DIXIE GROUP INC. Files 2023 10-K Report

TL;DR

<b>Dixie Group Inc. has filed its annual 10-K report for the fiscal year ending December 30, 2023, detailing its financial performance and business operations.</b>

AI Summary

DIXIE GROUP INC (DXYN) filed a Annual Report (10-K) with the SEC on March 20, 2024. Dixie Group Inc. filed its 10-K report for the fiscal year ending December 30, 2023. The filing covers the period from January 1, 2023, to December 30, 2023. The company's fiscal year end is December 31. Dixie Group Inc. is classified under SIC code 2273 (Carpets and Rugs). The company was formerly known as Dixie Yarns Inc. and Dixie Mercerizing Co.

Why It Matters

For investors and stakeholders tracking DIXIE GROUP INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Dixie Group Inc.'s financial health, operational activities, and strategic positioning for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. Understanding the details within this report, such as revenue, debt, and operational risks, is essential for stakeholders to make informed investment decisions regarding Dixie Group Inc. (DXYN).

Risk Assessment

Risk Level: medium — DIXIE GROUP INC shows moderate risk based on this filing. The company's financial performance and operational risks are not detailed in the provided snippet, requiring a deeper review of the full 10-K to assess the overall risk level.

Analyst Insight

Review the full 10-K filing for Dixie Group Inc. (DXYN) to understand its financial performance, debt levels, and specific risk factors for the fiscal year 2023.

Key Numbers

• 20231230 — CONFORMED PERIOD OF REPORT (20231230)
• 20240320 — FILED AS OF DATE (20240320)
• 2023 — SIC CODE (CARPETS AND RUGS [2273])
• 19920703 — DATE OF NAME CHANGE (DIXIE YARNS INC)
• 19670524 — DATE OF NAME CHANGE (DIXIE MERCERIZING CO)

Key Players & Entities

• DIXIE GROUP INC. (company) — FILER
• DIXIE YARNS INC (company) — FORMER COMPANY
• DIXIE MERCERIZING CO (company) — FORMER COMPANY
• DALTON (company) — BUSINESS ADDRESS CITY
• GA (company) — BUSINESS ADDRESS STATE
• TN (company) — STATE OF INCORPORATION

FAQ

Industry Context

Dixie Group Inc. operates in the Carpets and Rugs industry, classified under SIC code 2273.

Regulatory Implications

The filing is a 10-K report, which is an annual report required by the U.S. Securities and Exchange Commission (SEC) that gives a comprehensive summary of a company's financial performance.

What Investors Should Do

1. Analyze the full 10-K filing for detailed financial statements and performance metrics of Dixie Group Inc. for FY2023.
2. Investigate the company's operational segments and any disclosed restructuring charges or disposal group liabilities.
3. Assess the company's debt structure and equity components as detailed in the financial statements.

Key Dates

• 2023-12-30: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-20: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing snippet provided, and a comparison to a previous filing is not possible without more data.

Key Financial Figures

• $3.00 — ange on which registered Common Stock, $3.00 par value DXYN NASDAQ Stock Market, LLC
• $37.6 billion — he U.S. floorcovering industry reported $37.6 billion in sales, up approximately 7.5% from th
• $1 — able to maintain a minimum bid price of $1 per share for our common stock, we may

Filing Documents

• dxyn-20231230.htm (10-K) — 1604KB
• ex10_47formofstockoptionag.htm (EX-10.47) — 32KB
• ex10_48stockoptionagreemen.htm (EX-10.48) — 33KB
• ex10_49dixie-executedfirst.htm (EX-10.49) — 103KB
• ex10_50secondamendmenttocr.htm (EX-10.50) — 37KB
• ex10_51thirdamendmenttocre.htm (EX-10.51) — 47KB
• ex10_52fullyexecutedadairs.htm (EX-10.52) — 48KB
• ex10_53leaseagreementbetwe.htm (EX-10.53) — 231KB
• ex19_1insidertradingpolicy.htm (EX-19.1) — 8KB
• ex21_subsidiaries2023.htm (EX-21) — 2KB
• ex23forvisconsent10k2023.htm (EX-23) — 2KB
• ex31_1ceocert10k2023.htm (EX-31.1) — 10KB
• ex31_2cfocert10k2023.htm (EX-31.2) — 9KB
• ex32_1ceocert10k2023.htm (EX-32.1) — 5KB
• ex32_2cfocert10k2023.htm (EX-32.2) — 5KB
• dxyn-20231230_g1.jpg (GRAPHIC) — 28KB
• dxyn-20231230_g2.jpg (GRAPHIC) — 450KB
• 0000029332-24-000020.txt (&nbsp;) — 12615KB
• dxyn-20231230.xsd (EX-101.SCH) — 87KB
• dxyn-20231230_cal.xml (EX-101.CAL) — 171KB
• dxyn-20231230_def.xml (EX-101.DEF) — 378KB
• dxyn-20231230_lab.xml (EX-101.LAB) — 960KB
• dxyn-20231230_pre.xml (EX-101.PRE) — 688KB
• dxyn-20231230_htm.xml (XML) — 1598KB

