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 to19.2% 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$719 thousand in expenses related to facility consolidations. - Order entryfor the monthof July 2023 is slightlyahead of the comparable periodin the prior year.
DALTON, GA / ACCESSWIRE / August 4, 2023 / The Dixie Group, Inc. (NASDAQ:DXYN) today reported financial results for the quarter ended July 1, 2023. For the three months of the second quarter of 2023, the Company had net sales of
For the six months ended July 1, 2023, net sales from continuing operations were
Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "Our second quarter results continued to show the positive impact of the plant consolidation and cost reductions we began in 2022. Our gross margins were strong as our manufacturing plants continue to operate at levels of high efficiency despite the lower year over year sales volume. A significant factor in the year over year sales decline was a loss of volume in the mass merchant channel, with our primary customer's strategy shifting toward lower price points. Excluding our mass merchant sales, net sales were down
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
The Company's receivables increased
For the month of July 2023, orderentry is slightlyhigher than the comparable periodin the prior year. We anticipate stronger demand in the later third quarter due to normal seasonality and the impact of new product launches.
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 Securities and Exchange Commission. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events,the receipt of new information, or otherwise.
THE DIXIE GROUP, INC.
Consolidated Condensed Statements of Operations
(unaudited; in thousands, except earnings (loss) per share)
Three Months Ended | Six Months Ended | ||||||||||||||
July 1, | June 25, | July 1, | June 25, | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
NET SALES | $ | 74,009 | $ | 83,698 | $ | 141,093 | $ | 161,273 | |||||||
Cost of sales | 54,229 | 67,642 | 103,480 | 130,041 | |||||||||||
GROSS PROFIT | 19,780 | 16,056 | 37,613 | 31,232 | |||||||||||
Selling andadministrative expenses | 19,042 | 18,855 | 35,451 | 36,268 | |||||||||||
Other operating (income) expense, net | (234) | 136 | (166) | 146 | |||||||||||
Facility consolidation andseverance expenses, net | 719 | - | 1,768 | - | |||||||||||
OPERATING INCOME(LOSS) | 253 | (2,935) | 560 | (5,182) | |||||||||||
Interest expense | 1,849 | 1,081 | 3,707 | 2,196 | |||||||||||
Other (income) expense, net | 3 | - | (10) | (1) | |||||||||||
Loss from continuing operations before taxes | (1,599) | (4,016) | (3,137) | (7,377) | |||||||||||
Income tax provision (benefit) | 21 | 3 | 34 | (16) | |||||||||||
Loss fromcontinuing operations | (1,620) | (4,019) | (3,171) | (7,361) | |||||||||||
Loss from discontinued operations, net of tax | (106) | (468) | (313) | (483) | |||||||||||
NET LOSS | $ | (1,726) | $ | (4,487) | $ | (3,484) | $ | (7,844) | |||||||
BASIC EARNINGS (LOSS) PER SHARE | |||||||||||||||
Continuing operations | $ | (0.11) | $ | (0.26) | $ | (0.22) | $ | (0.48) | |||||||
Discontinued operations | (0.01) | (0.03) | (0.02) | (0.03) | |||||||||||
Net loss | $ | (0.12) | $ | (0.29) | $ | (0.24) | $ | (0.51) | |||||||
DILUTED EARNINGS (LOSS) PER SHARE: | |||||||||||||||
Continuing operations | $ | (0.11) | $ | (0.26) | $ | (0.22) | $ | (0.48) | |||||||
Discontinued operations | (0.01) | (0.03) | (0.02) | (0.03) | |||||||||||
Net loss | $ | (0.12) | $ | (0.29) | $ | (0.24) | $ | (0.51) | |||||||
Weighted-average sharesoutstanding: | |||||||||||||||
Basic | 14,808 | 15,225 | 14,742 | 15,184 | |||||||||||
Diluted | 14,808 | 15,225 | 14,742 | 15,184 |
THE DIXIE GROUP, INC.
Consolidated Condensed BalanceSheets
(in thousands)
July 1, 2023 | December 31, 2022 | ||||||
ASSETS | (Unaudited) | ||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 102 | $ | 363 | |||
Receivables, net | 29,497 | 25,009 | |||||
Inventories, net | 79,182 | 83,699 | |||||
Prepaid andother current assets | 13,424 | 10,167 | |||||
Current assets of discontinued operations | 294 | 641 | |||||
Total Current Assets | 122,499 | 119,879 | |||||
Property, Plantand Equipment, Net | 42,484 | 44,916 | |||||
Operating LeaseRight-Of-Use Assets | 19,273 | 20,617 | |||||
Other Assets | 15,533 | 15,982 | |||||
Long-Term Assets of Discontinued Operations | 1,566 | 1,552 | |||||
TOTAL ASSETS | $ | 201,355 | $ | 202,946 | |||
LIABILITIES ANDSTOCKHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 19,514 | $ | 14,205 | |||
Accrued expenses | 18,525 | 17,667 | |||||
Current portionof long-term debt | 4,245 | 4,573 | |||||
Current portionof operating leaseliabilities | 2,814 | 2,774 | |||||
Current liabilities of discontinued operations | 1,514 | 2,447 | |||||
Total Current Liabilities | 46,612 | 41,666 | |||||
Long-Term Debt, Net | 91,918 | 94,725 | |||||
Operating LeaseLiabilities | 17,163 | 18,802 | |||||
Other Long-Term Liabilities | 13,664 | 12,480 | |||||
Long-Term Liabilities of Discontinued Operations | 3,853 | 3,759 | |||||
Stockholders' Equity | 28,145 | 31,514 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 201,355 | $ | 202,946 |
SOURCE: The Dixie Group
View source version on accesswire.com:
https://www.accesswire.com/772336/The-Dixie-Group-Reports-Operating-Income-for-Second-Quarter-of-2023