“Working capital increased by $5,431,000 during the quarter due to the seasonal rise in preparation for the spring selling season. Capital expenditures were $1,132,000, while depreciation and amortization was $2,402,000 for the period. Total debt increased $5,276,000 during the first quarter. Availability under our credit lines was $18,113,000 at quarter end.
“With uncertainty surrounding the rate of recovery in the housing sector and potential macro-economic issues affecting consumer confidence and the stock market, it is difficult to predict how smoothly the overall floorcovering market will recover. We believe that conditions in the upper-end residential portion of our industry should continue to grow while having challenges in the mid-market price points. The commercial market does not appear to have regained its footing since the surge in business at this time a year ago.
However, we are committed to continue our emphasis to growing our market presence with new innovative products,” Frierson concluded.
The Company's loss from discontinued operations was $77,000, or $0.00 per diluted share, for the first quarter of 2012, compared with a loss from discontinued operations of $21,000, or $0.00 per diluted share, for the prior year.
Including discontinued operations, the Company reported a net loss of $181,000, or $0.01 per diluted share, for the first quarter of 2012 compared with net income of $623,000, or $0.05 per diluted share, for the year-earlier period.
The Dixie Group is a leading marketer and manufacturer of carpet and rugs to higher-end residential and commercial customers through the Fabrica International, Masland Carpets, Dixie Home, Masland Contract and Whitespace brands.