Interface Reports Fourth Quarter and Full Year 2023 Results
Fourth quarter highlights:
-
Net sales totaled
$325.1 million , down 3.1% year-over-year. - Gross profit margin increased to 37.9%, up 646basis points year-over-year.
-
GAAP earnings per share of
$0.33 ; Adjusted earnings per share of$0.41 . -
Generated
$27.8 million of cash from operations, repaid$29.6 million of debt in the quarter.
Fiscal Year:
-
Net sales totaled
$1,261.5 million , down 2.8% year-over-year. - Gross profit margin increased to 35.0%, up 124basis points year-over-year.
-
GAAP earnings per share of
$0.76 ; Adjusted earnings per share of$1.00 . -
Generated
$142.0 million of cash from operations, repaid$105.3 million of debt in the year.
“Strong fourth quarter performance rounded out a solid year, reinforcing our confidence that our strategy is working. Education remains a standout market segment with total sales up 5% for the full year, and notable strength in the
“Continued softness in the retail sector drove the majority of our year-over-year net sales decline both in the fourth quarter and the full year. While retail remains a small percentage of our overall revenue, it did have an outsized impact on net sales in the second half of 2023 and we expect this headwind to persist through the first half of 2024,” continued Hurd. “The team did a great job driving mix and holding price, and our margins further benefited from raw material cost deflation.”
“We are intently focused on commercial excellence and leveraging our strengths as one global organization. Our sales teams are aligned to our fastest growing markets and are working collaboratively across our brands to accelerate growth and drive value for our shareholders,” concluded Hurd.
“Interface ended 2023 with strong momentum on the gross profit margin line as we continued to hold price and drive favorable mix geographically and across product lines. During 2023, we delivered on our capital allocation commitments by aggressively paying down debt while investing in the business. Looking ahead, we remain focused on debt repayment and reinvesting in the business to drive automation and innovation for the future. We believe our strong financial position enables us to effectively capitalize on opportunities to accelerate growth,” added
Fourth Quarter 2023 Financial Summary
Sales: Fourth quarter net sales were
Gross profit margin was 37.9% in the fourth quarter, an increase of 646 basis points from the prior year period. Adjusted gross profit margin was 38.3%, an increase of 507 basis points from adjusted gross profit margin for the prior year period due primarily to input cost deflation, higher selling prices and product mix, partially offset by unfavorable fixed cost absorption.
Fourth quarter SG&A expenses were
Operating Income: Fourth quarter operating income was
Net Income and EPS: On a GAAP basis, the Company recorded net income of
Adjusted EBITDA: In the fourth quarter of 2023, adjusted EBITDA was
Fiscal Year 2023 Financial Summary
Sales: Net sales for fiscal year 2023 were
Gross profit margin was 35.0% for fiscal year 2023, an increase of 124 basis points from the prior year. Adjusted gross profit margin was 35.4%, an increase of 70 basis points from adjusted gross profit margin for the prior year period primarily due to input cost deflation, higher selling prices and product mix, partially offset by unfavorable fixed cost absorption.
SG&A expenses for fiscal year 2023 were
Operating Income: Operating income for fiscal year 2023 was
Net Income and EPS: On a GAAP basis, the Company recorded net income of
Adjusted EBITDA: In fiscal year 2023, adjusted EBITDA was
Cash and Debt: The Company had cash on hand of
Fourth Quarter 2023 Segment Results
AMS Results:
-
Q4 2023 net sales were
$188.2 million , down 3.9% versus$196.0 million in the prior year period. - Q4 2023 orders were up 3.1% compared to the prior year period on a currency neutral basis.
-
Q4 2023 operating income was
$28.0 million compared to$17.6 million in the prior year period. -
Q4 2023 AOI was
$29.2 million versus$27.9 million in the prior year period.
EAAA Results:
-
Q4 2023 net sales were
$136.9 million , down 1.9% versus$139.6 million in the prior year period. -
Currency fluctuations had an approximately
$4.6 million positive impact on Q4 2023 sales as compared to Q4 2022 sales due to strengthening of the Euro, partially offset by the weakening of the Australian dollar and Chinese Renminbi against theU.S. dollar. Excluding positive foreign currency impacts, EAAA's Q4 2023 net sales were down 5.2% year-over-year. -
Q4 2023 orders were down 4.1% compared to the prior year period on a currency neutral basis. EMEA was down 4.8%,
Australia was down 6.7%, partially offset byAsia , which was up 3.1%. -
Q4 2023 operating income was
$7.1 million compared to operating loss of$32.2 million in the prior year period. -
Q4 2023 AOI was
$11.8 million versus$4.1 million in the prior year period.
