Interface, Inc. (TILE) Bundle
A Brief History of Interface, Inc.
Interface, Inc. (NASDAQ: TILE) is a global commercial flooring company and a leader in sustainability, focusing on innovative flooring solutions. Established in 1973, Interface has consistently evolved its product offerings and operational strategies to meet the changing demands of the industry.
Recent Financial Performance (2024)
As of the third quarter of 2024, Interface reported significant financial growth. The company's third quarter net sales reached $344.3 million, representing a 10.7% increase compared to $311.0 million in the same period of the previous year. The gross profit margin improved to 37.1%, up 162 basis points year-over-year. Adjusted gross profit margin was reported at 37.5%.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $344.3 million | $311.0 million |
| Gross Profit Margin | 37.1% | 35.5% |
| Operating Income | $42.2 million | $31.0 million |
| Net Income | $28.4 million | $9.9 million |
| EPS (Diluted) | $0.48 | $0.17 |
Year-to-Date Financial Summary (2024)
For the first nine months of 2024, Interface reported net sales of $980.6 million, a 4.7% increase from $936.4 million in the same period of 2023. The gross profit margin stood at 36.8%, reflecting a 282 basis points improvement. The company’s adjusted EBITDA for the first nine months was $142.9 million, compared to $109.8 million in the previous year.
| Metric | First Nine Months 2024 | First Nine Months 2023 |
|---|---|---|
| Net Sales | $980.6 million | $936.4 million |
| Gross Profit Margin | 36.8% | 34.0% |
| Operating Income | $104.8 million | $69.4 million |
| Net Income | $65.2 million | $25.0 million |
| EPS (Diluted) | $1.11 | $0.43 |
Debt and Cash Position
As of September 29, 2024, Interface reported total cash of $115.6 million and total debt of $337.9 million. This compares to $110.5 million in cash and $417.2 million in debt at the end of fiscal year 2023, indicating a reduction in debt levels and an improvement in cash reserves.
| Metric | As of September 29, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Cash | $115.6 million | $110.5 million |
| Total Debt | $337.9 million | $417.2 million |
| Net Debt | $222.3 million | $306.7 million |
Market Trends and Strategic Initiatives
Interface has been actively pursuing sustainability initiatives, solidifying its position as a leader in environmentally responsible flooring solutions. The company aims to achieve its science-based carbon reduction targets by 2030 and to become a carbon negative enterprise by 2040. These efforts are expected to enhance brand loyalty and expand market share in an increasingly eco-conscious consumer environment.
In the corporate segment, Interface has reported a 2% increase in global billings, while the education sector saw an 18% year-over-year growth in billings during Q3 2024. This reflects the effectiveness of the company's strategic focus on targeted markets.
Overall, Interface continues to leverage its innovative product lines and sustainability commitments to drive growth and profitability in the competitive flooring industry.
A Who Owns Interface, Inc. (TILE)
Major Shareholders as of 2024
As of the end of 2024, Interface, Inc. (TILE) has a diverse ownership structure, with institutional investors holding a significant portion of the company’s shares. The following table summarizes the major shareholders:
| Shareholder | Ownership Percentage | Shares Held | Type of Owner |
|---|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 6,153,000 | Institutional Investor |
| BlackRock, Inc. | 9.8% | 5,730,000 | Institutional Investor |
| Susan M. Hurd | 5.2% | 3,028,000 | Individual Investor |
| State Street Corporation | 4.7% | 2,740,000 | Institutional Investor |
| Dimensional Fund Advisors LP | 4.5% | 2,600,000 | Institutional Investor |
| Other Shareholders | 65.3% | 37,500,000 | Various |
Shareholder Distribution
The shareholder distribution reflects a mix of institutional and individual ownership. Institutional investors collectively hold approximately 35.5% of the company's shares, while individual investors and other stakeholders account for the remaining 65.3%.
