Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (March 2022)
18 slides from Dixie's investor presentation, Mar 10, 2022
Slide 1: March 2022 Investor Presentation
March 2022 Investor Presentation Contact: Allen Danzey CFO The Dixie Group Phone: 706-876-5865 allen.danzey@dixiegroup.com Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements The Dixie Group, Inc. • Statements in this presentation which relate to the future, are subject to risk factors and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Such factors include the levels o
Slide 3: Dixie History
Dixie History • 1920 Began as Dixie Mercerizing in Chattanooga, TN • 1990’s Transitioned from textiles to floorcovering • 2003 Refined focus on upper- end floorcovering market • 2003 Launched Dixie Home - upper end residential line • 2005 Launched modular tile carpet line – new product category • 20
Slide 4: Dixie Today
Dixie Today • Commitment to brands in the upper- end residential market with strong growth potential. • Diversified customer base (TTM Basis) – Top 10 customers • 13% of sales – Top 100 customers • 29% of sales 4
Slide 5: Net Sales of Residential Products
5 Net Sales of Residential Products ($ shown in millions) 0 50 100 150 200 250 300 350 400 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Residential Products
Slide 6: Dixie Group Business Drivers
6 Dixie Group Business Drivers • The residential flooring market is driven by remodeling, existing home sales and new construction of single family and multifamily housing. • Our residential business plays primarily in the mid to high end residential replacement segment, dependent upon consumer conf
Slide 7: New and Existing Home Sales
New and Existing Home Sales Seasonally Adjusted Annual Rate 7 New 1,000 Existing 1,000 Source: National Association of Realtors (existing) and census.gov/newhomesales 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1,000 1,050 Jan '13 Jan '14 J
Slide 8: Remodeling Activity
Remodeling Activity OS THE DIXIB GROUP Leading Indicator of Remodeling Activity — Fourth Quarter 2021 Homeowner Improvements & Repairs Four-Quarter Moving Totals Four-Quarter Moving Billions Rate of Change $500 5 19.7% yp 25% 17.3% - 20% $450 15.2 11.3% » 15% 7.8% 9.4% $400. 5 47% 57% |) 10% 3.4% 11
Slide 9: 2020 U.S. Flooring Manufacturers
2020 U.S. Flooring Manufacturers 9 Source: Floor Focus - Flooring includes sales of carpet, rugs, ceramic floor tile, wood, laminate, resilient and rubber Flooring Manufacturers Flooring $ in millions Flooring Market % Mohawk (MHK) 5,540 25.1% Shaw (Berkshire Hathaway) 5,500 24.9% Engineered Floors
Slide 10: Industry Positioning
Industry Positioning The Dixie Group • Strategically our business is driven by our relationship to the upper-end consumer and the design community • This leads us to: – Have a sales force that is attuned to design and customer solutions – Be a “product driven company” with emphasis on the most beaut
Slide 11: High-End Residential Sales by Brand
Dixie Group High-End Residential Sales All Brands Masland Dixie Home Mass Merchant Fabrica TRUCOR Sales by Brand for 2021 (TTM) 11
Slide 12: High-End Residential Sales by Channel
Dixie Group High-End Residential Sales All Brands Retailer Designer Mass Merchant Builder Specialty - OEM 12 Sales by Channel for Q4 2021 (TTM) The company believes that a significant portion of retail sales also involve a designer.
Slide 13: Market Share
Market Share • Doubled our market share of carpet in the past 10 years, aided by an upper end segment that outpaced the market • Successfully entered the hard surface market in the rigid core and engineered wood segments 13
Slide 14: Dixie Home
• Affordable Fashion: Dixie Home provides well styled carpet and hard surface designs in the mid to high end residential market. • With a broad range of price points, Dixie Home meets the needs of a variety of consumers through specialty retailers and mass merchants. • Growth initiatives – TRUCOR™ S
Slide 15: Masland
• Leading high-end brand with reputation for innovative styling, design and color • High-end retail / designer driven – Approximately 19% of sales directly involve a designer – Hand crafted and imported rugs • Growth initiatives – TRUCOR Prime™ WPC Luxury Vinyl Flooring & – TRUCOR™ Energy SPC floori
Slide 16: Fabrica
• Premium high-end brand – “Quality without Compromise” • Designer focused – Approximately 26% of sales directly involve a designer – Hand crafted and imported rugs • Growth initiatives – Fabrica Fine Wood Flooring, a sophisticated collection of refined wood flooring – EnVision Nylon™ – Décor by Fab
Slide 17: Current Business Conditions
Current Business Conditions Outlook: • Net sales in the fourth quarter of 2021 increased 18% over the fourth quarter of the prior year. For the full year of 2021, our net sales were up 36% over prior year. • Our residential growth initiatives: o In response to the sale of the STAINMASTER brand to Lo
Slide 18: ” Hiraslor®
” Hiraslor® INSPIRED BY DESIGN. me KS THE BDIKTE GCGROUP TRUCOR’ FLOORING SIMPLIFIED