Atlanta, GA, Apr. 28--Interface, Inc., a worldwide interiors products and services company, today announced first quarter results for the 14-week period ended April 4, 2004.
Sales in the first quarter 2004 were $249.2 million, compared with $210.2 million in the first quarter 2003, which was a 13-week period. Operating income was $9.5 million in the first quarter 2004, versus an operating loss of $3.4 million in the first quarter 2003 (after a pre-tax restructuring charge of $2.1 million in that period). Net loss for the first quarter 2004 was $3.0 million, or $0.06 per share, compared with a first quarter 2003 net loss of $10.4 million, or $0.21 per share. In the first quarter 2004, the company expensed the equivalent of $0.02 per share of costs associated with its previously-announced bond issuance, while the net loss for the comparable 2003 period included a $0.03 per share loss from discontinued operations.
Order activity also was strong during the first quarter 2004, up 19% to $273 million, compared with the first quarter of last year.
"Our results for the first quarter of 2004 were indicative of several positive trends in our business and in the industry environment as a whole. This was the fourth straight quarter in which we realized both sequential and year-over-year improvements in sales," said Daniel T. Hendrix, President and Chief Executive Officer. "First quarter revenues increased versus the same period last year in each of our market segments, which leads us to believe that we're gaining market share and that our industry is beginning to recover. We were particularly encouraged by continued improvement in the corporate office segment, which has been sluggish for most of the past three years."
Hendrix continued, "We are pleased by the progress that our fabrics business made during the quarter. This business returned to operating profitability in the first quarter, largely as a result of the success of our restructuring initiatives. In addition, our broadloom business benefited from the recovery in the corporate office market and our market segmentation strategy, as both sales and volume grew significantly year-over-year during the quarter."
Patrick C. Lynch, Vice President and Chief Financial Officer, commented, "Inventory levels rose during the first quarter, primarily due to increased order activity and seasonal raw materials purchasing. However, we will continue our focus on supply chain initiatives and our efforts to reduce working capital requirements. Our selling, general and administrative expenses also increased in line with our growth in sales, and were further negatively impacted by currency fluctuations during the quarter."
Hendrix concluded, "We are encouraged to have made a strong start to fiscal 2004. In the first quarter, we took some important steps toward strengthening our operations and preparing our business for further improvements, and we look forward to realizing continued growth throughout the remainder of the year. However, neither our Company nor the industry as a whole has fully recovered from the recent downturn, and we will be making every effort in the coming quarters to control costs, take market share and realize the full potential of our strategic initiatives."
