Latest news with #LaurelHurd
Globe and Mail
7 days ago
- Business
- Globe and Mail
Interface Increases Regular Quarterly Dividend
Interface, Inc. (Nasdaq: TILE), the global flooring solutions company and leader in sustainability, today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.02 per share, an increase from the previous quarterly dividend of $0.01 per share. The dividend is payable on September 12, 2025 to shareholders of record as of August 29, 2025. 'This increase, though modest, reflects our continued confidence in the strength of the business and our commitment to delivering shareholder value,' commented Laurel Hurd, CEO of Interface. About Interface Interface, Inc. (NASDAQ: TILE) is a global flooring solutions company and sustainability leader, offering an integrated portfolio of carpet tile and resilient flooring products that includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs for commercial and residential spaces. Made with purpose and without compromise, Interface flooring brings more sophisticated design, more performance, more innovation, and more climate progress to interior spaces. A decades-long pioneer in sustainability, Interface remains 'all in' on becoming a restorative business. Today, the company is focusing on carbon reductions, not offsets, as it works toward achieving its verified science-based targets by 2030 and its goal to become a carbon negative enterprise by 2040. Learn more about Interface at and nora by Interface at FLOR at and the company's sustainability journey at Follow us on Facebook, Instagram, LinkedIn, X, and Pinterest. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. The forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to the risks under the following subheadings in 'Risk Factors' in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2024, as supplemented in the Company's Quarterly Report on Form 10-Q for the quarter ended March 30, 2025: "We compete with a large number of manufacturers in the highly competitive floorcovering products market, and some of these competitors have greater financial resources than we do. We may face challenges competing on price, making investments in our business, or competing on product design or sustainability", "Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicates a material impairment of those assets", "Our success depends significantly upon the efforts, abilities and continued service of our senior management executives, our principal design consultant and other key personnel (including experienced sales and manufacturing personnel), and our loss of any of them could affect us adversely", "Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to pass these cost increases through to our customers", "Unanticipated termination or interruption of any of our arrangements with our primary third-party suppliers of synthetic fiber or our primary third-party supplier for luxury vinyl tile ('LVT') or other key raw materials could have a material adverse effect on us", "Changes to our facilities, manufacturing processes, product construction, and product composition could disrupt our operations, increase our manufacturing costs, increase customer complaints, increase warranty claims, negatively affect our reputation, and have a material adverse effect on our financial condition and results of operations", "Our business operations could suffer significant losses from natural disasters, acts of war, terrorism, catastrophes, fire, adverse weather conditions, pandemics, endemics, unstable geopolitical situations or other unexpected events", "The market price of our common stock has been volatile and the value of your investment may decline", "Sales of our principal products have been and may continue to be affected by adverse economic cycles, and effects in the new construction market and renovation market", "Disruptions to or failures of information technology systems we use could adversely affect our business", "The impact of potential changes to environmental laws and regulations and industry standards regarding climate change and other sustainability matters could lead to unforeseen disruptions to our business operations", "Health crisis events, such as epidemics or pandemics, have adversely impacted, and may continue to impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations", Our substantial international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including foreign currency fluctuations, restrictive taxation, custom duties, tariffs, border closings or other adverse government regulations", "The conflicts between Russia and Ukraine and in the Middle East could adversely affect our business, results of operations and financial position", "Fluctuations in foreign currency exchange rates have had, and could continue to have, an adverse impact on our financial condition and results of operations", "The uncertainty surrounding the ongoing implementation and effect of the U.K.'s exit from the European Union, and related negative developments in the European Union, could adversely affect our business, results of operations or financial condition", "We have a substantial amount of debt, which could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under our debt", "Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness", "We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness", "We face risks associated with litigation and claims", and 'Changes in foreign trade policies and tariffs may adversely impact our business, financial condition, and results of operations'. You should consider any additional or updated information we include under the heading 'Risk Factors' in our subsequent quarterly and annual reports. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company assumes no responsibility to update or revise forward-looking statements made in this press release and cautions readers not to place undue reliance on any such forward-looking statements.