Recent Stock Performance
As of November 1, 2024, Interface, Inc. has shown a strong stock performance, with the following financial metrics:
| Metric | Value |
|---|---|
| Current Share Price | $18.50 |
| Market Capitalization | $1.08 billion |
| 52-Week High | $20.00 |
| 52-Week Low | $14.50 |
| Year-to-Date Performance | +15.2% |
Financial Overview
For the first nine months of 2024, Interface, Inc. reported the following financial results:
| Financial Metric | Value |
|---|---|
| Net Sales | $980.6 million |
| Gross Profit Margin | 36.8% |
| Operating Income | $104.8 million |
| Net Income | $65.2 million |
| Earnings Per Share (EPS) | $1.11 |
Debt and Cash Position
As of September 29, 2024, Interface, Inc. reported the following regarding its debt and cash:
| Metric | Value |
|---|---|
| Total Debt | $337.9 million |
| Cash on Hand | $115.6 million |
| Net Debt | $222.3 million |
| Debt to Equity Ratio | 0.67 |
Conclusion
Interface, Inc. continues to maintain a robust ownership structure, characterized by substantial institutional investment and a solid financial performance in 2024.
Interface, Inc. (TILE) Mission Statement
Company Overview
Interface, Inc. (NASDAQ: TILE) is a global leader in flooring solutions, focusing on sustainability and innovative design. The company aims to become a carbon negative enterprise by 2040, emphasizing its commitment to environmental responsibility.
Mission Statement
Interface's mission statement is centered around sustainability, innovation, and customer satisfaction. The company is dedicated to offering high-quality flooring solutions that minimize environmental impact while enhancing the aesthetic appeal of interior spaces.
Financial Performance Overview
As of Q3 2024, Interface has reported significant financial growth:
| Metric | Q3 2024 | Q3 2023 | Year to Date 2024 | Year to Date 2023 |
|---|---|---|---|---|
| Net Sales | $344.3 million | $311.0 million | $980.6 million | $936.4 million |
| Gross Profit Margin | 37.1% | 35.5% | 36.8% | 34.0% |
| Operating Income | $42.2 million | $31.0 million | $104.8 million | $69.4 million |
| Net Income | $28.4 million | $9.9 million | $65.2 million | $25.0 million |
| Earnings Per Share (Diluted) | $0.48 | $0.17 | $1.11 | $0.43 |
Strategic Initiatives
Interface is pursuing several strategic initiatives to align with its mission:
- Sustainability: The company is committed to reducing its carbon footprint and aims to achieve verified science-based targets by 2030.
- Innovation: Interface focuses on developing innovative flooring solutions that combine performance with aesthetic appeal.
- Global Expansion: The company is actively expanding its market presence across various regions, with a notable increase in orders in the Americas and Asia.
Market Positioning
Interface positions itself as a leader in sustainable flooring solutions, leveraging its extensive portfolio that includes carpet tiles, resilient flooring products, and rubber flooring. The company has successfully integrated sustainability into its business model, appealing to environmentally-conscious consumers and businesses.
Recent Performance Highlights
Key highlights from the most recent quarter include:
- Q3 2024 net sales increased by 10.7% year-over-year.
- Adjusted EBITDA for Q3 2024 reached $53.7 million, up from $43.7 million in Q3 2023.
- Significant growth in the Americas segment, with net sales of $210.2 million, up 17.9% compared to the previous year.
Financial Outlook
Looking ahead, Interface has raised its full-year outlook for 2024, anticipating:
- Net Sales of approximately $1.315 billion to $1.325 billion.
- Adjusted Gross Profit Margin of approximately 36.6%.
- Adjusted SG&A Expenses of around $345 million.
- Capital Expenditures of approximately $37 million.
Interface, Inc. continues to drive its mission of sustainability while achieving robust financial performance, positioning itself favorably in the competitive flooring market.
How Interface, Inc. (TILE) Works
Business Overview
Interface, Inc. operates as a global leader in the design and production of modular flooring solutions, primarily focusing on carpet tiles and resilient flooring products. The company emphasizes sustainability and innovation in its operations, aiming to reduce carbon emissions and promote circular economy practices.
Financial Performance
As of the third quarter of 2024, Interface reported net sales of $344.3 million, representing a 10.7% increase compared to $311.0 million in the same period of the previous year.
