Dixie experiences solid growth in wool collections

30 Apr '10

4 min read

"Our plans to improve inventory utilization and reduce capital expenditures have continued. Inventory turns have improved 25% versus a year ago. Capital expenditures for the quarter were $91 thousand compared to depreciation and amortization of $3.0 million for the period. Total debt was reduced $6.8 million during the quarter, ending March 27, 2010 at $61.0 million, due to a federal tax refund and lower capital expenditures. Availability under our loan agreements stood at $15.3 million at the quarter end.

"We experienced solid growth in our wool collections at the upper end and strong growth from our new polyester products in the Dixie Home line. As past experience has shown us, we see the residential business recovering faster than the commercial business. We continue to be diligent in seeking out growth opportunities and still maintain tight cost controls in this slow economic recovery period," Frierson concluded.

The Company's loss from discontinued operations was $70,000, or $0.00 per diluted share, for the first quarter of 2010, compared with a loss from discontinued operations of $116,000, or $0.01 per diluted share, for the prior year. Including discontinued operations, the Company reported a net loss of $2,529,000, or $0.20 per diluted share, for the first quarter of 2010 compared with a net loss of $35,557,000, or $2.91 per diluted share, for the year-earlier period.

The Dixie Group Inc

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