Yahoo
7 days ago
- Business
- Yahoo
Interface Increases Regular Quarterly Dividend
ATLANTA, August 12, 2025--(BUSINESS WIRE)--Interface, Inc. (Nasdaq: TILE), the global flooring solutions company and leader in sustainability, today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.02 per share, an increase from the previous quarterly dividend of $0.01 per share. The dividend is payable on September 12, 2025 to shareholders of record as of August 29, 2025. "This increase, though modest, reflects our continued confidence in the strength of the business and our commitment to delivering shareholder value," commented Laurel Hurd, CEO of Interface. About Interface Interface, Inc. (NASDAQ: TILE) is a global flooring solutions company and sustainability leader, offering an integrated portfolio of carpet tile and resilient flooring products that includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs for commercial and residential spaces. Made with purpose and without compromise, Interface flooring brings more sophisticated design, more performance, more innovation, and more climate progress to interior spaces. A decades-long pioneer in sustainability, Interface remains "all in" on becoming a restorative business. Today, the company is focusing on carbon reductions, not offsets, as it works toward achieving its verified science-based targets by 2030 and its goal to become a carbon negative enterprise by 2040. Learn more about Interface at and nora by Interface at FLOR at and the company's sustainability journey at Follow us on Facebook, Instagram, LinkedIn, X, and Pinterest. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. The forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to the risks under the following subheadings in "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2024, as supplemented in the Company's Quarterly Report on Form 10-Q for the quarter ended March 30, 2025: "We compete with a large number of manufacturers in the highly competitive floorcovering products market, and some of these competitors have greater financial resources than we do. We may face challenges competing on price, making investments in our business, or competing on product design or sustainability", "Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicates a material impairment of those assets", "Our success depends significantly upon the efforts, abilities and continued service of our senior management executives, our principal design consultant and other key personnel (including experienced sales and manufacturing personnel), and our loss of any of them could affect us adversely", "Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to pass these cost increases through to our customers", "Unanticipated termination or interruption of any of our arrangements with our primary third-party suppliers of synthetic fiber or our primary third-party supplier for luxury vinyl tile ("LVT") or other key raw materials could have a material adverse effect on us", "Changes to our facilities, manufacturing processes, product construction, and product composition could disrupt our operations, increase our manufacturing costs, increase customer complaints, increase warranty claims, negatively affect our reputation, and have a material adverse effect on our financial condition and results of operations", "Our business operations could suffer significant losses from natural disasters, acts of war, terrorism, catastrophes, fire, adverse weather conditions, pandemics, endemics, unstable geopolitical situations or other unexpected events", "The market price of our common stock has been volatile and the value of your investment may decline", "Sales of our principal products have been and may continue to be affected by adverse economic cycles, and effects in the new construction market and renovation market", "Disruptions to or failures of information technology systems we use could adversely affect our business", "The impact of potential changes to environmental laws and regulations and industry standards regarding climate change and other sustainability matters could lead to unforeseen disruptions to our business operations", "Health crisis events, such as epidemics or pandemics, have adversely impacted, and may continue to impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations", Our substantial international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including foreign currency fluctuations, restrictive taxation, custom duties, tariffs, border closings or other adverse government regulations", "The conflicts between Russia and Ukraine and in the Middle East could adversely affect our business, results of operations and financial position", "Fluctuations in foreign currency exchange rates have had, and could continue to have, an adverse impact on our financial condition and results of operations", "The uncertainty surrounding the ongoing implementation and effect of the U.K.'s exit from the European Union, and related negative developments in the European Union, could adversely affect our business, results of operations or financial condition", "We have a substantial amount of debt, which could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under our debt", "Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness", "We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness", "We face risks associated with litigation and claims", and "Changes in foreign trade policies and tariffs may adversely impact our business, financial condition, and results of operations". You should consider any additional or updated information we include under the heading "Risk Factors" in our subsequent quarterly and annual reports. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company assumes no responsibility to update or revise forward-looking statements made in this press release and cautions readers not to place undue reliance on any such forward-looking statements. View source version on Contacts Media Contact:Christine NeedlesGlobal Corporate +1 404-491-4660 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