Fiscal Year 2023 Segment Results
AMS Results:
-
Net sales for fiscal year 2023 were
$737.0 million , down 2.2% versus$753.7 million in the prior year. -
Operating income for fiscal year 2023 was
$85.0 million compared to$92.2 million in the prior year. -
AOI for fiscal year 2023 was
$87.8 million versus$102.4 million in the prior year.
EAAA Results:
-
Net sales for fiscal year 2023 were
$524.5 million , down 3.6% versus$544.2 million in the prior year. -
Currency fluctuations had an approximately
$3.5 million positive impact on net sales in fiscal year 2023 as compared to the prior year, primarily due to the strengthening of the Euro, partially offset by the weakening of the Australian dollar and Chinese Renminbi against theU.S. dollar. Excluding positive foreign currency impacts, EAAA's net sales were down 4.2% year-over-year. -
Operating income for fiscal year 2023 was
$19.5 million compared to operating loss of$16.8 million in the prior year. -
AOI for fiscal year 2023 was
$28.6 million versus$30.1 million in the prior year.
Outlook
Interface anticipates the following for the first quarter of fiscal year 2024:
-
Net sales of
$280 million to$290 million . - Adjusted gross profit margin of approximately 36.0%.
-
Adjusted SG&A expenses of approximately
$83 million . -
Adjusted Interest & Other expenses of approximately
$8 million . - Fully diluted weighted average share count of approximately 58.8 million shares.
For the full fiscal year 2024:
-
Net sales of
$1.26 billion to$1.28 billion . - Adjusted gross profit margin of approximately 35.5% to 35.8%.
- Adjusted SG&A expenses of approximately 26.0% of net sales.
-
Adjusted Interest & Other expenses of approximately
$32 million . - An adjusted effective tax rate for the full year of approximately 29.0%.
-
Capital expenditures of approximately
$42 million .
Webcast and Conference Call Information
Interface will host a conference call on
Listeners may access the conference call live over the Internet at: https://events.q4inc.com/attendee/392372040, or through the Company's website at: https://investors.interface.com.
The archived version of the webcast will be available at these sites for one year beginning approximately one hour after the call ends.
Non-GAAP Financial Measures
Interface provides adjusted earnings per share, adjusted net income, adjusted operating income ("AOI"), adjusted gross profit, adjusted gross profit margin, adjusted SG&A expenses, currency neutral sales and currency neutral sales growth, net debt, and adjusted EBITDA as additional information regarding its operating results in this press release. These non-GAAP measures are not in accordance with – or alternatives to – GAAP measures, and may be different from non-GAAP measures used by other companies. Adjusted EPS, adjusted net income, and AOI exclude nora purchase accounting amortization, the
About Interface
Learn more about Interface at interface.com and blog.interface.com, nora by Interface at nora.com,
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. Forward-looking statements may be identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” "should," "goal," "aim," "objective," “seek,” “project,” “estimate,” “target,” “will” and similar expressions. Forward-looking statements in this press release include, without limitation, any projections we make regarding the Company’s 2024 first quarter and full year 2024 under “Outlook” above. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to the risks under the following subheadings in “Risk Factors” in the Company's Annual Report on Form 10-K for the fiscal year ended
Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company assumes no responsibility to update or revise forward-looking statements made in this press release and cautions readers not to place undue reliance on any such forward-looking statements.
