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].

Exhibit 99.1 May 2025 Investor Presentation Contact: Allen Danzey CFO The Dixie Group Phone: 706-876-5865 allen.danzey@dixiegroup.com Forward Looking Statements The Dixie Group, Inc. 2 • Statements in this presentation which relate to the future, are subject to risk factors and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Such factors include the levels of demand for the products produced by the Company. Other factors that could ...

Dixie Group (DXYN) Q1 2025 Earnings Call May 09, 2025 10:00 AM ET Company Participants Daniel Frierson - Chairman & CEOAllen Danzey - VP & CFO Conference Call Participants None - Analyst Operator Good day, and welcome to the Dixie Group Incorporated's twenty twenty five First Quarter Earnings Conference Call. Today's call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to the Chairman and Chief Executive Officer, Dan Frierson. Please go ahead. Daniel ...

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net sales of $62.99 million, a decrease of 3.5% from $65.25 million in Q1 2024 [2][3] - The operating income improved to $11,000 in Q1 2025 from an operating loss of $857,000 in Q1 2024 [2][5] - The net loss from continuing operations was $1.58 million or $0.11 per diluted share, compared to a net loss of $2.41 million or $0.16 per diluted share in the same quarter of 2024 [3] Business Line Data and Key Metrics Changes - Sales of soft floor covering products outperformed hard surface products, with continued market share gains in the soft surface category [3] - Gross margins improved to $16.90 million or 26.8% of net sales, compared to $15.80 million or 24.2% of net sales in the prior year [4] Market Data and Key Metrics Changes - The industry is experiencing weak market conditions due to low existing home sales and lower consumer confidence [3] - The residential remodeling market continues to face a multiyear slump, with uncertainty regarding when market dynamics will change [11] Company Strategy and Development Direction - The company is focused on creating differentiated styles for the residential market, emphasizing color, pattern, and texture [10] - Efforts are being made to minimize expenses, reduce overhead costs, and improve gross margins [12] - The company has closed on a new $75 million senior credit facility to support operations and manage costs effectively [7][12] Management's Comments on Operating Environment and Future Outlook - Management noted that low consumer confidence was impacted by uncertainty around tariff increases, with some industry players announcing price increases to mitigate these impacts [9] - The company believes that actions taken during the current difficult environment will position it well for an eventual market upturn [13] Other Important Information - The company has seen improvements in operations, including productivity, quality, and raw material utilization [11] - The first quarter trade show showcased 25 new styles of carpet and eight hard surface collections, which were well received [10] Q&A Session Summary Question: Is the stock buyback program still in effect? - The stock buyback program is no longer in effect as it was ceased during the latter part of the previous year [16] Question: Are there signs of consolidation in the industry? - There has not been much consolidation at the manufacturing level, although some smaller retailers have gone out of business [17] Question: Have buying habits changed between big box stores and boutique retailers? - Premium products are performing better than the market overall, with the Fabrica brand doing exceptionally well [18]

Financial Data and Key Metrics Changes - In Q4 2024, net sales were approximately $64.4 million, down from $66.7 million in Q4 2023 [2] - The net loss for Q4 2024 was $7.2 million compared to a net loss of $3.2 million in Q4 2023, which included an $8.2 million gain on the sale of assets [3] - For the fiscal year 2024, net sales were $265 million, down 4.1% from $276 million in 2023 [4] - The net loss from continuing operations for 2024 was $12.2 million or $0.83 per diluted share, compared to a net loss of $1.95 million or $0.13 per diluted share in 2023 [3] - Gross profit margin in 2024 was 24.7% of net sales, down from 26.7% in the prior year [5] Business Line Data and Key Metrics Changes - Selling and administrative expenses in 2024 were reduced by $4.3 million or 5.8% of net sales due to planned cost-cutting initiatives [5] - Facility consolidation expenses were $2.5 million lower than the prior year, including additional write-downs of idled assets [6] - The company reduced costs by over $35 million in 2023 and further reduced costs by over $10 million in 2024 [11] Market Data and Key Metrics Changes - Existing home sales have declined dramatically from over 6 million homes per year to under 4 million, impacting the industry significantly [9] - The actual square yards of carpet chips have decreased by 25% over the last three years [10] Company Strategy and Development Direction - The company has focused on cost reduction and restructuring to align capacity with current volume, reducing the number of associates by approximately 28% over the last three years [11] - Investment in extrusion equipment aims to provide lower-cost raw materials and ensure a consistent supply [12] - The company is expanding its product offerings, including hard surface products under the TrueCore brand and enhancing its high-end wood program [13][14] Management Comments on Operating Environment and Future Outlook - The management noted that the industry has been in a recession for several years, with existing home sales at the lowest point since 1995 [9] - The company anticipates further cost reductions exceeding $10 million in 2025 and continues to manage working capital effectively [11][17] - The impact of tariffs on imported products is uncertain, but the company is prepared to take appropriate actions as needed [16] Other Important Information - The company closed a new $75 million senior credit facility, enhancing its financial position [8] - The company has maintained low capital expenditures except for investments in extrusion equipment [11] Q&A Session Summary Question: What percent of hard surfaces is imported from China? - Very little is imported from China, with imports coming from Thailand, Cambodia, Vietnam, and some from Europe [19] Question: How quickly can the company pass along price increases due to tariffs? - It is unclear, but it is likely that price increases will be passed on quickly as tariffs become impactful [22] Question: What was the amount of the Q4 inventory write-down? - The overall reduction in inventory was $9.8 million, with additional reserves made for excess inventory [25][26] Question: How soon will the company achieve the $10 million cost reduction? - The company is very close to that level today, with most of the reductions planned months ago [27] Question: Is there potential benefit from tariffs for the soft side of the business? - It depends on where the tariffs end up, but imports are not a major factor for the domestic tufted carpet business [34] Question: Is the full amount of $12.2 million available to borrow under the new credit facility? - Yes, the $12.2 million includes the $6 million excess availability [35]

