The Dixie Group Announces Estimated Impact of Tax Cut and Jobs Act of 2017
February 07 2018 - 04:00AM
The Dixie Group, Inc. (NASDAQ:DXYN), a manufacturer of fine
flooring products, expects that future US after-tax earnings will
be positively impacted by the recently-enacted changes to US
corporate taxes, largely due to the reduction of the US federal
corporate income tax rate.
The lowering of the US corporate income tax rate
and changes to the income tax rules, including the revised
treatment of net operating losses, requires revaluation of the
company’s deferred tax assets and liabilities. The ultimate impact
of the change in the US corporate income tax rate is subject to a
number of complex provisions in the legislation which the Company
is reviewing. The current estimated impact of the Tax Cut and
Jobs Act of 2017 is a non-cash charge to the income statement of
around $8.2 million that will affect the Company’s 2017 results.
Details of the final actual charge are expected to be disclosed in
the Company’s 2017 results announcement, due on March 1, 2018.
Statements in this news release, which relate to
the future, 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 possibility that negotiations will not be successful,
that contract terms will not be as expected, and that levels of
demand for the products produced by the Company will change.
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, 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.
CONTACT: Jon FaulknerChief
Financial Officer706-876-5814jon.faulkner@dixiegroup.com
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