The Dixie Group Reports Third Quarter 2016 Results
DALTON, Ga., Oct. 25, 2016 (GLOBE NEWSWIRE) -- The Dixie Group, Inc. (NASDAQ:DXYN) today reported financial results for the quarter ended September 24, 2016. The Company’s third quarter 2016 net sales were $100,297,000, 7.9% below third quarter of 2015 sales of $108,908,000. Income from continuing operations was $573,000, or $0.04 per fully diluted share, for the third quarter of 2016 as ...
Commenting on the results,
Despite the drop in sales compared to the year ago period, our operating margins improved slightly to 25.8%. We continue to closely monitor our production schedules in an effort to minimize cost. We have lower quality costs, medical expenses and improved operating efficiencies versus the same period a year ago, however, these gains have been substantially offset by the unabsorbed fixed cost due to the lower sales volume. We continue to reduce expenses to increase our efficiency and respond to the lower sales volumes. We have reduced our headcount by 75 associates versus this same time period last year. Despite
For the third quarter we had no restructuring expense, as that is now complete, as compared to an expense of
From a marketing perspective, this period has been busy with Masland Contract introducing the Calibre High Performance line of LVT Flooring. We believe this offering of Wood and Abstract looks for use in various markets will further improve our service to our customers. The market targets include Corporate,
Atlas Carpet Mills has introduced Metáfora, a gentle nod to the 1970's that will play well in any decor. Constructed on Atlas’ unique Interloop technology utilizing 100% Antron Lumena type 6.6 nylon, this collection of 13 patterns in 17 colorways is available as broadloom, carpet tile and area rug.
As we move into the fourth quarter of 2016, we continue our emphasis on providing high quality, unique and beautiful products to our customers,” Frierson concluded.
A listen-only
This press release contains forward-looking statements. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management and the Company at the time of such statements and are not guarantees of performance. Forward-looking statements are subject to risk factors and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Such factors include the levels of demand for the products produced by the Company. Other factors that could affect the Company's results include, but are not limited to, raw material and transportation costs related to petroleum prices, the cost and availability of capital, integration of acquisitions and general economic and competitive conditions related to the Company's business. Issues related to the availability and price of energy may adversely affect the Company's operations. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the
Consolidated Condensed Statements of Operations | |||||||||||||||
(unaudited; in thousands, except earnings per share) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
$ | 100,297 | $ | 108,908 | $ | 294,847 | $ | 314,721 | ||||||||
Cost of sales | 74,466 | 81,643 | 221,268 | 234,811 | |||||||||||
GROSS PROFIT | 25,831 | 27,265 | 73,579 | 79,910 | |||||||||||
Selling and administrative expenses | 23,774 | 25,267 | 71,760 | 76,215 | |||||||||||
Other operating expense, net | 141 | 131 | 525 | 684 | |||||||||||
Facility consolidation expenses | — | 614 | 1,816 | 2,264 | |||||||||||
OPERATING INCOME (LOSS) | 1,916 | 1,253 | (522 | ) | 747 | ||||||||||
Interest expense | 1,312 | 1,203 | 3,969 | 3,603 | |||||||||||
Other expense, net | 4 | 4 | 15 | 45 | |||||||||||
Income (loss) from continuing operations before taxes | 600 | 46 | (4,506 | ) | (2,901 | ) | |||||||||
Income tax provision (benefit) | 27 | (38 | ) | (1,937 | ) | (1,121 | ) | ||||||||
Income (loss) from continuing operations | 573 | 84 | (2,569 | ) | (1,780 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | (39 | ) | (18 | ) | 13 | (118 | ) | ||||||||
NET INCOME (LOSS) | $ | 534 | $ | 66 | $ | (2,556 | ) | $ | (1,898 | ) | |||||
BASIC EARNINGS (LOSS) PER SHARE: | |||||||||||||||
Continuing operations | 0.04 | 0.01 | (0.16 | ) | (0.11 | ) | |||||||||
