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]

[Part I](index=5&type=section&id=PART%20I) [Business](index=5&type=section&id=Item%201.%20Business) The Dixie Group specializes in high-end residential and commercial floorcovering, expanding into hard surfaces like LVF, with residential sales at **79%** in 2020 and declining customer concentration - The company's core business is marketing, manufacturing, and selling high-end residential and commercial floorcovering products under brands including Fabrica, Masland, Dixie Home, and AtlasMasland[18](index=18&type=chunk) - In response to a market shift, the company has expanded into hard surface flooring, launching Luxury Vinyl Flooring (LVF) products like TRUCOR™ and Calibré, and an engineered wood program[19](index=19&type=chunk) Sales by End-User Market | Market Segment | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Residential floorcovering products | 79% | 72% | 72% | | Commercial floorcovering products | 21% | 28% | 28% | - A single mass merchant customer accounted for **7% of net sales in 2020**, a decrease from **11% in 2019** and **13% in 2018**, indicating a declining concentration with this customer[36](index=36&type=chunk) - The company relies heavily on nylon yarn as its primary raw material and purchases a significant portion from a single supplier, posing a potential supply chain risk[40](index=40&type=chunk) [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the COVID-19 pandemic, economic downturns, high indebtedness, intense competition, and reliance on a single raw material supplier - The COVID-19 pandemic has had and is expected to continue to have an adverse impact on the company's financial condition and results of operations due to potential shutdowns, decreased demand, and supply chain disruptions[48](index=48&type=chunk)[49](index=49&type=chunk) - The business is highly sensitive to general economic conditions, with declines in residential or commercial construction, remodeling, and consumer spending posing a material risk[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - A significant amount of indebtedness relative to equity could negatively impact the company's ability to fund operations and satisfy debt obligations[56](index=56&type=chunk) - The company faces intense competition from larger manufacturers and the accelerated growth of hard surface flooring alternatives, which could decrease demand and profitability[61](index=61&type=chunk) - A significant portion of nylon yarn, a principal raw material, is purchased from one supplier, and an unanticipated termination or interruption of this supply could have a material adverse effect on operations[67](index=67&type=chunk)[68](index=68&type=chunk) [Properties](index=12&type=section&id=Item%202.%20Properties) The Dixie Group operates approximately **2.8 million square feet** of administrative, manufacturing, and distribution facilities, with most owned properties mortgaged to secure credit Facility Space Overview | Type of Operation | Approximate Square Feet | | :--- | :--- | | Administrative | 94,400 | | Manufacturing and Distribution | 2,679,300 | | **TOTAL** | **2,773,700** | - The company's primary facilities are located in Atmore, AL; Roanoke, AL; Saraland, AL; Santa Ana, CA; and various cities in Georgia including Calhoun and Dalton[86](index=86&type=chunk) - Substantially all owned properties are subject to mortgages which secure outstanding borrowings under the company's senior credit facilities[87](index=87&type=chunk) [Legal Proceedings](index=12&type=section&id=Item%203.%20Legal%20Proceedings) The company is a defendant in four lawsuits regarding alleged PFC discharge from carpet manufacturing, seeking monetary damages and injunctive relief, with potential loss currently unestimable - The company is a defendant in four lawsuits related to the alleged discharge of chemical products, including PFCs like PFOA and PFOS, into water systems[88](index=88&type=chunk) - The lawsuits were filed by The Water Works and Sewer Boards of Gadsden and Centre, Alabama; the City of Rome, Georgia; and a class action on behalf of residents of Floyd County, Georgia[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - Plaintiffs seek monetary damages for water filtration systems and other costs, as well as injunctive relief; the company intends to defend the matters vigorously and cannot estimate potential exposure at this time[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) [Executive Officers of the Registrant](index=14&type=section&id=Executive%20Officers%20of%20the%20Registrant) This section lists the executive officers of The Dixie Group as of February 25, 2021, including Daniel K. Frierson (Chairman & CEO) and Allen L. Danzey (CFO) Key Executive Officers (as of Feb 25, 2021) | Name | Age | Position | | :--- | :--- | :--- | | Daniel K. Frierson | 79 | Chairman of the Board, and Chief Executive Officer | | D. Kennedy Frierson, Jr. | 53 | Vice President and Chief Operating Officer | | Allen L. Danzey | 51 | Chief Financial Officer | | Thomas M. Nuckols | 53 | Vice President and President, Dixie Residential | | W. Derek Davis | 70 | Vice President, Human Resources | [Part II](index=15&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=15&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Common Stock trades on NASDAQ (DXYN); no dividends were paid in 2020 or 2019, and **375,938 shares** were repurchased in Q4 2020 for **$1.88 per share** - The company's Common Stock is traded on the NASDAQ Global Market under the symbol DXYN[100](index=100&type=chunk) - No dividends were paid in 2020 or 2019, and payment is restricted under the company's revolving credit facility[103](index=103&type=chunk) - In Q4 2020, the company repurchased **375,938 shares** of its common stock at an average price of **$1.88 per share** as part of a newly approved **$2.9 million** repurchase plan[102](index=102&type=chunk) [Selected Financial Data](index=18&type=section&id=Item%206.