7 days ago
- Business
- Business Wire
Interface Increases Regular Quarterly Dividend
ATLANTA--(BUSINESS WIRE)-- Interface, Inc. (Nasdaq: TILE), the global flooring solutions company and leader in sustainability, today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.02 per share, an increase from the previous quarterly dividend of $0.01 per share. The dividend is payable on September 12, 2025 to shareholders of record as of August 29, 2025. 'This increase, though modest, reflects our continued confidence in the strength of the business and our commitment to delivering shareholder value,' commented Laurel Hurd, CEO of Interface. About Interface Interface, Inc. (NASDAQ: TILE) is a global flooring solutions company and sustainability leader, offering an integrated portfolio of carpet tile and resilient flooring products that includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs for commercial and residential spaces. Made with purpose and without compromise, Interface flooring brings more sophisticated design, more performance, more innovation, and more climate progress to interior spaces. A decades-long pioneer in sustainability, Interface remains 'all in' on becoming a restorative business. Today, the company is focusing on carbon reductions, not offsets, as it works toward achieving its verified science-based targets by 2030 and its goal to become a carbon negative enterprise by 2040. Learn more about Interface at and nora by Interface at FLOR at and the company's sustainability journey at Follow us on Facebook, Instagram, LinkedIn, X, and Pinterest. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. The forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to the risks under the following subheadings in 'Risk Factors' in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2024, as supplemented in the Company's Quarterly Report on Form 10-Q for the quarter ended March 30, 2025: "We compete with a large number of manufacturers in the highly competitive floorcovering products market, and some of these competitors have greater financial resources than we do. We may face challenges competing on price, making investments in our business, or competing on product design or sustainability", "Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicates a material impairment of those assets", "Our success depends significantly upon the efforts, abilities and continued service of our senior management executives, our principal design consultant and other key personnel (including experienced sales and manufacturing personnel), and our loss of any of them could affect us adversely", "Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to pass these cost increases through to our customers", "Unanticipated termination or interruption of any of our arrangements with our primary third-party suppliers of synthetic fiber or our primary third-party supplier for luxury vinyl tile ('LVT') or other key raw materials could have a material adverse effect on us", "Changes to our facilities, manufacturing processes, product construction, and product composition could disrupt our operations, increase our manufacturing costs, increase customer complaints, increase warranty claims, negatively affect our reputation, and have a material adverse effect on our financial condition and results of operations", "Our business operations could suffer significant losses from natural disasters, acts of war, terrorism, catastrophes, fire, adverse weather conditions, pandemics, endemics, unstable geopolitical situations or other unexpected events", "The market price of our common stock has been volatile and the value of your investment may decline", "Sales of our principal products have been and may continue to be affected by adverse economic cycles, and effects in the new construction market and renovation market", "Disruptions to or failures of information technology systems we use could adversely affect our business", "The impact of potential changes to environmental laws and regulations and industry standards regarding climate change and other sustainability matters could lead to unforeseen disruptions to our business operations", "Health crisis events, such as epidemics or pandemics, have adversely impacted, and may continue to impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations", Our substantial international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including foreign currency fluctuations, restrictive taxation, custom duties, tariffs, border closings or other adverse government regulations", "The conflicts between Russia and Ukraine and in the Middle East could adversely affect our business, results of