Net Sales: $344.3 million, an increase of 11% versus Q3 2023.
FX Neutral Net Sales in the Americas: Up 18% year over year.
Adjusted Gross Profit Margin: 37.5%, an increase of 158 basis points.
Adjusted G&A Expenses: $85.5 million or 24.8% of net sales.
Adjusted Operating Income: $43.5 million, up 34% from the previous year.
Adjusted EPS: 48 versus 28 in Q3 last year.
Adjusted EBITDA: $53.7 million versus $43.7 million last year.
Cash from Operating Activities: $76.2 million in the third quarter.
Debt Repayment: $51.3 million repaid in the third quarter.
Liquidity: $415 million at quarter end.
Net Leverage Ratio: 1.1 times.
Capital Expenditures: $6.5 million in Q3 2024.
Full Year Net Sales Outlook: $1.315 billion to $1.325 billion.
Full Year Adjusted Gross Profit Margin Outlook: Approximately 36.6%.
Full Year Adjusted SG&A Expenses Outlook: Approximately $345 million.
Full Year Adjusted Effective Tax Rate Outlook: Approximately 25%.
Full Year Capital Expenditures Outlook: Approximately $37 million.
Release Date: November 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Interface Inc (NASDAQ:TILE) reported a strong third quarter with an 11% increase in net sales compared to the same period last year.
The company’s ‘One Interface’ strategy is yielding positive results, particularly in the Americas, where currency-neutral net sales grew by 18%.
Interface Inc (NASDAQ:TILE) is experiencing significant growth in the education sector, with global education billings up 18% year over year.
The company has made notable progress in sustainability, receiving recognition from Reuters and Newsweek for its efforts in carbon reduction and environmental sustainability.
Interface Inc (NASDAQ:TILE) has a strong financial position, with $415 million in liquidity and a net leverage ratio of 1.1 times, allowing for continued investment in growth and automation.
Net sales in the Asia and Australia regions were down, with Australia experiencing a 9% decline year over year.
Healthcare billings were soft in the third quarter, although there was strong order growth, indicating potential future revenue but current underperformance.
The retail segment, while recovering, is still a small part of overall net sales and can be subject to unplanned deferrals.
The company faces challenges in maintaining gross profit margins due to non-recurring benefits in the previous year’s fourth quarter.
Interface Inc (NASDAQ:TILE) must continue to manage SG&A expenses efficiently to support revenue growth without significantly increasing costs.
