The Dixie Group Reports Results for First Quarter of 2024
The Dixie Group, Inc. (NASDAQ:DXYN) reported net sales of $65.3 million for the first quarter of 2024, with an operating loss of $857,000. The company faced challenges due to high interest rates affecting the housing market and continued inflation. Despite lower demand, the company saw improved sales and operating margins towards the end of the quarter. Additionally, the company launched new product offerings to drive sales volume and plans to reduce costs by $10 million in 2024.
The Dixie Group saw an improvement in net sales and operating margins towards the end of the quarter.
The launch of new product offerings will help drive sales volume in a challenging market.
The company plans to reduce costs by $10 million in 2024 through cost-saving measures.
The company reported an operating loss of $857,000 in the first quarter of 2024.
Gross profit margins were negatively impacted by under absorbed fixed costs due to lower sales demand.
Selling and administrative costs were higher as a percent of net sales compared to the same quarter in 2023.
Insights
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 year - The gross profit margin for the three months of the first quarter of 2024 was
24.2% of net sales compared to26.6% 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, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "Our net sales for the quarter were negatively impacted by high interest rates affecting the housing and home remodeling market and the impact on the economy from continued inflation. Overall, our net sales during the quarter were
We are excited about the start of our nylon extrusion line in North Georgia. The internal production of raw materials will provide us with lower costs, as compared to our current external purchasing, and it will provide us with a continuity of supply, protecting us and our customers from potential supply disruptions. Our initial focus has been on extruding white, dyeable nylon which allows us to present long, beautiful color lines that stand out in a residential market that has moved to a solution dyed polyester sea of sameness. In support of this, we launched a color marketing campaign, Step Into Color, which connects retailers and consumers with a world of color options, including custom colors that are prevalent in Fabrica, but also available in our other soft surface divisions.
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
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
THE DIXIE GROUP, INC.
Consolidated Condensed Statements of Operations
(unaudited; in thousands, except earnings (loss) per share)
Three Months Ended | ||||||||
March 30, | April 1, 2023 | |||||||
NET SALES | $ | 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 | ||||||
THE DIXIE GROUP, INC.
Consolidated Condensed Balance Sheets
(in thousands)
March 30, | December 30, | |||||||
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: The Dixie Group
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FAQ
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