Dixie Group, Inc (THE)
0.6500-0.08 (-11%)
Oct 29, 4:00:00 PM EDT · OTC Markets OTCQB · DXYN · USD
Key Stats
Market Cap
9.89MP/E (TTM)
-Basic EPS (TTM)
-0.73Dividend Yield
0%Recent Filings
10-Q
Q2 FY2025 results
The Dixie Group posted Q2 net sales of $68.6M, down 2.7% y/y but up 11.7% q/q (derived), with gross margins expanding to 29.2% from 28.1% y/y on operational cost cuts. Operating income rose to $3.2M, up 39% y/y, while YTD figures show $131.6M sales off 3.1% y/y and a slim $3.2M operating income versus $1.4M last year; diluted EPS from continuing ops hit $0.08, up from $0.04 y/y, reconciling to 14,589 diluted shares with no anti-dilution flagged. Cash from ops hit $8.7M YTD, yielding $6.5M FCF after $155K capex, but total debt stands at $83.4M including $54.3M current revolver at SOFR+3.75-4.25% maturing 2028, with $13.1M availability above $6M covenant floor—yet going concern doubts linger on covenant risks. Refinanced revolver in Feb 2025 for $75M capacity. Ongoing PFAS suits pose litigation risks.
8-K
Dixie updates amid flooring slump
The Dixie Group updated its investor presentation on August 7, 2025, highlighting a 28.4% drop in U.S. flooring industry sales for the first half of the year amid rising mortgage rates and slumping existing home sales. Yet the company outpaced the market in high-end residential replacement, gaining share through brands like DH Floors and Masland. Cost reductions total $58.6 million from 2023-2025, including $16.5 million in raw materials and $14.8 million in headcount. Pent-up demand awaits rate cuts.
8-K
Q2 profit surges despite sales slip
The Dixie Group swung to a $1.2 million net income in Q2 2025, up from $0.6 million last year, despite a 3% sales dip to $68.6 million amid weak flooring demand from high rates and low confidence. Gross margins climbed to 29.2% through cost cuts yielding $12.6 million in savings, while soft surface sales held flat versus a 7% industry drop. New product launches across brands signal growth bets. Yet debt rose $1.1 million, hiking interest to $1.9 million.
10-Q
Q1 FY2025 results
The Dixie Group eked out a slim operating profit of $11 thousand in Q1 FY2025 ended March 29, 2025, flipping from a $857 thousand loss a year earlier, while net sales dipped 3.5% y/y to $63.0 million amid soft residential demand. Gross margins widened to 26.8% from 24.2%, fueled by operational cost cuts that offset higher healthcare expenses, though selling and administrative costs ticked up to 26.8% of sales. Cash from operations surged to $7.6 million, boosted by $11.5 million in payables timing, yet free cash flow landed at $7.5 million after minimal $74 thousand capex; total debt held at $84.7 million with $12.0 million revolver availability under the new MidCap facility refinanced in February 2025. Diluted EPS loss narrowed to $(0.12) on 14.4 million shares, matching reported figures with no anti-dilution. Net loss exceeded operating loss due to $1.5 million interest and a $66 thousand debt extinguishment. Liquidity looks stretched. Ongoing PFAS litigation in Georgia courts poses a nagging regulatory risk.
8-K
Q1 sales dip, margins rise
The Dixie Group posted Q1 2025 net sales of $63 million, down 3.5% from $65 million a year earlier, amid weak home sales and low consumer confidence. Yet gross margins climbed to 26.8% from 24.2%, driving a slim operating income of $11,000 versus a $857,000 loss last year, thanks to cost cuts and efficiencies. Soft floorcoverings outpaced hard surfaces, boosting market share. The company closed a new three-year, $75 million revolving credit facility with MidCap Financial on February 25, replacing the prior one and securing $12 million in availability. Tariffs pose ongoing volatility for imports.
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