8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):      February 23, 2010

                        INTERFACE, INC.                         

(Exact name of Registrant as Specified in its Charter)

Georgia	001-33994	58-1451243
(State or other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(IRS Employer Identification No.)

2859 Paces Ferry Road, Suite 2000 Atlanta, Georgia	30339
(Address of principal executive offices)	(Zip code)

Registrant’s telephone number, including area code:  (770) 437-6800

Not Applicable                                                      

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01    REGULATION FD DISCLOSURE.

Attached hereto as Exhibit 99.1 is a copy of written materials that may be used by Messrs. Daniel T. Hendrix and Patrick C. Lynch, the Company’s Chief Executive Officer and Chief Financial Officer, respectively, in presentations to investors and potential investors.  Whether or not the information set forth therein is properly considered to be material, we have elected, in this instance, to make the information available generally to all persons who might consider it to be useful for their respective purposes.  The information includes certain non-GAAP measures.  Reconciliations of the respective non-GAAP measures to the most comparable GAAP measures are contained in the materials.

            The information set forth in this Item 7.01, including the exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. 

ITEM 9.01   FINANCIAL STATEMENTS AND EXHIBITS.

(a)           Financial Statements of Businesses Acquired.

None.

(b)           Pro Forma Financial Information.

None.

(c)           Shell Company Transactions.

None.

(d)           Exhibits.

Exhibit No.	Description
99.1	Investor Presentation dated February 2010 (furnished pursuant to Item 7.01 of this Report).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	INTERFACE, INC.
By:	/s/ Patrick C. Lynch
	Patrick C. Lynch
	Senior Vice President
Date:  February 23, 2010

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Investor Presentation dated February 2010 (furnished pursuant to Item 7.01 of this Report).

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EX-99.1

2

This presentation contains forward-looking statements, including, in particular, statements about Interface’s
plans, strategies and prospects. These are based on the Company’s current assumptions, expectations and
projections about future events.

Although Interface believes that the expectations reflected in these forward-looking statements are
reasonable, the Company can give no assurance that these expectations will prove to be correct or that
savings or other benefits anticipated in the forward-looking statements will be achieved. Important factors,
some of which may be beyond the Company’s control, that could cause actual results to differ materially from
management’s expectations are discussed under the heading “Risk Factors” included in Item 1A of the
Company’s most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission,
which discussion is hereby incorporated by reference. Forward-looking statements speak only as of the date
made. The Company assumes no responsibility to update or revise forward-looking statements and cautions
listeners and conference attendees not to place undue reliance on any such statements.

Forward Looking Statements

3

Daniel Hendrix

§President and Chief Executive Officer

Patrick Lynch

§Senior Vice President and Chief Financial Officer

Presenters

4

§Interface is leading the secular shift to modular carpet as it moves from a niche to a
category with the leading global market share.

§Interface is the largest global manufacturerof modular carpet with a presence on four
continents (United States, England, Holland, Ireland, Thailand, China, Australia).

§Interface has established diversified end markets including emerging markets, non-
office commercial markets, and consumer representing nearly 55% of the overall
business.

§Interface is creating a consumer brand (FLOR) as modular carpet is moving from a
concept to awareness for the home.

§Interface’s global sales and marketing capabilities have created significant growth in
emerging markets which will experience growth faster than developed countries.

§Interface is the recognized thought leader in sustainability - the marketplace is
rewarding our leading position.

Investment Highlights

5

Interface Brands - Most Recognized in the Industry

6

Leadership Position in Sustainability

Global Make-to-Order Manufacturing and Local Distribution

Rapid Innovation and Designs

Invest in the Growth
of Emerging Markets

Growa

Consumer Brand

Diversify

End Use

Markets

Maintain Dominant
Share in the

Office Market

§Establish our position as
the leader in modular
carpet for the home

§Drive sales through direct
channels

§Potential roll out of FLOR-
branded store network in
the U.S.

§Drive growth of carpet tile
market in China with local
manufacturing presence

§Invest in growth in Latin
America, Eastern Europe,
Middle East, Africa and
Indo-China

§Gain share in commercial
non-office segments

§Establish “main street”
commercial presence in
the U.S. and Australia

§Pursue the airline
transportation segment in
the U.S.