- TABLES FOLLOW -
Consolidated Statements of Operations (Unaudited) |
Three Months Ended |
|
Twelve Months Ended |
||||||||||
(In thousands, except per share data) |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||
|
$ |
325,118 |
|
$ |
335,555 |
|
|
$ |
1,261,498 |
|
|
$ |
1,297,919 |
Cost of Sales |
|
201,966 |
|
|
230,112 |
|
|
|
820,429 |
|
|
|
860,186 |
Gross Profit |
|
123,152 |
|
|
105,443 |
|
|
|
441,069 |
|
|
|
437,733 |
Selling, General & Administrative Expenses |
|
88,000 |
|
|
83,479 |
|
|
|
339,049 |
|
|
|
324,190 |
Restructuring, asset impairment, other (gains) and charges |
|
— |
|
|
373 |
|
|
|
(2,502 |
) |
|
|
1,965 |
|
|
— |
|
|
36,180 |
|
|
|
— |
|
|
|
36,180 |
Operating Income (Loss) |
|
35,152 |
|
|
(14,589 |
) |
|
|
104,522 |
|
|
|
75,398 |
Interest Expense |
|
6,801 |
|
|
8,142 |
|
|
|
31,787 |
|
|
|
29,929 |
Other Expense, net |
|
1,407 |
|
|
1,864 |
|
|
|
9,081 |
|
|
|
3,552 |
Income (Loss) Before Taxes |
|
26,944 |
|
|
(24,595 |
) |
|
|
63,654 |
|
|
|
41,917 |
Income Tax Expense |
|
7,389 |
|
|
21 |
|
|
|
19,137 |
|
|
|
22,357 |
Net Income (Loss) |
$ |
19,555 |
|
$ |
(24,616 |
) |
|
$ |
44,517 |
|
|
$ |
19,560 |
|
|
|
|
|
|
|
|
||||||
Earnings (Loss) Per Share – Basic |
$ |
0.34 |
|
$ |
(0.42 |
) |
|
$ |
0.77 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
||||||
Earnings (Loss) Per Share – Diluted |
$ |
0.33 |
|
$ |
(0.42 |
) |
|
$ |
0.76 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
||||||
Common Shares Outstanding – Basic |
|
58,108 |
|
|
58,166 |
|
|
|
58,092 |
|
|
|
58,865 |
Common Shares Outstanding – Diluted |
|
58,636 |
|
|
58,166 |
|
|
|
58,335 |
|
|
|
58,865 |
|
|
|
|
|
|
|
|
Consolidated Balance Sheets (Unaudited) |
|
|
|
||
(In thousands) |
|
|
|
||
Assets |
|
|
|
||
Cash |
$ |
110,498 |
|
$ |
97,564 |
Accounts Receivable |
|
163,386 |
|
|
182,807 |
Inventory |
|
279,079 |
|
|
306,327 |
Other Current Assets |
|
30,895 |
|
|
30,339 |
Total Current Assets |
|
583,858 |
|
|
617,037 |
Property, Plant & Equipment |
|
291,140 |
|
|
297,976 |
Operating Lease Right-of-Use Asset |
|
87,519 |
|
|
81,644 |
|
|
105,448 |
|
|
102,417 |
Other Intangibles, net |
|
56,255 |
|
|
59,778 |
Other Assets |
|
105,875 |
|
|
107,651 |
Total Assets |
$ |
1,230,095 |
|
$ |
1,266,503 |
|
|
|
|
||
Liabilities |
|
|
|
||
Accounts Payable |
$ |
62,912 |
|
$ |
78,264 |
Accrued Liabilities |
|
130,890 |
|
|
120,138 |
Current Portion of Operating Lease Liabilities |
|
12,347 |
|
|
11,857 |
Current Portion of Long-Term Debt |
|
8,572 |
|
|
10,211 |
Total Current Liabilities |
|
214,721 |
|
|
220,470 |
Long-Term Debt |
|
408,641 |
|
|
510,003 |
Operating Lease Liabilities |
|
78,269 |
|
|
72,305 |
Other Long-Term Liabilities |
|
102,517 |
|
|
102,188 |
Total Liabilities |
|
