Interface Reports Fourth Quarter Loss on Charges

Atlanta, GA, Feb. 25, 2009--Interface, Inc. reported a fourth quarter 2008 net loss of $79.3 million, or $1.29 per share.

Excluding special charges, net income was $6.0 million, or $0.10 per share.

Sales for the fourth quarter of 2008 were $247.2 million, compared with sales of $293.3 million in the fourth quarter of 2007, a decline of 15.7%.

"The results for the 2008 fourth quarter reflect the global economic downturn which impacted our business in almost every geographic area," said CEO Daniel T. Hendrix.

"While we started out with a decent October, our markets rapidly declined in November and December."

Interface also said that it has adopted a new restructuring plan that primarily consists of a further reduction in its worldwide employee base by a total of approximately 290 employees and continuing actions taken to better align fixed costs with demand for its products.

For the full year of 2008, sales were $1.1 billion, essentially even with year ago levels.

The company reported a net loss of $40.9 million, or $0.67 per share, for the full year 2008, compared with a full year 2007 net loss of $10.8 million, or $0.18 per share. The net loss in 2008 includes special charges and a loss from discontinued operations of $5.2 million, while the net loss in 2007 includes a loss from discontinued operations of $68.7 million.

Interface has also reduced its annual dividend to $0.01 per share.