The Dixie Group Reports First Quarter 2017 Results
DALTON, Ga., May 04, 2017 (GLOBE NEWSWIRE) -- The Dixie Group, Inc. (NASDAQ:DXYN) today reported financial results for the quarter ended April 1, 2017. For the first quarter of 2017, the Company had net sales of $97,541,000, or 9.3% above, sales of $89,234,000 in the first quarter of 2016. The Company had a loss from continuing operations of $575,000 for the first quarter of 2017 as compared ...
Commenting on the results,
Our cost structure improved significantly on the higher sales and production volumes. Additionally, we significantly reduced our quality related expenses across both our residential and commercial product lines. Offsetting these gains were substantial increases in medical costs as well as other people related costs. Further, we had uncharacteristically high maintenance costs as we have been modifying our Colormaster dye facility to add beck and skein dye capabilities as well as startup costs related to adding additional yarn processing capabilities to our commercial
We are completing the startup of our expanded yarn processing capabilities in our
Our interest expense for the quarter was
We announced our entry into the residential luxury vinyl tile market during the quarter and have been very pleased with the response to our introduction of Stainmaster® PetProtect™ Luxury Vinyl Tile under the Masland and Dixie Home brands. We have been pleased by the number and quality of new floorcovering dealers signing up for our new LVT offerings. Further, our commercial line of Calibrè luxury vinyl tile products is beginning to gain traction with larger installations being ordered as we have now had time for the specification process to yield results.
At Surfaces, the annual residential show, we saw positive results from our new product line up for 2017. Notable in this launch was Stainmaster’s® LiveWell™ brand, the first carpet and cushion system designed to reduce dust and allergen-particle buildup without adding steps to the cleaning routine. Made with kid and pet-safe AllerShield™ technology, it helps reduce the bonding of allergy-aggravating particles to the carpet fibers. When allergen particles release easily from the carpet fibers, more of them end up in the vacuum. This product line meets the needs of today’s more educated consumer who desires healthier products and lifestyle solutions.
Commercially, our Atlas brand launched the Metáfora Collection. Inspired by modern retro design, the Metáfora Collection creates a contemporary feel with a touch of nostalgia. This artistic assortment, available in broadloom, carpet tile and area rugs, mixes imaginative and versatile style, texture and color for use in public spaces, retail, corporate, healthcare and hospitality designs. Masland Hospitality introduced The Crazed Collection which reflects the intentional irregularity found in ceramics, with patterns that are both loose and structured; primitive and refined.
For the first four weeks of the second quarter, our floorcovering sales are up low-single digits on a year over year basis but are up mid-single digits as compared to this same time in the prior year after adjusting for the Easter holiday. Likewise, our total sales are flat as compared to the prior year but would be up low-single digits on a similarly holiday adjusted basis due to our exiting the sales of yarn to outside customers in 2016 as we brought that production in house.
During the quarter,
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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 | |||||||
2017 | 2016 | ||||||
$ | 97,541 | $ | 89,234 | ||||
Cost of sales | 72,380 | 69,728 | |||||
GROSS PROFIT | 25,161 | 19,506 | |||||
Selling and administrative expenses | 24,481 | 23,666 | |||||
Other operating expense, net | 52 | 267 | |||||
Facility consolidation expenses, net | — | 1,413 | |||||
OPERATING INCOME (LOSS) | 628 | (5,840 | ) | ||||
Interest expense | 1,362 | 1,324 | |||||
Other expense, net | 4 | 8 | |||||
Loss from continuing operations before taxes | (738 | ) | (7,172 | ) | |||
Income tax benefit | (163 | ) | (2,415 | ) | |||
Loss from continuing operations | (575 | ) | (4,757 | ) | |||
Loss from discontinued operations, net of tax | (29 | ) | (10 | ) | |||
NET LOSS | $ | (604 | ) | $ | (4,767 | ) | |
BASIC EARNINGS (LOSS) PER SHARE: | |||||||
Continuing operations | $ | (0.04 | ) | $ | (0.30 | ) | |
Discontinued operations | (0.00 | ) | (0.00 | ) | |||
Net loss | $ | (0.04 | ) | $ | (0.30 | ) | |
DILUTED EARNINGS (LOSS) PER SHARE: | |||||||
Continuing operations | $ | (0.04 | ) | $ | (0.30 | ) | |
Discontinued operations | (0.00 | ) | (0.00 | ) | |||
Net loss | $ | (0.04 | ) | $ | (0.30 | ) | |
Weighted-average shares outstanding: | |||||||
Basic | 15,673 | 15,600 | |||||
Diluted | 15,673 | 15,600 |
Consolidated Condensed Balance Sheets
(in thousands)
2017 | 2016 | ||||||
ASSETS | (Unaudited) | ||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 143 | $ | 140 | |||
Receivables, net | 51,164 | 43,605 | |||||
Inventories, net | 103,542 | 97,237 | |||||
Other | 4,555 | 4,376 | |||||
Total Current Assets | 159,404 | 145,358 | |||||
Property, Plant and Equipment, Net | 93,503 | 92,807 | |||||
6,079 | 6,156 | ||||||
Other Assets | 25,366 | 24,666 | |||||
TOTAL ASSETS | $ | 284,352 | $ | 268,987 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 56,899 | $ | 53,509 | |||
Current portion of long-term debt | 9,872 | 10,122 | |||||
Total Current Liabilities | 66,771 | 63,631 | |||||
Long-Term Debt | 110,811 | 98,256 | |||||
Other Liabilities | 19,829 | 19,978 | |||||
Stockholders' Equity | 86,941 | 87,122 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 284,352 | $ | 268,987 |
CONTACT:Source:Jon Faulkner Chief Financial Officer 706-876-5814 jon.faulkner@dixiegroup.com