Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (May 2012)
37 slides from Dixie's investor presentation, May 7, 2012
Slide 1: The Dixie Group Investor Presentation May 2012
Exhibit 99.1 OG THE DIXIE GROUP May 2012 Investor Presentation eal Ay) Contact: ya) Jon Faulkner CFO The Dixie Group Phone: 706-876-5814 jon.faulkner @dixiegroup.com
Slide 2: Forward Looking Statements
Forward Looking Statements XG NS The Dixie Group, Inc. 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
Slide 3: Dixie History
Dixie History XG 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 For over 90 years we have focused on specialized products Traditionally we have outperformed the industry and expect
Slide 4: Dixie Today
Dixie Today XS 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 * 17% of sales — Top 20 carpet customers * 20% of sales
Slide 5: New and Existing Home Sales
New and Existing Home Sales Seasonally Adjusted Rate RU Ri OB PATE: CERES Ue New 1,000 Existing 1,000 650 5,500 March 2011: = Existing home sales up 5% 600 day Creal from a year ago and ona Response steady recovery 550 5,000 = New home sales have been near the 310,000 rate for over 500 4500” “Existi
Slide 6: Residential Remodeling
Residential Remodeling Owner-Occupied Improvements* XS Steady recovery in 2009 through 2011 with predicted similar pattern for 2012. Millions of dollars $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 J \ 2012 by month oo 601 02 03 04 05 O6 O7 O08 o9 10 11. wan Feb html Private
Slide 7: The Industry versus GDP
The Industry versus GDP THE DIXIE GROUP 18,000,000 16,000,000 12,000,000 10,000,000 Value of U.S. Carpet & Rug Shipments versus U.S. GDP (\ A 2012 = We are starting to see a rebound he Sf Vv 4,000 between carpet and rug shipments and GDP = We believe that the long-term trend will once again be resto
Slide 8: Residential and Commercial Fixed Investment
Residential and Commercial Fixed Investment THE DIXIE GROUP Fixed Investment as % of GDP (U.Dept of Commerce) No rebound in residential activity Slight rebound in commercial activity reside Fed investment % of GOP = = regent 2 Yerverage comarca structs Fite nvertment a5 of GOP = = Commerc s2 vr aver
Slide 9: Consumer Sentiment
Consumer Sentiment Conference Board THE DIXIE GROUP . . é » a . a » Fo gf of oF gf PEE LESS IESE OPES — Siege gs April 2012: = Consumer sentiment is moderating (blue) = Upper-end consumer confidence is up (red) = "Consumer Confidence was virtually unchanged in April” ss. “Overall, consumers, more up
Slide 10: Dow Jones Industrial Average, April 2012
® we rr @ = x oO ° - i?) © <= _— DIXIE GROUP THE April 2012 has rebounded to pre-recession = The stock market levels = 2012 is positive but is still subject to macro events: «Europe, «US Election, =China Dow Jones Industrial Average NN pay wt? Wh rN A 14000 12,000 000 000 2,000
Slide 11: The Industry
The Industry THE DIXIE GROUP Value of U.S. Carpet & Rug Mill Shipments ($.000'5) 20,000,000 350000 18,000,000 Sales of The Dixie Group from 2003 through 2011 seats essai Dixie is gaining the economy rebounds _ YON ST sae single year a \/ 12,000,000 } | ‘ale 10,000,000 t | ae Ls 8,000,000 m4 Ww) seo
Slide 12: 2010 U.S. Carpet Manufacturers
2010 U.S. Carpet Manufacturers XG THE DIXIE GROUP Dollars in Carpet & Rug Sales Millions % Total Shaw S 3,024 31.2% Mohawk S 2,442 25.2% Beaulieu $ 896 9.2% Interface S 496 5.1% Dixie S 225 2.3% Other $ 2,618 27.0% Market S 9,701 100.0% Source: Floor Focus 12
Slide 13: The Industry
The Industry XG THE DIXIE GROUP Sales $10.19 Billion Sales $7.16 Billion Commercial 35% Commercial 43% 001-2011 Source: Floor Focus — Broadloom & Carpet Tile ee tise 13
Slide 14: Dixie Group Carpet Sales
Dixie Group Carpet Sales XG THE DIXIE GROUP = ps = From 29% to 38% Residential 72%
Slide 15: Carpet Dollar Sales
Carpet Dollar Sales XG Indexed to 2008 THE DIXIE GROUP
Slide 16: Carpet Unit Sales
Carpet Unit Sales XG Indexed to 2008 THE DIXIE GROUP qu 2008 3 2008 a1 2009 93 2009 a1 2010 3 2010 qi 2011 Q3 2011 qu 2012
Slide 17: Residential Positioning
Residential Positioning The Dixie Group THE DIXIE GROUP MARKET ESTIMATED TOTAL WHOLESA\ CARPETS AND RUG: VOLUME AND PRICE POINTS a Positioning of Dixie Brands by Price Point Segment Ss (Over $20 per SQ YD) esr, : man 2 "D4 ea 'T4 $3 BROADLOOM RESIDENTIAL SALES = $7.0 Billion (2009 $’s) 28 g a 23 3 s
Slide 18: Dixie Group High-End Residential Sales
Dixie Group High-End Residential Sales OG All Brands THE DIXIE GROUP
Slide 19: Dixie Group High-End Residential Sales
