“We spent over $300,000 during the quarter to implement this change and over $1 million year-to-date. Our selling, general and administrative expenses were 24.0% of net sales for the quarter, compared to 20.8% in the year-ago period. This higher expense is partially due to our heavy investment this year in added sampling expenses with the launch of the line of Stainmaster TruSoft products as we continue to pursue above industry growth.

"Capital expenditures were $2.0 million year-to-date while our depreciation and amortization were $7.1 million year-to-date. Including the acquisition of the Colormaster continuous dye-house we purchased early in November, we anticipate capital investments to be approximately $9.5 million for the year.

“The acquisition of the Colormaster facility will have a negative effect on earnings during the transition period as we ramp up production to take advantage of the more efficient dye capabilities of the facility. Our working capital rose slightly during the quarter, primarily due to higher accounts receivable. Our total debt was $75.8 million and our availability under our credit lines stood at $20.2 million as of quarter end.

"The fourth quarter is coming in stronger than the weaker summer months as we have seen positive signs in the housing market beginning to take effect. We still believe that the upper-end residential market will continue to outperform the market in general.

“We have renewed vigor in the commercial market under our new management team and with our new line of Speak modular carpet tile products. Our continued emphasis on operational efficiency and the coming integration of the Colormaster facility will help us to expand our product offerings to position us for continued growth," Frierson concluded.

The company's loss from discontinued operations was $167,000, or $0.01 per diluted share, for the third quarter of 2012, compared with a loss from discontinued operations of $65,000, or $0.00 per diluted share, for the prior year. Including discontinued operations, the company reported a net income of $102,000, or $0.01 per diluted share, for the third quarter of 2012, compared with net loss of $43,000, or $0.00 per diluted share, for the year-earlier period.

The company's loss from discontinued operations was $272,000, or $0.02 per diluted share, for the nine months ended September 29, 2012, compared with a loss from discontinued operations of $127,000, or $0.01 per diluted share, for the nine-month period ended October 1, 2011. Including discontinued operations, the company reported a net loss of $512,000 or $0.04 per diluted share, for the first nine months of 2012, compared with a net income of $1,347,000, or $0.10 per diluted share, for the prior period.

Dixie Group Inc.