Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (August 2011)
35 slides from Dixie's investor presentation, Aug 4, 2011
Slide 1: August 2011 Investor Presentation
Exhibit 99.1 August 2011 Investor Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements OS THE DIXIE GROUP ¢ 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 of d
Slide 3: Dixie History
Dixie History OSG F THE DIXIE GROUP * Began operations in 1920 ¢ Entered floorcovering in 1993 and exited textiles in 1999 — now 100% floorcovering * Refined focus on upper end markets in 2004 * Traditionally we have outperformed the industry and expect to do so in the future
Slide 4: Dixie Today
Gam Dixie Today OSG , THE DIXIE GROUP * Commitment to brands in the upper-end market with strong growth potential ¢ Diversified between Commercial and Residential markets ¢ Diversified customer base = Top 10 carpet customers— 18% of carpet sales = Top 20 carpet customers—21% of carpet sales
Slide 5: New and Existing Home Sales
New and Existing Home Sales Seasonally Adjusted Rate megs New 1.000 Existing 1.000 000 + —__ New Homes —Existing Homes 900 + 7,000 Tax Credit eo Response | 6.500 \ wee. + 6,000 ; 5,500 500 ; 5,000 400 ; 4,500 300 200 + 4,000 100 3,500 Jan ‘07 July Jan "08 July Jan ‘09 July Jan "10 July Jan "14 E OSG
Slide 6: Residential Remodeling
Residential Remodeling RF Owner-Occupied Improvements* OG 6 THE DIXIE GROUP Millions of dollars Improvement expenditures have leveled off in the March to June time frame. $150,000 $140,000 Py $130,000 $120,000 — $110,000 = < In 2010, expendituresincreased $200.00 ret 2.3% in 2010 from 2009. $90,000
Slide 7: The Industry
The Industry XG THE DIXIE GROUP Mfg. Value US Carpet and Rug Mill Shipments ($ 000's) 16,000,000 14,000,000 12,000,000 gore, 12 to 18months dips during recessionary times 10,000,000 \ — 6,000,000 \ Multi-year decline 400,000 2,000,000 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999
Slide 8: The Industry versus GDP
The Industry versus GDP SS THE DIXIE GROUP Value of U.S. Carpet and Rug Mill Shipments. ‘versus Gross Domestic Product 2010: asamp 290 . | «Weare startingto sapmgon x | a.m see areboundin the relationship betweencarpet Zameen v=" | andrug shipments and GDP nam = + anmm =We believe that the iii wa lo
Slide 9: The Industry versus Fixed Investment
os The Industry versus AGS Fixed Investment WR Bixis exowe ° Fixed Investment as % of GDP [MSDept. of Commerce] at 5 of OF eee
Slide 10: Consumer Sentiment
Consumer Sentiment AS University of Michigan nay “caw 0 1966=100 = June 2011: 95 30 = The consumeris uncertain. bed «Falling gasoline and food prices 80 helped consumer sentiment but 75 uncertainty prevails 70 = Consumers are perceiving the te economyis slowly improving. = Current conditionsincrease
Slide 11: The Stock Market
The Stock Market BS AI THE DIXIE GROUP Dow Jones Industrial Average sp00 June 2011: 24900 = The stock market rally stalled and \. thenreignited. 2500 0500 p00 Wanker. bia Jan-07 Mar-07 + May-07 — Jul-07 © Sep-07 — Nov-07 | Jan-08 - Mar-08 ~ Jul-08 — Sep-08 — Jan-09 - May-08 ~ Nov-08 ~ Mar-09 ~ May-0
Slide 12: 2010 U.S. Carpet Manufacturers
2010 U.S. Carpet Manufacturers Carpet & Rug Sales Shaw Mohawk Bealieau Interface Dixie Other Market Source: Floor Focus OG Dollars in Millions % Total $ 3,024 31.2% $ 2,442 25.2% $ 896 9.2% $ 496 5.1% $ 225 2.3% $ 2,618 27.0% $ 9,701 100.0% 12
Slide 13: The Industry
The Industry G THE DIXIE GROUP 13 irpet En se irpet En se Sales $10.19 Billion Sales $7.40 Billion Commercial 3575 Commercial: 43% 2001-2010 Source: Floor Focus — Broadloom & Carpet Tile ren sooe tase
Slide 14: From 29% to 38%
From 29% to 38% High-End ‘Commercial 30%
Slide 15: Carpet: Dollar sales indexed to 2004
Carpet RS Dollar sales indexed to 2004 eur oixie GROUP T US in LAV Y WANA = ¥ & qx.2006 aaznee qx 2005 ca 20q ci.20N6 qaz006 3.2007 qI7007 3.2008 qaz00s 32007 qaz009 Q2010 qazae G2 2011
Slide 16: Carpet: Unit sales indexed to 2004
Carpet RS Unit sales indexed to 2004 THE DIXIE GROUP 16
Slide 17: Residential Positioning of The Dixie Group
Residential Positioning of REF Y The Dixie Group een ne eee ESTIMATED TOTAL WHOLESALE MARKET FOR CARPETSAND RUGS VOLUME AND PRICE POINTS &s Positioning of Dixie Brands by Price Point Segment TIM, Try (Over $20 per SQ YD) Dany BROADLOOMRESIDENTIAL SALES 7.0 Billion (2009 $’s) 35% Market Share TOTAL M
Slide 18: Dixie High-End Residential Sales
Dixie High-End REF Ux Residential Sales na a 8 Masland) 42%
Slide 19: Dixie Group High-End Residential Sales
Dixie Group High-End REF Residential Sales (all brands) ..,,, Ries wees Retailer, 54%
Slide 20: Dixie Home: Sales by Channel for Q2 2011 TTM
Slide 21: Sales by Channel for Q2 2011 TTM
fous 9S THE DIXIE GROUP Sales by Channel for Q2 2011 TIM. Commercial, 5% Builder, 5%. National Retailers, 2% Designer, 31% Retailer, 56%.
