分组1 - Interface reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and showing a slight increase from $0.24 per share a year ago, resulting in an earnings surprise of 25% [1] - The company achieved revenues of $297.41 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.82%, and an increase from $289.74 million year-over-year [2] - Interface has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed, losing approximately 22.6% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $350 million, and for the current fiscal year, it is $1.54 on revenues of $1.34 billion [7] - The Textile - Home Furnishing industry, to which Interface belongs, is currently ranked in the top 5% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Data and Key Metrics Changes - Interface reported a 4% year-over-year currency neutral growth in net sales for Q1 2025, with net sales totaling $297.4 million, an increase of 2.6% compared to Q1 2024 [5][16] - Adjusted earnings per share grew by 4% year-over-year, reaching $0.25 compared to $0.24 in Q1 2024 [5][18] - Adjusted gross profit margin was 37.7%, a decrease of 82 basis points from the prior year due to higher manufacturing and freight costs [16][17] - Adjusted operating income remained flat at $25.5 million compared to Q1 2024 [18] Business Line Data and Key Metrics Changes - Global education billings increased by 13%, driven by modernization initiatives and strong demand in both K-12 and higher education sectors [11] - Health care segment saw a 16% increase in global billings, supported by strong orders converting to billings [12] - Corporate office billings decreased by 7% year-over-year, attributed to timing, but growth is expected for the full year [12][13] Market Data and Key Metrics Changes - In the Americas, net sales grew by 6% with currency neutral orders up 10%, while EAAA experienced a decline in orders by 6% due to a softer macro environment [10][14] - Consolidated currency neutral orders increased by 3% year-over-year, with a strong backlog up 12% [14] Company Strategy and Development Direction - The "One Interface" strategy is focused on building strong global functions, enhancing productivity, expanding margins, and leading in design performance and sustainability [5][6] - A new VP of Global Product Category Management was appointed to optimize the product innovation pipeline [6] - The company is committed to sustainability, aiming to be carbon negative by 2040 and incorporating captured carbon into manufacturing processes [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong balance sheet and regional manufacturing approach, which mitigates tariff impacts [15][22] - The outlook for Q2 2025 is strong, with expectations of net sales between $355 million and $365 million [20] - The company anticipates continued growth driven by strong order momentum and a healthy backlog [20][22] Other Important Information - Capital expenditures for Q1 2025 were $7.5 million, up from $4 million in 2024, reflecting strategic investments in the business [19] - The company is facing tariff impacts on approximately 15% of global product costs, primarily affecting U.S. imports of nora rubber and LVT [15][50] Q&A Session Summary Question: Q1 results were better than expected, can you elaborate on gross margin and SG&A performance? - Management noted strong performance in the Americas and growth across all product categories, contributing to better-than-expected results [24][26] Question: What drove the raised guidance on revenue? - The raised guidance was based on strong Q1 results and positive outlook for Q2, supported by order growth and a strong backlog [29][33] Question: How did EAAA perform compared to the Americas? - EAAA had softer results, but Asia Pacific showed strong double-digit growth, particularly in local currency [36][38] Question: What is the status of the government business segment? - The government business, while small, showed strength in Q1, benefiting from return-to-work mandates despite some staff reductions [41][43] Question: What are the plans for capital allocation given the strong balance sheet? - The primary focus for capital allocation is to invest in the business and execute on those investments to drive growth [46][48] Question: How will the company manage tariff-related costs? - The company plans to offset tariff costs through pricing and productivity measures, with minimal impact expected due to local manufacturing [49][52] Question: What is the outlook on the return to office dynamic? - Management sees ongoing churn in the return to office trend, which presents opportunities for growth as companies modernize their office spaces [67][69]

