The Dixie Group Reports Results for First Quarter of 2025 and New $75 Million Senior Credit Facility
The Dixie Group (OTCQB:DXYN) reported its Q1 2025 financial results and secured a new $75 million senior credit facility. Net sales decreased 3.5% to $62.99 million compared to $65.25 million in Q1 2024. Despite lower sales, gross margins improved to 26.8% from 24.2% year-over-year. The company posted an operating income of $11,000, compared to an operating loss of $857,000 in Q1 2024. Net loss from continuing operations was $1.58 million ($0.11 per share), an improvement from $2.41 million ($0.16 per share) in Q1 2024.
The company's soft floorcovering products outperformed hard surface products, gaining market share in the soft surface category. Premium products showed strong performance across all categories. The new three-year credit facility with MidCap Financial replaces their previous facility with Fifth Third Bank. The company faces challenges from weak market conditions due to low existing home sales and lower consumer confidence, with additional uncertainty around tariffs impacting the industry.
The Dixie Group (OTCQB:DXYN) ha riportato i risultati finanziari del primo trimestre 2025 e ha ottenuto una nuova linea di credito senior da 75 milioni di dollari. Le vendite nette sono diminuite del 3,5%, attestandosi a 62,99 milioni di dollari rispetto ai 65,25 milioni del primo trimestre 2024. Nonostante il calo delle vendite, i margini lordi sono migliorati, passando dal 24,2% al 26,8% su base annua. L'azienda ha registrato un reddito operativo di 11.000 dollari, rispetto a una perdita operativa di 857.000 dollari nel primo trimestre 2024. La perdita netta dalle operazioni continuative è stata di 1,58 milioni di dollari (0,11 dollari per azione), un miglioramento rispetto ai 2,41 milioni (0,16 dollari per azione) del primo trimestre 2024.
I prodotti per pavimenti morbidi dell'azienda hanno superato quelli per superfici dure, guadagnando quota nel segmento delle superfici morbide. I prodotti premium hanno mostrato una forte performance in tutte le categorie. La nuova linea di credito triennale con MidCap Financial sostituisce quella precedente con Fifth Third Bank. L'azienda affronta sfide dovute a condizioni di mercato deboli, causate da basse vendite di case esistenti e da una diminuzione della fiducia dei consumatori, con ulteriore incertezza derivante dai dazi che influenzano il settore.
The Dixie Group (OTCQB:DXYN) reportó sus resultados financieros del primer trimestre de 2025 y aseguró una nueva línea de crédito senior de 75 millones de dólares. Las ventas netas disminuyeron un 3,5%, alcanzando 62,99 millones de dólares en comparación con los 65,25 millones del primer trimestre de 2024. A pesar de las menores ventas, los márgenes brutos mejoraron del 24,2% al 26,8% interanual. La compañía registró un ingreso operativo de 11.000 dólares, frente a una pérdida operativa de 857.000 dólares en el primer trimestre de 2024. La pérdida neta de las operaciones continuas fue de 1,58 millones de dólares (0,11 dólares por acción), mejorando desde 2,41 millones (0,16 dólares por acción) en el primer trimestre de 2024.
Los productos de cubiertas blandas de la empresa superaron a los de superficies duras, ganando cuota en la categoría de superficies blandas. Los productos premium mostraron un rendimiento sólido en todas las categorías. La nueva línea de crédito a tres años con MidCap Financial reemplaza la anterior con Fifth Third Bank. La compañía enfrenta desafíos debido a condiciones de mercado débiles, causadas por bajas ventas de viviendas existentes y menor confianza del consumidor, con incertidumbre adicional por los aranceles que afectan a la industria.
The Dixie Group (OTCQB:DXYN)은 2025년 1분기 재무 실적을 발표하고 새로운 7,500만 달러 규모의 선순위 신용 시설을 확보했습니다. 순매출은 2024년 1분기 6,525만 달러에서 3.5% 감소한 6,299만 달러를 기록했습니다. 매출 감소에도 불구하고 총 마진은 전년 동기 대비 24.2%에서 26.8%로 개선되었습니다. 영업이익은 1만 1천 달러를 기록해 2024년 1분기 85만 7천 달러 영업손실에서 흑자로 전환했습니다. 계속 영업 손실은 158만 달러(주당 0.11달러)로, 2024년 1분기 241만 달러(주당 0.16달러) 손실에서 개선되었습니다.
회사의 연질 바닥재 제품은 경질 제품보다 우수한 성과를 보이며 연질 바닥재 시장 점유율을 확대했습니다. 프리미엄 제품은 모든 카테고리에서 강력한 실적을 나타냈습니다. MidCap Financial과 체결한 3년 신용 시설은 이전 Fifth Third Bank와의 시설을 대체합니다. 회사는 기존 주택 판매 부진과 소비자 신뢰 하락으로 인한 약한 시장 상황, 그리고 산업에 영향을 미치는 관세 관련 불확실성으로 인해 어려움에 직면해 있습니다.
The Dixie Group (OTCQB:DXYN) a publié ses résultats financiers du premier trimestre 2025 et a obtenu une nouvelle facilité de crédit senior de 75 millions de dollars. Les ventes nettes ont diminué de 3,5 %, atteignant 62,99 millions de dollars contre 65,25 millions au premier trimestre 2024. Malgré la baisse des ventes, les marges brutes se sont améliorées, passant de 24,2 % à 26,8 % d'une année sur l'autre. La société a enregistré un résultat opérationnel de 11 000 dollars, contre une perte opérationnelle de 857 000 dollars au premier trimestre 2024. La perte nette des activités poursuivies s'élève à 1,58 million de dollars (0,11 dollar par action), une amélioration par rapport à 2,41 millions (0,16 dollar par action) au premier trimestre 2024.
Les produits de revêtements de sol souples de la société ont surperformé les produits pour surfaces dures, gagnant des parts de marché dans la catégorie des surfaces souples. Les produits premium ont affiché de solides performances dans toutes les catégories. La nouvelle facilité de crédit triennale avec MidCap Financial remplace celle précédente avec Fifth Third Bank. La société fait face à des défis liés à des conditions de marché faibles, dues à la faible vente de logements existants et à une confiance des consommateurs réduite, avec une incertitude supplémentaire liée aux tarifs douaniers impactant le secteur.
The Dixie Group (OTCQB:DXYN) veröffentlichte seine Finanzergebnisse für das erste Quartal 2025 und sicherte sich eine neue Senior-Kreditfazilität in Höhe von 75 Millionen US-Dollar. Der Nettoumsatz sank um 3,5 % auf 62,99 Millionen US-Dollar im Vergleich zu 65,25 Millionen US-Dollar im ersten Quartal 2024. Trotz des Umsatzrückgangs verbesserten sich die Bruttomargen von 24,2 % auf 26,8 % im Jahresvergleich. Das Unternehmen erzielte ein Betriebsergebnis von 11.000 US-Dollar, verglichen mit einem Betriebsverlust von 857.000 US-Dollar im ersten Quartal 2024. Der Nettoverlust aus fortgeführten Geschäftsbereichen betrug 1,58 Millionen US-Dollar (0,11 US-Dollar je Aktie), eine Verbesserung gegenüber 2,41 Millionen US-Dollar (0,16 US-Dollar je Aktie) im ersten Quartal 2024.
Die weichbodenbelagsprodukte des Unternehmens übertrafen die Hartbodenprodukte und gewannen Marktanteile im Bereich der weichen Bodenbeläge. Premiumprodukte zeigten in allen Kategorien eine starke Leistung. Die neue dreijährige Kreditfazilität mit MidCap Financial ersetzt die vorherige mit der Fifth Third Bank. Das Unternehmen steht vor Herausforderungen aufgrund schwacher Marktbedingungen, bedingt durch geringe Verkäufe bestehender Häuser und ein geringeres Verbrauchervertrauen, sowie zusätzlicher Unsicherheiten durch Zölle, die die Branche beeinflussen.
- Operating income improved to $11,000 in Q1 2025 from a loss of $857,000 in Q1 2024
- Gross margins increased to 26.8% from 24.2% year-over-year
- Net loss reduced to $1.58 million from $2.41 million in Q1 2024
- Secured new $75 million three-year credit facility
- Gained market share in soft surface category
- Net sales declined 3.5% to $62.99 million year-over-year
- Selling and administrative expenses increased to $16.9 million from $16.4 million
- Debt increased by $2.3 million in Q1 2025
- Hard surface products underperformed compared to soft floorcovering products
- Only $12 million unused borrowing availability under credit facility, subject to $6 million minimum requirement
DALTON, GA / ACCESS Newswire / May 9, 2025 / The Dixie Group, Inc. (OTCQB:DXYN) today reported financial results for the quarter ended March 29, 2025.
The Company had favorable year over year gross margins despite lower year over year net sales volume
The Company had an operating income of
$11 thousand in the first quarter of 2025 compared to an operating loss of$857 thousand in the same period of 2024During the first quarter of 2025 the Company closed on a new
$75 million credit facility
For the first quarter of 2025, the Company had net sales of
Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "The industry continues to experience weak market conditions driven by low existing home sales and lower consumer confidence. Our first quarter net sales were down
Despite the lower sales volume, our gross margins in the first quarter were favorable to prior year at
Low consumer confidence was further impacted by the uncertainty around the announcement of tariffs during the quarter. We had previously minimized the amount of our products being imported from China and we have worked with all of the suppliers of our imported products to reduce the impact of tariffs on the cost of our products. The situation is very volatile at this time, and it is difficult to predict what the impact of increased tariffs will be on imported products. At this time, several industry players have already announced price increases. Certainly, the impact will be greater on some hard surface categories.
We were pleased by the success of the first quarter trade shows, including Surfaces where we showcased 25 new styles of carpet across our nylon, polyester and decorative collections. Our focus continues to be on creating differentiated styles for the residential market, with an emphasis on color, pattern, and textural visuals. This includes our Step Into Color campaign where we offer the best and broadest color lines in the industry including custom color offerings in our white dyeable nylon carpet collections produced through our nylon extrusion operation that began successful production last year.
