CONTACT: Allen Danzey
Chief Financial Officer
THE DIXIE GROUP REPORTS FINANCIAL RESULTS FOR 2022
DALTON, GEORGIA (March 2, 2023) -- The Dixie Group, Inc. (NASDAQ: DXYN) today reported financial results for the year ended December 31, 2022.
•Net sales for the fiscal year of 2022 were $304 million, or 11% below the net sales of $341 million in the fiscal year of 2021.
•The net loss for the fiscal year end 2022 was $35.1 million with a $33.4 million loss from continuing operations.
•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.
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.