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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): March 8, 2024
 
dixiegroupa63.jpg

THE DIXIE GROUP, INC.
(Exact name of registrant as specified in its charter)
 
Tennessee0-258562-0183370
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

475 Reed RoadDaltonGeorgia30720
(Address of principal executive offices)(Zip Code)
 
(706)876-5800
(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $3 Par ValueDXYNNASDAQ Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company          o 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o 



1


Item 7.01    Regulation FD Disclosure.
The information attached as Exhibit 99.1 hereto supersedes the investor presentation previously furnished on Form 8-K dated November 13, 2023 and is being furnished pursuant to Item 7.01; such information, including the information excerpted below in this Item 7.01, shall not be deemed to be "filed" for any purpose.

These updated investor presentation materials may be found on the Company's website at
https://investor.dixiegroup.com.

Item 9.01    Financial Statements and Exhibits.
(c)    Exhibits    


2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date: March 8, 2024THE DIXIE GROUP, INC.
 By: /s/ Allen L. Danzey  
Allen L. Danzey
Chief Financial Officer


March 2024 Investor Presentation Contact: Allen Danzey CFO The Dixie Group Phone: 706-876-5865 allen.danzey@dixiegroup.com Exhibit 99.1

 
Forward Looking Statements The Dixie Group, Inc. • Statements in this presentation which relate to the future, are subject to risk factors and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Such factors include the levels of demand for the products produced by the Company. Other factors that could affect the Company’s results include, but are not limited to, raw material and transportation costs related to petroleum prices, the cost and availability of capital, and general economic and competitive conditions related to the Company’s business. Issues related to the availability and price of energy may adversely affect the Company’s operations. Additional information regarding these and other factors and uncertainties may be found in the Company’s filings with the Securities and Exchange Commission. • General information set forth in this presentation concerning market conditions, sales data and trends in the U.S. carpet and rug markets are derived from various public and, in some cases, non-public sources. Although we believe such data and information to be accurate, we have not attempted to independently verify such information. 2

 
Dixie History • 1920 • 1990’s • 2003 • 2003 • 2005 • 2012 • 2013 • 2014 • 2014 • 2016 • 2017 • 2018 • 2018 • 2019 • 2021 • 2022 • 2024 Began as Dixie Mercerizing in Chattanooga, TN Transitioned from textiles to floorcovering Refined focus on upper- end floorcovering market Launched Dixie Home - upper end residential line Launched modular tile carpet line – new product category Purchased Colormaster dye house and Crown Rugs Purchased Robertex - wool carpet manufacturing Purchased Atlas Carpet Mills – high-end commercial business Purchased Burtco - computerized yarn placement for hospitality Launched Calibré luxury vinyl flooring in Masland Contract Launched Stainmaster® LVF in Masland and Dixie Home Launched engineered wood in our Fabrica brand Unified Atlas and Masland Contract into single business unit Launched TRUCOR and TRUCOR Prime LVF in Dixie Home and Masland Sale of AtlasMasland Commercial Business Launched 1866 by Masland and Décor by Fabrica Celebrating the 50th Anniversary of the Fabrica Brand 3

 
Dixie Today • Commitment to brands in the upper-end residential market with strong growth potential. • Diversified customer base – Top 10 customers • 6% of sales – Top 100 customers • 24% of sales 4

 
Net Sales of Residential Products ($ shown in millions) 5

 
Dixie Group Business Drivers 6 • The residential flooring market is driven by remodeling, existing home sales and new construction of single family and multifamily housing. • Our residential business plays primarily in the mid to high end residential replacement segment, dependent upon consumer confidence, the health of the stock market and the wealth effect.

 
New and Existing Home Sales Seasonally Adjusted Annual Rate 7 New 1,000 Existing 1,000 Source: National Association of Realtors (existing) and census.gov/newhomesales 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1,000 1,050 Jan '15 Jan '16 Jan '17 Jan '18 Jan '19 Jan '20 Jan '21 Jan '22 Jan '23

 
Remodeling Activity 8

 
2022 U.S. Flooring Manufacturers Source: Floor Focus - Flooring includes sales of carpet, rugs, ceramic floor tile, wood, laminate, resilient and rubber 9 Flooring Manufacturers Flooring $ in millions Flooring Market % Shaw (Berkshire Hathaway) 6,076 24.7% Mohawk (MHK) 5,306 21.6% MSI 1,435 5.8% Engineered Floors 1,414 5.7% Mannington 1,010 4.1% Imports & All Others 9,344 38.0% Total 24,585 100.0%

