MIRA INFORM REPORT

 

 

Report Date :           

02.06.2011

 

IDENTIFICATION DETAILS

 

Name :

THE DIXIE GROUP, INC.

 

 

 

 

Registered Office :

C/O Klein, Starr T, 104 Nowlin Ln, Chattanooga, Tn 374210000

 

 

 

 

Country :

United States  

 

 

 

 

Financials (as on) :

25.12.2010

 

 

 

 

Date of Incorporation :

25.07.1932

 

 

 

 

Legal Form :

Corporation for Profit

 

 

 

 

Line of Business :

Manufacture and sale of carpet and rugs

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 50,000

Status :

Small Company 

Payment Behaviour :

Usually Correct 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

United States 

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

GEOPOLITICS - UNITED STATES

 

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal


Economic Risk: Nil

Currency: USD

Branch Situation: Stable

 

 

IDENTIFICATION

 

Ordered as:

Dixie Group Inc

Address in the order:

2208 S Hamilton St. 30721, Dalton

 

 

Legal Name:

THE DIXIE GROUP, INC.

 

 

Legal Address

C/O KLEIN, STARR T

104 NOWLIN LN

CHATTANOOGA, TN 374210000 USA (registered agent\'s address)

Operative Address

2208 S. HAMILTON ST.

DALTON, GA 307210000 USA

Telephone:

423-510-7000

Registration Number :

000009237

Fax:

423-510-7015

Legal Form:

Corporation for Profit

Email:

N.A.

Registered in:

Tennessee

Website:

www.thedixiegroup.com

Date Created:

1920

Manager:

Daniel K. Frierson - Chief Executive Officer

Date Incorporated:

July 25, 1932

Staff:

1,150

Stock:

12,910,000 shares

 

 

Value:

USd 3 par value

Activity:

Manufacture and sale of carpet and rugs.

 

 

BANKS

 

Name of the Bank

BANK OF AMERICA

 

BUSINESS

 

HISTORY

 

The company started operating in 1920.

It was later incorporated in 1932.

PRINCIPAL ACTIVITY

 

engages in the manufacture, marketing, and sale of carpets and rugs to residential and commercial customers in the United States and internationally.

 

It also offers broadloom and modular carpet for the specified commercial marketplace.

 

It also processes yarns and provides carpet dyeing and finishing services to other carpet manufacturers.

Sales are:

 

Wholesale

Brands:

 

The company sells its products under the Fabrica International, Masland Carpets, and the Dixie Home brands.

Clients:

 

The company's customers include interior decorators and designers, retailers, furniture stores, luxury home builders, and manufacturers of luxury motor coaches and yachts.

Operations area:

 

National, International

Competitors:

 

- Interface, Inc.

- Mohawk Industries, Inc.

- Shaw Industries, Inc.

The subject employs 1,150 employee(s)

LOCATION

Headquarters

 

2208 S. HAMILTON ST.

DALTON, GA 307210000 USA

Comments on location:

 

The company is incorporated in Tennessee for historical purposes. This is where the business started.

However, the principal office is in Georgia.

Branches:

 

It has several branches in the USA, including:

 

104 Nowlin Lane

Suite 101

Chattanooga, TN 37421

United States

 

 

Shareholders - Manager - Related Companies

 

Listed at the stock exchange:

 

YES

Capital:

 

% of Shares Held by All Insider and 5% Owners: 14%

% of Shares Held by Institutional & Mutual Fund Owners: 54%

% of Float Held by Institutional & Mutual Fund Owners: 62%

Number of Institutions Holding Shares: 28

Shareholders Parent Company(ies):

 

The company is publicly traded at the NASDAQ.

 

Major Direct Holders:

 

FRIERSON DANIEL K

POLLEY DAVID E

FRIERSON DANIEL K JR.

HARMON GARY A

DEMPSEY KENNETH L

 

Top Institutional Holders:

 

RGM Capital, LLC

PRICE (T.ROWE) ASSOCIATES INC

ROYCE & ASSOCIATES, LLC

DIMENSIONAL FUND ADVISORS LP

WELLS FARGO & COMPANY

FRANKLIN RESOURCES, INC

VANGUARD GROUP, INC. (THE)

BlackRock Institutional Trust Company, N.A.

KORNITZER CAPITAL MANAGEMENT, INC.

