TILE - Interface reports mixed Q2 earnings; initiates Q3 and raises FY23 outlook

2023-08-04 05:50:26 ET

• Interface press release ( NASDAQ: TILE ): Q2 Non-GAAP EPS of $0.25 beats by $0.07 .
• Revenue of $329.6M (-5.0% Y/Y) misses by $4.7M . Currency neutral net sales were down 4.7% year-over-year.
• Generated $18.3 million cash from operations, repaid $25.9 million of debt in the quarter.
• In the second quarter of 2023, adjusted EBITDA was $39.8 million. This compares with adjusted EBITDA of $49.0 million in the second quarter of 2022.

• Outlook: For the third quarter of 2023:

  • Net sales of $320 million to $330 million vs. consensus of $325.35M.
  • Adjusted gross profit margin of approximately 35.5%.
  • Adjusted SG&A expenses of approximately $84 million.
  • Adjusted Interest & Other expenses of approximately $10 million.
  • An adjusted effective tax rate of approximately 31%.
  • Fully diluted weighted average share count of approximately 58.2 million shares.

  For the full fiscal year 2023:

  • Net sales of $1.285 billion to $1.310 billion vs. consensus of $1.29B.
  • Adjusted gross profit margin of 34.0% to 34.5%.
  • Adjusted SG&A expenses of approximately $336 million.
  • Adjusted Interest & Other expenses of approximately $37 million.
  • An adjusted effective tax rate of approximately 29%.
  • Capital expenditures of approximately $32 million.

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