Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (August 2023)
18 slides from Dixie's investor presentation, Aug 4, 2023
Slide 1: August 2023 Investor Presentation
August 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 Began as Dixie Mercerizing in Chattanooga, TN Transitioned from textiles to floorcovering Refined focus on upper- end floorcovering market Launched Dixie Home - upper end r
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 • 6% of sales – Top 100 customers • 24% of sales 4
Slide 5: Net Sales of Residential Products
Net Sales of Residential Products ($ shown in millions) 5
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 Jan '15 Jan '16 Jan '17 Jan '18 Jan '19 Jan '20 Jan '21 Jan '22 Jan '23 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1,000
Slide 8: Remodeling Activity
Remodeling Activity G THE DIXIE GROUP Leading Indicator of Remodeling Activity - Second Quarter 2023 Homeowner Improvements & Repairs Four-Quarter Moving Totals Four-Quarter Moving Billions Rate of Change 000 9 15.7% at” 15.9% y 20% $500 40.6% 10.9% 11.3% 11.7% 12.0% 11.5% p te | 8.4% 10% $400 + 5%
Slide 9: 2022 U.S. Flooring Manufacturers
2022 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) 6,076 24.7% Mohawk (MHK) 5,306 21.6% MSI 1,435 5.8% Eng
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, Q2 2023 TTM
Dixie Group High-End Residential Sales All Brands 11 Sales by Brand for Q2 2023 Trailing Twelve Months
Slide 12: High-End Residential Sales by Channel, Q2 2023 TTM
Dixie Group High-End Residential Sales All Brands Sales by Channel for Q2 2023 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 Sales by The Dixie Group as a percent of the estimated total residential market 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17
Slide 14: DH Floors brand and growth initiatives
• In January 2023, we rebranded Dixie Home as DH Floors and celebrated 20 years in the market. • Affordable Fashion: DH Floors provides well styled carpet and hard surface designs in the mid to high end residential market. • With a broad range of price points, DH Floors meets the needs of a wide ran
Slide 15: Masland brand and growth initiatives
• Inspired by Design: leading high-end brand with reputation for innovative styling, design and color • High-end retail / designer driven, approximately 18% of sales directly involve a designer • The most versatile offering in the industy • Growth initiatives – TRUCOR® Prime WPC flooring – TRUCOR® E
Slide 16: Fabrica brand and growth initiatives
• 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 24% of sales directly involve a designer • Custom construction, pattern, and color cap
Slide 17: Current Business Conditions
Current Business Conditions Operating Results • The first six months of 2023 results reflected the positive impact of our facility consolidation efforts, fiber conversions and cost reductions as our gross profit margin was 26.7% for the period • The first six months of 2023 operating income was $560
Slide 18: ArcsonR
ArcsonR INSPIRED BY DESIGN. RS KY THE DIXFE GROUP a HOME [E] |} RUCOR’ FLOORING SIMPLIFIED