%20Selected%20Financial%20Data) This section provides a five-year financial summary (2016-2020), showing declining net sales from **$397.5 million** to **$315.9 million** and losses in most years, except 2019 due to a facility sale gain Five-Year Selected Financial Data (dollars in thousands) | Fiscal Year | Net sales | Gross profit | Operating income (loss) | Income (loss) from continuing operations | Total assets | Long-term debt | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **2020** | $315,939 | $76,456 | $(2,919) | $(9,088) | $232,868 | $72,041 | | **2019** | $374,582 | $86,205 | $21,349 | $15,619 | $247,659 | $81,667 | | **2018** | $405,033 | $86,991 | $(15,816) | $(21,479) | $252,778 | $120,251 | | **2017** | $412,462 | $101,213 | $3,947 | $(9,322) | $283,907 | $123,446 | | **2016** | $397,453 | $95,425 | $(3,436) | $(5,207) | $268,987 | $98,256 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **15.7% decrease** in 2020 net sales due to COVID-19, improved gross margin from cost cuts, the **$25.1 million** gain on a 2019 facility sale, and strengthened liquidity via new credit facilities [COVID-19 Pandemic Impact](index=19&type=section&id=COVID-19%20PANDEMIC) The COVID-19 pandemic significantly reduced sales in Q2 2020, prompting cost cuts and CARES Act utilization, with residential sales recovering while commercial markets remained weak - The company experienced reduced sales volume beginning in March 2020 due to the pandemic, with a gradual and consistent improvement from late April through year-end[117](index=117&type=chunk) - Cost reduction measures included cutting nonessential spending, reducing capital expenditures, rotating layoffs, and temporary salary reductions[117](index=117&type=chunk) - The company deferred **$1.8 million** in payroll taxes and recognized a **$2.1 million** employee retention credit under the CARES Act[118](index=118&type=chunk) [Results of Operations](index=21&type=section&id=RESULTS%20OF%20OPERATIONS) In 2020, net sales decreased **15.7%** to **$315.9 million**, resulting in a **$2.9 million** operating loss, contrasting with 2019's **$21.3 million** operating income boosted by a **$25.1 million** facility sale gain Comparison of Operations: 2020 vs. 2019 (dollars in thousands) | Metric | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $315,939 | $374,582 | (15.7)% | | Gross profit | $76,456 | $86,205 | (11.3)% | | Gross Margin | 24.2% | 23.0% | +1.2 p.p. | | Operating income (loss) | $(2,919) | $21,349 | (113.7)% | | Net income (loss) | $(9,208) | $15,271 | (160.3)% | - The 2020 operating loss was driven by lower sales volume and restructuring expenses, partially offset by higher gross profit margins from cost reduction plans[127](index=127&type=chunk) - The 2019 operating income of **$21.3 million** was heavily impacted by a **$25.1 million** gain on the sale of the company's Santa Ana, California facility[125](index=125&type=chunk)[136](index=136&type=chunk)[140](index=140&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) In 2020, cash from operations was **$13.5 million**, driven by inventory reduction; liquidity was enhanced in Q4 with a new **$75 million** revolving facility and **$25 million** in term loans, resulting in **$43.3 million** availability - Cash provided by operations was **$13.5 million** in 2020, driven by a **$10.1 million** reduction in inventories[145](index=145&type=chunk) - In Q4 2020, the company replaced its senior credit facility with a new **$75 million** Senior Secured Revolving Credit Facility with Fifth Third Bank, maturing in 2025[148](index=148&type=chunk)[151](index=151&type=chunk) - The company also entered into two USDA Guaranteed term loans for a combined principal of **$25 million**[148](index=148&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) - As of December 26, 2020, unused borrowing availability under the new revolving credit facility was **$43.3 million**[148](index=148&type=chunk)[153](index=153&type=chunk) [Critical Accounting Policies](index=27&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies involve significant judgment in revenue recognition, LIFO inventory valuation, goodwill impairment, self-insured accruals, and deferred tax asset recoverability, leading to a valuation allowance - Key policies requiring significant judgment include revenue recognition, inventory valuation (LIFO), goodwill impairment, self-insured accruals, income taxes, and loss contingencies[178](index=178&type=chunk)[179](index=179&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) - The company maintains