§Capture opportunity as
the Office market
rebounds

§Gain share in European
carpet tile market

Lead the Secular Shift of Modular Carpet

Reduce the Cyclical Nature of our Business

Customer Intimacy

Interface Strategy: Be the Global Category Leader for Modular Carpet

7

Secular Shift

1.Creative DESIGN freedom

2.NO glue, NO pad

3.LOWER COST to change

4.Produces LESS WASTE

5.FASTER and more PROFITABLE
INSTALLATION for contractors

6.Easier to RECONFIGURE and
MAINTAIN

7.Easily RECYCLED and
REPURPOSED

2009 Floor Focus U.S. Top 250 Design Survey: Hot Products

Benefits of Modular

Source:Floor Focus

Modular Carpet is Moving from a Niche to a Category for
Commercial Flooring

Easy

Repairs

9

Long-Term Strategy Has Been to Focus on Organic Growth of
Modular Carpet

Sales by Business Type

Divested
Raised Access
Flooring

Divested
European
Fabrics

Divested

N. American

Fabrics

Divested

European

Broadloom

Divested
Installation &
Maintenance

Divested

Vinyl

Matting

Divested $500M in Revenue Base and

Replaced with Organic Modular Sales Growth

Secular Shift

40%

92%

10

Functionality and Design Create a Secular Shift in Modular
Carpet From a Niche to a Category

§Preferred interior design element

§“Becoming the Flooring of Choice”

§Random products merge design with function

§Sustainability drives recycled and repurposed
products

§Stressed the functionality of
modular carpet

§Exploited the benefits of
modular vs. broadloom

§Limited application and design

§Open office plans emerge

Pioneering Stage

Functionality Stage

Secular Shift

2009 Total U.S. Specified

Commercial Carpet Market = $2.3B

§Celebrating the square

§Sustainability introduced

§Pattern by tile

Liberation of Design

2020P Total U.S. Specified

Commercial Carpet Market = $3.3B

3%
CAGR

2009

38% Penetration

2020P

65% Penetration

Carpet Tile Share of U.S. Commercial Carpet Market

($ in millions)

What if modular
carpet reached
65% market share
of the commercial
market by 2020?

2004

26% Penetration

($ in millions)

Source:Invista, Floor Focus, Carpet and Rug Institute, Catalina Research Inc., U.S. Flooring Forecast and management estimates

Secular Shift

11

Carpet Tile Penetration of European Contract Soft Flooring Market

European Market Opportunity

(millions of square meters)

(Billions of square meters)

Significant

Opportunity

65%

Penetration

8%

44%

24%

42%

24%

30%

23%

Carpet Tile

Broadloom and Other Soft Flooring

Source:BMW Associates and management estimates

Secular Shift

23%

Total

Europe

12

Carpet Tile Penetration of the Asia-Pacific Contract Soft Flooring Market

Asia-Pacific Market Opportunity

(millions of square meters)

28%

($ in millions)

25%

Carpet Tile

Broadloom and Other Soft Flooring

Source:BMW Associates and management estimates

Secular Shift

65%

Penetration

13

Interface has a Significant Share of the Global Carpet Tile Market

Secular Shift

Americas

Europe & MEAI

Australia/NZ

Source:BMW Associates and management estimates

§Interface has significant market presence
in key major markets

§Interface has manufacturing, sales &
marketing support on four continents

14

Segmented Market Approach

Diversified End Use Markets

Growth

Platforms

15

Diversify End Use Markets

Current Portfolio

Growth

Platforms

Target Portfolio

Mature Office Market

Non-Office Commercial Segments

Emerging Markets

Consumer

16

Capture the Rebound in the Corporate Office Segment

Growth

Platforms

Modular Mature Corporate Office Sales

Excludes Latin America, Eastern Europe, Russia, Middle East, Africa, India and NE Asia

23%

28%

18%

5%

U.S. Office Construction Starts

§U.S. office construction is expected to
remain flat in 2010 and then rebound in
late 2011, returning to 2007 levels by the
end of 2012

($ in Billions)

Source:McGraw-Hill

17

Strong Growth from Non-Corporate Segments

Modular Non-Office Commercial Sales

15%

14%

4%

10%

Non-Office Commercial Sales by Segment

Growth

Platforms

18

New Segment Opportunities - Main Street Commercial

§Access to secondary Contract and Main
Street commercial markets in smaller rural
and suburban areas

§Broadened reach in primary markets
beyond specified market

§Exploring several strategies to expand
reach and distribution

Opportunity

Main Street Commercial Market

U.S. Commercial Carpet Market

($ in billions)

Main Street Commercial

Contract Commercial

$3.0B

Growth

Platforms

19

New Segment Opportunities -Transportation

§Single tile replace-ability

§Longer Life construction

§Highest standards of Smoke Toxicity with Nylon

§Lighter weight than current carpet options

§Quick replacement - no “out of service” time
required

§Recycled after use by manufacturer

Benefits of Modular for Transportation

$200M

Airline Opportunity

Southwest Airlines Green Plane

§Pilot project serving as a test for new
environmentally responsible materials

§InterfaceFLOR, in collaboration with Boeing,
designed a carpet tile to meet Federal Aviation
requirements and Southwest’s environmental
expectations

§First ever modular carpet product used for the
airline industry

Growth

Platforms

20

Invest in Emerging Markets

Growth

Platforms

Interface Target Emerging Markets

§Central America

§South America

§Eastern Europe

§Russia

§Middle East

§Africa

§India

§China

§Vietnam

§Cambodia

§Singapore

§Indonesia

§Philippines

Emerging Market Sales

38%

10%

31%

31%

21

Invest in Emerging Markets: Establishing Local Manufacturing
in High Growth China Market

Growth

Platforms

InterfaceFLOR Taicang Facility

§Targeting LEED Silver certification for Office and
Customer spaces

§Expect to begin production by third quarter 2010

§Greater access to Local customers -
reduced exposure to Multi-National
Corporations

§Improved service speed

§“Made in China”

§Leading with our strengths

-Design Flexibility & Responsiveness

-Local Sustainability Position

§Non-office segment opportunities in
Institutional and Hospitality

§Future opportunity to capitalize on
urbanization of population

Benefits of China Manufacturing Plant

22

FLOR is…

§ A new way to think about floor covering

§ A new kind of customer experience

§ A new way to design for your life

§ A new standard in sustainable residential
design

Grow a Consumer Brand: Modular Goes in the Home

Growth

Platforms

23

2010 catalog, online and in-store experiences bring the proposition to life for consumers

Grow a Consumer Brand: FLOR Connects Directly with
Consumers

Growth

Platforms

24

FLOR Sales by Channel

Grow a Consumer Brand: FLOR is Creating a Category:
“Modular Carpet for the Home”

%Direct Sales
Percent of Total

75%

77%

88%

90% of FLOR

sales are

generated Online
and via Catalog

90%

Growth

Platforms

25

Grow a Consumer Brand: FLOR Store Opened

§First store opened in Chicago in June 2009

§Opportunity to interact with the customer about
the modular concept, design and sustainability

§8x10 grid allowing visitors to bring design ideas
to life

§Exceeded budget in 2009

§Exploring opportunities for future stores

FLOR Store Highlights

Growth

Platforms

26

Global Manufacturing Capabilities and Local Distribution

City of

Industry,

California

Bangkok,
Thailand

Picton,
Australia

Current Manufacturing Facility

LaGrange,
Georgia

58% of Sales

51% of Production

30% of Sales

34% of Production

12% of Sales

15% of Production

Note: Figures represent FYE 2009

Value Drivers

Shanghai, China

Americas

Europe & MEAI

Asia-Pacific

Future Manufacturing Facility

Uruguay

(commissioned)