804,148 |
|
|
904,966 |
Shareholders’ Equity |
|
425,947 |
|
|
361,537 |
Total Liabilities and Shareholders’ Equity |
$ |
1,230,095 |
|
$ |
1,266,503 |
Consolidated Statements of Cash Flows (Unaudited) |
|
Twelve Months Ended |
||||||
(In thousands) |
|
|
|
|
||||
OPERATING ACTIVITIES |
|
|
|
|
||||
Net Income |
|
$ |
44,517 |
|
|
$ |
19,560 |
|
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: |
|
|
|
|
||||
Depreciation and Amortization |
|
|
40,774 |
|
|
|
40,337 |
|
Share-Based Compensation Expense |
|
|
10,265 |
|
|
|
8,527 |
|
(Gain) Loss on Disposal of Property, Plant and Equipment, net |
|
|
(2,252 |
) |
|
|
4,319 |
|
Loss on Foreign Subsidiary Liquidation |
|
|
6,221 |
|
|
|
— |
|
Bad Debt Expense |
|
|
53 |
|
|
|
26 |
|
|
|
|
— |
|
|
|
36,180 |
|
Amortization of Acquired Intangible Assets |
|
|
5,172 |
|
|
|
5,038 |
|
Deferred Income Taxes and Other Non-Cash Items |
|
|
(8,809 |
) |
|
|
13,414 |
|
Change in Working Capital |
|
|
|
|
||||
Accounts Receivable |
|
|
21,798 |
|
|
|
(17,489 |
) |
Inventories |
|
|
31,040 |
|
|
|
(49,651 |
) |
Prepaid Expenses and Other Current Assets |
|
|
(302 |
) |
|
|
7,020 |
|
Accounts Payable and Accrued Expenses |
|
|
(6,443 |
) |
|
|
(24,220 |
) |
Cash Provided by Operating Activities |
|
|
142,034 |
|
|
|
43,061 |
|
INVESTING ACTIVITIES |
|
|
|
|
||||
Capital Expenditures |
|
|
(26,107 |
) |
|
|
(18,437 |
) |
Proceeds from Sale of Property, Plant and Equipment |
|
|
6,593 |
|
|
|
— |
|
Cash Used in Investing Activities |
|
|
(19,514 |
) |
|
|
(18,437 |
) |
FINANCING ACTIVITIES |
|
|
|
|
||||
Revolving Loan Borrowing |
|
|
90,000 |
|
|
|
206,031 |
|
Revolving Loan Repayments |
|
|
(114,381 |
) |
|
|
(189,281 |
) |
Term Loan Repayments |
|
|
(80,927 |
) |
|
|
(13,191 |
) |
Repurchase of Common Stock |
|
|
— |
|
|
|
(17,171 |
) |
Tax Withholding Payments for Share-Based Compensation |
|
|
(1,514 |
) |
|
|
(402 |
) |
Debt Issuance Costs |
|
|
— |
|
|
|
(1,032 |
) |
Dividends Paid |
|
|
(2,323 |
) |
|
|
(2,355 |
) |
Finance Lease Payments |
|
|
(2,419 |
) |
|
|
(2,089 |
) |
Cash Used in Financing Activities |
|
|
(111,564 |
) |
|
|
(19,490 |
) |
Net Cash Provided by Operating, Investing and Financing Activities |
|
|
10,956 |
|
|
|
5,134 |
|
Effect of Exchange Rate Changes on Cash |
|
|
1,978 |
|
|
|
(4,822 |
) |
CASH AND CASH EQUIVALENTS |
|
|
|
|
||||
Net Change During the Period |
|
|
12,934 |
|
|
|
312 |
|
Balance at Beginning of Period |
|
|
97,564 |
|
|
|
97,252 |
|
Balance at End of Period |
|
$ |
110,498 |
|
|
$ |
97,564 |
|
Segment Results (Unaudited)
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
(in thousands) |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
AMS |
$ |
188,239 |
|
$ |
195,972 |
|
$ |
736,955 |
|
$ |
753,740 |
EAAA |
|