a valuation allowance of **$15.4 million** against its deferred tax assets at year-end 2020 due to uncertainty about their future recoverability[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate volatility, with **68%** of total debt at floating rates, where a **100 basis point** change impacts annual pre-tax income by **$395,000** - The company's main market risk is interest rate volatility on its floating-rate debt[187](index=187&type=chunk) - At year-end 2020, **$53.3 million**, or approximately **68% of total debt**, was subject to floating interest rates[188](index=188&type=chunk) - A **100 basis point (1%)** fluctuation in variable interest rates would result in an annual pre-tax impact of approximately **$395,000**[188](index=188&type=chunk) [Financial Statements and Supplementary Data](index=28&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal year 2020, including the auditor's report, balance sheets, income statements, cash flows, and comprehensive notes [Report of Independent Registered Public Accounting Firm](index=37&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The independent auditor issued an unqualified opinion on the financial statements, identifying the LIFO inventory reserve as a critical audit matter due to calculation complexity - The auditor expressed an unqualified opinion on the financial statements[230](index=230&type=chunk) - The LIFO (last-in, first-out) inventory reserve was identified as a critical audit matter due to its complexity and the judgment required for market adjustments[235](index=235&type=chunk)[236](index=236&type=chunk) [Consolidated Financial Statements](index=38&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets of **$232.9 million** and stockholders' equity of **$63.8 million** as of December 26, 2020, with **$315.9 million** in net sales and a **$9.2 million** net loss for the year Key Financial Statement Data (Fiscal Year 2020) | Metric | Amount (in thousands) | | :--- | :--- | | **Balance Sheet (as of Dec 26, 2020):** | | | Total Assets | $232,868 | | Total Liabilities | $169,077 | | Total Stockholders' Equity | $63,791 | | **Statement of Operations (Year ended Dec 26, 2020):** | | | Net Sales | $315,939 | | Gross Profit | $76,456 | | Operating Loss | $(2,919) | | Net Loss | $(9,208) | | **Statement of Cash Flows (Year ended Dec 26, 2020):** | | | Net Cash Provided by Operating Activities | $13,549 | [Notes to Consolidated Financial Statements](index=43&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, including LIFO inventory valuation, long-term debt, new credit facilities, lease obligations, income taxes with a significant valuation allowance, and environmental liabilities - Inventories are valued using the LIFO method; the LIFO reserve was **$18.5 million** as of December 26, 2020[268](index=268&type=chunk)[310](index=310&type=chunk) - In Q4 2020, the company entered into a new **$75 million** revolving credit facility and two term loans totaling **$25 million**[322](index=322&type=chunk)[326](index=326&type=chunk)[327](index=327&type=chunk) - The company maintains a full valuation allowance of **$15.4 million** against its deferred tax assets at year-end 2020 due to uncertainty of realization[375](index=375&type=chunk)[378](index=378&type=chunk) - The company has an accrual of **$1.9 million** for environmental remediation obligations related to discontinued textile operations[433](index=433&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of December 26, 2020, the CEO and CFO concluded disclosure controls were effective, with no material changes to internal control over financial reporting in Q4 2020 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 26, 2020[192](index=192&type=chunk) - No changes in internal control over financial reporting occurred during the fourth quarter that materially affected, or are reasonably likely to materially affect, internal controls[193](index=193&type=chunk) [Part III](index=30&type=section&id=PART%20III) [Directors, Executive Officers and Corporate Governance](index=30&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Director and Section 16(a) compliance information is incorporated from the 2021 Proxy Statement, with executive officer details in Part I, and Michael L. Owens identified as an audit committee financial expert - Information about director nominees and Section 16(a) compliance is incorporated by reference from the Proxy Statement for the annual meeting to be held May 5, 2021[201](index=201&type=chunk) - The Board has determined that Michael L. Owens qualifies as an audit committee financial expert[203](index=203&type=chunk) [Executive Compensation](index=30&type=section&id=Item%2011.