We also showcased eight hard surface collections with new visuals and innovations and ten new colors in our Fabrica wood program which were all very well received and will continue to fuel growth in this program. In our TRUCOR brand, we are focused on simplification of our product line and consumer friendly messaging. We featured new visuals and constructions in several of our SPC, WPC, and laminate programs. Notably, our PRIME X collection, with a half inch thick WPC construction and 7x72 inch plank in ten colors. Also our Boardwalk collection, with rolled edge and beautiful visuals in a high end SPC platform, will get 10 new colors in 2025. And we are expanding our market leading visuals in the SPC tile/stone segment with 6 new "built in grout" options. Our hard surface introductions began rolling out late in the 1st quarter and will continue through mid year.
During the quarter we were pleased to announce closure on a new, three year,
The year over year gross margin improved by
On our balance sheet, receivables increased
On February 25, 2025, the Company entered into 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 | ||||||||
March 29, | March 30, | |||||||
NET SALES | $ | 62,990 | $ | 65,254 | ||||
Cost of sales | 46,088 | 49,445 | ||||||
GROSS PROFIT | 16,902 | 15,809 | ||||||
Selling and administrative expenses | 16,874 | 16,372 | ||||||
Other operating (income) expense, net | (98 | ) | 52 | |||||
Facility consolidation and severance expenses, net | 115 | 242 | ||||||
OPERATING INCOME (LOSS) | 11 | (857 | ) | |||||
Interest expense | 1,493 | 1,532 | ||||||
Other expense, net | 88 | 5 | ||||||
LOSS OF CONTINUING OPERATIONS BEFORE TAXES | (1,570 | ) | (2,394 | ) | ||||
Income tax provision | 12 | 16 | ||||||
LOSS FROM CONTINUING OPERATIONS | (1,582 | ) | (2,410 | ) | ||||
Loss from discontinued operations, net of tax | (115 | ) | (84 | ) | ||||
NET LOSS | $ | (1,697 | ) | $ | (2,494 | ) | ||
BASIC EARNINGS (LOSS) PER SHARE: | ||||||||
Continuing operations | $ | (0.11 | ) | $ | (0.16 | ) | ||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Net loss | $ | (0.12 | ) | $ | (0.17 | ) | ||
BASIC SHARES OUTSTANDING | 14,366 | 14,850 | ||||||
DILUTED EARNINGS (LOSS) PER SHARE: | ||||||||
Continuing operations | $ | (0.11 | ) | $ | (0.16 | ) | ||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Net loss | $ | (0.12 | ) | $ | (0.17 | ) | ||
DILUTED SHARES OUTSTANDING | 14,366 | 14,850 | ||||||
DIVIDENDS PER SHARE: | ||||||||
Common Stock | $ | - | $ | - | ||||
Class B Common Stock | $ | - | $ | - | ||||
THE DIXIE GROUP, INC.
Consolidated Condensed Balance Sheets
(in thousands)
March 29, | December 28, | |||||||
ASSETS | (Unaudited) | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 4,795 | $ | 19 | ||||
Receivables, net of allowances for expected credit losses of | 27,940 | 23,325 | ||||||
Inventories, net | 66,741 | 66,852 | ||||||
Prepaid and other current assets | 6,160 | 5,643 | ||||||
TOTAL CURRENT ASSETS | 105,636 | 95,839 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 32,527 | 33,747 | ||||||
OPERATING LEASES RIGHT-OF-USE ASSETS | 24,501 | 25,368 | ||||||
RESTRICTED CASH | 4,309 | - | ||||||
OTHER ASSETS | 17,426 | 19,854 | ||||||
LONG TERM ASSETS OF DISCONTINUED OPERATIONS | 1,047 | 1,064 | ||||||
TOTAL ASSETS | $ | 185,446 | $ | 175,872 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 26,036 | $ | 14,884 | ||||
Accrued expenses | 14,945 | 15,057 | ||||||
Current portion of long-term debt | 57,912 | 53,818 | ||||||
Current portion of operating lease liabilities | 3,746 | 3,804 | ||||||
Current liabilities of discontinued operations | 1,121 | 1,156 | ||||||
TOTAL CURRENT LIABILITIES | 103,760 | 88,719 | ||||||
LONG-TERM DEBT, NET | 26,742 | 28,530 | ||||||
OPERATING LEASE LIABILITIES | 21,476 | 22,295 | ||||||
OTHER LONG-TERM LIABILITIES | 15,467 | 16,712 | ||||||
LONG-TERM LIABILITIES OF DISCONTINUED OPERATIONS | 3,384 | 3,398 | ||||||
STOCKHOLDERS' EQUITY | 14,617 | 16,218 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 185,446 | $ | 175,872 | ||||
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 were DXYN's Q1 2025 earnings per share?
How much is The Dixie Group's new credit facility worth?
What was DXYN's gross margin in Q1 2025?
How much were The Dixie Group's net sales in Q1 2025?
What is The Dixie Group's planned capital expenditure for fiscal year 2025?
