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Various swings in Dixie's sales activity; will raise carpet price
10 Mar '11
5 min read
"During the year, we saw various swings in sales activity, which have required us to become more efficient in handling volume fluctuations in the facilities. We focused in 2010 on improving our operating capabilities in these areas. The results of these efforts should show up in 2011 with improved operational responsiveness, tighter cost controls and improved inventory and asset leverage.
"Our plans to improve inventory turns and limit capital expenditures have continued. Inventory turns improved 9% compared with 2009. Capital expenditures for the year were $1,771,000, or 15% of depreciation and amortization. Total debt was reduced $2.6 million during the year to $65.2 million, primarily due to lower capital expenditures.
"Raw material prices have continued to escalate; therefore, carpet price increases have been announced for both residential and commercial products, which will be effective in the first quarter.
"We have continued to emphasize new product introductions that we believe better position us for growth as the market improves. During the year, we experienced solid growth in our new wool collections at the upper end and strong growth from our value oriented Stainmaster products as well as our Durasilk polyester products in the residential market. We have been able to take advantage of new technologies, such as the ColorTron hollow needle tufting technology that provides a woven look with tufting flexibility. This and other new technologies enable us to offer differentiated products that separate us from the competition.
"We have seen the commercial business recover over the past two quarters, led by the shift to modular carpet tile. We see continued growth in the upper end of the residential business return ahead of the general market as evidenced by our results in the fourth quarter. We are cautiously optimistic that 2011 will be a year of steady growth as we recover from the unprecedented downturn of the last few years," Frierson concluded.
The Company's loss from discontinued operations was $122,000, or $0.01 per diluted share, for the fourth quarter of 2010, compared with a loss from discontinued operations of $206,000, or $0.02 per diluted share, for the prior year. Including discontinued operations, the Company reported a net income of $516,000, or $0.04 per diluted share, for the fourth quarter of 2010 compared with a net loss of $3,623,000, or $0.29 per diluted share, for the year-earlier period.
For the year of 2010, the loss from discontinued operations was $281,000 or $0.02 per diluted share compared to a loss of $382,000 or $0.03 per diluted share for 2009. Including discontinued operations, the Company reported a net loss of $4,654,000, or $0.37 per diluted share, for the fiscal 2010 compared with net loss of $42,241,000, or $3.42 per diluted share, for the year-earlier period.
Restatement of Financial Results -- The Dixie Group, Inc. and its subsidiaries' Consolidated Financial Statements for the fiscal years ended December 26, 2009, and December 27, 2008, have been restated to correct errors related to reserves for environmental liabilities and Canadian import duties, the effects of which are not believed to be material.
"Our plans to improve inventory turns and limit capital expenditures have continued. Inventory turns improved 9% compared with 2009. Capital expenditures for the year were $1,771,000, or 15% of depreciation and amortization. Total debt was reduced $2.6 million during the year to $65.2 million, primarily due to lower capital expenditures.
"Raw material prices have continued to escalate; therefore, carpet price increases have been announced for both residential and commercial products, which will be effective in the first quarter.
"We have continued to emphasize new product introductions that we believe better position us for growth as the market improves. During the year, we experienced solid growth in our new wool collections at the upper end and strong growth from our value oriented Stainmaster products as well as our Durasilk polyester products in the residential market. We have been able to take advantage of new technologies, such as the ColorTron hollow needle tufting technology that provides a woven look with tufting flexibility. This and other new technologies enable us to offer differentiated products that separate us from the competition.
"We have seen the commercial business recover over the past two quarters, led by the shift to modular carpet tile. We see continued growth in the upper end of the residential business return ahead of the general market as evidenced by our results in the fourth quarter. We are cautiously optimistic that 2011 will be a year of steady growth as we recover from the unprecedented downturn of the last few years," Frierson concluded.
The Company's loss from discontinued operations was $122,000, or $0.01 per diluted share, for the fourth quarter of 2010, compared with a loss from discontinued operations of $206,000, or $0.02 per diluted share, for the prior year. Including discontinued operations, the Company reported a net income of $516,000, or $0.04 per diluted share, for the fourth quarter of 2010 compared with a net loss of $3,623,000, or $0.29 per diluted share, for the year-earlier period.
For the year of 2010, the loss from discontinued operations was $281,000 or $0.02 per diluted share compared to a loss of $382,000 or $0.03 per diluted share for 2009. Including discontinued operations, the Company reported a net loss of $4,654,000, or $0.37 per diluted share, for the fiscal 2010 compared with net loss of $42,241,000, or $3.42 per diluted share, for the year-earlier period.
Restatement of Financial Results -- The Dixie Group, Inc. and its subsidiaries' Consolidated Financial Statements for the fiscal years ended December 26, 2009, and December 27, 2008, have been restated to correct errors related to reserves for environmental liabilities and Canadian import duties, the effects of which are not believed to be material.
The Dixie Group Inc
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