Interface Reports Second Quarter 2021 Results
Interface, Inc. (Nasdaq: TILE) reported Q2 2021 results showing a 14% increase in net sales to $295 million and a significant 38% rise in orders year-over-year. GAAP earnings per share reached $0.26, while adjusted EPS was $0.30. Strong cash liquidity stood at $401 million despite supply chain challenges. However, gross profit margins decreased by 50 basis points. For H1 2021, net income was $22 million, a notable recovery from a loss in H1 2020. The outlook for Q3 2021 estimates net sales of $310 to $320 million.
- Q2 2021 net sales increased by 14% to $295 million.
- Orders surged 38% compared to Q2 2020.
- GAAP EPS of $0.26, adjusted EPS of $0.30.
- Strong liquidity of $401 million.
- Operating income improved to $29.2 million from $17.4 million in Q2 2020.
- Gross profit margin decreased by 50 basis points to 37.0%.
- Operating income for H1 2021 declined from $56.8 million to $51.0 million.
ATLANTA, Aug. 6, 2021 /PRNewswire/ -- Interface, Inc. (Nasdaq: TILE), a worldwide commercial flooring company and global leader in sustainability, today announced results for the second quarter ended July 4, 2021.
Quarterly Highlights:
- Q2 2021 orders increased
38% compared to Q2 2020. - Net sales totaled
$295 million , up14% compared to Q2 2020. - Q2 2021 GAAP earnings per share of
$0.26 ; Q2 2021 adjusted earnings per share of$0.30 . - Strong liquidity of
$401 million at quarter end comprised of approximately$102 million in cash and$298 million of availability under the revolving credit facility. - Year to date cash generated by operating activities of
$35 million .
"We delivered strong second quarter results with sales growth of
"Demand for our carbon negative backings continues to build in the marketplace, and we increasingly see these products written into customer specifications. We are encouraged by the positive momentum in this early stage of the rollout which bodes well for the second half of 2021."
"Industry-wide supply chain volatility negatively impacted our bottom line in the second quarter, but was partially offset by our extensive use of recycled raw material inputs. Continued cost control measures, along with the steady acceleration of new orders, gives us confidence to project a strong second half of 2021," added Bruce Hausmann, CFO of Interface.
Second Quarter 2021 Financial Summary
Sales: Second quarter net sales were
Gross profit margin was
Second quarter SG&A expenses were
Operating Income: Second quarter operating income was
Net Income and EPS: On a GAAP basis, the Company recorded net income of
Adjusted EBITDA: In the second quarter of 2021, adjusted EBITDA was
First Six Months 2021 Financial Summary
Sales: Net sales for the first six months of 2021 were
Gross profit margin was
SG&A expenses for the first six months of 2021 were
Operating Income: Operating income for the first six months of 2021 was
Net Income and EPS: On a GAAP basis, the Company recorded net income of
Adjusted EBITDA: In the first six months of 2021, adjusted EBITDA was
Cash and Debt: The Company had cash on hand of
Second Quarter Segment Results
At the beginning of 2021, the Company expanded its financial reporting into two operating and reportable segments: 1) Americas ("AMS") and 2) Europe, Africa, Asia and Australia (collectively "EAAA"). The realignment solely impacts the Company's segment reporting and there is no change to previously reported consolidated results. Segment AOI includes allocations of corporate SG&A expenses.
AMS Results:
- Q2 2021 net sales of
$157 million , up3.6% versus$151 million in the prior year period primarily due to the recovering commercial market. - Q2 2021 orders were up
35% compared to the prior year period. - Q2 2021 operating income was
$21.1 million compared to$17.2 million in the prior year period. - Q2 2021 AOI was
$21.1 million versus AOI of$23.9 million in the prior year period.
EAAA Results:
- Q2 2021 net sales of
$138 million , up27.6% versus$108 million in the prior year period primarily due to the recovering commercial market. - Currency fluctuations had an approximately
$12 million positive impact on Q2 2021 sales as compared to Q2 2020 sales due to strengthening of the Euro, British pound sterling, Chinese Renminbi and Australian dollar against the U.S. dollar. - Q2 2021 orders were up
43% compared to the prior year period. - Q2 2021 operating income of
$8.1 million compared to$0.2 million in the prior year period. - Q2 2021 AOI was
$10.0 million versus AOI of$3.5 million in the prior year period.
