Interface Sales Up Nearly 15% in Q4

Atlanta, GA, Feb. 23, 2011 -- Interface reported a fourth quarter net loss of $13.3 million, or $0.21 per share, largely due to unusual expenses, as sales rose nearly 15% from the previous year.

Last year Interface had net income of $5.9 million, or $0.09 per share, in the fourth quarter.

Sales for the fourth quarter of 2010 were $265.3 million, compared with sales of $230.9 million a year ago, an increase of 14.9%.

Fourth quarter operating income improved 46.4% to $29.5 million, or 11.1% of sales, compared with operating income of $20.1 million, or 8.7% of sales, in the prior year period.

"The fourth quarter went very well for us in a number of key strategic areas," said CEO Daniel T. Hendrix.

"Emerging market sales really began to accelerate, as both multinational and local investment ramped back up in those regions, particularly in India, China, Latin America and Russia. At the same time, we continued to benefit from the corporate office rebound in mature markets such as the United States, Australia and the United Kingdom, and I believe there is still a lot of pent up demand yet to be released. We also continued to drive penetration of carpet tile into non-office commercial segments, with the biggest percentage gains coming in hospitality, retail and education.

"In addition, Bentley Prince Street experienced solid sales growth as its carpet tile business continued to expand, now representing about 40% of its business, while broadloom sales held steady."

For the full year 2010, sales were $961.8 million compared with $859.9 million in 2009, an increase of 11.9%.

Including all special items, net income for the year was $8.3 million, or $0.13 per share, compared with net income of $10.9 million, or $0.17 per diluted share, in 2009.

"From an execution standpoint, 2010 was one of Interface's best years, as we expanded our business and gained market share in a very challenging environment," Hendrix said.