We'll talk about, hear a story around how we're identifying these unmet, underserved consumer needs, and how we're innovating and then building sub-brands around these potential solutions. So that's where we're positioned and how we go to market. A little bit about our supply chain. We have this hybrid supply chain. We source about 2/3 of our product globally in Asia, primarily Vietnam. We have no exposure to China. At the same time, the other third of our business, we actually manufacture through our own factories in Mexico. What we learned through COVID is, have as much agility and resilience as possible. So having a diversified set of suppliers in Asia, combined with our own factories in Mexico, gives us at least that ability to maneuver and optimize our supply chain, if there's future disruption. Then we have warehouses and distribution centers across the U.S. to support physical distribution of our product to all geographies. The executive team, what I'll tell you is, stable, well tenured, good mix of experience, both within furniture as well as outside furniture. So this is a team that's highly results-oriented, acts with urgency, and really proud of the team we put together and what we've been able to accomplish. When you think about how we operate, our values, you see them up here, there's six of them. You'll see consumer-driven. You'll see innovation, results-driven, agility. These things, again, guide how we operate as a company and are the foundation of, I think, our current success and our future success. We don't talk a lot about all the good things we do, but I think it's important, certainly as investors, for you to understand that Flexsteel is committed to doing business responsibly, whether that's using sustainable materials, recycling, contributing back to our community, certainly keeping our employees safe. There's a lot of things that we do. It's important that we deliver results, but we do it the right way. Okay? Next, I'm going to talk a little bit about our operating model, why we believe it's working, why we believe it's differentiated. As I alluded to earlier, it starts with consumer insights. Not necessarily a breakthrough idea, but it is, I think, differentiated in terms of how we're doing it relative to other players in the industry. I gave you the example earlier around Zecliner, and I'll highlight it here earlier. That started with consumer insights. We figured out 7% of U.S. adults weren't sleeping in their bed at night. That was a consumer problem without a solution. Then we took that insight, and then you move over to the top right-hand box, and then we innovated around it. We tried to solve that problem in innovative, unique ways. Then once we had a great solution, then we talked about how do we execute? And, I believe we're advantaged in our execution in terms of speed, quality, and the way we service customers. It's really this blend of understanding the consumer, innovating around their problems, and then driving seamless, consistent execution that's value added. Ultimately, none of those three things happen without the fourth box, which is people. So the one thing that keeps me up at night, I constantly think about talent and culture, and it's where I spend a lot of my time, and I believe that that green box is key to our current success and future success. So our differentiation. I mentioned it earlier, I'll reinforce it. Again, the brand promise is superior quality, comfort, and durability. Right? That's backed by our iconic Blue Steel Spring. It's how we tell the story of how we build furniture differently, why it lasts, why we have a limited lifetime warranty behind it. And increasingly, on top of that, we're bringing value-added differentiation to consumers. So that's how we differentiate ourselves in the market that is very crowded, where furniture seems like it all looks the same. We've positioned ourselves in a different way. We've talked about Zecliner a little bit, but I'll just highlight again, it started with consumer insights. Then it went to innovation, and then we built a really powerful execution model around it, around marketing, in-store point of sale, training with our retail sales associates. Again, this is largely the driver of how health and wellness has gone from 0% of our revenue to 12% here in this coming year. The exciting thing is we're going to branch out in health and wellness beyond this. I mentioned Zen, a product that is around recovery. We have other products around other targeted areas of health and wellness, and so we see a huge opportunity to continue to expand in this high-demand, evolving space. Our strategy, again, you can look at this in three dimensions. From a product perspective, hey, we're going to continue to go after in-stock source seating and made-to-order. Made-to-order is if you walk into a store and you want to pick out your own fabric and your own leg finish, again, we have that business. The in-stock is, hey, you walk in the store, you see it, and you want it delivered to your home in two weeks. It's already stocked either in our warehouse or a retailer's warehouse. That is the core of Flexsteel, our business. We're going to continue to innovate and grow that. If you move over to the right-hand side, there are categories, though, we've talked about where they're either new or we're under-indexed, that being health and wellness and case goods. So that's how we target our growth from a product perspective. Sales distribution, we've talked about this. Again, big presence with independent retailers. Those 15, 20 big regional accounts, we call them strategic accounts, have been a huge driver of our growth and will continue to be. At the same time, we have to be judicious around how we grow with national accounts, but do so in a manner where we can sustain our profitability and our cash generation. Lastly, consumers. When you think about Flexsteel, our stereotypical consumer is probably someone 50, 55, 60+. We have an opportunity here, I think, to build greater brand awareness with younger generations. An example of how we're doing that is that Zen product. Again, someone who runs marathons, who works out a lot. There's an attractive product with recovery kind of features. So that's our portfolio of growth initiatives, what we're working on, why we've, I think, been able to gain share here in a challenging market, and what gives me confidence that we can continue to do that. Mike's going to take you again, walk you through the investment thesis. Mike? Thanks, Derek. This really goes back to what Derek talked about in terms of our differentiated operating model, starting with consumer insights, driving innovation, and then executing at a high level. As