Dixie Group, Inc. · OTC:DXYN
Dixie — Investor Presentation (June 2010)
31 slides from Dixie's investor presentation, Jun 25, 2010
Slide 1: Investor Presentation June 2010
Exhibit 99.1 Investor Presentation RE AW XIE GROUP une 2010
Slide 2: Forward-Looking Statements
Gam Forward-Looking Statements OG 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 include the levels of
Slide 3: Dixie History
Dixie History BY THE DIXIE GROUP * Began operations in 1920 * Entered floorcovering in 1993 and exited textiles in 1999 - now 100% floorcovering * Eight floorcovering acquisitions in the ‘90’s * Exclusively focused on upper end markets * Traditionally we have outperformed the industry and expect to
Slide 4: Dixie Today
Dixie Today OG 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 - 11% of carpet sales —Top 20 carpet customers - 14% of carpet sales 4
Slide 5: The Industry
The Industry OG THE DIXIE GROUP Sales $10.19 Billion Sales $7.00 Billion Commercial ji Commercial 35% > 41% Source: CRI
Slide 6: The Industry: Fixed Investment as % of GDP
To 6002 To L002 GROUP To soo To s00 To 1002 To666t Dg DIXIE To L66t To s6st To s6st To T66t T HB ro sset To Leet Tosser Tosser rorset Tose To LLet Toszet Tosser Tost Tos96t ToL96t Fixed Investment as % of GDP Tosser Tosser To T96T Tosset Touset To ss6t TOES6T To TS6T To steT To LbsT 6.0% 5.0% 4.0% 3
Slide 7: The Industry: Value of U.S. Carpet & Rug Mill Shipments
The Industry Value of U.S. Carpet & Rug Mill Shipments 16,000,000 ($.000's) 14,000,000 12,000,000 12-18 month dips in shipments during recessionary times 10,000,000 8,000,000 6,000,000 4,000,000 Multi-year decline in this downturn, 2,000,000 1963 1968 1973 Source: U.S. Census Bureau & CRIEstimate 19
Slide 8: Change in Sales Dollars vs Prior Year Quarter
Change VS Sales Dollars % Prior Yr Quarter 20% Dixie up 13% QTD for the Industry -=-Dixie first 12 weeks eBLUBLID 898 ld
Slide 9: 2009 US Carpet Manufacturers
—————————eeeeeee 2009 US Carpet Manufacturers DF Shaw $3,025 31.4% Mohawk $2,479 25.8% Beaulieu $857 8.9% Interface $423 4.4% The Dixie Group $199 2.1% Others $2,642 27.4% Total Industry $9,625 100.0%
Slide 10: Dixie Group Carpet Sales
Dixie Group Carpet Sales High-End Commercial, 33% High-End Residential, 67% 10
Slide 11: Residential Positioning of The Dixie Group
Residential Positioning ANS of The Dixie Group THE DIXIE GROUP ESTIMATED TOTAL WHOLESALE MARKET FOR CARPETSAND RUGS VOLUME AND PRICE POINTS &s Positioning of Dixie Brands by Price Point Segment TIM, Try (Over $20 per SQ YD) Dany BROADLOOMRESIDENTIAL SALES 7.0 Billion (2009 $’s) 35% Market Share TOTA
Slide 12: Dixie High-End Residential Sales Share
Dixie High-End G Residential Sales SHR Dixie € owe oo Year20060 Year2009 ‘Dixle Home, | ‘N Dixie Home, ' y $2 Mastand, 42% oeN Masland, 47% rr. er Fabrica, 26% Fabrica, 20%
Slide 13: Dixie High-End Residential Sales
Dixie High-End Ry Residential Sales THE DIXIB GROTE
Slide 14: 14
14
Slide 15: GROUP
GROUP é THE DIXIE jaa} = -O od
Slide 16: Well-styled moderate to upper priced residential broadloom line
GS THE DIXIE GROUP Well-styled moderate to upper priced residential broadloom line Provides Dixie a “full line” to retailers Leverage needed by fiber suppliers for market access Selective distribution strategy attractive to retailers Growth initiatives — ¢ Stainmaster® “value” products * Durasilk (p
Slide 17: Carpets and Rugs sales channels
fous SS CARPETS RI GS THE DIXIE GROUP Retailers, 50% Designer/ To The Trade Showrooms, \ 31%
Slide 18: Leading high-end brand with reputation for innovative styling
GS THE DIXIE GROUP Leading high-end brand with reputation for innovative styling, design and color High-end retail / designer driven Hand crafted and imported rugs Growth initiative — « New Stainmaster® products for more volume orientated price points * Wool products introduced in ‘07.
