Core Points - Dixie Gold Inc. has filed its management information circular and related materials for the upcoming annual general and special meeting of shareholders scheduled for January 22, 2026 [1][2] - The meeting will address ordinary business items such as electing directors and appointing an auditor, as well as special business regarding the company's listed status [2] - The Meeting Circular and related materials are available on SEDAR+ [3] Company Overview - Dixie Gold Inc. is a publicly traded junior exploration company with a portfolio of mining-related interests in Canada [4]

Core Viewpoint - Dixie Gold Inc. has successfully leveraged recent divestment proceeds to significantly expand its Soo East Copper Project, more than doubling its scale and enhancing its claim position in an emerging copper exploration area near Sault Ste. Marie, Ontario [1][2]. Project Expansion - The Soo East Copper Project has expanded from 137 mining claims covering approximately 3,013 hectares to 316 mining claims covering approximately 6,948 hectares [3]. - The additional mining claims were acquired on a royalty-free basis, providing the company with increased project-level flexibility [3]. Acquisition and Market Context - Dixie Gold's management has completed surface rights notices related to the expansion area, which is a customary procedure for such acquisitions [4]. - QcX Gold Corp. has recently acquired mining claims adjacent to Dixie Gold's project for over 1.5 million dollars, indicating strong market interest in the region [6][7]. Historical Context and Exploration Potential - The initial project area acquisition was informed by a high-grade copper discovery at a nearby project, which has generated significant market interest [8][9]. - Historical exploration information from the 1960s indicates that the area was of interest to major mining companies, highlighting the exploration potential of the Soo East Copper Project [11][14]. Ongoing Development - Dixie Gold has begun work to develop prioritized exploration targets within the project area since acquiring the original position [10]. - The company is awaiting the release of pending assays from Sterling Metals, which are expected to provide further insights into the region's potential [15].

Core Insights - Winn-Dixie is expanding its in-store Amazon return kiosks to 68 additional locations across 23 Florida counties, enhancing convenience for customers [2][3][10] Expansion Details - The expansion follows a successful pilot program at 20 stores in the greater Jacksonville area, indicating strong customer interest and usage [3][4] - The new locations will allow customers to return eligible Amazon items without needing shipping boxes, tape, or labels, streamlining the return process [5] Customer Engagement - Customers using the kiosks will receive a $10 off $50 coupon through the Winn-Dixie Rewards app after completing a return, incentivizing usage [6] - The collaboration with Amazon aims to provide a seamless returns experience, reinforcing customer loyalty and convenience [4][9] Online Grocery Shopping - Winn-Dixie has introduced an online grocery shopping option on Amazon, offering over 16,000 items with delivery available in select areas [7][8] - Both Prime and non-Prime customers can enjoy free delivery on orders over $25, enhancing the value proposition for shoppers [9] Strategic Focus - This initiative marks a renewed commitment by Winn-Dixie to enhance the shopping experience in Florida and southern Georgia, focusing on convenience-driven services [10]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net sales of $62.4 million, a decrease from $64.9 million in Q3 2024, indicating a decline of approximately 3.9% year-over-year [2] - The operating loss for Q3 2025 was $2.0 million, slightly improved from an operating loss of $2.1 million in Q3 2024 [2] - The net loss from continuing operations was $4.0 million, or $0.28 per diluted share, compared to a net loss of $3.7 million, or $0.26 per diluted share in the same quarter of the previous year [2] - Gross margins were reported at 24.8%, slightly up from 24.6% in Q3 2024, while year-to-date margins improved to 27% from 25.7% [4] Business Line Data and Key Metrics Changes - Soft surface net sales were down less than 1% year-over-year, outperforming the industry which declined approximately 4% in Q3 [11] - The hard surface segment saw net sales increase over 17% year-over-year for the first nine months [12] - The company introduced new products in the third quarter, including two new Duracil polyester carpet styles and six new decorative carpet styles, contributing to positive growth in high-end segments [11] Market Data and Key Metrics Changes - The flooring industry has faced a downturn, with a reported 30% decline in units over the past three years due to low home sales and high housing prices [9] - The company noted that residential remodeling is a primary driver of sales, as flooring is often replaced before homes are listed or after purchase [9] Company Strategy and Development Direction - The company has implemented a profit improvement plan aiming for $10 million in cost reductions, with 90% of the plan expected to be in place by year-end [10] - The focus remains on high-end customer service, design-focused product introductions, and operational excellence to navigate industry challenges [12] - The company has reduced costs by nearly $60 million over the past three years through restructuring and operational efficiencies [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of declining interest rates and higher home prices on flooring purchases [13] - The company is closely monitoring market conditions and is prepared to take additional financing actions if necessary [22] - Management highlighted the importance of managing working capital and minimizing capital expenditures to maintain liquidity [10][22] Other Important Information - The company has entered into a memorandum of understanding to settle two PFAS-related lawsuits, with an estimated liability recorded in Q3 results [12][13] - Legal expenses related to these lawsuits are included in administrative expenses, and some of these costs are not expected to recur in the next quarter [19][20] Q&A Session Summary Question: Impact of price increases on future quarters - Management indicated that the price increases implemented in late September and October would have a muted impact in Q4 but are expected to contribute approximately $6 million in the following year [16] Question: Performance trends in September and October - Management noted that their business typically strengthens in October, with a run rate 12% above Q3, aligning closely with the previous year [17] Question: Clarification on cost reductions - The $10 million in cost reductions mentioned is incremental to previous reductions and includes the impact of price increases [18] Question: Liquidity and financing strategies - Management expressed comfort with current liquidity levels but is considering additional financing options to cushion against potential market fluctuations [21][22]

Financial Performance - For Q3 2025, net sales were $62.4 million, a decrease of 3.9% from $64.9 million in Q3 2024[2] - The operating loss for Q3 2025 was $2.025 million, slightly improved from a loss of $2.107 million in Q3 2024[2] - The net loss from continuing operations for Q3 2025 was $3.998 million, or $0.28 per diluted share, compared to a net loss of $3.729 million, or $0.26 per diluted share in Q3 2024[2] - For the first nine months of 2025, net sales totaled $193.9 million, down 3.3% from $200.6 million in the same period of 2024[3] Cost Management - The company implemented a profit improvement plan targeting over $10 million in cost reductions and operational efficiencies for FY 2026[5] - Selling and administrative expenses decreased by 6.8% year over year to $16.4 million in Q3 2025, representing 26.2% of net sales[12] Sales Growth - The average weekly order entry rate for the first month of Q4 2025 was 12% higher than the average rate in Q3 2025[4] - The DuraSilk™SD collection showed strong growth, contributing to market share gains in the polyester segment[7] - In the hard surface segment, net sales for the Fabrica wood program increased by 7.4% year over year for the first nine months of 2025[8] Legal Matters - The company recorded an estimated liability for proposed settlements related to PFAS lawsuits during Q3 2025[14]

Core Points - The Dixie Group, Inc. will hold a conference call to discuss its 2025 Third Quarter Earnings Release [1] Company Information - The conference call is scheduled for Wednesday, November 12, 2025, at 10:30 a.m. Eastern Time [1]

Financial Data and Key Metrics Changes - The gross profit margin for Q2 2025 was 29.2% of sales, an increase from 28.1% in Q2 2024 [2][3] - Operating income in Q2 2025 was $3.2 million, compared to $2.3 million in the same period of the prior year [2] - Net income for Q2 2025 was $1.2 million, up from $600,000 in Q2 2024 [3] - Selling and administrative expenses decreased by $600,000 or 3.4% year over year [5] Business Line Data and Key Metrics Changes - Soft surface sales remained relatively flat year over year, while the industry experienced a decline of approximately 7% [4] - The DuraSilk collection in soft surface products continued to gain market share, contributing to strong sales in decorative products [4][12] - The hard surface business, particularly the high-end Fabrica wood program, saw growth of nearly 10% in Q2 [11] Market Data and Key Metrics Changes - The flooring industry faced weak market conditions due to high interest rates and low consumer confidence, impacting sales negatively [4][10] - Existing home sales declined to approximately 4 million units, contributing to the challenging environment [10] Company Strategy and Development Direction - The company has implemented a cost reduction plan aimed at saving $12.6 million for the year, with approximately half achieved in the first six months [3][28] - Investments have been made in growth initiatives, particularly in hard surfaces and decorative offerings, to enhance market share [11][12] - The company is focused on maintaining selling and marketing expenses to support new product introductions [5] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges in the flooring business but expressed optimism about future market improvements as consumer confidence and mortgage rates are expected to eventually rise [15] - The company believes it is well-positioned to take advantage of market dynamics when conditions improve, citing historical trends following economic downturns [15][16] Other Important Information - The net inventory balance at the end of Q2 2025 was $67.4 million, down from $76.1 million in the same period of the previous year [7] - The company plans to maintain capital expenditures at approximately $800,000 for 2025 [9] Q&A Session Summary Question: Impact of interest rate drops on sales - Management indicated that while a reduction in mortgage interest rates would positively impact sales, a definitive percentage increase could not be provided [18] Question: Lag time for sales increase after interest rate drops - Management acknowledged a lag time, noting that consumer confidence would also play a significant role in the speed of recovery [19] Question: Impact of tariffs on gross margin - Management confirmed that approximately 85% of sales are not impacted by tariffs, and price increases implemented have covered the costs associated with tariffs [22][23] Question: Cost of goods sold and raw material inputs - Management reported no inflation in raw materials yet, with some reductions helping to improve gross margins [25] Question: Incremental savings from cost savings program - Management anticipates achieving the planned $12.6 million in savings, with approximately half already realized [28][29] Question: Performance of hard flooring business - Management noted that the high-end wood segment performed well, while the luxury vinyl tile products faced more challenges due to competition [30][31]

