Consolidated Statements of Operations (dollars in thousands, except per share data) 12 YEAR ENDED DECEMBER 29, DECEMBER 30, DECEMBER 25, 2001 2000 1999 NET SALES $ 534,598 $ 568,081 $ 597,869 Cost of sales 420,622 470,437 483,098 GROSS PROFIT 113,976 97,644 114,771 Selling and administrative expenses 96,316 96,471 79,269 Other (income) expense – net (947) (161) 2,081 INCOME BEFORE INTEREST AND TAXES 18,607 1,334 33,421 Interest expense 17,533 17,211 13,051 INCOME (LOSS) BEFORE INCOME TAXES 1,074 (15,877) 20,370 Income tax provision (benefit) 557 (5,727) 7,971 INCOME (LOSS) FROM CONTINUING  OPERATIONS 517 (10,150) 12,399 INCOME ON DISPOSAL OF  DISCONTINUED OPERATIONS  – 824  4,792 NET INCOME (LOSS) $ 517 $ (9,326) $ 17,191 BASIC EARNINGS (LOSS) PER SHARE: Income (loss) from continuing operations $ 0.04 $ (0.88) $ 1.09  Income on disposal of discontinued operations – 0.07  .42  Net income (loss) $ 0.04 $ (0.81) $ 1.51  DILUTED EARNINGS (LOSS) PER SHARE: Income (loss) from continuing operations $ 0.04 $ (0.88) $ 1.06  Income on disposal of discontinued operations – 0.07  .41  Net income (loss) $ 0.04 $ (0.81) $ 1.47  DIVIDENDS PER SHARE: Common Stock _ _ _ Class B Common Stock _ _ _ See accompanying notes to the consolidated financial statements. THE DIXIE GROUP  / 2001 ANNUAL REPORT