# EDGAR Filing Document

**Accession Number:** 0000029332
**File Stem:** 0000029332-23-000012
**Filing Date:** 2023-3
**Character Count:** 12596
**Document Hash:** 4c29523e226a20a0c565f0f99fcb6974
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000029332-23-000012.hdr.sgml**: 20230302

**ACCESSION NUMBER**: 0000029332-23-000012

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 33

**CONFORMED PERIOD OF REPORT**: 20230302

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230302

**DATE AS OF CHANGE**: 20230302

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DIXIE GROUP INC
- **CENTRAL INDEX KEY:** 0000029332
- **STANDARD INDUSTRIAL CLASSIFICATION:** CARPETS AND RUGS [2273]
- **IRS NUMBER:** 620183370
- **STATE OF INCORPORATION:** TN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-02585
- **FILM NUMBER:** 23696331

**BUSINESS ADDRESS:**
- **STREET 1:** PO BOX 2007
- **CITY:** DALTON
- **STATE:** GA
- **ZIP:** 30722
- **BUSINESS PHONE:** 7068765814

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 2007
- **CITY:** DALTON
- **STATE:** GA
- **ZIP:** 30722

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DIXIE YARNS INC
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DIXIE MERCERIZING CO
- **DATE OF NAME CHANGE:** 19670524

?xml version="1.0" ? dxyn-20230302

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT** 

**Pursuant To Section 13 OR 15(d) Of The Securities Exchange Act Of 1934**

Date of Report (Date of earliest event reported): March 2, 2023

![dxyn-20230302_g1.jpg](dxyn-20230302_g1.jpg)

**THE DIXIE GROUP, INC.**

(Exact name of Registrant as specified in its charter)

Tennessee 0-2585 62-0183370 <br> (State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

475 Reed Road <u>Dalton</u> <u>Georgia</u> 30720 <br> (Address of principal executive offices) (zip code)

706 <u>876-5800</u> <br> (Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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**Item 7.01**&nbsp;&nbsp;&nbsp;&nbsp;**Regulation FD Disclosure.**

The information attached as Exhibit 99.1 hereto supersedes the investor presentation previously furnished on Form 8-K dated November 3, 2022 and is being furnished pursuant to Item 7.01; such information, including the information excerpted below in this Item 7.01, shall not be deemed to be "filed" for any purpose.

These updated investor presentation materials may be found on the Company's website at <u>https://investor.dixiegroup.com</u>.

**Item 9.01**&nbsp;&nbsp;&nbsp;&nbsp;**Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(99.1)&nbsp;&nbsp;&nbsp;&nbsp;<u>[Presentation Materials, March 2, 2023](amarch2023investorpresen.htm)</u>

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
| Date: March 2, 2023 | **THE DIXIE GROUP, INC.** |
| | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Allen L. Danzey |
| | Allen L. Danzey |
| | Chief Financial Officer |

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## Exhibit 99.1

![](amarch2023investorpresen001.jpg)

March 2023 Investor Presentation Contact: Allen Danzey CFO The Dixie Group Phone: 706-876-5865 allen.danzey@dixiegroup.com Exhibit 99.1

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![](amarch2023investorpresen002.jpg)

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 of demand for the products produced by the Company. Other factors that could affect the Company's results include, but are not limited to, raw material and transportation costs related to petroleum prices, the cost and availability of capital, and general economic and competitive conditions related to the Company's business. Issues related to the availability and price of energy may adversely affect the Company's operations. Additional information regarding these and other factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission. • General information set forth in this presentation concerning market conditions, sales data and trends in the U.S. carpet and rug markets are derived from various public and, in some cases, non-public sources. Although we believe such data and information to be accurate, we have not attempted to independently verify such information. 2

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![](amarch2023investorpresen003.jpg)

Dixie History • 1920 • 1990's • 2003 • 2003 • 2005 • 2012 • 2013 • 2014 • 2014 • 2016 • 2017 • 2018 • 2018 • 2019 • 2021 • 2022 • 2022 Began as Dixie Mercerizing in Chattanooga, TN Transitioned from textiles to floorcovering Refined focus on upper- end floorcovering market Launched Dixie Home - upper end residential line Launched modular tile carpet line – new product category Purchased Colormaster dye house and Crown Rugs Purchased Robertex - wool carpet manufacturing Purchased Atlas Carpet Mills – high-end commercial business Purchased Burtco - computerized yarn placement for hospitality Launched Calibré luxury vinyl flooring in Masland Contract Launched Stainmaster® LVF in Masland and Dixie Home Launched engineered wood in our Fabrica brand Unified Atlas and Masland Contract into single business unit Launched TRUCOR™ and TRUCOR Prime™ LVF in Dixie Home and Masland Sale of AtlasMasland Commercial Business Launched 1866 by Masland and Décor by Fabrica Formed Joint Venture to begin domestic production of LVF products 3

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![](amarch2023investorpresen004.jpg)

Dixie Today • Commitment to brands in the upper-end residential market with strong growth potential. • Diversified customer base – Top 10 customers • 9% of sales – Top 100 customers • 27% of sales 4

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![](amarch2023investorpresen005.jpg)

Net Sales of Residential Products ($ shown in millions) 5 0 50 100 150 200 250 300 350 400 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Residential Products

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![](amarch2023investorpresen006.jpg)

Dixie Group Business Drivers 6 • The residential flooring market is driven by remodeling, 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, dependent upon consumer confidence, the health of the stock market and the wealth effect.

