Financial Performance - Net sales for the fiscal year ended December 31, 2022, were $303.6 million, a decrease of 11.0% compared to $341.2 million in 2021[89]. - Gross profit decreased to $53.6 million, representing 17.7% of net sales, down from 22.6% in 2021, reflecting a 30.6% decline year-over-year[89][90]. - Selling and administrative expenses increased to $77.0 million, or 25.4% of net sales, compared to $67.9 million, or 19.9% of net sales in 2021, marking a 13.3% increase[93]. - The operating loss for 2022 was $28.2 million, a significant decline from an operating income of $10.0 million in 2021, representing a 381.5% change[96]. - Net income for 2022 was a loss of $35.1 million, or $2.32 per diluted share, compared to net income of $1.6 million, or $0.09 per diluted share in 2021[100]. Cash Flow and Operations - Cash used in continuing operations was $17.5 million, driven by a reduction in receivables of $15.2 million and a decrease in accounts payable of $9.6 million[101]. - The company incurred facility consolidation expenses of $4.6 million in 2022, a significant increase from $0.3 million in 2021, related to the consolidation of east coast manufacturing[95]. - Interest expense rose to $5.3 million in 2022 from $4.7 million in 2021, attributed to higher interest rates and increased debt[97]. Tax and Valuation - The effective income tax rate was a benefit of 0.26% in 2022, with a valuation allowance increase of $8.5 million related to net deferred tax assets[98]. - The company increased its valuation allowances by $8.5 million related to net deferred tax assets and specific federal and state net operating losses for the year ended December 31, 2022[116]. - The company had valuation allowances of $21.3 million at December 31, 2022, compared to $12.9 million at December 25, 2021[127]. Debt and Liabilities - Availability under the Senior Secured Revolving Credit Facility was $15.3 million as of December 31, 2022[103]. - At December 31, 2022, approximately 76% of the company's total debt, amounting to $76,341, was subject to floating interest rates[129]. - 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 $763[129]. - The company recorded a liability for amounts received from a sale and leaseback transaction, with an annual rental rate of $977 thousand, subject to annual rent increases of 1.25%[112]. - The company has a reserve of $2.2 million for environmental liabilities at previously owned sites associated with discontinued textile businesses as of December 31, 2022[118]. - The company has no off-balance sheet arrangements as of December 31, 2022[115]. Purchases and Future Tax Outlook - Total purchases from Engineered Floors amounted to approximately $917 thousand in 2022, representing about 0.4% of the cost of sales[120]. - The company anticipates no cash outlays for income taxes to exceed $100 thousand during 2023 and 2024 due to tax loss carryforwards[117]. - As of December 31, 2022, the total unrecognized compensation expense related to unvested restricted stock awards was $1.8 million with a weighted-average vesting period of 6.0 years[114].

Financial Data and Key Metrics Changes - The net sales for the fiscal year 2022 were $304 million, which is 11% lower than the $341 million reported in 2021 [15][17] - The net loss for fiscal year 2022 was $35.1 million, compared to a profit of $1.6 million in the previous year [18] - The gross profit margin for fiscal year 2022 was 17.7%, down from 22.6% in fiscal year 2021 [7] - Selling and administrative expenses were 25.4% of net sales in 2022, compared to 19.9% in the prior fiscal year [7] - Interest expense increased to $5.3 million in 2022 from $4.7 million in 2021 due to higher debt levels and interest rates [7] Business Line Data and Key Metrics Changes - The polyester business grew by 49% in 2022, with projections for a 75% sales growth in 2023 starting from a low base [31] - The Hard Surface segment has grown to approximately $50 million in annual sales, representing about 20% of total sales [23] - The company faced a significant impact from the exit of Invista from the Stainmaster nylon business, leading to a loss of business with Lowe's [10][11] Market Data and Key Metrics Changes - The company experienced a reduction in sales volume, leading to a decrease in accounts receivable by $14 million year-over-year [19] - Accounts payable and accrued expenses decreased by $11.1 million at the end of 2022, consistent with lower volume and inventory costs [20] Company Strategy and Development Direction - The company is focusing on growth initiatives in polyester products and has developed a three-year strategy to expand this category [13][30] - A consolidation plan for East Coast facilities is expected to result in over $25 million in savings and a 24% reduction in workforce [15][30] - The company is also restructuring its manufacturing to adapt to market changes, including ceasing yarn and carpet manufacturing in certain plants [29] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2023 is expected to be challenging due to economic uncertainty, inflation, and higher interest rates, but anticipates growth from new initiatives [30] - The company is implementing cost reduction measures and expects improved results in 2023 despite a sluggish core business [30] Other Important Information - Capital expenditures for the year were $4.6 million, with depreciation of $7.6 million [9] - The company ended the year with a borrowing availability of $15.3 million under its senior credit facility [21] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with management expressing optimism for 2023 compared to 2022 [25][26]