 
Industry Positioning The Dixie Group • Strategically our business is driven by our relationship to the upper-end consumer and the design community • This leads us to: – Have a sales force that is attuned to design and customer solutions – Be a “product driven company” with an emphasis on beautiful and trend setting styles, colors, and designs – Be quality focused with a reputation for building excellent products and standing behind what we make – And, unlike most of the industry, not manufacturing driven 10

 
Dixie Group High-End Residential Sales All Brands 11 Sales by Brand for Q4 2023 Trailing Twelve Months Trucor Masland DH Floors Fabrica

 
Dixie Group High-End Residential Sales All Brands Sales by Channel for Q4 2023 Trailing Twelve Months The company believes that a significant portion of retail sales also involve a designer. 12 Retailer Designer Other Builder

 
Market Share 13Sales by The Dixie Group as a percent of the estimated total residential market

 
• In January 2023, we rebranded Dixie Home as DH Floors and celebrated 20 years in the market. • Affordable Fashion: DH Floors provides well styled carpet and hard surface designs in the mid to high end residential market. • With a broad range of price points, DH Floors meets the needs of a wide range of consumers through the specialty retail channel. • During 2023, our new collection of beautiful carpet styles made with Durasilk SD Pet Solutions polyester was well received by the market and became a key growth category. • Growth initiatives – Durasilk Solution Dyed Polyester – TRUCOR® SPC flooring – DH engineered wood – EnVision Nylon – EnVisionSD Pet Solutions 14

 
• Inspired by Design: leading high-end brand with reputation for innovative styling, design and color • High-end retail / designer driven, approximately 17% of sales directly involve a designer • The most versatile offering in the industy • Growth initiatives – TRUCOR® Prime WPC flooring – TRUCOR® Energy SPC flooring – TRUCOR® Tymbr high performance laminate flooring – 1866 by Masland high end wool and decorative carpet and rugs – EnVision Nylon – EnVisionSD Pet Solutions 15

 
• Quality without Compromise: beautiful, high end residential products, manufactured with the finest raw materials and an unwavering commitment to quality and attention to detail. • Designer focused, approximately 23% of sales directly involve a designer • Custom construction, pattern, and color capabilities. • Celebrating the Fabrica brand’s 50th Anniversary in 2024 • Growth initiatives – Fabrica Fine Wood Floors, a sophisticated collection of refined wood flooring – EnVision Nylon – Décor by Fabrica – high end wool and decorative carpet and rugs

 
Current Business Conditions Operating Results • The results for the fiscal year 2023 reflected the positive impact of our facility consolidation efforts, fiber conversions and cost reductions as our gross profit margin was 26.7% for the year • The operating income in 2023 $5.0 million which included facility consolidation expenses in the amount of $3.9 million and an $8.2 million gain on the sale and leaseback of our Adairsville, Georgia facility • For the year to date in 2024, order entry is closely in line with the comparable period in the prior year. Growth Initiatives • In 2023 we launched our Elements Collection in DH Floors, featuring cut pile textures and patterns made with Durasilk SD Pet Solutions polyester. These products have been very well received by the market and we are seeing strong levels of order entry and sales. • Ongoing development of best-in-class products under our EnVision Nylon and EnVisionSD Pet Solutions platforms. • Continued innovation and introduction of new hard surface products into our growing TRUCOR® and Fabrica Fine Wood programs; we are also entering new categories such as high-performance laminate to diversify our hard surface offering. We saw positive growth in hard surfaces in 2023. • Execution of our new decorative segment strategy. 1866 by Masland, 1866 All Seasons Collection, and Décor by Fabrica. Fueled by new products, this segment grew nicely in 2023. • Throughout 2023 we gained share in the residential replacement market, for both soft surface and hard surface. Our highest end brands were notably strong in the challenging market conditions we faced.

 

 
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Cover
Mar. 08, 2024
Document Information [Line Items]  
Document Type 8-K
Amendment Flag false
Document Period End Date Mar. 08, 2024
Entity Registrant Name THE DIXIE GROUP, INC.
Entity Incorporation, State or Country Code TN
Entity File Number 0-2585
Entity Tax Identification Number 62-0183370
Entity Address, Address Line One 475 Reed Road
Entity Address, City or Town Dalton
Entity Address, State or Province GA
Entity Address, Postal Zip Code 30720
City Area Code (706)
Local Phone Number 876-5800
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $3 Par Value
Trading Symbol DXYN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000029332
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