The Dixie Group, Inc. reported a net loss of $336,000, or $0.03 per diluted share, for the
first quarter ended March 29, 2003, compared with net income of $496,000, or
$0.04 per diluted share, for the first quarter of 2002. The net loss for the
2003 period resulted from lower-than-expected sales volume and higher costs, according to the company.
Sales for the first quarter of 2003 were $112.0 million compared with sales of $123.3 million for the first quarter of 2002. During the quarter ended March 29, 2003, the company re-financed its senior indebtedness and paid the $50 million obligation that was due in April 2003
to the former shareholders of Fabrica. Also, in early April, Standard & Poor's raised the company's credit rating to "B+" from "B-."