Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (November 2021)
17 slides from Dixie's investor presentation, Nov 12, 2021
Slide 1: November 2021 Investor Presentation
November 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 Today
Dixie Today • Commitment to brands in the upper- end market with strong growth potential. • Diversified customer base (TTM Basis) – Top 10 customers • 13% of sales – Top 100 customers • 28% of sales 4
Slide 5: Dixie Group Business Drivers
5 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 6: New and Existing Home Sales
New and Existing Home Sales Seasonally Adjusted Annual Rate 6 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 7: Remodeling Activity
Remodeling Activity OS THE DIXIB GROUP Leading Indicator of Remodeling Activity — Third Quarter 2021 Homeowner Improvements & Repairs Four-Quarter Moving Totals Four-Quarter Moving Billions Rate of Change $500 20% $450 12.3% + 15% 9.2% 90% 88% $400 63% 52% now 47% _58% pee 10% i 1% 19% 1.6% 5% 0% $3
Slide 8: 2020 U.S. Flooring Manufacturers
2020 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 % Mohawk (MHK) 5,540 25.1% Shaw (Berkshire Hathaway) 5,500 24.9% Engineered Floors
Slide 9: 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 emphasis on the most beaut
Slide 10: Dixie Group High-End Residential Sales by Brand
Dixie Group High-End Residential Sales All Residential Brands Masland Dixie Home Fabrica TRUCOR Sales by Brand for Q3 2021 (TTM) 10
Slide 11: Dixie Group High-End Residential Sales by Channel
Dixie Group High-End Residential Sales All Brands Retailer Designer Mass Merchant Builder Specialty - OEM 11 Sales by Channel for Q3 2021 (TTM) The company believes that a significant portion of retail sales also involve a designer.
Slide 12: Residential Business
Residential Business • Doubled our market share of carpet in the past 10 years, aided by an upper end segment that outpaced the market • Successfully entered the hard surface market in the rigid core and engineered wood segments 12
Slide 13: 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 14: Masland
• Leading high-end brand with reputation for innovative styling, design and color • High-end retail / designer driven – Approximately 23% of sales directly involve a designer – Hand crafted and imported rugs • Growth initiatives – TRUCOR Prime™ WPC Luxury Vinyl Flooring & – TRUCOR™ Energy SPC floori
Slide 15: Fabrica
• Premium high-end brand – “Quality without Compromise” • Designer focused – Approximately 28% of sales directly involve a designer – Hand crafted and imported rugs • Growth initiatives – Fabrica Fine Wood Flooring, a sophisticated collection of refined wood flooring – EnVision 6,6™ nylon – Luxury w
Slide 16: Current Business Conditions
Current Business Conditions Outlook: • During the third quarter of 2021, our sales of residential carpet increased 23% compared to a year ago, versus the industry which was up high single digits. Year to date, our residential carpet sales are up 46% versus the industry, which is up in the mid 20% ra
Slide 17: FABRICA
FABRICA ArcsorR INSPIRED BY DESIGN. me KS THE BDIKTE GCGROUP