Interface, Inc. (NASDAQ: TILE) has reported its third quarter 2024 results, showing a strong performance with significant profitability expansion and double-digit order growth. Here are the key financial highlights and how they compare to the prior year period:
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Net sales for the third quarter were $344.3 million, marking a 10.7% increase from the prior year period.
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Gross profit margin increased to 37.1%, up 162 basis points year-over-year. Adjusted gross profit margin was 37.5%, up 158 basis points from the prior year period.
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SG&A expenses were $85.5 million, or 24.8% of net sales, compared to $79.3 million, or 25.5% of net sales in the third quarter of the previous year.
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Operating income for the third quarter was $42.2 million, compared to $31.0 million in the prior year period. Adjusted operating income was $43.5 million versus $32.4 million in the third quarter of 2023.
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GAAP earnings per share were $0.48, while adjusted earnings per share were also $0.48. This compared to GAAP earnings per share of $0.17 and adjusted earnings per share of $0.28 in the third quarter of 2023.
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Adjusted EBITDA for the third quarter of 2024 was $53.7 million, compared with adjusted EBITDA of $43.7 million in the third quarter of 2023.
For the first nine months of 2024:
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Net sales were $980.6 million, up 4.7% from the prior year period.
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Gross profit margin was 36.8%, an increase of 282 basis points from the prior year period. Adjusted gross profit margin was 37.2%, an increase of 281 basis points versus the prior year period.
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Operating income for the first nine months of 2024 was $104.8 million, compared to operating income of $69.4 million in the prior year period. Adjusted operating income was $108.6 million for the first nine months of 2024 versus $75.4 million in the same period last year.
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GAAP net income for the first nine months of 2024 was $65.2 million, or $1.11 per diluted share, compared to $25.0 million, or $0.43 per diluted share, in the first nine months of 2023. Adjusted net income for the first nine months of 2024 was $66.1 million, or $1.13 per diluted share, versus $34.8 million, or $0.60 per diluted share, in the same period last year.
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Adjusted EBITDA for the first nine months of 2024 was $142.9 million, compared with adjusted EBITDA of $109.8 million in the prior year period.
In terms of segment results:
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AMS (Americas) net sales for the third quarter of 2024 were $210.2 million, up 17.9% versus the prior year period. Orders were up 17.1% on a currency-neutral basis.
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EAAA (Europe, Australia, and Asia) net sales for the third quarter of 2024 were $134.1 million, up 1.0% versus the prior year period. Orders were up 0.4% on a currency-neutral basis.
Looking ahead, Interface has raised its full year outlook and now anticipates net sales of $1.315 billion to $1.325 billion, an adjusted gross profit margin of approximately 36.6%, adjusted SG&A expenses of approximately $345 million, adjusted interest and other expenses of approximately $27 million, and an adjusted effective tax rate for the full year of approximately 25.0%.
The company's cash on hand at the end of the third quarter of 2024 was $115.6 million, while total debt stood at $337.9 million, compared to $110.5 million of cash and $417.2 million of total debt at the end of fiscal year 2023.
Today the company's shares have moved 32.2% to a price of $23.1. For the full picture, make sure to review Interface's 8-K report.
