Dixie Group Inc (DXYN) 10-Q Quarterly Report May 2022

•Net sales for the fiscal year of 2021 were $341 million, or 36% above the net sales of $251 million in the fiscal year of 2020, as adjusted for the divestiture of the commercial business.

•The net income for the fiscal year end 2021 was $1.6 million with a $5.2 million income from continuing operations.

•As the result of the inflationary impact on inventory costs, our LIFO reserve for inventory increased by $16.2 million in 2021; more than doubling the reserve balance at the end of fiscal year 2020.

•Despite rising costs in 2021, we were able to reduce our total debt at fiscal year-end December 25, 2021 to the lowest fiscal year end level since 2011.

For the year 2021, net sales from continuing operations for the Company were $341,247,000 as compared to $250,869,000 in the year 2020. The financial information reported for 2020 has been presented to reflect the results adjusted for the divestiture of the commercial business. The net income on the year 2021 was $1,616,000 compared to a net loss of $9,208,000 in the previous year. Income from continuing operations for the fiscal year 2021 was $5,153,000 compared to a loss of $9,823,000 in the COVID impacted year of 2020. Net sales in the fourth quarter of 2021 were $89,225,000 compared to $75,515,000 in the fourth quarter of the prior year. The net loss on the fourth quarter of 2021 was $6,138,000 with a loss of $3,949,000 from continuing operations. This compares to a loss of $317,000 in the fourth quarter of 2020 with a loss of $154,000 from continuing operations. The loss in the fourth quarter of 2021 was heavily impacted by a deferral of income to the LIFO reserve as the result of the inflationary impact on inventory costs.

Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, “During 2021, we were impacted by three major events in addition to the challenging industry conditions.

In mid-April, we were the target of a ransomware attack that at first brought our operations and communications to a halt. Fortunately, we were not totally compromised and over several weeks, we were able to restore order entry, operations and shipping first on a limited basis then to a more normal level. We did, however, lose a significant amount of data and programs which has continued to impact the timeliness of getting administrative things done. This disruption did bring out the best from our associates who worked many long hours to lessen the impact of the ransomware attack on our customers, our associates and the Company.

Second, was the announcement by Invista that the STAINMASTER brand was being sold to Lowe’s. The actions taken by Invista since this announcement have made it clear to us that they will not continue to be a fiber supplier. They continue to raise prices dramatically which ensures products made from Invista fiber are no longer competitive

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The following information was filed by Dixie Group Inc (DXYN) on Thursday, March 10, 2022 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.

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

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
Interest Expense Interest expense decreased $213 thousand in the first quarter of 2022 compared with the first quarter of 2021.
Financial - Expense Highlight
Higher raw material costs had a significant unfavorable impact on our results in the first quarter of 2022.
Other - Other Highlight
We had net payments on our revolving credit facility of $.5 million and net borrowings on notes payable and financing leases of $4.5 million which included a new note payable on buildings (see Note 8).
Revenue - Product Highlight
The sales growth was driven by a strong housing market and high residential remodeling activity.
Other - Other
Such benefits, if recognized, would...Read more
Financial - Expense
The expenses in the first...Read more
Revenue - Product
Increased net sales was driven...Read more
Financial - Income
Table of Contents 22 Other...Read more
Financial - Expense
We incurred significant and unsustainable...Read more
Financial - Expense
Accounts payable and accrued expenses...Read more
Other - Other
The Company is in a...Read more
Revenue - Product
Three Months Ended March 26,...Read more
Other - Other
The differences between the two...Read more
Other - Other
Significant additional cash expenditures above...Read more
Financial - Expense
The higher costs in the...Read more
Other - Other
Inventories increased $3.2 million as...Read more
Other - Other
There can be no assurance...Read more
Other - Other
We focus primarily on the...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: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32: Section 1350 Certification

Ticker: DXYN
CIK: 29332
Form Type: 10-Q Quarterly Report
Accession Number: 0000029332-22-000085
Submitted to the SEC: Mon May 09 2022 2:39:00 PM EST
Accepted by the SEC: Mon May 09 2022
Period: Saturday, March 26, 2022
Industry: Carpets And Rugs