THE DIXIE GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) Table of Contents 39 See accompanying notes to the consolidated financial statements. Year Ended December 29,  2018 December 30,  2017 December 31,  2016 CASH FLOWS FROM OPERATING ACTIVITIES Loss from continuing operations $ (21,479) $ (9,322) $ (5,207) Income (loss) from discontinued operations 95 (233 ) (131 ) Income on disposal of discontinued operations — — 60 Net loss (21,384 ) (9,555 ) (5,278 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 12,653 12,947 13,515 Provision (benefit) for deferred income taxes (537 ) 8,181 (3,260 ) Net loss (gain) on property, plant and equipment disposals (1,047) 170 725 Impairment of assets 1,164 — — Impairment of goodwill and intangibles 5,545 — — Stock-based compensation (credit) expense (29 ) 940 1,324 Excess tax benefits from stock-based compensation — — (3) Bad debt expense 163 70 38 Changes in operating assets and liabilities: Receivables 3,775 (2,945 ) 7,163 Inventories 8,462 (16,420) 17,909 Other current assets (535 ) 776 (1,014 ) Accounts payable and accrued expenses (4,198) (3,161) (6,827) Other operating assets and liabilities 1,073 (609 ) (371 ) NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES 5,105 (9,606) 23,921 CASH FLOWS FROM INVESTING ACTIVITIES Net proceeds from sales of property, plant and equipment 1,856 — 1 Purchase of property, plant and equipment (4,052) (12,724) (4,904) NET CASH USED IN INVESTING ACTIVITIES (2,196 ) (12,724 ) (4,903 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings (payments) on revolving credit facility 1,512 27,125 (9,986) Payments on notes payable - buildings (731 ) (731 ) (731 ) Payments on notes payable related to acquisitions (791) (1,920) (1,924) Borrowings on notes payable - equipment and other 3,273 7,612 2,674 Payments on notes payable - equipment and other (4,260) (4,145) (4,653) Payments on capital leases (4,617 ) (3,921 ) (3,171 ) Change in outstanding checks in excess of cash 2,762 (1,695) (932) Repurchases of Common Stock (58 ) (116 ) (152 ) Excess tax benefits from stock-based compensation — — 3 Payments for debt issuance costs — — (287 ) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (2,910) 22,209 (19,159) DECREASE IN CASH AND CASH EQUIVALENTS (1) (121) (141) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 19 140 281 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 18 $ 19 $ 140 SUPPLEMENTAL CASH FLOW INFORMATION: Equipment purchased under capital leases 223 621 169 Equipment purchased under notes payable — 59 — Accrued purchases of equipment 166 179 258 Shortfall of tax benefits from stock-based compensation — — (192)