Interface, Inc. (Nasdaq: IFSIA), a worldwide floorcoverings company, today announced results for the second quarter ended July 1, 2007.
Sales from continuing operations for the second quarter of 2007 increased 18.7% to $265.0 million from sales of $223.2 million in the year ago period. As previously announced, the Company sold its fabrics division to an affiliate of Sun Capital Partners, and therefore the financial statements for the second quarter of 2007 and all other periods presented now reflect the fabrics division as discontinued operations. The fabrics discontinued operations also include the results of the Company’s former European fabrics business, which was sold in the second quarter of 2006.
Operating income for the second quarter of 2007 increased 28.2% to $30.9 million, or 11.7% of sales, from $24.1 million, or 10.8% of sales, in the second quarter of last year. Income from continuing operations was $13.3 million, or $0.22 per diluted share, in the 2007 second quarter, compared with income from continuing operations of $8.5 million, or $0.15 per diluted share, in the second quarter of 2006. Including results of discontinued operations, net income was $1.0 million, or $0.02 per diluted share, in the 2007 second quarter, versus net income of $5.9 million, or $0.11 per diluted share, in the 2006 second quarter.
“The second quarter of 2007 was an exceptional quarter for Interface, as we reported strong performance across all of our businesses and continued to increase market share,” said Daniel T. Hendrix, President and Chief Executive Officer. “We established record revenues in our modular carpet business in each of our key geographic regions — Americas, Europe and Asia-Pacific. This growth was driven primarily by the rebounding corporate office market, while our market segmentation strategy contributed greatly as well. Perhaps the brightest spot, though, is that orders received in our continuing operations during the quarter were up 28% to $304 million, their highest level ever.”
Patrick C. Lynch, Senior Vice President and CFO, commented, “Our worldwide modular carpet business exhibited an outstanding quarter, with sales increasing 21% and orders increasing 30% compared with the second quarter last year. The Americas modular business continued its very strong performance as orders grew 33% to mark the fifth straight record quarter for this region. The record sales in our modular business drove improved profitability, which increased 34% from the same period last year. In our Bentley Prince Street business, we continued to see improvement, with revenue growth of 17% and increased profitability. During the quarter, we had a $24.3 million net increase in cash, while the July sale of our fabrics division has further contributed to strengthening our balance sheet and reducing debt.”
Loading...