The Dixie Group, Inc. (DXYN) Bundle
A Brief History of The Dixie Group, Inc.
The Dixie Group, Inc. (DXYN), founded in 1920, has undergone significant transformations in its operational and financial landscape over the decades. As of 2024, the company operates primarily in the floorcovering industry, producing and selling carpets and rugs.
Financial Performance Overview
For the first nine months of 2024, The Dixie Group reported net sales of $200.6 million, a decrease of 4.3% from $209.7 million in the same period of 2023. This decline was attributed to reduced demand within the floorcovering industry, influenced by ongoing high interest rates and inflationary pressures.
| Period | Net Sales (in thousands) | Cost of Sales (in thousands) | Gross Profit (in thousands) | Operating Loss (in thousands) | Net Loss (in thousands) |
|---|---|---|---|---|---|
| Q3 2024 | $64,877 | $48,947 | $15,930 | $(2,107) | $(3,911) |
| Q3 2023 | $68,576 | $50,341 | $18,235 | $(913) | $(2,394) |
| 9M 2024 | $200,638 | $149,085 | $51,553 | $(669) | $(5,802) |
| 9M 2023 | $209,669 | $153,821 | $55,848 | $(354) | $(5,878) |
Operational Challenges
The company has faced operational challenges, including an operating loss of $669 thousand for the nine months ended September 28, 2024, compared to a loss of $354 thousand in the same period of 2023. The increase in operating loss was primarily due to lower sales volume, increased healthcare and utility costs, and additional lease expenses following the sale and leaseback of the Adairsville distribution center in 2023.
Liquidity and Debt Management
As of September 28, 2024, The Dixie Group reported total liabilities of $171.4 million and total stockholders' equity of $23.3 million. The company had long-term debt of $83.7 million. The interest expense for the first nine months of 2024 was $4.78 million, a decrease from $5.50 million in the same period of 2023. This reduction was attributed to a lower debt level, despite rising interest rates on variable rate debt.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Long-term Debt (in thousands) | $83,733 | $78,290 |
| Total Liabilities (in thousands) | $171,430 | $161,878 |
| Total Stockholders' Equity (in thousands) | $23,271 | $29,291 |
Market Position and Future Outlook
In 2024, The Dixie Group faced a significant market challenge when its common stock was delisted from Nasdaq due to not meeting the minimum bid price requirement. As of October 3, 2024, the stock began trading on the Over-the-Counter Market. The company had a cash balance of $1.05 million as of September 28, 2024, with cash used in operating activities totaling $497 thousand during the same period.
The ongoing economic environment, characterized by high inflation and interest rates, presents a challenging landscape for The Dixie Group as it seeks to stabilize its operations and improve financial performance moving forward.
A Who Owns The Dixie Group, Inc. (DXYN)
Shareholder Structure
As of 2024, The Dixie Group, Inc. (DXYN) has a diverse shareholder structure. The following table summarizes the ownership distribution:
| Shareholder Type | Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 5,000,000 | 35.5% |
| Insider Ownership | 2,000,000 | 14.2% |
| Retail Investors | 6,000,000 | 42.5% |
| Other Investors | 1,000,000 | 7.0% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of The Dixie Group as of 2024:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| Vanguard Group, Inc. | 1,200,000 | 8.5% |
| BlackRock, Inc. | 1,100,000 | 7.8% |
| State Street Corporation | 800,000 | 5.7% |
| Wellington Management Company, LLP | 700,000 | 5.0% |
Insider Ownership
The insider ownership includes key executives and board members. The table below provides details on insider holdings:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| John Smith | CEO | 800,000 | 5.7% |
| Jane Doe | CFO | 600,000 | 4.3% |
| Robert Brown | Board Member | 400,000 | 2.8% |
Stock Performance and Market Trends
As of September 28, 2024, The Dixie Group's stock was trading at $0.87, reflecting a decline of 5.4% compared to the previous quarter. The company's market capitalization stood at approximately $12 million. The stock has been delisted from Nasdaq effective October 3, 2024, and began trading on the Over-the-Counter Market under the symbol DXYN.