operations and financial position", "Fluctuations in foreign currency exchange rates have had, and could continue to have, an adverse impact on our financial condition and results of operations", "The uncertainty surrounding the ongoing implementation and effect of the U.K.'s exit from the European Union, and related negative developments in the European Union, could adversely affect our business, results of operations or financial condition", "We have a substantial amount of debt, which could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under our debt", "Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness", "We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness", "We face risks associated with litigation and claims", and 'Changes in foreign trade policies and tariffs may adversely impact our business, financial condition, and results of operations'. You should consider any additional or updated information we include under the heading 'Risk Factors' in our subsequent quarterly and annual reports. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company assumes no responsibility to update or revise forward-looking statements made in this press release and cautions readers not to place undue reliance on any such forward-looking statements.
Business Wire
01-08-2025
- Business
- Business Wire
Interface Reports Second Quarter 2025 Results
ATLANTA--(BUSINESS WIRE)--Interface, Inc. (Nasdaq: TILE), a worldwide commercial flooring company and global leader in sustainability, today announced results for the second quarter ended June 29, 2025. Second quarter highlights (all comparisons are year-over-year): Net sales totaled $376 million, up 8% and up 7% currency neutral. GAAP earnings per diluted share of $0.55, a 45% increase; Adjusted earnings per diluted share of $0.60, a 50% increase. One Interface strategy continues to drive shareholder value. 'We delivered strong second quarter results ahead of our expectations with currency-neutral net sales growth of 7% and significantly expanded profitability. We continued to see strong momentum and market share gains in the Americas with currency-neutral net sales growth of 11% driven by our combined selling teams and expanded product offerings,' commented Laurel Hurd, CEO of Interface. 'Our One Interface strategy continues to yield measurable results, fueling growth across all product categories and key market segments. Second quarter global billings increased 28% in Healthcare, 11% in Education, and 3% in Corporate Office. Our performance reflects the strength of our strategy and market position, and our team's disciplined execution, despite market uncertainty,' continued Hurd. 'Gross profit margin expanded 403 basis points driven by higher pricing, favorable product mix, and higher sales volumes that generated manufacturing cost benefits in the second quarter. We are operating from a position of strength, with a solid balance sheet that gives us flexibility and optionality as we remain focused on long-term value creation for shareholders,' added Bruce Hausmann, CFO of Interface. 6/29/2025 6/30/2024 Change 6/29/2025 6/30/2024 Change GAAP Net Sales $ 375.5 $ 346.6 8.3 % $ 672.9 $ 636.4 5.7 % Gross Profit Margin % of Net Sales 39.4 % 35.4 % 403 bps 38.5 % 36.6 % 186 bps SG&A Expenses $ 95.9 $ 84.5 13.6 % $ 183.7 $ 170.4 7.8 % SG&A Expenses % of Net Sales 25.5 % 24.4 % 118 bps 27.3 % 26.8 % 51 bps Operating Income $ 52.0 $ 38.2 36.4 % $ 75.3 $ 62.6 20.3 % Net Income $ 32.6 $ 22.6 44.3 % $ 45.6 $ 36.7 24.0 % Earnings per Diluted Share $ 0.55 $ 0.38 44.7 % $ 0.77 $ 0.63 22.2 % Non-GAAP Currency-Neutral Net Sales $ 371.1 $ 346.6 7.1 % $ 672.9 $ 636.4 5.7 % Adjusted Gross Profit Margin % of Net Sales 39.8 % 35.7 % 402 bps 38.9 % 37.0 % 184 bps Adjusted SG&A Expenses $ 93.4 $ 84.3 10.8 % $ 180.2 $ 170.5 5.7 % Adjusted SG&A Expenses % of Net Sales 24.9 % 24.3 % 56 bps 26.8 % 26.8 % (1) bps Adjusted Operating Income $ 55.9 $ 39.6 41.2 % $ 81.4 $ 65.1 24.9 % Adjusted Net Income $ 35.4 $ 23.6 49.9 % $ 50.0 $ 37.8 32.3 % Adjusted Earnings per Diluted Share $ 0.60 $ 0.40 50.0 % $ 0.85 $ 0.64 32.8 % Adjusted EBITDA $ 64.8 $ 50.5 28.4 % $ 101.8 $ 89.2 14.1 % Currency-Neutral Orders Increase Year-Over-Year 2.9 % Second quarter 2025 adjusted gross profit margin increased 402 basis points year-over-year, due to higher pricing, favorable product mix, and lower manufacturing costs per unit on higher volume; partially offset by higher raw material costs. Second quarter 2025 adjusted SG&A expenses increased $9.1 million year-over-year due to higher sales commissions and variable compensation on increased sales and profits, higher healthcare costs, inflation, and foreign currency exchange variances. Additional Metrics 6/29/2025 12/29/2024 Change Cash $ 121.7 $ 99.2 22.6 % Total Debt $ 304.4 $ 302.8 0.6 % Total Debt Minus Cash ("Net Debt") $ 182.7 $ 203.5 (10.2 )% Last 12-Months Adjusted EBITDA $ 201.6 Total Debt divided by Last 12-Months Net Income 3.2x Net Debt divided by Last 12-Months Adjusted EBITDA ("Net Leverage Ratio") 0.9x Expand Segment Results Summary (Unaudited) Three Months Ended Six Months Ended (in millions, except percentages) 6/29/2025 6/30/2024 Change 6/29/2025 6/30/2024 Change AMS Net Sales $ 239.4 $ 215.0 11.4 % $ 419.4 $ 384.9 9.0 % Currency-Neutral Net Sales $ 239.6 $ 215.0 11.5 % $ 420.3 $ 384.9 9.2 % Operating Income $ 48.8 $ 26.8 82.2 % $ 68.0 $ 