Tile Shop (TTSH) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Speaker0 Good morning, and welcome to the Quarter One twenty twenty five Tile Shop Holdings Incorporated Earnings Conference Call. This is Franz, and I'll be the operator assisting you today. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then followed by the number one on your te ...

Financial Data and Key Metrics Changes - The company reported sales of $2,500,000,000, a decrease of 5.7% as reported or about flat on a constant basis, impacted by two fewer shipping days and foreign exchange headwinds [6][16]. - Earnings per share (EPS) were $1.52, benefiting from productivity gains, restructuring actions, and a lower tax rate, which offset pricing pressure and higher input costs [7][19]. - Gross margin for the quarter was 23.1% as reported, and 24.1% excluding charges, in line with the prior year [17]. - Operating income was $96,000,000 or 3.8%, with adjusted operating margin at 4.8%, a decrease of 130 basis points year-over-year due to higher input costs [17][18]. Business Line Data and Key Metrics Changes - **Global Ceramic**: Sales were just over $990,000,000, a 4.9% decrease as reported but a 1.2% increase on a constant basis, driven by improved product and channel mix [20]. - **Flooring North America**: Sales were $862,000,000, a decrease of 4.2% as reported or 1.1% on a constant basis, impacted by the order management system conversion [20]. - **Flooring Rest of the World**: Sales were $670,000,000, an 8.8% decrease as reported and 2.9% on an adjusted basis, driven by lower sales volume and unfavorable price mix [21]. Market Data and Key Metrics Changes - Conditions in the first quarter weakened sequentially, with residential remodeling remaining the lowest sector [12]. - Consumer confidence in the U.S. has been declining, affecting spending and housing activity [13]. - In Europe, consumer confidence has also declined due to economic uncertainty, leading to postponed home sales and remodeling activities [14]. Company Strategy and Development Direction - The company aims to grow market share in a challenging environment by optimizing product mix and reducing costs [24]. - Restructuring projects are on schedule, with expected savings of approximately $100,000,000 this year [18][34]. - The company is focusing on enhancing domestic manufacturing capabilities to mitigate tariff impacts and improve competitive positioning [9][24]. Management's Comments on Operating Environment and Future Outlook - Management anticipates that the impact of tariffs will influence consumer spending and new construction, though the extent is unpredictable [11]. - The company expects pricing pressure to continue across all regions due to low demand and competitive markets [35]. - The outlook for the second quarter adjusted EPS is projected to be between $2.52 and $2.62, excluding any restructuring or one-time charges [36]. Other Important Information - The company purchased 225,000 shares of its stock for approximately $26,000,000 during the quarter [8]. - Cash and cash equivalents were just over $700,000,000, with free cash flow expected to remain strong despite a use of approximately $85,000,000 in Q1 [22][23]. Q&A Session Summary Question: Timing of tariff impact and pricing actions - The CFO indicated that the $50,000,000 annualized cost impact from tariffs would be more evident in the late third to fourth quarter, as inventory turnover takes time [41]. Question: Domestic capacity and pricing strategy - Management emphasized the advantage of domestic production capacity in the U.S. market, which will be leveraged to optimize results amid tariff increases [43]. Question: Balancing pricing power and demand - Management acknowledged the challenge of balancing pricing power with slower demand, indicating that pricing actions are being assessed continuously [49][50]. Question: EPS growth outlook amid tariff impacts - Management expressed that EPS growth would depend on market conditions, with efforts to offset tariff impacts through pricing and cost-cutting measures [58][59]. Question: Inventory levels and market dynamics - The company noted an increase in inventory levels due to preemptive imports ahead of tariffs, with no significant changes in downstream volumes observed [105][106]. Question: Breakdown of imports and tariff exposure - The company clarified that a significant portion of imports comes from countries like Vietnam and India, with minimal exposure to China [111][112].