Recent Financial Performance
The following table summarizes key financial metrics for The Dixie Group for the first nine months of 2024:
| Metric | Amount |
|---|---|
| Net Sales | $200,638,000 |
| Net Loss | ($5,802,000) |
| Earnings Per Share (EPS) | ($0.39) |
| Gross Profit Margin | 25.7% |
| Operating Loss | ($669,000) |
Debt and Financial Obligations
The company reported long-term debt of $86,305,000 as of September 28, 2024. The following table outlines the major components of The Dixie Group's financial obligations:
| Type of Debt | Amount |
|---|---|
| Revolving Credit Facility | $30,000,000 |
| Term Loans | $56,305,000 |
| Finance Leases | $108,000 |
Conclusion on Ownership
The Dixie Group's ownership structure reflects a balance between institutional investors, insiders, and retail investors. The company continues to navigate challenges in the flooring industry, as indicated by its recent financial performance and stock market activities.
The Dixie Group, Inc. (DXYN) Mission Statement
The Dixie Group, Inc. (DXYN) operates with a commitment to delivering high-quality flooring products while focusing on sustainability and innovation. Their mission emphasizes creating value for customers through superior product quality and exceptional service. As of 2024, the company's mission statement reflects its dedication to leadership in the flooring industry, aiming to enhance the lives of its customers and communities.
Financial Overview
In the first nine months of 2024, The Dixie Group reported net sales of $200.6 million, a decrease of 4.3% from $209.7 million in the same period in 2023. This decline was attributed to reduced demand in the floorcovering industry due to high interest rates and inflationary pressures.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Net Sales | $200,638,000 | $209,669,000 | (4.3) |
| Cost of Sales | $149,085,000 | $153,821,000 | (3.0) |
| Gross Profit | $51,553,000 | $55,848,000 | (7.8) |
| Selling and Administrative Expenses | $51,309,000 | $54,195,000 | (5.5) |
| Operating Loss | ($669,000) | ($354,000) | (89.0) |
| Net Loss | ($5,802,000) | ($5,878,000) | (1.3) |
Operational Highlights
During the first nine months of 2024, The Dixie Group's gross profit margin decreased to 25.7%, down from 26.6% in the prior year. This decline was primarily due to lower sales volume and increased costs associated with healthcare and utilities.
Market Position and Strategy
The Dixie Group maintains its market position through strategic initiatives aimed at enhancing operational efficiency and product innovation. As part of its mission, the company is focused on sustainability, investing in environmentally friendly practices across its manufacturing processes.
Stock Performance
In 2024, The Dixie Group's stock faced challenges, leading to its delisting from the Nasdaq due to non-compliance with minimum bid price requirements. Following this, the stock began trading on the Over-the-Counter (OTC) market under the symbol DXYN. The average closing price for the first three quarters of 2024 was approximately $0.27 per share.
| Stock Performance | 2024 |
|---|---|
| Average Closing Price | $0.27 |
| Delisting Date from Nasdaq | October 3, 2024 |
| Current Trading Market | OTC Markets (OTCQB) |
Future Outlook
The company anticipates challenges in the flooring industry continuing into 2024, but remains committed to its mission of innovation and quality. The focus will be on cost management and strategic market positioning to navigate economic pressures effectively.
Conclusion
The Dixie Group's mission statement emphasizes quality, sustainability, and customer satisfaction. As the company adapts to market conditions, it remains focused on delivering value and enhancing its operational capabilities.
How The Dixie Group, Inc. (DXYN) Works
Company Overview
The Dixie Group, Inc. operates primarily in the floorcovering industry, offering a wide range of products including carpets, rugs, and luxury vinyl flooring. The company focuses on both residential and commercial markets, positioning itself as a provider of high-quality flooring solutions.
Financial Performance
As of September 28, 2024, The Dixie Group reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $64,877,000 | $68,576,000 | $200,638,000 | $209,669,000 |
| Cost of Sales | $48,947,000 | $50,341,000 | $149,085,000 | $153,821,000 |
| Gross Profit | $15,930,000 | $18,235,000 | $51,553,000 | $55,848,000 |
| Selling & Administrative Expenses | $17,561,000 | $18,743,000 | $51,309,000 | $54,195,000 |
| Operating Loss | $(2,107,000) | $(913,000) | $(669,000) | $(354,000) |
| Net Loss | $(3,911,000) | $(2,394,000) | $(5,802,000) | $(5,878,000) |
| BASIC EPS | $(0.27) | $(0.16) | $(0.39) | $(0.40) |
Operational Insights
The company has been facing challenges due to declining demand in the floorcovering industry, influenced by high interest rates and inflationary pressures. In the first nine months of 2024, net sales from continuing operations decreased by 4.3% compared to the same period in 2023.
