The Dixie Group, Inc. (DXYN) has reported a 709.09 percent jump in profit for the quarter ended Sep. 24, 2016. The company has earned $0.53 million, or $0.04 a share in the quarter, compared with $0.07 million, or $0.01 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $0.57 million, or $0.04 a share compared with $0.46 million or $0.03 a share, a year ago. Revenue during the quarter dropped 7.91 percent to $100.30 million from $108.91 million in the previous year period. Gross margin for the quarter expanded 72 basis points over the previous year period to 25.75 percent. Total expenses were 98.09 percent of quarterly revenues, down from 98.85 percent for the same period last year. This has led to an improvement of 76 basis points in operating margin to 1.91 percent.
Operating income for the quarter was $1.92 million, compared with $1.25 million in the previous year period.
Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "The third quarter started off very slowly but improved throughout the quarter. Carpet sales for the quarter were down 6% on a comparative year over year basis. In particular our commercial product sales were 13% below the prior year. We believe the commercial market was down slightly on a year over year basis. Residential product sales were 2% below the prior year period. Though our residential business was down as compared to the prior year’s quarter, we believe that we outperformed the residential market which we believe was down mid to high single digits. For the first four weeks of October floorcovering sales are off high single digits versus the same period a year ago. We have seen modest decline in residential replacement housing activity during the summer months. We believe that the entire floorcovering market has been impacted by a drop in consumer expectations and political uncertainty this year."
Working capital declines
The Dixie Group, Inc. has witnessed a decline in the working capital over the last year. It stood at $91.56 million as at Sep. 24, 2016, down 20.81 percent or $24.05 million from $115.61 million on Sep. 26, 2015. Current ratio was at 2.33 as on Sep. 24, 2016, down from 2.61 on Sep. 26, 2015. Days sales outstanding went up to 46 days for the quarter compared with 45 days for the same period last year.
Days inventory outstanding has decreased to 66 days for the quarter compared with 128 days for the previous year period.
Debt comes down
The Dixie Group, Inc. has recorded a decline in total debt over the last one year. It stood at $115.62 million as on Sep. 24, 2016, down 11.86 percent or $15.56 million from $131.18 million on Sep. 26, 2015. Total debt was 40.53 percent of total assets as on Sep. 24, 2016, compared with 41.99 percent on Sep. 26, 2015. Debt to equity ratio was at 1.32 as on Sep. 24, 2016, down from 1.45 as on Sep. 26, 2015. Interest coverage ratio improved to 1.46 for the quarter from 1.04 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