Slide 22: Leading high-end brand with reputation for innovative styling
AS AY 8 THE DIXIE GROUP Leading high-end brand with reputation for innovative styling, design and color High-end retail / designer driven Hand crafted and imported rugs Growth initiative = New Stainmaster ® value products = Wool products o First introductions in 2007 o Now offering complete line to
Slide 23: Fabrica
FABRICA SS INE CARPET & RUGS Designer, 3
Slide 24: Fabrica Fine Carpet & Rugs
FABRICA FINE CARPET & RUGS 4 Premium high-end brand Designer focused Hand crafted and imported rugs Growth initiative = New products, heightened focus on retail penetration = Fullservice supplier of wool to the designer trade with excellent service and support
Slide 25: Masland
Masland BE esr fee tf THE DIXIE GROUP 25 Health Care 6% 5% Gov't. Be 4% Education 3%
Slide 26: Masland
26 nA Masland SS THE DIXIE GROUP ¢ Premium brand in the commercial marketplace * Designer focused ¢ Strong national account base = Nordstrom’s, Target, Sears, Belk, Delta Air Lines, AECOM, Club Corporation of America * Growth initiative = Modular/carpet tile = End Users
Slide 27: Dixie Sales Continuing Operations
Dixie Sales Continuing AS Operations (in mitiions) AI THE DIXIE GROUP $331 $321 $283 $203 $231 $272 11 7, 6 272 265 199 2008 2009 2010 2011 Annualized 2007 = Carpet Sales @ Processing Sales a
Slide 28: Sales & Operating Income
Sales & Operating Income SG ($ in millions) 2B THE DIXIE GROUP Net Sales 505 59.1 56.7 65.1 66.0 69.2 Net Income {Loss) from continuing operations {2.5) {0.7) {1.9) 0.6 0.6 0.8 Non-GAAP Adjusted Operating Income {Loss) {2.1) 0.2 (1.6) 25 18 17 Non-GAAP Adjusted EBITDA 09 3.1 13 5.2 43 4.1 * Sales ar
Slide 29: Current Business Conditions
Current Business Conditions DG : A The 2"¢ Quarter of 2011 Versus Prior Year THE DIXIE GROUP 29 * Commercial sales up 20% vs. the industry up low double digits ¢ Residential sales up 15% vs. the industry down slightly * Dixie Group sales up 17% vs. the industry up slightly = Allbrands up for the qua
Slide 30: Outlook
Outlook RG Opportunities in the Future al THE DIXIE GROUP Though the market has been difficult, we are encouraged by: * Continued signs of recovery in the commercial sector ¢ Despite slow recovery in the residential sector, we have seen improvement of higher end goods in the luxury market ¢ Positive
Slide 31: Slide 31
Slide 32: Non-GAAP Information
Non-GAAP Information oN) Use of Non-GAAP Financial Information: ‘The Company believes that non-GAAP performance measures, which management uses in evaluating the Company's business, may provide users of the Company's financial information with additional meaningful bases for comparing the Company's
Slide 33: Net Sales as Adjusted
{$in thousands) YTD 2010 YID2011 Y/Y Chge Weeks in Period 26 2 Net Sales as Reported 109,512 135,154 23.4% Adjustment for Weeks - {4,711} 4.3% Non-GAAP Net Sales as Adjusted {Note 1} $109,512 $ 130,443 19.1% 33
Slide 34: Non-GAAP Financial Information
Non-GAAP Financial Information: Adjusted Operating Income (Loss) (in thousands} 2007{a) 208 {ay 2008(a) mo YTD Operating income {loss} 16,707 (2RAGD) 45.389) (2570) 3,008 Plus: Facility consolidation and severance expenses = 2317 AM 1556 (503) Plus: Impairment of assets = AATS 1 = s Plus: Impairment
Slide 35: Non-GAAP Financial Information
Non-GAAP Financial Information: Adjusted OperatingIncome (Loss) {Sin thousands} Qiao Q22m0 Q32m0 aaa giz Qa Operating income (loss) (2.200) so (937) A 682.300 Plus: Facility consolidation and severance expenses Patt 12 Es cory 2 63) Plus: Inpasrment of assets: a = - * ws a Plus: Impairment of goodwi