Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (May 2006)
22 slides from Dixie's investor presentation, May 10, 2006
Slide 1: Masland (cover)
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Slide 2: Dixie's Year-Over-Year Comparison with Industry: Dollar Sales
-10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 1st QT 2nd QT 3rd QT 4th QT 1st QT 2nd QT 3rd QT 4th QT 1st QT 2nd QT 3rd QT 4th QT 1st QT Dixie $'s Ind. $'s Dixie's Year-Over-Year Comparison with Industry Dixie's Year-Over-Year Comparison with Industry Dollar Dollar Sales Sales – – st st QT QT Throu
Slide 3: Dixie's Year-Over-Year Comparison with Industry: Unit Sales
-5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 1st QT 2nd QT 3rd QT 4th QT 1st QT 2nd QT 3rd QT 4th QT 1st QT 2nd QT 3rd QT 4th QT 1st QT Dixie Units Ind. Units Dixie's Year-Over-Year Comparison with Industry Dixie's Year-Over-Year Comparison with Industry Unit Sales – Unit Sales – st st QT 2003 Thro
Slide 4: Dixie Carpet and Rug Sales by End Market
High-End Residential, 69% High-End Commercial, 31% Dixie Carpet and Rug Sales by End Market Dixie Carpet and Rug Sales by End Market Year 2005
Slide 5: Residential Positioning of The Dixie Group
Residential Positioning of The Dixie Group Residential Positioning of The Dixie Group INDUSTRY AVERAGE PRICE/ SQ YD $0 $7 $14 $21 $28 $35 $42 $49 Note: Industry average price is based on sales reported through industry sources. Dixie Home Fabrica Masland ESTIMATED TOTAL WHOLESALE MARKET FOR CARPETS
Slide 6: Dixie High-End Residential Sales
Dixie High-End Residential Sales Dixie High-End Residential Sales Fabrica, 29% Dixie Home, 27% Masland, 44% Year 2005
Slide 7: Residential Broadloom - Dixie Home
Residential Broadloom - Residential Broadloom - Dixie Home Dixie Home • Launched 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' brande
Slide 8: Masland Residential Sales
Retailers, 45% Designer / To The Trade Showrooms, 26% Builders, 21% Masland Residential Sales Masland Residential Sales Year 2005
Slide 9: Masland Residential
Masland Residential 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 - increasing product introductions to increase market penetrat
Slide 10: Fabrica Residential Sales
Decorators/ Design Trade, 42% Retailers, 26% Furniture/ Dept. Stores, 9% Specialty, 16% Fabrica Residential Sales Fabrica Residential Sales Year 2005
Slide 11: Fabrica Residential
Fabrica Residential Fabrica Residential • Premium high-end brand o Leader in styling/patterns/color • Designer focused • Hand crafted and imported rugs • Growth in sales and profit since July 2000 acquisition
Slide 12: Masland Contract Sales
Corporate, 35% Hospitality, 29% Other, 6% Store Planning, 8% Retail Stores, 17% Masland Contract Sales Masland Contract Sales Channels: Interior Design Specifier and Commercial End User Year 2005
Slide 13: Masland Contract
Masland Contract Masland Contract • Good and growing position with premium brand • Designer focused • Strong national account base • Strong growth driven by new "Energy Collection" o Contract carpet sales grew 8% in 2003, 15% in 2004, 12% in 2005 and 16% in the 1 st quarter 2006 o Expected to grow s
Slide 14: The Energy Line has Contributed Significantly to this Strong Growth
The Energy Line has Contributed Significantly The Energy Line has Contributed Significantly to this Strong Growth to this Strong Growth • The Energy Line was started from the ground up in 2002 and generated over $13 million, $22 million and $31 million; respectively, in sales for Masland during 2003
Slide 15: Masland Contract has Performed Higher than the U.S. Commercial Carpet Market
Masland Contract has Performed Higher than Masland Contract has Performed Higher than the U.S. Commercial Carpet Market the U.S. Commercial Carpet Market • 1998 was a great year for Masland Contract, which grew 52% while the market only grew 5% • From 1999 to 2002, Masland Contract performed at abou
Slide 16: Dixie Profit Margin, Sales and Administrative Expenses as a % of Sales
25.9% 25.3% 25.1% 24.1% 30.3% 34.1% (2) 34.1% 34.6% 31.9% 28.1% (1) 20.0% 25.0% 30.0% 35.0% 40.0% Gross Profit Selling & Admin. Expense Dixie Profit Margin, Sales and Administrative Dixie Profit Margin, Sales and Administrative Expenses as a % of Sales Expenses as a % of Sales (1) - Launch Dixie Hom
Slide 17: 1st Quarter Profit Margin, Sales and Administrative Expenses as a % of Sales
26.7% 24.7% 24.3% 32.2% 34.9% 33.4% (2) 30.6% 28.0% 29.4% (1) 27.3% 20.0% 25.0% 30.0% 35.0% 40.0% Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Gross Profit Selling & Admin. Expense st st Quarter Quarter Profit Margin, Sales and Administrative Profit Margin, Sales and Administrative Expenses as a % of Sal
Slide 18: Dixie Sales Continuing Operations
Dixie Sales Continuing Operations Dixie Sales Continuing Operations ($ in millions) ($ in millions) $194 $37 $197 $26 $217 $17 $274 $18 (1) $305 $14 Carpet Sales Yarn Sales $231 $223 $234 $292 (1) - Includes sales related to disposal of North GA operations $319
Slide 19: Dixie Operating Income
Dixie Operating Income Dixie Operating Income ($ in millions) ($ in millions) $14.0 $24.1 (1) $2.8 (2) $25.6 (3) $19.8 (4) (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 LIFO liquidation that in
Slide 20: Dixie 1st Quarter Sales
Dixie Dixie st st Quarter Quarter Sales Sales $45.7 $7.7 $47.0 $4.8 $58.1 $6.3 $68.3 $3.7 $75.8 $3.4 Q1 2002 Q1 2003 Q1 2004 1Q 2005 1Q 2006 Carpet Sales Yarn Sales $72.0 (1) - Includes sales related to disposal of North GA operations $79.2 $64.4 $51.8 $53.4 ($ in millions) ($ in millions)
Slide 21: Dixie 1st Quarter Operating Income
Dixie Dixie st st QT QT Operating Operating Income Income ($ in millions) ($ in millions) $3.5 $2.8 $3.9 $4.3 $3.2 Q1 2002 Q2 2003 Q1 2004 Q1 2005 Q1 2006
Slide 22: Dixie Capital Structure
Dixie Capital Structure Dixie Capital Structure ($ in millions) ($ in millions) 45% Total Debt 11% Subordinated Debt 34% Senior Debt Debt to Total Capitalization: $ 227.8 Total Capitalization 125.2 Equity $ 102.6 24.7 Subordinated Debt $ 77.9 Senior Debt April 1, 2006 Debt: