Sales & orders increase at modular carpet producer
Interface, Inc., a worldwide floorcoverings company and global leader in sustainability, announced results for the first quarter ended April 4, 2010.
Sales for the first quarter of 2010 were $217.2 million, compared with sales of $199.3 million in the first quarter of 2009, an increase of 9.0%. Excluding a restructuring charge of $3.1 million primarily related to the Company's European operations, operating income for the 2010 first quarter was $16.9 million, or 7.8% of sales. This compares with operating income (excluding a $5.7 million restructuring charge) of $8.8 million, or 4.4% of sales, in the first quarter of the prior year. Including the respective restructuring charges, operating income in the first quarter of 2010 was $13.8 million, or 6.3% of sales, compared with operating income of $3.1 million, or 1.5% of sales, in the first quarter of 2009.
When adjusted to exclude the aforementioned restructuring charge and expenses of $1.1 million relating to the Company's previously-announced bond redemption, net income attributable to Interface, Inc. in the 2010 first quarter was $4.9 million, or $0.08 per diluted share, compared with a net loss attributable to Interface, Inc. of $0.2 million, or $0.00 per share, in the first quarter of 2009, which was adjusted to exclude the aforementioned restructuring charge. Including all items in both periods, net income attributable to Interface, Inc. for the 2010 first quarter was $1.9 million, or $0.03 per diluted share, compared with a net loss attributable to Interface, Inc. in the year-ago period of $4.2 million, or $0.07 per share.
"The first quarter was a very encouraging start to the year, especially when you consider that historically it's our slowest period, seasonally," said Daniel T. Hendrix, President and Chief Executive Officer. "We experienced our first year-over-year increase in overall sales, and, perhaps most importantly, within the corporate office segment as well, since the economic crisis hit in 2008. Our improved performance also reflected the continued successful execution of our end-market diversification strategy, as we saw solid growth in the education, retail and hospitality sectors, and the ongoing secular shift in overall market demand towards carpet tile. Geographically, we saw excellent results in the Asia-Pacific region, while momentum in North America showed significant improvement and Europe, which has been our softest region, held up well on a currency adjusted basis. Emerging markets, particularly China, India and Latin America, were remarkably robust during the quarter."
Patrick C. Lynch, Senior Vice President and Chief Financial Officer, commented, "We continued to execute against our strategic plan, including reducing our debt, managing our cost structure, and making further strategic expenditures in sales and marketing. Through the downturn, we have been focused on serving customers from a lower fixed cost base and strengthening our overall business model. As a result of tight cost controls and the improved efficiency in our operations, we were able to generate a significant expansion in operating profit margin year-over-year, and we believe that the Company is favorably positioned to continue to capitalize on an emerging global recovery."