ICS Magazine

The Dixie Group reports fourth quarter, year-end results

February 18, 2002
The Dixie Group, Inc. reported net income of $2.8 million for the fourth quarter ended Dec. 29, 2001. For the same period in 2000, Dixie reported a net loss from continuing operations of $6.5 million.

CHATTANOOGA, Tenn. -- The Dixie Group, Inc. (Nasdaq/NM:DXYN) reported net income of $2.8 million, or 24-cents per diluted share, for the fourth quarter ended Dec. 29, 2001. For the same period in 2000, Dixie reported a net loss from continuing operations of $6.5 million, or 57-cents per diluted share. Net sales were $123.7 million in the fourth quarter of 2001, compared with net sales of $136.9 million in the year-earlier period.

For the year ended Dec. 29, 2001, the company reported net income of $517,000, compared with a net loss from continuing operations of $10.2 million in 2000. Net sales for 2001 were $534.6 million, compared with net sales of $568.1 million in 2000.

"The year 2001 was a period in which we dealt with the problems identified in 2000. In a tough economic environment, we consolidated operations and returned to profitability. We made progress in nearly all areas of measurement," said Daniel K. Frierson, chairman and CEO. "Since mid-year 2000, we have reduced our workforce by 25 percent, our inventories by 26 percent, and our debt by 27 percent.

"We are moving forward to refinance our senior credit facility with a goal of having a new credit facility in place in the first half of 2002," he said. "Our debt, including amounts advanced under the company's accounts receivables securitization program, was reduced another $22.2 million during the fourth quarter. The debt reduction was accomplished by tight control of working capital and capital spending, and $4.1 million of proceeds from the sale of real estate."

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.