Company Overview - Interface reported net sales of $1.3 billion in FY2024 [9] - The company has a global presence with 6 manufacturing locations on 4 continents [9] - Americas accounted for 61% of net sales, EMEA 28%, and APAC 11% [14] - Corporate office segment represents 46% of revenue, Education 20%, Healthcare 10%, and Other 24% [15] Financial Performance - Q1 2025 net sales were $297.4 million, a 2.6% increase year-over-year [56, 57] - Currency neutral net sales in Q1 2025 were $301.7 million, a 4.1% increase year-over-year [55, 70] - Adjusted operating income for Q1 2025 was $25.5 million, representing 8.6% of net sales [55, 57] - Adjusted diluted earnings per share for Q1 2025 was $0.25 [55, 57] - Adjusted EBITDA for the last twelve months (LTM) was $187 million, or 14.1% of net sales [55] Market Position and Strategy - The total global commercial flooring market is estimated at $39 billion, with Interface serving a $9+ billion market [36] - Interface is a global share leader in the $5 billion carpet tile segment [38] - The company is a leader in the high-growth $3 billion LVT segment [38]

[Financial Highlights](index=1&type=section&id=First%20quarter%20highlights) Interface reported a solid start to 2025, with net sales rising 2.6% to $297 million and currency-neutral net sales growing 4.1% year-over-year, driven by strong performance in the Americas and double-digit growth in Healthcare and Education sectors Q1 2025 Key Metrics | Metric | Value | | :--- | :--- | | Net Sales | $297 million | | Currency-Neutral Net Sales Growth | 4.1% YoY | | GAAP Earnings per Diluted Share | $0.22 | | Adjusted Earnings per Diluted Share | $0.25 | - The Americas segment demonstrated strong momentum with a **6% increase in net sales** and a **10% rise in currency-neutral orders**[3](index=3&type=chunk) - Global billings in both the Healthcare and Education sectors grew by **double digits**, highlighting the success of the company's diversification strategy[3](index=3&type=chunk) - The ongoing "One Interface" strategy is credited with accelerating growth, expanding margins, and strengthening the company's market position[4](index=4&type=chunk)[5](index=5&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Results%20Summary) For Q1 2025, GAAP net sales increased 2.6% to $297.4 million, while GAAP net income decreased to $13.0 million, or $0.22 per diluted share, though adjusted net income rose 3.0% to $14.6 million, resulting in adjusted EPS of $0.25, despite an 82 basis point decline in adjusted gross profit margin due to higher manufacturing and freight costs Q1 2025 vs Q1 2024 GAAP Consolidated Results (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $297.4 | $289.7 | 2.6% | | Gross Profit Margin | 37.3% | 38.1% | (80) bps | | Operating Income | $23.2 | $24.4 | (5.0)% | | Net Income | $13.0 | $14.2 | (8.3)% | | Earnings per Diluted Share | $0.22 | $0.24 | (8.3)% | Q1 2025 vs Q1 2024 Non-GAAP Consolidated Results (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Currency-Neutral Net Sales | $301.7 | $289.7 | 4.1% | | Adjusted Gross Profit Margin | 37.7% | 38.6% | (82) bps | | Adjusted Operating Income | $25.5 | $25.5 | (0.3)% | | Adjusted Net Income | $14.6 | $14.2 | 3.0% | | Adjusted Earnings per Diluted Share | $0.25 | $0.24 | 4.2% | - The decline in adjusted gross profit margin was expected and attributed to higher manufacturing costs in the EAAA region and increased freight costs, which were partially offset by higher pricing[7](index=7&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Results%20Summary) The Americas (AMS) segment was a key growth driver, with net sales increasing 5.9% to $179.9 million and currency-neutral orders up 9.8%, while the Europe, Africa, Asia, and Australia (EAAA) segment faced challenges, with net sales declining 2.0% to $117.5 million and currency-neutral orders decreasing by 5.7% due to a softer regional macro environment Americas (AMS) Segment Results - Q1 2025 vs Q1 2024 (in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $179.9 | $169.9 | 5.9% | | Adjusted Operating Income | $19.9 | $18.1 | 9.9% | | Currency-Neutral Orders Increase | 9.8% | - | - | EAAA Segment Results - Q1 2025 vs Q1 2024 (in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $117.5 | $119.8 | (2.0)% | | Adjusted Operating Income | $5.6 | $7.4 | (24.9)% | | Currency-Neutral Orders (Decrease) | (5.7)% | - | - | [Financial Position and Cash Flow](index=2&type=section&id=Financial%20Position%20and%20Cash%20Flow) As of March 30, 2025, Interface maintained a strong balance sheet with $97.8 million in cash and total debt of $302.9 million, resulting in a low net leverage ratio of 1.1x, with cash provided by operating activities at $11.7 million for the quarter and total assets growing to $1.19 billion Key Financial Position Metrics (as of March 30, 2025) | Metric | Value (in millions) | | :--- | :--- | | Cash | $97.8 | | Total Debt | $302.9 | | Net Debt | $205.1 | | **Ratio** | **Value** | | Net Leverage Ratio | 1.1x | Q1 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash Provided by Operating Activities | $11.7 | $12.6 | | Cash Used in Investing Activities | ($7.5) | ($2.0) | | Cash Used in Financing Activities | ($8.7) | ($29.8) | - Total assets increased to **$1.192 billion** as of March 30, 2025, from **$1.171 billion** at the end of fiscal year 2024[26](index=26&type=chunk) [Business Outlook](index=4&type=section&id=Outlook) Interface issued a strong outlook for the second quarter and an updated forecast for the full fiscal year 2025, anticipating Q2 net sales between $355 million and $365 million, and raising full-year net sales guidance to a range of $1.340 billion to $1.365 billion, with an expected adjusted gross profit margin of 37.2% to 37.4% Q2 Fiscal Year 2025 Outlook | Metric | Forecast | | :--- | :--- | | Net Sales | $355 million to $365 million | | Adjusted Gross Profit Margin | ~37.2% of net sales | | Adjusted SG&A Expenses | ~$90 million | | Adjusted Effective Income Tax Rate | ~27.5% | Full Fiscal Year 2025 Outlook | Metric | Current Outlook | Previous Outlook | | :--- | :--- | :--- | | Net Sales | $1.340B to $1.365B | $1.315B to $1.365B | | Adjusted Gross Profit Margin | 37.2% to 37.4% | 37.2% to 37.4% | | Adjusted SG&A Expenses | ~26% of net sales | ~26% of net sales | | Capital Expenditures | ~$45 million | ~$45 million | [Non-GAAP Financial Measures Reconciliation](index=5&type=section&id=Non-GAAP%20Financial%20Measures) The report provides detailed reconciliations of GAAP to non-GAAP financial measures to offer additional insight into operating results, with key Q1 2025 adjustments including $1.3 million for purchase accounting amortization and $1.0 million for restructuring and other costs, reconciling a GAAP Net Income of $13.0 million to an Adjusted Net Income of $14.6 million, with similar reconciliations for gross profit, operating income, segment results, and EBITDA - The company presents non-GAAP measures such as adjusted EPS, adjusted operating income (AOI), currency-neutral sales, net debt, and adjusted EBITDA to provide useful information to investors by excluding certain items that may not be indicative of core operating performance[15](index=15&type=chunk)[33](index=33&type=chunk) Q1 2025 GAAP to Non-GAAP Reconciliation Summary (in millions) | Metric | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | Gross Profit | $111.0 | $1.3 | $112.2 | | Operating Income | $23.2 | $2.2 | $25.5 | | Net Income | $13.0 | $1.6 | $14.6 | - For the last twelve months (LTM) ending March 30, 2025, the company reported **Adjusted EBITDA of $187.2 million**, reconciled from a GAAP Net Income of **$85.8 million**[30](index=30&type=chunk) [Company Information and Safe Harbor](index=5&type=section&id=About%20Interface) Interface, Inc. is a global commercial flooring company and a recognized leader in sustainability, offering an integrated portfolio of carpet tile and resilient flooring products, actively pursuing ambitious climate goals, and qualifying its forward-looking statements with a Safe Harbor statement outlining significant business risks and uncertainties - Interface is a global flooring solutions company offering carpet tile (Interface®), resilient flooring (LVT), rubber flooring (nora®), and premium area rugs (FLOR®)[17](index=17&type=chunk) - The company has a strong focus on sustainability, working to achieve verified science-based carbon reduction targets by **2030** and a goal to be a carbon-negative enterprise by **2040**[18](index=18&type=chunk) - The release contains a Safe Harbor statement warning that forward-looking statements are subject to numerous risks, including market competition, raw material costs, and global economic uncertainty, which could cause actual results to differ materially[21](index=21&type=chunk)[23](index=23&type=chunk)

Group 1 - Interface, Inc. has experienced a slowdown in both top and bottom-line growth in Q4-2024, indicating a potential inflection point for the company [1] - The company's revenue, net income, and earnings per share (EPS) have reached levels that are approximately equal to previous highs, suggesting a plateau in performance [1] Group 2 - The article does not provide any additional insights or data regarding the broader industry context or competitive landscape for commercial flooring companies [1]