[The Dixie Group Q2 2025 Earnings Release](index=1&type=section&id=The%20Dixie%20Group%20Q2%202025%20Earnings%20Release) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported slightly lower sales but significantly improved operating and net income for Q2 2025, driven by better margins and cost controls Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $68,573,000 | $70,507,000 | -2.7% | | Operating Income | $3,189,000 | $2,295,000 | +38.9% | | Net Income (Continuing Ops) | $1,254,000 | $667,000 | +88.0% | | Diluted EPS (Continuing Ops) | $0.08 | $0.04 | +100.0% | First Half 2025 vs First Half 2024 Performance | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $131,563,000 | $135,761,000 | -3.1% | | Operating Income | $3,200,000 | $1,437,000 | +122.7% | | Net Loss (Continuing Ops) | ($328,000) | ($1,743,000) | +81.2% improvement | | Diluted EPS (Continuing Ops) | ($0.02) | ($0.12) | +83.3% improvement | [Management Commentary and Business Operations](index=1&type=section&id=Management%20Commentary%20and%20Business%20Operations) Management attributes strong Q2 profitability to cost reductions, with soft surface sales outperforming the market despite challenges in hard surfaces [Overall Performance and Cost Management](index=1&type=section&id=Overall%20Performance%20and%20Cost%20Management) The company achieved a **$1.2 million net income** in Q2, driven by improved margins and a **$12.6 million** annual cost reduction plan - Achieved a net income of **$1.2 million** in the second quarter, despite lower year-over-year sales volume[4](index=4&type=chunk) - Operating margins improved to **29.2% of net sales** compared to 28.1% in the same quarter of the prior year[4](index=4&type=chunk) - A cost reduction plan is currently estimated to produce **$12.6 million in reduced spending** year over year, contributing to favorable results[4](index=4&type=chunk) [Segment Performance and Product Launches](index=1&type=section&id=Segment%20Performance%20and%20Product%20Launches) Soft surface sales outperformed the declining market, while hard surface growth in wood was offset by challenges in the TRUCOR® segment - Soft surface sales were relatively flat year-over-year, outperforming the broader industry which is believed to have **declined by 7%**[5](index=5&type=chunk) - Key growth drivers in soft surfaces included the **DuraSilk™ SD collection** and the high-end decorative segment[5](index=5&type=chunk) - The hard surface segment experienced **over 10% year-over-year growth** in net sales of Fabrica wood products, but the TRUCOR® segment faced challenges due to low inventory and supply chain issues[8](index=8&type=chunk) - The company launched **five new soft surface introductions** and **five new hard surface collections** during the second quarter to stimulate sales[6](index=6&type=chunk)[9](index=9&type=chunk) [Marketing and Outlook](index=2&type=section&id=Marketing%20and%20Outlook) The company is leveraging digital marketing and cost controls to navigate market headwinds while preparing for future demand - Continued digital marketing partnerships with Roomvo and Broadlume are showing promising results in lead generation, online sample ordering, and room visualizations[10](index=10&type=chunk) - Management acknowledges that the industry continues to be negatively impacted by **inflationary pressures, high interest rates, and low consumer confidence**[11](index=11&type=chunk) - The company believes it has taken appropriate actions through cost reductions and operational improvements to manage the current slowdown and optimize returns when market conditions improve[11](index=11&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) Improved operating margins and lower expenses boosted profitability, while the balance sheet reflects stable inventory and adequate liquidity [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Q2 operating margin improved to **29.2%** due to efficiencies and cost reductions, with selling and administrative expenses also declining Operating Margin Comparison | Period | 2025 | 2024 | | :--- | :--- | :--- | | Q2 | 29.2% | 28.1% | | H1 | 28.1% | 26.2% | Selling & Administrative Expenses | Period | 2025 | 2024 | | :--- | :--- | :--- | | Q2 | $16.8 million | $17.4 million | | H1 | $33.7 million | $33.7 million | [Balance Sheet, Cash Flow, and Liquidity](index=2&type=section&id=Balance%20Sheet%2C%20Cash%20Flow%2C%20and%20Liquidity) The balance sheet shows stable inventory and a slight debt increase, with **$13.1 million** available under the senior credit facility - Receivables increased by **$5.6 million** and inventory was slightly higher at **$67.4 million** compared to fiscal year-end 2024[13](index=13&type=chunk) - Debt increased by **$1.1 million** in the first six months of 2025, with interest expense rising to **$1.9 million** in Q2 from $1.6 million in Q2 2024 due to higher interest rates[13](index=13&type=chunk) - Availability under the senior lending facility was **$13.1 million** at the end of Q2 2025, subject to a $6.0 million minimum excess availability requirement[13](index=13&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated statements of operations and balance sheets for Q2 and H1 2025 [Consolidated Condensed Statements of Operations](index=3&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) The statement details revenues, costs, and profits for Q2 and H1 2025, showing lower sales but higher quarterly operating income Q2 Statement of Operations Highlights (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | NET SALES | $68,573 | $70,507 | | GROSS PROFIT | $20,016 | $19,813 | | OPERATING INCOME | $3,189 | $2,295 | | INCOME FROM CONTINUING OPERATIONS | $1,254 | $667 | | NET INCOME | $1,160 | $603 | H1 Statement of Operations Highlights (in thousands) | Account | H1 2025 | H1 2024 | | :--- | :--- | :--- | | NET SALES | $131,563 | $135,761 | | GROSS PROFIT | $36,918 | $35,622 | | OPERATING INCOME | $3,200 | $1,437 | | LOSS FROM CONTINUING OPERATIONS | ($328) | ($1,743) | | NET LOSS | ($537) | ($1,891) | [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) The balance sheet presents the company's financial position as of June 28, 2025, showing an increase in total assets and liabilities Balance Sheet Highlights (in thousands) | Account | June 28, 2025 | Dec 28, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $4,386 | $19 | | Inventories, net | $67,381 | $66,852 | | TOTAL CURRENT ASSETS | $106,623 | $95,839 | | TOTAL ASSETS | $188,383 | $175,872 | | **LIABILITIES & EQUITY** | | | | Accounts payable | $26,319 | $14,884 | | Current portion of long-term debt | $57,311 | $53,818 | | TOTAL CURRENT LIABILITIES | $104,282 | $88,719 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $188,383 | $175,872 |

