Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (May 2021)
20 slides from Dixie's investor presentation, May 18, 2021
Slide 1: May 2021 Investor Presentation
May 2021 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 Group Business Drivers
4 Dixie Group Business Drivers • Residentially • The flooring market is driven by residential remodeling activity, 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, dep
Slide 5: New and Existing Home Sales
New and Existing Home Sales Seasonally Adjusted Annual Rate 5 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 6: Remodeling Activity
Remodeling Activity OS THE DIXIE Leading Indicator of Remodeling Activity — First Quarter 2021 Homeowner Improvements & Repairs Four-Quarter Moving Totals GROUP xy Four-Quarter Moving Billions Rate of Change $450 5 10% 6.3% 5.5% 5.4% 9 a 4.7% 4.8% $400 3.4% 30% og 3.0% 20% ° | 5% 1.1% = $350 - 0% =]
Slide 7: Household Formations
Household Formations XG Figure 1: Household Formations HH (mm) HH formations jump on HH (mm) =o Millennial home ownership 3,000 2,000 1,000 ie) (1,000) (2,000) (3,000) oOo vrwonwornrwdacerinrtiOMdtwTwo OM O DO So oO oc @G Oo OO fF SF fF TF KF SEe SF SESE ES ooo oF 2 £2 ooceoed ©: oo oO Gc & & NNN N
Slide 8: 2019 U.S. Flooring Manufacturers
2019 U.S. Flooring Manufacturers 8 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) 5,387 25.2% Mohawk (MHK) 5,084 23.8% Engineered Floors
Slide 9: Dixie versus the Industry
Dixie versus the Industry 2021 First Quarter TTM U.S. Carpet & Rug Market 9 Source: Floor Covering Weekly and Dixie Group estimate TTM: Trailing Twelve Months 2021 First Quarter TTM Dixie sales High End Commercial, 17% High End Residential, 83% Commercial, 37% Residential, 63%
Slide 10: Industry Positioning
Industry Positioning The Dixie Group • Strategically our residential and commercial businesses are 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” w
Slide 11: Residential Business
Residential Business • Residential represents 85% of TDG sales today • Doubled our market share of carpet in the past 10 years, aided by an upper end segment that is outpacing the market • Successfully entered the hard surface market in the rigid core and engineered wood segments 11
Slide 12: Dixie Home
• 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 specialty retailers and mass merchants. • Growth initiatives – TRUCOR™ S
Slide 13: Masland Residential
• Leading high-end brand with reputation for innovative styling, design and color • High-end retail / designer driven – Hand crafted and imported rugs • Growth initiatives – TRUCOR Prime™ WPC Luxury Vinyl Flooring & – TRUCOR™ Energy SPC flooring – Wool products in both tufted and woven constructions
Slide 14: Fabrica
• Premium high-end brand – “Quality without Compromise” • Designer focused – Hand crafted and imported rugs • Growth initiatives – Fabrica Fine Wood Flooring, a sophisticated collection of refined wood flooring – EnVision 6,6™ nylon – Luxury wool products in tufted and woven constructions 14
Slide 15: Commercial Market Positioning
Commercial Market Positioning The Dixie Group • We focus on the “high-end specified soft floorcovering contract market” • Our AtlasMasland products – Designer driven focused on the fashion oriented market space – Broad product line for diverse commercial markets • Our Masland eNergy products – Sells
Slide 16: AtlasMasland Commercial Brand
• Upper-end brand in the specified commercial marketplace – Corporate, End User, Store Planning, Hospitality, Health Care, Government and Education markets • Designer focused • Strong national account base • Growth initiatives – Sustaina™ cushion modular carpet backing with the ability to install in
Slide 17: Dixie Group Sales
Dixie Group Sales $ in millions 17 331 321 283 205 231 270 266 345 407 422 397 412 405 375 316 322 0 50 100 150 200 250 300 350 400 450 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM 2021 Net Sales *2016 had 53 weeks.
Slide 18: Sales & Operating Income
Sales & Operating Income $ in millions 18Note: Non-GAAP reconciliation starting on slide 32 Annual FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TTM 2021 Net Sales 344 407 422 397 412 405 375 316 322 Net Income (Loss) 5.3 (1.4) (2.4) (5.3) (9.6) (21.4) 15.3 (9.2) (8.5) Operating In
Slide 19: Current Business Conditions
Current Business Conditions Outlook: • In the first quarter of 2021, we reduced debt by $2 million bringing our total debt reduction to $62 million over the last 33 months. • Borrowing availability of $44 million under our Senior Revolving Credit Facility. • Our residential division has gained marke
Slide 20: Inspired by Design
INSPIRED BY DESIGN. DIXIE HOMEPe RY A THE DIXTE GROUP