136,879 |
|
|
139,583 |
|
|
524,543 |
|
|
544,179 |
Consolidated |
$ |
325,118 |
|
$ |
335,555 |
|
$ |
1,261,498 |
|
$ |
1,297,919 |
|
|
|
|
|
|
|
|
||||
Segment AOI* |
|
|
|
|
|
|
|
||||
AMS |
$ |
29,168 |
|
$ |
27,868 |
|
$ |
87,789 |
|
$ |
102,370 |
EAAA |
|
11,803 |
|
|
4,150 |
|
|
28,608 |
|
|
30,058 |
Consolidated AOI |
$ |
40,971 |
|
$ |
32,018 |
|
$ |
116,397 |
|
$ |
132,428 |
|
|
|
|
|
|
|
|
||||
* Note: Segment AOI includes allocation of corporate SG&A expenses |
|
|
|
|
|
Twelve Months Ended |
|
% of Total |
|
|
|
|
|
AMS |
58 % |
|
EMEA |
30 % |
|
APAC |
12 % |
|
Consolidated |
100 % |
Gross Billings by Customer Vertical (Unaudited)
|
Twelve Months Ended |
|
% of Total |
|
|
Gross Billings |
|
|
Corporate/Office |
49 % |
|
Education |
18 % |
|
Healthcare |
10 % |
|
Government |
6 % |
|
Retail |
3 % |
|
Residential/Living |
4 % |
|
Hospitality |
3 % |
|
Consumer Residential |
2 % |
|
Transportation |
2 % |
|
Other |
3 % |
|
Consolidated Gross Billings |
100 % |
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Fourth Quarter 2023 |
|
Fourth Quarter 2022 |
|||||||||||||||||||||||||||||
|
|
|
|
Adjustments |
|
|
|
|
|
|
Adjustments |
|
|
|||||||||||||||||||
|
Gross
|
SG&A |
Operating
|
Pre-tax |
Tax
|
Net
|
Diluted
|
|
Gross
|
SG&A |
Operating
|
Pre-tax |
Tax
|
Net
|
Diluted
|
|||||||||||||||||
GAAP As Reported |
$ |
123.2 |
$ |
88.0 |
|
$ |
35.2 |
|
|
$ |
19.6 |
$ |
0.33 |
|
$ |
105.4 |
$ |
83.5 |
|
$ |
(14.6 |
) |
|
|
$ |
(24.6 |
) |
$ |
(0.42 |
) |
||
Non-GAAP Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Purchase Accounting Amortization |
|
1.3 |
|
— |
|
|
1.3 |
1.3 |
(0.4 |
) |
|
0.9 |
|
0.02 |
|
|
1.2 |
|
— |
|
|
1.2 |
|
1.2 |
(0.4 |
) |
|
0.9 |
|
|
0.01 |
|
Restructuring, Asset Impairment, Severance, and Other, net |
|
— |
|
(4.4 |
) |
|
4.4 |
4.4 |
(1.2 |
) |
|
3.2 |
|
0.06 |
|
|
— |
|
(3.7 |
) |
|
4.1 |
|
4.1 |
(0.6 |
) |
|
3.5 |
|
|
0.06 |
|
|
|
— |
|
— |
|
|
— |
— |
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
36.2 |
|
36.2 |
(2.1 |
) |
|
34.1 |
|
|
0.59 |
|
Cyber Event Impact |
|
— |
|
(0.1 |
) |
|
0.1 |
0.1 |
— |
|
|
0.1 |
|
— |
|
|
4.8 |
|
(0.3 |
) |
|
5.1 |
|
5.1 |
(1.3 |
) |
|
3.8 |
|
|
0.07 |
|
Loss on Extinguishment of Debt |
|
— |
|
— |
|
|
— |
— |
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
0.1 |
— |
|
|
0.1 |
|
|
— |
|
Loss on Discontinuance of Interest Rate Swaps |
|
— |
|
— |
|
|
— |
— |
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
0.4 |
(0.1 |
) |
|
0.3 |
|
|
0.01 |
|
Adjustments Subtotal * |
|
1.3 |
|
(4.5 |
) |
|
5.8 |
5.8 |
(1.6 |
) |
|
4.2 |
|
0.08 |
|
|
6.0 |
|
(4.1 |
) |
|
46.6 |
|
47.1 |
(4.4 |
) |
|
42.7 |
|
|
0.73 |
|
Adjusted (non-GAAP) * |
$ |
124.4 |
$ |
83.5 |
|
$ |
41.0 |
|
|
$ |
23.8 |
$ |
0.41 |
|
$ |
111.4 |
$ |
79.4 |