Dixie Group (NASDAQ:DXYN) Q3 2022 Earnings Conference Call November 3, 2022 2:00 PM ET Company Participants Dan Frierson - Chairman and Chief Executive Officer Allen Danzey - Chief Financial Officer Operator Good day and welcome to the Dixie Group, Inc. 2022 Third Quarter Earnings Conference Call. TodayÂ'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. Thank you, sir. Please go ahead. ...

The Dixie Group, Inc. (NASDAQ:DXYN) Q2 2022 Results Conference Call August 15, 2022 2:00 PM ET Company Participants Dan Frierson - Chairman & CEO Allen Danzey - VP & CFO Conference Call Participants Barry Gertner - Improverb Derek Maupin - Hodges Capital Management Chris Riemenschneider - Morgan Stanley Operator Greetings, and welcome to the Dixie Group Second Quarter 2022 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presenta ...

Financial Data and Key Metrics Changes - Net sales for Q1 2022 were $77.6 million, a 6.6% increase from $72.7 million in Q1 2021, adjusted for the divestiture of the commercial business [3] - The net loss for the quarter was $3.3 million, compared to a loss of $2 million a year ago [3] - Gross profit as a percentage of net sales decreased to 19.6% from 23.2% in Q1 2021 [6] - Selling and administrative expenses increased to 22.4% of net sales in Q1 2022 from 21.7% in the prior year [7] - Interest expense decreased to $1.1 million from $1.3 million in the previous year [7] Business Line Data and Key Metrics Changes - The carpet business was significantly impacted by unprecedented price increases from major suppliers, leading to unsustainable product sales [4] - The hard surface business continued to grow rapidly, although ocean freight costs negatively impacted results [5] - The residential business grew by 6.6%, with key growth areas including Masland, Fabrica, and the hard surface segment [10] Market Data and Key Metrics Changes - The average price of residential carpet in the industry rose by 10% over the last year and 20% over the last two years [17] - The industry is facing headwinds such as labor availability, material supply shortages, and increased energy costs [18] Company Strategy and Development Direction - The company is diversifying raw material sourcing to mitigate the impact of price increases and improve cost control [15][19] - A new flooring center concept is being developed to strengthen relationships with key retail customers [19] - The company launched new decorative and hard surface product lines, which are expected to hit the market in Q2 [11][12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the year due to a structural deficit in housing availability and ongoing remodeling trends [18] - The transition to new raw material suppliers is expected to improve costs in the second half of the year [16] - Despite challenges, orders and sales to residential retail customers are up, indicating positive momentum [20] Other Important Information - The company closed on an $11 million loan secured by its facility in Adairsville, Georgia, allowing for the payoff of higher interest existing mortgages [9] - Capital expenditures during the quarter were $345,000, with depreciation just over $2 million [10] Q&A Session Summary Question: Regarding the divestiture of the commercial business and retained inventory value - Management stated that the value of the retained inventory was written down to estimated disposal recovery value and maintained at that value [23] Question: On the return of on-premises designers and installations in the residential sector - Management noted that retail customers adapted to selling methods during the pandemic, and there is now a return to allowing staff on-premises, enhancing their selling skills in the process [25]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 25, 2021 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to ________. Commission File Number 0-2585 THE | --- | --- | |------------------------------------------------------------------------------------------- ...

