EX-99.2 4 exh99_2.htm exh99_2.htm


INTERFACE, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
 
AS OF JULY 1, 2012

   
HISTORICAL
INTERFACE
    
BENTLEY
PRINCE
STREET
SEGMENT
    
PRO FORMA ADJUSTMENTS
          
PRO FORMA INTERFACE
  
   
(in thousands)
  
ASSETS
                              
Cash and Cash Equivalents
   $ 36,878     $ 11     $ 33,686     a     $ 70,553  
Accounts Receivable, Net
     141,132       13,297       --               127,835  
Inventories
     173,684       28,872       --               144,812  
Deferred Income Taxes
     10,442       --       --               10,442  
Prepaid Expenses and Other Current Assets
      25,578       3,093       --                22,485  
Total Current Assets
     387,714       45,273       33,686               376,127  
Property and Equipment, Net
     190,652       12,042       --               178,610  
Deferred Tax Asset
     46,419       1,144       --               45,275  
Goodwill
     72,132       --       --               72,132  
Other Assets
     54,653       794        --               53,859  
Total Assets
   $ 751,570     $ 59,253     $ 33,686             $ 726,003  
                                         
LIABILITIES
                                        
Accounts Payable
   $ 56,891     $ 5,065     $ --             $ 51,826  
Accrued Expenses
     85,072        3,261       8,304     b        90,115  
Total Current Liabilities
     141,963       8,326       8,304               141,941  
                                         
Senior and Senior Subordinated Notes
     283,070       --       --               283,070  
Deferred Income Taxes
     8,485       --       --               8,485  
Other
     37,188       1,406       --               35,782  
Total Liabilities
      470,706       9,732       8,304               469,278  
Total Shareholders Equity
     280,864       49,521       25,382     c       256,725  
Total Liabilities and Equity
   $ 751,570     $ 59,253     $ 33,686             $ 726,003  
                                         

a
Represents cash received at closing of the sale of the Bentley Prince Street business segment.  The amount includes the parties’ estimate of working capital adjustments, as provided in the Stock Purchase Agreement, which is subject to post-closing confirmation.

b
Represents the accrual for estimated costs incurred in connection with or as a result of the sale of the Bentley Prince Street business segment.

c
Represents the aggregation of the above adjustments.



 
 
 


INTERFACE, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT

FISCAL YEAR ENDED JANUARY 3, 2010

   
HISTORICAL
INTERFACE
    
BENTLEY
PRINCE
STREET
SEGMENT
    
PRO FORMA ADJUSTMENTS
          
PRO FORMA INTERFACE
  
   
(in thousands except per share amounts)
  
                               
Net sales
   $ 859,888       94,624       --           $ 765,264  
Cost of sales
     576,871       77,793       --             499,078  
Gross profit on sales
     283,017       16,831       --             266,186  
Selling, general and administrative expenses
     218,322       23,787       3,101    a       197,636  
Income from litigation settlements
     (5,926 )     --       --               (5,926 )
Restructuring and asset impairment charges
     7,627       762       --               6,865  
Operating income (loss)
     62,994       (7,718 )     (3,101 )             67,611  
Other expenses
                                        
Interest expenses
     34,297       (43 )     --               34,340  
Bond retirement expense
     6,096       --       --               6,096  
Other expense (income)
     576       201       --               375  
                                         
Income (loss) from continuing operations before income tax/ benefit
     22,025       (7,876 )     (3,101 )             26,800  
Income tax expense (benefit)
     9,352       (2,757 )     (1,085 )             11,023  
Net income (loss) from continuing operations
   $ 12,673     $ (5,119 )   $ (2,016 )           $ 15,777  
                                         
Income (loss) from continuing operations per share attributable to Interface, Inc. common shareholders – basic:
   $ 0.19     $ (0.08 )   $ (0.03 )           $ 0.24  
                                         
Income (loss) from continuing operations per share attributable to Interface, Inc. common shareholders – diluted:
   $ 0.19     $ (0.08 )   $ (0.03 )           $ 0.24  
                                         
Common shares outstanding
                                        
Basic
     63,213       63,213       63,213               63,213  
Diluted
     63,308       63,308       63,308               63,308  
                                         

a
This adjustment represents the amount of allocated overhead to the Bentley Prince Street segment for the period presented that the Company does not expect would be eliminated due to the sale.  This unallocated overhead is shown as an adjustment to pro forma selling, general and administrative expenses to represent the selling, general and administrative expense of the pro forma Interface company after the sale of the Bentley Prince Street segment.


 
 
 


INTERFACE, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT

FISCAL YEAR ENDED JANUARY 2, 2011

   
HISTORICAL
INTERFACE
    
BENTLEY
PRINCE
STREET
SEGMENT
    
PRO FORMA ADJUSTMENTS
          
PRO FORMA INTERFACE
  
   
(in thousands except per share amounts)
  
Net sales
   $ 961,827       99,513       --           $ 862,314  
Cost of sales
     625,066       75,882       --             549,184  
Gross profit on sales
     336,761       23,631       --             313,130  
Selling, general and administrative expenses
     240,901       26,658       2,837       a       217,080  
Income from litigation settlements
     --       --       --               --  
Restructuring and asset impairment charges
     3,131       188       --               2,943  
Operating income (loss)
     92,729       (3,215 )     (2,837 )             93,107  
Other expenses
                                        
Interest expenses
     33,129       (104 )     --               33,233  
Bond retirement expense
     44,379       --       --               44,379  
Other expense (income)
     657       75       --               582  
                                         