First Six Months Segment Results
AMS Results:
- Net sales for the first six months of 2021 were
$284 million , down8.3% versus$309 million in the prior year period primarily due to the impacts of COVID-19. - Operating income for the first six months of 2021 was
$32.7 million compared to$37.3 million in the prior year period. - AOI for the first six months of 2021 was
$33.0 million versus AOI of$47.5 million in the prior year period.
EAAA Results:
- Net sales for the first six months of 2021 were
$264 million , up10.9% versus$238 million in the prior year period primarily due to the recovering commercial market and favorable currency fluctuations. - Currency fluctuations had an approximately
$24 million positive impact on net sales in the first six months of 2021 as compared to the prior year period, primarily due to the strengthening of the Euro, British pound sterling, Chinese Renminbi and Australian dollar against the U.S. dollar. - Operating income for the first six months of 2021 was
$13.3 million compared to an operating loss of$113.4 million in the prior year period. The six-month period of 2020 includes a goodwill and intangible asset impairment charge of$118.6 million . - AOI for the first six months of 2021 was
$18.0 million versus AOI of$9.3 million in the prior year period.
Outlook
There continues to be disruption in the global economy due to COVID-19, and a significant level of uncertainty created by the global pandemic. As the Company continues to monitor this situation, it is anticipating:
- Net sales in the third quarter of 2021 of approximately
$310 million to$320 million . - Adjusted gross profit percentage in the second half of 2021 of approximately
36% to37% . - Adjusted SG&A expense for the full year of 2021 of approximately
$325 million , with the remaining portion spread fairly evenly across the third and fourth quarters of 2021. - Interest & Other expense for the full year of 2021 of approximately
$31 million . - The adjusted effective tax rate for the full year of 2021 is anticipated to be approximately
27% . - Capital expenditures of approximately
$30 million for full year of 2021.
Fully diluted share count at the end of the second quarter of 2021 was 59.1 million shares.
Webcast and Conference Call Information
Interface will host a conference call on August 6, 2021, at 8:00 a.m. Eastern Time, to discuss its second quarter 2021 results. The conference call will be simultaneously broadcast live over the Internet.
Listeners may access the conference call live over the Internet at:
https://event.on24.com/wcc/r/3193104/FF7BD8018253301748534B57490EAF42, or through the Company's website at: https://investors.interface.com.
The archived version of the webcast will be available at these sites for one year beginning approximately one hour after the call ends.
Non-GAAP Financial Measures
Interface provides adjusted earnings per share, adjusted net income, adjusted operating income ("AOI"), adjusted gross profit, adjusted gross profit margin, adjusted SG&A expenses, organic sales and organic sales growth, net debt, and adjusted EBITDA as additional information regarding its operating results in this press release. These non-GAAP measures are not in accordance with – or alternatives to – GAAP measures, and may be different from non-GAAP measures used by other companies. Adjusted EPS, adjusted net income, and AOI exclude nora purchase accounting amortization, goodwill and intangible asset impairment charges, changes in equity award forfeiture accounting, restructuring charges, asset impairment, and severance and other charges. AOI also excludes an SEC settlement fine. Adjusted EPS and adjusted net income also exclude the loss associated with a warehouse fire and loss on the discontinuance of interest rate swaps. Adjusted gross profit and adjusted gross profit margin exclude nora purchase accounting amortization. Adjusted SG&A expenses exclude changes in equity award forfeiture accounting, restructuring charges, asset impairment, severance, and other charges. Organic sales and organic sales growth exclude the impact of foreign currency fluctuations. Net debt is total debt less cash on hand. Adjusted EBITDA is GAAP net income excluding interest expense, income tax expense, depreciation and amortization, stock compensation amortization, goodwill and intangible asset impairment, restructuring charges, asset impairment, severance and other charges, nora purchase accounting amortization, an SEC settlement fine, and the loss associated with a warehouse fire. This news release should be read in conjunction with the Company's Current Report on Form 8-K furnished today to the U.S. Securities & Exchange Commission, which explains why Interface believes presentation of these non-GAAP measures provides useful information to investors, as well as any additional material purposes for which Interface uses these non-GAAP measures.
About Interface
Interface, Inc. is a global flooring company specializing in carbon neutral carpet tile and resilient flooring, including luxury vinyl tile (LVT) and nora® rubber flooring. We help our customers create high-performance interior spaces that support well-being, productivity, and creativity, as well as the sustainability of the planet. Our mission, Climate Take Back™, invites you to join us as we commit to operating in a way that is restorative to the planet and creates a climate fit for life.
Learn more about Interface at interface.com and blog.interface.com, our nora brand at nora.com, our FLOR® brand at FLOR.com, and our Carbon Neutral Floors™ program at interface.com/carbonneutral. Learn more about our carbon negative products at interface.com/carbonnegative.
Follow us on Twitter, YouTube, Facebook, Pinterest, LinkedIn, Instagram, and Vimeo.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. Forward-looking statements may be identified by words such as "may," "expect," "forecast," "anticipate," "intend," "plan," "believe," "could," "should," "goal," "aim," "objective," "seek," "project," "estimate," "target," "will" and similar expressions. Forward-looking statements in this press release include, without limitation, any projections we make regarding the Company's 2021 third quarter and the statements regarding the second half and full year 2021 under "Outlook" above. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to the risks under the following subheadings in "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2021: "The COVID-19 pandemic could have a material adverse effect on our ability to operate, our ability to keep employees safe from the pandemic, our results of operations, financial condition, liquidity, capital investments, our near term and long term ability to stay in compliance with debt covenants under our Syndicated Credit Facility and Senior Notes, our ability to refinance our existing indebtedness, and our ability to obtain financing in capital markets"; "Sales of our principal products have been and may continue to be affected by the COVID-19 pandemic, adverse economic cycles, and effects in the new construction market and renovation market"; "Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicate a material impairment of those assets"; "Our substantial international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including by restrictive taxation or other government regulation and by foreign currency fluctuations"; "The uncertainty surrounding the implementation and effect of the U.K.'s exit from the European Union, and related negative developments in the European Union could adversely affect our business, results of operations or financial condition"; "We have a substantial amount of debt, which could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under our debt"; "Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness"; "We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness"; "We compete with a large number of manufacturers in the highly competitive floorcovering products market, and some of these competitors have greater financial resources than we do. We may face challenges competing on price, making investments in our business, or competing on product design"; "Our success depends significantly upon the efforts, abilities and continued service of our senior management executives, our principal design consultant and other key personnel (including sales personnel), and our loss of any of them could affect us adversely"; "Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to pass these cost increases through to our customers"; "Unanticipated termination or interruption of any of our arrangements with our primary third party suppliers of synthetic fiber or our sole third party supplier for luxury vinyl tile ("LVT") could have a material adverse effect on us"; "If we fail to realize the expected synergies and other benefits of the nora acquisition, our results of operations and stock price may be negatively affected"; "The market price of our common stock has been volatile and the value of your investment may decline"; "Changes to our facilities, manufacturing processes, product construction, and product composition could disrupt our operations, increase customer complaints, increase warranty claims, negatively affect our reputation, and have a material adverse effect on our financial condition and results of operations"; "Our business operations could suffer significant losses from natural disasters, catastrophes, fire, pandemics or other unexpected events"; "Disruptions to or failures of our information technology systems could adversely affect our business"; and "We face risks associated with litigation and claims".
- TABLES FOLLOW -
Consolidated Condensed Statements | Three Months Ended | Six Months Ended | |||||||||||||
(In thousands, except per share data) | 7/4/2021 | 7/5/2020 | 7/4/2021 | 7/5/2020 | |||||||||||
Net Sales | $ | 294,785 | $ | 259,504 | $ | 548,045 | $ | 547,673 | |||||||
Cost of Sales | 185,793 | 162,210 | 343,015 | 336,068 | |||||||||||
Gross Profit | 108,992 | 97,294 | 205,030 | 211,605 | |||||||||||
Selling, General & Administrative Expenses | 79,830 | 80,058 | 159,132 | 167,741 | |||||||||||
Restructuring Charges | (62) | (157) | (192) | (1,275) | |||||||||||
Goodwill and Intangible Asset Impairment | — | — | — | 121,258 | |||||||||||
Operating Income (Loss) | 29,224 | 17,393 | 46,090 | (76,119) | |||||||||||
Interest Expense | 7,289 | 4,965 | 14,545 | 10,595 | |||||||||||
Other Expense | 617 | 5,139 | 1,332 | 6,630 | |||||||||||
Income (Loss) Before Taxes | 21,318 | 7,289 | 30,213 | (93,344) | |||||||||||
Income Tax Expense | 5,807 | 2,580 | 7,764 | 4,114 | |||||||||||
Net Income (Loss) | $ | 15,511 | $ | 4,709 | $ | 22,449 | $ | (97,458) | |||||||
Earnings (Loss) Per Share – Basic | $ | 0.26 | $ | 0.08 | $ | 0.38 | $ | (1.67) | |||||||
Earnings (Loss) Per Share – Diluted | $ | 0.26 | $ | 0.08 | $ | 0.38 | $ | (1.67) | |||||||
Common Shares Outstanding – Basic | 59,041 | 58,484 | 58,885 | 58,466 | |||||||||||
Common Shares Outstanding – Diluted | 59,041 | 58,484 | 58,885 | 58,466 | |||||||||||
Consolidated Condensed Balance Sheets | |||||||
(In thousands) | 7/4/2021 | 1/3/2021 | |||||
Assets | |||||||
Cash | $ | 102,372 | $ | 103,053 | |||
Accounts Receivable | 146,938 | 139,869 | |||||
Inventory | 258,215 | 228,725 | |||||
Other Current Assets | 39,134 | 23,747 | |||||
Total Current Assets | 546,659 | 495,394 | |||||
Property, Plant & Equipment | 345,322 | 359,036 | |||||
Operating Lease Right-of Use Asset | 94,316 | 98,013 | |||||
Goodwill and Intangible Assets | 240,332 | 253,536 | |||||
Other Assets | 95,585 | 100,032 | |||||
Total Assets | $ | 1,322,214 | $ | 1,306,011 | |||
Liabilities | |||||||
Accounts Payable | $ | 82,393 | $ | 58,687 | |||
Accrued Liabilities | 118,900 | 105,739 | |||||
Current Portion of Operating Lease Liabilities | 13,116 | 13,555 | |||||
Current Portion of Long-Term Debt | 15,189 | 15,319 | |||||
Total Current Liabilities | 229,598 | 193,300 | |||||
Long-Term Debt | 541,395 | 561,251 | |||||
Operating Lease Liabilities | 83,034 | 86,468 | |||||
Other Long-Term Liabilities | 132,601 | 138,454 | |||||
Total Liabilities | 986,628 | 979,473 | |||||
Shareholders' Equity | 335,586 | 326,538 | |||||
Total Liabilities and Shareholders' Equity | $ | 1,322,214 | $ | 1,306,011 | |||
Consolidated Condensed Statements of Cash Flows | Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands) | 7/4/2021 | 7/5/2020 | 7/4/2021 | 7/5/2020 | ||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Adjustments to Reconcile Net Income (Loss) to Cash Provided | ||||||||||||||||
Net Income/(Loss) | $ | 15,511 | $ | 4,709 | $ | 22,449 | $ | (97,458) | ||||||||
Depreciation and Amortization | 11,736 | 10,808 | 23,670 | 21,748 | ||||||||||||
Stock Compensation Amortization/(Benefit) | 1,548 | 716 | 2,472 | (2,216) | ||||||||||||
Goodwill and Intangible Asset Impairment Charge | — | — | — | 121,258 | ||||||||||||
Amortization of Acquired Intangible Assets | 1,441 | 1,316 | 2,862 | 2,631 | ||||||||||||
Deferred Income Taxes and Other Non-Cash Items | 827 | (1,632) | 1,057 | (17,364) | ||||||||||||
Change in Working Capital | ||||||||||||||||
Accounts Receivable | (18,610) | 9,025 | (8,816) | 37,660 | ||||||||||||
Inventories | (14,809) | 13,722 | (33,855) | (8,792) | ||||||||||||
Prepaid Expenses and Other Current Assets | 1,022 | 8,469 | (14,830) | 1,005 | ||||||||||||
Accounts Payable and Accrued Expenses | 11,597 | 1,011 | 40,109 | (26,045) | ||||||||||||
Cash Provided by Operating Activities | 10,263 | 48,144 | 35,118 | 32,427 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Capital Expenditures | (6,898) | (13,461) | (12,112) | (35,665) | ||||||||||||
Other | — | 61 | — | (29) | ||||||||||||
Cash Used in Investing Activities | (6,898) | (13,400) | (12,112) | (35,694) | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Repayments of long-term debt | (26,557) | (27,904) | (56,796) | (47,779) | ||||||||||||
Borrowing of long-term debt | 20,000 | 16,000 | 38,000 | 70,000 | ||||||||||||
Tax Withholding Payments for Share-Based Compensation | (14) | (144) | (193) | (1,488) | ||||||||||||
Proceeds from Issuance of Common Stock | — | — | — | 93 | ||||||||||||
Debt issuance costs | — | — | (36) | — | ||||||||||||
Dividends Paid | (1,178) | (4,392) | (1,178) | (4,392) | ||||||||||||
Finance Lease Payments | (589) | (411) | (1,116) | (810) | ||||||||||||
Cash Provided by (Used in) Financing Activities | (8,338) | (16,851) | (21,319) | 15,624 | ||||||||||||
Net Cash Provided by (Used in) Operating, Investing and | (4,973) | 17,893 | 1,687 | 12,357 | ||||||||||||
Effect of Exchange Rate Changes on Cash | 422 | 1,300 | (2,368) | (1,814) | ||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||
Net Change During the Period | (4,551) | 19,193 | (681) | 10,543 | ||||||||||||
Balance at Beginning of Period | 106,923 | 72,651 | 103,053 | 81,301 | ||||||||||||
Balance at End of Period | $ | 102,372 | $ | 91,844 | $ | 102,372 | $ | 91,844 | ||||||||
Segment Results | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
(in thousands) | 7/4/21 | 7/5/20 | 7/4/21 | 7/5/20 | |||||||||||
Net Sales | |||||||||||||||
AMS | $ | 156,665 | $ | 151,222 | $ | 283,632 | $ | 309,313 | |||||||
EAAA | 138,120 | 108,282 | 264,413 | 238,360 | |||||||||||
Consolidated Net Sales | $ | 294,785 | $ | 259,504 | $ | 548,045 | $ | 547,673 | |||||||
Segment AOI | |||||||||||||||
AMS | $ | 21,098 | $ | 23,942 | $ | 33,011 | $ | 47,492 | |||||||
EAAA | 9,960 | 3,530 | 17,971 | 9,330 | |||||||||||
Consolidated AOI | $ | 31,058 | $ | 27,472 | $ | 50,982 | $ | 56,822 | |||||||
* Note: Segment AOI includes allocation of corporate SG&A expenses | |||||||||||||||
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||
Second Quarter | Second Quarter | First Six | First Six | ||||||||||||||||||||||||||||||||||||||
Net Sales as Reported | $ | 294.8 | $ | 259.5 | $ | 548.0 | $ | 547.7 | |||||||||||||||||||||||||||||||||
Impact of Changes in | (13.1) | (25.0) | |||||||||||||||||||||||||||||||||||||||
Organic Sales * | $ | 281.7 | $ | 259.5 | $ | 523.0 | $ | 547.7 | |||||||||||||||||||||||||||||||||
Second Quarter 2021 | Second Quarter 2020 | ||||||||||||||||||||||||||||||||||||||||
Adjustments | Adjustments | ||||||||||||||||||||||||||||||||||||||||
Gross | SG&A | Operating | Pre-tax | Tax | Net | Diluted | Gross | SG&A | Operating | Pre-tax | Tax | Net | Diluted | ||||||||||||||||||||||||||||
GAAP As Reported | $ | 109.0 | $ | 79.8 | $ | 29.2 | $ | 15.5 | $ | 0.26 | $ | 97.3 | $ | 80.1 | $ | 17.4 | $ | 4.7 | $ | 0.08 | |||||||||||||||||||||
Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||||||||
Purchase Accounting | 1.4 | — | 1.4 | 1.4 | (0.4) | 1.0 | 0.02 | 1.3 | — | 1.3 | 1.3 | (0.4) | 0.9 | 0.02 | |||||||||||||||||||||||||||
Restructuring, Asset | — | (0.5) | 0.4 | 0.4 | (0.1) | 0.3 | 0.01 | — | (8.9) | 8.8 | 8.8 | (1.7) | 7.1 | 0.12 | |||||||||||||||||||||||||||
Warehouse Fire Loss | — | — | — | (0.04) | 0.01 | (0.03) | — | — | — | — | 4.2 | (1.0) | 3.2 | 0.05 | |||||||||||||||||||||||||||
Loss on Discontinuance | — | — | — | 1.0 | (0.2) | 0.8 | 0.01 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Adjustments Subtotal * | 1.4 | (0.5) | 1.8 | 2.8 | (0.7) | 2.1 | 0.04 | 1.3 | (8.9) | 10.1 | 14.3 | (3.1) | 11.2 | 0.19 | |||||||||||||||||||||||||||
Adjusted (non-GAAP) * | $ | 110.4 | $ | 79.4 | $ | 31.1 | $ | 17.6 | $ | 0.30 | $ | 98.6 | $ | 71.1 | $ | 27.5 | $ | 15.9 | $ | 0.27 | |||||||||||||||||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components | |||||||||||||||||||||||||||||||||||||||||
First Six Months 2021 | First Six Months 2020 | ||||||||||||||||||||||||||||||||||||||||
Adjustments | Adjustments | ||||||||||||||||||||||||||||||||||||||||
Gross | SG&A | Operating | Pre-tax | Tax | Net | Diluted | Gross | SG&A | Operating | Pre-tax | Tax | Net | Diluted | ||||||||||||||||||||||||||||
GAAP As Reported | $ | 205.0 | $ | 159.1 | $ | 46.1 | $ | 22.4 | $ | 0.38 | $ | 211.6 | $ | 167.7 | $ | (76.1) | $ | (97.5) | $ | (1.67) | |||||||||||||||||||||
Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||||||||
Purchase Accounting | 2.9 | — | 2.9 | 2.9 | (0.8) | 2.0 | 0.03 | 2.6 | — | 2.6 | 2.6 | (0.8) | 1.9 | 0.03 | |||||||||||||||||||||||||||
Goodwill and Intangible | — | — | — | — | — | — | — | — | — | 121.3 | 121.3 | (1.5) | 119.8 | 2.05 | |||||||||||||||||||||||||||
Restructuring, Asset | — | (2.2) | 2.0 | 2.0 | (0.4) | 1.6 | 0.03 | — | (8.9) | 7.7 | 7.7 | (1.5) | 6.2 | 0.11 | |||||||||||||||||||||||||||
Change in Equity Award | — | — | — | — | — | — | — | — | (1.4) | 1.4 | 1.4 | (0.3) | 1.1 | 0.02 | |||||||||||||||||||||||||||
Warehouse Fire Loss | — | — | — | (0.2) | 0.04 | (0.1) | — | — | — | — | 4.2 | (1.0) | 3.2 | 0.06 | |||||||||||||||||||||||||||
Loss on Discontinuance | — | — | — | 2.1 | (0.5) | 1.6 | 0.03 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Adjustments Subtotal * | 2.9 | (2.2) | 4.9 | 6.8 | (1.7) | 5.1 | 0.09 | 2.6 | (10.3) | 133.0 | 137.1 | (5.1) | 132.1 | 2.26 | |||||||||||||||||||||||||||
Adjusted (non-GAAP) | $ | 207.9 | $ | 156.9 | $ | 51.0 | $ | 27.6 | $ | 0.47 | $ | 214.2 | $ | 157.4 | $ | 56.8 | $ | 34.7 | $ | 0.59 | |||||||||||||||||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components | |||||||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP Operating Income to Adjusted Operating Income ("AOI") | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Second Quarter 2021 | First Six Months 2021 | First Six Months 2020 | |||||||||||||||||||||||||||
AMS | EAAA | Consolidated * | AMS | EAAA | Consolidated * | AMS | EAAA | Consolidated * | |||||||||||||||||||||
GAAP Operating Income / (Loss) | $ | 21.1 | $ | 8.1 | $ | 29.2 | $ | 32.7 | $ | 13.3 | $ | 46.1 | $ | 37.3 | $ | (113.4) | $ | (76.1) | |||||||||||
Non-GAAP Adjustments | |||||||||||||||||||||||||||||
Purchase Accounting Amortization | — | 1.4 | 1.4 | — | 2.9 | 2.9 | — | 2.6 | 2.6 | ||||||||||||||||||||
Goodwill and Intangible Asset Impairment | 2.7 | 118.6 | 121.3 | ||||||||||||||||||||||||||
Impact of Change in Equity Award Forfeiture | 0.8 | 0.7 | 1.4 | ||||||||||||||||||||||||||
Restructuring, Asset Impairment, Severance and | — | 0.4 | 0.4 | 0.3 | 1.8 | 2.0 | 6.8 | 0.9 | 7.6 | ||||||||||||||||||||
Adjustments Subtotal * | — | 1.8 | 1.8 | 0.3 | 4.6 | 4.9 | 10.2 | 122.7 | 132.9 | ||||||||||||||||||||
AOI * | $ | 21.1 | $ | 10.0 | $ | 31.1 | $ | 33.0 | $ | 18.0 | $ | 51.0 | $ | 47.5 | $ | 9.3 | $ | 56.8 | |||||||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components | |||||||||||||||||||||||||||||
First Quarter 2020 | Second Quarter 2020 | Third Quarter 2020 | Fourth Quarter 2020 | Fiscal Year 2020 | |||||||||||||||||||||||||||||||||||||||||||||
AMS | EAAA | Consolidated | AMS | EAAA | Consolidated | AMS | EAAA | Consolidated * | AMS | EAAA | Consolidated * | AMS | EAAA | Consolidated * | |||||||||||||||||||||||||||||||||||
GAAP Operating Income | $ | 20.1 | $ | (113.6) | $ | (93.5) | $ | 17.2 | $ | 0.2 | $ | 17.4 | $ | 14.9 | $ | 1.0 | $ | 15.9 | $ | 21.1 | $ | (0.2) | $ | 20.9 | $ | 73.3 | $ | (112.6) | $ | (39.3) | |||||||||||||||||||
Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||||
Purchase Accounting Amortization | — | 1.3 | 1.3 | — | 1.3 | 1.3 | — | 1.4 | 1.4 | — | 1.4 | 1.4 | — | 5.5 | 5.5 | ||||||||||||||||||||||||||||||||||
Goodwill and Intangible Asset | 2.7 | 118.6 | 121.3 | — | — | — | — | — | — | — | — | — | 2.7 | 118.6 | 121.3 | ||||||||||||||||||||||||||||||||||
Impact of Change in Equity Award | 0.8 | 0.7 | 1.4 | — | — | — | — | — | — | — | — | — | 0.8 | 0.7 | 1.4 | ||||||||||||||||||||||||||||||||||
Restructuring, Asset Impairment, | — | (1.1) | (1.1) | 6.8 | 2.0 | 8.8 | 2.7 | 3.1 | 5.8 | 0.2 | 3.0 | 3.2 | 9.7 | 6.9 | 16.7 | ||||||||||||||||||||||||||||||||||
SEC Fine | — | — | — | — | — | — | 2.7 | 2.3 | 5.0 | — | — | — | 2.7 | 2.3 | 5.0 | ||||||||||||||||||||||||||||||||||
Adjustments Subtotal * | 3.5 | 119.4 | 122.9 | 6.8 | 3.3 | 10.1 | 5.4 | 6.8 | 12.2 | 0.2 | 4.4 | 4.6 | 15.9 | 133.9 | 149.8 | ||||||||||||||||||||||||||||||||||
AOI * | $ | 23.6 | $ | 5.8 | $ | 29.4 | $ | 23.9 | $ | 3.5 | $ | 27.5 | $ | 20.3 | $ | 7.8 | $ | 28.1 | $ | 21.3 | $ | 4.2 | $ | 25.6 | $ | 89.1 | $ | 21.4 | $ | 110.5 | |||||||||||||||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components | |||||||||||||||||||||||||||||||||||||||||||||||||
Second | Second | First Six | First Six | Fiscal Year | ||||||||||||||||
Net Income (Loss) as Reported (GAAP) | $ | 15.5 | $ | 4.7 | $ | 22.4 | $ | (97.5) | $ | (71.9) | ||||||||||
Income Tax Expense (Benefit) | 5.8 | 2.6 | 7.8 | 4.1 | (7.5) | |||||||||||||||
Interest Expense (including debt issuance cost | 7.3 | 5.0 | 14.5 | 10.6 | 29.2 | |||||||||||||||
Depreciation and Amortization (excluding debt | 11.3 | 10.4 | 22.7 | 20.9 | 43.8 | |||||||||||||||
Stock Compensation Amortization (Benefit) | 1.5 | 0.7 | 2.5 | (2.2) | (0.5) | |||||||||||||||
Purchase Accounting Amortization | 1.4 | 1.3 | 2.9 | 2.6 | 5.5 | |||||||||||||||
Goodwill and Intangible Asset Impairment | — | — | — | 121.3 | 121.3 | |||||||||||||||
Restructuring, Asset Impairment, Severance and | 0.4 | 8.8 | 2.0 | 7.6 | 16.7 | |||||||||||||||
Warehouse Fire Loss | — | 4.2 | (0.2) | 4.2 | 4.2 | |||||||||||||||
SEC Fine | — | — | — | 5.0 | ||||||||||||||||
Adjusted Earnings before Interest, Taxes, | $ | 43.2 | $ | 37.6 | $ | 74.7 | $ | 71.6 | $ | 145.7 | ||||||||||
As of 7/4/21 | ||||||||||||||||||||
Total Debt | $ | 556.6 | ||||||||||||||||||
Total Cash on Hand | (102.4) | |||||||||||||||||||
Total Debt, Net of Cash on Hand (Net Debt) | $ | 454.2 | ||||||||||||||||||
7/4/2021 | ||||||||||||||||||||
Total Debt / LTM Net Income (Loss) | 11.6x | |||||||||||||||||||
Net Debt / LTM AEBITDA | 3.1x | |||||||||||||||||||
Note: Sum of reconciling items may differ from total due to rounding of individual components | ||||||||||||||||||||
* Historical AEBITDA figures have been updated to reflect a change in depreciation and amortization values used to calculate AEBITDA. | ||||||||||||||||||||
The impacts of changes in foreign currency presented in the tables are calculated based on applying the prior year period's average foreign currency exchange rates to the current year period.
The Company believes that the above non-GAAP performance measures, which management uses in managing and evaluating the Company's business, may provide users of the Company's financial information with additional meaningful basis for comparing the Company's current results and results in a prior period, as these measures reflect factors that are unique to one period relative to the comparable period. However, these non–GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company's reported results under accounting principles generally accepted in the United States. Tax effects identified above (when applicable) are calculated using the statutory tax rate for the jurisdictions in which the charge or income occurred.
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SOURCE Interface, Inc.
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