Dixie Group, Inc. announced its financial results for the quarter ended September 25 on Friday. In the third quarter of 2021, the company's net sales from continuing operations were US$89,294,000 and revenue was US$5,597,000. Net sales for the third quarter of 2020 were US$70,035,000. Net income from continuing operations in the third quarter of 2020 was US$175,000. On September 13, the company sold its commercial business. The net sales and expenses related to commercial business have been listed as discontinued business in the company’s financial statements included here, and unless otherwise stated, are included in the figures listed here.
Commenting on the results, Chairman and CEO Daniel K. Frierson said: "With the sale of our commercial business, the third quarter is the beginning of our company's focus on residential flooring. In This quarter, we continued to gain market share and began to undergo major changes, which we believe will enhance our future prospects. Our net sales of residential flooring products increased by 26%, which is about a high increase compared to what we believe to be the industry In the first nine months of this year, our total net sales of residential products increased by 49% compared to the same period last year. The 19 pandemic in 2020 and the strong growth of new and existing home sales and home renovations in 2021.
"STAINMASTER's exit from the residential market represents a major change, but it provides opportunities for growth and repositioning. We are implementing strategies to help our customers transition to our new brands EnVision66, EnVisionSD Pet Solutions. Our TRUCOR brand continues to grow at a rate Even faster than the LVF market. With more cutting-edge products and focusing on domestic sourcing, we feel that we can continue to grow faster than the market. As part of our commitment to the high-end decoration market, we have brought Two new series are introduced to the market. Our Masland 1866 and Fabrica Décor products bring a lot of novel and unique appearances to complement the products we provide to the design community.
"Our residential business in the third quarter is still very strong. Net sales increased by 27% over the same period last year, of which sales of soft surface products increased by 22%, and sales of hard surface products increased by 73%. Order input remained good throughout. The quarter is higher than last year's level.
"We launched several new products with hard and soft surfaces in the third quarter. Many of them have been postponed from the second quarter due to ransomware attacks. In terms of soft surfaces, we launched 13 new products, including EnVision66, EnVisionSD Pet Solutions , And the introduction of new decorative market segments. Our EnVision nylon 6,6 carpet series now has 40 products.
"On the hard surface, we launched the TRUCOR Applause, which is our new domestically purchased SPC product with eight SKUs. It quickly aroused great interest and order activities in the market. We are cooperating with our suppliers to Maximize the production of these SKUs. We have also launched the TRUCOR 3DP plan with 16 SKUs, including wood and stone appearance. TRUCOR 3DP has high-resolution digital printing directly on the SPC core instead of most SPCs and WPCs The traditional film used in the product to create the visual effect of wood or stone. Like all SPC products, TRUCOR 3DP is waterproof and can be easily installed on most existing hard surface floors and sub-floors with minimal floor preparation Additional benefits of this technology include clear, realistic visual effects, virtual elimination of pattern repetition in film-based products, and a highly durable AC5 scratch resistance rating.
"In the third quarter, we also executed the professional retail transition from the STAINMASTER and PetProtect brands to our EnVision66 and EnVisionSD Pet Solutions brands. This includes production, distribution and in some cases in our entire professional retail channel. New labels are installed on the products. As part of this work, we have relocated all floors of the 217 retail stores that have joined our new Premier Flooring Center network. Through the PFC program, we have provided retail stores that have worked closely with the STAINMASTER brand in the past. The supplier provides a turnkey solution. The slogan of the PFC program is “Buying floors is important.” It provides a first-class sales system that can promote higher ticket and retail profits, highlighting the high quality made of nylon 6,6 The benefits of carpet and refresh the showroom with the latest products and information. The PFC program is very popular and is the basic channel for the future growth of professional retail," Mr. Friesen concluded.
The gross profit as a percentage of net sales in the third quarter of 2021 was 27.9%, while the gross profit margin in the third quarter of 2020 was 24.5%. The higher profit margin in the third quarter of 2021 is driven by higher pricing to match current and previous costs. Although the company benefited from favorable profit margins in the third quarter, raw material costs continued to increase, which may have an adverse effect on future profit margins.
