ICS Magazine

Interface reports net loss as revenues drop

February 22, 2002
The world's largest commercial carpet manufacturer, Interface, Inc., reported a fourth-quarter loss as the commercial interiors business slumped.

ATLANTA -- The world's largest commercial carpet manufacturer, Interface, Inc. (Nasdaq:IFSIA) reported a fourth-quarter loss, including a $2.9 million restructuring charge, as the commercial interiors business slumped.

The net loss was $700,000, or 1-cent per diluted share, compared with net income of $9.3 million, or 18-cents per diluted share in the same quarter of 2000. Before the non- recurring restructuring charges, income was $500,000, or 1 cent per diluted share, compared with $9.9 million, or 19 cents per diluted share in the same 2000 quarter.

Interface said sales were $247.0 million, down from $330.3 million in the fourth quarter of 2000. The company is a leader in the commercial interiors market offering floorcoverings, fabrics, interior architectural products and specialty chemicals.

"The commercial interiors industry continued to experience an unprecedented decline in the fourth quarter, which resulted in lower revenues across all our business segments," said company president and CEO Daniel Hendrix. "While we still believe order levels have stabilized, we continue to bounce along the bottom of the trough."

Looking forward, he said Interface anticipates revenue for the first quarter to be between $230 million and $240 million, and earnings to be between break-even and a 3-cent loss per diluted share.

In a positive note, Interface vice president and CFO Patrick C. Lynch commented on the company's recent financing activities, "We successfully completed a private offering of bonds in January of this year, which allowed us to refinance our revolving credit facility," he said. "These actions have created significant liquidity and financial flexibility for Interface."

Headquartered in Atlanta, Ga., Interface (www.ifsia.com/us) is the world's largest manufacturer of modular carpet under a variety of brands, including the Interface brand, and enjoys a leading position in the high quality, designer-oriented segment of the broadloom carpet market. It provides specialized carpet replacement, installation, maintenance and reclamation services through its Re:Source Americas service network, and is a leading producer of interior fabrics and upholstery products.