CALPERS (CALIFORNIA-PUBLIC EMPLOYEES RETIREMENT SYSTEM)

 

Top Mutual Fund Holders:

 

PRICE (T.ROWE) SMALL-CAP VALUE FUND

ROYCE OPPORTUNITY FUND

FRANKLIN VALUE INVESTORS TRUST-FRANKLIN MICROCAP VALUE F

DFA U.S. SMALL CAP VALUE SERIES

VANGUARD EXTENDED MARKET INDEX FUND

DFA U.S. SMALL CAP SERIES

DFA Tax Managed U.S. Targeted Value Port

DFA U.S. MICRO CAP SERIES

VANGUARD TOTAL STOCK MARKET INDEX FUND

Valic Company I-Small Cap Special Values Fd

Management:

 

Daniel K. Frierson - Chairman of the Board

J. Don Brock, Ph.D. - Chairman of the Board and Chief Executive Officer, Astec Industries, Inc.

Paul K.  Frierson - Retired Vice President and President, Candlewick Yarns

Walter  W. Hubbard - Retired President and Chief Operating Officer, Honeywell Nylon, Inc.

Lowry F.  Kline - Retired Chairman and Chief Executive Officer, Coca-Cola Enterprises, Inc.

John W. Murrey III - Retired Senior Counsel, Witt, Gaither & Whitaker, P.C.

Related Companies:

 

Subsidiaries:

 

Fabrica International, Inc. - CA

C-Knit Apparel, Inc. - TN

Masland Carpets, LLC - GA

Candlewick Yarns, LLC - AL

 




Financials - COMMERCIAL TRENDS AND FORECAST

 

The subject is a public company traded at the stock exchange. Please find enclosed the financial statements.

Legal Fillings

 There are several UCC** files listed with the Secretary of State of Georgia.

 

There are no legal filings listed with the District Court.

 

The last annual report was filed on 03/11/2011.

 

 

THE COMPANY IS NOT LISTED ON THE OFAC LIST.*

 

 

For information:

 

* The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

 

 

** The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America. 

 

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

 

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

 

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

 


 

Rating

 

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

 

 

 Final Opinion

 

The subject has 91 years experience in the business.

 

It is a large size, public company traded at the NASDAQ.

 

The company has been losing money over the last 3 years, even though the last 2 quarters were profitable.

The indebtedness is controlled.

 

A credit line may be considered for USD 50,000, and we suggests monitoring its evolution.



SUMMARY

 


FINANCIAL SUMMARY


DEBT COLLECTIONS AND PAYMENTS

Profitability

NEGATIVE

Public Records

NO

Indebtedness

CONTROLLED

Payments

REGULAR

Cash

CORRECT

 

 

 

 

APPENDIX

 

Comments

 

The person contacted informed us that per company policy they do not disclose any information.

 

Financial

 

ANNUAL INCOME STATEMENT

 

 

 

All numbers in thousands

 

Period Ending

Dec 25, 2010

Dec 26, 2009

Dec 27, 2008

Total Revenue

231,322  

203,480  

282,710  

Cost of Revenue

174,671  

151,374  

204,558  

 

Gross Profit

56,651  

52,106  

78,152  

 

 

Operating Expenses

 

Research Development

-  

-  

-  

 

Selling General and Administrative

57,665  

60,539  

78,949  

 

Non Recurring

1,556  

36,956  

27,599  

 

Others

-  

-  

-  

 

 

 

Total Operating Expenses

-  

-  

-  

 

 

 

 

 

Operating Income or Loss

(2,570)

(45,389)

(28,396)

 

 

 

 

Income from Continuing Operations

 

 

Total Other Income/Expenses Net

(283)

181  

326  

 

 

Earnings Before Interest And Taxes

(2,853)

(45,208)

(28,070)

 

 

Interest Expense

4,124  

5,521  

5,965  

 

 

Income Before Tax

(6,977)

(50,729)

(34,035)

 

 

Income Tax Expense

(2,604)

(8,870)

(2,907)

 

 

Minority Interest

-  

-  

-  

 

 

 

 

Net Income From Continuing Ops

(4,373)

(41,859)

(31,128)

 

 

 

 

Non-recurring Events

 

 

Discontinued Operations

(281)

(382)

(275)

 

 

Extraordinary Items

-  

-  

-  

 

 

Effect Of Accounting Changes

-  

-  

-  

 

 

Other Items

-  

-  

-  

 

 

 

 

 

Net Income

(4,654)

(42,241)

(31,403)

 

Preferred Stock And Other Adjustments

-  

-  

-  

 

 

 

Net Income Applicable To Common Shares

(4,654)

(42,241)

(31,403)

 

Currency in USD.

 

QUARTERLY INCOME STATEMENT

 

 

 

All numbers in thousands

 

Period Ending

Apr 2, 2011

Dec 25, 2010

Sep 26, 2010

Jun 26, 2010

Total Revenue

65,954  

65,134  

56,676  

59,058  

Cost of Revenue

49,384  

48,651  

44,098  

43,821  

 

Gross Profit

16,570  

16,483  

12,578  

15,237  

 

 

Operating Expenses

 

Research Development

-  

-  

-  

-  

 

Selling General and Administrative

14,902  

13,969  

14,212  

14,845  

 

Non Recurring

-  

919  

304  

333  

 

Others

-  

-  

-  

-  

 

 

 

Total Operating Expenses

-  

-  

-  

-  

 

 

 

 

 

Operating Income or Loss

1,668  

1,595  

(1,938)

59  

 

 

 

 

Income from Continuing Operations

 

 

Total Other Income/Expenses Net

17  

4  

8  

(297)

 

 

Earnings Before Interest And Taxes

1,685  

1,599  

(1,930)

(238)

 

 

Interest Expense

932  

903  

904  

1,082  

 

 

Income Before Tax

753  

696  

(2,834)

(1,320)

 

 

Income Tax Expense

109  

57  

(965)

(636)

 

 

Minority Interest

-  

-  

-  

-  

 

 

 

 

Net Income From Continuing Ops

644  

639  

(1,869)

(684)

 

 

 

 

Non-recurring Events

 

 

Discontinued Operations

(21)

(123)

(28)

(60)

 

 

Extraordinary Items

-  

-  

-  

-  

 

 

Effect Of Accounting Changes

-  

-  

-  

-  

 

 

Other Items

-  

-  

-  

-  

 

 

 

 

 

Net Income

623  

516  

(1,897)

(744)

 

Preferred Stock And Other Adjustments

-  

-  

-  

-  

 

 

 

Net Income Applicable To Common Shares

623  

516  

(1,897)

(744)

 

Currency in USD.

 

 

BALANCE SHEET

 

 

 

All numbers in thousands

 

Period Ending

Apr 2, 2011

Dec 25, 2010

Sep 26, 2010

Jun 26, 2010

 

Assets

Current Assets

 

Cash And Cash Equivalents

281  

244  

136  

89  

 

Short Term Investments

-  

-  

-  

-  

 

Net Receivables

35,368  

28,550  

25,884  

23,974  

 

Inventory

66,750  

58,289  

59,395  

59,166  

 

Other Current Assets

2,809  

6,943  

5,620  

5,344  

 

Total Current Assets

105,208  

94,026  

91,035  

88,573  

Long Term Investments

-  

-  

-  

-  

Property Plant and Equipment

68,878  

70,246  

72,440  

74,171  

Goodwill

-  

-  

-  

-  

Intangible Assets

-  

-  

-  

-  

Accumulated Amortization

-  

-  

-  

-  

Other Assets

14,101  

13,830  

13,042  

12,196  

Deferred Long Term Asset Charges

-  

-  

-  

-  

 

Total Assets

188,187  

178,102  

176,517  

174,940  

 

Liabilities

Current Liabilities

 

Accounts Payable

37,061  

30,385  

29,076  

31,159  

 

Short/Current Long Term Debt

6,541  

7,145  

6,985  

7,402  

 

Other Current Liabilities

-  

-  

-  

-  

 

Total Current Liabilities

43,602  

37,530  

36,061  

38,561  

Long Term Debt

61,718  

58,070  

60,558  

54,625  

Other Liabilities

14,601  

15,313  

13,143  

12,167  

Deferred Long Term Liability Charges

4,578  

4,759  

3,880  

4,734  

Minority Interest

-  

-  

-  

-  

Negative Goodwill

-  

-  

-  

-  

 

Total Liabilities

124,499  

115,672  

113,642  

110,087  

 

Stockholders' Equity

Misc Stocks Options Warrants

-  

-  

-  

-  

Redeemable Preferred Stock

-  

-  

-  

-  

Preferred Stock

-  

-  

-  

-  

Common Stock

50,645  

50,371  

50,371  

50,371  

Retained Earnings

(66,127)

(66,750)

(66,108)

(64,211)

Treasury Stock

(58,522)

(58,395)

(58,383)

(58,383)

Capital Surplus

137,628  

137,235  

137,043  

136,843  

Other Stockholder Equity

64  

(31)

(48)

233  

 

Total Stockholder Equity

63,688  

62,430  

62,875  

64,853  

 

Net Tangible Assets

63,688  

62,430  

62,875  

64,853  

Currency in USD.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.89

UK Pound

1

Rs.73.85

Euro

1

Rs.64.76

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.