Financial Data and Key Metrics Changes - The gross margin improved by 13 percentage points to 27% of net sales in Q4 2023 compared to 14% in Q4 2022 [3] - Net income for Q4 2023 was $3.2 million, a significant improvement from a loss of $18.5 million in Q4 2022 [9] - For the fiscal year 2023, net sales were $236.3 million, down from $303.6 million in the prior year, reflecting a decrease of 9% [30] - The operating income for 2023 was $5 million compared to an operating loss of $28.2 million in 2022 [12] - The net loss for the year was $2.7 million, an improvement from a net loss of $35.1 million in the previous year [12] Business Line Data and Key Metrics Changes - The company experienced a 7.2% decline in adjusted average weekly sales in 2023 compared to the prior year, primarily due to high interest rates and inflation affecting consumer confidence [10] - Hard surface products now represent about 20% of total sales, indicating growth in this segment [17] - The company invested heavily in displays and samples for its DuraSilk collection, which has seen strong acceptance [18] Market Data and Key Metrics Changes - The flooring industry faced a significant reduction in year-over-year sales volume, with the company gaining market share in its core markets despite a slowdown in the overall industry [8] - The actual square yards of carpets sold by the industry in 2023 were about 20% lower than in 2021, indicating a challenging market environment [36] Company Strategy and Development Direction - The company is focused on minimizing expenses and reducing overhead, with a plan to cut costs by an additional $10 million in 2024 after reducing costs by over $35 million in 2023 [16] - A major initiative includes starting up extrusion capabilities to produce its own nylon yarn, which will provide a more cost-effective source of raw materials [39] - The company aims to leverage its growth initiatives to gain market share, particularly in the hard surface and polyester product offerings [17][18] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry is at a cyclical low point, but they are positioned to take advantage of a future upturn when interest rates recede and housing rebounds [20] - Current business conditions for the first 10 weeks of 2024 show sales slightly behind last year, but orders are in line with expectations [42] Other Important Information - The company recognized a gain of approximately $8 million from the sale and leaseback of its Adairsville facility [32] - The company is celebrating the 50th anniversary of its Fabrica brand, highlighting its commitment to quality and industry leadership [41] Q&A Session All Questions and Answers Question: Can you quantify the market share gained in the soft surface market? - Management indicated that while they cannot provide exact numbers, they have gained market share and noted that carpet has continued to lose market share to hard surfaces [46] Question: What is the Board's goal regarding debt in relation to equity? - The company has made significant progress in reducing debt and is monitoring economic conditions to determine future financing needs [54] Question: Will the company address compliance with NASDAQ efficiency filing dates? - Management confirmed that they will be addressing compliance issues soon [44]

DALTON, GEORGIA (March 8, 2024) -- The Dixie Group, Inc. (NASDAQ: DXYN) today reported financial results for the year ended December 30, 2023. For the year 2023, net sales for the Company were $276,343,000 as compared to $303,570,000 for the fiscal year 2022. Fiscal year 2023 included 52 weeks as compared to the fiscal year 2022 at 53 weeks. On an average weekly basis, sales in 2023 were $5,314,000 per a week compared to $5,728,000 per a week in 2022. The operating income on the year was $5,048,000 compared ...

Financial Data and Key Metrics Changes - For Q3 2023, net sales were $68.6 million, down approximately 4% from $71.8 million in Q3 2022. Net operating income was a loss of $913,000, an improvement from a loss of over $7 million in the same quarter last year. Gross margin improved by over 9 percentage points from 17.5% to 26.6% [3][4][10] - Year-to-date operating income for the first nine months of 2023 was a loss of $354,000, significantly better than a loss of $12.3 million for the same period in 2022. The year-to-date loss included $2.3 million in facility consolidation expenses [3][9] - Net loss for Q3 2023 was $2.4 million compared to a net loss of $8.8 million in the same period last year. Year-to-date net loss was $5.9 million, down from $16.6 million in the prior year [10] Business Line Data and Key Metrics Changes - Sales decline was partially attributed to a loss in volume in the mass merchant channel due to a strategic shift by the largest mass merchant customer towards lower price point offerings [5][6] - The company has continued to invest in hard surface initiatives and broadened its product offerings, gaining retail floor space and market share despite overall industry challenges [13][14] Market Data and Key Metrics Changes - The housing market remains constrained due to limited supply, high interest rates, and inflation, leading to a weak residential flooring market. The company believes it gained market share despite the overall industry decline [4][6] - The upper end of the market is outperforming the general market, and sales and orders for the first six weeks of Q4 2023 are slightly better than the previous year [15] Company Strategy and Development Direction - The company is focused on managing controllable aspects of the business, including productivity improvements, cost reductions, and restructuring assets to optimize cash flow [12][18] - Plans to begin in-house nylon extrusion in Q1 2024 to mitigate future raw material disruptions and lower costs [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the cyclical downturn in the flooring industry but remains optimistic about a future rebound. They are focused on cost reductions and growth initiatives to position the company for recovery [4][18] - The company expects to continue lowering costs into the next year while investing in growth initiatives that will positively impact sales once the market improves [35] Other Important Information - Capital expenditures for Q3 totaled $166,000, with a year-to-date total of $763,000. Total capital expenditures are planned around $1 million for the year [17] - The company reduced debt by over $3 million at the end of Q3 compared to the end of the prior year [14] Q&A Session Summary Question: Anticipated lag time for sales increase following interest rate decreases - Management indicated that remodeling typically precedes home resales, and a significant decrease in interest rates would likely result in a shorter lag time for sales increases [16][22] Question: Adjustments made following the loss of Lowe's business - Management confirmed a focus on residential retailers across the country and believes they are gaining market share despite the decline in big box market share [23] Question: Progress on facility consolidation and in-house production - Management detailed the consolidation of manufacturing facilities into lower-cost operations, which has helped reduce overall costs. They expect to incur about $500,000 in remaining consolidation expenses [27][28][29] Question: Status of the Ardennes Ville facility sale leaseback - Management confirmed ongoing efforts to pursue a sale leaseback opportunity for the Ardennes Ville facility, aiming to close a deal by the end of the year [30]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) THE DIXIE GROUP, INC. (Exact name of Registrant as specified in its charter) | Tennessee | | 62-0183370 | | --- | --- | --- | | (State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) | | 475 Reed Road, Dalton, Georgia | 30720 | (706) 876-5800 | | (Address of principal executive offices) | (zip code) | (Registrant's telephone number, including area code) | | | Not Appl ...

