The Dixie Group Reports Operating Income for Second Quarter of 2023
Highlights from the SecondQuarter 2023:Gross profit margin for three months of the second quarter of 2023 was 26.7% of net sales compared to 19.2% in the second quarter of 2022.Operating income for the three months of the second quarter of 2023 was $253 thousand compared to an operating loss of $2.9 million in the second quarter of 2022. The operating income in the current quarter included ...
Highlights from the SecondQuarter 2023:
- Gross profit margin for three months of the second quarter of 2023 was 26.7% of net sales compared to 19.2% in the second quarter of 2022.
- Operating income for the three months of the second quarter of 2023 was
$253 thousandcompared to an operating loss of $2.9 millionin the second quarter of 2022. The operating income in the current quarter included $719 thousandin expenses related to facility consolidations.
- Order entryfor the monthof
July 2023is slightlyahead of the comparable periodin the prior year.
For the six months ended
Commenting on the results,
In the second quarter we launched eleven new products in our synthetic soft surface lines. This included four new styles in our DH Floors collection made with DuraSilk™ solution dyed polyester, three new nylon products in our .Masland Energy main street commercial group and four new EnVision nylon styles in our high-end residential Masland and Fabrica brands
In our higher-end decorative brands, we have continued executing our growth strategy through 23 new introductions. This includes eight new styles in Décor by Fabrica, six in 1866 by Masland, and nine in our new 1866 All Seasons Collection. The 1866 All Seasons Collection is new for 2023 and includes 15 beautiful patterns for indoor or outdoor applications. Made with UV-treated fiber, which will not degrade from sunlight or weather, and available with a special exterior backing, these styles are especially well suited for the growing trend of outdoor living spaces.
In our hard surface lines, we introduced two new collections in TRUCOR Bravo and TRUCOR TYMBR Select. Bravo is a 5.5mm, 7"x60" SPC featuring great visuals, on-trend colors, and painted beveled edges. TYMBR Select is our second collection in the laminate segment and provides beautiful visuals and colors with an AC4 durability rating.
We are also excited about the continued expansion of our digital capability through our partnership with Broadlume. This program provides an excellent consumer experience, including integration with retailer websites, personalized online product visualization and easy online sample ordering. There are over 800 retailers in this program now, and we are seeing increased online activity, lead generation, and sample ordering," Frierson concluded.
The gross profit in the three months of the second quarter of 2023 was 26.7% of net sales compared to 19.2% of net sales in the same quarter of 2022. Our 2022 gross margin was negatively impacted by exorbitantly high pricing from our former primary raw material provider driven by their decision to exit the business. In 2023, we have diversified our raw material suppliers at lower comparative costs. Our cost of goods sold also reflected favorable operating results from our manufacturing operations primarily attributable to our east coast plant consolidations. Selling and administrative costs in the second quarter 2023 were higher as a percent of the lower net sales, 25.7% of net sales in 2023 compared to 22.5% in the second quarter of 2022.
The Company's receivables increased
For the month of
This press releasecontains forward-looking statements. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management and the Companyat the time of such statements and are not guarantees of performance. Forward-looking statements are subjectto risk factors and uncertainties that could cause actual resultsto differ materially from those indicatedin such forward-looking statements. Such factors includethe 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, availability of raw material and transportation costs related to petroleum prices, the cost and availability of capital, integration of acquisitions, abilityto attract, developand retain qualifiedpersonnel and generaleconomic and competitive conditions related to the Company'sbusiness. Issues relatedto the availability and price of energymay adversely affectthe Company's operations. Additional information regardingthese and otherrisk factors and uncertainties may be found in the Company's filingswith the
Consolidated Condensed Statements of Operations
(unaudited; in thousands, except earnings (loss) per share)
|Three Months Ended||Six Months Ended|
Cost of sales
Selling andadministrative expenses
Other operating (income) expense, net
Facility consolidation andseverance expenses, net
Other (income) expense, net
Loss from continuing operations before taxes
Income tax provision (benefit)
Loss fromcontinuing operations
Loss from discontinued operations, net of tax
|BASIC EARNINGS (LOSS) PER SHARE|
|DILUTED EARNINGS (LOSS) PER SHARE:|
Consolidated Condensed BalanceSheets
Cash and cash equivalents
Prepaid andother current assets
Current assets of discontinued operations
Total Current Assets
Property, Plantand Equipment, Net
Operating LeaseRight-Of-Use Assets
Long-Term Assets of Discontinued Operations
LIABILITIES ANDSTOCKHOLDERS' EQUITY
Current portionof long-term debt
Current portionof operating leaseliabilities
Current liabilities of discontinued operations
Total Current Liabilities
Long-Term Debt, Net
Other Long-Term Liabilities
Long-Term Liabilities of Discontinued Operations
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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