Georgia
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001-33994
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58-1451243
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||
(State or other Jurisdiction of Incorporation or Organization)
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(Commission File
Number)
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(IRS Employer
Identification No.)
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2859 Paces Ferry Road, Suite 2000
Atlanta, Georgia
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30339
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(Address of principal executive offices)
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(Zip code)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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99.1
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Press Release of Interface, Inc., dated July 29, 2015, reporting its financial results for the second quarter of 2015 (furnished pursuant to Item 2.02 of this Report).
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INTERFACE, INC.
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By:
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/s/ Patrick C. Lynch
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Patrick C. Lynch
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Senior Vice President
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Date: July 29, 2015
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Exhibit No.
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Description
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99.1
|
Press Release of Interface, Inc., dated July 29, 2015, reporting its financial results for the second quarter of 2015 (furnished pursuant to Item 2.02 of this Report).
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CONTACT:
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Daniel T. Hendrix
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Chairman and Chief Executive Officer
|
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Patrick C. Lynch
|
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Senior Vice President and Chief Financial Officer
|
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(770) 437-6800
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Bruce Brooks, Interface, Inc.
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(404) 543-3530, bruce.brooks@interface.com
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·
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Second quarter sales in our Americas business increased 9.5% on a currency neutral basis compared with the prior year period, led by the continued rebound of the corporate office market (up 12%), along with more modest gains in non-office segments (up 3% in the aggregate). Within the non-office segments, sales improvements in the education (up 9%), hospitality (up 55%) and government (up 4%) markets were partially offset by declines in the retail (down 12%) and healthcare (down 9%) segments. FLOR recorded its highest ever second quarter sales, up 3.9% compared with the second quarter last year, primarily due to improvements in web sales. Currency fluctuations negatively impacted 2015 second quarter sales in the Americas by approximately $3.9 million, resulting in a year over year gain of 7.0% in U.S. dollars.
|
·
|
In local currency, our Europe business had the highest growth rate, with sales up 15.7%, mainly due to strength in the U.K., Ireland and Germany. The increase in local currency was driven by the corporate office market (up 21%), partially offset by a modest decline in non-office segments (down 3% in the aggregate), mostly due to austerity measures within the government sector. Currency had a $15.7 million negative impact on our 2015 second quarter sales in Europe, resulting in a year over year decline of 6.6% in U.S. dollars.
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·
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Our sales in the Asia-Pacific region in the second quarter of 2015 were up 4.1% in local currency compared with the prior year period, led mainly by 14% growth in Australia and 6% growth in China, offsetting a 35% decline in Southeast Asia. In U.S. dollars, our Asia-Pacific sales in the second quarter of 2015 were down 6.2%, mostly due to a $4.2 million negative currency impact in Australia.
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Consolidated Condensed Statements of Operations
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Three Months Ended
|
Six Months Ended
|
||||||||||||||
(In thousands, except per share data)
|
7/5/15
|
6/29/14
|
7/5/15 |
6/29/14
|
||||||||||||
Net Sales
|
$
|
263,637
|
$
|
260,624
|
$
|
500,541
|
$
|
479,616
|
||||||||
Cost of Sales
|
162,385
|
170,239
|
313,857
|
314,545
|
||||||||||||
