Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (March 2023)
18 slides from Dixie's investor presentation, Mar 2, 2023
Slide 1: March 2023 Investor Presentation
March 2023 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 • 1990’s • 2003 • 2003 • 2005 • 2012 • 2013 • 2014 • 2014 • 2016 • 2017 • 2018 • 2018 • 2019 • 2021 • 2022 • 2022 Began as Dixie Mercerizing in Chattanooga, TN Transitioned from textiles to floorcovering Refined focus on upper- end floorcovering market Launched Dixie Home - uppe
Slide 4: Dixie Today
Dixie Today • Commitment to brands in the upper-end residential market with strong growth potential. • Diversified customer base – Top 10 customers • 9% of sales – Top 100 customers • 27% of sales 4
Slide 5: Net Sales of Residential Products
Net Sales of Residential Products ($ shown in millions) 5 0 50 100 150 200 250 300 350 400 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Residential Products
Slide 6: Dixie Group Business Drivers
Dixie Group Business Drivers 6 • 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 G THE DIXIE GROUP Leading Indicator of Remodeling Activity — Fourth Quarter 2022 Homeowner Improvements & Repairs Four-Quarter Moving Totals Four-Quarter Moving Billions Rate of Change $600 son 15.9% 17.6% 16.3% pr 20% 10.6% 10.9% 11.3% 11.7% 12.0% 11.6% > 18% 8.4% 10% $400 5.8%
Slide 9: 2021 U.S. Flooring Manufacturers
2021 U.S. Flooring Manufacturers Source: Floor Focus - Flooring includes sales of carpet, rugs, ceramic floor tile, wood, laminate, resilient and rubber 9 Flooring Manufacturers Flooring $ in millions Flooring Market % Shaw (Berkshire Hathaway) 6,144 25.1% Mohawk (MHK) 5,259 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 an emphasis on beautiful a
Slide 11: High-End Residential Sales by Brand
Dixie Group High-End Residential Sales All Brands Sales by Brand for Q4 2022 Trailing Twelve Months 11 Trucor Masland Dixie Home Mass Merchant Fabrica
Slide 12: High-End Residential Sales by Channel
Dixie Group High-End Residential Sales All Brands Sales by Channel for Q4 2022 Trailing Twelve Months The company believes that a significant portion of retail sales also involve a designer. 12 Retailer Designer Other Builder
Slide 13: Market Share
Market Share 13 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% The Dixie Group - Residential Market Share Sales by The Dixie Group as a percent of the estimated total market – Residential Tufted Broadloom only
Slide 14: Dixie Home: Affordable Fashion
• 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 the specialty retail channel. • Growth initiatives – TRUCOR® SPC floorin
Slide 15: Masland: Inspired by Design
• Inspired by Design: 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 • The most versatile offering in the industy • Growth initiatives – TRUCOR® Prime WPC flooring – TRUCOR® E
Slide 16: Fabrica: Quality without Compromise
• Quality without Compromise: beautiful, high end residential products, manufactured with the finest raw materials and an unwavering commitment to quality and attention to detail. • Designer focused, approximately 26% of sales directly involve a designer • Custom construction, pattern, and color cap
Slide 17: Current Business Conditions
Current Business Conditions Cost Reduction Plan – expected to reduce expenses year over year by an estimated amount in excess of $40 million. Planned reductions include: • Reduced employee headcount by 320 from the beginning of 2022. • Converted our existing nylon broadloom styles to new raw materia
Slide 18: ” HoraserR
” HoraserR INSPIRED BY DESIGN. RS KS DIXIE GROUP TRUCOR FLOORING SIMPLIFIED