Dixie Group Inc (DXYN) 10-K Annual Report March 2023

•The plan for the consolidation of our east coast facilities has resulted in a 24% reduction of associates and is expected to result in estimated savings of over $25 million.

For the year 2022, net sales from continuing operations for the Company were $303,570,000 as compared to $341,247,000 in the year 2021. The net loss on the year 2022 was $35,079,000 compared to a net income of $1,616,000 in the previous year. Loss from continuing operations for the fiscal year 2022 was $33,415,000 compared to an income of $5,153,000 in the year 2021. Net sales in the fourth quarter of 2022 were $70,535,000 compared to $89,225,000 in the fourth quarter of the prior year. The net loss on the fourth quarter of 2022 was $18,454,000 with a loss of $17,681,000 from continuing operations. This compares to a loss of $6,138,000 in the fourth quarter of 2021 with a loss of $3,949,000 from continuing operations.

Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, “Our fiscal year of 2022 was severely impacted by several negative factors specific to our Company and a general downturn that impacted our industry as a whole throughout most of the year.

Beginning in the mid second quarter of 2022, the flooring industry started to see a decrease in demand that persisted through the remainder of the year. High inflation and rising interest rates negatively impacted consumer confidence and lowered discretionary spending. Home sales and residential remodeling both declined in the second half of the year.

Our net sales in 2022 also reflected the year over year loss of approximately $23 million in sales with our largest mass merchant retail customer. Our sales with this customer ended in the first quarter of 2022 as the result of their change in strategy to focus on lower price point products. We also experienced supply chain problems and issues with our sample vendors which created delays in our new product introductions in 2022, particularly within our new decorative line and our hard-surface products. We incurred the cost of introducing these products in 2022 but, due to the products being release late in the year, we had little to no sales activity to offset these costs.

-MORE-

The following information was filed by Dixie Group Inc (DXYN) on Thursday, March 2, 2023 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.

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

https://last10k.com/sec-filings/report/29332/000002933223000015/dxyn-20221231.htm

View differences made from one year 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-K Annual 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 2023 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

Earnings

Expense

Income

Product

Other

Inside Dixie Group Inc's 10-K Annual Report:

Financial - Earnings Highlight
Inflationary pressure also negatively impacted our gross profit margins in 2022.

Financial - Expense Highlight
The expenses in 2021 were primarily related to residual expense activity from the Profit Improvement Plan.
Other - Other Highlight
In 2022, we increased our valuation allowance by $8.5 million related to our net deferred tax asset and specific federal and state net operating losses and federal and state tax credit carryforwards.
Financial - Expense Highlight
The Company completed its conversion to new lower cost raw materials from multiple suppliers in the first part of the third quarter of 2022, but gross profit margins were negatively impacted throughout 2022 as we processed through the higher cost inventory produced in prior periods.
Other - Other Highlight
Fair Value of Financial Instruments At December 31, 2022, we had no assets or liabilities measured at fair value that fall under a level 3 classification in the hierarchy (those subject to significant management judgment or estimation).
Financial - Income
Our effective income tax rate...Read more
Financial - Expense
The facility consolidation expenses incurred...Read more
Revenue - Product
We determine revenue recognition through...Read more
Financial - Earnings
At our election, advances of...Read more
Financial - Income
Our effective income tax rate...Read more
Financial - Expense
LIQUIDITY AND CAPITAL RESOURCES During...Read more
Financial - Income
Table of Contents 17 Income...Read more
Financial - Earnings
Gross profit, as a percentage...Read more
Other - Other
At December 31, 2022, we...Read more
Financial - Earnings
In addition, our gross profit...Read more
Other - Other
Effective October 28, 2020, we...Read more
Other - Other
Effective October 29, 2020, we...Read more
Financial - Income
We evaluate the recoverability of...Read more
Other - Other
Significant additional cash expenditures above...Read more
Other - Other
Although our estimates have not...Read more
Revenue - Product
There can be no assurance...Read more
Financial - Expense
Higher investment in samples to...Read more
Financial - Expense
As part of our evaluation,...Read more
Financial - Income
Our effective tax rate is...Read more
Other - Other
The weighted-average interest rate on...Read more
Other - Other
Recent Accounting Pronouncements See Note...Read more
Revenue - Product
Estimated amounts are included in...Read more
Other - Other
Borrowings on notes payable, net...Read more
Other - Other
We focus primarily on the...Read more
Other - Other
As a result, actual amounts...Read more
Revenue - Product
The nature of our business...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 16: Letter Regarding Change In Certifying Accountant

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

Exhibit 97: Ex-97

Ticker: DXYN
CIK: 29332
Form Type: 10-K Annual Report
Accession Number: 0000029332-23-000015
Submitted to the SEC: Wed Mar 08 2023 4:22:44 PM EST
Accepted by the SEC: Wed Mar 08 2023
Period: Saturday, December 31, 2022
Industry: Carpets And Rugs