The Dixie Group(DXYN) - 2024 Q2 - Quarterly Results

Financial Performance - Net sales for Q2 2024 were $70.5 million, a decrease of 4.5% from$ 74.0 million in Q2 2023[2] - Gross profit margin improved to 28.1% in Q2 2024, up from 26.7% in Q2 2023[9] - Operating income increased to $2.3 million in Q2 2024, compared to$ 0.3 million in Q2 2023[3] - Net income from continuing operations was $0.7 million, or$ 0.04 per diluted share, compared to a net loss of $1.6 million, or$ 0.11 per diluted share, in Q2 2023[3] - For the first six months of 2024, net sales were $135.8 million, down 3.8% from$ 141.1 million in the same period of 2023[4] - Sales in Q3 2024 to date are approximately 5.5% below the comparable period in the prior year[11] Cost Management - The company expects to reduce year-over-year costs by over $10 million in 2024 through cost-saving initiatives[8] New Product Launches - The company launched 18 new carpet styles and 6 new collections with 38 SKUs in Q2 2024, contributing to sales volume[8] Assets and Liabilities - Total assets increased to$ 198,492,000 as of June 29, 2024, up from $191,169,000 on December 30, 2023, reflecting a growth of approximately 3.4%[15] - Current assets rose to$ 115,329,000, compared to $112,395,000 at the end of 2023, indicating an increase of about 2.6%[15] - Cash and cash equivalents increased slightly to$ 83,000 from $79,000, showing a growth of 5.1%[15] - Receivables, net grew to$ 28,019,000, up from $23,686,000, representing an increase of approximately 18.4%[15] - Total current liabilities increased to$ 44,813,000 from $39,554,000, marking a rise of about 13.5%[15] - Long-term debt, net rose to$ 82,699,000, compared to $78,290,000, reflecting an increase of approximately 5.5%[15] - Stockholders' equity decreased to$ 27,304,000 from $29,291,000, a decline of about 6.8%[15] - Accounts payable increased significantly to$ 19,371,000 from $13,935,000, indicating a rise of approximately 39.5%[15] - Operating lease liabilities decreased slightly to$ 24,206,000 from $25,907,000, a reduction of about 6.6%[15] - Inventories, net remained relatively stable at$ 76,131,000 compared to $76,211,000, showing a negligible change[15] Capital Expenditures - Capital expenditures for the full fiscal year 2024 are planned at$ 9.4 million[10] Sublease Agreement - A 10-year sublease agreement was completed for warehouse space, expected to generate approximately $1.8 million in annual income[2]