Dixie Group Reports Loss on Higher Sales

Chattanooga, TN, Feb. 18, 2015 -- The Dixie Group, Inc. reported a fourth quarter net loss of $5.2 million, compared to a profit of $1.59 million a year ago.

For the year, Dixie reported a loss of $1.4 million.

The company reported net sales of $104.5 million for the quarter, up from $94.3 million a year ago.

For the year, Dixie had sales of $406.5 million compared to $344.3 million in 2013.

“For the year of 2014, our sales increase was 18.1% compared to 2013," said CEO Daniel Frierson in the report.

"Without the acquisition of Atlas, our sales growth was 7.1% for the year as compared to the prior year, while the industry experienced little or no growth. Our residential product sales were up 8.2% for the year compared to 2013, while the industry, we estimate, was down in the low-single digit range. The year-over-year sales increase in commercial products, without Atlas, was 5.5% as compared with an estimated market growth in the low single digits for 2014. With Atlas included, our commercial sales growth was 45.5% for the year of 2014 versus the prior year."

Frierson said gross profit margins were affected by restructuring, capacity expansion and the integration of the Atlas and Burtco acquisitions.

He said carpet sales for the first six weeks of the year are up 20% over a year ago.