Exhibit 99.1
CONTACT: Jon Faulkner
Chief Financial Officer
706-876-5814
jon.faulkner@dixiegroup.com
THE DIXIE GROUP REPORTS COMPLETION OF
PUBLIC OFFERING OF COMMON STOCK
CHATTANOOGA, Tenn. (May 20, 2014) -- The Dixie Group, Inc. (NASDAQ:DXYN) (the “Company”) today reported it has completed the previously announced public offering of 2,500,000 shares of its common stock. Net proceeds from the offering will be used for general corporate purposes, and to reduce the balance under the Company’s revolving credit facility, including borrowings associated with the recent acquisition of Atlas Carpet Mills. With closing of this transaction we now have secured the funds to pay off the Tranche B loan of $5.6 million, due June 30, 2014. Net of the Tranche B funding, availability under the Company’s revolving credit facility is in excess of forty million dollars.
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, Dixie Home, Masland Contract, Atlas Carpet Mills and Avant brands.
This press release contains forward-looking statements. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management and the Company at the time of such statements and are not guarantees of performance. Forward looking statements 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, integration of acquisitions 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. The company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.
