Income from continuing operations was $1,226,000, or $0.08 per fully diluted share, for the second quarter of 2017 as compared to income from continuing operations of $1,615,000, or $0.10 per fully diluted share, in the second quarter of 2016.
Dixie Group’s results for the quarter and the year to date were favourably impacted by the higher level of sales. It had a price increase in the first quarter and a second price increase late in the second quarter, as did the industry. Offsetting these gains were higher raw material and medical costs. In addition, during this time period the company had over one million dollars in startup expenses of expanded Colormaster dyeing and Atmore yarn and tile coating operations. These expansions are now fully operational, said the company in a press release.
With the recognition that the carpet industry is tight with respect to yarn manufacturing due to higher face weights and tighter twist construction, Dixie Group purchased the operating machinery of Royalty’s Porterville carpet yarn manufacturing operation. Production will start in Porterville at the beginning of August and the company will shift most of its west coast yarn demand to this facility.
Capital expenditures for the second quarter, including those funded by cash and financings, were $2.7 million and the company anticipates a total of $13 million in capital expenditures for 2017 compared to depreciation and amortisation of $13.5 million for 2017. It raised the estimated capital expenditures by taking advantage of expanding the west coast business due to the opportunity created by Royalty Carpet Mills choosing to cease operations.
Accessible availability under the credit lines was $22 million at the end of the second quarter while debt stood at $123.7 million at the end of the second quarter, an increase of $3.1 million in the quarter.
“Our commercial product sales for the quarter were flat while the market was down in the low single digits. Further, our commercial product sales were up 5 per cent for the year to date relative to 2016 while the industry, we estimate, was down low single digits. Our residential products were up 5.4 per cent for the quarter as compared to the second quarter of 2016 with the industry being up in the low single digit range. For the six-month period ending in June our residential product sales were up 8.7 per cent compared to the same time period in 2016 while the industry, we believe, was up only in the low single digits,” said Daniel K Frierson, chairman and chief executive officer, Dixie Group. (KD)
Fibre2Fashion News Desk – India
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