Interface Q4 sales & orders increase 15% & 12%, respectively

26 Feb '11

5 min read

Interface, Inc., a worldwide floorcoverings company and global leader in sustainability, announced results for the fourth quarter and full fiscal year ended January 2, 2011.

Sales for the fourth quarter of 2010 were $265.3 million, compared with sales of $230.9 million in the fourth quarter of 2009, an increase of 14.9%. Fourth quarter 2010 operating income improved 46.4% to $29.5million, or 11.1% of sales, compared with operating income of $20.1 million, or 8.7% of sales, in the prior year period.

Excluding expenses of $43.3 million relating to the Company's previously-announced and completed bond refinancing (the largest component of which was $35.6 million of premiums paid in the associated tender offer), adjusted income from continuing operations in the 2010 fourth quarter was $14.3 million, or $0.22 per diluted share, compared with income from continuing operations of $6.6 million, or $0.10 per diluted share, in the fourth quarter of 2009. Including the bond refinancing expenses mentioned above, the Company had a loss from continuing operations during the fourth quarter 2010 of $12.4 million, or $0.20 per share. Including all items, net loss attributable to Interface, Inc. was $13.3 million, or $0.21 per share, in the fourth quarter of 2010, compared with net income attributable to Interface, Inc. of $5.9 million, or $0.09 per diluted share, in the fourth quarter of 2009.

"The fourth quarter went very well for us in a number of key strategic areas," said Daniel T. Hendrix, President and Chief Executive Officer. "Emerging market sales really began to accelerate, as both multinational and local investment ramped back up in those regions, particularly in India, China, Latin America and Russia. At the same time, we continued to benefit from the corporate office rebound in mature markets such as the United States, Australia and the United Kingdom, and I believe there is still a lot of pent up demand yet to be released. We also continued to drive penetration of carpet tile into non-office commercial segments, with the biggest percentage gains coming in hospitality, retail and education.

In addition, Bentley Prince Street experienced solid sales growth as its carpet tile business continued to expand, now representing about 40% of its business, while broadloom sales held steady. These factors combined to help us achieve significant year-over-year growth in sales, margins and adjusted earnings, as well as additional market share gains in the commercial carpet market.

Patrick C. Lynch, Senior Vice President and Chief Financial Officer, commented, "We continued to strengthen our balance sheet and improve revenues and profitability in the fourth quarter, exiting the year in a strong financial position. We've focused our investments on initiatives that enhance our ability to execute on our long-term strategy. For instance, we successfully opened our new carpet tile plant in China and are optimistic about the efficiencies it will deliver as production ramps up through the first quarter. In addition, we've continued to invest in our sales force, with a particular focus on expanding our end market diversification strategy globally. As we begin 2011, we are well-positioned financially to continue to execute on our initiatives and to capitalize on the future opportunities that support our growth."

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