Interface reports fourth quarter and year-end 2002 results
Additionally, the company announced its intent to sell or otherwise create a joint venture or strategic alliance for its raised flooring business, Interface Architectural Resources. This business represented approximately 2.4 and 4 percent of revenue for the full years 2002 and 2001, respectively.
In the fourth quarter 2002, the company's sales were $232.3 million, compared with $240.4 million in the fourth quarter 2001. In connection with its previously announced restructuring initiative designed to further rationalize manufacturing operations in its fabrics division and further reduce worldwide workforce, the company recorded a non-recurring pre-tax restructuring charge of $23.4 million, equivalent to $0.31 per share after- tax, during the fourth quarter 2002.
Operating income, excluding the restructuring charge in each respective period, was $7.4 million in the fourth quarter 2002, versus $10.1 million in the fourth quarter 2001. In the fourth quarter 2001, the company recorded a non-recurring pre-tax restructuring charge of $2.9 million, or $0.02 per share after tax.
Loss from continuing operations was $1.8 million, or $0.04 per share, in the fourth quarter 2002, compared with income from continuing operations of $1.6 million, or $0.03 per share, in the fourth quarter 2001, excluding the respective restructuring charges. With the respective restructuring charges included, the company's continuing operations recognized a loss of $17.4 million for the fourth quarter 2002, compared with a loss from continuing operations of $0.3 million for the fourth quarter 2001.
As required by Statement of Financial Accounting Standards ("SFAS") No. 144, the company reported the results of operations for the raised flooring business as "discontinued operations." Included in those results is an impairment loss of $18.3 million associated with the write-down of the carrying value of the assets of that business to their net realizable value. As a result, the net loss was $30.2 million, or $0.60 per share, during the fourth quarter 2002, compared with net loss of $0.7 million, or $0.01 per share, during the fourth quarter 2001.
Sales for the 2002 fiscal year were $924.1 million, compared with $1,058.8 million in 2001. Operating income, excluding the respective restructuring charges in each year, was $38.6 million in 2002, versus $53.5 million in 2001. As noted above, the company recorded a restructuring charge of $23.4 million, or $0.31 per share after-tax, in 2002, while restructuring charges in 2001 were $54.6 million, or $0.72 per share after-tax.
For the 2002 fiscal year, loss from continuing operations before the cumulative effect of the SFAS No. 142 accounting change, excluding the restructuring charge, was $2.1 million, or $0.04 per share. During 2002, the company's implementation of SFAS No. 142 resulted in a $55.4 million after-tax write-down (or $1.10 per share), primarily related to the impairment of goodwill. This compares with income from continuing operations for the 2001 fiscal year, excluding restructuring charges, of $8.7 million, or $0.17 per share. Including the respective restructuring charges in each period, loss from continuing operations before the cumulative effect of the SFAS No. 142 accounting change was $17.8 million, versus loss from continuing operations of $25.9 million in fiscal 2001. Net loss for the full year 2002 was $87.7 million, or $1.75 per share. This compares with 2001 net loss of $36.3 million, or $0.72 per share, including restructuring charges.
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