The Dixie Group, Inc. (OTCQB: DXYN) has reported financial results for the first quarter ended March 29, 2025, along with the completion of a new $75 million senior credit facility with MidCap Financial.
The Dalton, GA-based flooring manufacturer achieved an operating income of $11,000 in Q1 2025, compared to an operating loss of $857,000 in the same period of 2024, despite net sales decreasing 3.5% to $62.99 million from $65.25 million a year ago.
Dixie Group’s gross margins improved to 26.8% of net sales compared to 24.2% in the prior year, which the company attributed to its continued focus on cost reductions and operating efficiencies. The net loss from continuing operations was $1.58 million ($0.11 per diluted share), an improvement from a loss of $2.41 million ($0.16 per diluted share) in Q1 2024.
Daniel K. Frierson, Chairman and CEO of The Dixie Group, noted, “The industry continues to experience weak market conditions driven by low existing home sales and lower consumer confidence. Our soft floorcovering products again outperformed our hard surface products and we continued to gain market share in the soft surface category.”
During the quarter, Dixie closed on a new three-year, $75 million revolving senior credit facility with MidCap Financial, replacing its former facility with Fifth Third Bank. At quarter-end, the company had $12 million in unused borrowing availability, subject to a $6 million minimum excess availability requirement.
The company showcased 25 new carpet styles and eight hard surface collections at the first quarter trade shows, including its “Step Into Color” campaign featuring broad color options in its white dyeable nylon carpet collections.
Capital expenditures for Q1 2025 were $74,000, with plans for $2.5 million in spending for the full fiscal year.
