Interface Reports Lower Income, Sales

Atlanta, GA, July 25, 2012 -- Interface reported that net income in the second quarter was $10.3 million, or $0.16 per share, compared with net income of $12.8 million, or $0.20 per share, a year ago.

Sales for the quarter were $254.6 million, down from $267.6 million in the second quarter last year, a decline of 4.9%.

Approximately 3% of the sales decrease was related to fluctuations in currency exchange rates relative to the year ago period, Interface said.

"The best news of the quarter was the resurgence of our Americas modular business, as it turned in record second quarter sales and significantly improved its profitability on a sequential basis versus the first quarter," said CEO Daniel T. Hendrix.

"We experienced strong demand across many of the commercial segments we serve in the U.S., and we saw continued growth within our Flor consumer business, due both to new store openings and same-store growth.

"Sales in our Europe modular business were down only 2% year-over-year in local currencies in a tough operating environment, but the negative currency impact resulted in a steeper decline of 13% year-over-year as reported in U.S. dollars.

For the first six months of 2012, sales were $487.4 million, compared with $513.0 million for the same period a year ago, a decline of 5.0%.

Hendrix said that strong demand trends in U.S. commercial markets have continued, and Interface will continue to expand its Flor business, with plans to add another seven stores by the end of September.