Interface's Sales Rose 12% in Q3, Income Up 86%
Atlanta, GA, November 5, 2021-Interface reported Q3 net sales of $312.7 million, up 12% versus $278.6 million in the prior year period. The strong sales activity resulted from a release of pent-up demand and an ensuing commercial market recovery.
The company recorded net income of $11.0 million in Q3 2021, an 86% increase compared to Q3 2020 net income of $5.9 million.
Net sales for the first nine months of 2021 were $860.8 million, a 4.2% increase versus $826.3 million in the prior year period.
For the Americas segment, Q3 2021 net sales were $176.8 million, up 23.7% versus $142.9 million in the prior year period, primarily due to the recovering commercial market, and Q3 2021 orders were up 34% compared to the prior year period.
The company recorded net income of $33.4 million in the first nine months of 2021, compared to the first nine months of 2020 net loss of $91.5 million.
For the Americas segment, net sales for the first nine months of 2021 were $460.4 million, up 1.8% versus $452.2 million in the prior year period. The prior year period included 40 weeks of net sales, and a strong pre-pandemic first quarter, versus the current year period that includes 39 weeks of net sales and a recovering commercial market.
"We delivered solid results this quarter, growing sales 12% year over year, while generating $29 million of cash from operating activities and paying down debt to reach pre-pandemic leverage. Order momentum continued, increasing 24% year over year, reflecting a 34% increase in the Americas region and a 12% increase in our EAAA region. Demand for our carbon neutral and carbon negative products continues to build, and we are proud to announce that we have transitioned our European carpet tile backing entirely to CQuestBio, removing petroleum-based bitumen in favor of bio-based materials and recycled fillers," said Dan Hendrix, Chairman and CEO of Interface. "We continue to take great strides on our Climate Take Back journey. Last month, we also announced that we are the first global flooring company to receive third-party validation of our 2030 greenhouse gas (GHG) reduction targets as science-based by the Science Based Targets initiative (SBTi). These now validated science-based targets (SBT) commit Interface to further reduce our Scopes 1, 2 and 3 emissions in alignment with our goal of becoming a carbon negative company by 2040."