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    Michael Hughes

    Portfolio Manager and Principal at SGF Capital

    Michael Hughes is a Portfolio Manager and Principal at SGF Capital Management, specializing in equity research and portfolio management with a focus on small-cap companies. He has notably covered companies such as Dixie Group and HG Holdings, participating in earnings calls and providing in-depth analyses that inform SGF Capital's investment strategies; his performance includes active contributions to research and portfolio decision-making, though specific public quantitative metrics for success rates or returns are not disclosed. Hughes has held his current role since joining SGF Capital Management, LP, with earlier career details not publicly available. His credentials likely include advanced securities licenses and professional registrations necessary for principal-level portfolio management, supporting his effectiveness in the industry. Hughes is recognized for his analytical expertise in evaluating niche public companies, enhancing SGF Capital’s investment profile.

    Michael Hughes's questions to DIXIE GROUP (DXYN) leadership

    Michael Hughes's questions to DIXIE GROUP (DXYN) leadership • Q4 2024

    Question

    Michael Hughes of S.A. Advisory inquired about the hard surfaces business, specifically its import sources, exposure to tariffs, and the ability to pass on costs. He also asked for details on the Q4 inventory write-down, the timeline for achieving $10 million in cost savings, the feasibility of the new credit facility's $9 million EBITDA covenant, and potential for further inventory reductions. Hughes concluded by asking about tariff impacts on the soft surfaces business and clarifying the available liquidity under the new credit facility.

    Answer

    Executive Daniel Frierson stated that very little product is imported from China, with sourcing focused on Thailand, Cambodia, and Vietnam, which would face a 10% tariff. He believes the industry will pass on these costs. CFO Allen Danzey detailed the Q4 inventory write-down, noting a $1.3 million reserve increase to facilitate moving excess inventory. Frierson confirmed the company is already near its $10 million cost-saving run rate. Danzey expressed confidence in meeting the $9 million EBITDA covenant due to non-recurring 2024 costs and new savings initiatives. He also clarified that the $12.2 million in liquidity includes a required $6 million excess, leaving $6.2 million available.

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    Michael Hughes's questions to DIXIE GROUP (DXYN) leadership • Q2 2024

    Question

    Michael Hughes inquired about the second-half SG&A outlook following 2024 product launch completions, the progress on the $10M-$12M cost savings plan, the sustainability of Q2's 28% gross margin, the performance of the hard surfaces business, the incremental nature of the new $1.8M sublease income, and the cash CapEx forecast for the rest of the year.

    Answer

    CFO Allen Danzey explained that while sampling expenses are spread out, cash flow will improve in the second half as spending was front-loaded. CEO Daniel Frierson noted that 35-40% of this year's cost savings have been achieved, with a smaller program planned for next year. Danzey confirmed the current gross margins are sustainable at these volumes, driven by cost initiatives and consolidation. Frierson acknowledged the hard surfaces business was down 15-20%. Regarding the sublease, Danzey clarified that roughly $800,000 of the $1.8M is incremental income. He also projected back-half cash CapEx to be minimal, around $1M-$1.5M for maintenance.

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    Michael Hughes's questions to HG Holdings (STLY) leadership

    Michael Hughes's questions to HG Holdings (STLY) leadership • Q3 2015

    Question

    Michael Hughes of SGF Capital requested more details on the new youth furniture line, including its current retail presence, backlog size, and 2016 outlook. He also sought to understand the production bottleneck, questioning why manufacturing the youth line would delay the adult line if the company uses multiple facilities.

    Answer

    President and CEO Glenn Prillaman stated that while he could not quantify the backlog for the new youth line, it was growing amid positive market reception. He clarified the production issue by explaining that although the company uses multiple factories in Southeast Asia, all new product introductions for 2015, for both the youth and adult lines, were being manufactured in the same facility. This concentration caused the large initial production run for the youth brand to create a bottleneck, delaying other new products.

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