Interface(TILE)2024-11-05 21:06Financial Performance - Consolidated net sales for the quarter ended September 29, 2024, were 311.0 million in the same quarter last year[95]. - Consolidated operating income for the third quarter of 2024 was 31.0 million in the third quarter of 2023, driven by higher sales and gross profit margin improvements[95]. - Consolidated net income for the quarter was 0.48 per diluted share, compared to 0.17 per diluted share, in the same period last year[95]. - For the first nine months of 2024, consolidated net sales reached 936.4 million in the same period last year[96]. - Consolidated operating income for the first nine months of 2024 was 69.4 million in the same period last year, reflecting higher sales and gross profit margin improvements[96]. Gross Profit and Expenses - Gross profit margin for the third quarter of 2024 was 37.1%, up from 35.5% in the same period last year, primarily due to lower costs driven by raw material cost deflation[106]. - Selling, general and administrative (SG&A) expenses for the third quarter of 2024 increased by 0.5 million recovered in costs during the nine months ended September 29, 2024, and anticipates further recoveries through insurance[97]. - Macroeconomic challenges, including inflation and geopolitical tensions, may adversely affect future performance, prompting the company to evaluate its cost structure and manufacturing footprint[98]. Segment Performance - AMS segment net sales for Q3 2024 reached 178.2 million in Q3 2023[114]. - AMS segment AOI for Q3 2024 was 23.3 million in Q3 2023, with AOI as a percentage of net sales rising to 15.3% from 13.1%[117]. - EAAA segment net sales for Q3 2024 were 132.8 million in Q3 2023, with currency fluctuations contributing approximately 11.3 million from 31.4 million from 115.6 million in cash and 299.3 million[124]. - Cash provided by operating activities for the nine months ended September 29, 2024, was 3.8 million from the prior year[128]. - Cash used in investing activities increased to 10.6 million in the prior year[129]. - Cash used in financing activities was 8.7 million from the prior year[130]. Market Risk and Controls - As of September 29, 2024, a hypothetical immediate 100 basis point increase in interest rates would result in a net decrease of 7.0 million in the fair value of fixed rate long-term debt[137]. - A 10% increase or decrease in foreign currency exchange rates against the U.S. dollar would result in a respective change of $12.9 million in the net fair value of financial instruments[138]. - There were no changes in internal control over financial reporting during the last fiscal quarter that materially affected the controls[143]. - The company's disclosure controls and procedures were deemed effective as of the end of the reporting period, providing reasonable assurance that objectives are met[142]. - The company utilizes sensitivity analysis to measure the impact of market risk on fair values of market sensitive instruments[135]. - The company does not expect significant impacts on the fair value of debt instruments due to changes in interest rates, although interest expense may be affected[136]. - The discussion of market risk is based on the nine months ended September 29, 2024, with reference to the Annual Report for the fiscal year ended December 31, 2023[134]. - The evaluation of controls was performed under the supervision of the President and Chief Executive Officer and the Vice President and Chief Financial Officer[140].