Slide 19: Fabrica Fine Carpet & Rugs
FABRICA oS FINE CARPET & RUGS
Slide 20: Fabrica: Premium high-end brand
FABRICA FINE CARPET & RUGS GS THE DIXIE GROUP Premium high-end brand Designer focused Hand crafted and imported rugs Growth Initiative — « New products, heightened focus on retail penetration * Full service national supplier of wool to the designer trade with excellent service and support
Slide 21: Masland
Masland OG |= |= Hi | Hospitality, 30% Corporate, 30%
Slide 22: Masland: Premium brand in the commercial marketplace
eee Masland QS THE DIXIE GROUP Premium brand in the commercial marketplace Designer focused Strong national account base * Nordstrom's, Target, Sears, Olive Garden, Red Lobster, Victoria’s Secret, Applebee's Growth Initiative - * Modular/carpet tile ¢ Updated "Energy Collection®
Slide 23: Dixie Sales Continuing Operations
Dixie Sales Continuing Operations OG ($ in millions) THE DIXIE GROUP $331 $321 17 “46 $283 ul $203 4 272 2006 2007 2008 2009 = Carpet Sales
Slide 24: Dixie Operating Income
Dixie Operating Income xs ($ in millions) THE DIXIE GROUP Y 2006 Y 2007 Y 2008 Y 2009 Net Sales 331.1 320.8 282.7 203.5 Operating Income (Loss) (per GAAP) 16.6 16.7 (28.4) (45.3) Goodwill & Restructuring - - 29.9 37.0 Adjusted Operating Income (Loss) 16.6 16.7 1.5 (8.4) Depreciation & Amortization 1
Slide 25: Quarterly Sales & Operating Income
Quarterly Sales & Operating Income G ($ in millions) THE DIXIE GROUP aQi1o9 Q209 aQ309 aQ409 Qi10 Net Sales 47.6 52.6 50.5 52.8 50.5 Operating Loss (per GAAP) (39.2) (0.5) (1.7) (4.0) (2.3) Goodwill & Restructuring 33.0 0.1 0.6 33 0.2 Adjusted Operating Loss (6.1) (0.3) (1.1) (0.7) (2.1) Depreciatio
Slide 26: Dixie Cost Structure
_— Re Dixie Cost Structure XK Considering the following assumptions: * Our current mix, noting that we are sensitive to mix * Our current volume and cost structure * Our current pricing (the price increase fully felt in July) Our cost structure if you do the math implies that: * Our break even from
Slide 27: Dixie Cumulative Debt Reduction
Ry Dixie Cumulative Debt Reduction OG 100 ($in millions) THE DIXIE GROUP Q42008 Q12009 Q22009 Q32009 Q42009 Q12010
Slide 28: Dixie Capital Structure
Dixie Capital Structure XS ($in millions) THE DIXIE GROUP Dec: 27, Mar 27, 2008 2010 Debt $ 93.8 §$ 61.0 Equity 107.6 65.3 Total Capitalization $ 2014 $ 126.3 Debt toTotal Capitalization: Senior Debt 38.1% 36.7% Subordinated Debt 8.5% 11.6% Total Debt 46.6% 48.3%
Slide 29: Current Business Conditions
Current Business Conditions XS THE DIXIE GROUP The carpet industry is in recovery mode * Our sales up 13% Y/Y for the first 12 weeks of the quarter * Residential up 19% Y/Y, Commercial up 2% Y/Y * Our 2" quarter sales up approximately 17.5% over 1 quarter * Actions to consolidate facilities and make
Slide 30: Outlook
Outlook XS THE DIXIE GROUP Although the industry has experienced a difficult period, we are encouraged by: * Positive market reception to our new products: — Masland and Fabrica Wool Collections — Durasilk (polyester) — Masland Avenue — new technology with a woven look — Modular / Carpet Tile * Carp
Slide 31: a\A Jo bax
a\A Jo bax sland HOMER | CARPETS&-RUCS IfABRICA Arnel