Dixie Group, Inc. (DXYN) Q3 2023 Earnings Call Transcript -LSB

Dixie Group, Inc. (NASDAQ:DXYN) Q3 2023 Earnings Call Transcript November 13, 2023 10:00 AM ET

Company Participants

Daniel Frierson – Chairman & CEO

Allen Danzey – VP & CFO

Conference Call Participants

Barry Blank – J.H. Darbie


Good day and welcome to the Dixie Group, Inc. 2023 Third Quarter Earning Conference Call. Today’s call is being recorded. At this time for opening remarks, I’ll turn the floor over to Chairman and Chief Executive Officer, Dan Frierson. Please go ahead.

Daniel Frierson

Thank you, Rob, and welcome everyone to our third quarter conference call. I have with me today Allen Danzey, our CFO. Our Safe Harbor Statement is included by reference both to our website and press release.

For the third quarter, our net sales of $68.6 million were down approximately 4% compared to the same quarter of last year. Net operating income was a loss of $913,000 compared to a loss of over $7 million in the third quarter of 2022. Despite the lower sales volume, this year our gross margin for the third quarter improved by over 9 percentage points from 17.5% a year ago to 26.6% this year. First nine months of 2023 operating income was a loss of $354,000, which included facility consolidation expenses in the amount of $2.3 million. The $354,000 loss compared to an operating loss of $12.3 million for the same period a year ago.

The housing market remains constrained due to limited supply, high interest rates, and continued inflation pressure. Consequently, the residential flooring market remains weak as a result of lower home resales and deferred home improvement projects. Our sales for the quarter, as I indicated, were down 4%, but we believe the industry was down significantly more. So we believe we gained market share in our markets again this quarter. The flooring industry is experiencing a cyclical downturn like we’ve

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