Gross Profit
|
101,252
|
90,385
|
186,684
|
165,071
|
||||||||||||
Selling, General & Administrative Expenses
|
68,033
|
66,042
|
132,065
|
128,701
|
||||||||||||
Operating Income
|
33,219
|
24,343
|
54,619
|
36,370
|
||||||||||||
Interest Expense
|
1,790
|
5,420
|
3,678
|
10,918
|
||||||||||||
Other Expense (Income)
|
(446
|
)
|
(128
|
)
|
826
|
(154
|
)
|
|||||||||
Income Before Taxes
|
31,875
|
19,051
|
50,115
|
25,606
|
||||||||||||
Income Tax Expense
|
10,153
|
5,980
|
16,071
|
8,510
|
||||||||||||
NET INCOME
|
$
|
21,722
|
$
|
13,071
|
$
|
34,044
|
$
|
17,096
|
||||||||
Earnings Per Share – Basic
|
$
|
0.33
|
$
|
0.20
|
$
|
0.51
|
$
|
0.26
|
||||||||
Earnings Per Share – Diluted
|
$
|
0.33
|
$
|
0.20
|
$
|
0.51
|
$
|
0.26
|
||||||||
Common Shares Outstanding – Basic
|
65,995
|
66,473
|
66,208
|
66,472
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||||||||||||
Common Shares Outstanding – Diluted
|
66,044
|
66,550
|
66,253
|
66,558
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||||||||||||
Orders from Continuing Operations
|
$
|
277,700
|
$
|
280,700
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$
|
537,200
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$
|
520,800
|
Consolidated Condensed Balance Sheets
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||||||||
(In thousands)
|
7/5/15
|
12/28/14
|
||||||
Assets
|
||||||||
Cash
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$
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71,821
|
$
|
54,896
|
||||
Accounts Receivable
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137,546
|
157,093
|
||||||
Inventory
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164,205
|
142,167
|
||||||
Other Current Assets
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31,606
|
30,512
|
||||||
Total Current Assets
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405,178
|
384,668
|
||||||
Property, Plant & Equipment
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216,681
|
227,347
|
||||||
Other Assets
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148,306
|
162,899
|
||||||
Total Assets
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$
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770,165
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$
|
774,914
|
||||
Liabilities
|
||||||||
Accounts Payable
|
$
|
56,273
|
$
|
49,464
|
||||
Accrued Liabilities
|
80,421
|
94,323
|
||||||
Current Portion of Long-Term Debt
|
7,500
|
--
|
||||||
Total Current Liabilities
|
144,194
|
143,787
|
||||||
Long-Term Debt
|
251,615
|
263,338
|
||||||
Other Long-Term Liabilities
|
58,457
|
61,150
|
||||||
Total Liabilities
|
454,266
|
468,275
|
||||||
Shareholders' Equity
|
315,899
|
306,639
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
770,165
|
$
|
774,914
|
Consolidated Condensed Statements of Cash Flows
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||||||||||
(In millions)
|
7/5/15
|
6/29/14
|
7/5/15
|
6/29/14
|
||||||||||||||||||||||||||||
Net Income
|
$
|
21.7
|
$
|
13.1
|
$
|
34.0
|
$
|
17.1
|
||||||||||||||||||||||||
Depreciation and Amortization
|
7.8
|
6.7
|
15.5
|
13.3
|
||||||||||||||||||||||||||||
Stock Compensation Amortization
|
4.6
|
0.5
|
9.1
|
2.7
|
||||||||||||||||||||||||||||
Deferred Income Taxes and Other Non-Cash Items
|
4.9
|
0.4
|
9.3
|
0.2
|
||||||||||||||||||||||||||||
Change in Working Capital
|
||||||||||||||||||||||||||||||||
Accounts Receivable
|
(14.7
|
)
|
(20.5
|
)
|
15.2
|
(12.4
|
)
|
|||||||||||||||||||||||||
Inventories
|
(4.8
|
)
|
(2.0
|
)
|
(27.1
|
)
|
(21.9
|
)
|
||||||||||||||||||||||||
Prepaids and Other Current Assets
|
2.7
|
(0.1
|
)
|
(2.3
|
)
|
(0.1
|
)
|
|||||||||||||||||||||||||
Accounts Payable and Accrued Expenses
|
6.5
|
5.3
|
(2.8
|
)
|
1.9
|
|||||||||||||||||||||||||||
Cash Provided from Operating Activities
|
28.7
|
3.4
|
50.9
|
0.8
|
||||||||||||||||||||||||||||
Cash Used in Investing Activities
|
(8.1
|
)
|
(13.7
|
)
|
(12.6
|
)
|
(23.7
|
)
|
||||||||||||||||||||||||
Cash Used in Financing Activities
|
(8.1
|
)
|
(2.4
|
)
|
(18.5
|
)
|
(0.2
|
)
|
||||||||||||||||||||||||
Effect of Exchange Rate Changes on Cash
|
0.2
|
0.2
|
(2.9
|
)
|
0.2
|
|||||||||||||||||||||||||||
Net Increase (Decrease) in Cash
|
$
|
12.7
|
$
|
(12.5
|
)
|
$
|
16.9
|
$
|
(22.9
|
)
|
Three Months Ended
7/5/15
|
||||
Net Sales with Foreign Currency Held Neutral
|
$
|
287.7
|
||
Impact of changes in foreign currency
|
24.1
|
|||
Net Sales As Reported
|
$
|
263.6
|
Six Months Ended
7/5/15
|
||||
Net Sales with Foreign Currency Held Neutral
|
$
|
543.8
|
||
Impact of changes in foreign currency
|
43.3
|
|||
Net Sales As Reported
|
$
|
500.5
|
Three Months Ended
7/5/15
|
||||
Operating Income with Foreign Currency Held Neutral
|
$
|
36.6
|
||
Impact of changes in foreign currency
|
3.4
|
|||
Operating Income As Reported
|
$
|
33.2
|
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