CONTACT: Jon Faulkner
Chief Financial Officer
THE DIXIE GROUP REPORTS 2018 RESULTS,
CONTINUES THE ROLLOUT OF ITS $17 MILLION PROFIT IMPROVEMENT PLAN
DALTON, GEORGIA (March 7, 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.
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.