The Dixie Group(DXYN) - 2023 Q4 - Annual Results

Financial Performance - For the fiscal year 2023, net sales were $276,343,000, a decrease of 9.0% compared to $303,570,000 in 2022[3] - The operating income for 2023 was $5,048,000, a significant improvement from an operating loss of $28,156,000 in the previous year[3] - The net loss for 2023 was $2,718,000, or $0.18 per diluted share, compared to a net loss of $35,079,000, or $2.32 per diluted share, in 2022[3] - In Q4 2023, net sales were $66,674,000, down from $70,535,000 in Q4 2022, but average weekly sales increased by approximately 2% when adjusted for the additional week in the prior year[4][5] - Net sales for the three months ended December 30, 2023, were $66,674 million, a decrease of $3,861 million or 5.5% compared to $70,535 million in the same period of 2022[18] - For the twelve months ended December 30, 2023, net sales totaled $276,343 million, down $27,227 million or 9.0% from $303,570 million in 2022[18] - The company reported an adjusted weekly sales figure of $5,129 million for the three months ended December 30, 2023, reflecting an increase of $91 million or 1.8% from $5,038 million in the same period of 2022[18] - For the twelve months ended December 30, 2023, adjusted weekly sales were $5,314 million, a decrease of $414 million or 7.2% compared to $5,728 million in 2022[18] Cost Management - The company reduced costs by over $35 million in 2023 and plans to further reduce costs by $10 million in 2024[6] - Gross profit margin improved to 26.7% in 2023, up from 17.7% in 2022, reflecting cost reductions and plant consolidation efforts[6] - Capital expenditures in 2023 were $1 million, a decrease from $4.6 million in 2022[12] Debt and Financing - The debt level at the end of 2023 was $82.5 million, a 16.9% decrease from $99.3 million at the end of 2022[12] - The company completed a sale and leaseback of its distribution facility in December 2023, resulting in a gain of over $8 million and a debt reduction of approximately $16 million[13] Future Operations - The company plans to start its own nylon extrusion operations in Q1 2024 to mitigate raw material disruptions and lower costs[7]