Interface(US:TILE)2025-11-04 21:08Financial Performance - Consolidated net sales for the quarter ended September 28, 2025, were $364.5 million, a 5.9% increase from $344.3 million in the same quarter last year[96]. - Consolidated net income for the quarter was $46.1 million, or $0.78 per diluted share, compared to $28.4 million, or $0.48 per diluted share, in the prior year[96]. - For the first nine months of 2025, consolidated net sales reached $1,037.5 million, up 5.8% from $980.6 million in the same period last year[97]. Profitability Metrics - Gross profit margin for the quarter was 39.4%, an increase from 37.1% in the same quarter last year, driven by higher average sales prices and favorable product mix[105]. - AMS segment adjusted operating income (AOI) for the third quarter was $40.5 million, a 25.8% increase from $32.2 million in the prior year[112]. - AOI in AMS rose by 41.4% in the first nine months of 2025, with AOI as a percentage of net sales increasing to 17.1% from 13.0% in the prior year[116]. - AOI in EAAA for Q3 2025 increased by 21.0%, with AOI as a percentage of net sales rising to 9.4% from 8.4% in the same period last year[120]. Cost and Expenses - Consolidated cost of sales for the quarter was $220.9 million, a 2.0% increase from $216.6 million in the same period last year[102]. - Selling, general and administrative (SG&A) expenses for the quarter increased by $4.8 million (5.6%) to $90.3 million[107]. - The effective tax rate for the three months ended September 28, 2025, was 4.8%, down from 21.2% in the same period last year[110]. Segment Performance - AMS segment net sales for the third quarter were $218.6 million, a 4.0% increase from $210.2 million in the same quarter last year[112]. - Net sales in AMS increased by 7.2% during the first nine months of 2025 compared to the same period in 2024, driven by higher average sales prices and increased rubber flooring volume[114]. - EAAA segment net sales increased by 8.8% in Q3 2025, primarily due to favorable currency fluctuations of approximately $6.0 million (4.5%) and higher sales volume[118]. Cash Flow and Investments - Cash provided by operating activities was $118.6 million for the nine months ended September 28, 2025, an increase of $8.2 million from the prior year[126]. - Cash used in investing activities was $25.5 million for the nine months ended September 28, 2025, primarily due to increased capital investment in manufacturing automation[127]. - The company had $187.4 million in cash as of September 28, 2025, with additional borrowing capacity of $294.8 million under its Facility[122]. Future Outlook - As of October 19, 2025, the consolidated backlog of unshipped orders was approximately $244.4 million, up from $223.4 million in February 2025[132]. - The company anticipates net sales growth in Q4 2025 compared to the same period last year, despite a challenging global macroeconomic environment[130]. - The company plans to evaluate its cost structure and global manufacturing footprint to optimize costs amid macroeconomic challenges[98]. Shareholder Actions - The company repurchased 250,000 shares of common stock at a weighted average price of $20.57 per share during the nine months ended September 28, 2025[129].