The Dixie Group Reports Results for the Third Quarter of 2024
DALTON, GA / ACCESSWIRE / November 1, 2024 / The Dixie Group, Inc. (OTCQB:DXYN) today reported financial results for the quarter ended September 28, 2024.Net sales in the third quarter of 2024 were $64.9 million compared to $68.6 million in the same period of the prior yearThe gross profit margin for the three months of the third quarter of 2024 was 24.6% of net sales compared to 26.6% in the ...
Net sales in the third quarter of 2024 were
$64.9 million compared to$68.6 million in the same period of the prior yearThe gross profit margin for the three months of the third quarter of 2024 was 24.6% of net sales compared to 26.6% in the third quarter of 2024
Operating loss in the third quarter of 2024 was
$2.1 million compared to a loss of$0.9 million in the third quarter of the prior year
For the third quarter of 2024, the Company had net sales of
For the nine months ended
Commenting on the results,
We are pleased by the results of the successful operation of our extrusion equipment that began in the first quarter of this year. Along with providing raw materials at a lower cost, the importance of securing an internal supply of fiber became more apparent as one of our key suppliers of white nylon announced they would be shutting down their operations later this year.
Throughout the third quarter we continued to promote our Step Into Color campaign through marketing materials placed in our customers' retail stores as well as digital advertising. The Step Into Color campaign connects our retail customers, designers and consumers with a world of color options, including custom colors available in all of our brands. This provides the end user with colorful options in piece dyed nylon as opposed to the sea of sameness that is solution dyed polyester.
Our marketing activities in the third quarter included continued focus on expanding our digital marketing efforts which has resulted in increased lead generation, sample order activity from our websites and improved capabilities for online product visualization. We also saw strong growth from retail stores where we have placed our Premier Flooring Center program. The investment in samples, merchandising and training in these stores have provided returns of increased business and greater market share.
Our product and marketing initiatives should allow us to continue to outperform the industry in what has been a difficult flooring market. Our cost savings initiatives, including the successful operation of our extrusion equipment and the consolidation of our east coast manufacturing facilities, have us in a strong position to maximize the return from an anticipated improvement in demand going into 2025. This higher demand is expected to be driven by higher existing home sales and remodeling as the result of decreasing interest rates and access to elevated home equity." Frierson concluded.
Net sales in the third quarter of 2024,
Selling and administrative expenses in the third quarter of 2024 were
On our September fiscal month end balance sheet, receivables increased
For the first four weeks of the fourth quarter 2024 to date, net sales are approximately 1% below the comparable period in the prior year.
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, availability of raw material and transportation costs related to petroleum prices, the cost and availability of capital, integration of acquisitions, ability to attract, develop and retain qualified personnel 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 (loss) per share)
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| Three Months Ended |
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| Nine Months Ended |
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| $ | 64,877 |
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| $ | 68,576 |
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| $ | 200,638 |
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| $ | 209,669 |
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Cost of sales |
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| 48,947 |
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| 50,341 |
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| 149,085 |
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| 153,821 |
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GROSS PROFIT |
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| 15,930 |
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| 18,235 |
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| 51,553 |
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| 55,848 |
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Selling and administrative expenses |
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| 17,561 |
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| 18,743 |
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| 51,309 |
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| 54,195 |
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Other operating (income) expense, net |
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| 193 |
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|
| (147 | ) |
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| 141 |
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|
| (313 | ) |
Facility consolidation and severance expenses, net |
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| 283 |
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| 552 |
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| 772 |
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| 2,320 |
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OPERATING LOSS |
|
| (2,107 | ) |
|
| (913 | ) |
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| (669 | ) |
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| (354 | ) |
Interest expense |
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| 1,628 |
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| 1,795 |
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| 4,780 |
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| 5,503 |
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Other (income) expense, net |
|
| (2 | ) |
|
| (622 | ) |
|
| 8 |
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|
| (634 | ) |
Loss from continuing operations before taxes |
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| (3,733 | ) |
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| (2,086 | ) |
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| (5,457 | ) |
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| (5,223 | ) |
Income tax provision (benefit) |
|
| (4 | ) |
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| 125 |
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| 16 |
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| 159 |
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Loss from continuing operations |
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| (3,729 | ) |
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| (2,211 | ) |