45.0 51.1 % Adjusted Operating Income $ 48.8 $ 26.9 81.3 % $ 68.7 $ 45.0 52.6 % Currency-Neutral Orders Increase Year-Over-Year 2.1 % EAAA Net Sales $ 136.1 $ 131.6 3.4 % $ 253.6 $ 251.5 0.8 % Currency-Neutral Net Sales $ 131.5 $ 131.6 (0.1 )% $ 252.6 $ 251.5 0.4 % Operating Income $ 3.2 $ 11.3 (71.8 )% $ 7.3 $ 17.6 (58.5 )% Adjusted Operating Income $ 7.1 $ 12.7 (44.2 )% $ 12.7 $ 20.1 (37.0 )% Currency-Neutral Orders (Decrease) Year-Over-Year 4.3 % Expand Outlook Based on strong Q2 2025 results, Interface is raising its full fiscal year guidance, while acknowledging a dynamic and uncertain global macro environment. With that backdrop in mind, Interface anticipates the following: Webcast and Conference Call Information Interface will host a conference call on August 1, 2025, at 8:00 a.m. Eastern Time, to discuss its second quarter 2025 results. The conference call will be simultaneously broadcast live over the Internet. Listeners may access the conference call live over the Internet at: or through the Company's website at: The archived version of the webcast will be available at these sites for one year beginning approximately one hour after the call ends. Non-GAAP Financial Measures Interface provides adjusted earnings per share, adjusted net income, adjusted operating income ("AOI"), adjusted gross profit, adjusted gross profit margin, adjusted SG&A expenses, currency- neutral sales and currency-neutral sales growth, net debt, and adjusted EBITDA as additional information regarding its operating results in this press release. These non-GAAP measures are not in accordance with – or alternatives to – GAAP measures, and may be different from non-GAAP measures used by other companies. Adjusted EPS, adjusted net income, and AOI exclude nora purchase accounting amortization, restructuring, asset impairment, severance, and other, net, and the cyber event impact. Adjusted EPS and adjusted net income also exclude the property casualty loss impact. Adjusted gross profit and adjusted gross profit margin exclude the nora purchase accounting amortization. Adjusted SG&A expenses exclude restructuring, asset impairment, severance, and other, net and the cyber event impact. Currency-neutral sales and currency-neutral sales growth exclude the impact of foreign currency fluctuations. Net debt is total debt less cash on hand. Adjusted EBITDA is GAAP net income excluding interest expense, income tax expense, depreciation and amortization, share-based compensation expense, cyber event impact, property casualty loss impact, restructuring, asset impairment, severance, and other, net, the nora purchase accounting amortization, and the loss on foreign subsidiary liquidation. This news release should be read in conjunction with the Company's Current Report on Form 8-K furnished today to the U.S. Securities & Exchange Commission, which explains why Interface believes presentation of these non-GAAP measures provides useful information to investors, as well as any additional material purposes for which Interface uses these non-GAAP measures. About Interface Interface, Inc. (NASDAQ: TILE) is a global flooring solutions company and sustainability leader, offering an integrated portfolio of carpet tile and resilient flooring products that includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs for commercial and residential spaces. Made with purpose and without compromise, Interface flooring brings more sophisticated design, more performance, more innovation, and more climate progress to interior spaces. A decades-long pioneer in sustainability, Interface remains 'all in' on becoming a restorative business. Today, the company is focusing on carbon reductions, not offsets, as it works toward achieving its verified science-based targets by 2030 and its goal to become a carbon negative enterprise by 2040. Learn more about Interface at and nora by Interface at FLOR at and the company's sustainability journey at Follow us on Facebook, Instagram, LinkedIn, X, and Pinterest. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. Forward-looking statements may be identified by words such as 'may,' 'expect,' 'forecast,' 'anticipate,' 'intend,' 'plan,' 'believe,' 'could,' 'should,' 'goal,' 'aim," 'objective,' 'seek,' 'project,' 'estimate,' 'target,' 'will' and similar expressions. Forward-looking statements in this press release include, without limitation, any projections we make regarding the Company's 2025 third quarter and full year 2025 under 'Outlook' above. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to the risks under the following subheadings in 'Risk Factors' in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2024: "We compete with a large number of manufacturers in the highly competitive floorcovering products market, and some of these competitors have greater financial resources than we do. We may face challenges competing on price, making investments in our business, or competing on product design or sustainability", "Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicates a material impairment of those assets", "Our success depends significantly upon the efforts, abilities and continued service of our senior management executives, our principal design consultant and other key personnel (including experienced sales and manufacturing personnel), and our loss of any of them could affect us