he mentioned, we've been able to gain share and grow pretty consistently in a market that's been pretty challenged. Meanwhile, we've been able to meaningfully improve the structural profitability of the business. There's some key levers that I'll talk about, but we believe that those levers will continue to enable us to maintain strong margin, and there's even upside potential as we execute our growth strategies moving forward here. Again, the business, it generates a lot of cash, relatively low capital requirements, and the good thing about that is it enables us to look for opportunities to reinvest back in the business and/or we'll return capital to shareholders in a responsible way, which we've demonstrated, and we'll talk about that as well. This chart gives us confidence that our operating models are working, our growth strategies are working. If you look at the chart on the left there, that's just U.S. retail furniture sales growth over the past several years. You can see the market's been pretty challenged. Despite that, we've been able to deliver, I think this is our 11th consecutive quarter of growth. It gives us confidence that what we're doing is working. We're in a position to continue to gain share, and that at some point in time, when we do see a turnaround in the market, we're well-positioned to continue to outperform kind of just the overall market growth rate. Derek talked a little bit about the long-term outlook. Near-term, believe the industry's going to remain challenged. We're still dealing with pretty low consumer sentiment levels. Consumers are dealing with elevated fuel and energy prices driven by some of the conflicts in the Middle East. There's still quite a bit of certainty around what's going to happen with the tariff environment, etc. Long term, we're bullish on the industry, and it goes back to this pent-up housing demand. The housing market's been muted pretty much since the pandemic, and we believe that at some point in time, that demand's going to get unleashed, and we're well positioned to take advantage of it. The other thing, as we think about the wealth shift to younger consumers, and the need that they're going to have for furniture, that there's going to be a catalyst for strong demand for furniture driven by younger consumers well into the future. Derek talked about what we've been able to structurally do in terms of improving profitability. You can look back, 2022, we were making about 1%. Over the last several years, we've improved our operating margin, and actually just reported for fiscal year 2026, adjusted operating margin of 7.5%. There's really kind of been three main levers that have driven that. Number one, sales growth leverage. We've been very thoughtful around not adding structural costs into the business. As we get growth leverage, the profit drops to the bottom line. I would say one of the other larger levers is just this focus on product portfolio optimization. If you look at our sales mix for the current year, over 50% of our sales have come from products that we've launched in the last three years. That formula of identifying where lower-performing products are, targeting new products with innovation that offer better features and things for consumers that are willing to pay, and bringing those products out at better profitability profiles has worked, and we believe it's a lever that we're going to continue to be able to lean on to expand margins in the future. Lastly, Derek talked about the diversified supply chain we have. We truly believe our supply chain is a competitive advantage. We've got strong operations leaders across sourcing, manufacturing, distribution, and logistics. Over the last several years, we've been able to drive meaningful productivity savings, which has more than offset inflation. We believe there's still plenty of upside there to help us drive operating margin expansion. Obviously, when you grow sales and you improve profitability, it translates into nice earnings momentum. We just delivered $4.94 adjusted diluted earnings per share this year and believe there's plenty of upside potential as we execute our strategy and improve our profitability. Talked a little bit about the capital requirements of the business. CapEx runs at or below 1% of sales. We typically invest, and I'm constantly challenging the team on what we can do to invest to drive productivity within the supply chain. It's really targeted towards where there's a high ROI and/or just kind of your standard maintenance activities. At this point in time, we have significant amount, or I won't say significant, we have ample capacity within our supply chain to support our growth. There's really no significant need for incremental capital investment at this time to support our growth. Then obviously, from a working capital perspective, we've been able to manage working capital investment at or below kind of 20% of sales. We believe that we'll be able to continue to drive sales growth without significant incremental investments in that area as well and potentially even drive that down. I mentioned the business generates a lot of cash. You can see over the last couple of years, we've generated over $40 million in free cash flow. You can see from a balance sheet perspective, we built cash up to over $40 million in the prior year. This year, we ended the year with over $16 million in cash after completing a $60-some million share repurchase of a major shareholder. We feel good that we're going to continue to be able to generate a lot of cash, and we'll look for opportunities to invest back in the business, but we're also going to be thoughtful and disciplined around returning excess capital to shareholders when it makes sense. I touched on this, but here you can see from 2020 through the current year, we've returned, I think, over $160 million of capital to shareholders through repurchases and dividends. From a priorities perspective, number one, we want to maintain a strong balance sheet. We've been in business for a long time, and we understand the cyclical nature of the business. We will prioritize a strong balance sheet, but we'll also continue to fund our organic growth initiatives, look for opportunities to invest in the business beyond that. If there's not an attractive return or those opportunities don't align with our strategy, we'll return capital to shareholders based on the capital requirements of the business. Then real quick, from an outlook perspective, for Q1, I didn't provide the Q1 update here, but just from short-term perspective, we guided 1%-4% sales growth this next quarter and operating margin in the 6.5%-7% range. There's some near-term challenges. We're dealing with some