Latest news with #LaurelHurd
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
Yahoo
15-05-2025
- Business
- Yahoo
Office & Commercial Furniture Stocks Q1 Recap: Benchmarking Interface (NASDAQ:TILE)
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let's have a look at Interface (NASDAQ:TILE) and its peers. The sector faces a tepid outlook as workplace dynamics continue to evolve. Hybrid work means that enterprise demand for office furniture is lower. Consumer demand for the same products likely will not offset the loss from enterprises, as individual workers tend to have less space and need for the sector's wares. The Trump administration also possesses a high willingness to impose tariffs on key partners, which could result in retaliatory actions, all of which could pressure those selling furniture that may feature components or labor from overseas. Lastly, the COVID-19 pandemic showed that there is always a risk that something disrupts supply chains, and companies need contingency plans for this. The 4 office & commercial furniture stocks we track reported a strong Q1. As a group, revenues along with next quarter's revenue guidance were in line with analysts' consensus estimates. In light of this news, share prices of the companies have held steady as they are up 4% on average since the latest earnings results. Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ:TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions. Interface reported revenues of $297.4 million, up 2.6% year on year. This print was in line with analysts' expectations, and overall, it was a strong quarter for the company with a solid beat of analysts' EPS estimates and full-year revenue guidance slightly topping analysts' expectations. 'We delivered a solid start to the year, with currency-neutral net sales growth of 4% year-over-year. Strong momentum continued in the Americas, where net sales grew 6% and currency-neutral orders were up 10%, partially offset by a softer macro environment in EAAA. Global billings in both Healthcare and Education grew double digits demonstrating the power of our strategy that continues to diversify and strengthen our business,' commented Laurel Hurd, CEO of Interface. Interface scored the fastest revenue growth and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 11.4% since reporting and currently trades at $20.96. Is now the time to buy Interface? Access our full analysis of the earnings results here, it's free. With roots dating back to 1944 and a significant acquisition of Kimball International in 2023, HNI (NYSE:HNI) manufactures and sells office furniture systems, seating, and storage solutions, as well as residential fireplaces and heating products. HNI reported revenues of $599.8 million, up 2% year on year, outperforming analysts' expectations by 3.3%. The business had a stunning quarter with an impressive beat of analysts' EPS estimates. HNI pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $47.44. Is now the time to buy HNI? Access our full analysis of the earnings results here, it's free. Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ:MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide. MillerKnoll reported revenues of $876.2 million, flat year on year, falling short of analysts' expectations by 4.6%. It was a disappointing quarter with full-year revenue guidance missing analysts' expectations. MillerKnoll delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 4.1% since the results and currently trades at $17.59. Read our full analysis of MillerKnoll's results here. Founded in 1912 when metal office furniture was replacing wooden alternatives, Steelcase (NYSE:SCS) is a global office furniture manufacturer that designs and produces workplace solutions including desks, chairs, architectural products, and services. Steelcase reported revenues of $788 million, up 1.7% year on year. This result met analysts' expectations. Overall, it was an exceptional quarter as it also put up a solid beat of analysts' EPS estimates and an impressive beat of analysts' EPS guidance for next quarter estimates. The stock is flat since reporting and currently trades at $10.54. Read our full, actionable report on Steelcase here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
02-05-2025
- Business
- Yahoo
Interface's (NASDAQ:TILE) Q1 Earnings Results: Revenue In Line With Expectations, Stock Soars
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, coming in 1.9% above analysts' estimates. Its non-GAAP profit of $0.25 per share was 19% above analysts' consensus estimates. Is now the time to buy Interface? Find out in our full research report. 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 (19% 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: $1.10 billion 'We delivered a solid start to the year, with currency-neutral net sales growth of 4% year-over-year. Strong momentum continued in the Americas, where net sales grew 6% and currency-neutral orders were up 10%, partially offset by a softer macro environment in EAAA. Global billings in both Healthcare and Education grew double digits demonstrating the power of our strategy that continues to diversify and strengthen our business,' commented Laurel Hurd, CEO of Interface. Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ:TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions. Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $1.32 billion in revenue over the past 12 months, Interface is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. As you can see below, Interface struggled to increase demand as its $1.32 billion of sales for the trailing 12 months was close to its revenue five years ago. This shows demand was soft, a poor baseline for our analysis. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Just like its five-year trend, Interface's revenue over the last two years was flat, suggesting it is in a slump. This quarter, Interface grew its revenue by 2.6% year on year, and its $297.4 million of revenue was in line with Wall Street's estimates. Company management is currently guiding for a 3.9% year-on-year increase in sales next quarter. We also like to judge companies based on their projected revenue growth, but not enough Wall Street analysts cover the company for it to have reliable consensus estimates. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. Interface was profitable over the last five years but held back by its large cost base. Its average operating margin of 8% was weak for a business services business. On the plus side, Interface's operating margin rose by 3.4 percentage points over the last five years. This quarter, Interface generated an operating profit margin of 7.8%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Interface, its EPS declined by 16.7% annually over the last five years while its revenue was flat. However, its operating margin actually expanded during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings. We can take a deeper look into Interface's earnings to better understand the drivers of its performance. A five-year view shows Interface has diluted its shareholders, growing its share count by 1.2%. This dilution overshadowed its increased operating efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q1, Interface reported EPS at $0.25, in line with the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. We were impressed by how significantly Interface blew past analysts' EPS expectations this quarter. We were also glad its revenue guidance for next quarter exceeded Wall Street's estimates. Zooming out, we think this was a solid print. The stock traded up 5.1% to $19.78 immediately after reporting. Indeed, Interface had a rock-solid quarterly earnings result, but is this stock a good investment here? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Business Wire
02-05-2025
- Business
- Business Wire
Interface Reports First 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 first quarter ended March 30, 2025. First quarter highlights: Net sales totaled $297 million, up 2.6% year-over-year and up 4.1% currency-neutral. GAAP earnings per diluted share of $0.22; Adjusted earnings per diluted share of $0.25. Momentum continues with One Interface strategy. 'We delivered a solid start to the year, with currency-neutral net sales growth of 4% year-over-year. Strong momentum continued in the Americas, where net sales grew 6% and currency-neutral orders were up 10%, partially offset by a softer macro environment in EAAA. Global billings in both Healthcare and Education grew double digits demonstrating the power of our strategy that continues to diversify and strengthen our business,' commented Laurel Hurd, CEO of Interface. 'Our first quarter performance highlights the ongoing success of our One Interface strategy, which aims to accelerate growth, expand margins, and lead in design, performance, and sustainability. To further these goals, we recently named our first Vice President of Global Product Category Management to accelerate and optimize our product innovation pipeline, ensuring we continue to deliver world-class products that meet the evolving needs of the market while embodying the essence of Interface,' continued Hurd. 'First quarter results exceeded our expectations, reflecting our team's disciplined execution amid a dynamic macroeconomic backdrop. We are navigating the current environment from a position of strength, as our One Interface strategy continues to yield tangible results, and our strong balance sheet provides optionality and flexibility. We remain focused on delivering long-term value for our shareholders,' added Bruce Hausmann, CFO of Interface. 3/30/2025 3/31/2024 Change GAAP Net Sales $ 297.4 $ 289.7 2.6 % Gross Profit Margin % of Net Sales 37.3 % 38.1 % (80) bps SG&A Expenses $ 87.7 $ 86.0 2.1 % SG&A Expenses % of Net Sales 29.5 % 29.7 % (17) bps Operating Income $ 23.2 $ 24.4 (5.0 )% Net Income $ 13.0 $ 14.2 (8.3 )% Earnings per Diluted Share $ 0.22 $ 0.24 (8.3 )% Non-GAAP Currency-Neutral Net Sales $ 301.7 $ 289.7 4.1 % Adjusted Gross Profit Margin % of Net Sales 37.7 % 38.6 % (82) bps Adjusted SG&A Expenses $ 86.8 $ 86.2 0.7 % Adjusted SG&A Expenses % of Net Sales 29.2 % 29.7 % (57) bps Adjusted Operating Income $ 25.5 $ 25.5 (0.3 )% Adjusted Net Income $ 14.6 $ 14.2 3.0 % Adjusted Earnings per Diluted Share $ 0.25 $ 0.24 4.2 % Adjusted EBITDA $ 37.0 $ 38.8 (4.5 )% Currency-Neutral Orders Increase Year-Over-Year 3.3 % First quarter 2025 adjusted gross profit margin declined 82 basis points year-over-year, as expected, due to higher manufacturing costs in EAAA and higher freight costs partially offset by higher pricing. Additional Metrics 3/30/2025 12/29/2024 Change Cash $ 97.8 $ 99.2 (1.5 )% Total Debt $ 302.9 $ 302.8 0.0 % Total Debt Minus Cash ("Net Debt") $ 