Risk Factors

Item 1A. Risk Factors 6

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 11

Cybersecurity

Item 1C. Cybersecurity 11

Properties

Item 2. Properties 12

Legal Proceedings

Item 3. Legal Proceedings 12

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 12 Executive Officers of the Registrant 13 PART II

Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 14

Rese rved

Item 6. Rese rved 15

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 15

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 21

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 21

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 21

Controls and Procedures

Item 9A. Controls and Procedures 21

Other Information

Item 9B. Other Information 21

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 2 1 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 22

Executive Compensation

Item 11. Executive Compensation 22

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 22

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 23

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 23 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 23

Form 10-K Summary

Item 16. Form 10-K Summary 23

Signatures

Signatures 24 CONSOLIDATED FINANCIAL STATEMENTS Management's Report on Internal Control Over Financial Reporting 2 7 Report of Independent Registered Public Accounting Firm 28 Consolidated Balance Sheets - December 3 0 , 202 3 and December 31 , 20 2 2 29 Consolidated Statements of Operations - Years ended December 3 0 , 202 3 and December 31 , 202 2 30 Consolidated Statements of Comprehensive Income (Loss) - Years ended December 3 0 , 202 3 and December 31 , 202 2 31 Consolidated Statements of Cash Flows - Years ended December 3 0 , 202 3 and December 31 , 202 2 32 Consolidated Statements of Stockholders' Equity - December 3 0 , 202 3 and December 31 , 202 2 33

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 33 Exhibit Index 58 Table of Contents 2 FORWARD-LOOKING INFORMATION This Report contains statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include the use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates," "intends," and similar terms and phrases. Such forward-looking statements relate to, among other matters, our future financial performance, business prospects, growth strategies or liquidity. The following important factors may affect our future results and could cause those results to differ materially from our historical results; these factors include, in addition to those "Risk Factors" detailed in Item 1A of this report, and described elsewhere in this document, the cost and availability of capital, raw material and transportation costs related to petroleum price levels, the cost and availability of energy supplies, the loss of a significant customer or group of customers, the ability to attract, develop and retain qualified personnel, materially adverse changes in economic conditions generally in carpet, rug and floorcovering markets we serve and other risks detailed from time to time in our filings with the Securities and Exchange Commission. Table of Contents 3 PART I.

BUSINESS

Item 1. BUSINESS General Our business consists principally of marketing, manufacturing and selling floorcovering products to high-end residential customers through our various sales forces and brands. We focus exclusively on the upper-end of the floorcovering market where we believe we have strong brands and competitive advantages with our style and design capabilities and customer relationships. Our Fabrica, Masland, and DH Floors brands have a significant presence in the high-end residential floorcovering markets. Our business participates in markets for soft floorcoverings, which include broadloom carpet and rugs, and hard surfaces, which include luxury vinyl flooring (LVF) and engineered wood. There has been a significant shift in the flooring marketplace as hard surface products have grown at a rate much faster than soft surface products. We continue to respond to this accelerated shift to hard surface flooring by launching several initiatives in hard surface offerings. TRUCOR and TRUCOR Prime offers a wide range of LVF products. We continue to introduce new products in our 1866 by Masland and Decor by Fabrica collections, which are targeted at high end, luxury soft surface markets including wool broadloom and decorative rugs. We have one reportable segment, Floorcovering. Our Brands Our brands are well known, highly regarded and offer meaningful alternatives to the discriminating customer. Fabrica markets and manufactures luxurious residential carpet, custom rugs, and engineered wood at selling prices that we believe are approximately five times the average for the residential soft floorcovering industry. Its primary customers are interior decorators and designers, selected retailers and furniture stores, luxury home builders and manufacturers of luxury motor coaches and yachts. Fabrica is among the leading premium brands in the domestic marketplace and is known for styling innovation and unique colors and patterns. Fabrica consists of extremely

Risk Factors

Item 1A. Risk Factors In addition to the other information provided in this Report, the following risk factors should be considered when evaluating the results of our operations, future prospects and an investment in shares of our Common Stock. Any of these factors could cause our actual financial results to differ materially from our historical results, and could give rise to events that might have a material adverse effect on our business, financial condition and results of operations. Table of Contents 6 Our financial condition and results of operations have been and could likely be adversely impacted in the future by COVID-19 or other pandemics and the related negative impact on economic conditions. Global and/or local pandemics, such as COVID-19, have negatively impacted areas where we operate and sell our products and services. The COVID-19 outbreak in the second quarter of 2020 had a material adverse effect on our ability to operate and our results of operations as public health organizations recommended, and many governments implemented, measures to slow and limit the transmission of the virus, including shelter in place and social distancing ordinances. Although the accessibility of vaccines and other preventive measures have lessened the impact, new variants may necessitate a return of such restrictive, preventive measures which may have a material adverse effect on our business for an indefinite period of time, such as the potential shut down of certain locations, decreased employee availability, disruptions to the businesses of our selling channel partners, and others. Our suppliers and customers may also face these and other challenges, which could lead to a disruption in our supply chain as well as decreased construction and renovation spending and consumer demand for our products and services. These issues may also materially affect our current and future access to sources of liquidity, particularly our cash flows from operations, and access t

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View this 10-K filing on SEC EDGAR