Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (August 2022)
18 slides from Dixie's investor presentation, Aug 15, 2022
Slide 1: August 2022 Investor Presentation
August 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 – Top 10 customers • 12% 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 '15 Jan '16 J
Slide 8: Remodeling Activity
Remodeling Activity G Leading Indicator of Remodeling Activity - Second Quarter 2022 Homeowner Improvements & Repairs Four-Quarter Moving Totals Four-Quarter Moving Billions Rate of Change $550 | 15.9% 17.3% 17.4% 5 20% 14.9% $500 + : F aig) 2 ee ; : - 10% tot Meas : Ff F yo 0% $350 = STITT as $250
Slide 9: 2021 U.S. Flooring Manufacturers
2021 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 % 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 Q2 2022 Trailing Twelve Months 11
Slide 12: High-End Residential Sales by Channel
Dixie Group High-End Residential Sales All Brands 12 Sales by Channel for Q2 2022 Trailing Twelve Months 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 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% TDG Resid Market Share
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 • We announced the formation of a joint venture in August, 2022 to begin domestic production of luxury vinyl flooring in our existing manufacturing facility. • Net sales from continuing operations in the second quarter of 2022 were 7% below the second quarter of 2021. Yea
Slide 18: Inspired by Design
INSPIRED BY DESIGN.