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Dixie Home shows significant growth in Durasilk products
02 Aug '10
4 min read
"Our cost reduction efforts continue as we work to make progress to return to profitability during this uncertain period in the marketplace. We have seen improvement in our results as we had a positive non-GAAP operating income, adjusted for facility consolidation and severance expenses, of $181,000, for the second quarter as compared to a loss on the same basis of $341,000, for the second quarter of 2009. We plan to continue to drive down costs through strict controls on overtime, spending and improved operating efficiencies as we reap the benefits of returning our tufting and yarn operations to full staffing during the second quarter.
"Though the consolidation of our West Coast facilities is physically complete, we continue to incur facility costs for our Pullman facility and software integration charges. We continue to offer the Pullman facility for sublease.
"Our inventories and receivables grew during the period to support the higher level of sales. Despite the increases, our inventory turns improved 10% over the prior quarter and 27% versus the same period a year ago as part of our efforts to improve utilization of working capital. Capital expenditures for the first six months were a relatively modest $247,000. We still anticipate total capital expenditures for the year will be approximately $3.0 million compared to $11.7 million of depreciation and amortization. Availability under our loan agreements was $10.7 million at the end of the quarter.
"We are committed to return to profitability as we support those market segments and product lines that are experiencing growth. Despite a weakening of sales during June as compared to the rest of the quarter, we anticipate a recovering residential market ahead of the commercial sector. We are moving forward with product introductions in design-oriented rug, wool, Stainmaster and Durasilk products. We continue the diligent pursuit of profitable growth opportunities while controlling costs and minimizing capital expenditures," concluded Frierson.
"Though the consolidation of our West Coast facilities is physically complete, we continue to incur facility costs for our Pullman facility and software integration charges. We continue to offer the Pullman facility for sublease.
"Our inventories and receivables grew during the period to support the higher level of sales. Despite the increases, our inventory turns improved 10% over the prior quarter and 27% versus the same period a year ago as part of our efforts to improve utilization of working capital. Capital expenditures for the first six months were a relatively modest $247,000. We still anticipate total capital expenditures for the year will be approximately $3.0 million compared to $11.7 million of depreciation and amortization. Availability under our loan agreements was $10.7 million at the end of the quarter.
"We are committed to return to profitability as we support those market segments and product lines that are experiencing growth. Despite a weakening of sales during June as compared to the rest of the quarter, we anticipate a recovering residential market ahead of the commercial sector. We are moving forward with product introductions in design-oriented rug, wool, Stainmaster and Durasilk products. We continue the diligent pursuit of profitable growth opportunities while controlling costs and minimizing capital expenditures," concluded Frierson.
The Dixie Group Inc
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