Interface reports third quarter 2002 results
Consistent with the company's prior announcement, sales in the third quarter were $235.4 million, compared with $263.1 million in the third quarter 2001.
Operating income was $6 million in the third quarter, versus operating income of $10.7 million, before a restructuring charge, in the same period a year ago. In the third quarter 2001, Interface recorded a non-recurring pre-tax restructuring charge of approximately $62.1 million, or $0.83 per diluted share after tax.
Net loss for the third quarter 2002 was $2.7 million, or $0.05 per diluted share, compared with third quarter 2001 net income of $0.7 million, or $0.01 per diluted share, before the restructuring charge.
Including the restructuring charge, net loss for the third quarter 2001 was $41.3 million, or $0.83 per diluted share.
While the company's carpet tile business continued its positive momentum during the third quarter, sustained economic pressure and poor industry conditions led to lower than projected results in other business segments, according to Interface.
The company stated that its board of directors has approved a previously announced plan to rationalize manufacturing facilities in its fabrics division and further reduce its work force in both U.S. and international operations, primarily in the fabrics division.
Interface's carpet tile business experienced continued growth during the third quarter of 2002, with orders in the U.S. increasing 5 percent sequentially and 11 percent year-over-year. Strong sales volumes for carpet tile in the U.S. and Asia contributed positively to top-line performance, helping to stabilize margins both domestically and abroad, according to the company.
For the first nine months of 2002, sales were $710.4 million, compared with $856.9 million for the same period a year ago. Operating income for the nine-month period in 2002 was $28.7 million, versus operating income of $39.2 million, before the restructuring charge, for the comparable 2001 nine-month period. The loss for the nine-month period in 2002, prior to the cumulative effect of the accounting change relating to goodwill impairment required by Statement of Financial Accounting Standards No. 142, was $2.1 million, or $0.04 per diluted share.
After the cumulative effect of the SFAS No. 142 accounting change, net loss for the first nine months of 2002 was $57.5 million, or $1.15 per diluted share. This compares with net income of $6.4 million, or $0.13 per diluted share, before the restructuring charge, in the third quarter 2001.
Including the restructuring charge, net loss for the first nine months of 2001 was $35.6 million, or $0.71 per diluted share.
Interface declared no dividend for the third quarter 2002.