Interface Inc. reported significant financial improvements in its third quarter and year-to-date results for the period ending September 29, 2024. The company achieved net sales of $344.3 million for the third quarter, reflecting a 10.7% increase from $311.0 million in the same quarter of the previous year. For the nine months ended September 29, 2024, net sales totaled $980.6 million, up 4.7% from $936.4 million in the prior year.
Gross profit for the third quarter was $127.6 million, representing 37.1% of net sales, an increase from 35.5% in the same quarter of 2023. The nine-month gross profit also improved to $360.6 million, or 36.8% of net sales, compared to 34.0% in the prior year. Operating income for the third quarter rose to $42.2 million, up from $31.0 million in Q3 2023, while year-to-date operating income reached $104.8 million, compared to $69.4 million in the same period last year.
Net income for the third quarter was $28.4 million, or $0.48 per diluted share, compared to $9.9 million, or $0.17 per diluted share, in Q3 2023. For the nine months, net income was $65.2 million, or $1.11 per diluted share, up from $25.0 million, or $0.43 per diluted share, in the prior year.
The Americas segment (AMS) was a key driver of growth, with net sales increasing by 17.9% to $210.2 million in Q3 2024, and 8.4% to $595.1 million for the nine months. The adjusted operating income for AMS in Q3 was $32.2 million, a 38.0% increase year-over-year. The Europe, Africa, Asia, and Australia (EAAA) segment also showed improvement, with Q3 net sales rising to $134.1 million and operating income increasing to $11.3 million.
Interface's total assets as of September 29, 2024, were $1.24 billion, up from $1.23 billion at the end of 2023. Total liabilities decreased to $741.7 million from $804.1 million, while total shareholders' equity increased to $501.6 million from $425.9 million. The company reported cash and cash equivalents of $115.6 million, a slight increase from $110.5 million at the end of 2023.
The company also noted a decrease in interest expense, which fell to $5.7 million in Q3 2024 from $8.1 million in Q3 2023, contributing to improved profitability. Additionally, the effective tax rate decreased to 21.2% for Q3 2024, down from 38.7% in the prior year, due to favorable tax adjustments.
Interface continues to evaluate its cost structure and global manufacturing footprint to address macroeconomic challenges, including inflation and geopolitical issues. The company has not repurchased any shares under its $100 million share repurchase program during the third quarter.
About INTERFACE INC
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