Operator

Good day, and welcome to the Dixie Group, Inc. 2026 First Quarter Earnings Conference Call. Today's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to the Chairman and Chief Executive Officer, Dan Frierson.. Please go ahead.

Daniel Frierson
Chairman & CEO

Thank you, Christine, and welcome, everyone, to our first quarter 2026 conference call. With me, I have Allen Danzey, our Chief Financial Officer. Our safe harbor statement is included by reference both to our website and press release.

For the first quarter of 2026, the company's net sales were $59.38 million as compared to $62.99 million in the same quarter of 2025 or down 5.7%. The company had an operating income of $3.264 million in the first quarter of 2026 compared to an operating income of $11,000 in the first quarter of the previous year.

The net income from continuing operations in the first quarter of 2026 was $1.354 million or $0.09 per diluted share. In 2025, the net loss from continuing operations for the first quarter was $1.582 million or $0.11 per diluted share.

At this time, Allen will review our financial results, after which I will have additional comments regarding our improved results.

Allen Danzey
VP & CFO

All right. Thank you, Dan. In the first quarter of 2026, the company recognized a receivable for the anticipated refund of the IEEPA tariffs that were incurred in 2025 and 2026. The amount of that receivable was $3.3 million and a corresponding gain was