Financial Performance - In Q4 2024, net sales were $64.39 million, a decrease of 3.8% from $66.67 million in Q4 2023[2] - The net loss for Q4 2024 was $7.20 million, compared to a net income of $3.16 million in Q4 2023, which included an $8.20 million gain on asset sale[2] - For the fiscal year 2024, net sales totaled $265.03 million, down 4.1% from $276.34 million in 2023[2] - The gross margin for fiscal year 2024 was 24.7%, down from 26.7% in 2023, primarily due to under absorbed fixed costs and higher utility and medical expenses[10] Cost Management - The company achieved a cost reduction plan exceeding $10 million in 2025, alongside a planned reduction in inventory[7] - Selling and administrative expenses decreased by $4.3 million or 5.8% in 2024 compared to 2023[10] Capital Expenditures and Financing - Capital expenditures in 2024 were $2.1 million, an increase from $1.0 million in 2023[11] - The company closed a new $75 million senior credit facility in February 2025, replacing the previous facility[9] Inventory Management - Net inventories decreased by $9.4 million or 12.3% from the fiscal year end 2023 due to planned reductions and write downs[11] Product Development - The company experienced growth in higher-end product offerings, particularly in decorative programs and nylon carpet[5]

Financial Performance - Net sales for the fiscal year ended December 28, 2024, were $265.0 million, a decrease of 4.1% compared to $276.3 million in 2023[106][108] - Gross profit decreased by 11.3% to $65.5 million, with gross profit as a percentage of net sales dropping from 26.7% in 2023 to 24.7% in 2024[106][109] - Operating loss for 2024 was $5.9 million, a significant decline from an operating income of $5.0 million in 2023, primarily due to increased costs and lower sales volume[106][113] - The net loss for 2024 was $13.0 million, or $0.88 per diluted share, compared to a net loss of $2.7 million, or $0.18 per diluted share, in 2023[106][118] Cash Flow and Debt - Cash provided by continuing operations was $3.6 million, with a reduction in inventories generating $9.4 million[120] - The company had $50.0 million of outstanding indebtedness under its senior credit facility as of December 28, 2024, maturing on October 30, 2025[123] - On February 25, 2025, the company entered into a new three-year $75.0 million senior secured credit facility with MidCap Financial IV Trust[123] - The unused borrowing availability under the revolving credit facility was $9.9 million as of December 28, 2024[129] - The company entered into a $10.0 million principal amount USDA Guaranteed term loan with a minimum interest rate of 5.00% and a term of 25 years[130] - The company also secured a $15.0 million principal amount USDA Guaranteed term loan with a minimum interest rate of 5.00% and a term of 10 years[131] Expenses and Income - Selling and administrative expenses decreased to $69.9 million in 2024 from $74.1 million in 2023, representing 26.4% of net sales[106][110] - Other operating income was a net expense of $200 thousand in 2024, compared to income of $9.2 million in 2023 due to the sale and leaseback of the Adairsville distribution center[106][111] Compliance and Valuation - The company received notice from Nasdaq regarding non-compliance with the minimum bid price requirement, leading to delisting from Nasdaq effective October 3, 2024[105][122] - Valuation allowances increased by $3.8 million related to net deferred tax assets and specific federal and state net operating losses for the year ended December 28, 2024[136] - At December 28, 2024, the company had valuation allowances of $24.7 million compared to $21.0 million at December 30, 2023[146] Interest Rates and Liabilities - As of December 28, 2024, the applicable margin on the revolving credit facility was 2.50% for SOFR and 1.50% for Prime due to the fixed charge coverage ratio being below 1.10 to 1.00[127] - The weighted-average interest rate on borrowings outstanding under the revolving credit facility was 7.18% at December 28, 2024, compared to 8.15% for December 30, 2023[128] - Approximately 86% of the company's total debt, amounting to $71,960, was subject to floating interest rates as of December 28, 2024[148] - A one-hundred basis point fluctuation in the variable interest rates applicable to floating rate debt would have an annual pre-tax impact of approximately $720[148] Environmental Liabilities - The company has a reserve of $2.2 million for environmental liabilities associated with discontinued operations as of December 28, 2024[138]

