Interface (NASDAQ: TILE) reported Q4 EPS of $0.41, $0.02 better than the analyst estimate of $0.39. Revenue for the quarter came in at $337 million versus the consensus estimate of $344.6 million.

"2018 was a great year for Interface and it provides solid momentum as we enter into 2019. We continue to deliver strong results, demonstrating that our value creation strategy is winning in the marketplace," said Jay Gould, CEO of Interface. "2018\'s full year organic sales were up 7% and adjusted EPS was $1.49. Q4 also ended strong with organic growth of 2% and adjusted EPS of $0.41. Our strategic investments in 2018, which included the nora acquisition, advancements in our manufacturing capabilities, and the transformation of our selling system, are successfully fueling growth. Building on a strong 2018 and an energizing kick-off to 2019, we are bringing momentum to the market and remain confident that we can continue to take share in carpet tile, LVT and rubber flooring. Looking forward over a four to six year time horizon, we will be planning and seeking to achieve gross profit margin of 42% and operating income margin of 15%."

Gould added, "We continue to lead industry consistent with our mission – Climate Take Back™ – to create a climate fit for life. We took a strong step forward in achieving our mission in 2018 as we announced that all of our carpet tile and LVT products are carbon neutral at no additional cost to our customers through our industry-first Carbon Neutral Floors™ program. In 2019, we have expanded the program to include all nora® rubber flooring products. We are the only global flooring company and one of the few beyond our industry to offer every flooring product that we make or sell as carbon neutral across the entire product lifecycle. These financial and operational achievements are incredible milestones for Interface, and they continue to differentiate us, and propel us forward."

"In addition to 2018's operational and financial achievements, our balance sheet remains strong and allows us to continue funding our value creation strategy. At the end of 2018, total borrowings were $619 million, down from $649 million at the end of the third quarter," said Bruce Hausmann, CFO of Interface.

Fiscal Year 2019 Outlook

Looking ahead to the full year of 2019, Interface is targeting to achieve:

• Total net sales growth, including nora, of 16 – 18%
• Organic sales growth from carpet and LVT of 2 – 4%
• Adjusted gross profit margin of 40 – 40.5%
• Adjusted SG&A expenses of 28 – 28.5% as a percentage of net sales

Full year Company interest and other expenses are projected to be $28 million to $29 million, and the effective tax rate is anticipated to be approximately 28%. Capital expenditures for the full year are forecasted to be $65 million to $75 million.

Based on prior year comparables and planned investments in the first quarter of 2019, the Company anticipates adjusted EPS in the first quarter of 2019 to be down compared to the first quarter of 2018 by approximately 13 to 16 cents, with stronger adjusted operating income and double digit adjusted EPS growth percentage in the second, third and fourth quarters.

For earnings history and earnings-related data on Interface (TILE) click here.