Interface(TILE) - 2025 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 totaled $335 million, representing a 3.0% year-over-year increase, while full year net sales reached $1,316 million, up 4.3% year-over-year[6]. - GAAP earnings per diluted share for Q4 2024 were $0.37, a 12.1% increase from $0.33 in Q4 2023, and for the full year, it was $1.48, up 94.7% from $0.76[6]. - Net income for the twelve months ended December 29, 2024, was $86,946,000, a significant increase of 95% from $44,517,000 in the prior year[30]. - Earnings per share (EPS) for the twelve months ended December 29, 2024, were $1.49 (basic) and $1.48 (diluted), compared to $0.77 (basic) and $0.76 (diluted) in 2023[26]. - In Q4 2024, the company reported a GAAP net income of $21.8 million, or $0.37 per diluted share, compared to $19.6 million, or $0.33 per diluted share in Q4 2023, representing a 11.2% increase in EPS[35]. - For the fiscal year 2024, the company achieved a GAAP net income of $86.9 million, or $1.48 per diluted share, up from $44.5 million, or $0.76 per diluted share in fiscal year 2023, indicating a 94.7% increase in EPS[37]. Cash Flow and Debt Management - The company generated $38 million in cash from operations in Q4 2024 and $148 million for the full year, while repaying $115 million of debt, reducing net leverage to 1.1 times fiscal year 2024 Adjusted EBITDA[5][8]. - Cash on hand decreased by 10.2% year-over-year to $99.2 million, while total debt was reduced by 27.4% to $302.8 million[8]. - Long-term debt decreased significantly to $302,275,000 from $408,641,000 year-over-year[28]. - Interest Expense for Q4 2024 was $4.9 million, a decrease from $6.8 million in Q4 2023, indicating a reduction of 28.0%[45]. Sales and Market Segments - The Americas segment saw net sales increase by 9.3% in Q4 2024 and 8.7% for the full year, indicating strong performance in this region[9]. - The Americas region accounted for 61% of total net sales for the twelve months ended December 29, 2024[32]. - The corporate/office vertical represented 47% of gross billings for the twelve months ended December 29, 2024[33]. - The company expects Q1 2025 net sales to be between $290 million and $300 million, with an anticipated adjusted gross profit margin of 37.5%[11][12]. - For the full fiscal year 2025, net sales are projected to be between $1.315 billion and $1.365 billion, with adjusted gross profit margin expected to be between 37.2% and 37.4%[13]. Profitability and Margins - Adjusted gross profit margin for the full year 2024 improved by 174 basis points year-over-year to 36.7%, driven by higher volumes and favorable mix[5][6]. - Gross profit for the twelve months ended December 29, 2024, was $482,948,000, representing a 9.5% increase compared to $441,069,000 for the previous year[26]. - The company's gross profit for fiscal year 2024 was $482.9 million, up from $441.0 million in fiscal year 2023, indicating a growth of 9.5%[41]. - Adjusted operating income for fiscal year 2024 was $141.4 million, compared to $116.4 million in fiscal year 2023, representing a 21.5% increase[37]. - Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (AEBITDA) for fiscal year 2024 was $189.0 million, compared to $162.0 million in fiscal year 2023, indicating a growth of 16.7%[45]. Operational Costs and Expenses - Adjusted SG&A expenses for Q4 2024 increased by 8.8% year-over-year, attributed to higher sales commissions and incentive compensation[7]. - The company incurred $5.2 million in purchase accounting amortization for fiscal year 2024, consistent with the previous year[37]. - Restructuring and asset impairment costs for fiscal year 2024 were $2.5 million, down from $5.6 million in fiscal year 2023, reflecting a reduction of 55.4%[45]. - The company reported a tax expense of $5.6 million for Q4 2024, down from $7.4 million in Q4 2023, representing a decrease of 24.3%[45]. Foreign Exchange and Cyber Events - The company anticipates a negative impact of approximately 2% on year-over-year net sales growth in Q1 2025 due to foreign exchange translation effects[11]. - The impact of the cyber event in fiscal year 2024 resulted in a net loss effect of $4.2 million, compared to a net gain of $0.8 million in fiscal year 2023[37]. - The impact of cyber events resulted in a loss of $0.3 million for Q4 2024, contrasting with a gain of $0.1 million in Q4 2023[43]. - The company’s foreign subsidiary in Thailand was substantially liquidated in 2024, following similar actions in Russia and Brazil in 2023[38].