Core Insights - Qualcomm's CEO Cristiano Amon emphasizes that artificial intelligence (AI) represents a significant generational change in technology, fundamentally altering human interaction with devices [1][2] - Amon predicts that AI will enable seamless task execution across multiple applications, moving away from the current model of navigating between different apps [2][3] - The integration of AI will extend beyond smartphones to various devices, including automobiles and augmented reality (AR) glasses, creating new computing spaces [4][5][6] AI Interaction and User Experience - Amon highlights that AI's ability to understand human language will transform user interactions, allowing for more intuitive and context-aware assistance [2][3] - The concept of an AI agent will serve as a constant assistant, capable of organizing tasks and providing recommendations without requiring users to switch between apps [3][4] Emerging Technologies - AR glasses are described as "wearable AI," with the potential to provide real-time assistance based on the user's environment [5] - Amon identifies cars as a new computing space where AI can facilitate natural interactions through voice and visual cues [6] On-Device AI Processing - Amon discusses the advantages of "AI at the edge," which includes faster processing, enhanced privacy, and reduced costs compared to cloud-based solutions [7][8] - Qualcomm aims to enable on-device AI experiences through its chips, continuing its legacy of technological innovation [8][9]

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, 2024 ☐ 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 ...

Financial Data and Key Metrics Changes - In 2024, the company achieved a 4% increase in currency-neutral net sales, with nearly doubled GAAP earnings per diluted share [7][17] - Fourth quarter net sales totaled $335 million, a 3% increase compared to the fourth quarter of 2023 [31] - Full year 2024 net sales reached $1.32 billion, a 4.3% increase versus fiscal year 2023 [36] - Adjusted gross profit margin for 2024 was 37.1%, an increase of 173 basis points from the prior year [37] - Fourth quarter adjusted EPS was $0.34 compared to $0.41 in the fourth quarter of 2023 [35] Business Line Data and Key Metrics Changes - Global billings in the education segment were up 10% for the year, driven by strength in the Americas [19] - Health care global billings were down 2% year-over-year in 2024, but up 12% in the fourth quarter [23] - Corporate office segment global billings were down 1% for the year, which was favorable compared to the overall industry [24] - Retail billings were up in 2024 compared to a soft 2023, positively impacting net sales [25] Market Data and Key Metrics Changes - In the Americas, currency-neutral net sales increased by 9% year-over-year [18] - In EAAA, currency-neutral net sales were down 2% due to a softer macro environment [18] - The backlog at the end of 2024 was strong, up 15% year-over-year, indicating a solid position heading into fiscal 2025 [27] Company Strategy and Development Direction - The company is focused on its One Interface strategy, which aims to build strong global functions and enhance productivity [8] - Investments in automation and robotics at key manufacturing plants are expected to improve margins and operational efficiency [11][12] - The company aims to be carbon negative by 2040 without the use of carbon offsets, enhancing its sustainability strategy [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy's effectiveness, noting solid initial results and expectations for continued growth [17][28] - The company is closely monitoring global geopolitical and macroeconomic environments, particularly in Europe and Australia, which are currently softer [29] - For 2025, the company anticipates net sales of $1.315 billion to $1.365 billion, with a focus on maintaining a disciplined capital allocation strategy [43] Other Important Information - The company generated $148.4 million of cash from operating activities in 2024, with strong liquidity of $398.5 million at year-end [39] - Capital expenditures for 2024 were $33.8 million, with a projection of $45 million for 2025 [40][42] Q&A Session Summary Question: Impact of One Interface selling strategy on 2025 - Management is proud of the success of the One Interface strategy and expects continued benefits in 2025, with solid momentum in the Americas business [50][51] Question: Outlook for the office segment in 2025 - Management is optimistic about the office segment due to rising return-to-office mandates and demand for premium Class A spaces [55][56] Question: Capital allocation priorities with reduced debt - The company plans to continue investing in manufacturing facilities to drive efficiency and profit margin expansion, given its strong balance sheet [58][59] Question: CapEx guidance for 2025 - The $45 million CapEx for 2025 includes investments in manufacturing automation, with a focus on proven technology that yields strong returns [62][64] Question: Gross margin improvement expectations - Management is committed to driving gross profit margin expansion, with various factors influencing the expected improvement [75][76] Question: Exposure to government business - The company's government business is a small portion of total revenue, including various government buildings and institutions [95][96] Question: Retail performance in 2024 - Retail was up in the second half of 2024, primarily due to previously deferred projects being activated [98][99] Question: Tariff exposure and sourcing of raw materials - The company has limited exposure to tariffs, with local manufacturing for carpet and sourcing LVT from South Korea [103][108]

