The Dixie Group, Inc. (DXYN) saw its loss widen to $2.72 million, or $0.18 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.53 million, or $0.03 a share. Revenue during the quarter dropped 4.79 percent to $102.61 million from $107.76 million in the previous year period. Gross margin for the quarter contracted 313 basis points over the previous year period to 21.29 percent. Operating margin for the quarter stood at negative 2.82 percent as compared to a positive 1.15 percent for the previous year period.
Operating loss for the quarter was $2.89 million, compared with an operating income of $1.24 million in the previous year period.
Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "Our carpet sales for 2016 were down 6.0% from 2015, on a comparable 52 week basis, while the industry, we believe, was down in the low single digits. In the fourth quarter our total carpet sales were down 7.7% while the industry was flat. Sales of our residential products were down approximately 3% on a comparable 52 week basis in 2016 versus 2015 while the industry was down similarly. Our commercial product sales on a year over year basis were down over 11% while the industry was down slightly, also on a 52 week equivalent basis.
Working capital declinesThe Dixie Group, Inc. has witnessed a decline in the working capital over the last year. It stood at $81.73 million as at Dec. 31, 2016, down 17.14 percent or $16.90 million from $98.63 million on Dec. 26, 2015. Current ratio was at 2.28 as on Dec. 31, 2016, down from 2.39 on Dec. 26, 2015.
Debt comes down
The Dixie Group, Inc. has recorded a decline in total debt over the last one year. It stood at $108.38 million as on Dec. 31, 2016, down 14.02 percent or $17.67 million from $126.05 million on Dec. 26, 2015. Total debt was 40.29 percent of total assets as on Dec. 31, 2016, compared with 42.27 percent on Dec. 26, 2015. Debt to equity ratio was at 1.24 as on Dec. 31, 2016, down from 1.39 as on Dec. 26, 2015. 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