Financial Data and Key Metrics Changes - Net sales in Q2 2024 were $70.5 million, down approximately 4.7% from $74 million in Q2 2023 [2][4] - Gross profit margin improved to 28.1% in Q2 2024 from 26.7% in Q2 2023 [2][4] - Operating income increased to $2.3 million in Q2 2024 from $300,000 in Q2 2023 [2] - Net income from continuing operations was $700,000 in Q2 2024, compared to a net loss of $1.6 million in the same period of the prior year [2][6] - Year-to-date gross margins were 26.2%, slightly down from 26.7% in the prior year [5] Business Line Data and Key Metrics Changes - Net sales from soft surfaces were less than 1% below the prior year, while the industry was down approximately 5% [3] - Hard surface business was down in the range of 15% to 20% for the quarter [18] Market Data and Key Metrics Changes - The housing and home remodeling market is negatively impacted by high interest rates and inflation [3][12] - Existing home sales have decreased from over six million units to below four million, the lowest since 1995 [12] Company Strategy and Development Direction - The company is focused on cost reduction initiatives, with a target of $10 million to $12 million in savings for the year [12] - The extrusion facility is operational and providing cost reductions in nylon fiber, which supports new carpet styles [8][10] - The company launched 18 new carpet styles and six new collections in Q2 2024, completing its new product launches for the year [9][10] Management's Comments on Operating Environment and Future Outlook - Management expects interest rates to decline later this year or early next year, which could improve the industry [12] - The company does not anticipate improvement in Q3 2024, as current performance lags behind last year [13] - Management is optimistic about the leasing of the Saraland facility, which will positively impact income and cash flow [13] Other Important Information - The company completed a 10-year sublease agreement for warehouse space, expected to generate approximately $1.8 million in annual income [2][19] - Selling and administrative expenses were lower in dollars and as a percentage of net sales compared to the prior year due to cost-cutting initiatives [6] Q&A Session Summary Question: Will the new product launches impact SG&A in the back half? - Management indicated that expenses related to sampling activities are spread in line with sales, so the impact will be minimal, but it will positively affect cash flow [14] Question: How much of the $10 million in cost savings has been achieved? - Approximately 35% to 40% of the cost savings have been achieved in the first half, with the remainder expected in the second half [15] Question: Are the gross margins sustainable? - Management confirmed that there were no significant one-time factors affecting the gross margins, indicating they are sustainable at current revenue levels [17] Question: What is the status of the hard surfaces business? - The hard surfaces business was confirmed to be down in the range of 15% to 20%, which is less than 20% of total business [18] Question: Is the $1.8 million in sublease income incremental? - The income is mostly incremental, with some existing lease revenue already in place [19] Question: What is the expected cash CapEx for the back half of the year? - Expected cash CapEx is in the range of $9.2 million to $9.4 million, with $1 million to $1.5 million allocated for general maintenance projects [22]

