Dixie Group Sales Down 4.7% in Q2, Earnings Positive

Dalton, GA, August 8, 2024-Dixie Group reported Q2 2024 net sales were $70.5 million, a 4.7% decline compared to $74.0 million in the same period of the prior year.

The company had a net income from continuing operations of $0.7 million in Q2 2024 compared to a net loss of $1.6 million in the same period of the prior year.

Subsequent to quarter end, the company completed a 10-year sublease agreement to lease out all of the available warehouse space in its Saraland, Alabama facility. The company will recognize an annual amount of approximately $1.8 million in other income over the term of the lease.

For the first six months of 2024, net sales were $135.8 million or 3.8% below the net sales for the same period of 2023 at $141.1million.

The company had a net loss of $1.7 million for the first six months of 2024 compared to a net loss of $3.2 million in the first six months of 2023.

Dixie Group has reduced its costs by $47.5 million over past two years, according to an investor presentation released today.

Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "High interest rates affecting the housing and home remodeling market and the impact on the economy from continued inflation continue to negatively impact our overall sales volume. Net sales from soft surfaces during the quarter were less than 1% below prior year while the industry, we believe, was down approximately 5.4%. We saw favorable margins in the second quarter as a result of the consolidation of our manufacturing operations on the East Coast and other cost savings initiatives, including the start of operations on our new extrusion line. The successful start up of our extrusion line provides us with raw materials at lower costs, as compared to our current external purchasing, and also provides a continuity of supply, protecting us and our customers from potential supply disruptions.”