India

27

1.Increases speed to market

2.Promotes innovation

3.Offers unique custom product capabilities

4.Supports a constant flow of new products

5.Offers sales force the opportunity to visit the
customer with new products

6.Decreases lead time to customers

7.Increases inventory turns

The Made-to-Order Advantage

Interface Modular Percentage Make-to-Order

Interface is the ONLY company with a “make-to-order” approach to the market

75% TARGET Level

Note: Figures represent FYE 2009

Value Drivers

Strong Competitive Advantage Through Make-to-Order Philosophy

28

Contract Magazine 2009 Brand Report

Value Drivers

Top Modular Carpet Brands

1.InterfaceFLOR

2.Shaw Contract Group

3.Lees Carpets

4.Milliken

5.Bentley Prince Street

5.Tandus

7.Patcraft Designweave

8.C&A

8.Mannington

10.J&J/Invision

Top-ranked Modular Carpet brands for 2009

Source: Contract Magazine 10th Annual Brand Report

Market Leader in Product Design and Fashion

29

Corporate Office

Value Drivers

30

Retail

Value Drivers

31

Colleges & Universities

Value Drivers

32

K-12 Education

Value Drivers

33

Healthcare

Value Drivers

34

Government & Public Spaces

Value Drivers

35

Hospitality

Value Drivers

36

Interface is the Recognized Leader in Sustainability

GlobeScan Corporate Sustainability Leaders 2009

Floor Focus Green Leaders 2009

Unprompted, Combined Mentions 2009

Value Drivers

Source: 2009 Floor Focus Top 250 Design Survey (U.S. Market)

Interface received

“Green Kudos”

for Sustainable
Products with good
Design options and
Closed Loop
Processes

Source: The Sustainability Survey from GlobeScan

37

Sustainability Inspires Innovation

Value Drivers

§i2 Design Platform - biomimicry inspired
random carpet tile patent

§TacTiles - - no glue installation

§Cool Blue - 100% recycled backing process

§Cool Carpet - climate neutral product

§ReEntry 2.0 - carpet reclamation and
recycling program

§Convert - - post-consumer recycled content
product platform

§Southwest Green Plane - pilot project
testing new environmentally responsible
materials for airplanes

Sustainability-Focused Innovation

Cool Blue™

Greenbuild 2009

i2 Products

38

ReEntry 2.0 Brings Convert Product Platform

Value Drivers

§Reclaiming both Interface and competitor carpet tile
and broadloom, sorting & separating

§Access to recycled N6 and N6,6 face fiber, boosting
post consumer recycled content in our products

§Diverted 200 million pounds of materials from
landfills from 1995-2009

ReEntry - - Cumulative Carpet Diverted from Landfill

200m pounds of

carpet diverted

(millions of lbs)

Benefits of TacTiles

§Patented No Glue / No VOCs installation system

§25% of current orders include TacTiles

§High margin product

§Leading to other new innovations - Moisture Guard
2.0 moisture vapor barrier

§Integrating TacTiles into Design - designing
installation patterns that drive TacTile demand

Interface, Inc. Financials

40

Consolidated Financial Results

Net Sales and Adjusted Operating Income

(Continuing Operations)*

* See the Appendix for a reconciliation of Adjusted Operating Income from Continuing Operations

($ in millions)

41

Quarterly Results

Q4 Comparison*

* See the Appendix for a reconciliation of adjusted figures

($ in millions)

42

Interface Financial Results from Continuing Operations

Net Sales

Gross Profit

($ in millions)

($ in millions)

43

Interface Financial Results from Continuing Operations

SG&A Expense

Adjusted Operating Income*

($ in millions)

($ in millions)

(1) Reported Operating Income of $57.1M in 2009 excludes Income from Litigation Settlements of $5.9M

* See the Appendix for a reconciliation of Adjusted Operating Income

Reported Operating Income

Restructuring Charges

Loss on Disposal ($1.9m)

Operating Income % of Net Sales

Goodwill Impairment

$113.8

$64.7

(1)

44

Interface Financial Results from Continuing Operations

Adjusted Diluted Earnings Per Share (Continuing Operations)*

* See the Appendix for a reconciliation of Adjusted Diluted Earnings Per Share from Continuing Operations

45

Key Leverage Statistics

Ending Cash Balance

Net Debt*

* See the Appendix for a reconciliation of Net Debt and Adjusted EBITDA

46

Appendix: Reconciliation of Non-GAAP Financial Measures