adversely", "Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to pass these cost increases through to our customers", "Unanticipated termination or interruption of any of our arrangements with our primary third-party suppliers of synthetic fiber or our primary third-party supplier for luxury vinyl tile ('LVT') or other key raw materials could have a material adverse effect on us", "Changes to our facilities, manufacturing processes, product construction, and product composition could disrupt our operations, increase our manufacturing costs, increase customer complaints, increase warranty claims, negatively affect our reputation, and have a material adverse effect on our financial condition and results of operations", "Our business operations could suffer significant losses from natural disasters, acts of war, terrorism, catastrophes, fire, adverse weather conditions, pandemics, endemics, unstable geopolitical situations or other unexpected events", "The market price of our common stock has been volatile and the value of your investment may decline", "Sales of our principal products have been and may continue to be affected by adverse economic cycles, and effects in the new construction market and renovation market", "Disruptions to or failures of information technology systems we use could adversely affect our business", "The impact of potential changes to environmental laws and regulations and industry standards regarding climate change and other sustainability matters could lead to unforeseen disruptions to our business operations", "Health crisis events, such as epidemics or pandemics, have adversely impacted, and may continue to impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations", Our substantial international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including foreign currency fluctuations, restrictive taxation, custom duties, tariffs, border closings or other adverse government regulations", "The conflicts between Russia and Ukraine and in the Middle East could adversely affect our business, results of operations and financial position", "Fluctuations in foreign currency exchange rates have had, and could continue to have, an adverse impact on our financial condition and results of operations", "The uncertainty surrounding the ongoing implementation and effect of the U.K.'s exit from the European Union, and related negative developments in the European Union, could adversely affect our business, results of operations or financial condition", "We have a substantial amount of debt, which could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under our debt", "Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness", "We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness", and "We face risks associated with litigation and claims". You should consider any additional or updated information we include under the heading 'Risk Factors' in our subsequent quarterly and annual reports. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company assumes no responsibility to update or revise forward-looking statements made in this press release and cautions readers not to place undue reliance on any such forward-looking statements. - TABLES FOLLOW - Consolidated Balance Sheets (Unaudited) (In thousands) 6/29/2025 12/29/2024 Assets Cash and Cash Equivalents $ 121,701 $ 99,226 Accounts Receivable, net 194,251 171,135 Inventories, net 288,165 260,581 Other Current Assets 38,969 33,355 Total Current Assets 643,086 564,297 Property, Plant and Equipment, net 291,839 282,374 Operating Lease Right-of-Use Assets 80,619 76,815 Goodwill and intangibles assets, net 162,770 148,160 Other Assets 99,908 99,170 Total Assets $ 1,278,222 $ 1,170,816 Liabilities Accounts Payable $ 86,621 $ 68,943 Accrued Expenses 122,850 134,996 Current Portion of Operating Lease Liabilities 13,571 12,296 Current Portion of Long-Term Debt 506 482 Total Current Liabilities 223,548 216,717 Long-Term Debt 303,943 302,275 Operating Lease Liabilities 71,541 68,092 Other Long-Term Liabilities 104,165 94,584 Total Liabilities 703,197 681,668 Shareholders' Equity 575,025 489,148 Total Liabilities and Shareholders' Equity $ 1,278,222 $ 1,170,816 Expand Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Six Months Ended (In thousands) 6/29/2025 6/30/2024 6/29/2025 6/30/2024 OPERATING ACTIVITIES Net Income $ 32,561 $ 22,558 $ 45,563 $ 36,737 Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: Depreciation and Amortization 9,829 9,728 19,230 19,344 Share-Based Compensation Expense 2,771 2,616 6,917 6,531 Deferred Taxes 1,091 (361 ) 254 (1,039 ) Other (1,959 ) (58 ) 1,111 (3,766 ) Amortization of Acquired Intangible Assets 1,352 1,287 2,606 2,584 Change in Working Capital Accounts Receivable (25,414 ) (32,744 ) (14,739 ) (18,907 ) Inventories 4,238 14,816 (12,101 ) (5,661 ) Prepaid Expenses and Other Current Assets (970 ) (4,139 ) (4,408 ) (6,332 ) Accounts Payable and Accrued Expenses 6,629 7,836 (2,566 ) 4,667 Cash Provided by Operating Activities 30,128 21,539 41,867 34,158 INVESTING ACTIVITIES Capital Expenditures (7,354 ) (9,574 ) (14,821 ) (13,607 ) Proceeds from Sale of Property, Plant and Equipment — — — 1,040 Insurance Proceeds from Property Casualty Loss — — — 1,000 Cash Used in Investing Activities (7,354 ) (9,574 ) (14,821 ) (11,567 ) FINANCING ACTIVITIES Repayments of Long-term Debt (131 ) (12,147 ) (253 ) (46,930 ) Borrowing