dxyn-20250628

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


			Form 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2025

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to __________

Commission File Number: 0-2585

THE DIXIE GROUP, INC.

(Exact name of Registrant as specified in its charter)

Tennessee

62-0183370

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

475 Reed Road, Dalton, Georgia

30720

(706) 876-5800

(Address of principal executive offices)

(zip code)

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $3 Par Value

DXYN

OTCQB

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. R Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). R Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated Filer

Smaller reporting company

☑

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) ☐ Yes R No

The number of shares outstanding of each of the issuer's classes of Common Stock as of the latest practicable date.


Class						Outstanding as of August 1, 2025
Common Stock, $3 Par Value						13,976,735 shares
Class B Common Stock, $3 Par Value						1,240,285 shares
Class C Common Stock, $3 Par Value						0 shares

Table of Contents 1

THE DIXIE GROUP, INC.

Table of Contents

PART I. FINANCIAL INFORMATION

Page

Item 1.

Financial Statements

Consolidated Condensed Balance Sheets - June 2 8 , 2025 (Unaudited) and December 28, 2024

Consolidated Condensed Statements of Operations (Unaudited) - Three and Six Months Ended June 2 8 , 2025 and June 29 , 2024

Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) - Three and Six Months Ended June 2 8 , 2025 and June 29 , 2024

Consolidated Condensed Statements of Cash Flows (Unaudited) - Six Months Ended June 2 8 , 2025 and June 29 , 2024

Consolidated Condensed Statements of Stockholders' Equity (Unaudited) - Three and Six Months ended June 2 8 , 2025 and June 29 , 2024

Notes to Consolidated Condensed Financial Statements (Unaudited)

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Item 4.

Controls and Procedures

PART II. OTHER INFORMATION

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Mine Safety Disclosures

Item 5.

Other information

Item 6.

Exhibits

Signatures

Table of Contents 2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

THE DIXIE GROUP, INC.

CONSOLIDATED CONDENSED BALANCE SHEETS

(amounts in thousands, except share data)


	June 28, 2025		December 28, 2024
ASSETS	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	4,386	$	19
Receivables, net of allowances for expected credit losses of $539 and $454	28,891		23,325
Inventories, net	67,381		66,852
Prepaid and other current assets	5,965		5,643

TOTAL CURRENT ASSETS	106,623		95,839

PROPERTY, PLANT AND EQUIPMENT, NET	31,315		33,747
OPERATING LEASE RIGHT-OF-USE ASSETS	26,127		25,368

RESTRICTED CASH	4,309		—
OTHER ASSETS	18,870		19,854
LONG-TERM ASSETS OF DISCONTINUED OPERATIONS	1,139		1,064
TOTAL ASSETS	$	188,383	$	175,872

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	26,319	$	14,884
Accrued expenses	15,100		15,057
Current portion of long-term debt	57,311		53,818
Current portion of operating lease liabilities	4,437		3,804
Current liabilities of discontinued operations	1,115		1,156
TOTAL CURRENT LIABILITIES	104,282		88,719

LONG-TERM DEBT, NET	26,123		28,530
OPERATING LEASE LIABILITIES	22,591		22,295
OTHER LONG-TERM LIABILITIES	16,100		16,712
LONG-TERM LIABILITIES OF DISCONTINUED OPERATIONS	3,480		3,398
TOTAL LIABILITIES	172,576		159,654

COMMITMENTS AND CONTINGENCIES (See Note 17)

STOCKHOLDERS' EQUITY
Common Stock ($3 par value per share): Authorized 80,000,000 shares, issued and outstanding - 13,976,735 shares for 2025 and 13,997,446 shares for 2024	41,930		41,992
Class B Common Stock ($3 par value per share): Authorized 16,000,000 shares, issued and outstanding - 1,240,285 shares for 2025 and 1,249,302 shares for 2024	3,721		3,748
Additional paid-in capital	160,117		159,892
Accumulated deficit	(190,237)		(189,700)
Accumulated other comprehensive income	276		286
TOTAL STOCKHOLDERS' EQUITY	15,807		16,218
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	188,383	$	175,872

See accompanying notes to the consolidated condensed financial statements.

Table of Contents 3

THE DIXIE GROUP, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

(amounts in thousands, except per share data)


	Three Months Ended				Six Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
NET SALES	$	68,573	$	70,507	$	131,563	$	135,761
Cost of sales	48,557		50,694		94,645		100,139
GROSS PROFIT	20,016		19,813		36,918		35,622

Selling and administrative expenses	16,778		17,376		33,652		33,748

SEC Form 10-Q filed by Dixie Group Inc.