Sales and administrative expenses in the quarter accounted for 20.3% of net sales, compared to the level of 21.8% in the third quarter of 2020, as it continues to retain many cost-saving measures implemented as part of the response to the COVID-19 pandemic. With 2020 Compared with the third quarter of the year, accounts receivable increased by US$9.1 million, mainly due to the increase in sales during the period. Compared with the third quarter of 2020, net inventory increased by $15.3 million. Due to increased sales and increased costs, accounts payable and accrued expenses increased by USD 12.2 million year-on-year. The capital expenditure in the third quarter of 2021 is approximately US$2 million, and it is planned to reach the level of approximately US$5 million in 2021. Interest expenses in the third quarter of 2021 were US$1.2 million, and debt decreased by US$17.5 million in the quarter. At the end of the quarter, the credit line of the Advanced Credit Line was US$54.1 million.
The company's non-discontinued business revenue for the quarter was $836,000. Discontinued operations included a gain of US$2.7 million from the sale of commercial operations, which was offset by losses from commercial operations. Due to the loss of commercial business, the business that has been discontinued so far this year recorded a loss of US$1.3 million.
The sales momentum of residential products continued into the fourth quarter. In the first five weeks of the quarter, sales increased by 20% compared to the strong performance a year ago. Due to increased cost pressures in many areas, the third quarter announced price increases for the entire industry. As raw material, labor, and transportation costs continue to rise, additional price increases were announced at the end of the year.
Massey Services announced on Tuesday that it has acquired Mayfield Brothers Pest Control. The Mayfield Brothers are headquartered in Chattanooga. The company provides residential and commercial... (click to see more)
First Horizonn Bank, a member of the First Horizon Corporation family, has appointed Jeremy Haley as the manager of the First Horizon Bank Center in Ringgold. Mr. Hailey started his career... (click to see more)
The following is the new business license of the county clerk's office: 1ST MATE AYINDE BAKARI 1416 HIGHLAND WAY HIXSON TN 37343 ACOPINE PEPPER CO LLC JOSHUA T ACOPINE 201 W MAIN ST CHATTANOOGA... (click to see more)
Massey Services announced on Tuesday that it has acquired Mayfield Brothers Pest Control. The Mayfield Brothers are headquartered in Chattanooga. The company provides residential and commercial pest control services in southeastern Tennessee and northwest Georgia. It has offices in Chattanooga and Cleveland. This acquisition expands Messi services... (click to see more)
First Horizonn Bank, a member of the First Horizon Corporation family, has appointed Jeremy Haley as the manager of the First Horizon Bank Center in Ringgold. Mr. Haley started his career as an insurance consultant and then moved to the banking industry as a financial relationship consultant. Before joining First Horizon Bank, he had been a senior financial advisor. ...(click to see more)
The Hamilton County Health Department will work with Hamilton County Schools and One-to-One Health Centers to organize two Pfizer COVID-19 vaccination campaigns for children aged 5-11. These events will be held on Saturday, November 20 from 9 a.m. to 2 p.m. and Tuesday, November 23 from 4 p.m. to 7 p.m. "Getting our children vaccinated against Covid-19 is an important preventive measure... ...(Click to see more)
A house on Suck Creek Road was destroyed by fire early on Monday morning. The Chattanooga Fire Department and Waldens Ridge Emergency Services have overcome many logistical obstacles and carried out complex fire operations at home. At 6 in the morning, the call came to a residence in the 1900 block, located on the city/county line. The first responder suggested fire... (click to see more)
I have seen the list of potential candidates in the Chattanoogan poll for the mayor of Hamilton County in 2022, from Bo Watson to Tim Boyd. How interesting these polls are for the community. With every potential candidate listed in the Chattanoogan poll, I can immediately connect the candidate with their occupation or job or their way of making a living. Of course,... (click to see more)
If you are over 70, thank you for your lucky star, because it is a miracle that we can get here today. There is a story circulating on the Internet from time to time, and every time I read it, it makes me laugh. It has been around for a while, but as we age, its truth seems to be getting bigger and bigger. I stumbled upon a copy a few days ago, as a child who has experienced the best memories of a boy... (click to see more)