Residential carpet sales down 12.1% at Dixie Group

01 Nov '08

4 min read

In October of this year the Company amended its $84.6 million senior loan and security agreement to extend its term to May 11, 2013. The available credit and structure of the facility are substantially unchanged, but interest rates applicable to the facility were increased approximately 0.5% to current market rates.

During the third quarter of this year, the Company purchased 237,186 shares of its Common Stock at an average price of $5.97 per share, pursuant to the Company's previously authorized stock repurchase program. At the end of the third quarter, the Company discontinued its 10b-18 Common Stock repurchase plan to maintain a conservative capital structure during this period of uncertainty.

Additional repurchases of the Company's Common Stock may be made based on management's review of developing economic conditions.

The Company's loss from discontinued operations was $101,000, or $0.01 per diluted share, for the third quarter of 2008, compared with income from discontinued operations of $9,000, or $0.00 per diluted share, for the third quarter of 2007. Including discontinued operations, the Company reported a net loss of $833,000, or $0.07 per diluted share, for the third quarter of 2008 compared with net income of $2,248,000, or $0.17 per diluted share, for the third quarter of 2007.

For the nine-month period in 2008, the Company's loss from discontinued operations was $167,000, or $0.01 per diluted share, compared with a loss of $175,000, or $0.02 per diluted share, in the prior-year period. Including discontinued operations, the Company reported net income of $466,000, or $0.04 per diluted share, for the nine months ended September 27, 2008, compared with net income of $4,857,000, or $0.37 per diluted share, for the year-earlier period.

The Dixie Group (www.thedixiegroup.com) is a leading marketer and manufacturer of carpet and rugs to higher-end residential and commercial customers through the Fabrica International, Masland Carpets and Dixie Home brands.

The Dixie Group Inc.

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