The Dixie Group Reports Results for First Quarter of 2024
DALTON, GA / ACCESSWIRE / May 2, 2024 / The Dixie Group, Inc. (NASDAQ:DXYN) today reported financial results for the quarter ended March 30, 2024.Net sales in the first quarter of 2024 were $65.3 million compared to $67.1million in the same period of the prior yearThe gross profit margin for the three months of the first quarter of 2024 was 24.2% of net sales compared to 26.6% in the first ...
- Net sales in the first quarter of 2024 were
$65.3 million compared to$67.1million in the same period of the prior year - The gross profit margin for the three months of the first quarter of 2024 was 24.2% of net sales compared to 26.6% in the first quarter of 2023
- The Company began operations of its new extrusion line in the first quarter of 2024
- The Company announces board approval of stock repurchase plan
For the first quarter of 2024, the Company had net sales of
Commenting on the results,
We are excited about the start of our nylon extrusion line in
We launched 14 new carpet styles in the first quarter, including 11 EnVision Nylon styles in our high-end divisions. Our Masland introductions are a great mix of high fashion and mid-price points to drive volume in the current challenging market conditions. In our Fabrica brand, we launched a trio of styles paying tribute to the brand's 50 year history. Homage, Tribute, and Adulation share a common color line of 50 colors which are named after key Fabrica styles from the last 50 years. These beautiful styles are available at a sharp price point and will become go to styles for Fabrica for years to come. The remainder of our soft and hard surface introductions for 2024 will be released in the second quarter.
Our new product offerings will help us continue to maintain sales volume in a difficult market.Additionally, we plan to reduce year over year costs by
The gross profit in the first quarter of 2024 was 24.2% of net sales compared to 26.6% of net sales in the first quarter of 2023. Our gross profit margins in 2024 were negatively impacted by under absorbed fixed costs as the result of lower volume in our plants due to lower sales demand in the first part of the quarter. Selling and administrative costs in the first quarter of 2024 were slightly below the prior year in expense dollars but higher as a percent of net sales, 25.1% in 2024 as compared to 24.5% in the same quarter of 2023.
On our balance sheet, receivables increased
Subsequent to the end of the first quarter,the Company's Board of Directors approved the repurchase of up to
In the first four weeks of the second quarter in 2024, net sales are approximately 4% above the comparable period in the prior year and order entry is approximately 8% below the same period in the prior year. The second quarter is typically a stronger sales level than the first quarter due to seasonality and our new products hitting retail floors.
Consolidated Condensed Statements of Operations
(unaudited; in thousands, except earnings (loss) per share)
Three Months Ended | ||||||||
| 2023 | |||||||
| $ | 65,254 | $ | 67,084 | |||||
Cost of sales | 49,445 | 49,251 | ||||||
GROSS PROFIT | 15,809 | 17,833 | ||||||
Selling and administrative expenses | 16,372 | 16,409 | ||||||
Other operating expense, net | 52 | 68 | ||||||
Facility consolidation and severance expenses, net | 242 | 1,050 | ||||||
OPERATING INCOME(LOSS) | (857 | ) | 306 | |||||
Interest expense | 1,532 | 1,858 | ||||||
Other (income) expense, net | 5 | (14 | ) | |||||
Loss from continuing operations before taxes | (2,394 | ) | (1,538 | ) | ||||
Income tax provision | 16 | 13 | ||||||
Loss from continuing operations | (2,410 | ) | (1,551 | ) | ||||
Loss from discontinued operations, net of tax | (84 | ) | (207 | ) | ||||
NET LOSS | $ | (2,494 | ) | $ | (1,758 | ) | ||
BASIC EARNINGS (LOSS) PER SHARE: | ||||||||
Continuing operations | $ | (0.16 | ) | $ | (0.11 | ) | ||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Net loss | $ | (0.17 | ) | $ | (0.12 | ) | ||
DILUTED EARNINGS (LOSS)PER SHARE: | ||||||||
Continuing operations | $ | (0.16 | ) | $ | (0.11 | ) | ||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Net loss | $ | (0.17 | ) | $ | (0.12 | ) | ||
Weighted-average shares outstanding: | ||||||||
Basic | 14,850 | 14,676 | ||||||
Diluted | 14,850 | 14,676 | ||||||
Consolidated Condensed Balance Sheets
(in thousands)
|
| |||||||
ASSETS | (Unaudited) | |||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 55 | $ | 79 | ||||
Receivables, net | 28,225 | 23,686 | ||||||
Inventories, net | 75,041 | 76,211 | ||||||
Prepaid and other current assets | 10,803 | 12,154 | ||||||
Current assets of discontinued operations | 260 | 265 | ||||||
Total Current Assets | 114,384 | 112,395 | ||||||
Property, Plant and Equipment, Net | 37,660 | 31,368 | ||||||
Operating Lease Right-Of-Use Assets | 28,187 | 28,962 | ||||||
Other Assets | 18,039 | 17,130 | ||||||
Long-Term Assets of Discontinued Operations | 1,391 | 1,314 | ||||||
TOTAL ASSETS | $ | 199,661 | $ | 191,169 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 21,819 | $ | 13,935 | ||||
Accrued expenses | 17,438 | 16,598 | ||||||
Current portion of long-term debt | 3,794 | 4,230 | ||||||
Current portion of operating lease liabilities | 3,713 | 3,654 | ||||||
Current liabilities of discontinued operations | 1,172 | 1,137 | ||||||
Total Current Liabilities | 47,936 | 39,554 | ||||||
Long-Term Debt, Net | 80,610 | 78,290 | ||||||
Operating Lease Liabilities | 25,081 | 25,907 | ||||||
Other Long-Term Liabilities | 15,500 | 14,591 | ||||||
Long-Term Liabilities of Discontinued Operations | 3,618 | 3,536 | ||||||
Stockholders' Equity | 26,916 | 29,291 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 199,661 | $ | 191,169 | ||||
SOURCE:
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