acquisition and integration expenses associated

The Dixie Group, Inc. reported financial results for the fiscal year ended December 29, 2012. Net sales for fiscal 2012 were $266,372,000, up slightly versus the prior year on a non-GAAP adjusted comparable 52 week basis, as detailed on the enclosed schedule.Sales decreased  from  in the prior year on a fiscal basis. In 2012, we had a loss from continuing operations of $653,000, or $0.05 per diluted share, compared with income from continuing operations of $1,272,000, or $0.10 per diluted share, for the year ended December 31, 2011. The prior Polyester Film Fiber Yarn Manufacturers year included a gain of $563,000 from the favorable termination of a lease while 2012 included manufacturing realignment and Colormaster dye facility integration expenses of.

In the fourth quarter of 2012, the Company had sales of $71,134,000 and a loss from continuing operations of , or $0.03 per diluted share, compared with sales of $65,349,000 and a loss from continuing operations of $203,000, or $0.02 per diluted share for the fourth quarter of 2011.Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, quot;The year of 2012 was a year of changes. Though 2012 was not satisfactory from a profitability standpoint, we put in place structural changes to our business to take advantage of the positive market dynamics we foresee in the future. We see a positive impact in 2013 from the rise in existing home sales we have seen in 2012 and positive momentum in the commercial business. 

For the year our residential products sales, again adjusted to a comparable  week basis, grew  while industry China Cashmere Yarn Suppliers results were slightly positive. Our commercial business was down for the year while the industry grew in the low mid-single digits.quot;Our fourth quarter sales were up 8.9 or approximately three times industry growth for the period. Of particular note, we had growth in both our residential and commercial product categories that exceeded industry growth. We had particularly strong sales in our wool and rug product segments. Our fourth quarter profitability was negatively impacted due to higher investments in new products, and acquisition and integration expenses associated with our Colormaster dyeing facility; however, we believe that these investments will continue our above-industry average sales growth into 2013.quot.

Over the year just completed, we have had several initiatives to expand our capabilities while improving our response to the market. We expanded our yarn facility in 2012 and are continuing that expansion into 2013. Combined, we are increasing capacity 43 over the two year period. We re-established our Eton tufting operation, accomplishing the dual objectives of simplifying our Atmore tufting facility while lowering cost and improving quality for both facilities.quot;We purchased the Colormaster continuous dyeing facility; thereby providing an opportunity to lower our dyeing costs as we transition our products into the plant during 2013. We acquired the rug assets of a supplier to increase the supply for our popular Infinity and Rug 4.0 wool rug programs. Finally, we installed new raw material processing equipment to lower cost and improve delivery in our modular carpet tile business.quot;