Dixie Group Inc (DXYN) 10-K Annual Report March 2018

-- The Dixie Group, Inc. (NASDAQ: DXYN) today reported financial results for the year ended December 30, 2017. For 2017, the Company had net sales of $412,462,000 as compared to $397,453,000 in 2016. On a comparable 52 week basis, 2017 net sales were up 5.2% as compared to 2016. For 2017, the Company had a loss from continuing operations of $9,322,000 or $0.59 per diluted share. Adjusting for the impact of the Tax Cuts and Jobs Act of 2017 (the "Tax Act"), the loss from continuing operations was $0.07 per diluted share as compared to a loss from continuing operations of $0.33 per diluted share in 2016. The loss from continuing operations for 2017 was $1,153,000 before the impact of the Tax Act was taken into account as compared to a loss from continuing operations of $5,207,000 in 2016. The impact of the Tax Act was $8,169,000. The two primary effects of the Tax Act were to reprice the Company's deferred tax assets by $1.8 million for the new lower corporate tax rates and increase the valuation allowances for its deferred tax assets by $6.4 million due to the revised treatment of net operating losses.

Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, “Our residential sales, adjusting for the difference in weeks between 2017 and 2016, were up 9.3% for the year with the industry, we estimate, being up only in the low single digits. Our residential sales benefited from our response to the market space being vacated by Royalty Carpet Mills on the west coast. We responded to the Royalty shut down by introducing our Pacific Living Collection as well as adding numerous new dealers on the west coast. The impact of these efforts were an over 20% increase in sales for our west coast regions for the second half of 2017 as compared to the same period the prior year. A major initiative for the residential business was the successful launch of our Stainmaster® PetProtect™ luxury vinyl flooring line by our Masland and Dixie Home brands. This hard surface initiative was quite successful as we placed over 1,300 displays and achieved a momentum in the marketplace that we see continuing into 2018.

Our commercial sales, adjusting for the 53 week 2016 period versus the 52 week period in 2017, were up slightly while the industry, we believe, was down in the low single digits. We announced the reorganization of our commercial business in October of 2017. The changes necessary to implement this organizational re-alignment are essentially complete. The savings from this Profit Improvement initiative are anticipated to be in excess of $3 million for 2018. Our commercial team, led by David Hobbs, has a number of new offerings for 2018 with particular emphasis on new modular carpet tile offerings.

Our gross profit for the year was 24.5% for 2017, an improvement from our 24.0% gross profit margin in 2016. While improved, our gross profit was impacted by several major initiatives. We completed our physical restructuring earlier in the year, setting the stage for a more productive manufacturing environment. The startup costs for all our major manufacturing initiatives, including adding yarn processing to our Atmore plant, installing a new EVA pre-coat line for our modular tile business in south Alabama, completing our Colormaster beck dye and skein dye consolidation and starting up the Porterville yarn operation was in excess of $2 million.

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The following information was filed by Dixie Group Inc (DXYN) on Thursday, March 1, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Dixie Group Inc provided additional information to their SEC Filing as exhibits

Exhibit 10.78: Material Contract

Exhibit 21: Subsidaries Of The Registrant

Exhibit 23: Consents Of Experts And Counsel

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: DXYN
CIK: 29332
Form Type: 10-K Annual Report
Accession Number: 0000029332-18-000026
Submitted to the SEC: Tue Mar 13 2018 2:57:05 PM EST
Accepted by the SEC: Tue Mar 13 2018
Period: Saturday, December 30, 2017
Industry: Carpets And Rugs