Financial Data and Key Metrics Changes - Reported sales for the first quarter were $2.5 billion, a decrease of 5.7% as reported or approximately flat on a constant basis, impacted by two fewer shipping days and foreign exchange headwinds [3][12] - Earnings per share (EPS) for the quarter was $1.52, benefiting from productivity gains, restructuring actions, and a lower tax rate, which offset pricing pressure and higher input costs [4][14] - Gross margin for the quarter was 23.1% as reported, and 24.1% excluding charges, consistent with the prior year [13] - Operating income was reported at $96 million, or 3.8%, with adjusted operating margin at 4.8%, a decrease of 130 basis points year-over-year due to higher input costs [14][18] Business Line Data and Key Metrics Changes - Global Ceramic segment had sales of over $990 million, a 4.9% decrease as reported but a 1.2% increase on a constant basis, driven by improved product and channel mix [15] - Flooring North America sales were $862 million, a decrease of 4.2% as reported or 1.1% on a constant basis, impacted by the order management system conversion [15] - Flooring Rest of the World reported sales of $670 million, an 8.8% decrease as reported and 2.9% on an adjusted basis, driven by lower sales volume and unfavorable price mix [16] Market Data and Key Metrics Changes - Conditions in the first quarter weakened sequentially, with residential remodeling remaining the lowest sector [8][11] - Consumer confidence in the U.S. has been declining, affecting home sales and remodeling activities [10][11] - In Europe, consumer confidence has also declined due to economic uncertainty, leading to postponed home sales and remodeling activities [11][12] Company Strategy and Development Direction - The company aims to grow market share in a challenging environment by optimizing product mix and reducing costs [19] - Restructuring projects are on schedule, with expected savings of approximately $100 million this year [14][30] - The company is focusing on enhancing domestic manufacturing capabilities to mitigate tariff impacts and improve competitive positioning [5][21] Management Comments on Operating Environment and Future Outlook - Management anticipates that the impact of tariffs will influence consumer and business spending, though the extent is unpredictable [7][29] - The company expects pricing pressure to continue across all regions due to low demand and competitive markets [30] - Long-term prospects for the flooring category remain optimistic, with expectations of significant improvement when industry volumes return to historical levels [31] Other Important Information - The company purchased 225,000 shares of its stock for approximately $26 million during the quarter [4] - Cash and cash equivalents were over $700 million, with free cash flow usage of approximately $85 million primarily due to delayed invoicing and increased imports ahead of tariffs [16][17] Q&A Session Summary Question: Timing of tariff impact - The company expects the $50 million annualized cost impact from tariffs to be more pronounced in the late third quarter and fourth quarter, as inventory turnover takes time [34][36] Question: Pricing power in a promotional environment - The company believes that tariffs will be passed through to consumers, with selective pricing actions being taken to offset costs [42][44] Question: EPS growth outlook - Management indicated that EPS growth will depend on market conditions, with efforts to offset tariff impacts through pricing and cost-cutting measures [51][52] Question: Energy cost headwinds - The company expects energy costs to be slightly higher in Q2, with potential benefits from lower natural gas prices in the fourth quarter [118][120] Question: Inventory levels and market share - The company has increased inventory levels due to imports ahead of tariffs, and is focused on maintaining market share without leading with price [97][95]

Interface (TILE) Q1 2025 Earnings Call May 02, 2025 08:00 AM ET Company Participants Christine Needles - Global Head, Corporate CommunicationsLaurel Hurd - Chief Executive OfficerBruce Hausmann - Vice President and Chief Financial OfficerAlexander Paris - President & SMDDavid Macgregor - President Conference Call Participants Brian Biros - Equity Analyst Operator Thank you for standing by, and welcome to the Interface Inc. First Quarter twenty twenty five Earnings Conference Call. All lines have been placed ...

Interface (TILE) Q1 2025 Earnings Call May 02, 2025 08:00 AM ET Speaker0 Thank you for standing by, and welcome to the Interface Inc. First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I'd now like to turn the call over to Christine Needles, Global Communications. You may begin. Speaker1 Good morning, and welcome to Interface's conference call regar ...

Investor Presentation | May 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. At Interface, we're Made for More Who We Are Although Interface believes that the expectations reflected in these forward-looking statements are reasonable, the Company can give no as ...

PHOENIX, April 23, 2025 (GLOBE NEWSWIRE) -- LVT (LiveView Technologies, Inc.), the leader of rapidly deployable security solutions, today unveiled its integration with Axon Fusus at the Axon Week 2025 conference. LVT’s integration with Axon Fusus’ real-time crime center provides additional situational awareness to security operators and law enforcement, helping enable a more timely and optimized response to security incidents. The integration is now live, requires no additional hardware and provides several ...

Interface, Inc. (NASDAQ:TILE) Q4 2024 Earnings Conference Call February 25, 2025 8:00 AM ET Company Participants Christine Needles - Global Head of Corporate Communications Laurel Hurd - President and Chief Executive Officer Bruce Hausmann - Vice President and Chief Financial Officer Conference Call Participants Brian Biros - Thompson Research Group David MacGregor - Longbow Research Alexander Paris - Barrington Research Operator Hello and welcome to the Fourth Quarter 2024 Interface, Inc. Earnings Conferen ...