Interface Posts Q4 & FY Results, Names Gould as CEO

Atlanta, GA, February 23, 2017—Interface announced net sales for the fourth quarter 2016 were $239.5 million, down 2.9% compared with sales of $246.6 million in the fourth quarter of 2015.

Net income for the fourth quarter of 2016 was $4.7 million, or $0.07 per share, including the $19.8 million restructuring and asset impairment charge, compared with net income of $18.3 million, or $0.28 per share, in the fourth quarter of 2015. Without the charge, fourth quarter 2016 net income was $17.8 million, or $0.28 per share.

The sales decline occurred primarily in Europe, where sales were down 9.0% due to Brexit impacts, while sales in the Americas and Asia-Pacific regions remained essentially even year over year.

Sales in the Americas region were down 1.0%, with declines in the U.S. (down 2%) and Canada (down 13%) being mostly offset by gains in Latin America (up 28%) and the InterfaceServices business (up 6%).

The corporate office segment was down 1% year over year. Among non-office segments, a gain in education (up 14%) was more than offset by declines in retail (down 9%), healthcare (down 7%) and government (down 5%). FLOR sales were down 6% year over year.

For the fiscal year, net sales in 2016 were $958.6 million, down 4.3% from $1.0 billion in 2015.

Including the fourth quarter restructuring and asset impairment charge, the company reported net income of $54.2 million, or $0.83 per share, for fiscal year 2016. Excluding the charge, 2016 net income was $67.3 million, or $1.03 per share, compared with net income of $72.4 million, or $1.10 per share, in 2015.

In addiition, Interface has announced that Jay D. Gould, president and chief operating officer, has been appointed chief executive officer, effective March 3.

Gould succeeds Daniel T. Hendrix, who served as CEO for nearly 16 years. Hendrix will continue his involvement with the company remaining as chairman of the board of directors.

Gould is primed to lead the organization into its next phase of growth, having worked alongside Hendrix for the past two years overseeing global operations, marketing, and organizational development. Gould was a key driver of the company's recent expansion beyond carpet tile into modular resilient flooring, with its debut luxury vinyl tile offering coming to market in 2017.

Under Hendrix's leadership, Interface secured its position as the leading global manufacturer of modular carpet, as well as a trailblazer in sustainability through its commitment to Mission Zero. Hendrix successfully drove the company's business by focusing on Interface's core carpet tile business and diversifying its market segmentation through expansion into the education, hospitality, healthcare, retail and institutional spaces. Hendrix will continue to bring his industry expertise and counsel to bear as chairman of the board.

Prior to joining Interface in 2015, Gould served as CEO of American Standard Brands, where he re-energized the 138-year-old brand and led a financial turnaround including top-line growth, cost cutting, and innovation leadership. In Gould's 20 years of experience, he also helped globalize brands such as Minute Maid, Dasani, Graco and Rubbermaid.

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