Dixie extends Credit Agreement waiver
CHATTANOOGA, Tenn. --The Dixie Group, Inc. (NASDAQ/NM:DXYN) said its senior lenders have extended the waiver of compliance with certain financial covenants of the Company's senior credit agreement until Nov. 30.
The company said its discussions with its senior lenders were interrupted and delayed as a result of the tragedy on Sept.11, 2001.
'We continued to improve our balance sheet, streamline our cost structure and remain profitable in a slowing economy,' said Daniel K. Frierson, chairman and chief executive officer. 'Total sales in the third quarter 2001 will be down approximately 11 percent from a year ago; 8 percent in our carpet operations, due primarily to weaker demand in our markets. Sales to higher-end markets served by Masland and Fabrica continue to be the least affected by the economic downturn. Our focus remains on delivering value to our customers, simplifying operations, improving profitability and reducing debt."
The Dixie Group is scheduled to report results for the third quarter on Oct. 30.
The Dixie Group (www.thedixiegroup.com) is a leading carpet and rug manufacturer and supplier to higher-end residential and commercial customers serviced by Masland Carpets and Fabrica International, to consumers through major retailers under the Bretlin, Globaltex and Alliance Mills brands and to the factory-built housing and recreational vehicle markets through Carriage Carpets. Dixie's Candlewick Yarns serves specialty carpet yarn customers.