|
$ |
32.0 |
|
|
|
$ |
18.1 |
|
$ |
0.31 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
|
|
|
|
|
|
|
|
|
Fiscal Year 2023 |
|
Fiscal Year 2022 |
|||||||||||||||||||||||||||||
|
|
|
|
Adjustments |
|
|
|
|
|
|
Adjustments |
|
|
|||||||||||||||||||
|
Gross
|
SG&A |
Operating
|
Pre-tax |
Tax
|
Net
|
Diluted
|
|
Gross
|
SG&A |
Operating
|
Pre-tax |
Tax
|
Net
|
Diluted
|
|||||||||||||||||
GAAP As Reported |
$ |
441.1 |
$ |
339.0 |
|
$ |
104.5 |
|
|
$ |
44.5 |
|
$ |
0.76 |
|
|
$ |
437.7 |
$ |
324.2 |
|
$ |
75.4 |
|
|
$ |
19.6 |
$ |
0.33 |
|||
Non-GAAP Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Purchase Accounting Amortization |
|
5.2 |
|
— |
|
|
5.2 |
5.2 |
|
(1.5 |
) |
|
3.7 |
|
|
0.06 |
|
|
|
5.0 |
|
— |
|
|
5.0 |
5.0 |
(1.5 |
) |
|
3.6 |
|
0.06 |
Thailand Plant Closure Inventory Write-down |
|
— |
|
— |
|
|
— |
— |
|
— |
|
|
— |
|
|
— |
|
|
|
2.5 |
|
— |
|
|
2.5 |
2.5 |
— |
|
|
2.5 |
|
0.04 |
|
|
— |
|
— |
|
|
— |
— |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
— |
|
|
36.2 |
36.2 |
(2.1 |
) |
|
34.1 |
|
0.58 |
Restructuring, Asset Impairment, Severance, and Other, net |
|
— |
|
(8.1 |
) |
|
5.6 |
5.6 |
|
(1.6 |
) |
|
4.1 |
|
|
0.07 |
|
|
|
— |
|
(6.2 |
) |
|
8.2 |
8.2 |
(0.6 |
) |
|
7.6 |
|
0.13 |
Cyber Event Impact |
|
— |
|
(1.1 |
) |
|
1.1 |
1.1 |
|
(0.3 |
) |
|
0.8 |
|
|
0.01 |
|
|
|
4.8 |
|
(0.3 |
) |
|
5.1 |
5.1 |
(1.3 |
) |
|
3.8 |
|
0.07 |
Property Casualty Loss(1) |
|
— |
|
— |
|
|
— |
(0.5 |
) |
0.1 |
|
|
(0.4 |
) |
|
(0.01 |
) |
|
|
— |
|
— |
|
|
— |
— |
— |
|
|
— |
|
— |
Loss on Foreign Subsidiary Liquidation (2) |
|
— |
|
— |
|
|
— |
6.2 |
|
(1.1 |
) |
|
5.1 |
|
|
0.09 |
|
|
|
— |
|
— |
|
|
— |
— |
— |
|
|
— |
|
— |
Loss on Extinguishment of Debt |
|
— |
|
— |
|
|
— |
— |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
— |
|
|
— |
0.1 |
— |
|
|
0.1 |
|
— |
Loss on Discontinuance of Interest Rate Swaps |
|
— |
|
— |
|
|
— |
1.0 |
|
(0.2 |
) |
|
0.8 |
|
|
0.01 |
|
|
|
— |
|
— |
|
|
— |
2.8 |
(0.7 |
) |
|
2.1 |
|
0.04 |
Adjustments Subtotal * |
|
5.1 |
|
(9.2 |
) |
|
11.9 |
18.6 |
|
(4.5 |
) |
|
14.0 |
|
|
0.24 |
|
|
|
12.3 |
|
(6.6 |
) |
|
57.0 |
60.0 |
(6.1 |
) |
|
53.9 |
|
0.92 |
Adjusted (non-GAAP) * |
$ |
446.2 |
$ |
329.8 |
|
$ |
116.4 |
|
|
$ |
58.6 |
|
$ |
1.00 |
|
|
$ |
450.1 |
$ |
317.6 |
|
$ |
132.4 |
|
|
$ |
73.4 |
$ |
1.25 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(1) Represents insurance recovery net of loss recognized in the first quarter of 2023. |
||||||||||||||||||||||||||||||||
(2) |
||||||||||||||||||||||||||||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
Reconciliation of Segment GAAP Financial Measures to Non-GAAP Financial Measures ("Currency Neutral
(In millions)
|
Fourth Quarter 2023 |
|
Fourth Quarter 2022 |
||||||||||||
