Note 14 - Supplemental Condensed Consolidating Guarantor Financial Statements

6 Months Ended

Jun. 30, 2013

Supplemental Guarantor Financial Statements [Abstract]

Supplemental Guarantor Financial Statements [Text Block]

NOTE 14 – SUPPLEMENTAL CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS

The Guarantor Subsidiaries, which consist of the Company’s principal domestic subsidiaries and are 100% owned by the Company, are guarantors of the Company’s 11.375% Senior Secured Notes due 2013 and its 7.625% Senior Notes due 2018. These guarantees are full and unconditional. The Supplemental Guarantor Financial Statements are presented herein pursuant to requirements of the Commission.

INTERFACE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2013

	GUARANTOR SUBSIDIARIES		NON-GUARANTOR SUBSIDIARIES		INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	165,446	$	116,756	$	0		$	(38,719	)	$	243,483
Cost of sales		118,083		77,886		0			(38,719	)		157,250
Gross profit on sales		47,363		38,870		0			0			86,233
Selling, general and administrative expenses		27,752		29,142		7,536			0			64,430
Operating income (loss)		19,611		9,728		(7,536	)		0			21,803
Interest/Other expense		7,883		1,985		(3,963	)		0			5,905
Income before taxes on income and equity in income of subsidiaries		11,728		7,743		(3,573	)		0			15,898
Income tax expense		3,639		2,403		(1,109	)		0			4,933
Equity in income (loss) of subsidiaries		0		0		13,429			(13,429	)		0
Net income (loss)	$	8,089	$	5,340	$	10,965		$	(13,429	)	$	10,965

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2013

	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES		INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	296,154	$	228,629	$	0		$	(70,931	)	$	453,852
Cost of sales		213,792		153,506		0			(70,931	)		296,367
Gross profit on sales		82,362		75,123		0			0			157,485
Selling, general and administrative expenses		50,449		55,234		16,005			0			121,688
Operating income (loss)		31,913		19,889		(16,005	)		0			35,797
Interest/Other expense		13,854		4,930		(6,314	)		0			12,470
Income (loss) before taxes on income and equity in income of subsidiaries		18,059		14,959		(9,691	)		0			23,327
Income tax expense		4,007		2,822		(1,464	)		0			5,365
Equity in income (loss) of subsidiaries		0		0		26,189			(26,189	)		0
Net income (loss)	$	14,052	$	12,137	$	17,962		$	(26,189	)	$	17,962

CONSOLIDATED STATEMENT OF COMPREHENSIVE

INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2013

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)		CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(In thousands)
Net Income (loss)	$	8,089		$	5,340		$	10,965	$	(13,429	)	$	10,965
Currency Translation Adjustment		(208	)		(6,610	)		52		0			(6,766	)
Pension Liability Adjustment		0			(391	)		73		0			(318	)
Comprehensive Income (Loss)	$	7,881		$	(1,661	)	$	11,090	$	(13,429	)	$	3,881

CONSOLIDATED STATEMENT OF COMPREHENSIVE

INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2013

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)		CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(In thousands)
Net Income (loss)	$	14,052		$	12,137		$	17,962	$	(26,189	)	$	17,962
Currency Translation Adjustment		(215	)		(12,924	)		214		0			(12,925	)
Pension Liability Adjustment		0			1,421			146		0			1,567
Comprehensive Income (Loss)	$	13,837		$	634		$	18,322	$	(26,189	)	$	6,604

CONDENSED CONSOLIDATING BALANCE SHEET

JUNE 30, 2013

	GUARANTOR SUBSIDIARIES			NON-GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,905		$	30,966		$	28,499		$	0		$	61,370
Accounts receivable		57,719			72,891			674			0			131,284
Inventories		72,391			85,339			0			0			157,730
Prepaids and deferred income taxes		5,679			32,824			14,607			0			53,110
Total current assets		137,694			222,020			43,780			0			403,494
Property and equipment less accumulated depreciation		82,218			99,161			3,068			0			184,447
Investment in subsidiaries		566,538			182,666			(107,973	)		(641,231	)		0
Goodwill		6,542			67,964			0			0			74,506
Other assets		1,916			9,115			104,690			0			115,721
	$	794,908		$	580,926		$	43,565		$	(641,231	)	$	778,168
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	50,697		$	71,578		$	26,367		$	0		$	148,642
Senior notes		0			0			275,000			0			275,000
Deferred income taxes		0			10,406			(3,449	)		0			6,957
Other		13			419			44,967			0			45,399
Total liabilities		50,710			82,403			342,885			0			475,998
Common stock		94,145			102,199			6,618			(196,344	)		6,618
Additional paid-in capital		249,302			12,525			369,838			(261,827	)		369,838
Retained earnings (deficit)		402,909			443,478			(665,420	)		(183,060	)		(2,093	)
Foreign currency translation adjustment		(2,158	)		(29,615	)		(6,496	)		0			(38,269	)
Pension liability		0			(30,064	)		(3,860	)		0			(33,924	)
	$	794,908		$	580,926		$	43,565		$	(641,231	)	$	778,168

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS

ENDED JUNE 30, 2013

	GUARANTOR SUBSIDIARIES			NON-GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net cash provided by (used in) operating activities	$	3,911		$	(14,112	)	$	1,910		$	(745	)	$	(9,036	)
Cash flows from investing activities:
Purchase of plant and equipment		(13,188	)		(20,569	)		(65	)		0			(33,822	)
Other		(435	)		(456	)		(682	)		0			(1,573	)
Cash received from insurance company		0			19,774			0			0			19,774
Net cash used for investing activities		(13,623	)		(1,251	)		(747	)		0			(15,621	)
Cash flows from financing activities:
Other		7,685			12,457			(20,887	)		745			0
Proceeds from issuance of common stock		0			0			1,256			0			1,256
Dividends paid		0			0			(3,309	)		0			(3,309	)
Net cash provided by (used for) financing activities		7,685			12,457			(22,940	)		745			(2,053	)
Effect of exchange rate change on cash		0			(2,453	)		0			0			(2,453	)
Net increase (decrease) in cash		(2,027	)		(5,359	)		(21,777	)		0			(29,163	)
Cash at beginning of period		3,932			36,325			50,276			0			90,533
Cash at end of period	$	1,905		$	30,966		$	28,499		$	0		$	61,370