The Dixie Group, Inc. reported its financial results for the three and nine months ended September 28, 2024, showing a decline in net sales and increased operating losses compared to the previous fiscal period. For the third quarter of 2024, net sales were $64.9 million, down 5.4% from $68.6 million in the same quarter of 2023. For the nine months ended September 28, 2024, net sales totaled $200.6 million, a decrease of 4.3% from $209.7 million in the prior year.
Gross profit for the third quarter of 2024 was $15.9 million, representing 24.6% of net sales, compared to $18.2 million and 26.6% in the third quarter of 2023. The decline in gross profit percentage was attributed to lower sales volume, increased healthcare and utility costs, and additional lease expenses from the sale and leaseback of the Adairsville distribution center in 2023. The company reported an operating loss of $2.1 million for the third quarter of 2024, worsening from a loss of $913,000 in the same quarter of the previous year. For the nine-month period, the operating loss was $669,000, compared to a loss of $354,000 in 2023.
The net loss for the third quarter of 2024 was $3.9 million, or $0.26 per share, compared to a loss of $2.4 million, or $0.15 per share, in the third quarter of 2023. For the nine months, the net loss was $5.8 million, or $0.39 per share, slightly improved from a loss of $5.9 million, or $0.40 per share, in the prior year.
The company’s total assets increased to $194.7 million as of September 28, 2024, from $191.2 million at the end of 2023. However, total liabilities also rose to $171.4 million from $161.9 million, leading to a decrease in stockholders' equity from $29.3 million to $23.3 million over the same period.
Strategically, The Dixie Group signed a ten-year sublease agreement for 370,000 square feet of warehouse space in Saraland, Alabama, to replace existing subleases. The company also faced challenges, including a notice from Nasdaq regarding non-compliance with minimum bid price requirements, resulting in its delisting effective October 3, 2024, and subsequent trading on the Over-the-Counter Market under the symbol DXYN.
The company continues to navigate a challenging market environment, with high interest rates and inflation impacting consumer spending and residential remodeling activity. Despite these challenges, The Dixie Group is focused on cost management and productivity improvements to mitigate the effects of a soft housing market.
About DIXIE GROUP INC
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.