Interface Grew Sales and Earnings in Q3
Atlanta, GA, October 25, 2019-Interface has reported a Q3 net sales increase of 9% year over year (YOY). Organic sales were up 2% year-over-year driven by growth in LVT and the addition of Nora net sales to its organic sales calculation during the comparable period post-acquisition.
Net income for Q3 rose 221% YOY.
For the first nine months of the year, organic sales rose 2% YOY, and net earnings rose 30.2%.
"Our transformation from a carpet tile company to a commercial flooring company continues to create value for our shareholders. Through this transformation, we've diversified our product offerings, with resilient flooring now comprising 25% of our revenue volume. In the third quarter, we grew adjusted earnings per share 15% year over year while delivering strong margin improvement and efficiently managing SG&A expenses," says Jay Gould, CEO of Interface. "This quarter marked the one-year anniversary of the nora systems acquisition, which has contributed solid earnings per share, aligned with our commitment to shareholders. Despite a challenging demand environment, we remain on track to meet our previous full year 2019 outlook. LVT continues to perform strongly and drove organic growth in the quarter as we lapped a difficult comparable in carpet tile from the shipment of a large customer order in Q3 last year."
Gould continues, "Going forward, our robust product innovation is both increasing our opportunities with current customers and expanding our end market demand. We're excited about our new product launch of 3mm (>1/8th inch) LVT, which is going to market in the Americas and is developed specifically to meet customer needs in the healthcare, multifamily and tenant improvement segments. These lower price-point and higher-margin LVT offerings provide new cross-selling opportunities across our expanding product portfolio; particularly combining LVT and rubber in segments like healthcare. Additionally, we are capitalizing on strategic investment opportunities across our business and building on the momentum of our Carbon Neutral Floors™ program by accelerating approximately $10 million dollars in capital expenditures in order to scale our capabilities to manufacture carbon negative products which we are targeting to launch next year."