Dixie Group Q1 Sales Up 7.1%
Dalton, GA, May 18, 2021-The Dixie Group reported net sales of $86.3 million for Q1 2021, an increase of 7.1% compared to $80.6 million in Q1 2020.
The loss from continuing operations for Q1 2021 was $2.0 million, as compared to a loss from continuing operations of $2.6 million in Q1 2020.
Debt decreased by $2.1 million during the quarter.
Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "Our first quarter started on December 27, 2020 resulting in a slow start for our fiscal year. However, business continued to strengthen into February and March, and finished much stronger than January and last year. The recovery of sales in the residential markets, which began in the second quarter of 2020, has continued through the first quarter of 2021. Sales volume in the commercial markets has continued to be at lower levels. Many of the cost reductions implemented in the second quarter of 2020 as part of our COVID-19 recovery plan have been made permanent even as sales volumes improve. Despite the improvement in sales activity, we cannot be certain as to any additional future impact of the COVID-19 crisis. During the first quarter of 2021, our net sales increased 7.1% compared with the first quarter of 2020. Our residential product sales were up 23% for the quarter as compared to the prior year while the industry, we believe, was up approximately 20%. Commercial product sales decreased 37% versus the prior year quarter while the industry, we believe, experienced a decrease of approximately 18%.
“Building on the momentum from late 2020, the first quarter provided a very strong start to the year for our residential business. Our soft surface business grew 18% and our hard surface business grew 70% in comparison to the same period in the prior year. Business is strengthening even further in the early part of the second quarter of 2021, and we are working very hard to maintain great service levels for our customers.
“Our hard surface programs continued to outpace the market, with Trucor luxury vinyl segment posting 70% growth for the quarter.
“Our commercial business and the commercial market continues to be adversely impacted by COVID-19. Sales for the quarter were down 37% from the previous year, but order entry began to improve and was only down 20%. We are beginning to see improvement, but we believe the recovery will be longer coming and not as dynamic as the residential market recovery.
“On April 17, 2021, the Company identified that devices in its network were encrypted with ransomware. The Company immediately initiated its response protocols and launched an investigation, and a forensic firm was engaged. The Company also notified law enforcement and is working to support its investigation. The manufacturing and distribution activities of the Company were substantially restored within the first week after the incident and were completely restored within ten days. The Company's website and email servers remain offline as the restoration efforts and forensic investigation continue. Despite this incident, we have been able to service our customers with relatively few interruptions.”
Related Topics:The Dixie Group