Interface (NASDAQ: TILE) reported Q3 EPS of $0.28, $0.08 better than the analyst estimate of $0.20. Revenue for the quarter came in at $279 million versus the consensus estimate of $272.63 million.

Quarterly Highlights:

• Strong liquidity of $378 million at quarter end comprised of $104 million in cash and $275 million of availability under the revolving credit facility
• Q3 2020 GAAP earnings per share of $0.10; Q3 2020 adjusted earnings per share of $0.28
• Cash generated by operating activities of $65 million
• Repaid $43 million of debt during the quarter
• Launched world's first carbon negative carpet tile, measured cradle to gate

"During the third quarter, we intensified our focus on new product innovation, our customers and investing in initiatives to position Interface for long-term success, while remaining focused on the operational and financial levers within our control. Our operations teams have done an outstanding job of providing best-in-class service and ensuring safety, while flexing our cost structure to maintain healthy margins. We generated $65 million of cash from operations and repaid $43 million of debt during the quarter," commented Dan Hendrix, Chairman and CEO of Interface.

"Looking forward, we are encouraged by recent data points and positive trends in our end markets indicating early signs of stabilization. We reached an important sustainability milestone with the launch of our carbon negative carpet tile during the quarter and have been encouraged by early demand from our customers. We remain committed to product innovation and expanding our presence in a diversified group of end markets with strong growth potential," Mr. Hendrix concluded.

"We effectively controlled costs and closely managed our cash flow during this ongoing period of softened demand," added Bruce Hausmann, CFO of Interface. "Looking ahead, we expect the fourth quarter to track similarly to the third quarter. Encouragingly, third quarter orders were up 11% on a sequential basis compared with the previous quarter."

Outlook

Given the continued disruption of the global economy due to COVID-19, and the significant level of uncertainty created by the global pandemic, Interface is not providing fiscal year 2020 guidance.

The company has implemented several cost-reducing initiatives to align with reduced customer demand and anticipates full-year 2020 adjusted SG&A expenses of approximately $310 million. In addition, the company has moderated its capital spending plans and currently anticipates capital expenditures of $60 million for the full year 2020.

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