|
AMS
|
EAAA
|
Consolidated * |
|
AMS
|
EAAA
|
Consolidated * |
||||||||
|
$ |
188.2 |
$ |
136.9 |
|
$ |
325.1 |
|
|
$ |
196.0 |
$ |
139.6 |
$ |
335.6 |
Impact of Changes in Currency |
|
— |
|
(4.6 |
) |
|
(4.6 |
) |
|
|
— |
|
— |
|
— |
Currency Neutral |
$ |
188.3 |
$ |
132.4 |
|
$ |
320.6 |
|
|
$ |
196.0 |
$ |
139.6 |
$ |
335.6 |
|
|
|
|
|
|
|
|
||||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
|
|
|
|
|
Fiscal Year 2023 |
|
Fiscal Year 2022 |
||||||||||||
|
AMS
|
EAAA
|
Consolidated * |
|
AMS
|
EAAA
|
Consolidated * |
||||||||
|
$ |
737.0 |
$ |
524.5 |
|
$ |
1,261.5 |
|
|
$ |
753.7 |
$ |
544.2 |
$ |
1,297.9 |
Impact of Changes in Currency |
|
2.1 |
|
(3.5 |
) |
|
(1.4 |
) |
|
|
— |
|
— |
|
— |
Currency Neutral |
$ |
739.1 |
$ |
521.0 |
|
$ |
1260.1 |
|
|
$ |
753.7 |
$ |
544.2 |
$ |
1297.9 |
|
|
|
|
|
|
|
|
||||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
|
|
|
|
|
Fourth Quarter 2023 |
Fourth Quarter 2022 |
|||||||||||||
|
AMS
|
EAAA
|
Consolidated * |
AMS
|
EAAA
|
Consolidated * |
|||||||||
GAAP Operating Income (Loss) |
$ |
28.0 |
$ |
7.1 |
$ |
35.2 |
$ |
17.6 |
$ |
(32.2 |
) |
$ |
(14.6 |
) |
|
Non-GAAP Adjustments |
|
|
|
|
|
|
|||||||||
Purchase Accounting Amortization |
|
— |
|
1.3 |
|
1.3 |
|
— |
|
1.2 |
|
|
1.2 |
|
|
Cyber Event Impact |
|
0.1 |
|
— |
|
0.1 |
|
3.9 |
|
1.2 |
|
|
5.1 |
|
|
|
|
— |
|
— |
|
— |
|
3.8 |
|
32.3 |
|
|
36.2 |
|
|
Restructuring, Asset Impairment, Severance, and Other, net |
|
1.1 |
|
3.4 |
|
4.4 |
|
2.5 |
|
1.6 |
|
|
4.1 |
|
|
Adjustments Subtotal * |
|
1.1 |
|
4.7 |
|
5.8 |
|
10.3 |
|
36.4 |
|
|
46.6 |
|
|
AOI * |
$ |
29.2 |
$ |
11.8 |
$ |
41.0 |
$ |
27.9 |
$ |
4.1 |
|
$ |
32.0 |
|
|
|
|
|
|
|
|
|
|||||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
|
|
|
|
Fiscal Year 2023 |
|
Fiscal Year 2022 |
|||||||||||
|
AMS
|
EAAA
|
Consolidated * |
|
AMS
|
EAAA
|
Consolidated * |
|||||||
GAAP Operating Income (Loss) |
$ |
85.0 |
$ |
19.5 |
$ |
104.5 |
|
$ |
92.2 |
$ |
(16.8 |
) |
$ |
75.4 |
Non-GAAP Adjustments |
|
|
|
|
|
|
|
|||||||
Purchase Accounting Amortization |
|
— |
|
5.2 |
|
5.2 |
|
|
— |
|
5.0 |
|
|
5.0 |
Thailand Plant Closure Inventory Write-down |
|
— |
|
— |
|
— |
|
|
— |
|
2.5 |
|
|
2.5 |
Cyber Event Impact |
|
0.6 |
|
0.5 |
|
1.1 |
|
|
3.9 |
|
1.2 |
|
|
5.1 |
|
|
— |
|
— |
|
— |
|
|
3.8 |
|
32.3 |
|
|
36.2 |
Restructuring, Asset Impairment, Severance, and Other, net |
|
2.1 |
|
3.5 |
|
5.6 |
|
|
2.4 |
|
5.8 |
|
|
8.2 |
Adjustments Subtotal * |
|
2.8 |
|
9.1 |
|
11.9 |
|
|
10.1 |
|
46.9 |
|
|
57.0 |
AOI * |
$ |
87.8 |
$ |
28.6 |
$ |
116.4 |
|
$ |
102.4 |
$ |
30.1 |
|
$ |
132.4 |
|
|
|
|
|
|
|
|
|||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
|
|
|
|
|
Fourth Quarter
|
|
Fourth Quarter
|
|
Fiscal Year
|
|
Fiscal Year
|
|