%20Executive%20Compensation) All executive and director compensation information, including the Compensation Discussion and Analysis, is incorporated by reference from the 2021 Proxy Statement - The sections "Compensation Discussion and Analysis", "Executive Compensation Information" and "Director Compensation" are incorporated by reference from the 2021 Proxy Statement[205](index=205&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=30&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated from the 2021 Proxy Statement, with **609,453 securities** available for future issuance under equity compensation plans as of December 26, 2020 - Information on security ownership is incorporated by reference from the 2021 Proxy Statement[206](index=206&type=chunk) Equity Compensation Plan Information (as of Dec 26, 2020) | Plan Category | Securities to be issued upon exercise | Weighted-average exercise price | Securities available for future issuance | | :--- | :--- | :--- | :--- | | Equity Compensation Plans approved by security holders | 281,320 | $4.35 | 609,453 | [Certain Relationships and Related Transactions, and Director Independence](index=30&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain related party transactions and director independence is incorporated by reference from the 2021 Proxy Statement - The sections "Certain Transactions Between the Company and Directors and Officers" and "Independent Directors" are incorporated by reference from the 2021 Proxy Statement[208](index=208&type=chunk) [Principal Accounting Fees and Services](index=30&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the "Audit Fees Discussion" section of the 2021 Proxy Statement - The "Audit Fees Discussion" section is incorporated by reference from the 2021 Proxy Statement[209](index=209&type=chunk) [Part IV](index=32&type=section&id=PART%20IV) [Exhibits and Financial Statement Schedules](index=32&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of this Annual Report on Form 10-K, with a detailed exhibit index attached - This item lists the financial statements, schedules, and exhibits filed with the Form 10-K[212](index=212&type=chunk)

Financial Data and Key Metrics Changes - In 2020, the company experienced a net sales decline of approximately $60 million compared to the previous year, totaling $315 million, down from $374 million in 2019, representing a decrease of 10.7% [5][10] - The net loss for 2020 was $9.208 million, a significant drop from a net income of over $15 million in 2019, primarily due to the impact of COVID-19 [5][10] - The gross profit margin improved to 24.2% in 2020 from 23% in 2019, reflecting operational improvements and cost reductions [4][11] - Selling and administrative costs decreased to $75.7 million, down $8.1 million from 2019, due to cost-saving initiatives [12] Business Line Data and Key Metrics Changes - Residential product sales were down 13.6% for the year, while commercial product sales decreased by 37%, with the industry down in the low 20 percentile range [10] - In the fourth quarter, residential sales increased by 15%, while overall sales for the quarter were $88.6 million, down 1.7% year-over-year [6][10] - The company reported positive operating income in the third and fourth quarters of 2020, with $2.6 million and $1.5 million respectively [14] Market Data and Key Metrics Changes - The residential market showed recovery in the second half of 2020, continuing into 2021, driven by strong trends in new home construction and home improvement projects [8][22] - The commercial market, however, continued to be adversely impacted by COVID-19, with sales down more than 35% from the previous year [28] Company Strategy and Development Direction - The company is focusing on product innovation, including the expansion of the Envision 66 offering and the introduction of new technologies like TECHnique for tufting [23][25] - Plans for 2021 include investing in new products, talent, and technology, with expectations to double placements in the Fabrica wood program [27] - The company aims to strengthen its balance sheet and reduce debt, having reduced total debt by $60 million over the last 30 months [4][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented challenges posed by the COVID-19 pandemic but expressed optimism about the recovery in the residential market [3][31] - The company is positioned to benefit from a strong residential market in 2021, with expectations of continued growth in sales and market share [31] Other Important Information - The company implemented significant cost reductions totaling approximately $14 million in 2020, including deferring maintenance and reducing capital expenditures [20][21] - The company ended the year with an operating loss of $2.9 million, compared to an operating income of $21.3 million in 2019, which was bolstered by a $25 million gain from the sale of a facility [14] Q&A Session Summary Question: Disparity in Sales Compared to Competitors - Management noted that residential sales were up 15% in Q4, while commercial sales were down significantly, impacting overall performance [34] Question: Refinancing and Real Estate Collateral - Management confirmed that the refinancing improved their financial position and that some assets are no longer pledged as collateral under the new credit facility [37]

The Dixie Group, Inc. (NASDAQ:DXYN) Q3 2020 Earnings Conference Call November 5, 2020 10:00 AM ET Company Participants Daniel Frierson - Chairman of the Board and Chief Executive Officer Allen Danzey - Vice President and Chief Financial Officer Conference Call Participants Barry Blank - JH Darbie and Co Derek Maupin - Hodges Capital Market Operator Good day, and welcome to the Dixie Group, Inc. 2020 Third Quarter Earnings Conference Call. Today's call is being recorded. At this time, for opening remarks and ...