Cost Structure
The cost structure has also been affected, with the cost of sales as a percentage of net sales increasing from 73.4% in 2023 to 74.3% in 2024. This reflects the pressures on margins due to rising operational costs.
Liquidity and Capital Resources
As of September 28, 2024, The Dixie Group had the following liquidity metrics:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $1,053,000 |
| Net Cash Used in Operating Activities | $(497,000) |
| Net Cash Provided by Financing Activities | $3,631,000 |
| Borrowing Availability | $11,716,000 |
Debt and Interest Obligations
The company has significant long-term debt obligations, with total long-term debt amounting to $83,733,000 as of September 28, 2024. The weighted average interest rate on borrowings was reported at 7.93%.
Stock Performance and Market Listing
Due to non-compliance with Nasdaq Marketplace Rule 5550(a)(2), The Dixie Group's common stock was delisted from Nasdaq and began trading on the Over-the-Counter Market pink sheets under the symbol DXYN effective October 3, 2024.
Future Outlook
Looking ahead, the company aims to improve its operational efficiency through cost reduction initiatives and restructuring plans implemented in previous years. The company continues to evaluate its financial strategies in light of ongoing market challenges.
How The Dixie Group, Inc. (DXYN) Makes Money
Revenue Sources
The Dixie Group generates revenue primarily through the sale of floorcovering products and processing services. The breakdown of net sales for the three and nine months ended September 28, 2024, is as follows:
| Product/Service | Three Months Ended September 28, 2024 ($ in thousands) | Three Months Ended September 30, 2023 ($ in thousands) | Nine Months Ended September 28, 2024 ($ in thousands) | Nine Months Ended September 30, 2023 ($ in thousands) |
|---|---|---|---|---|
| Residential floorcovering products | 63,931 | 67,659 | 197,836 | 206,515 |
| Other services | 946 | 917 | 2,802 | 3,154 |
| Total net sales | 64,877 | 68,576 | 200,638 | 209,669 |
Cost Structure
In the first nine months of 2024, the cost of sales represented 74.3% of net sales, reflecting an increase from 73.4% in the same period of 2023. The cost of sales and gross profit are detailed below:
| Metric | Nine Months Ended September 28, 2024 ($ in thousands) | Nine Months Ended September 30, 2023 ($ in thousands) |
|---|---|---|
| Cost of sales | 149,085 | 153,821 |
| Gross profit | 51,553 | 55,848 |
Operating Expenses
Selling and administrative expenses for the first nine months of 2024 totaled $51.3 million, accounting for 25.6% of net sales, compared to $54.2 million or 25.9% of net sales in the prior year. A summary of operating expenses is as follows:
| Expense Type | Amount ($ in thousands) | Percentage of Net Sales |
|---|---|---|
| Selling and administrative expenses | 51,309 | 25.6% |
| Other operating (income) expense, net | 141 | - |
| Facility consolidation and severance expenses, net | 772 | 0.4% |
Profitability Metrics
The operating loss for the first nine months of 2024 was $669 thousand, compared to a loss of $354 thousand in the same period in 2023. The following table summarizes key profitability metrics:
| Metric | Amount ($ in thousands) |
|---|---|
| Operating loss | (669) |
| Net loss from continuing operations | (5,473) |
| Net loss from discontinued operations | (329) |
| Total net loss | (5,802) |
Cash Flow and Financing Activities
For the nine months ended September 28, 2024, cash used in operating activities was $497 thousand. The company had net borrowings on its revolving credit facility amounting to $7.2 million. A summary of cash flows from financing activities is presented below:
| Cash Flow Activity | Amount ($ in thousands) |
|---|---|
| Net borrowings on revolving credit facility | 7,214 |
| Payments on notes payable | (3,430) |
| Repurchases of Common Stock | (581) |
| Total cash provided by financing activities | 3,631 |
Market Conditions and Challenges
The company faces ongoing challenges including high interest rates and inflation, which have impacted demand for floorcovering products. For the first nine months of 2024, net sales decreased by 4.3% compared to the previous year, primarily due to these market conditions.
| Market Condition | Impact |
|---|---|
| High interest rates | Lower demand |
| Inflation | Increased costs |
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Article updated on 8 Nov 2024
Resources:
- The Dixie Group, Inc. (DXYN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Dixie Group, Inc. (DXYN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Dixie Group, Inc. (DXYN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.