Interface Reports Second Quarter 2023 Results

About this update from Interface, Inc.

[{"type":"text","content":" ATLANTA--(BUSINESS WIRE)--\nInterface, Inc. (Nasdaq: TILE), a worldwide commercial flooring company and global leader in sustainability, today announced results for the second quarter ended July 2, 2023.\n\n\nSecond quarter highlights:\n\n\n\nNet sales totaled $329.6 million, down 4.9% year-over-year. Currency neutral net sales were down 4.7% year-over-year.\n\n\n\nGAAP earnings per share of $0.27; Adjusted earnings per share of $0.25.\n\n\n\nGenerated $18.3 million cash from operations, repaid $25.9 million of debt in the quarter.\n\n\n\n“Our second quarter results came in as we anticipated with currency neutral net sales down 5% against a particularly strong prior year comp that was up 23%. We saw steady order demand during the quarter and our backlog remains solid, up $23 million since the beginning of the year. We continue to benefit from effective execution of our global diversification strategy and remain focused on key segments, including Education, Healthcare, and Corporate Office. Education sales were particularly robust in the second quarter, up 7% year-over-year, as facilities teams and administrators invested in refurbishment and maintenance projects during their summer break,” commented Laurel Hurd, CEO of Interface.\n\n\n“Our gross profit margins improved sequentially to 33.9% in Q2 due to higher pricing and favorable product mix, partially offset by lower fixed cost absorption,” added Hurd. “Our One Interface strategy is progressing as planned. Importantly, we recently hired the company’s first Chief Supply Chain Officer, a new global leader responsible for expanding our gross margins through efficiency and productivity initiatives across our global manufacturing and supply chain footprint. We are advancing well through our multi-year initiatives and remain focused on leveraging the strength of our entire organization to drive improved margins and profitable growth across the business,” concluded Hurd.\n\n\n“In alignment with our continued focus on debt repayment as a top capital allocation priority, we repaid $25.9 million of debt during the second quarter, and our debt balances were down $69.8 million year over year. As we look to the back half of the year, we remain focused on strengthening our balance sheet and continuing to improve gross margins,” added Bruce Hausmann, CFO of Interface.\n\n\nSecond Quarter 2...

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