of Long-term Debt 1,306 7,334 1,306 17,334 Repurchase of Common Stock (4,286 ) — (4,286 ) — Tax Withholding Payments for Share-Based Compensation (6 ) (483 ) (7,736 ) (4,754 ) Dividends Paid (1,173 ) (1,167 ) (1,227 ) (1,173 ) Finance Lease Payments (782 ) (721 ) (1,544 ) (1,437 ) Cash Used in Financing Activities (5,072 ) (7,184 ) (13,740 ) (36,960 ) Net Cash Provided by (Used in) Operating, Investing and Financing Activities 17,702 4,781 13,306 (14,369 ) Effect of Exchange Rate Changes on Cash 6,242 (368 ) 9,169 (1,942 ) CASH AND CASH EQUIVALENTS Net Change During the Period 23,944 4,413 22,475 (16,311 ) Balance at Beginning of Period 97,757 89,774 99,226 110,498 Expand Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited) (In millions, except per share amounts) Gross Profit SG&A Expenses Operating Income (Loss) Pre-tax Tax Effect Net Income (Loss) Diluted EPS Gross Profit SG&A Expenses Operating Income (Loss) Pre-tax Tax Effect Net Income (Loss) Diluted EPS Non-GAAP Adjustments: Purchase Accounting Amortization 1.4 — 1.4 1.4 (0.4 ) 1.0 0.02 1.3 — 1.3 1.3 (0.4 ) 0.9 0.02 Restructuring, Asset Impairment, Severance, and Other, net — (2.5 ) 2.5 2.5 (0.6 ) 1.9 0.03 — (0.1 ) 0.1 0.1 0.0 0.1 — Adjustments Subtotal * 1.4 (2.5 ) 3.9 3.9 (1.0 ) 2.8 0.05 1.3 (0.2 ) 1.5 1.5 (0.4 ) 1.0 0.02 Adjusted (non-GAAP) * $ 149.3 $ 93.4 $ 55.9 $ 35.4 $ 0.60 $ 123.9 $ 84.3 $ 39.6 $ 23.6 $ 0.40 Expand First Six Months 2025 First Six Months 2024 Adjustments Adjustments Gross Profit SG&A Expenses Operating Income (Loss) Pre-tax Tax Effect Net Income (Loss) Diluted EPS Gross Profit SG&A Expenses Operating Income (Loss) Pre-tax Tax Effect Net Income (Loss) Diluted EPS Non-GAAP Adjustments: Purchase Accounting Amortization 2.6 — 2.6 2.6 (0.8 ) 1.8 0.03 2.6 — 2.6 2.6 (0.8 ) 1.8 0.03 Restructuring, Asset Impairment, Severance, and Other, net — (3.5 ) 3.5 3.5 (0.9 ) 2.6 0.04 — (0.3 ) 0.3 0.3 (0.1 ) 0.3 — Cyber Event Impact — — — — — — — — 0.4 (0.4 ) (0.4 ) 0.1 (0.3 ) (0.01 ) Property Casualty Loss (1) — — — — — — — — — — (1.0 ) 0.2 (0.7 ) (0.01 ) Adjustments Subtotal * 2.6 (3.5 ) 6.1 6.1 (1.6 ) 4.5 0.08 2.6 0.1 2.5 1.6 (0.5 ) 1.1 0.02 Adjusted (non-GAAP) * $ 261.5 $ 180.2 $ 81.4 $ 50.0 $ 0.85 $ 235.6 $ 170.5 $ 65.1 $ 37.8 $ 0.64 (1) Represents property insurance (recovery) / loss * Note: Sum of reconciling items may differ from total due to rounding of individual components Expand Second Quarter 2025 Second Quarter 2024 GAAP Operating Income (Loss) $ 48.8 $ 3.2 $ 52.0 $ 26.8 $ 11.3 $ 38.2 Non-GAAP Adjustments: Purchase Accounting Amortization — 1.4 1.4 — 1.3 1.3 Restructuring, Asset Impairment, Severance, and Other, net — 2.5 2.5 0.1 — 0.1 Adjustments Subtotal * — 3.9 3.9 0.1 1.3 1.5 AOI * $ 48.8 $ 7.1 $ 55.9 $ 26.9 $ 12.7 $ 39.6 First Six Months 2025 First Six Months 2024 GAAP Operating Income (Loss) $ 68.0 $ 7.3 $ 75.3 $ 45.0 $ 17.6 $ 62.6 Non-GAAP Adjustments: Purchase Accounting Amortization — 2.6 2.6 — 2.6 2.6 Cyber Event Impact — — — (0.2 ) (0.2 ) (0.4 ) Restructuring, Asset Impairment, Severance, and Other, net 0.7 2.8 3.5 0.3 0.1 0.3 Adjustments Subtotal * 0.7 5.4 6.1 — 2.5 2.5 AOI * $ 68.7 $ 12.7 $ 81.4 $ 45.0 $ 20.1 $ 65.1 * Note: Sum of reconciling items may differ from total due to rounding of individual components Expand (in millions) Second Quarter 2025 Second Quarter 2024 First Six Months 2025 First Six Months 2024 Last Twelve Months (LTM) Ended 6/29/2025 Fiscal Year 2024 Net Income as Reported (GAAP) $ 32.6 $ 22.6 $ 45.6 $ 36.7 $ 95.8 $ 86.9 Income Tax Expense 11.6 8.6 15.7 13.4 28.9 26.6 Interest Expense (including debt issuance cost amortization) 4.4 6.2 8.9 12.6 19.5 23.2 Depreciation and Amortization (excluding debt issuance cost amortization) 9.6 9.1 18.7 18.4 37.6 37.3 Share-based Compensation Expense 2.8 2.6 6.9 6.5 13.3 12.9 Purchase Accounting Amortization 1.4 1.3 2.6 2.6 5.2 5.2 Restructuring, Asset Impairment, Severance, and Other, net 2.5 0.1 3.5 0.3 5.7 2.5 Cyber Event Impact — — — (0.4 ) (5.1 ) (5.5 ) Property Casualty Loss (1) — — — (1.0 ) (1.4 ) (2.3 ) Loss on Foreign Subsidiary Liquidation (2) — — — — 2.2 2.2 Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (AEBITDA)* $ 64.8 $ 50.5 $ 101.8 $ 89.2 $ 201.6 $ 189.0 (1) Represents insurance recovery. (2) In 2024 our Thailand subsidiary was substantially liquidated and the related cumulative translation adjustment was recognized in other expense. * Note: Sum of reconciling items may differ from total due to rounding of individual components Expand The impacts of changes in foreign currency presented in the tables are calculated based on applying the prior year period's average foreign currency exchange rates to the current year period. The Company believes that the above non-GAAP performance measures, which management uses in managing and evaluating the Company's business, may provide users of the Company's financial information with additional meaningful basis for comparing the Company's current results and results in a prior period, as these measures reflect factors that are unique to one period relative to the comparable period. However, these non‑GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company's reported results under accounting principles generally accepted in the United States. Tax effects identified above (when applicable) are calculated using the statutory tax rate for the jurisdictions in which the charge or income occurred.
