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Dixie sees strong growth in second quarter
05 Aug '11
6 min read
"As we saw the industry slowdown late in the second quarter, we maintained a tight rein on running schedules, inventories and overtime; however, we have continued to see growth in all of our brands in the first four weeks of the third quarter.
"Capital expenditures were $2.1 million for the year-to-date, while depreciation and amortization was $4.9 million. We continue to underspend our depreciation and amortization levels. We anticipate total capital expenditures of $6.2 million for the year, the bulk of which will be used to expand our capacity and capabilities in our yarn operations. Total debt, which normally rises during the middle of the year, increased by $4.0 million during the quarter to $72.3 million.
We recorded a gain of $563,000 in our facility consolidation and severance expense primarily due to the settlement of the lease on our Pullman facility, thus completing the last of the restructuring plans initiated during the recent economic downturn. The unused borrowing capacity under our credit lines was $11.3 million as of July 2, 2011, and $14.8 million as of August 3, 2011. We are in the due diligence phase with potential lenders regarding the replacement of our current revolving and term credit agreements. The purpose of such transactions is to repay the $9.7 million of convertible subordinated debentures due in May of 2012, to extend our financing for another five-year period and to provide the funding needed to continue our growth.
"Continued uncertainty in the economy, along with a stubbornly high unemployment rate and a weak housing recovery, will likely remain through the rest of the year. We continue to invest, however, in new products and processes as we maintain our goal of being the fashion leader in the industry. We feel that the continued investment in beautiful products, responsive operations and strong controls over expenses are the formulas needed to be able to continue to outgrow the industry during these uncertain times," Frierson concluded.
The Company's loss from discontinued operations was $42,000, or $0.00 per diluted share, for the second quarter of 2011, compared with a loss from discontinued operations of $60,000, or $0.01 per diluted share, for the prior year. Including discontinued operations, the Company reported net income of $766,000, or $0.06 per diluted share, for the second quarter of 2011 compared with a net loss of $744,000, or $0.06 per diluted share, for the year-earlier period.
The Company's loss from discontinued operations was $62,000, or $0.00 per diluted share, for the six months ended July 2, 2011, compared with a loss from discontinued operations of $130,000, or $0.01 per diluted share, for the six-month period ended June 26, 2010. Including discontinued operations, the Company reported net income of $1,390,000 of $0.11 per diluted share, for the first six months of 2011 compared with a net loss of $3,273,000, or $0.26 per diluted share, for the prior period.
The Dixie Group is a leading marketer and manufacturer of carpet and rugs to higher-end residential and commercial customers through the Fabrica International, Masland Carpets, Dixie Home, Masland Contract and Whitespace brands.
"Capital expenditures were $2.1 million for the year-to-date, while depreciation and amortization was $4.9 million. We continue to underspend our depreciation and amortization levels. We anticipate total capital expenditures of $6.2 million for the year, the bulk of which will be used to expand our capacity and capabilities in our yarn operations. Total debt, which normally rises during the middle of the year, increased by $4.0 million during the quarter to $72.3 million.
We recorded a gain of $563,000 in our facility consolidation and severance expense primarily due to the settlement of the lease on our Pullman facility, thus completing the last of the restructuring plans initiated during the recent economic downturn. The unused borrowing capacity under our credit lines was $11.3 million as of July 2, 2011, and $14.8 million as of August 3, 2011. We are in the due diligence phase with potential lenders regarding the replacement of our current revolving and term credit agreements. The purpose of such transactions is to repay the $9.7 million of convertible subordinated debentures due in May of 2012, to extend our financing for another five-year period and to provide the funding needed to continue our growth.
"Continued uncertainty in the economy, along with a stubbornly high unemployment rate and a weak housing recovery, will likely remain through the rest of the year. We continue to invest, however, in new products and processes as we maintain our goal of being the fashion leader in the industry. We feel that the continued investment in beautiful products, responsive operations and strong controls over expenses are the formulas needed to be able to continue to outgrow the industry during these uncertain times," Frierson concluded.
The Company's loss from discontinued operations was $42,000, or $0.00 per diluted share, for the second quarter of 2011, compared with a loss from discontinued operations of $60,000, or $0.01 per diluted share, for the prior year. Including discontinued operations, the Company reported net income of $766,000, or $0.06 per diluted share, for the second quarter of 2011 compared with a net loss of $744,000, or $0.06 per diluted share, for the year-earlier period.
The Company's loss from discontinued operations was $62,000, or $0.00 per diluted share, for the six months ended July 2, 2011, compared with a loss from discontinued operations of $130,000, or $0.01 per diluted share, for the six-month period ended June 26, 2010. Including discontinued operations, the Company reported net income of $1,390,000 of $0.11 per diluted share, for the first six months of 2011 compared with a net loss of $3,273,000, or $0.26 per diluted share, for the prior period.
The Dixie Group is a leading marketer and manufacturer of carpet and rugs to higher-end residential and commercial customers through the Fabrica International, Masland Carpets, Dixie Home, Masland Contract and Whitespace brands.
The Dixie Group Inc
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