Mon, Oct 28, 6:15 PM (66 days ago)
The Dixie Group, Inc. (DXYN) reported a decline in financial performance for the third quarter of 2024, with net sales dropping 5.4% to $64.9 million compared to $68.6 million in Q3 2023. The decrease in sales was attributed to lower demand in the floorcovering industry due to high interest rates and inflation. Gross profit margins fell from 26.6% to 24.6%, influenced by increased healthcare and utility costs. The company posted an operating loss of $2.1 million, worsening from a loss of $913,000 in the prior year, while net loss increased to $3.9 million from $2.4 million. Cash flow from operating activities was negative at $497,000, with significant increases in accounts receivable and inventory. The company's liquidity remains constrained, with $11.7 million available under its revolving credit facility. The stock was delisted from Nasdaq due to non-compliance with minimum bid price requirements, now trading on OTCQB. Future operations may be impacted by ongoing economic uncertainties and increased competition in the floorcovering market.