Financial Performance - Net sales for Q2 2024 were $70.5 million, a decrease of 4.5% from $74.0 million in Q2 2023[2] - Gross profit margin improved to 28.1% in Q2 2024, up from 26.7% in Q2 2023[9] - Operating income increased to $2.3 million in Q2 2024, compared to $0.3 million in Q2 2023[3] - Net income from continuing operations was $0.7 million, or $0.04 per diluted share, compared to a net loss of $1.6 million, or $0.11 per diluted share, in Q2 2023[3] - For the first six months of 2024, net sales were $135.8 million, down 3.8% from $141.1 million in the same period of 2023[4] - Sales in Q3 2024 to date are approximately 5.5% below the comparable period in the prior year[11] Cost Management - The company expects to reduce year-over-year costs by over $10 million in 2024 through cost-saving initiatives[8] New Product Launches - The company launched 18 new carpet styles and 6 new collections with 38 SKUs in Q2 2024, contributing to sales volume[8] Assets and Liabilities - Total assets increased to $198,492,000 as of June 29, 2024, up from $191,169,000 on December 30, 2023, reflecting a growth of approximately 3.4%[15] - Current assets rose to $115,329,000, compared to $112,395,000 at the end of 2023, indicating an increase of about 2.6%[15] - Cash and cash equivalents increased slightly to $83,000 from $79,000, showing a growth of 5.1%[15] - Receivables, net grew to $28,019,000, up from $23,686,000, representing an increase of approximately 18.4%[15] - Total current liabilities increased to $44,813,000 from $39,554,000, marking a rise of about 13.5%[15] - Long-term debt, net rose to $82,699,000, compared to $78,290,000, reflecting an increase of approximately 5.5%[15] - Stockholders' equity decreased to $27,304,000 from $29,291,000, a decline of about 6.8%[15] - Accounts payable increased significantly to $19,371,000 from $13,935,000, indicating a rise of approximately 39.5%[15] - Operating lease liabilities decreased slightly to $24,206,000 from $25,907,000, a reduction of about 6.6%[15] - Inventories, net remained relatively stable at $76,131,000 compared to $76,211,000, showing a negligible change[15] Capital Expenditures - Capital expenditures for the full fiscal year 2024 are planned at $9.4 million[10] Sublease Agreement - A 10-year sublease agreement was completed for warehouse space, expected to generate approximately $1.8 million in annual income[2]

Financial Data and Key Metrics Changes - The company reported net sales of $65.254 million for Q1 2024, a decrease of approximately 2.7% compared to roughly $67 million in the same quarter of the previous year [2][4] - An operating loss of $857,000 was recorded, contrasting with an operating income of $306,000 in Q1 2023 [2] - The net loss from continuing operations was $2.41 million or $0.16 per diluted share, compared to a net loss of $1.551 million or $0.11 per diluted share in Q1 2023 [2] Business Line Data and Key Metrics Changes - The gross profit margin for Q1 2024 was 24.2% of net sales, down from 26.6% in the same quarter of the prior year, primarily due to lower production volumes [6] - Selling and administrative expenses were aligned with the prior year but increased as a percentage of lower net sales, at 25.1% compared to 24.5% in the prior year [7] Market Data and Key Metrics Changes - The overall industry was believed to be down approximately 8%, while the company's net sales were only down 2.7%, indicating better performance relative to the industry [4][5] Company Strategy and Development Direction - The company is focusing on cost reduction, implementing a $10 million cost reduction plan following a successful $35 million reduction last year [15] - New product launches include 14 new carpet styles, with a focus on high-end divisions and a color marketing campaign to enhance consumer engagement [12][13] - The company has begun extruding its own raw materials to reduce costs and ensure supply stability [12] Management's Comments on Operating Environment and Future Outlook - Management expressed that the company is at the bottom of a down cycle but anticipates improvement with lower interest rates in the future [11] - The first quarter is typically the slowest, but there was a noted seasonal improvement in March, with net sales slightly ahead of the same month last year [11] - Management remains cautious about the timeline for significant business improvement due to ongoing high interest rates [20] Other Important Information - The company’s quarter-end receivables increased by $4.5 million, while inventory decreased by $1.2 million, reflecting a strategy to align inventory with demand [8] - The Board of Directors approved a stock repurchase plan of up to $2.8 million, set to begin on or about May 8 [16] Q&A Session Summary Question: How will the company navigate the current environment with high interest rates affecting remodeling activity? - Management acknowledged the challenges posed by high interest rates but emphasized ongoing cost-cutting measures and the potential for profitability despite the environment [20] Question: What is the timeline for the $10 million savings plan? - The $10 million savings will be distributed over the next 12 months, with some impact already seen in the first quarter [25] Question: Any updates on the NASDAQ listing regarding the stock being under $1? - The company has received an extension until September of this year to address the listing deficiency [26]