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Dixie Group Inc. is a leading carpet and rug manufacturer and supplier to higher-end residential and commercial customers serviced by Masland Carpets and Fabrica International to consumers through major retailers under the Bretlin Globaltex and Alliance Mills brands and to the factory-built housing and recreational vehicle markets through Carriage Carpets. Dixie's Candlewick Yarns serves specialty carpet yarn customers.(PR) Dixie Group Inc. has a market cap of $37.2 million; its shares were traded at around $2.95 with and P/S ratio of 0.1. Highlight of Business Operations: Expenses for the consolidation and organizational changes associated were $178 thousand and $1.9 million, respectively in the third quarter and first nine months of 2009, bringing the total costs for the cost reduction plan to $4.2 million since the third quarter of 2008. The first nine months of 2009 included $1.3 million of costs to consolidate facilities and $618 thousand of severance expenses. The expenses to complete the cost reduction plan, excluding any expenses that may be incurred to exit a leased facility, are expected to be approximately $137 thousand.
Operating Income (Loss). Our operating loss was $1.7 million, or 3.3% of net sales, in the third quarter of 2009 compared with operating income of $33 thousand, or 0.0% of net sales, in the third quarter of the prior year. For the first nine months of 2009, our operating loss was $41.3 million, compared with operating income of $5.0 million, in the first nine months of 2008. The third quarter 2009 operating loss included $563 thousand of expenses for facility consolidations and severance. For the first nine months of 2009, the operating loss included $31.4 million of non-cash expenses related to impairment of goodwill and $2.3 million for facility consolidations and severance.
Income (Loss) from Continuing Operations. The loss from continuing operations was $2.0 million, or $0.16 per diluted share in the third quarter of 2009 and $38.4 million, or $3.13 per diluted share, for the first nine months of 2009 compared with a loss from continuing operations of $732 thousand, or $0.06 per diluted share in the third quarter of 2008 and income from continuing operations of $633 thousand, or $0.05 per diluted share for the first nine months of 2008. The loss from continuing operations in the third quarter of 2009 included $407 thousand of losses, or $0.03 per diluted share for consolidation and severance expenses. The loss from continuing operations for the first nine months of 2009 included $29.9 million, or $2.44 per diluted share of losses associated with the impairment of goodwill and consolidation and severance expenses.
Net Income (Loss). Discontinued operations reflected income of $23 thousand, or $0.00 per diluted share, in the third quarter of 2009 compared with a loss of $101 thousand, or $0.01 per diluted share, in the same period in 2008. Discontinued operations reflected a loss of $176 thousand, or $0.01 per diluted share, for the first nine months of 2009 compared with a loss of $167 thousand, or $0.01 per diluted share, for the first nine months of 2008. Including discontinued operations, the net loss was $2.0 million, or $0.16 per diluted share, in the third quarter of 2009 compared with a net loss of $833 thousand, or $0.07 per diluted share, in the third quarter of 2008. The first nine months of 2009 reflected a net loss of $38.6 million, or $3.14 per diluted share, compared with net income of $466 thousand, or $0.04 per diluted share, in the same period in 2008.
Working capital was reduced $20.6 million in the first nine months of 2009, principally as a result of lower levels of receivables and inventories. Receivables and inventories declined $7.9 million and $16.0 million; respectively, other current assets decreased $830 thousand and accounts payable and accrued expenses decreased $4.3 million. The lower levels of receivables reflected reductions of $2.0 million in trade receivables, $3.0 million in income taxes receivable and $2.9 million in other receivables. Inventories were reduced in all categories commensurate with the lower levels of business activity.
Capital expenditures for the nine months ended September 26, 2009 were $2.2 million, while depreciation and amortization was $10.5 million. We expect capital expenditures to be approximately $3.0 million for fiscal 2009, while depreciation and amortization is expected to be approximately $13.6 million. Planned 2009 capital expenditures relate primarily to expenditures to maintain our facilities and equipment. Earlier capital expenditure plans for 2009 included equipment for new manufacturing technology with a value of approximately $3.2 million. The equipment was subsequently obtained under an operating lease.
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