The company is a century-old company that has fundamentally transformed from a cotton yarn processor into a focused, high-end floorcovering manufacturer; the company sold its broadloom carpet, needlebond, and carpet recycling operations in 2003 to focus exclusively on the higher-end segments of the soft floorcovering markets. Management is pushing back hard with strategic cost-cutting measures expected to exceed $10 million and seeing clear opportunities, like the Fabrica wood program's 7.4% year-over-year sales growth.
Cyborg Score Rationale
The company experienced a 4% decline in annual net sales to $265.0 million in 2024, down from $276.3 million in 2023. The company maintained strong liquidity with $13.1 million available under its credit facility. In the second quarter of 2025, the company reported net income of $1.2 million, doubling the $600,000 from the prior year's period, largely due to a cost reduction plan.
Top Insights
Q2 2025 net income of $1.2 million doubled prior year, while gross profit margin improved to 29.2% from 28.1%, driven by cost reduction initiatives.
Soft floorcovering products outperformed hard surface products and gained market share in the soft surface category, with premium products showing strong performance across all categories.
In 2025 the company secured a new $75 million senior credit facility, replacing the previous one, to manage liquidity amid a challenging economic climate.
The company's soft surface sales stayed flat while the industry declined by 7%.
Named Competitors
Shaw Industries — Large diversified floorcovering manufacturer
Mohawk Industries — Major flooring and carpet producer
Interface — Commercial and residential modular flooring
Recent Developments
(March 2026) Reported financial results for Q4 2025 and full-year 2025
(May 2026) Scheduled Q1 2026 earnings conference call for May 11, 2026
(Q2 2025) Reported net income of $1.2 million with cost reduction plan expected to save $12.6 million annually
(Q1 2025) Secured new $75 million senior credit facility replacing previous arrangement
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