Various swings in Dixie's sales activity; will raise carpet price
The Dixie Group Inc reported financial results for the fourth quarter and fiscal year ended December 25, 2010. In the fourth quarter of 2010, the Company had sales of $65,134,000 and income from continuing operations of $638,000, or $0.05 per diluted share, compared with a loss from continuing operations of $3,417,000, or $0.27 per diluted share for the fourth quarter of 2009.
Excluding items related to facility consolidations and impairment of assets, as detailed on the enclosed schedule, non-GAAP income from continuing operations was $1,215,000, or $0.09 per diluted share, for the fourth quarter of 2010, compared with a non-GAAP loss from continuing operations of $1,338,000, or $0.11 per diluted share for the fourth quarter of 2009. Sales for the fourth quarter of 2010 were up 23% from $52,782,000 in the year-earlier quarter.
For the fiscal year ended December 25, 2010, the loss from continuing operations was $4,373,000, or $0.35 per diluted share, compared with a loss from continuing operations of $41,859,000, or $3.39 per diluted share, for the year ended December 26, 2009.
Excluding the items related to facility consolidations and impairment of assets and goodwill, as detailed on the enclosed schedule, the non-GAAP loss from continuing operations was $3,365,000 or $0.27 per diluted share, for fiscal 2010 compared with non-GAAP loss from continuing operations of $9,804,000, or $0.80 per diluted share, for fiscal 2009. Sales for fiscal 2010 were $231,322,000, up 14% from sales of $203,480,000 in the prior year.
Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "The fourth quarter performance was comparatively better than the third quarter and continued the recovery in the upper end of the market that began in 2010. Total carpet sales were up about 23% from the prior-year period giving us positive income from continuing operations for the period.
“Even though the residential market was down for the quarter; our residential sales grew by nearly 22%. In the commercial sector the Company performed well with sales up 22% compared with commercial market sales up nearly 9%. We believe our results show that we are well on our way to achieving profitability at current business activity levels.
"Industry sales were up only a little under 1% for the year, while our sales were up nearly 14%. We believe that the continued investment in new products and market activities allowed us to gain market share during this difficult period. We are pleased with our progress to date and we see continued opportunities in 2011 for further growth in the upper end of the market.
"Starting in 2008 and continuing through 2010, we have taken a number of actions to lower our costs, increase cash flow and position us to be profitable at a lower overall sales volume. We cut fixed and variable costs, significantly reduced inventories and capital expenditures, combined manufacturing operations, realigned our three residential businesses, and reduced our number of associates.