Financial Data and Key Metrics Changes - For Q2 2023, net sales were approximately $74 million, down from $83.7 million in Q2 2022, reflecting a year-over-year decline [1][6] - Operating income improved to $253,000 compared to a loss of $2.9 million in the same quarter of the prior year [1][8] - Gross margin for Q2 2023 was 26.7% of net sales, significantly improved from the low 19% range in the prior year [7] - Net loss for the quarter was $1.7 million, an improvement from a net loss of $4.5 million in the same period last year [9] Business Line Data and Key Metrics Changes - The decrease in sales was partially due to a loss of volume in the mass merchant channel, which was affected by the customer's shift to lower price point offerings [2][10] - Excluding mass merchant sales, net sales were down 9.1% for the quarter [10] - Selling and administrative expenses were lower in dollars than the same period in the prior year but higher as a percentage of net sales due to lower sales volume [23] Market Data and Key Metrics Changes - The residential flooring market remains weak due to limited supply, high interest rates, and inflation, with the carpet market down in the mid-teens [21] - Multifamily and new housing segments were stronger than the residential replacement segment [21] Company Strategy and Development Direction - The company is focused on reducing total costs by over $35 million this year and has invested heavily in the hard surface market and decorative products [10][11] - Facility consolidations have better aligned demand and capacity, leading to operational improvements [26] - The company launched 11 new products in synthetic soft surface brands and continued executing its growth strategy with 23 new introductions in decorative brands [27] Management Comments on Operating Environment and Future Outlook - Management noted that the flooring industry is experiencing a cyclical downturn, but they are preparing for a future rebound by cutting costs and improving operations [13][28] - There is optimism regarding order entry for July, which was slightly ahead of the previous year, indicating potential momentum from new product launches [28] Other Important Information - Interest expense for the quarter was $1.8 million, up from $1.1 million in Q2 2022, driven by increased borrowings and higher interest rates [4] - The company incurred $719,000 in expenses related to facility consolidation during Q2 2023 [8] - Capital expenditures for the quarter totaled $238,000, with a planned total of $3 million for the year [24] Q&A Session Summary Question: What is the normalized SG&A number going forward? - Management expects SG&A to be several percentage points lower as a percent of sales [15] Question: How did order entry play out in Q2? - Order entry improved throughout the quarter, with July showing slight growth compared to the previous year [16][37] Question: Will the company be operating cash flow positive in the second half? - Management is optimistic about operating cash flow positivity based on first half results and projections [18] Question: How is market share quantified? - Market share is measured through quarterly sales data received from industry organizations, specifically in the soft surface market [40]

Financial Data and Key Metrics Changes - Net sales for Q1 2023 were approximately $67 million, down from $77.5 million in the same quarter last year, representing a 14% decline [2][6] - Operating income was $300,000 compared to a loss of $2.25 million in Q1 2022, indicating a significant improvement [2][10] - Gross margin improved to 26.6% in Q1 2023 from 19.6% in Q1 2022, driven by restructuring efforts [7][17] - Interest expense increased to $1.9 million from $1.1 million in the prior year due to higher borrowings and interest rates [11] Business Line Data and Key Metrics Changes - Excluding mass merchant sales, net sales were down 7% year-over-year, primarily due to high inflation and increased interest rates affecting consumer demand [4][15] - The Masland brand showed strong performance with self-surface sales flat compared to the previous year, while engineered wood products experienced growth [15][16] Market Data and Key Metrics Changes - Sales to residential retail customers were down 7%, while the industry was believed to be down at least double that percentage [15] - The company’s hard surface products now represent 20% of total sales, reflecting a strategic shift in product offerings [25] Company Strategy and Development Direction - The company is focusing on expanding its hard surface offerings and decorative collections, with new product launches planned [25][21] - A significant restructuring plan was implemented, including a 25% reduction in workforce and cost reductions expected to exceed $35 million for the year [19][30] - The company aims to gain market share by offering stylish, quality products through selective distribution [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging industry environment but noted improved performance relative to competitors [15] - Order entry for the second quarter is running 14% above the first quarter, indicating a return to more normal operations [24] - The company is adapting strategies to a challenging environment while investing for future growth [25] Other Important Information - Capital expenditures for the year were $359,000, with a planned increase to $3 million [14] - The company celebrated the 20th anniversary of the Dixie Home brand with a rebranding initiative [20] Q&A Session Summary Question: Savings realization and pacing for cost reductions - Management indicated that $6 million in savings was realized in Q1, with expectations to achieve the remaining $11 million throughout the year, primarily from workforce reductions and material costs [30] Question: Gross margins and overhead cost absorption - Management confirmed that gross margins were strong, but overhead cost absorption did impact results slightly [31] Question: Future restructuring charges - Estimated residual restructuring charges of $300,000 to $500,000 are expected in Q2 for facility maintenance and severance costs [32] Question: Liquidity and cash flow generation - Management did not project operating cash flow from accounts receivable or inventory drawdowns but noted improved borrowing availability [36] Question: Debt maturity timeline - The next major debt maturity is in 2025, with a renewal of the senior credit facility expected at that time [38]

THE Exhibit 99.1 allen.danzey@dixiegroup.com THE 2 | --- | --- | --- | |-------|--------|--------------------------------------------------------------------------------| | | | | | • | 1920 | Began as Dixie Mercerizing in Chattanooga, TN | | • | 1990's | Transitioned from textiles to floorcovering | | • | 2003 | Refined focus on upper- end floorcovering market | | • | 2003 | Launched Dixie Home - upper end residential line | | • | 2005 | Launched modular tile carpet line – new product category | | • | 2012 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to ________. Commission File Number 0-2585 The Dixie Group, Inc. (Exact name of registrant as specified in its charter) | Tennessee | | 62-0183370 | | -- ...

Financial Data and Key Metrics Changes - The net sales for the fiscal year 2022 were $304 million, which is 11% lower than the $341 million reported in 2021 [15][17] - The net loss for fiscal year 2022 was $35.1 million, compared to a profit of $1.6 million in the previous year [18] - The gross profit margin for fiscal year 2022 was 17.7%, down from 22.6% in fiscal year 2021 [7] - Selling and administrative expenses were 25.4% of net sales in 2022, compared to 19.9% in the prior fiscal year [7] - Interest expense increased to $5.3 million in 2022 from $4.7 million in 2021 due to higher debt levels and interest rates [7] Business Line Data and Key Metrics Changes - The polyester business grew by 49% in 2022, with projections for a 75% sales growth in 2023 starting from a low base [31] - The Hard Surface segment has grown to approximately $50 million in annual sales, representing about 20% of total sales [23] - The company faced a significant impact from the exit of Invista from the Stainmaster nylon business, leading to a loss of business with Lowe's [10][11] Market Data and Key Metrics Changes - The company experienced a reduction in sales volume, leading to a decrease in accounts receivable by $14 million year-over-year [19] - Accounts payable and accrued expenses decreased by $11.1 million at the end of 2022, consistent with lower volume and inventory costs [20] Company Strategy and Development Direction - The company is focusing on growth initiatives in polyester products and has developed a three-year strategy to expand this category [13][30] - A consolidation plan for East Coast facilities is expected to result in over $25 million in savings and a 24% reduction in workforce [15][30] - The company is also restructuring its manufacturing to adapt to market changes, including ceasing yarn and carpet manufacturing in certain plants [29] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2023 is expected to be challenging due to economic uncertainty, inflation, and higher interest rates, but anticipates growth from new initiatives [30] - The company is implementing cost reduction measures and expects improved results in 2023 despite a sluggish core business [30] Other Important Information - Capital expenditures for the year were $4.6 million, with depreciation of $7.6 million [9] - The company ended the year with a borrowing availability of $15.3 million under its senior credit facility [21] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with management expressing optimism for 2023 compared to 2022 [25][26]

Dixie Group (NASDAQ:DXYN) Q3 2022 Earnings Conference Call November 3, 2022 2:00 PM ET Company Participants Dan Frierson - Chairman and Chief Executive Officer Allen Danzey - Chief Financial Officer Operator Good day and welcome to the Dixie Group, Inc. 2022 Third Quarter Earnings Conference Call. TodayÂ's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to the Chairman and Chief Executive Officer, Dan Frierson. Thank you, sir. Please go ahead. ...