Discontinued operations | — | — | — | (0.01 | ) | ||||||||||
Net income (loss) | 0.04 | 0.01 | (0.16 | ) | (0.12 | ) | |||||||||
DILUTED EARNINGS (LOSS) PER SHARE: | |||||||||||||||
Continuing operations | 0.04 | 0.01 | (0.16 | ) | (0.11 | ) | |||||||||
Discontinued operations | — | — | — | (0.01 | ) | ||||||||||
Net income (loss) | 0.04 | 0.01 | (0.16 | ) | (0.12 | ) | |||||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 15,648 | 15,573 | 15,631 | 15,518 | |||||||||||
Diluted | 15,744 | 15,666 | 15,631 | 15,518 | |||||||||||
Consolidated Condensed Balance Sheets | ||||||||
(in thousands) | ||||||||
2016 | 2015 | |||||||
ASSETS | (Unaudited) | |||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 88 | $ | 281 | ||||
Receivables, net | 47,568 | 50,806 | ||||||
Inventories, net | 107,965 | 115,146 | ||||||
Other | 4,820 | 3,362 | ||||||
Total Current Assets | 160,441 | 169,595 | ||||||
Property, Plant and Equipment, Net | 94,690 | 101,146 | ||||||
6,232 | 6,461 | |||||||
Other Assets | 23,935 | 21,016 | ||||||
TOTAL ASSETS | $ | 285,298 | $ | 298,218 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 59,653 | $ | 60,821 | ||||
Current portion of long-term debt | 9,230 | 10,142 | ||||||
Total Current Liabilities | 68,883 | 70,963 | ||||||
Long-Term Debt | 106,395 | 115,907 | ||||||
Other Liabilities | 22,173 | 20,544 | ||||||
Stockholders' Equity | 87,847 | 90,804 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 285,298 | $ | 298,218 | ||||
Use of Non-GAAP Financial Information:
(in thousands)
The Company believes that non-GAAP performance measures, which management uses in evaluating the Company's business, may provide users of the Company's financial information with additional meaningful bases for comparing the Company's current results and results in a prior period, as these measures reflect factors that are unique to one period relative to the comparable period. However, the non-GAAP performance measures should be viewed in addition to, not as an alternative for, the Company's reported results under accounting principles generally accepted in
Non-GAAP Summary | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
Non-GAAP Income (Loss) From Continuing Operations | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net Income (Loss) as Reported | $ | 534 | $ | 66 | $ | (2,556 | ) | $ | (1,898 | ) | |||||
Income (Loss) from Discontinued Operations, Net of Tax | (39 | ) | (18 | ) | 13 | (118 | ) | ||||||||
Income (Loss) from Continuing Operations | 573 | 84 | (2,569 | ) | (1,780 | ) | |||||||||
Facility Consolidation Expense | — | 614 | 1,816 | 2,264 | |||||||||||
Tax Effect of Above | — | (233 | ) | (690 | ) | (860 | ) | ||||||||
Non-GAAP Adjusted Income (Loss) From Continuing Operations (Note 1) | $ | 573 | $ | 465 | $ | (1,443 | ) | $ | (376 | ) | |||||
Adjusted Diluted Earnings (Loss) Per Share from Continuing Operations | $ | 0.04 | $ | 0.03 | $ | (0.09 | ) | $ | (0.02 | ) | |||||
Weighted-Average Diluted Shares Outstanding | 15,744 | 15,666 | 15,631 | 15,518 | |||||||||||
The Company defines Adjusted Income (Loss) from Continuing Operations as Net Income (Loss) less loss from discontinued operations, net of tax, plus manufacturing integration expenses of new or expanded operations, plus facility consolidation and severance expenses, plus amortization of acquisition inventory step-up, plus direct acquisition expenses, less gain on purchase of business, plus impairment of assets, plus impairment of goodwill, plus one-time items so defined. (Note 1) |
Facility Consolidation Plan Summary | ||||||||||||||||||||
FY2015 | Q1 2016 | Q2 2016 | Q3 2016 | YTD 2016 | ||||||||||||||||
Warehousing, Distribution & Manufacturing Consolidation Plan | $ | 2,016 | $ | 1,342 | $ | 398 | $ | — | $ | 1,740 | ||||||||||
Atlas Integration Plan | 202 | — | — | — | — | |||||||||||||||
Corporate Office Consolidation Plan | 728 | 71 | 5 | — | 76 | |||||||||||||||
Total Facility Consolidation Expense | $ | 2,946 | $ | 1,413 | $ | 403 | $ | — | $ | 1,816 | ||||||||||
Further non-GAAP reconciliation data are available at www.thedixiegroup.com under the Investor Relations section.
CONTACT:Source:Jon Faulkner Chief Financial Officer 706-876-5814 jon.faulkner@dixiegroup.com