Dixie Group sales marginally down 1.4% in FY 2012

"In the residential market in 2013, we will build on the successful product introductions we had in 2012. We are excited about the continued success of our new Stainmaster products using TruSoft, the new standard of "soft" in the floorcovering market and SolarMax, with its inherent stain and fade resistance. In addition, we will continue to expand our product offering using our wool "permaset" process giving the designer unlimited color flexibility.

"From a financial perspective in 2012, gross margins improved slightly, despite added expenses due to the ongoing manufacturing re-alignment and integration costs associated with the Colormaster acquisition. Our capital expenditures consisted of $4 million in expenditures for normal operational needs and $9 million for the Colormaster and rug asset acquisitions. Our depreciation and amortization for 2012 was $9.4 million. For 2013, we anticipate capital expenditures of $8 million as compared to depreciation and amortization of $10 million.

"We see 2013 as a positive year of growth as we implement new initiatives both operationally and in the sales and marketing areas. We will continue to emphasize new product introductions and expanded presence on the retail floor to better position us for growth as the market improves. We are optimistic about 2013 and that this is the year in which the industry should finally gain momentum after the longest downturn we have ever experienced. As always we are dedicated to continue to supply our customers with beautiful products of the highest quality," Frierson concluded.

For the year, the Company's loss from discontinued operations was $274,000, or $0.02 per diluted share, compared with a loss from discontinued operations of $286,000, or $0.02 per diluted share, for the prior year. Including discontinued operations, the Company reported a net loss of $927,000, or $0.07 per diluted share for the year of 2012, compared with a net income of $986,000, or $0.08 per diluted share, for the year-earlier period.

For the fourth quarter of 2012, the loss from discontinued operations was $2,000, or $0.00 per diluted share, compared to a loss from discontinued operations of $158,000, or $0.01 per diluted share for 2011. Including discontinued operations, the Company reported a net loss of $415,000, or $0.03 per diluted share, for the fourth quarter of 2012, compared with net loss of $361,000, or $0.03 per diluted share, for the year-earlier 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, and Masland Contract brands.

Dixie Group