Dixie Group Inc (DXYN) 10-K Annual Report March 2019

-- The Dixie Group, Inc. (NASDAQ: DXYN) today reported financial results for the year ended December 29, 2018. For 2018, the Company had net sales of approximately $405,033,000 as compared to $412,462,000 in 2017. The loss from continuing operations for 2018 was $21,479,000 or $1.36 per share, as compared to a loss from continuing operations of approximately $9,322,000 in 2017. On a non-GAAP basis, as shown on the attached schedule, the results from continuing operations would have been a loss of $0.44 per share adjusted for the impact of the Profit Improvement Plan.

Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, “2018 was a year of change for both Dixie and the industry. The industry dynamics have shifted as we have seen the soft floorcovering market shrink in square feet while at the same time we saw the rapid rise of a new market segment with luxury vinyl flooring which has taken market share from all major flooring categories. During this time, we have been shifting our emphasis to include hard surfaces products, primarily luxury vinyl flooring, in our product offering. Our residential business has continued to gain market share as we have expanded our footprint throughout the retail environment. Residentially our operational focus this past year has been on taking advantage of our increased productivity as we lower our labor and other input costs. Beginning in late 2017 when we brought our two commercial floorcovering businesses under the leadership of David Hobbs, we have been methodically combining our operations, culminating with the complete integration of our management, support functions, sales forces and commercial facilities by the end of the first quarter of 2019. Commercially we have been driving our product offering towards solution dyed modular carpet tile while we reorganize the commercial business to bring it into sustained profitability.

The residential business soft surface product line grew by 1.8% while the industry, we believe, was flat. Our hard surface sales tripled during this same time period. In the residential market in 2018, we had our largest product launch ever. We launched over 150 new products for 2018, including 67 carpet styles and 86 hard surface designs. Our focus in 2018 was to enhance our importance to our residential dealer network and to gain retail floor space by broadening our product offering as we expanded our main street commercial and mill branded soft flooring product selection. We are especially pleased with our new Masland eNeRgy in store display with 20 exciting main street commercial products. This high styled main street category was developed by Masland in the mid 2000’s and we are re-invigorating this line with new products, designs and an updated selling vehicle. The eNeRgy line is a complete selection of broadloom and modular carpet tile designed for the commercial market serviced through our network of full service dealers. We began shipment of our new EnVision 6,6™ soft floorcovering collection. This new program is an extension of our Dixie Home product line with nicely styled carpet products at moderate price points to reach a wider range of consumers. These products are made with type 6,6 nylon to ensure the highest quality and performance standards. In addition, we launched the Fabrica wood line, initially with selective distribution in the southeast but later expanded across the United States. The Fabrica collection features “best in class” unique flooring looks including French oak, maple and birch with a style and quality consistent with the high-end quality of Fabrica’s brand. We expanded our luxury vinyl flooring offering and placement by 40% while offering more product selection with both plank and tile offerings in our STAINMASTER® PetProtect® line. For 2019 we are building on the momentum we gained by tripling our residential hard surface business in 2018 with the launch of TruCor™, our new solid polymer core or “SPC” luxury vinyl flooring line. This latest addition to our rigid core luxury vinyl flooring offering is designed to create an extremely durable and waterproof luxury vinyl flooring product with a broader range of price points to meet the needs of various consumers.

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The following information was filed by Dixie Group Inc (DXYN) on Thursday, March 7, 2019 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 Dixie Group Inc's 10-K Annual Report:

Financial - Expense Highlight
The Plan expenses included inventory write downs, restructuring costs, and asset impairments as we re-configured our commercial business and right sized our residential manufacturing operations for lower unit demand.

Revenue - Product Highlight
In 2018 proceeds from sale of equipment totaled $1.9 million, primarily related to assets in our plants that were closed as part of our Profit Improvement Plan.
Financial - Expense Highlight
To offset those higher costs, we continued the implementation of our previously announced Profit Improvement Plan ("the Plan").
Financial - Expense Highlight
In addition, we had rising raw material costs which, passed on to our customers through higher prices, were recovered after we experienced such cost increases.
Other - Other Highlight
At December 29, 2018, we had no liabilities measured at fair value that fall under a level 3 classification in the hierarchy (those subject to significant management judgment or estimation).
Revenue - Product
Soft surface sales of commercial...Read more
Financial - Earnings
At our election, advances of...Read more
Revenue - Product
? Identification of the contract...Read more
Other - Other
The majority of the increase...Read more
Other - Other
In the tax year ended...Read more
Financial - Income
The income tax expense for...Read more
Other - Other
The note payable bears interest...Read more
Financial - Income
Absent the impact of the...Read more
Other - Other
The Plan, begun in the...Read more
Other - Other
As of December 29, 2018,...Read more
Financial - Income
Table of Contents 21 Our...Read more
Other - Other
Significant additional cash expenditures above...Read more
Other - Other
Although our estimates have not...Read more
Financial - Income
The Tax Act, among other...Read more
Financial - Expense
In addition to items related...Read more
Revenue - Product
Receivables decreased on lower sales...Read more
Revenue - Product
Residential soft surface sales were...Read more
Other - Other
There can be no assurance...Read more
Financial - Expense
Expenses related to the Plan...Read more
Other - Other
The weighted-average interest rate on...Read more
Revenue - Product
Estimated amounts are included in...Read more
Other - Other
We had borrowings of $1.5...Read more
Financial - Expense
The majority of our higher...Read more
Other - Other
We focus exclusively on the...Read more
Other - Other
We have responded to this...Read more
Other - Other
As a result, actual amounts...Read more
Other - Other
Additionally, 2016 included approximately $395...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

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

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: 0000029332-19-000021
Submitted to the SEC: Fri Mar 08 2019 11:13:31 AM EST
Accepted by the SEC: Fri Mar 08 2019
Period: Saturday, December 29, 2018
Industry: Carpets And Rugs