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| (5,473 | ) |
|
| (5,382 | ) |
Loss from discontinued operations, net of tax |
|
| (182 | ) |
|
| (183 | ) |
|
| (329 | ) |
|
| (496 | ) |
NET LOSS |
| $ | (3,911 | ) |
| $ | (2,394 | ) |
| $ | (5,802 | ) |
| $ | (5,878 | ) |
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BASIC EARNINGS (LOSS) PER SHARE: |
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Continuing operations |
| $ | (0.26 | ) |
| $ | (0.15 | ) |
| $ | (0.37 | ) |
| $ | (0.36 | ) |
Discontinued operations |
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| (0.01 | ) |
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| (0.01 | ) |
|
| (0.02 | ) |
|
| (0.04 | ) |
Net Loss |
| $ | (0.27 | ) |
| $ | (0.16 | ) |
| $ | (0.39 | ) |
| $ | (0.40 | ) |
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DILUTED EARNINGS (LOSS) PER SHARE: |
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Continuing operations |
| $ | (0.26 | ) |
| $ | (0.15 | ) |
| $ | (0.37 | ) |
| $ | (0.36 | ) |
Discontinued operations |
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| (0.01 | ) |
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| (0.01 | ) |
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| (0.02 | ) |
|
| (0.04 | ) |
Net Loss |
| $ | (0.27 | ) |
| $ | (0.16 | ) |
| $ | (0.39 | ) |
| $ | (0.40 | ) |
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Weighted-average shares outstanding: |
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Basic |
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| 14,455 |
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| 14,824 |
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| 14,733 |
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| 14,769 |
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Diluted |
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| 14,455 |
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| 14,824 |
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| 14,733 |
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| 14,769 |
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Consolidated Condensed Balance Sheets
(in thousands)
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ASSETS |
| (Unaudited) |
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Current Assets |
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Cash and cash equivalents |
| $ | 1,053 |
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| $ | 79 |
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Receivables, net |
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| 26,578 |
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| 23,686 |
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Inventories, net |
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| 76,754 |
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| 76,211 |
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Prepaid and other current assets |
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| 8,201 |
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| 12,154 |
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Current assets of discontinued operations |
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| 199 |
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| 265 |
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Total Current Assets |
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| 112,785 |
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| 112,395 |
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Property, Plant and Equipment, Net |
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| 34,942 |
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| 31,368 |
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Operating Lease Right-Of-Use Assets |
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| 26,466 |
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| 28,962 |
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Other Assets |
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| 19,125 |
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| 17,130 |
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Long-Term Assets of Discontinued Operations |
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| 1,383 |
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| 1,314 |
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TOTAL ASSETS |
| $ | 194,701 |
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| $ | 191,169 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current Liabilities |
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Accounts payable |
| $ | 18,913 |
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| $ | 13,935 |
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Accrued expenses |
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| 17,891 |
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| 16,598 |
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Current portion of long-term debt |
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| 2,680 |
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| 4,230 |
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Current portion of operating lease liabilities |
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| 3,863 |
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| 3,654 |
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Current liabilities of discontinued operations |
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| 1,049 |
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|
| 1,137 |
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Total Current Liabilities |
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| 44,396 |
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| 39,554 |
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Long-Term Debt, Net |
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| 83,733 |
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| 78,290 |
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Operating Lease Liabilities |
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| 23,221 |
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| 25,907 |
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Other Long-Term Liabilities |
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| 16,460 |
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| 14,591 |
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Long-Term Liabilities of Discontinued Operations |
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| 3,620 |
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| 3,536 |
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Stockholders' Equity |
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| 23,271 |
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| 29,291 |
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
| $ | 194,701 |
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| $ | 191,169 |
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SOURCE:
View the original press release on accesswire.com