The gross profit margin improved to 37.1%, up 162 basis points year-over-year, primarily due to lower raw material costs and increased sales volume.
| Category | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $344.3 million | $311.0 million | +10.7% |
| Gross Profit Margin | 37.1% | 35.5% | +162 bps |
| Operating Income | $42.2 million | $31.0 million | +36.1% |
| Net Income | $28.4 million | $9.9 million | +187.9% |
| EPS (Diluted) | $0.48 | $0.17 | +182.4% |
Segment Performance
Interface operates through two primary segments: the Americas (AMS) and Europe, Africa, Asia, and Australia (EAAA). For Q3 2024, the segment results were as follows:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change |
|---|---|---|---|
| AMS | $210.2 million | $178.2 million | +17.9% |
| EAAA | $134.1 million | $132.8 million | +1.0% |
Operational Efficiency
Interface's operating income for Q3 2024 was $42.2 million, compared to $31.0 million in Q3 2023, reflecting effective cost management strategies and increased sales volume. The company’s SG&A expenses were $85.5 million, or 24.8% of net sales, down from 25.5% in the prior year.
Cash Flow and Debt Management
In Q3 2024, Interface generated $76.2 million in cash from operations and repaid $51.3 million of debt. Total cash on hand at the end of Q3 2024 was $115.6 million, with total debt standing at $337.9 million.
| Cash Flow Category | Q3 2024 | Year-to-Date 2024 |
|---|---|---|
| Cash from Operations | $76.2 million | $110.4 million |
| Debt Repayment | $51.3 million | $80.9 million |
| Total Cash | $115.6 million | - |
| Total Debt | $337.9 million | - |
Outlook
For the full fiscal year 2024, Interface anticipates net sales between $1.315 billion and $1.325 billion and an adjusted gross profit margin of approximately 36.6%. The company expects adjusted SG&A expenses to be around $345 million and capital expenditures of about $37 million.
| Category | 2024 Forecast |
|---|---|
| Net Sales | $1.315 - $1.325 billion |
| Adjusted Gross Profit Margin | ~36.6% |
| Adjusted SG&A Expenses | ~$345 million |
| Capital Expenditures | ~$37 million |
How Interface, Inc. (TILE) Makes Money
Revenue Streams
Interface, Inc. generates revenue primarily through its product offerings, which include carpet tiles, resilient flooring products, and rubber flooring. As of the third quarter of 2024, the company reported net sales of $344.3 million, marking a 10.7% increase from $311.0 million in the same quarter of the previous year.
Segment Performance
Interface operates through two main segments: the Americas (AMS) and Europe, Asia, Africa, and Australia (EAAA). The following table summarizes the segment performance for the third quarter of 2024:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Operating Income (Q3 2024) | Operating Income (Q3 2023) |
|---|---|---|---|---|
| AMS | $210.2 million | $178.2 million | $31.9 million | $23.5 million |
| EAAA | $134.1 million | $132.8 million | $10.3 million | $7.5 million |
| Total | $344.3 million | $311.0 million | $42.2 million | $31.0 million |
Gross Profit and Margins
In the third quarter of 2024, Interface achieved a gross profit margin of 37.1%, which is an increase of 162 basis points compared to the previous year. The adjusted gross profit margin stood at 37.5%.
Operating Expenses
For the same period, selling, general, and administrative (SG&A) expenses were reported at $85.5 million, accounting for 24.8% of net sales, down from 25.5% in Q3 2023.
Net Income and Earnings Per Share
Interface reported a net income of $28.4 million for the third quarter of 2024, translating to earnings per share (EPS) of $0.48. This is a significant increase from the $9.9 million net income and $0.17 EPS in the same quarter of the previous year.
Year-to-Date Performance
For the first nine months of 2024, Interface reported net sales of $980.6 million, which represents a 4.7% increase from $936.4 million in the prior year. The following table summarizes the year-to-date performance:
| Measure | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Sales | $980.6 million | $936.4 million |
| Operating Income | $104.8 million | $69.4 million |
| Net Income | $65.2 million | $25.0 million |
| Earnings Per Share | $1.11 | $0.43 |
Cash Flow and Debt Management
In Q3 2024, Interface generated $76.2 million in cash from operations and repaid $51.3 million of debt. As of September 29, 2024, the company held $115.6 million in cash and had total debt of $337.9 million, resulting in a net debt of $222.3 million.
Outlook for 2024
For the full fiscal year 2024, Interface anticipates net sales in the range of $1.315 billion to $1.325 billion and an adjusted gross profit margin of approximately 36.6%.
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Article updated on 8 Nov 2024
Resources:
- Interface, Inc. (TILE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Interface, Inc. (TILE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Interface, Inc. (TILE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.