205.1 $ 203.5 0.8 % Last 12-Months Adjusted EBITDA $ 187.2 Total Debt divided by Last 12-Months Net Income 3.5x Net Debt divided by Last 12-Months Adjusted EBITDA ("Net Leverage Ratio") 1.1x Expand Segment Results Summary (Unaudited) Three Months Ended (in millions, except percentages) 3/30/2025 3/31/2024 Change AMS Net Sales $ 179.9 $ 169.9 5.9 % Currency-Neutral Net Sales $ 180.7 $ 169.9 6.3 % Operating Income $ 19.1 $ 18.2 5.2 % Adjusted Operating Income $ 19.9 $ 18.1 9.9 % Currency-Neutral Orders Increase Year-Over-Year 9.8 % EAAA Net Sales $ 117.5 $ 119.8 (2.0 )% Currency-Neutral Net Sales $ 121.1 $ 119.8 1.0 % Operating Income $ 4.1 $ 6.3 (34.6 )% Adjusted Operating Income $ 5.6 $ 7.4 (24.9 )% Currency-Neutral Orders (Decrease) Year-Over-Year (5.7 )% Expand Outlook Interface is forecasting a strong second quarter and remains focused on delivering a strong year amid a dynamic macro environment and increased global macro uncertainty. Order momentum and a healthy backlog support the Company's expectations for a strong second quarter. With that backdrop in mind, Interface anticipates the following: Webcast and Conference Call Information Interface will host a conference call on May 2, 2025, at 8:00 a.m. Eastern Time, to discuss its first 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: h ttps:// 711411681, 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 our 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 second 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) 3/30/2025 12/29/2024 Assets Cash and Cash Equivalents $ 97,757 $ 99,226 Accounts Receivable, net 162,754 171,135 Inventories, net 281,741 260,581 Other Current Assets 37,185 33,355 Total Current Assets 579,437 564,297 Property, Plant and Equipment, net 283,783 282,374 Operating Lease Right-of-Use Assets 77,845 76,815 Goodwill and intangibles assets, net 152,282 148,160 Other Assets 98,451 99,170 Total Assets $ 1,191,798 $ 1,170,816 Liabilities Accounts Payable $ 82,958 $ 68,943 Accrued Expenses 114,009 134,996 Current Portion of Operating Lease Liabilities 12,718 12,296 Current Portion of Long-Term Debt 487 482 Total Current Liabilities 210,172 216,717 Long-Term Debt 302,390 302,275 Operating Lease Liabilities 69,160 68,092 Other Long-Term Liabilities 97,009 94,584 Total Liabilities 678,731 681,668 Shareholders' Equity 513,067 489,148 Total Liabilities and Shareholders' Equity $ 1,191,798 $ 1,170,816 Expand Consolidated Statements of Cash Flows (Unaudited) Three Months Ended (In thousands) 3/30/2025 3/31/2024 OPERATING ACTIVITIES Net Income $ 13,002 $ 14,179 Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: Depreciation and Amortization 9,401 9,616 Share-Based Compensation Expense 4,145 3,915 Amortization of Acquired Intangible Assets 1,255 1,297 Deferred Taxes (837 ) (678 ) Other 3,070 (3,708 ) Change in Working Capital Accounts Receivable 10,675 13,837 Inventories (16,339 ) (20,477 ) Prepaid Expenses and Other Current Assets (3,438 ) (2,193 ) Accounts Payable and Accrued Expenses (9,195 ) (3,169 ) Cash Provided by Operating Activities 11,739 12,619 INVESTING ACTIVITIES Capital Expenditures (7,467 ) (4,033 ) Proceeds from Sale of Property, Plant and Equipment — 1,040 Insurance Proceeds from Property Casualty Loss — 1,000 Cash Used in Investing Activities (7,467 ) (1,993 ) FINANCING ACTIVITIES Repayments of Long-term Debt (122 ) (34,783 ) Borrowing of Long-term Debt — 10,000 Tax Withholding Payments for Share-Based Compensation (7,730 ) (4,271 ) Dividends Paid (54 ) (6 ) Finance Lease Payments (762 ) (716 ) Cash Used in Financing Activities (8,668 ) (29,776 ) Net Cash Used in Operating, Investing and Financing Activities (4,396 ) (19,150 ) Effect of Exchange Rate Changes on Cash 2,927 (1,574 ) CASH AND CASH EQUIVALENTS Net Change During the Period (1,469 ) (20,724 ) Balance at Beginning of Period 99,226 110,498 Balance at End of Period $ 97,757 $ 89,774 Expand (In millions, except per share amounts) Reconciliation of Segment GAAP Financial Measures to Non-GAAP Financial Measures ("Currency-Neutral Net Sales", and "AOI") (In millions) First Quarter 2025 First Quarter 2024 AMS Segment EAAA Segment Consolidated * AMS Segment EAAA Segment Consolidated * GAAP Operating Income (Loss) $ 19.1 $ 4.1 $ 23.2 $ 18.2 $ 6.3 $ 24.4 Non-GAAP Adjustments: Purchase Accounting Amortization — 1.3 1.3 — 1.3 1.3 Cyber Event Impact — — — (0.2 ) (0.2 ) (0.4 ) Restructuring, Asset Impairment, Severance, and Other, net 0.7 0.2 1.0 0.1 0.1 0.2 Adjustments Subtotal * 0.7 1.5 2.2 (0.1 ) 1.2 1.1 AOI * $ 19.9 $ 5.6 $ 25.5 $ 18.1 $ 7.4 $ 25.5 * Note: Sum of reconciling items may differ from total due to rounding of individual components Expand (in millions) First Quarter 2025 First Quarter 2024 Last Twelve Months (LTM) Ended 3/30/2025 Fiscal Year 2024 Net Income as Reported (GAAP) $ 13.0 $ 14.2 $ 85.8 $ 86.9 Income Tax Expense 4.1 4.8 25.9 26.6 Interest Expense (including debt issuance cost amortization) 4.4 6.4 21.2 23.2 Depreciation and Amortization (excluding debt issuance cost amortization) 9.1 9.3 37.2 37.3 Share-based Compensation Expense 4.1 3.9 13.1 12.9 Purchase Accounting Amortization 1.3 1.3 5.1 5.2 Restructuring, Asset Impairment, Severance, and Other, net 1.0 0.2 3.3 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)* $ 37.0 $ 38.8 $ 187.2 $ 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. 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.
