NASDAQ$TILE

Interface Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported fourth quarter and full year results, showing a decrease in net sales but an increase in gross profit margin.

Interface reported a decrease in net sales for both the fourth quarter and the full year 2023, but demonstrated strong gross profit margin improvement. The company focused on debt repayment and reinvesting in the business. Education and Corporate Office segments showed strength, while the retail sector experienced softness.

  • Net sales totaled $325.1 million, a 3.1% year-over-year decrease.
  • Gross profit margin increased to 37.9%, up 646 basis points year-over-year.
  • GAAP earnings per share were $0.33, with adjusted earnings per share at $0.41.
  • Generated $27.8 million in cash from operations and repaid $29.6 million of debt in the quarter.

Headline financials

Total Revenue

$325M

Previous: $336M-3.1%
EPS (adj)

$0.41

Previous: $0.31+32.3%
Capital Expenditures

-$8.87M

Previous: $10.7M-183.2%
Free Cash Flow

$18.9M

Previous: $12M+58.3%
Net Income

$19.6M

Previous: $21.8M-10.2%
Operating Income

$35.2M

Previous: $33.9M+3.7%
Gross Profit

$123M

Previous: $121M+1.5%

Revenue & EPS history

Interface · Revenue · Quarterly

$325M

Q4 2023-3.1%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Interface anticipates net sales of $280 million to $290 million for the first quarter of fiscal year 2024. They anticipate net sales of $1.26 billion to $1.28 billion for the full fiscal year 2024.

Tailwinds

  • Adjusted gross profit margin of approximately 36.0% for Q1 2024.
  • Adjusted SG&A expenses of approximately $83 million for Q1 2024.
  • Adjusted Interest & Other expenses of approximately $8 million for Q1 2024.
  • Fully diluted weighted average share count of approximately 58.8 million shares for Q1 2024.
  • Adjusted gross profit margin of approximately 35.5% to 35.8% for FY 2024.

Headwinds

  • Continued softness in the retail sector is expected to persist through the first half of 2024.
  • Adjusted SG&A expenses of approximately 26.0% of net sales for FY 2024.
  • Adjusted Interest & Other expenses of approximately $32 million for FY 2024.
  • An adjusted effective tax rate for the full year of approximately 29.0%.
  • Capital expenditures of approximately $42 million.

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 Q4 2023

Historical avgQ4 2023

+1.6%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+2.2%

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%
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%
Q4 2011+10.4%
Q2 2011+10.4%
Q4 2010+10.4%
Q1 2011+2.1%
Q1 2010-1.3%

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