|||||||
Net Income (Loss) as Reported (GAAP) |
$ |
19.6 |
|
|
$ |
(24.6 |
) |
|
$ |
44.5 |
|
|
$ |
19.6 |
|
Income Tax Expense |
|
7.4 |
|
|
|
— |
|
|
|
19.1 |
|
|
|
22.4 |
|
Interest Expense (including debt issuance cost amortization) |
|
6.8 |
|
|
|
8.1 |
|
|
|
31.8 |
|
|
|
29.9 |
|
Depreciation and Amortization (excluding debt issuance cost amortization) |
|
9.7 |
|
|
|
9.3 |
|
|
|
38.7 |
|
|
|
38.7 |
|
Share-based Compensation Expense |
|
2.9 |
|
|
|
1.9 |
|
|
|
10.3 |
|
|
|
8.5 |
|
Purchase Accounting Amortization |
|
1.3 |
|
|
|
1.2 |
|
|
|
5.2 |
|
|
|
5.0 |
|
|
|
— |
|
|
|
36.2 |
|
|
|
— |
|
|
|
36.2 |
|
Restructuring, Asset Impairment, Severance, and Other, net |
|
4.4 |
|
|
|
4.1 |
|
|
|
5.6 |
|
|
|
8.2 |
|
Thailand Plant Closure Inventory Write-down |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.5 |
|
Cyber Event Impact |
|
0.1 |
|
|
|
5.1 |
|
|
|
1.1 |
|
|
|
5.1 |
|
Property Casualty Loss(1) |
|
— |
|
|
|
— |
|
|
|
(0.5 |
) |
|
|
— |
|
Loss on Foreign Subsidiary Liquidation (2) |
|
— |
|
|
|
— |
|
|
|
6.2 |
|
|
|
— |
|
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (AEBITDA)* |
$ |
52.2 |
|
|
$ |
41.3 |
|
|
$ |
162.0 |
|
|
$ |
176.1 |
|
|
|
|
|
|
|
|
|
|
|||||||
(1) Represents insurance recovery net of loss recognized in the first quarter of 2023. |
|
|
|
|
|
||||||||||
(2) |
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
|
As of |
|
|
|
|
|
|
|
|||||||
Total Debt |
$ |
417.2 |
|
|
|
|
|
|
|
|
|||||
Total Cash on Hand |
|
(110.5 |
) |
|
|
|
|
|
|
|
|||||
Total Debt, Net of Cash on Hand (Net Debt) |
$ |
306.7 |
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Total Debt / Fiscal Year 2023 Net Income |
9.4x |
|
|
|
|
|
|
|
|||||||
Net Debt / Fiscal Year 2023 AEBITDA |
1.9x |
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Note: Sum of reconciling items may differ from total due to rounding of individual components |
|
|
|
|
|
||||||||||
|
The impacts of changes in foreign currency presented in the tables are calculated based on applying the prior year period's average foreign currency exchange rates to the current year period.
The Company believes that the above non-GAAP performance measures, which management uses in managing and evaluating the Company’s business, may provide users of the Company’s financial information with additional meaningful basis for comparing the Company’s current results and results in a prior period, as these measures reflect factors that are unique to one period relative to the comparable period. However, these non‑GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227456378/en/
Media Contact:
Christine.Needles@interface.com
+1 404-491-4660
Investor Contact:
Chief Financial Officer
Bruce.Hausmann@interface.com
+1 770-437-6802
Source: