Business Description
Our business consists principally of marketing, manufacturing and selling carpet
and rugs to high-end residential and commercial customers through our various
sales forces and brands. A small portion of our manufacturing capacity is used
to provide carpet and yarn related services to other manufacturers.
From 1920 until 1993 we were exclusively in the textile business. We sold our
textile assets and began acquiring floorcovering businesses in 1993. We focus
exclusively on the upper-end of the soft floorcovering market where we believe
we have strong brands and competitive advantages with our style and design capabilities
and customer relationships.
Our business is concentrated in areas of the soft floorcovering markets where
innovative styling, design, color, quality and service, as well as limited distribution,
are welcomed and rewarded. Our Fabrica, Masland, and Dixie Home brands have
a significant presence in the high-end residential soft floorcovering markets.
Our Atlas Carpet Mills, Masland Contract and Masland Hospitality brands, participate
in the upper end specified commercial marketplace. Dixie International sells
all of our brands outside of the North American market. Our brands are well
known, highly regarded and complementary; by being differentiated, we offer
meaningful alternatives to the discriminating customer.
We have one line of business, carpet and rug manufacturing.
The carpet and rug industry has two primary markets, residential and commercial,
with the residential market making up the largest portion of the industrys
sales. A substantial portion of industry shipments is made in response to replacement
demand. Residential products consist of broadloom carpets and rugs in a broad
range of styles, colors and textures. Commercial products consist primarily
of broadloom carpet and modular carpet tile for a variety of institutional applications
such as office buildings, restaurant chains, schools and other commercial establishments.
The carpet industry also manufactures carpet for the automotive, recreational
vehicle, small boat and other industries.
The Carpet and Rug Institute (the "CRI") is the national trade association
representing carpet and rug manufacturers. Information compiled by the CRI suggests
that the domestic carpet and rug industry is comprised of fewer than 100 manufacturers,
with a significant majority of the industrys production concentrated in a limited
number of manufacturers focused on the lower end of the price curve. We believe
that this industry focus provides us with opportunities to capitalize on our
competitive strengths in selected markets where innovative styling, design,
product differentiation, focused service and limited distribution add value.
Our sales historically have normally reached their lowest level in the first
quarter (approximately 23% of our annual sales), with the remaining sales being
distributed relatively equally among the second, third and fourth quarters.
Working capital requirements have normally reached their highest levels in the
third and fourth quarters of the year.
2.88% 
98.89 %