Financial Data and Key Metrics Changes - The company reported net sales of $60.8 million for Q2 2020, a decrease of 39.4% from $100.4 million in Q2 2019 [3][7] - The loss from continuing operations was $6.98 million or $0.46 per diluted share, compared to a loss of $1.18 million or $0.07 per diluted share in the same quarter of 2019 [3][10] - Gross profit margin decreased to 20.1% from 23.4% in Q2 2019, impacted by lower sales volume and underabsorption of fixed costs [8][9] - Total debt decreased by $11.6 million from the previous quarter and by $48.1 million year-over-year, leading to a 21% reduction in interest expense compared to Q2 2019 [10] Business Line Data and Key Metrics Changes - Sales of commercial products were down 42% year-over-year, while the industry was down approximately 30% [13] - Residential product sales decreased by 38%, with the industry also down around 30% [15] - Specialty retail segment sales were down 50% in April but improved to down 35% in May and less than 10% in June [15] - Hard surface sales increased over 60% compared to the previous year, indicating strong growth in this segment [18] Market Data and Key Metrics Changes - The recovery in residential markets was quicker than in commercial markets, typical during economic recoveries [6] - The home center channel saw order entry return to pre-COVID-19 levels by mid-June, although sales were still lagging behind last year [17] Company Strategy and Development Direction - The company is focusing on growing its luxury vinyl flooring business and has introduced new products to enhance market penetration [18][19] - The Sustaina modular tile backing system has received NSF 140 platinum certification, indicating a commitment to sustainability [14] - The company plans to continue expanding its hard surface sales team and hiring resources in key growth markets [19] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the future due to the resurgence of COVID-19 cases and potential government restrictions [6] - The company is optimistic about the recovery and growth potential, particularly in the upper end of the residential market [21] - Management highlighted the resilience of customers and their ability to adapt to changing conditions [21] Other Important Information - The company implemented approximately $14 million in cost cuts, including deferring maintenance and reducing capital expenditures [5] - The company has modified its senior credit facility to provide additional flexibility regarding loan availability [12] Q&A Session Summary Question: Does the company have the capability to acquire smaller companies facing financial troubles? - Management acknowledged the potential for acquisition opportunities as many companies may face challenges [23] Question: How does the company see the hard flooring business picking up compared to the carpet business in the next quarter? - Management indicated that the hard surface business is showing strong growth from a low base, while the carpet business is more established [25]

The Dixie Group, Inc. (NASDAQ:DXYN) Q1 2020 Earnings Conference Call May 19, 2020 11:00 AM ET Company Participants Daniel Frierson - Chairman & Chief Executive Officer Allen Danzey - Chief Financial Officer John Faulkner - Vice President, Strategic Initiatives Conference Call Participants Barry Blank - J.H. Darbie & Company Operator Good day and welcome to The Dixie Group, Inc. 2020 First Quarter Earnings Conference Call. Today's call is being recorded. At this time, for opening remarks and introduction, I ...

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 28, 2019 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, Inc. (Exact name of registrant as specified in its charter) Tennessee 62-0183370 | --- | --- ...

The Dixie Group, Inc. (NASDAQ:DXYN) Q4 2019 Earnings Conference Call March 5, 2020 11:00 AM ET Company Participants Dan Frierson - Chairman and Chief Executive Officer Allen Danzey - Chief Financial Officer John Faulkner - Vice President, Strategic Initiatives Conference Call Participants Barry Blank - J.H. Darbie Operator Good day and welcome to the Dixie Group, Inc. 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, today’s call ...

The Dixie Group, Inc. (NASDAQ:DXYN) Q3 2019 Earnings Conference Call November 7, 2019 10:00 AM ET Company Participants Dan Frierson - Chairman & CEO Jon Faulkner - CFO Conference Call Participants Operator Good day, and welcome to Dixie Group, Inc. 2019 Third 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, sir. Dan Frierson Than ...