The Dixie Group Reports Second Quarter 2016 Results
DALTON, Ga., July 27, 2016 (GLOBE NEWSWIRE) -- The Dixie Group, Inc. (NASDAQ:DXYN) today reported financial results for the quarter ended June 25, 2016. The Company’s second quarter 2016 net sales were $105,316,000, 4.2% below second quarter of 2015 sales of $109,957,000. Income from continuing operations was $1,615,000, or $0.10 per fully diluted share, for the second 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 26.8%. Furthermore, our operating margins improved 5.0% from the first quarter to the second quarter of 2016. We have lowered our cost structure through better running conditions as a result of moving production in house. Comparing the second quarter of 2016 to the first quarter of this year, we increased internal production by 23% even though we only had a total production increase of 18%. We have lower quality costs through tighter manufacturing tolerances in operations. We have improved material yields as we have improved quality and reduced waste. We have reduced medical expenses as a result of our new plan design. We continue to reduce staffing levels to increase our efficiency and respond to the lower sales volumes. Our selling and administrative costs improved from 23.8% of sales in the second quarter of last year to 23.1% of sales in the second quarter of 2016 due to cost reductions in all areas of sales and administration.
"We incurred
"Masland Contract is making a move to become a more complete resource to the commercial specifier with the introduction of Calibre High Performance LVT Flooring. After extensive research, Masland is preparing to launch a comprehensive offering of Wood and Abstract looks for use in various markets. The market targets include Corporate,
"In the residential market our
"As we move into the second half 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 | Six Months Ended | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
$ | 105,316 | $ | 109,957 | $ | 194,550 | $ | 205,812 | ||||||||
Cost of sales | 77,074 | 80,651 | 146,802 | 153,167 | |||||||||||
GROSS PROFIT | 28,242 | 29,306 | 47,748 | 52,645 | |||||||||||
Selling and administrative expenses | 24,320 | 26,191 | 47,986 | 50,948 | |||||||||||
Other operating expense, net | 118 | 63 | 385 | 553 | |||||||||||
Facility consolidation expenses | 401 | 875 | 1,814 | 1,650 | |||||||||||
OPERATING INCOME (LOSS) | 3,403 | 2,177 | (2,437 | ) | (506 | ) | |||||||||
Interest expense | 1,333 | 1,222 | 2,657 | 2,400 | |||||||||||
Other expense, net | 4 | 31 | 12 | 41 | |||||||||||
Income (loss) from continuing operations before taxes | 2,066 | 924 | (5,106 | ) | (2,947 | ) | |||||||||
Income tax provision (benefit) | 451 | 408 | (1,964 | ) | (1,083 | ) | |||||||||
Income (loss) from continuing operations | 1,615 | 516 | (3,142 | ) | (1,864 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | 62 | (12 | ) | 52 | (100 | ) | |||||||||
NET INCOME (LOSS) | $ | 1,677 | $ | 504 | $ | (3,090 | ) | $ | (1,964 | ) | |||||
BASIC EARNINGS (LOSS) PER SHARE: | |||||||||||||||
Continuing operations | 0.10 | 0.03 | (0.20 | ) | (0.12 | ) | |||||||||
Discontinued operations | — | — | — | (0.01 | ) | ||||||||||
Net income (loss) | 0.10 | 0.03 | (0.20 | ) | (0.13 | ) | |||||||||
DILUTED EARNINGS (LOSS) PER SHARE: | |||||||||||||||
Continuing operations | 0.10 | 0.03 | (0.20 | ) | (0.12 | ) | |||||||||
Discontinued operations | — | — | — | (0.01 | ) | ||||||||||
Net income (loss) | 0.10 | 0.03 | (0.20 | ) | (0.13 | ) | |||||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 15,645 | 15,546 | 15,623 | 15,490 | |||||||||||
Diluted | 15,783 | 15,656 | 15,623 | 15,490 | |||||||||||
Consolidated Condensed Balance Sheets
(in thousands)
2016 | 2015 | ||||||
ASSETS | (Unaudited) | ||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 95 | $ | 281 | |||
Receivables, net | 46,121 | 50,806 | |||||
Inventories, net | 106,166 | 115,146 | |||||
Other | 6,195 | 3,362 | |||||
Total Current Assets | 158,577 | 169,595 | |||||
Property, Plant and Equipment, Net | 96,599 | 101,146 | |||||
6,308 | 6,461 | ||||||
Other Assets | 23,112 | 21,016 | |||||
TOTAL ASSETS | $ | 284,596 | $ | 298,218 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 58,504 | $ | 60,821 | |||
Current portion of long-term debt | 9,442 | 10,142 | |||||
Total Current Liabilities | 67,946 | 70,963 | |||||
Long-Term Debt | 108,328 | 115,907 | |||||
Other Liabilities | 21,465 | 20,544 | |||||
Stockholders' Equity | 86,857 | 90,804 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 284,596 | $ | 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 | Six Months Ended | |||||||||||||||
Non-GAAP Income (Loss) From Continuing Operations | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Income (Loss) as Reported | $ | 1,677 | $ | 504 | $ | (3,090 | ) | $ | (1,964 | ) | ||||||
Income (Loss) from Discontinued Operations, Net of Tax | 62 | (12 | ) | 52 | (100 | ) | ||||||||||
Income (Loss) from Continuing Operations | 1,615 | 516 | (3,142 | ) | (1,864 | ) | ||||||||||
Facility Consolidation Expense | 401 | 875 | 1,814 | 1,650 | ||||||||||||
Tax Effect of Above | (152 | ) | (333 | ) | (689 | ) | (627 | ) | ||||||||
Non-GAAP Adjusted Income (Loss) From Continuing Operations (Note 1) | $ | 1,864 | $ | 1,058 | $ | (2,017 | ) | $ | (841 | ) | ||||||
Adjusted Diluted Earnings (Loss) Per Share from Continuing Operations | $ | 0.12 | $ | 0.07 | $ | (0.13 | ) | $ | (0.05 | ) | ||||||
Weighted-Average Diluted Shares Outstanding | 15,783 | 15,656 | 15,623 | 15,490 | ||||||||||||
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 | YTD 2016 | |||||||||||||
Warehousing, Distribution & Manufacturing Consolidation Plan | $ | 2,016 | $ | 1,342 | $ | 396 | $ | 1,738 | ||||||||
Atlas Integration Plan | 202 | — | — | — | ||||||||||||
Corporate Office Consolidation Plan | 728 | 71 | 5 | 76 | ||||||||||||
Total Facility Consolidation Expense | $ | 2,946 | $ | 1,413 | $ | 401 | $ | 1,814 | ||||||||
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