Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (April 2006)
18 slides from Dixie's investor presentation, Apr 4, 2006
Slide 1: Cork, owe ranricr Masland
Cork, owe ranricr Masland
Slide 2: Dixie's Carpet Sales Outperformed the U.S. Carpet Market in Recent Years
Dixie Industry Began Growth Initiatives Dixie's Broadloom and Area Rug Carpet Sales have Dixie's Broadloom and Area Rug Carpet Sales have Outperformed the U.S. Carpet Market in Recent Years Outperformed the U.S. Carpet Market in Recent Years In 2002, Dixie grew at 1% while the market grew at 2.6% 20
Slide 3: Dixie Carpet and Rug Sales by End Market
High-End Residential, 69% High-End Commercial, 31% Dixie Carpet and Rug Sales by End Market Dixie Carpet and Rug Sales by End Market Year 2005
Slide 4: Residential Positioning of The Dixie Group
Residential Positioning of The Dixie Group Residential Positioning of The Dixie Group INDUSTRY AVERAGE PRICE/ SQ YD $0 $7 $14 $21 $28 $35 $42 $49 Note: Industry average price is based on sales reported through industry sources. Dixie Home Fabrica Masland ESTIMATED TOTAL WHOLESALE MARKET FOR CARPETS
Slide 5: Dixie High-End Residential Sales
Dixie High-End Residential Sales Dixie High-End Residential Sales Fabrica, 29% Dixie Home, 27% Masland, 44% Year 2005
Slide 6: Residential Broadloom - Dixie Home
Residential Broadloom - Residential Broadloom - Dixie Home Dixie Home Launched 2003 Fulfill market need for third player o Well-styled moderate to upper priced line Leverage needed by fiber suppliers for market access o Branded high-styled goods - not "me too" o Support fiber suppliers' branded prod
Slide 7: Masland Residential Sales
Retailers, 45% Designer / To The Trade Showrooms, 26% Builders, 21% Masland Residential Sales Masland Residential Sales Year 2005
Slide 8: Masland Residential
Masland Residential Masland Residential Leading high-end brand with reputation for development of products with innovative styling, design and color High-end retail/designer driven Hand crafted and imported rugs Growth initiative - increasing product introductions to increase market penetration
Slide 9: Fabrica Residential Sales
Decorators/ Design Trade, 42% Retailers, 26% Furniture/ Dept. Stores, 9% Specialty, 16% Fabrica Residential Sales Fabrica Residential Sales Year 2005
Slide 10: Fabrica Residential
Fabrica Residential Fabrica Residential Premium high-end brand o Leader in styling/patterns/color Designer focused Hand crafted and imported rugs Growth in sales and profit since July 2000 acquisition
Slide 11: Masland Contract Sales
Corporate, 35% Hospitality, 29% Other, 6% Store Planning, 8% Retail Stores, 17% Masland Contract Sales Masland Contract Sales Channels: Interior Design Specifier and Commercial End User Year 2005
Slide 12: Masland Contract
Masland Contract Masland Contract Good and growing position with premium brand Designer focused Strong national account base Strong growth driven by new "Energy Collection" o Contract carpet sales grew 8% in 2003, 15% in 2004 and 12% in o Expected to grow significantly in 2006 KSA study - identified
Slide 13: The Energy Line has Contributed Significantly to this Strong Growth
The Energy Line has Contributed Significantly The Energy Line has Contributed Significantly to this Strong Growth to this Strong Growth The Energy Line was started from the ground up in 2002 and generated over $13 million, $22 million and $31 million; respectively, in sales for Masland during 2003,
Slide 14: Masland Contract has Performed Higher than the U.S. Commercial Carpet Market
Masland Contract has Performed Higher than Masland Contract has Performed Higher than the U.S. Commercial Carpet Market the U.S. Commercial Carpet Market 1998 was a great year for Masland Contract, which grew 52% that year while the market only grew 5% From 1999 to 2002, Masland Contract performed a
Slide 15: Dixie Profit Margin, Sales and Administrative Expenses as a % of Sales
25.9% 25.3% 25.1% 24.1% 30.3% 34.1% (2) 34.1% 34.6% 31.9% 28.1% (1) 20.0% 25.0% 30.0% 35.0% 40.0% Gross Profit Selling & Admin. Expense Dixie Profit Margin, Sales and Administrative Dixie Profit Margin, Sales and Administrative Expenses as a % of Sales Expenses as a % of Sales (1) - Launch Dixie Hom
Slide 16: Dixie Sales Continuing Operations
Dixie Sales Continuing Operations Dixie Sales Continuing Operations ($ in millions) ($ in millions) $194 $37 $197 $26 $217 $17 $274 $18 (1) $305 $14 Carpet Sales Yarn Sales $231 $223 $234 $292 (1) - Includes sales related to disposal of North GA operations $319
Slide 17: Dixie Operating Income
Dixie Operating Income Dixie Operating Income ($ in millions) ($ in millions) $14.0 $24.1 (1) $2.8 (2) $25.6 (3) $19.8 (4) (1) - Includes $3.2 million net gains from the sale of facilities and impairments (2) - Includes $11.4 million of impairments and charges (3) - Includes LIFO liquidation that in
Slide 18: Dixie Capital Structure
Dixie Capital Structure Dixie Capital Structure ($ in millions) ($ in millions) 43% Total Debt 11% Subordinated Debt 32% Senior Debt Debt to Total Capitalization: $ 217.7 Total Capitalization 123.5 Equity $ 94.2 24.7 Subordinated Debt $ 69.5 Senior Debt Dec. 31, 2005 Debt: