The Dixie Group Reports Second Quarter 2017 Results
DALTON, Ga., Aug. 03, 2017 (GLOBE NEWSWIRE) -- The Dixie Group, Inc. (NASDAQ:DXYN) today reported financial results for the quarter ended July 1, 2017. The Company’s second quarter sales were $107.2 million or 1.8% above the same quarter a year ago. For the six month period total net sales increased 5.2% to $204.7 million as compared to $194.6 million in the year earlier period. Income from ...
Commenting on the results,
Our gross profit for the quarter was 26.5% of net sales as compared to 26.8% in the year earlier period. For the six months our gross profit was 26.2% versus 24.5% for the same period in 2016. Our results for the quarter and the year to date were favorably impacted by the higher level of sales. We had a price increase in the first quarter and a second price increase late in the second quarter, as did the industry. Offsetting these gains were higher raw material and medical costs. In addition, during this time period we had over
The launch of our Masland and Dixie Home Stainmaster® PetProtect™ luxury vinyl flooring product lines is going well. We have commitments to place over a thousand displays in the marketplace between the two product lines. We anticipate all of these displays to be shipped to retailers by the end of the third quarter. Our Calibrè Line of luxury vinyl flooring products continues to grow as we see the results of continued placement in the specified commercial market.
In June Royalty Carpet Mills, a primarily west coast supplier of residential carpet, chose to cease operations. We took advantage of this opportunity to increase our presence by placing additional retail displays and product lines with select retailers across our three residential brands.In addition, with the recognition that the industry is tight with respect to yarn manufacturing due to higher face weights and tighter twist construction, we purchased the operating machinery of Royalty’s Porterville carpet yarn manufacturing operation. We are starting production in Porterville at the beginning of August and will shift most our west coast yarn demand to this facility. This also relieves pressure on our
Capital expenditures for the second quarter, including those funded by cash and financings, were
The third quarter has started off upbeat with our floorcovering sales up over 9% over the first 4 weeks as compared to this same time in 2016. Our total sales for this four week period are up over 8%, the difference due to our exiting the external yarn sales business in 2016. We are seeing sales increases in both the residential and commercial markets during this period. Our business seems to track consumer sentiment and the stock market, as well as housing trends. The strength in single family housing and home resales has improved the environment for the carpet retail replacement business. Also, the changes in our industry with the closing of Royalty's operations and the Beaulieu announced bankruptcy offer opportunity for us to gain space and commitment from the floorcovering retail community. As we move into the second half of 2017, 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 | Six Months Ended | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
$ | 107,187 | $ | 105,316 | $ | 204,728 | $ | 194,550 | ||||||||
Cost of sales | 78,761 | 77,074 | 151,141 | 146,802 | |||||||||||
GROSS PROFIT | 28,426 | 28,242 | 53,587 | 47,748 | |||||||||||
Selling and administrative expenses | 25,261 | 24,320 | 49,742 | 47,986 | |||||||||||
Other operating (income) expense, net | (14 | ) | 118 | 39 | 385 | ||||||||||
Facility consolidation expenses, net | — | 401 | — | 1,814 | |||||||||||
OPERATING INCOME (LOSS) | 3,179 | 3,403 | 3,806 | (2,437 | ) | ||||||||||
Interest expense | 1,357 | 1,333 | 2,719 | 2,657 | |||||||||||
Other expense, net | 26 | 4 | 29 | 12 | |||||||||||
Income (loss) from continuing operations before taxes | 1,796 | 2,066 | 1,058 | (5,106 | ) | ||||||||||
Income tax provision (benefit) | 570 | 451 | 408 | (1,964 | ) | ||||||||||
Income (loss) from continuing operations | 1,226 | 1,615 | 650 | (3,142 | ) | ||||||||||
Income (loss) from discontinued operations, net of tax | (123 | ) | 62 | (152 | ) | 52 | |||||||||
NET INCOME (LOSS) | $ | 1,103 | $ | 1,677 | $ | 498 | $ | (3,090 | ) | ||||||
BASIC EARNINGS (LOSS) PER SHARE: | |||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.10 | $ | 0.04 | $ | (0.20 | ) | ||||||
Discontinued operations | (0.01 | ) | 0.00 | (0.01 | ) | 0.00 | |||||||||
Net income (loss) | $ | 0.07 | $ | 0.10 | $ | 0.03 | $ | (0.20 | ) | ||||||
DILUTED EARNINGS (LOSS) PER SHARE: | |||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.10 | $ | 0.04 | $ | (0.20 | ) | ||||||
Discontinued operations | (0.01 | ) | 0.00 | (0.01 | ) | 0.00 | |||||||||
Net income (loss) | $ | 0.07 | $ | 0.10 | $ | 0.03 | $ | (0.20 | ) | ||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 15,707 | 15,645 | 15,690 | 15,623 | |||||||||||
Diluted | 15,826 | 15,783 | 15,805 | 15,623 | |||||||||||
Consolidated Condensed Balance Sheets
(in thousands)
2017 | 2016 | ||||||
ASSETS | (Unaudited) | ||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 133 | $ | 140 | |||
Receivables, net | 53,612 | 43,605 | |||||
Inventories, net | 111,991 | 97,237 | |||||
Other | 4,272 | 4,376 | |||||
Total Current Assets | 170,008 | 145,358 | |||||
Property, Plant and Equipment, Net | 93,128 | 92,807 | |||||
6,003 | 6,156 | ||||||
Other Assets | 25,255 | 24,666 | |||||
TOTAL ASSETS | $ | 294,394 | $ | 268,987 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 62,223 | $ | 53,509 | |||
Current portion of long-term debt | 8,905 | 10,122 | |||||
Total Current Liabilities | 71,128 | 63,631 | |||||
Long-Term Debt | 114,828 | 98,256 | |||||
Other Liabilities | 20,221 | 19,978 | |||||
Stockholders' Equity | 88,217 | 87,122 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 294,394 | $ | 268,987 |
CONTACT:Source:Jon Faulkner Chief Financial Officer 706-876-5814 jon.faulkner@dixiegroup.com