Dixie Group’s 4Q Earnings Slide

Chattanooga, TN, March 02, 2006--The Dixie Group reported income from continuing operations for the fourth quarter of $3.3 million, or $0.25 per diluted share, vs. $5.0 million, or $0.40 per diluted share, for the prior-year period. Net sales for the quarter increased 6% to $87.8 million from $82.6 million in the year-earlier period. For the year, the company reported income of $9.96 million, or $0.77 per share, compared with $14.04 million, or $1.12 per share in 2004. Net sales for the year increased 9% to $318.5 million from $291.9 million in 2004. The fourth quarter and year ended December 31, 2005, contained 14 and 53 weeks, respectively, compared with 13 and 52 weeks, respectively, in the fourth quarter and year ended December, 25, 2004. Results of discontinued operations reflected a loss of $122,000 or $0.01 per diluted share, for the fourth quarter of 2005, compared with a loss of $1,390,000, or $0.11 per diluted share, for the fourth quarter of 2004. For the 2005 year, discontinued operations reflected income of $173,000, or $0.02 per diluted share, compared with a loss of $1,725,000, or $0.14 per diluted share, in the prior year. Including discontinued operations, the company reported net income of $3,132,000, or $0.24 per diluted share, for the fourth quarter of 2005, compared with $3,634,000, or $0.29 per diluted share, for the fourth quarter of 2004. For the 2005 year, net income was $10,136,000, or $0.79 per diluted share, compared with $12,315,000, or $0.98 per diluted share, in 2004. For company comment on this announcement see today's "Dixie CEO Comments" story.