Home / Knowledge / News / Textiles / Despite 21% sales hike, Dixie Group slips into Q3 loss
Despite 21% sales hike, Dixie Group slips into Q3 loss
03
Nov '14
In the third fiscal quarter ending September 27, 2014, despite posting revenue growth of 21.22% year-on-year, NASDAQ-listed manufacturer of carpet and rugs – The Dixie Group, reported loss from continuing operations.

In the quarter under review, Dixie Group slipped in to a massive loss from continuing operations totalling to $166,000, or $0.01 per diluted share, compared with income from continuing operations of $1,432,000, or $0.11 per diluted share in the third quarter of 2013.

Dixie Group posted revenue growth of 21.22% in the third quarter of 2014, which amounted to $109,359,000 against sales of $90,210,000 in the corresponding quarter of 2013.

“Excluding Atlas Carpet Mills, which was acquired in March, Dixie Group sales were up 7.8% as compared to the same quarter in 2013, while the market remained flat,” the carpet producer said.

It said, income from continuing operations, excluding manufacturing integration, facility consolidation, equipment impairment, and acquisition related expenses, after-tax, was $1,326,000, or $0.08 per diluted share for the period.

Dixie had $2,579,000 in facility consolidation, equipment impairment and acquisition related expenses during the period, as it implements its previously announced plans to expand capacity, integrate acquisitions and streamline operations.

Its residential sales increase in the third quarter was 9.8% ahead of those of the same quarter last year, relative to the market declining in the low single digits on a comparable basis.

Third quarter sales increase for its commercial products was 45.6%, up from the same time period last year. Excluding Atlas, the hike was 1.0% for the third quarter as compared with a strong third quarter of 2013.

Sales for all of Dixie’s brands, other than Atlas Carpet Mills, were up for the third quarter on a year-over-year basis and it anticipates Atlas sales to pick up in 2015 as new product introductions are released later this year.

Dixie Group said, gross profit for the third quarter of 2014 at 24.2% of net sales, was impacted by added costs related to the restructuring activities. SG&A expenses reached 21.9% of sales in the reporting quarter as compared with 22.4% for the same quarter of 2013.

Third quarter of 2014 operating income touched $528,000, while on a non-GAAP basis, operating income was $3.1 million for the quarter.

Current assets increased $3.9 million during the quarter, primarily due to higher levels of trade receivables and deposits on new machinery and equipment.

“As projects are completed in the fourth quarter and interim progress fundings are converted to permanent financing, current debt will decrease by approximately $3.5 million,” it revealed.

Capital expenditures and capital leases for the quarter were $7.0 million, while capital assets purchased in the business combination of Burtco was $2.3 million and depreciation and amortization amounted to $3.3 million in the third quarter of 2014. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Digital textile printing sector to grow by 20% by 2020

Textiles | On 18th Jun 2018

Digital textile printing sector to grow by 20% by 2020

The digital textile printing sector is expected to have a compound...

Courtesy: Hela Clothing

Apparel/Garments | On 18th Jun 2018

Hela's latest label revolves around underwear, sleepwear

The latest collection of Sri Lanka’s Hela Clothing is revolves mostly ...

Kenya levies higher duties on mitumba import

Apparel/Garments | On 18th Jun 2018

Kenya levies higher duties on mitumba import

Kenya’s treasury secretary Henry Rotich recently raised the duty on...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search