Financial Data and Key Metrics Changes - In 2024, the company achieved a 4% increase in currency-neutral net sales and nearly doubled GAAP earnings per diluted share [7][17] - Fourth quarter net sales totaled $335 million, an increase of 3% compared to the same quarter in 2023 [31] - Full year 2024 net sales reached $1.32 billion, a 4.3% increase from 2023 [36] - Adjusted gross profit margin for 2024 was 37.1%, an increase of 173 basis points from the prior year [37] - Fourth quarter adjusted EPS was $0.34, down from $0.41 in the fourth quarter of 2023 [35] Business Line Data and Key Metrics Changes - Global billings in the Americas increased by 9% year-over-year, while EAAA saw a 2% decline [18] - Global Education billings were up 10% for the year, driven by strength in the Americas [19] - Health care segment saw a 2% decline in global billings for 2024, but a 12% increase in the fourth quarter [23] - Corporate office segment experienced a 1% decline in global billings for the year, which was favorable compared to the overall industry [24] - Retail billings were up in 2024 compared to a weak 2023, benefiting from previously deferred projects [25] Market Data and Key Metrics Changes - Currency-neutral orders in the Americas increased by 9% year-over-year in the fourth quarter [26] - EAAA's fourth quarter currency-neutral orders were down 1% year-over-year [27] - The backlog at the end of 2024 was up 15% year-over-year, indicating strong positioning for 2025 [27] Company Strategy and Development Direction - The company is focused on its One Interface strategy, which aims to enhance global functions, improve productivity, and expand margins [8][28] - Investments in automation and robotics at manufacturing plants are expected to drive operational efficiencies and improve margins [11][12] - The company aims to be carbon negative by 2040 without relying on carbon offsets, enhancing its sustainability strategy [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and its ability to outperform the industry in 2025 [28][29] - The company is closely monitoring global geopolitical and macroeconomic environments, particularly in Europe and Australia, which are currently softer [29] - Management anticipates a lighter Q1 in 2025, followed by stronger Q2 and Q3, with a focus on maintaining a disciplined capital allocation strategy [41] Other Important Information - The company generated $148.4 million in cash from operating activities in 2024, with strong liquidity of $398.5 million at year-end [39] - Capital expenditures for 2024 were $33.8 million, with a projection of $45 million for 2025 [40][62] Q&A Session Summary Question: Impact of One Interface selling strategy on 2025 - Management is optimistic about the continued benefits of the One Interface strategy, expecting it to contribute positively to 2025 results [48][51] Question: Outlook for the office segment in 2025 - Management noted a rise in return-to-office mandates and demand for premium Class A spaces, indicating a positive outlook for the office segment in 2025 [54][56] Question: Capital allocation priorities with reduced debt - The company plans to continue investing in manufacturing efficiency and growth, leveraging its strong balance sheet [57][58] Question: CapEx breakdown for 2025 - Of the projected $45 million in CapEx for 2025, approximately $10 million is for investment CapEx and $35 million for maintenance CapEx [93] Question: Exposure to government business - The company's government business is a small portion of total revenue, around 4%, and includes various government buildings [95] Question: Retail performance in 2024 - Retail was up in the second half of 2024, primarily due to previously deferred projects from 2023 [98] Question: Tariff exposure and sourcing of raw materials - The company has limited exposure to tariffs, sourcing carpet locally in the US and Europe, LVT from South Korea, and rubber products from Germany [100][108]

Investor Presentation | February 2025 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 pro ...