Dixie Group High-End Residential Sales SG All Brands THE DIXIE GROUP Commercial, 2% Other, 1%. Distributor, Specialty - Builder, 3% OEM, 1% National Retailers, 2%. / Merchant, 15% Retailer, 56% 19
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Slide 21: Well-styled moderate to upper priced residential broadloom line
NS THE DIXIE GROUP Well-styled moderate to upper priced residential broadloom line Dixie provides a “full line” to retailers Leverage needed by fiber suppliers for market access Selective distribution strategy attractive to retailers Growth initiatives — Stainmaster® SolarMax ® Fiber Technology — Du
Slide 22: Sales by Channel for TTM Q1 2012
CARPETS&RUG Sales by Channel for TTM Q1 2012 Commercial, 5% Other, 1% Builder, 4%___ | National < Retailers, 1% Designer, 30%
Slide 23: Leading high-end carpets and rugs brand
Wine CARPETS&RUGS Leading high-end brand with reputation for innovative styling, design and color High-end retail / designer driven Hand crafted and imported rugs Growth initiative — Stainmaster® TruSoft™ Fiber Technology — Wool products * Introduced in 2007 * Now offering complete line to the indus
Slide 24: Fabrica Fine Carpet & Rug
FABRICA . BS... FINE CARPET & RUG Specialty - Retailers, 8% Retailer, 46%
Slide 25: Fine Carpet & Rugs
CA FINE CARPET & RUGS NS THE DIXIE GROUP . Premium high-end brand — Superior quality in all aspects Designer focused Hand crafted and imported rugs Growth initiative — Stainmaster® TruSoft™ Fiber Technology — Focus on retail penetration — Full service supplier of wool to the designer trade with exce
Slide 26: Commercial sales by channel
NS THE DIXIE GROUP Hospitality, 23% Education,, 4% : Interior Design an ind User
Slide 27: Premium commercial brand
are XG 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 User Channel
Slide 28: Dixie Group Sales
Dixie Group Sales $ in millions THE DIXIE GROUP $331 $321 $283 $203 $231 $270 $273 2006 2007 2008 2009 2010 2011 2012 Seasonally Adjusted ™ Carpet Sales '™ Processing Sales
Slide 29: Sales & Operating Income
Sales & Operating Income OG $ in millions THE DIXIE GROUP 107 2010 Net Sales 320.8 20 282.7 203.5 231.3 270.1 Net Income (Loss) 6.2 (31.5) (42.2) (4.7) 1.0 Non-GAAP Adjusted Operating Income (Loss) 16.7 1.5 (8.4) (1.0) 5.1 Non-GAAP Adjusted EBITDA 29.6 15.2 5.1 10.6 14.8 2011 2 2011 03 2011 442011 1
Slide 30: Current Business Conditions
. a ~ Current Business Conditions aS 2012 Activity THE DIXIE GROUP Sales Activity: ¢ First quarter ona similar weeks basis to 201 |,sales up 2.6% - Masland and Fabrica residential carpet sales up double digits - Total residential up nearly 6% - Commercial growth has slowed from previous quarters * O
Slide 31: Outlook
RG Outlook G Current quarter THE DIXIE GROUP Though the market has been difficult, we are encouraged by: * Dixie’s high end goods are growing faster than the lower end * Positive market reception to our new products: - Masland and Fabrica Wool Collections continued growth - Masland Avenue — new tech
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Slide 33: Non-GAAP Information
Non-GAAP Information THE DIXIE GROUP Use of Non-GAAP Financial Information: pany which in evaluating c ’s busi y provi ial it ion with additional meaningful 2 pany d results in a prior period, rs i ive to od. However, the non-GAAP performance in addition to, not Iternative fo ; results ing princi pt
Slide 34: Non-GAAP Information
Non-GAAP Information Ss THE DIXIE GROUP ($ in thousands) Q12011 Q12012 Y/Y Qtr Chge Weeks in Period 14 13 Net Sales as Reported 65,954 62,851 -4.7% Adjustment for Weeks 1,711) - 7.3% Non-GAAP Net Sales as Adjusted (Note 1) $ 61,243 $62,851 2.6%
Slide 35: Note a: Restated
Note a: Restated (Sin thousands) 2007 (a) 2008 (a) 2009(a) 2010 2011 Operating income (loss) 16,707 (28,460) (45,389) (2,570) 5,668 Plus: Facility lidation and - 2,317 4,091 1,556, (563) Plus: Impairment of assets - 4478 1,459 : : Plus: Impairment of goodwill : 23,121 31, Non-GAAP Adjusted Operating
Slide 36: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information; Adjusted Operating Income (Loss)-Note2 (Sin thousands) Q12011 Q22011 32011 Q42011 Q12012 Operating income (loss) 1,668 2,300» 1,178 520 620 Plus: Facility lidation and - (563) - - : Plus: Impairment of assets - 7 = 2 “ Plus: Impairment of goodwill + : : : : Non
Slide 37: Non-GAAP Information
Non-GAAP Information THE DIXIE GROUP ($ in thousands) Q12011 Q22011 Q32011 Q42011 Qi2012 Non-GAAP Adjusted EBIT (from above) 1,685 2,290 882 568 617 Times: 1 - Tax Rate = EBIAT 1,096 1,489 573 369 401 Plus: Depreciation and Amortization 2,519 2,360 2,422 2,348 2,402 Plus: Non Cash Impairment of Asse