The Dixie Group Reports Financial Results for 2024
Rhea-AI Summary
The Dixie Group (OTCQB:DXYN) reported its financial results for Q4 and full-year 2024. The company experienced a 4% decline in annual net sales to $265.0 million, down from $276.3 million in 2023. The net loss widened to $13.0 million ($0.88 per share) in 2024, compared to $2.7 million ($0.18 per share) in 2023.
Q4 2024 net sales decreased to $64.4 million from $66.7 million, with a net loss of $7.2 million versus a net income of $3.2 million in Q4 2023. Gross margin declined to 24.7% in 2024 from 26.7% in 2023, impacted by lower volume and higher costs.
The company secured a new $75 million senior credit facility in February 2025 and implemented a cost-reduction plan exceeding $10 million. Despite challenges, DXYN reported market share gains in high-end product offerings and residential polyester carpet segments.
Positive
- Secured new $75 million credit facility for three years
- Implemented cost-reduction plan exceeding $10 million
- Gained market share in high-end product offerings
- Reduced selling and administrative costs by $4.3 million (5.8%)
- Decreased inventory by $9.4 million (12.3%)
- Reduced interest expense to $6.4 million from $7.2 million
Negative
- Net loss increased to $13 million from $2.7 million year-over-year
- Annual net sales declined 4% to $265 million
- Gross margin decreased to 24.7% from 26.7%
- Q4 net loss of $7.2 million compared to $3.2 million profit in Q4 2023
- Higher medical expenses and utility costs impacted profitability
News Market Reaction – DXYN
On the day this news was published, DXYN declined 4.65%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
DALTON, GA / ACCESS Newswire / April 10, 2025 / The Dixie Group, Inc. (OTCQB:DXYN) today reported financial results for the fourth quarter and the year ended December 28, 2024.
In the fourth quarter of 2024, net sales were
For the fiscal year 2024, net sales for the Company were
Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "The year over year
We were able to achieve significant cost reductions in 2024 including the successful start up and operation of our extrusion line which allowed us to secure an internal source of raw materials at lower cost. Unfortunately these decreases in expense were offset by unfavorable costs in medical expenses, utility costs, under absorbed fixed costs, and write downs of inventory in the fourth quarter. In 2025, we have measures in place to reduce the cost of our self insured medical plan and we are taking steps to reduce utility costs. We are also planning further reductions in our sample costs in 2025 and reducing costs in our hard surface offerings through changes in sourcing products.
Throughout 2024, we continued to invest in growth initiatives which have enabled us to gain market share in key areas. We experienced growth in our higher end product offerings through our decorative programs and nylon carpet offerings under the Masland and Fabrica brands. We were also able to gain market share in residential polyester carpet through our DuraSilkSD polyester offerings under our DH Floors brand.
We also continued our investment in our online and retail store marketing programs. Our online space has allowed our customers direct access to product visualization tools and sample ordering and has resulted in increased lead generation. Our investment in samples, merchandising and training through our Premier Flooring Centers has shown strong results and we are excited about its future potential.
So far this year, our sales have followed the same pattern as last year. The highest end soft surface sales are up, while soft surfaces sales overall are at levels similar to the prior year and the hard surface sales are down from the previous year. Until demand improves, we will continue reducing costs. We have already implemented a cost-reduction plan for this year, which exceeds
Cyclical downturns of this nature in the flooring industry normally lead to strong rebounds driven by pent up demand. As with all companies tied to imported goods, we are closely watching the reciprocal tariffs and particularly the impact it will have on our imported LVF products. We are not alone in this situation as approximately
We are pleased to have closed on a new
The gross margin in fiscal year 2024 was
The Company's net receivables decreased
In February of 2025, subsequent to the 2024 fiscal year end, the Company closed on a new
This press release contains forward-looking statements. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management and the Company at the time of such statements and are not guarantees of performance. Forward-looking statements 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 affect the Company's results include, but are not limited to, availability of raw material and transportation costs related to petroleum prices, the cost and availability of capital, integration of acquisitions, ability to attract, develop and retain qualified personnel and general economic and competitive conditions related to the Company's business. Issues related to the availability and price of energy may adversely affect the Company's operations. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.
THE DIXIE GROUP, INC.