Core Viewpoint - Dixie Gold Inc. has commenced a summer 2025 drill program at the Preston Uranium Project JV, with a budget of approximately C$3,500,000, targeting multiple high-priority uranium sites [1][5][3] Group 1: Project Update - The drill program at the Preston Uranium Project JV is being managed by Orano Canada Inc. and is expected to cover 6,000m to 7,000m [1] - Dixie Gold holds a 21% interest in the Preston Uranium Project JV, which is anticipated to decline after the drill program [3] - The project area spans approximately 49,635 hectares, adjacent to NexGen Energy Ltd.'s Rook-1 project [1] Group 2: Financial Considerations - The planned all-in budget for the drill program is approximately C$3,500,000 [1] - The company aims to manage project-level dilution rather than company-level equity dilution to maintain shareholder value [3][9] - Future funding requirements are expected to exceed the company's current working capital, necessitating a reassessment of its interests in the Preston Uranium Project JV [5][9] Group 3: Exploration Strategy - Dixie Gold is focused on maintaining a portfolio of exploration interests that provide opportunities for shareholders [7] - The company is monitoring other regional activities, including results from Ramp Metals Inc. and Kinross Gold Corporation, which may influence future project decisions [10][14] - The management emphasizes a balanced approach to exploration and equity dilution, considering the high-risk nature of early-stage mineral exploration [20]

Summary of Key Points Core Viewpoint - Ryan Kalt has increased his stake in Dixie Gold Inc. by acquiring an additional 806,000 common shares, representing 2.54% of the company's total shares, through open market transactions [2][3]. Company Ownership - Following the recent acquisition, Ryan Kalt now owns a total of 12,489,875 common shares of Dixie Gold, which constitutes approximately 39.35% of the company's currently issued and outstanding common shares [3]. Future Intentions - Mr. Kalt and/or his corporate entities may consider acquiring more securities of Dixie Gold or selling existing securities based on market conditions and other relevant factors, although no specific plans have been disclosed [5].