Dixie Reports First Annual Profit Since 2008

Chattanooga, TN, March 8, 2012 -- The Dixie Group said that 2011 was its first profitable year since the downturn began in 2008.

For the fiscal year ended December 31, income from continuing operations was $1.27 million, or $0.10 per share, compared with a loss from continuing operations of $4.37 million, or $0.35 per share, for 2010.

Excluding items related to the company’s refinancing, non-GAAP income from continuing operations was $1,466,000, or $0.12 per share, for 2011.

Net sales for 2011 were $270.1 million, up 15% over the prior year on a non-GAAP adjusted comparable 52 week basis.

Sales increased 17% from $231.3 million in the prior year on a fiscal basis.

In the fourth quarter, the company had sales of $65.3 million and a loss from continuing operations of $203,000, or $0.02 per share, compared with sales of $65.1 million and income from continuing operations of $638,000, or $0.05 per share for the fourth quarter of 2010.

“The year of 2011 was our first profitable year since the downturn began in 2008 and evidence of the continued recovery in the upper end of the market that began in 2010," said CEO Daniel K. Frierson in a press release.

"Since the bottom of the downturn in 2009, Dixie’s sales are up 33% while the industry is up less than 5%. This is further evidence that the luxury end of the market is returning faster than the overall soft floorcovering market. For 2011, Dixie’s total carpet sales were up about 15% while the industry was up in the low single digits."

Frierson said that residential sales were up over 8% in the fourth quarter while commercial sales were hurt by a slower fourth quarter. However, he said he believes Dixie will continue to have above-industry average sales growth into 2012.

For the year, Dixie's loss from discontinued operations was $286,000, or $0.02 per share, compared with a loss from discontinued operations of $281,000, or $0.02 per share, for the prior year.

Including discontinued operations, the Dixie reported net income of $986,000, or $0.08 per share for the year compared with a net loss of $4.6 million, or $0.37 per share, for the year-earlier period.

For the quarter, the loss from discontinued operations was $158,000, or $0.01 per share compared to a loss of $122,000, or $0.01 per share for 2010.

Including discontinued operations, the Dixie reported a net loss of $361,000, or $0.03 per share, for the fourth quarter of 2011 compared with net income of $516,000, or $0.04 per share, for the year-earlier period.