Dixie Group Inc (DXYN) 10-Q Quarterly Report May 2023

•Operating income in the first quarter of 2023 was $306 thousand compared to an operating loss of $2.2 million in the first quarter of 2022. The operating income in the current quarter included $1.1 million in expenses related to facility consolidations.

DALTON, GEORGIA (May 4, 2023) -- The Dixie Group, Inc. (NASDAQ: DXYN) today reported financial results for the quarter ended April 1, 2023. For the first quarter of 2023, the Company had net sales of $67,084,000 as compared to $77,575,000 in the same quarter of 2022. Operating income was $306,000 compared to a loss of $2,247,000 in the first quarter of 2022. The operating income in 2023 included expenses totaling $1,050,000 related to facility consolidations. The net loss from continuing operations in the first quarter of 2023 was $1,551,000 or $0.11 per diluted share. In 2022, the net loss from continuing operations for the first quarter was $3,343,000 or $0.22 per diluted share.

Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, “Our results from the first quarter reflected the positive impact of the restructuring efforts we initiated in 2022. Although net sales in the first quarter of 2023 were 14% below the same period in the prior year, we had strong gross margins driven by more efficient operations from our manufacturing plants during the quarter. A significant factor in the year over year sales decline was a loss of volume in the mass merchant channel, with Lowe’s strategy shifting toward lower price points. Excluding our mass merchant sales, net sales were down 7% over prior year. This decline in year over year sales was primarily the result of high inflation and increased interest rates impacting consumer confidence and demand in the first quarter of 2023.

During the first quarter, we celebrated the 20th anniversary of Dixie Home and created a fresh new look including a new logo and a subtle shift in the brand name to “DH Floors”. Within DH Floors, we began our launch of the Elements Collection, made with Durasilk™ solution dyed polyester, staying true to the DH Floors brand promise of “Affordable Fashion”.

In our higher-end brands, we launched 21 new styles to kick off the second-year plan of our decorative segment. This includes eight new styles in Décor by Fabrica, seven in 1866 by Masland, and six in our new 1866 All Seasons Collection. We have an additional 21 new decorative styles to be launched during the second and third quarter this year. In our traditional soft surface categories for Masland and Fabrica, we continued our development of the EnVision® Nylon and EnVisionSD® Pet Solutions product lines, with two new styles in the first quarter and seven additional styles to be launched in the coming months.

In our hard surface segment, we expanded our distribution of key collections, which were launched into the market late last year. This includes our Boardwalk collection featuring lighter colors, clean visuals, and a new rolled-edge

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The following information was filed by Dixie Group Inc (DXYN) on Thursday, May 4, 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-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
The lower expense dollars in the first quarter of 2023 as compared to the first quarter of 2022 were primarily due to lower samples and marketing.
Revenue - Product Highlight
An Increase in accounts receivable used $5.1 million as a result of higher sales volume during the last half of the quarter.
Financial - Income Highlight
The effective income tax rate for the three months ending April 1, 2023 was 0.85% compared with a benefit rate of 0.60% for the three months ending March 26, 2022.
Other - Other Highlight
Such benefits, if recognized, would affect our effective tax rate.
Financial - Earnings
The decision, in the fourth...Read more
Financial - Earnings
Improved operating margins as the...Read more
Other - Other
We are in a net...Read more
Other - Other
Significant additional cash expenditures above...Read more
Other - Other
A decrease in other assets...Read more
Revenue - Product
There can be no assurance...Read more
Financial - Expense
The expenses in the first...Read more
Financial - Expense
As part of our evaluation,...Read more
Financial - Income
Income Tax Provision (Benefit) We...Read more
Other - Other
We had net borrowings on...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 31.1: 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: 0000029332-23-000040
Submitted to the SEC: Fri May 05 2023 1:21:27 PM EST
Accepted by the SEC: Fri May 05 2023
Period: Saturday, April 1, 2023
Industry: Carpets And Rugs