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• Overall Financial Performance

  • Total Q3 FY2026 revenue was $108.9 million, a 3.2% ($3.6 million) decline from the prior year period.
  • Three out of four operating segments delivered YoY revenue growth.
  • Gross profit decreased $1.2 million (3.1%) YoY; operating income decreased 34% ($2.7 million) to $5.3 million YoY.
  • The company reported a net loss of $1.1 million ($0.34 loss per share), compared to prior year period net income of $5.4 million ($1.24 diluted EPS); the prior year results included one-time gains totaling $2.8 million.
  • Adjusted EBITDA decreased 29.5% ($3.9 million) to $9.3 million YoY.

• Liquidity and Capital Allocation

  • As of June 30, 2026, total cash availability was $39.8 million, consisting of $10.9 million in cash on hand and $28.9 million in available borrowing under existing lines of credit.
  • Total assets were $385.8 million and total stockholders' equity was $91.9 million as of quarter-end.
  • $9.5 million remains available under the company's $10 million share repurchase program.

• Portfolio Resilience

  • Management frames the quarter's results as demonstrating the resilience of the company's diversified operating portfolio.
  • While retail flooring faces ongoing challenges, the retail entertainment and steel manufacturing segments delivered solid revenue growth and improved profitability.

No formal forward-looking guidance was provided or revised by management during this earnings call.

1. Retail Entertainment: Revenue of $21.4 million, up $2.4 million (12.7%) year-over-year (YoY). Operating income increased 33.8% and adjusted EBITDA increased 28.9% YoY. This segment contributes 19.7% of total company revenue. Growth was driven by strong broad-based consumer demand across all product lines.
2. Retail Flooring: Revenue of $21.4 million, down $9 million (29.4%) YoY. This segment contributes 19.7% of total company revenue. The decline was caused by weak demand from headwinds in new home construction and home refurbishment markets, which lowered retail and contractor sales.
3. Flooring Manufacturing: Revenue of $31.8 million, up $800,000 (2.8%) YoY; net revenue after intercompany eliminations increased $1.1 million YoY. This segment contributes 29.2% of total company revenue.
4. Steel Manufacturing: Revenue of $36.3 million, up $2.5 million (7.3%) YoY; net revenue after intercompany eliminations increased $1.8 million YoY. Operating income increased 68.9% and adjusted EBITDA increased 16.3% YoY. This segment contributes 33.3% of total company revenue. Growth was driven by higher sales volumes for fabricated, hardened wear, tool, and dye businesses, partially offset by lower revenue in metal forming, assembly, and finishing solutions.

• Persistent weakness in new home construction and home refurbishment markets continues to create strong headwinds and underperformance for the company's retail flooring segment, weighing on overall consolidated operating results.
• Forward-looking statements made during the call are subject to material risk of differing from actual results, due to a range of factors disclosed in the company's SEC filings (Forms 10-K and 10-Q).

No investor or analyst questions were submitted during the Q&A session. Management delivered a closing remark and concluded the call.