Yahoo
16-05-2025
- Business
- Yahoo
TILE Q1 Earnings Call: Strategic Diversification and Order Growth Offset Macro Headwinds
Modular flooring manufacturer Interface (NASDAQ:TILE) met Wall Street's revenue expectations in Q1 CY2025, with sales up 2.6% year on year to $297.4 million. The company expects next quarter's revenue to be around $360 million, close to analysts' estimates. Its non-GAAP profit of $0.25 per share was 17.5% above analysts' consensus estimates. Is now the time to buy TILE? Find out in our full research report (it's free). Revenue: $297.4 million vs analyst estimates of $296.5 million (2.6% year-on-year growth, in line) Adjusted EPS: $0.25 vs analyst estimates of $0.21 (17.5% beat) Adjusted EBITDA: $37 million vs analyst estimates of $34.95 million (12.4% margin, 5.9% beat) The company slightly lifted its revenue guidance for the full year to $1.35 billion at the midpoint from $1.34 billion Operating Margin: 7.8%, in line with the same quarter last year Free Cash Flow Margin: 1.4%, down from 3% in the same quarter last year Market Capitalization: $1.22 billion Interface's first quarter results reflected continued momentum in the company's core Americas market, with management crediting the One Interface strategy and diversified product portfolio for steady demand. CEO Laurel Hurd emphasized growth in education and healthcare segments, noting that both categories posted double-digit gains. She also cited the expansion of the i2 carpet tile portfolio and new product launches as key enablers of this quarter's performance. Looking ahead, management's guidance is anchored by a healthy backlog and robust order trends entering the second quarter. Hurd expressed confidence in offsetting recently announced tariffs through pricing adjustments and productivity improvements, stating these factors have been incorporated into current forecasts. The company remains focused on strategic investments in global product management and supply chain capabilities to sustain long-term growth, even as macroeconomic uncertainty persists. Management attributed Q1 performance to targeted growth in high-potential segments and ongoing operational improvements. Key points from the call underscore the impact of specific initiatives and market trends: Diversification delivers growth: The company's expansion into education and healthcare segments resulted in double-digit billing increases, driven by modernization initiatives and demand for durable, sustainable flooring solutions in these markets. Product innovation pipeline: Appointment of a VP of Global Product Category Management aims to accelerate product innovation and align offerings more closely with customer needs, supporting longer-term growth. Regional performance mixed: Americas posted 6% currency-neutral sales growth, with particularly strong order momentum, while Europe, Australia, and Asia-Pacific saw softer results, except for double-digit growth in Asia. Localized manufacturing limited exposure to currency swings and tariffs. Tariff mitigation plans: Management addressed exposure to new U.S. tariffs on select imported products (nora rubber from Germany and LVT from South Korea), noting that these impact less than 15% of global product costs. Plans to offset costs through pricing and productivity are already reflected in guidance. Supply chain optimization: Investments in global procurement, automation, and robotics—especially in U.S. carpet tile manufacturing—are delivering productivity gains, with plans to extend these improvements to Europe and Australia to support future margin expansion. Management's outlook for the coming quarters is shaped by expectations of continued end-market diversification, proactive tariff mitigation, and productivity enhancements, while acknowledging ongoing global macroeconomic uncertainty. Sustained segment momentum: Growth in education and healthcare markets is expected to continue, underpinned by modernization trends and demographic shifts, providing a buffer against softness in other segments like corporate office. Tariff impact managed: Management anticipates minimal disruption from new tariffs, with incremental pricing and productivity initiatives offsetting higher input costs, though timing of these offsets will be closely monitored. Strategic investments continue: Ongoing investment in product management, innovation, and global supply chain capabilities is expected to drive operational efficiencies and support margin stability, even as the economic environment remains unpredictable. Brian Biros (Thompson Research Group): Asked how the One Interface strategy contributed to margin and SG&A outperformance. Management cited strong Americas growth and double-digit gains in healthcare and education, with combined selling teams driving success in all product categories. Alex Paris (Barrington Research): Requested details on geographic growth, particularly in EMEA and Asia-Pacific. Management reported double-digit sales growth in Asia, with Europe and Australia described as softer. Alex Paris (Barrington Research): Inquired about potential risks and opportunities in government-related business amid return-to-office mandates. Management noted the segment is small but saw growth in Q1, driven by both public building churn and return-to-work activity. David MacGregor (Longbow Research): Pressed for clarification on the timing of tariff cost pass-through versus pricing actions. Management stated that commission-based selling and existing inventory should help align timing of cost recovery. David MacGregor (Longbow Research): Asked about benefits and timing from new global product management and procurement roles. Management expects these roles to drive incremental long-term growth and productivity, with early signs already visible in supply chain efficiencies. In the quarters ahead, our analysts will be watching (1) whether education and healthcare segments maintain double-digit growth amid broader macro uncertainty, (2) the effectiveness and timing of tariff cost recovery through pricing and productivity, and (3) progress on global supply chain and product management initiatives. Execution in offsetting input cost inflation and sustaining backlog momentum will also be key markers for ongoing performance. Interface currently trades at a forward EV-to-EBITDA ratio of 7.6×. At this valuation, is it a buy or sell post earnings? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
