CONTACT: Allen Danzey
Chief Financial Officer
THE DIXIE GROUP REPORTS RESULTS FOR FIRST QUARTER OF 2022
Highlights from First Quarter 2022 Results (all comparisons are to the prior year first quarter, as adjusted for discontinued operations, unless stated otherwise):
•Net sales from continuing operations increased over the prior year by $4.8 million or 6.6%
•Secured $11 million in long term property refinancing at a fixed interest rate of 3.81%
•Strong order activity throughout the quarter
DALTON, GEORGIA (May 11, 2022)-- The Dixie Group, Inc. (NASDAQ: DXYN) today reported financial results for the quarter ended March 26, 2022. For the first quarter of 2022, the Company had net sales from continuing operations of $77,575,000 and a net loss of $3,357,000 or $0.22 per diluted share. In the first quarter of 2021, as adjusted to reflect the commercial business as discontinued operations, net sales from continuing operations were $72,747,000 and the net loss was $2,028,000 or $0.14 per diluted share.
Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, “During the first quarter of 2022, our net sales increased 6.6% compared with the first quarter of 2021. Order entry surpassed prior year throughout the quarter with the highest growth occurring within our Masland Residential and Fabrica business and within our hard surface products overall. Our Dixie Home business declined due to a shift in strategy by our primary mass merchant customer. Although this change in strategy will continue to negatively impact our Dixie Home business, we have increased our sales in the specialty retail segment by 9% over the prior year, outpacing the market.
In the first quarter of 2022 we experienced a decline in our gross margins primarily due to two major items. First, we were negatively impacted by unprecedented price increases from our primary raw material supplier, coupled with their decision to exit the business. We are working with other suppliers to replace this volume and bring our costs to a more normal level. We expect the conversion to be complete by the end of the second quarter. Second, dramatic increases in ocean freight costs resulted in significant declines in margin on our hard surface business. Fortunately, late in the quarter we began to see a reduction in these freight costs resulting in improved margins for these products.
We are excited about a number of new product offerings introduced during the quarter. We successfully launched our new decorative segment offering introducing 30 new styles under our new brands, 1866 by Masland and Décor by Fabrica. The new offering will include hand tufted, hand loomed, wire wilton, and face to face woven products with fresh looks and on trend colors.
In addition to the launch of our decorative segment offering, we also introduced several new hard surface programs, including TRUCOR Tymbr and Dwellings by Dixie Home. TRUCOR® Tymbr will compete in the high end of the laminate category, and includes a 9.5” wide & 72” long laminate product with excellent water resistance, stunning visuals, and an AC6 scratch resistance rating. Dwellings by Dixie Home, is an engineered wood program which hits mainstream price points and offers beautiful colors and finishes in white oak and hickory. In addition to these new categories, we also have several new innovations in our existing categories planned for introduction to the market in the second quarter. The innovations include: TRUCOR® Boardwalk, a new SPC offering featuring clean visuals, lighter colors, and a new pillowed edge bevel for an authentic look, TRUCOR® Prime Pinnacle, a new
The following information was filed by Dixie Group Inc (DXYN) on Wednesday, May 11, 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.