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]

The Dixie Group, Inc. (NASDAQ:DXYN) Q2 2024 Earnings Conference Call August 8, 2024 10:00 AM ET Company Participants Dan Frierson - Chairman & Chief Executive Officer Allen Danzey - Chief Financial Officer Conference Call Participants Mike Hughes - SGF Capital Dan Frierson I would like to welcome everyone to our Second Quarter Conference Call. I have with me Allen Danzey, our CFO, who will be participating. Our Safe Harbor statement is included by reference to our website and our press release. The good new ...

Exhibit 99.1 CONTACT: Allen Danzey Chief Financial Officer 706-876-5865 allen.danzey@dixiegroup.com THE DIXIE GROUP REPORTS NET INCOME FOR THE SECOND QUARTER OF 2024 DALTON, GEORGIA (August 8, 2024) -- The Dixie Group, Inc. (NASDAQ: DXYN) today reported financial results for the quarter ended June 29, 2024. • Net sales in the second quarter of 2024 were $70.5 million compared to $74.0 million in the same period of the prior year • The gross profit margin for the three months of the second quarter of 2024 wa ...

The Dixie Group, Inc. (NASDAQ:DXYN) Q1 2024 Earnings Conference Call May 2, 2024 10:00 AM ET Company Participants Dan Frierson - Chairman & Chief Executive Officer Allen Danzey - Chief Financial Officer Conference Call Participants Chris Riemenschneider - Morgan Stanley Dan Frierson Welcome everyone to our First Quarter Conference Call. I have with me Allen Danzey, who will be giving you information shortly. Our Safe Harbor statement is included by reference both to our website and press release. For the fi ...

Exhibit 99.1 Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "Our net sales for the quarter were negatively impacted by high interest rates affecting the housing and home remodeling market and the impact on the economy from continued inflation. Overall, our net sales during the quarter were 2.7% below prior year while the industry, we believe, was down approximately 8%. Due to this lower demand, we saw less favorable margins in the first part of the quarter as lowe ...

Financial Performance - Net sales for the fiscal year ended December 30, 2023, were $276.3 million, a decrease of 9.0% compared to $303.6 million in 2022[92]. - Gross profit increased by 37.8% to $73.9 million, with gross profit margin rising to 26.7% from 17.7% in the previous year[92][93]. - Selling and administrative expenses decreased to $74.1 million in 2023 from $76.9 million in 2022, representing 26.8% of net sales[96]. - Operating income improved to $5.0 million in 2023 from an operating loss of $28.2 million in 2022, marking a significant turnaround[99]. - Net loss narrowed to $2.7 million, or $0.18 per diluted share, compared to a net loss of $35.1 million, or $2.32 per diluted share, in 2022[104]. Cash Flow and Investments - Cash provided by continuing operations was $4.2 million, driven by a reduction in receivables and a decrease in inventories[105]. - Net cash provided by investing activities was $15.1 million, primarily from the sale of the Adairsville distribution center[106]. - On December 14, 2023, the company sold its distribution center in Adairsville, Georgia for $11.0 million and completed a sale and leaseback, paying off an existing note of $10.4 million[114]. Debt and Interest - Interest expense increased to $7.2 million in 2023 from $5.3 million in 2022 due to higher interest rates[100]. - The company has $14.1 million of unused borrowing availability under its revolving credit facility as of December 30, 2023[111]. - Approximately 85% of the company's total debt, amounting to $71,494 thousand, is subject to floating interest rates, with a potential annual pre-tax impact of $715 thousand from a 100 basis point fluctuation[131]. - The company has other financing notes with interest rates ranging from 6.34% to 7.84%, due in monthly installments[116]. Tax and Liabilities - The effective income tax rate was a provision of 12.3% in 2023, compared to a benefit of 0.26% in 2022[102][103]. - The company anticipates cash outlays for income taxes during 2024 and 2025 will not exceed $200 thousand due to tax loss carryforwards[120]. - As of December 30, 2023, the company had a net deferred tax liability position of $91 thousand, with valuation allowances of $21.0 million[120]. - The company has a reserve of $2.2 million for environmental liabilities associated with discontinued textile businesses as of December 30, 2023[121]. Compensation and Stock - The total unrecognized compensation expense related to unvested restricted stock awards was $1.1 million as of December 30, 2023, with a weighted-average vesting period of 6.9 years[117]. - The company recorded total purchases from Engineered Floors of approximately $64 thousand in 2023, representing about 0.03% of its cost of sales[123]. Off-Balance Sheet Arrangements - The company has no off-balance sheet arrangements as of December 30, 2023[118]. Lease Agreements - The company entered into a 10-year operating lease for the Adairsville property with an initial annual rent of $1.5 million, increasing to $1.6 million in the second five years[114].