Income (loss) from continuing operations before income tax/ benefit
     14,564       (3,186 )     (2,837 )             14,913  
Income tax expense (benefit)
     4,494       (1,115 )     (993 )             4,616  
Net income (loss) from continuing operations
   $ 10,070     $ (2,071 )   $ (1,844 )           $ 10,297  
                                         
Income (loss) from continuing operations per share attributable to Interface, Inc. common shareholders – basic:
   $ 0.14     $ (0.03 )   $ (0.03 )           $ 0.14  
                                         
Income (loss) from continuing operations per share attributable to Interface, Inc. common shareholders – diluted:
   $ 0.14     $ (0.03 )   $ (0.03 )           $ 0.14  
                                         
Common shares outstanding
                                        
Basic
     63,794       63,794       63,794               63,794  
Diluted
     64,262       64,262       64,262               64,262  
                                         

a
This adjustment represents the amount of allocated overhead to the Bentley Prince Street segment for the period presented that the Company does not expect would be eliminated due to the sale.  This unallocated overhead is shown as an adjustment to pro forma selling, general and administrative expenses to represent the selling, general and administrative expense of the pro forma Interface company after the sale of the Bentley Prince Street segment.



 
 
 


INTERFACE, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT

FISCAL YEAR ENDED JANUARY 1, 2012

   
HISTORICAL
INTERFACE
    
BENTLEY
PRINCE
STREET
SEGMENT
    
PRO FORMA ADJUSTMENTS
          
PRO FORMA INTERFACE
  
   
(in thousands except per share amounts)
  
Net sales
   $ 1,057,051       104,006       --           $ 953,045  
Cost of sales
     694,999       76,696       --             618,303  
Gross profit on sales
     362,052       27,310       --             334,742  
Selling, general and administrative expenses
     268,612       28,485       3,160       a       243,287  
Income from litigation settlements
     --       --       --               --  
Restructuring and asset impairment charges
     6,177       422       --               5,755  
Operating income (loss)
     87,263       (1,597 )     (3,160 )             85,700  
Other expenses
                                        
Interest expenses
     26,216       (109 )     --               26,325  
Bond retirement expense
     --       --       --               --  
Other expense (income)
     434       (31 )     --               465  
                                         
Income (loss) from continuing operations before income tax/ benefit
     60,613       (1,457 )     (3,160 )             58,910  
Income tax expense (benefit)
     21,237       (510 )     (1,106 )             20,640  
Net income (loss) from continuing operations
   $ 39,376     $ (947 )   $ (2,054 )           $ 38,270  
                                         
Income (loss) from continuing operations per share attributable to Interface, Inc. common shareholders – basic:
   $ 0.60     $ (0.01 )   $ (0.03 )           $ 0.59  
                                         
Income (loss) from continuing operations per share attributable to Interface, Inc. common shareholders – diluted:
   $ 0.60     $ (0.01 )   $ (0.03 )           $ 0.58  
                                         
Common shares outstanding
                                        
Basic
     65,291       65,291       65,291               65,291  
Diluted
     65,486       65,486       65,486               65,486  
                                         

a
This adjustment represents the amount of allocated overhead to the Bentley Prince Street segment for the period presented that the Company does not expect would be eliminated due to the sale.  This unallocated overhead is shown as an adjustment to pro forma selling, general and administrative expenses to represent the selling, general and administrative expense of the pro forma Interface company after the sale of the Bentley Prince Street segment.


 
 
 


INTERFACE, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT

SIX MONTHS ENDED JULY 1, 2012

   
HISTORICAL
INTERFACE
    
BENTLEY
PRINCE
STREET
SEGMENT
    
PRO FORMA ADJUSTMENTS
          
PRO FORMA INTERFACE
  
   
(in thousands except per share amounts)
  
Net sales
   $ 487,367       47,805       --           $ 439,562  
Cost of sales
     326,569       36,227       --             290,342  
Gross profit on sales
     160,798       11,578       --             149,220  
Selling, general and administrative expenses
     121,930       13,374       1,565       a       110,121  
Income from litigation settlements
     --       --       --               --  
Restructuring and asset impairment charges
     16,316       --       --               16,316  
Operating income (loss)
     22,552       (1,796 )     (1,565 )             22,783  
Other expenses
                                        
Interest expenses
     12,792       (10 )     --               12,802  
Bond retirement expense
     --       --       --               --  
Other expense (income)
     711       23       --               688  
                                         
Income (loss) from continuing operations before income tax/ benefit
     9,049       (1,809 )     (1,565 )             9,293  
Income tax expense (benefit)
     4,725       (633 )     (548 )             4,810  
Net income (loss) from continuing operations
   $ 4,324     $ (1,176 )   $ (1,017 )           $ 4,483  
                                         
Income (loss) from continuing operations per share attributable to Interface, Inc. common shareholders – basic:
   $ 0.07     $ (0.02 )   $ (0.02 )           $ 0.07  
                                         
Income (loss) from continuing operations per share attributable to Interface, Inc. common shareholders – diluted:
   $ 0.07     $ (0.02 )   $ (0.02 )           $ 0.07  
                                         
Common shares outstanding
                                        
Basic
     65,701       65,701       65,701               65,701  
Diluted
     65,868       65,868       65,868               65,868  
                                         

a
This adjustment represents the amount of allocated overhead to the Bentley Prince Street segment for the period presented that the Company does not expect would be eliminated due to the sale.  This unallocated overhead is shown as an adjustment to pro forma selling, general and administrative expenses to represent the selling, general and administrative expense of the pro forma Interface company after the sale of the Bentley Prince Street segment.