Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (January 2007)
25 slides from Dixie's investor presentation, Jan 16, 2007
Slide 1: The Dixie Group January 2007
EXHIBIT 99.1 Vm OG January 2007 Lend. HOME: AABRICA Masland contract
Slide 2: Forward-Looking Statements
DG THE DIXIE GROUP Forward-Looking Statements 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 dem
Slide 3: Dixie History
OSG THE DIXIE GROUP Dixie History Began operations in 1920 Grew floorcovering business from 1993 and exited textiles in 1999 - now 100% floorcovering Eight acquisitions from 1993 through 2000 Sold factory-built housing and needlepunch carpet operations in 2003 Commitment to brands and upper-end mark
Slide 4: Profitable, growing company with strong brands in the upper-end market
* Profitable, growing company with strong brands in the upper-end market * Strong balance sheet * Diversified customer base o Top 20 carpet customers - 15% of total carpet sales o Top 40 carpet customers - 18% of total carpet sales
Slide 5: Dixie Carpet and Rug Sales by End Market
OG THE DIXITE GROUP Dixie Carpet and Rug Sales by End Market Year 2005
Slide 6: Residential Positioning of The Dixie Group
AS KS THE DIXIE GROUP Residential Positioning of The Dixie Group ESTIMATED TOTAL WHOLESALE MARKET FOR CARPETS AND RUGS: VOLUME AND PRICE POINTS Positioning of Dixie Brands by Price Point Segment ATED Dar, BROADLOOM RESIDENTIAL SALES = $7.6 Billion TOTAL MARKET: SQUARE YARDS OR SALES DOLLARS 35% Mark
Slide 7: Dollar Sales Growth vs. Carpet Industry
=~ OG THE DIXIE GROUP Precent Change Dollar Sales Growth vs. Carpet Industry BROADLOOM CARPET SALES DOLLARS CHANGE PER YEAR — 2002 THROUGH 2006 15% > @ Dixie - CAGR 2002 -2006 12.5% 10% @ industry - CAGR 2002 -2006 4.6% 5% 4 0%+4 2002 2003 2004 2005 YTD Sept. 2006
Slide 8: Unit Sales Growth vs. Carpet Industry
Re BS THE DIXIE GROUP Percent Change Unit Sales Growth vs. Carpet Industry BROADLOOM CARPET SALES IN UNITS CHANGE PER YEAR — 2002 THROUGH 2006 40% - m Dixie - CAGR 2002 - 2006 ood 13.1% 5 @ Industry - CAGR 20% + 2002 - 2006 01% 10% - 0% 4 1 r | 10% 2002 2003 2004 2005 «YTD Sept. 2006
Slide 9: Dixie High-End Residential Sales
XG THE DIXIE GROUP Dixie High-End Residential Sales Year 2005
Slide 10: Residential Broadloom - Dixie Home
OG THE DIXIE GROUP Residential Broadloom - Dixie Home Launched in 2003 Fulfill market need for third player o Well-styled moderate to upper priced line Leverage needed by fiber suppliers for market access o Branded high-styled goods - not “me too" o Support fiber suppliers’ branded products Selectiv
Slide 11: Masland Residential Sales
OG THE DIXIE GROUP Masland Residential Sales Year 2005 a1
Slide 12: Masland Residential
S THE DIXIE GROUP Masland Residential Leading high-end brand with reputation for development of products with innovative styling, design and color High-end retail/designer driven Hand crafted and imported rugs Growth initiative — o Increasing product introductions to increase market penetration o Wo
Slide 13: Fabrica Residential Sales
OG THE DIXIE GROUP Fabrica Residential Sales Year 2005 13
Slide 14: Fabrica Residential
Fabrica Residential Premium high-end brand o Leader in styling/patterns/color Designer focused Hand crafted and imported rugs New products, heightened focus on retail penetration and wool products will drive growth FABRICA 14
Slide 15: Masland Contract Sales
OG THE DIXIE GROUP Masland Contract Sales Year 2005 Channels: Interior Design Specifier and Commercial End User 15
Slide 16: Masland Contract
OG THE DIXIE GROUP Masland Contract Good and growing position with premium brand Designer focused Strong national account base Strong growth driven by “Energy Collection" o Contract carpet sales grew 8% in 2003, 15% in 2004, 12% in 2005 and 10% in the 1% nine months of 2006 o Expected to grow signif
Slide 17: The Energy Line has Contributed Significantly to Strong Commercial Growth
OG THE DIXIE GROUP The Energy Line has Contributed Significantly to Strong Commercial Growth The Energy Line was started from the ground up in 2002 and generated over $13 million, $22 million and $31 million; respectively, in sales for Masland during 2003, 2004 and 2005 Energy Line sales were $23.7
Slide 18: Masland Contract has Performed Better than the U.S. Commercial Carpet Market
Lo OG THE DIXITE GROUP Masland Contract has Performed Better than the U.S. Commercial Carpet Market Started in 1993 — significant growth in the 1990’s From 1999 to 2002, Masland Contract performed at about the same rate as the market In 2003, Masland Contract grew 8% while the market declined slight
Slide 19: Dixie Sales Continuing Operations
OG THE DIXIE GROUP Dixie Sales Continuing Operations ($ in millions) $319 $292 ] : | 2001 (si2002——( ssi st m Carpet Sales © Yarn Sales (1)- Includes sales related to disposal of North GA operations 19
Slide 20: Dixie Operating Income
OG THE DIXILE GROUP Dixie Operating Income ($ in millions) 25.6 B) $24.1 (1) $ $19.8 (4) $14.0 $2.8 (2) 2001 2002 2003 2004 2005 (1) - Includes $3.2 million net gains from the sale of facilities and impairments (2) - Includes $11.4 million of impairments and charges (3) - Includes LIF O liquidation
Slide 21: Dixie YTD September Sales
OG THE DIXIE GROUP Dixie YTD September Sales ($ in millions) $250.8 $230.8 $209.3 2003 2004 2005 2006 ™ Carpet Sales © Yarn & Olver (1) - Includes sales related to disposal of North GA operations 21
Slide 22: Dixie YTD September Operating Income
OG THE DIXILE GROUP Dixie YTD September Operating Income ($ in millions) $17.0 $14.4 $14.5 ] J | 2003 2004 2005 2006 22
Slide 23: Dixie Capital Structure
DG THE DIXIE GROUP Dixie Capital Structure Debt: Senior Debt Subordinated Debt Equity Total Capitalization Debt to Total Capitalization: Senior Debt Subordinated Debt Total Debt ($ in millions) Sept. 30, 2006 $ 76.6 22.2 $ 98.8 131.2 $ 230.0 23
Slide 24: Current Business Conditions
~~ XG THE DIXIE GROUP Current Business Conditions Carpet industry’s business soft: Sales Dollars Units Sold Dixie | Industry | Dixie | Industry 3" QT 2006 8% -3% 5% -10% YTD Sept. 2006 10% 2% 12% -5% Our sales grew 4% in October, but orders declined due to price increases a year ago and industry wea
Slide 25: Outlook
OG THE DIXILE GROUP Outlook ° Although the industry is experiencing a difficult period, we are encouraged by several actors: o Favorable comparison in units and dollars to the industry o Sales improvement in each of our four businesses in the third quarter and first nine months of this year o Improv