Interface Reports First Quarter Results

Atlanta, GA, April 26, 2012 -- Interface reported a first quarter net loss of $5.9 million, or $0.09 per share, compared to net income of $9.8 million in the same period a year ago.

Excluding restructuring charges related to the U.K., net income was $6.3 million, or $0.10 per share, compared to $9.8 million, or $0.15 per share, in the 2011 first quarter.

Net sales were $232.8 million, compared with sales of $245.4 million in the first quarter of 2011, a decline of 5.2%.

"Although sales and earnings were down against strong comparisons last year, we improved sequentially in key targeted areas, as we increased gross margin by 100 basis points and cut SG&A expenses by $6 million versus the fourth quarter of 2011," said CEO Daniel Hendrix.

We're also pleased that orders of $249 million outpaced sales, which is an indication of strengthening demand and resulted in a $13 million increase in backlog since the beginning of the year."

Interface said its modular businesses in the Americas and Europe remained relatively stable year-over-year and that its Flor consumer business continued to turn in strong results, with 41% sales growth and breaking even for the quarter.

"Looking ahead, we are encouraged by the positive order trend we have seen over the past nine weeks," Hendrix said.