Interface Reports Net Loss for First Quarter

Atlanta, GA, April 29, 2009--Interface, Inc. reported a net loss for the first quarter of $4.2 million, or $0.07 per share, compared with net income in the year ago period of $14.1 million, or $0.22 per share.

Sales for the quarter were $199.3 million, compared with sales of $261.7 million in the first quarter of 2008, a decline of 23.9%.

Approximately 9% of the sales decline was related to fluctuations in currency exchange rates relative to the year ago period, the company said.

Excluding restructuring charge of $5.7 million, operating income for the quarter was $8.8 million, or 4.4% of sales, compared with operating income of $31.0 million, or 11.8% of sales, in the first quarter last year.

Including the charge, operating income in the 2009 first quarter was $3.1 million, or 1.5% of sales.

"Historically, the first quarter is our seasonally slowest period, and this year market conditions were even more challenging due to the global economic recession," said CEO Daniel T. Hendrix.

"We did see initial signs of stabilization by the end of the quarter, as our consolidated order trend settled at an approximate 25% decline versus the prior year, and our backlog increased $8 million versus the beginning of the year. These factors, which have continued into the second quarter, encourage us to believe that we may be seeing the bottom of the cycle."

Overall, the corporate office segment saw the largest sales decline in the quarter, while geographically the emerging markets and the U.K. were the hardest hit.