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![](amarch2023investorpresen007.jpg)

New and Existing Home Sales Seasonally Adjusted Annual Rate 7 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 Jan '15 Jan '16 Jan '17 Jan '18 Jan '19 Jan '20 Jan '21

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![](amarch2023investorpresen008.jpg)

Remodeling Activity 8

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![](amarch2023investorpresen009.jpg)

2021 U.S. Flooring Manufacturers Source: Floor Focus - Flooring includes sales of carpet, rugs, ceramic floor tile, wood, laminate, resilient and rubber 9 Flooring Manufacturers Flooring $ in millions Flooring Market % Shaw (Berkshire Hathaway) 6,144 25.1% Mohawk (MHK) 5,259 24.9% Engineered Floors (Private) 1,226 4.6% Interface (TILE) 597 2.5% Dixie (DXYN) 341 1.4% Imports & All Others 10,704 41.4% Total 24,271 100.0%

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![](amarch2023investorpresen010.jpg)

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 an emphasis on beautiful and trend setting styles, colors, and designs – Be quality focused with a reputation for building excellent products and standing behind what we make – And, unlike most of the industry, not manufacturing driven 10

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![](amarch2023investorpresen011.jpg)

Dixie Group High-End Residential Sales All Brands Sales by Brand for Q4 2022 Trailing Twelve Months 11 Trucor Masland Dixie Home Mass Merchant Fabrica

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![](amarch2023investorpresen012.jpg)

Dixie Group High-End Residential Sales All Brands Sales by Channel for Q4 2022 Trailing Twelve Months The company believes that a significant portion of retail sales also involve a designer. 12 Retailer Designer Other Builder

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![](amarch2023investorpresen013.jpg)

Market Share 13 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% The Dixie Group - Residential Market Share Sales by The Dixie Group as a percent of the estimated total market – Residential Tufted Broadloom only

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![](amarch2023investorpresen014.jpg)

• 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 the specialty retail channel. • Growth initiatives – TRUCOR® SPC flooring – Dixie Home engineered wood – EnVision Nylon™ – EnVisionSD Pet Solutions™ 14

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![](amarch2023investorpresen015.jpg)

• Inspired by Design: leading high-end brand with reputation for innovative styling, design and color • High-end retail / designer driven, approximately 19% of sales directly involve a designer • The most versatile offering in the industy • Growth initiatives – TRUCOR® Prime WPC flooring – TRUCOR® Energy SPC flooring – TRUCOR® Tymbr high performance laminate flooring – 1866 by Masland high end wool and decorative carpet and rugs – EnVision Nylon™ – EnVisionSD Pet Solutions™ 15

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![](amarch2023investorpresen016.jpg)

• Quality without Compromise: beautiful, high end residential products, manufactured with the finest raw materials and an unwavering commitment to quality and attention to detail. • Designer focused, approximately 26% of sales directly involve a designer • Custom construction, pattern, and color capabilities. • Growth initiatives – Fabrica Fine Wood Floors, a sophisticated collection of refined wood flooring – EnVision Nylon™ – Décor by Fabrica – high end wool and decorative carpet and rugs 16

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![](amarch2023investorpresen017.jpg)

Current Business Conditions Cost Reduction Plan – expected to reduce expenses year over year by an estimated amount in excess of $40 million. Planned reductions include: • Reduced employee headcount by 320 from the beginning of 2022. • Converted our existing nylon broadloom styles to new raw materials fibers from multiple suppliers at lower cost. • Freight costs for containers of imported goods were significantly inflated in 2022. Current costs are at lower, more normal cost levels. • Samples expense are expected to be reduced from the high level in 2022 which was primarily related to the introduction of products in our new Decorative Business. Growth Initiatives • Development of our polyester segment in DH Floors under our Durasilk™ brand. • Development of best in class products under our EnVision Nylon™ and EnVisionSD Pet Solutions™ platforms. • Continued innovation and introduction of new hard surface products into our growing TRUCOR® and Fabrica Fine Wood programs; we are also entering new categories such as high performance laminate to diversify our hard surface offering • Execution of our new decorative segment offering, 1866 by Masland, 1866 All Seasons Collection, and Décor by Fabrica. • For the year, our highest end brands gained share of the soft surface residential replacement market, and our hard surface segment grew and gained share of the hard surface market. 17

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