Interface LVT Business Projected to Boost Sales to $20 Million for FY 2017

Richmond, VA, July 28, 2016-According to a recent Stifel newsletter, John Baugh reports, Interface's organic sales are up 4% and organic orders up 6%. The orders were split between the company’s carpet tile business and the new LVT business. The company believes the new LVT business can achieve $20-$25 million sales in 2017 and reach $50 million next year. As with most companies this quarter, cost inflation is affecting the gross margin line, but the company is controlling operating expenses to limit the decline on operating margin. We are basically keeping the rest of the year estimates intact based on management’s unchanged guidance. We maintain our Hold rating but raise our target price to $21 as orders have clearly improved.