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Jan 03, 2021
Interface Q4 2020 Earnings Report
Interface reported results for the fourth quarter ended January 3, 2021.
Key Takeaways
Interface reported Q4 net sales of $277 million, a decrease of 18% year-over-year. GAAP earnings per share was $0.33, while adjusted earnings per share was $0.27. The company had a strong liquidity position with $398 million at quarter end, including $103 million in cash.
Strong liquidity of $398 million at quarter end comprised of $103 million in cash and $295 million of availability under the revolving credit facility.
Q4 2020 GAAP earnings per share of $0.33; Q4 2020 adjusted earnings per share of $0.27.
Cash generated by operating activities of $22 million in Q4 2020.
Selling activity has increased in recent weeks including a growing number of engagements and RFPs, a ramp up in sample activity and an increase in the number of return-to-work and renovation planning discussions.
Forward Guidance
In the first quarter of 2021, the company anticipates net sales to decline both sequentially and year over year due to customary seasonality, continued effects of the COVID-19 pandemic, and the fact that the first quarter of 2020 had fourteen weeks of activity versus thirteen weeks of activity in the first quarter of 2021.
Positive Outlook
- Adjusted gross profit percentage anticipated to be approximately 37% - 38%.
- Adjusted SG&A expense for the full year of 2021 is anticipated to be approximately $330 million.
- First quarter 2021 adjusted SG&A expense is anticipated to be approximately one fourth of $330 million.
- Interest & Other expense is anticipated to be $8-9 million per quarter in 2021.
- Adjusted effective tax rate for the full year of 2021 is anticipated to be approximately 27%.
Challenges Ahead
- Net sales anticipated to decline sequentially from the fourth quarter of 2020 to the first quarter of 2021 by approximately $25 million.
- Customary seasonality
Historical Earnings Impact
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Avg. Return Before/After Earnings
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