elevated energy inflation, higher ocean freight rates, other inflationary pressures. But longer term, we aspire to grow the business to $750 million with acquisitions. Believe that we'll be able to expand operating margin to +8%, and then that'll translate into very healthy cash generation and earnings per share. Okay. With that, open it up to questions. What questions can we answer? Yes, sir. The current status of tariffs from Vietnam. The question was current status of tariffs from Vietnam. The vast majority of our product, which is seating products, are subject to Section 232 tariffs, and they are subject to a 25% tariffs currently. They are scheduled to go up from 25% to 30%, effective January 1st. If it is non-seating products such as wood products like bedroom, dining, et c, those products are subject to the recent tariff that went into effect, which was, I think, a 12.5% rate for the Vietnam country-specific tariff. That is refunds from previous tariffs, correct? Correct. That is all done? Yeah. The question was, did you receive refunds from previous tariffs? This quarter, we did receive refunds from previously paid IEEPA tariffs, and we received the vast majority of those, so do not expect a significant amount of incremental refunds. Thank you. Yes, miss. Yes. On the unique supply chain, can you talk about what is the advantage of maintaining manufacturing capacity? How do you balance manufacturing yourselves versus sourcing, and are there different margin profiles for those? Yeah. The question was essentially, what are the advantages of the hybrid supply chain, and why should we continue that? What I'd tell you is, there's two reasons that we have a hybrid. One is because there are different operating models. Largely what comes from Asia is high volume, low variety. You think about a lot of the frames that we have might only have one or two leather options. The vast majority of what is made in Mexico, and oh, by the way, retailers either store those products in their warehouse, or we store them in our warehouse, and we can deliver those within two weeks. That's from Asia. That's from Asia. The vast majority of what is made in Mexico, we call made to order. Again, it's this business of, if you wanted to walk into a retailer and pick out one of 800 fabrics, and different fabric for your pillows, and pick between three or four or five different finish types for the legs, that's made to order. You cannot do a custom made order business from Asia with acceptable lead times. Out of Mexico, we basically promise three-four-week lead times on that business. Now, the other advantage of having a hybrid is it gives us optionality. In the last several years, we've actually engineered a lot of our products so they can be made in both places, both Asia and Mexico. In the event that, again, there's a supply chain disruption, and one of those sources is no longer available, we have the flexibility to immediately shift production. Prior to COVID, what was made in Mexico was unique, and what was made in Asia was unique. Now, the vast majority of what we bring to market, wherever possible, we're dual sourcing. It gives us a stronger supply chain that's more agile and more resilient. That's the strategic reason that we continue to maintain a hybrid supply chain. Yes, sir. I like to view consumer discretionary sort of stocks through the lens of consumer free cash flow. It seems sort of clear that you guys are positioning yourselves more so in a premium sort of brand positioning, and that's great for right now when consumer free cash flow is suffering because of things you mentioned, higher gas prices, right? Higher interest rates. Lots of bad things happening to the consumer. But your core consumer is not as impacted by that because they tend to earn a little bit more. Yeah. Right? You also did mention during the presentation that there might be a sort of cyclical turnaround for the furniture industry, and you're looking forward to something like that space for a little bit. But you and I both know that those lower-end products are the ones that experience the highest beta and the best rewards during times when we have that cyclical turnaround. You also mentioned a couple of potential acquisitions that would fuel a greater expansion of the TAM. Are you looking to expand into that more low-tier brand- Yep. ... positioning stuff to take advantage of that higher operating leverage? The question was around really consumer positioning, discretionary spend, and if Flexsteel has any plans on expanding beyond our current targeted consumer. I would tell you, we have no right to win at the lower end. It is a space that continues to consolidate, and so the players that compete there have advantage economies of scale and scope. Again, we could go head to head against Ashley, but we'll never win. So you're right, they may disproportionately benefit, certainly from a housing turnover. There's still a lot of consumers in the middle, right, that they may not be as strained as lower-income consumers, but right now they don't have the confidence of spending. They don't necessarily have a triggering event. I'll give you example of a young family, two kids, and they need a bigger house desperately, but right now, given where interest rates are and home, they can't afford it. At some point, though, whether interest rates go down or whether their income increases, they're going to go buy a bigger house, and the furniture that they have doesn't fit that new space. That will create furniture demand, I think, for consumers that value the quality, durability, comfort, and the functionality that Flexsteel brings. I think we will still significantly benefit certainly from a housing turn-arounder, maybe not as proportionate as certainly the lower end. Okay. Thank you. Okay. Thank you. Other questions? Yes, sir. Were your health and wellness margins significantly above the corporate average? Yeah. So the question was whether our health and wellness margins are significantly above the corporate average. I would reframe the question differently. I would say wherever we have meaningful innovation, right, that solves a specific consumer problem better than anybody else, we typically have higher margins. If you start to think about where we're innovating, certainly health and wellness is an area. So yeah, the margin profile certainly can look more attractive again where we have that differentiated innovation. But again, we've got the same opportunity in other areas of the portfolio beyond health and wellness. Other questions? All right. Again, we appreciate the interest in Flexsteel, and certainly, if you want to have additional dialogue, feel free to reach out to us. Okay. Thank you.