NASDAQ$TILE

Interface Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Interface reported strong second quarter results driven by recovering economic activity and order growth.

Interface, Inc. announced strong second quarter results with a 14% increase in net sales to $295 million, driven by recovering economic activity. Orders increased 38% year over year. GAAP earnings per share were $0.26, and adjusted earnings per share were $0.30. The company maintains a strong liquidity position with $401 million.

  • Q2 2021 orders increased 38% compared to Q2 2020.
  • Net sales totaled $295 million, up 14% compared to Q2 2020.
  • Q2 2021 GAAP earnings per share of $0.26; Q2 2021 adjusted earnings per share of $0.30.
  • Strong liquidity of $401 million at quarter end comprised of approximately $102 million in cash and $298 million of availability under the revolving credit facility.

Headline financials

Total Revenue

$295M

Previous: $260M+13.6%
EPS (adj)

$0.30

Previous: $0.27+11.1%
Adjusted EBITDA

$43M

No prior period
Capital Expenditures

-$12.1M

Previous: -$35.7M+66.0%
Free Cash Flow

$3.4M

Previous: -$31M+111.0%
Net Income

$15.5M

Previous: $4.71M+229.4%
Operating Income

$29.2M

Previous: $17.4M+68.0%
Gross Profit

$109M

Previous: $97.3M+12.0%
Cash & Equivalents

$102M

Previous: $91.8M+11.5%
Total Assets

$1.32B

Previous: $1.3B+1.6%

Revenue & EPS history

Interface · Revenue · Quarterly

$295M

Q2 2021+13.6%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

The Company anticipates net sales in the third quarter of 2021 of approximately $310 million to $320 million.

Tailwinds

  • Net sales in the third quarter of 2021 of approximately $310 million to $320 million.
  • Adjusted gross profit percentage in the second half of 2021 of approximately 36% to 37%.
  • Adjusted SG&A expense for the full year of 2021 of approximately $325 million, with the remaining portion spread fairly evenly across the third and fourth quarters of 2021.
  • Interest & Other expense for the full year of 2021 of approximately $31 million.
  • Capital expenditures of approximately $30 million for full year of 2021.

Headwinds

  • There continues to be disruption in the global economy due to COVID-19.
  • A significant level of uncertainty created by the global pandemic.
  • Industry-wide supply chain volatility negatively impacted our bottom line in the second quarter.
  • Adjusted effective tax rate for the full year of 2021 is anticipated to be approximately 27%.
  • Fully diluted share count at the end of the second quarter of 2021 was 59.1 million shares.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.6%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+2.4%

Avg return

30 days after

61%

37 / 61 earnings

Positive

+34.5%

Q3 2024

Best reaction

-15.0%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.0%-2.2%+9.1%
Q4 2025+4.0%-0.0%-20.1%
Q3 2025-2.9%-2.1%+4.6%
Q1 2025+1.9%+5.4%+6.6%
Q4 2024-11.5%-5.1%-4.4%
Q3 2024+34.5%+41.6%+52.0%
Q2 2024+1.4%-1.8%+14.1%
Q1 2024+3.6%+0.6%+1.6%
Q4 2023+15.9%+17.4%+26.5%
Q3 2023+0.8%-1.3%+12.6%
Q2 2023+4.1%+5.3%+7.9%
Q1 2023-7.8%-9.7%-4.1%
Q4 2022+4.5%+5.3%-11.4%
Q3 2022+1.3%-4.9%+5.8%
Q2 2022-15.0%-13.9%-26.8%
Q1 2022-6.5%-2.4%+4.4%
Q4 2021+12.9%+7.6%+4.0%
Q3 2021+10.5%+6.6%-1.0%
Q2 2021-3.0%-1.3%+3.7%
Q1 2021+5.4%+3.0%+25.0%
Q3 2020+13.9%+12.0%+35.7%
Q2 2020+0.1%+1.0%-14.0%
Q1 2020+0.0%-11.2%+22.7%
Q4 2019-2.2%-6.9%-54.7%
Q3 2019+11.3%+7.8%+10.6%
Q2 2019-7.6%-7.0%-30.3%
Q1 2019-7.4%-4.8%-6.7%
Q4 2018+4.6%+9.2%-9.2%
Q3 2018-7.3%-18.2%-16.8%
Q2 2018-6.2%-6.2%-0.4%
Q1 2018-9.2%-12.4%-9.2%
Q4 2017+6.1%+5.1%+4.2%
Q3 2017+5.1%+4.6%+18.0%
Q2 2017+4.2%+0.5%+1.9%
Q1 2017+1.0%+0.0%+5.1%
Q4 2016+3.4%+8.7%+4.2%
Q3 2016-4.7%+0.3%+14.6%
Q2 2016+9.7%+6.8%+6.6%
Q1 2016-5.2%
Q4 2015-9.4%
Q3 2015-13.3%
Q2 2015+7.7%
Q1 2015+7.0%
Q4 2014+15.5%
Q3 2014+2.3%
Q2 2014-5.8%
Q1 2014-2.4%
Q4 2013-6.4%
Q3 2013+2.6%
Q2 2013+3.0%
Q1 2013-4.2%
Q2 2012+0.1%
Q4 2012+5.9%
Q3 2012-1.2%
Q1 2012+1.3%
Q3 2011+3.6%
Q2 2011+10.4%
Q4 2011+10.4%
Q4 2010+10.4%
Q1 2011+2.1%
Q1 2010-1.3%

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