Dixie Group (NASDAQ:DXYN) Q4 2021 Earnings Conference Call March 10, 2022 2:00 PM ET Company Participants Dan Frierson – Chairman and Chief Executive Officer Allen Danzey – Chief Financial Officer Conference Call Participants Operator Good day, and welcome to the Dixie Group, Inc. 2021 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. Dan ...

Dixie Group, Inc. (NASDAQ:DXYN) Q3 2021 Earnings Conference Call November 12, 2021 11:00 AM ET Company Participants Daniel Frierson - Chairman & CEO Allen Danzey - VP & CFO Conference Call Participants Derek Maupin - Hodges Capital Management Michael Hughes - SGF Capital Operator Good day, and welcome to the Dixie Group Inc. 2021 Third Quarter Earnings Conference Call. Today's call is being recorded. [Operator Instructions]. At this time, for opening remarks and introductions, I would like to turn the call ...

The Dixie Group, Inc. (NASDAQ:DXYN) Q2 2021 Earnings Conference Call August 5, 2021 10:00 AM ET Company Participants Dan Frierson - Chief Executive Officer Allen Danzey - Chief Financial Officer Conference Call Participants Mike Hughes - SGF Capital Operator Greetings. Welcome to the Dixie Group Second Quarter 2021 Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the call over to your host, Dan Frierson. Dan Frierson Thank you, Stacy and welcome everyon ...

Financial Data and Key Metrics Changes - The company reported a net sales increase of 7.1% in Q1 2021, reaching $86.3 million compared to $80.6 million in Q1 2020 [5][6] - The gross profit margin decreased to 22.6% in Q1 2021 from 23.6% in Q1 2020, primarily due to higher material costs and inefficiencies in commercial operations [6] - The company ended the quarter with a loss from continuing operations of $2 million, an improvement from a loss of $2.6 million in the same period of 2020 [9] Business Line Data and Key Metrics Changes - Residential product sales increased by 23% in Q1 2021 compared to the prior year, while commercial product sales decreased by 37% [5] - The soft surface business grew by 18%, and the hard surface residential business grew by 70% compared to the same period in the prior year [15] - The TRUCOR luxury vinyl segment posted 70% growth for the quarter, with notable growth from the TRUCOR Prime XL/XXL collection [20] Market Data and Key Metrics Changes - The residential market has shown a V-shaped recovery, benefiting from strong new housing and remodeling activity [14] - Order entry and sales for residential products were both up over 40% in March 2021 compared to the prior year [16][27] - The commercial market continues to recover, but at a slower pace, with increased sample and project activity expected to lead to improved business in the next six to nine months [12][13] Company Strategy and Development Direction - The company plans to invest in new products and talent, introducing over 40 new soft surface styles and over 60 new hard surface SKUs in 2021 [26] - A price increase of approximately 5% on residential and commercial products is planned for late in the second quarter to offset rising costs [27] - The company is focusing on expanding its EnVision 66 nylon program, which has doubled in volume compared to the prior year [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the commercial business has been adversely impacted by COVID-19, but signs of recovery are emerging [12] - The residential business is expected to maintain momentum, with strong sales trends continuing into the second quarter of 2021 [25] - The company is optimistic about the future, despite ongoing cost increases in the industry [15] Other Important Information - The company experienced a ransomware incident on April 17, 2021, but was able to restore manufacturing and distribution activities within ten days [23][24] - The purchase of the Stainmaster brand by Lowe's is expected to create confusion in the market but may provide additional opportunities for the company's residential business [18] Q&A Session Summary Question: How is the company addressing the ransomware incident? - The company initiated response protocols and engaged a forensic firm to investigate the incident, with minimal interruptions to customer service [23][24] Question: What is the outlook for the commercial market recovery? - Management believes the recovery will be slower and less dynamic than the residential market recovery, with improvements expected in the next six to nine months [12][13]