Financial Data and Key Metrics Changes - The gross margin improved by 13 percentage points to 27% of net sales in Q4 2023 compared to 14% in Q4 2022 [3] - Net income for Q4 2023 was $3.2 million, a significant improvement from a loss of $18.5 million in Q4 2022 [9] - For the fiscal year 2023, net sales were $236.3 million, down from $303.6 million in the prior year, reflecting a decrease of 9% [30] - The operating income for 2023 was $5 million compared to an operating loss of $28.2 million in 2022 [12] - The net loss for the year was $2.7 million, an improvement from a net loss of $35.1 million in the previous year [12] Business Line Data and Key Metrics Changes - The company experienced a 7.2% decline in adjusted average weekly sales in 2023 compared to the prior year, primarily due to high interest rates and inflation affecting consumer confidence [10] - Hard surface products now represent about 20% of total sales, indicating growth in this segment [17] - The company invested heavily in displays and samples for its DuraSilk collection, which has seen strong acceptance [18] Market Data and Key Metrics Changes - The flooring industry faced a significant reduction in year-over-year sales volume, with the company gaining market share in its core markets despite a slowdown in the overall industry [8] - The actual square yards of carpets sold by the industry in 2023 were about 20% lower than in 2021, indicating a challenging market environment [36] Company Strategy and Development Direction - The company is focused on minimizing expenses and reducing overhead, with a plan to cut costs by an additional $10 million in 2024 after reducing costs by over $35 million in 2023 [16] - A major initiative includes starting up extrusion capabilities to produce its own nylon yarn, which will provide a more cost-effective source of raw materials [39] - The company aims to leverage its growth initiatives to gain market share, particularly in the hard surface and polyester product offerings [17][18] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry is at a cyclical low point, but they are positioned to take advantage of a future upturn when interest rates recede and housing rebounds [20] - Current business conditions for the first 10 weeks of 2024 show sales slightly behind last year, but orders are in line with expectations [42] Other Important Information - The company recognized a gain of approximately $8 million from the sale and leaseback of its Adairsville facility [32] - The company is celebrating the 50th anniversary of its Fabrica brand, highlighting its commitment to quality and industry leadership [41] Q&A Session All Questions and Answers Question: Can you quantify the market share gained in the soft surface market? - Management indicated that while they cannot provide exact numbers, they have gained market share and noted that carpet has continued to lose market share to hard surfaces [46] Question: What is the Board's goal regarding debt in relation to equity? - The company has made significant progress in reducing debt and is monitoring economic conditions to determine future financing needs [54] Question: Will the company address compliance with NASDAQ efficiency filing dates? - Management confirmed that they will be addressing compliance issues soon [44]

DALTON, GEORGIA (March 8, 2024) -- The Dixie Group, Inc. (NASDAQ: DXYN) today reported financial results for the year ended December 30, 2023. For the year 2023, net sales for the Company were $276,343,000 as compared to $303,570,000 for the fiscal year 2022. Fiscal year 2023 included 52 weeks as compared to the fiscal year 2022 at 53 weeks. On an average weekly basis, sales in 2023 were $5,314,000 per a week compared to $5,728,000 per a week in 2022. The operating income on the year was $5,048,000 compared ...

Dixie Group, Inc. (NASDAQ:DXYN) Q3 2023 Earnings Call Transcript November 13, 2023 10:00 AM ET Company Participants Daniel Frierson - Chairman & CEO Allen Danzey - VP & CFO Conference Call Participants Barry Blank - J.H. Darbie Operator Good day and welcome to the Dixie Group, Inc. 2023 Third Quarter Earning Conference Call. Today's call is being recorded. At this time for opening remarks, I'll turn the floor over to Chairman and Chief Executive Officer, Dan Frierson. Please go ahead. Daniel Frierson Thank ...