Dixie Group Q2 Profit Holds Steady at $1.09M, Margin Inches Up
DXYN sits 83% above its 52-week low of $0.2.
Summary
Dixie Group posted Q2 net income of $1.09 million, or $0.07 per share, on flat sales of $68.6 million. Gross margin improved to 29.5% from 29.2% a year ago, driven by cost reductions and favorable pricing under its Profit Improvement Plan. The company expects the plan to deliver $17 million in annual savings. Management flagged continued softness in home resale and remodeling, but highlighted strength in higher-end decorative products and the Fabrica wood program. The quarter included 14 new carpet style launches, with more product introductions planned for Q3.
Updates
· SEC 10-Q — The 10-Q discloses a going concern warning, citing $55.7M of current debt, $2.1M unrestricted cash, and $5.4M unused availability after a $6M minimum excess availability requirement. It also reports a material weakness in internal controls.
At the time of this announcement, DXYN was trading at $0.37 on OTC in the Manufacturing sector, with a market capitalization of approximately $5.2M. The 52-week trading range was $0.20 to $0.75. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.