Consolidated Condensed Statements of Operations
(unaudited; in thousands, except earnings (loss) per share)
| Three Months Ended |
|
| Twelve Months Ended |
| |||||||||||
| December 28, |
|
| December 30, |
|
| December 28, |
|
| December 30, |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
NET SALES |
| $ | 64,388 |
|
| $ | 66,674 |
|
| $ | 265,026 |
|
| $ | 276,343 |
|
Cost of sales |
|
| 50,430 |
|
|
| 48,644 |
|
|
| 199,515 |
|
|
| 202,464 |
|
GROSS PROFIT |
|
| 13,958 |
|
|
| 18,030 |
|
|
| 65,511 |
|
|
| 73,879 |
|
Selling and administrative expenses |
|
| 18,541 |
|
|
| 19,941 |
|
|
| 69,850 |
|
|
| 74,136 |
|
Other operating (income) expense, net |
|
| 59 |
|
|
| (8,859 | ) |
|
| 200 |
|
|
| (9,172 | ) |
Facility consolidation expenses |
|
| 555 |
|
|
| 1,547 |
|
|
| 1,327 |
|
|
| 3,867 |
|
OPERATING INCOME (LOSS) |
|
| (5,197 | ) |
|
| 5,401 |
|
|
| (5,866 | ) |
|
| 5,048 |
|
Interest expense |
|
| 1,600 |
|
|
| 1,714 |
|
|
| 6,380 |
|
|
| 7,217 |
|
Other (income) expense, net |
|
| (15 | ) |
|
| 203 |
|
|
| (7 | ) |
|
| (431 | ) |
Income (loss) from continuing operations before taxes |
|
| (6,782 | ) |
|
| 3,484 |
|
|
| (12,239 | ) |
|
| (1,738 | ) |
Income tax provision (benefit) |
|
| (45 | ) |
|
| 54 |
|
|
| (29 | ) |
|
| 214 |
|
Income (loss) from continuing operations |
|
| (6,737 | ) |
|
| 3,430 |
|
|
| (12,210 | ) |
|
| (1,952 | ) |
Loss from discontinued operations, net of tax |
|
| (461 | ) |
|
| (270 | ) |
|
| (790 | ) |
|
| (766 | ) |
NET INCOME (LOSS) |
| $ | (7,198 | ) |
| $ | 3,160 |
|
| $ | (13,000 | ) |
| $ | (2,718 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
BASIC EARNINGS (LOSS) PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
| $ | (0.47 | ) |
| $ | 0.23 |
|
| $ | (0.83 | ) |
| $ | (0.13 | ) |
Discontinued operations |
|
| (0.03 | ) |
|
| (0.02 | ) |
|
| (0.05 | ) |
|
| (0.05 | ) |
Net income (loss) |
| $ | (0.50 | ) |
| $ | 0.21 |
|
| $ | (0.88 | ) |
| $ | (0.18 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
DILUTED EARNINGS (LOSS) PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
| $ | (0.47 | ) |
| $ | 0.22 |
|
| $ | (0.83 | ) |
| $ | (0.13 | ) |
Discontinued operations |
|
| (0.03 | ) |
|
| (0.02 | ) |
|
| (0.05 | ) |
|
| (0.05 | ) |
Net income (loss) |
| $ | (0.50 | ) |
| $ | 0.20 |
|
| $ | (0.88 | ) |
| $ | (0.18 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 14,358 |
|
|
| 14,824 |
|
|
| 14,639 |
|
|
| 14,783 |
|
Diluted |
|
| 14,358 |
|
|
| 14,954 |
|
|
| 14,639 |
|
|
| 14,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
THE DIXIE GROUP, INC.
Consolidated Condensed Balance Sheets
(in thousands)
| December 28, |
|
| December 30, |
| |||
ASSETS |
|
|
|
|
|
| ||
Current Assets |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 19 |
|
| $ | 79 |
|
Receivables, net |
|
| 23,325 |
|
|
| 23,686 |
|
Inventories, net |
|
| 66,852 |
|
|
| 76,211 |
|
Prepaid expenses and other current assets |
|
| 5,643 |
|
|
| 12,154 |
|
Current assets of discontinued operations |
|
| - |
|
|
| 265 |
|
Total Current Assets |
|
| 95,839 |
|
|
| 112,395 |
|
|
|
|
|
|
|
|
| |
PROPERTY, PLANT AND EQUIPMENT, NET |
|
| 33,747 |
|
|
| 31,368 |
|
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
| 25,368 |
|
|
| 28,962 |
|
OTHER ASSETS |
|
| 19,854 |
|
|
| 17,130 |
|
LONG-TERM ASSETS OF DISCONTINUED OPERATIONS |
|
| 1,064 |
|
|
| 1,314 |
|
TOTAL ASSETS |
| $ | 175,872 |
|
| $ | 191,169 |
|
|
|
|
|
|
|
|
| |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 14,884 |
|
| $ | 13,935 |
|
Accrued expenses |
|
| 15,057 |
|
|
| 16,598 |
|
Current portion of long-term debt |
|
| 53,818 |
|
|
| 4,230 |
|
Current portion of operating lease liabilities |
|
| 3,804 |
|
|
| 3,654 |
|
Current liabilities of discontinued operations |
|
| 1,156 |
|
|
| 1,137 |
|
TOTAL CURRENT LIABILITIES |
|
| 88,719 |
|
|
| 39,554 |
|
|
|
|
|
|
|
|
| |
LONG-TERM DEBT, NET |
|
| 28,530 |
|
|
| 78,290 |
|
OPERATING LEASE LIABILITIES |
|
| 22,295 |
|
|
| 25,907 |
|
OTHER LONG-TERM LIABILITIES |
|
| 16,712 |
|
|
| 14,591 |
|
LONG-TERM LIABILITIES OF DISCONTINUED OPERATIONS |
|
| 3,398 |
|
|
| 3,536 |
|
Stockholders' Equity |
|
| 16,218 |
|
|
| 29,291 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
| $ | 175,872 |
|
| $ | 191,169 |
|
CONTACT:
Allen Danzey
Chief Financial Officer
706-876-5865
allen.danzey@dixiegroup.com
SOURCE: The Dixie Group
View the original press release on ACCESS Newswire
FAQ
What caused The Dixie Group's net sales decline in 2024?
How much is DXYN's new cost reduction plan worth for 2025?
What was DXYN's gross margin in 2024 compared to 2023?
How much debt did The Dixie Group have at the end of 2024?
What new financing did DXYN secure in 2025?
