Dixie Group Inc (DXYN) 10-Q Quarterly Report November 2020

•Secured $25 million in long term fixed rate loans; entered into new $75 million, 5 year senior credit facility; raised borrowing availability to $45 million.

•Announced authorization of $2.9 million stock repurchase plan

DALTON, GEORGIA (November 5, 2020)

-- The Dixie Group, Inc. (NASDAQ: DXYN) today reported financial results for the third fiscal quarter ended September 26, 2020. For the third quarter of 2020, the Company had net income from continuing operations of $906,000 or $0.06 per diluted share as compared to a loss of $2,577,000 or $0.16 per diluted share in the third quarter of 2019. For the third quarter of 2020, the Company had net sales of $85,920,000 as compared to $95,447,000 in 2019. For the third quarter of 2020, net sales were down 10% as compared to the same quarter in 2019 but were up 41% compared to the prior quarter.

Subsequent to the end of the third quarter, the Company entered into a new $75 million, five year, Senior Revolving Credit Facility, and also closed on two additional long term, fixed rate, asset backed loans in the total amount of $25 million. The Company currently has no goodwill or intangibles on its balance sheet, and has reduced its debt by $50 million in the last twelve months. Availability under the revolving facility at the close of the transaction was $45 million. Additionally, the Company's Board of Directors approved the repurchase of up to $2.9 million of the Company's common stock. We believe these transactions, together with significant operational improvements, put the Company in a much stronger position going forward.

Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, “We are pleased to report a profit for the third quarter of 2020. We continue our efforts to keep our employees safe through the COVID-19 crisis. To minimize and prevent cases of COVID-19 exposure in our facilities, we have taken measures aimed at enhancing worker safety, including large scale COVID-19 testing, mandatory temperature checks prior to starting work, and requirements to wear masks when unable to maintain social distancing. We are still assessing the long-term impacts of the COVID-19 crisis on our markets and operating practices. We are encouraged by the improvement we have seen in sales, but as a resurgence of COVID-19 cases has been seen in many parts of the country and as government authorities reassess their decisions to lift the restrictions in their jurisdictions, we are cautious as to what the remainder of the year may look like.

In the third quarter, sales continued to recover from the impact of the COVID-19 pandemic. Our third quarter sales were 10% below the same quarter sales in the prior year. Sales of our residential products were up 3% for the quarter, while the industry, we believe, was up closer to 1.5%. Benefiting from strong trends in new home construction and existing home sales, our residential segment saw business conditions continue to improve through the quarter, as many flooring retailers emerged from the COVID-19 downturn, and an increasing number of consumers began home improvement projects. Our specialty retail soft surface business was positive for the third

-MORE-

The following information was filed by Dixie Group Inc (DXYN) on Thursday, November 5, 2020 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Please wait while we load the requested 10-Q report or click the link below:

https://last10k.com/sec-filings/report/29332/000002933220000092/dxyn-20200926.htm

View differences made from one quarter to another to evaluate Dixie Group Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by Dixie Group Inc.

Continue

Assess how Dixie Group Inc's management team is paid from their Annual Proxy

Dixie Group Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2020 10-K Annual Report includes:

Voting Procedures
Board Members
Executive Team
Salaries, Bonuses, Perks
Peers / Competitors

Continue

Rating
Learn More

Filter Sentiment:

All

Positive

Negative

Filter Category:

All

Financial

Revenue

Other

Filter Subcategory:

All

Expense

Product

Earnings

Other

Inside Dixie Group Inc's 10-Q Quarterly Report:

Financial - Expense Highlight
The expenses in the third quarter of 2020 were comprised of costs related to our COVID-19 Continuity Plan including severance and financing related charges, as well as residual costs from our Profit Improvement Plan.

Financial - Expense Highlight
The following important factors may affect our future results and could cause those results to differ materially from our historical results; these factors include, in addition to those "Risk Factors" detailed in item 1A of this report, and described elsewhere in this document, the cost and availability of capital, raw material and transportation costs related to petroleum price levels, the cost and availability of energy supplies, the loss of a significant customer or group of customers, the ability to attract, develop and retain qualified personnel, materially adverse changes in economic conditions generally in carpet, rug and floorcovering markets we serve and other risks detailed from time to time in our filings with the Securities and Exchange Commission.
Financial - Expense Highlight
Net expense reductions resulting from our Profit Improvement Plan and our COVID-19 Continuity Plan contributed to a higher gross margin and lower selling and administrative expenses.
Financial - Expense Highlight
Cost reductions resulting from our Profit Improvement Plan, which was implemented in the prior year, and net expense reductions from the implementation of our COVID-19 Continuity Plan contributed to the improved gross profit margin.
Financial - Expense Highlight
Facility and consolidation expenses related to the COVID-19 Continuity Plan were $515 thousand in the third quarter of 2019 compared to facility and consolidation expenses for the third quarter of 2019, related to the Profit Improvement Plan, of $1.0 million.
Revenue - Product
Commercial product sales decreased 41%...Read more
Revenue - Product
Although sales in the third...Read more
Financial - Expense
Interest expense for the nine...Read more
Financial - Earnings
The higher gross profit percentage...Read more
Financial - Expense
Interest Expense Interest expense decreased...Read more
Revenue - Product
The increase in accounts receivable...Read more
Other - Other
Such benefits, if recognized, would...Read more
Other - Other
The Company is in a...Read more
Financial - Earnings
Gross profit as a percentage...Read more
Other - Other
The effective tax rate for...Read more
Other - Other
Significant additional cash expenditures above...Read more
Other - Other
Once the extent of the...Read more
Other - Other
There can be no assurance...Read more
Revenue - Product
The net sales results in...Read more
Other - Other
We focus primarily on the...Read more
Revenue - Product
Our hard surface product offerings...Read more
Revenue - Product
Our residential product sales were...Read more
Financial - Expense
The reduction in expenses for...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

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

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-Q Quarterly Report
Accession Number: 0000029332-20-000092
Submitted to the SEC: Fri Nov 06 2020 4:10:25 PM EST
Accepted by the SEC: Fri Nov 06 2020
Period: Saturday, September 26, 2020
Industry: Carpets And Rugs