Despite a 41% drop in commercial carpet sales from a year ago, the Dixie Group Inc. returned to profitability in the third quarter through improved residential flooring sales and reduced debt.
The Dalton, Georgia-based carpet manufacturer said Thursday it earned $906,000, or 6 cents per share, from continuing operations in the three months ended Sept. 30. In the same period a year ago, Dixie lost nearly $2.6 million, or 16 cents per share.
Profits improved even though overall company sales fell 10% from $95.4 million in the third quarter of 2019 to $85.9 million in the third quarter of this year as the coronavirus continued to limit commercial flooring activity this year.
Subsequent to the end of the third quarter, Dixie entered into a new $75 million, five-year, Senior Revolving Credit Facility, and also closed on two additional long term, fixed rate, asset-backed loans in the total amount of $25 million. The company said it has reduced its debt by $50 million in the past 12 months.
Directors of Dixie Group also approved the repurchase of up to $2.9 million of the Company’s common stock, which helped to boost pre-market share prices for Dixie on the Nasdaq Exchange.