The Dixie Group Reports Year-End 2008 Results

Business Wire, Feb 25, 2009

During the fourth quarter of 2008, the Company purchased 42,461 shares of its Common Stock at an average per share price of $2.79 pursuant to the program authorized by the Board of Directors to repurchase up to $10.0 million of the Company's Common Stock. The Company is not currently purchasing shares of its Common Stock.

The Company's loss from discontinued operations was $107,000, or $0.01 per diluted share, for the fourth quarter of 2008, compared with a loss from discontinued operations of $337,000, or $0.03 per diluted share, for the fourth quarter of 2007. Including discontinued operations, the Company reported a net loss of $31,868,000, or $2.60 per diluted share, for the fourth quarter of 2008 compared with net income of $1,409,000, or $0.11 per diluted share, for the fourth quarter of 2007. For 2008, the Company's loss from discontinued operations was $275,000, or $0.02 per diluted share, compared with a loss of $512,000, or $0.04 per diluted share, in the prior year. Including discontinued operations, the Company reported a net loss of $31,403,000, or $2.52 per diluted share, for year ended December 27, 2008, compared with net income of $6,266,000, or $0.48 per diluted share, for the year-earlier period.

A listen-only Internet simulcast and replay of Dixie's conference call may be accessed with appropriate software at the Company's web site or at www.earnings.com. The simulcast will begin at approximately 11:00 a.m. Eastern Time on February 25, 2009. A replay will be available approximately two hours later and will continue for approximately 30 days. If Internet access is unavailable, a listen-only telephonic conference will be available by dialing (913) 312-1516 at least ten minutes before the appointed time. A seven-day telephonic replay will be available two hours after the call ends by dialing (719) 457-0820 and entering 8036441 when prompted for the access code.

The Dixie Group (www.thedixiegroup.com) is a leading marketer and manufacturer of carpet and rugs to higher-end residential and commercial customers through the Fabrica International, Masland Carpets and Dixie Home brands.

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The Company believes a review of both GAAP and the above non-GAAP measures is useful for itself and investors in order to evaluate the Company's performance and for future planning and forecasting.

Statements in this news release, 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 risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission.