Financial Performance - In 2018, net sales reached $1,179.6 million, an increase of 18.4% compared to $996.4 million in 2017, with $112.6 million attributed to the nora acquisition[143]. - Operating income for 2018 was $76.4 million, down from $111.6 million in 2017, reflecting restructuring charges and amortization related to the nora acquisition[143]. - Net income for 2018 was $50.3 million, or $0.84 per share, compared to $53.2 million, or $0.86 per share in 2017[143]. - The cost of sales for 2018 rose by $144.8 million (23.7%) compared to 2017, with costs related to the nora acquisition accounting for $96.6 million[162]. - Selling, general, and administrative (SG&A) expenses increased by $60.3 million (22.6%) in 2018, with $34.9 million attributed to the nora business[164]. - Gross profit on sales for 2018 was $424,357 thousand, compared to $386,021 thousand in 2017, indicating a gross profit margin improvement[232]. - Operating income decreased to $76,379 thousand in 2018 from $111,571 thousand in 2017, reflecting a decline of approximately 31.6%[232]. - Net income for 2018 was $50,253 thousand, slightly down from $53,246 thousand in 2017, a decrease of about 3.7%[232]. Acquisition Impact - The nora acquisition, completed for $447.2 million, is expected to enhance growth in healthcare, life sciences, and education market segments[142]. - The nora acquisition contributed approximately 42% of its revenue in the Americas and 46% in Europe, focusing on healthcare, education, and transportation market segments[155][156]. - The company recognized goodwill of $184.7 million in connection with the nora acquisition on August 7, 2018, along with acquired intangible assets of $103.3 million[266]. Debt and Liquidity - Total long-term debt rose to $618.6 million in 2018 from $229.9 million in 2017, reflecting financing for the nora acquisition[137]. - The company borrowed $463 million in new term loan debt to finance the acquisition of nora, with a cash purchase price of $400.7 million net of cash acquired[188]. - The company’s current ratio improved to 2.5 in 2018, indicating strong liquidity compared to 2.4 in 2017[137]. - As of December 30, 2018, the company had $616.1 million in Term Loan A borrowings and $10.6 million in revolving loan borrowings[198]. - The weighted average interest rate for outstanding borrowings increased to 3.50% in 2018 from 3.0% in 2017[225]. - The company expects aggregate interest expense for 2019 to be between $24 million and $26 million, and capital expenditures to be between $65 million and $75 million[176]. Sales Performance - Sales in the Americas increased by 16.0%, Europe by 29.7%, and Asia-Pacific by 9.7% in 2018, driven by the nora acquisition and favorable currency exchange rates[154]. - Sales in the Americas increased by 16.0% in 2018, driven by the nora acquisition and growth in luxury vinyl tile (LVT) products, despite a 2% decrease in the average selling price for modular carpet[155]. - In Europe, sales rose by 29.7% in U.S. dollars and 25.0% in local currency, primarily due to the nora acquisition and LVT product growth, with a 3% increase in average selling price for modular carpet tile[156]. - Asia-Pacific sales increased by 9.7%, influenced by the nora acquisition and LVT growth, although the average selling price for modular carpet and LVT decreased by 5%[157]. Cash Flow and Investments - The company generated cash flow from operations of $91.8 million in 2018, primarily from net income of $50.3 million[188]. - Cash used in investing activities was $455.685 million, a substantial increase from $31.088 million in 2017[240]. - The company reported a net cash decrease of $6.048 million for 2018, compared to a decrease of $78.635 million in 2017[240]. - The balance of cash and cash equivalents at the end of 2018 was $80.989 million, down from $87.037 million at the end of 2017[240]. Tax and Regulatory Compliance - The effective tax rate decreased to 8.6% in 2018 from 47.0% in 2017, primarily due to the reduction in the U.S. federal income tax rate from 35% to 21%[170]. - The company is currently in compliance with all covenants under the Syndicated Credit Facility and anticipates remaining compliant[186]. Inventory and Assets - The Company reported finished goods inventory of $180.8 million and total inventory of $258.7 million as of December 30, 2018, compared to $115.5 million and $177.9 million in 2017, respectively[305]. - Total assets grew to $1,284,644 thousand in 2018, up from $800,600 thousand in 2017, marking an increase of approximately 60.5%[238]. - Total liabilities also increased to $929,981 thousand in 2018 from $470,509 thousand in 2017, reflecting a growth of about 97.5%[238]. Shareholder Returns - Cash dividends per common share increased to $0.26 in 2018, up from $0.25 in 2017, demonstrating a commitment to returning value to shareholders[137]. - The Company repurchased and retired 615,000 shares of common stock in 2018 at an average purchase price of $23.54 per share[335]. - The Company had approximately $25.1 million remaining for share repurchases under the program initiated in 2017 as of December 30, 2018[335].