Investor Presentation MAY 8, 2020 Forward Looking Statements and Non-GAAP Measures This presentation contains forward-looking statements, including, in particular, statements about Interface's plans, strategies and prospects. These are based on the Company's current assumptions, expectations and projections about future events. Although Interface believes that the expectations reflected in these forward-looking statements are reasonable, the Company can give no assurance that these expectations will prove t ...

Interface, Inc. (NASDAQ:TILE) Q1 2020 Earnings Conference Call May 8, 2020 8:00 AM ET Company Participants Christine Needles - Senior Director, Global Corporate Communications Daniel Hendrix - President and Chief Executive Officer Bruce Hausmann - Chief Financial Officer Conference Call Participants Kathryn Thompson - Thompson Research Group Mike Wood - Instinet Incorporated John Baugh - Stifel Financial Corp. Keith Hughes - SunTrust Robinson Humphrey, Inc. David MacGregor - Longbow Research Operator Ladies ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 29, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No.: 001-33994 INTERFACE INC (Exact name of registrant as specified in its charter) Georgia 58-1451243 (State of incorporation) (I.R.S. Employer Identification No.) 1280 West P ...

Interface, Inc. (NASDAQ:TILE) Q4 2019 Results Conference Call February 26, 2020 8:00 AM ET Company Participants Christine Needles - Corporate Communications Dan Hendrix - Chairman and CEO Bruce Hausman - CFO Conference Call Participants Brian Biros - Thompson Research Group Michael Wood - Nomura Instinet Keith Hughes - SunTrust John Baugh - Stifel David MacGregor - Longbow Research Operator Ladies and gentlemen, thank you for standing by and welcome to the Fourth Quarter 2019 Interface Inc. Earnings Confere ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarterly Period Ended September 29, 2019 Commission File Number 001-33994 INTERFACE INC (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Georgia 58-1451243 (I.R.S. Employer Identification No.) 1280 West Peachtree Street, Atlanta, Georgia 30309 (Add ...

Financial Data and Key Metrics Changes - Net sales increased by 9% compared to the third quarter of the previous year, with organic sales up by 2% [9] - GAAP EPS rose by 221%, while adjusted EPS increased by 15% year-over-year [9] - GAAP gross margin improved by 760 basis points, with adjusted gross margin up by 160 basis points compared to the prior year [21][16] - Net income for Q3 was $26 million or $0.45 per diluted share, up from $8 million or $0.14 per diluted share last year [25] - Adjusted net income was $28 million or $0.47 per diluted share, representing a 15% growth [25] Business Line Data and Key Metrics Changes - Resilient flooring now constitutes 25% of the business, reflecting a shift from a carpet tile company to a commercial flooring company [11] - Rubber flooring growth exceeded expectations, while LVT continued to drive organic growth [12][13] - Carpet tile growth faced challenges due to difficult comparisons from a large customer order in Q3 of the previous year, but market share was maintained [15] Market Data and Key Metrics Changes - Legacy Interface sales in EMEA grew by 6% in local currency but only 1% in USD due to currency headwinds [19] - Sales in Asia Pacific were flat in local currency but down 4% in USD, primarily due to currency fluctuations [19] - Growth in the global market segments was driven by office, education, and healthcare [20] Company Strategy and Development Direction - The company is focused on customer-centric innovation and enhancing market capabilities to drive growth [12] - Strategic investments are being made to capitalize on market opportunities, including a $10 million acceleration in capital expenditures for carbon-negative products [17] - The company aims to maintain a disciplined approach to de-leveraging the balance sheet, with a target leverage ratio below 2 by the end of 2020 [28] Management's Comments on Operating Environment and Future Outlook - Management noted a mixed macroeconomic environment with some positive signs but ongoing challenges, particularly related to Brexit and CEO confidence levels [41] - The company expects a solid finish to the year, maintaining full-year guidance for net sales growth of 14% to 15% and organic sales growth of 2% to 3% [32] - Management acknowledged the choppy order backlog and cautioned about a slower growth outlook for Q4, projecting organic growth of 2% to 3% [57][85] Other Important Information - The company repatriated $18 million from foreign operations, allowing for a $43 million debt paydown in Q3 [27] - Capital expenditures for the full year are forecasted to be between $75 million and $85 million, with a focus on expanding manufacturing capabilities [34] Q&A Session Summary Question: Impact of macroeconomic conditions on commercial remodeling - Management indicated a mixed environment with some positive signs but ongoing challenges, particularly with Brexit and CEO confidence levels [41] Question: Details on gross profit trends - Management attributed lower gross profits to a strong US dollar and production declines in Europe and Asia, impacting EPS [42][43] Question: Expectations for carpet tile growth normalization - Management expects carpet tile growth to normalize, aiming for 3% to 4% growth in the long term despite recent challenges [49] Question: Clarification on Q4 guidance - Management explained that Q4 earnings are expected to be lower than Q3 due to business timing and not double counting accelerated Q3 business [53][56] Question: Order backlog and quoting activity - Management noted that the order backlog is choppy, with some pushouts in orders, but overall activity remains solid [85][86] Question: Raw material situation and input costs - Management reported stable input costs, with a significant portion of materials being recycled or bio-based, mitigating inflation impacts [78]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐ Indicate by check mark whether the registrant has submit ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarterly Period Ended March 31, 2019 Commission File Number 001-33994 INTERFACE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) GEORGIA 58-1451243 1280 WEST PEACHTREE STREET, ATLANTA, GEORGIA 30309 (Address of principa ...

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].