dxyn-20220326

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


			Form 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 26, 2022

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to __________

Commission File Number: 0-2585

THE DIXIE GROUP, INC.

(Exact name of Registrant as specified in its charter)

Tennessee

62-0183370

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

475 Reed Road, Dalton, Georgia

30720

(706) 876-5800

(Address of principal executive offices)

(zip code)

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. R Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). R Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated Filer

(Do not check if a smaller reporting company)

Smaller reporting company

☑

Emerging growth company

☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) ☐ Yes R No

The number of shares outstanding of each of the issuer's classes of Common Stock as of the latest practicable date.


Class						Outstanding as of April 29, 2022
Common Stock, $3 Par Value						14,948,937 shares
Class B Common Stock, $3 Par Value						1,096,479 shares
Class C Common Stock, $3 Par Value						0 shares

Table of Contents 1

THE DIXIE GROUP, INC.

Table of Contents

PART I. FINANCIAL INFORMATION

Page

Item 1.

Financial Statements

Consolidated Condensed Balance Sheets - December 25, 2021 and March 26, 202 2 (Unaudited)

Consolidated Condensed Statements of Operations (Unaudited) - Three Months Ended March 26, 2022 and March 27, 2021

Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) - Three Months Ended March 26, 2022 and March 27, 2021

Consolidated Condensed Statements of Cash Flows (Unaudited) - Three Months Ended March 26, 2022 and March 27, 2021

Consolidated Condensed Statements of Stockholders' Equity (Unaudited) - Three Months ended March 26, 2022 and March 27, 2021

Notes to Consolidated Condensed Financial Statements (Unaudited)

Item 2.

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

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Item 4.

Controls and Procedures

PART II. OTHER INFORMATION

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Mine Safety Disclosures

Item 5.

Other information

Item 6.

Exhibits

Signatures

Table of Contents 2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

THE DIXIE GROUP, INC.

CONSOLIDATED CONDENSED BALANCE SHEETS

(amounts in thousands, except share data)


	March 26, 2022		December 25, 2021
ASSETS	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	902	$	1,471
Receivables, net	38,521		40,291
Inventories, net	85,891		82,739
Prepaids and other current assets	7,944		9,925
Current assets of discontinued operations	4,695		5,991
TOTAL CURRENT ASSETS	137,953		140,417

PROPERTY, PLANT AND EQUIPMENT, NET	47,004		48,658
OPERATING LEASE RIGHT-OF-USE ASSETS	21,724		22,534

OTHER ASSETS	20,018		21,138
LONG-TERM ASSETS OF DISCONTINUED OPERATIONS	2,400		2,752
TOTAL ASSETS	$	229,099	$	235,499

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	18,006	$	16,748
Accrued expenses	23,139		26,214
Current portion of long-term debt	2,564		3,361
Current portion of operating lease liabilities	2,493		2,528
Current liabilities of discontinued operations	2,744		5,362
TOTAL CURRENT LIABILITIES	48,946		54,213

LONG-TERM DEBT	78,309		73,701
OPERATING LEASE LIABILITIES	20,078		20,692
OTHER LONG-TERM LIABILITIES	14,385		16,030
LONG-TERM LIABILITIES OF DISCONTINUED OPERATIONS	4,134		4,488
TOTAL LIABILITIES	165,852		169,124

COMMITMENTS AND CONTINGENCIES (See Note 18)

STOCKHOLDERS' EQUITY
Common Stock ($3 par value per share): Authorized 80,000,000 shares, issued and outstanding - 14,948,937 shares for 2022 and 14,792,647 shares for 2021	44,847		44,378
Class B Common Stock ($3 par value per share): Authorized 16,000,000 shares, issued and outstanding - 1,096,479 shares for 2022 and 1,004,975 shares for 2021	3,289		3,015
Additional paid-in capital	156,974		157,658
Accumulated deficit	(142,063)		(138,706)
Accumulated other comprehensive loss	200		30
TOTAL STOCKHOLDERS' EQUITY	63,247		66,375
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	229,099	$	235,499

See accompanying notes to the consolidated condensed financial statements.

Table of Contents 3

THE DIXIE GROUP, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

(amounts in thousands, except per share data)


	Three Months Ended
	March 26, 2022		March 27, 2021
			As Adjusted
NET SALES	$	77,575	$	72,747
Cost of sales	62,399		55,874

SEC Form 10-Q filed by Dixie Group Inc.