Interface (NASDAQ: TILE) reported Q1 EPS of $0.17, $0.13 better than the analyst estimate of $0.04. Revenue for the quarter came in at $253.26 million versus the consensus estimate of $252.7 million.

Quarterly Highlights:

• Q1 2021 GAAP earnings per share of $0.12; Q1 2021 adjusted earnings per share of $0.17.
• Orders increased 11% from Q4 2020 to Q1 2021.
• Strong liquidity of $405 million at quarter end comprised of $107 million in cash and $298 million of availability under the revolving credit facility.
• Cash generated by operating activities of $25 million in Q1 2021.

"We delivered solid results for the first quarter 2021 benefiting from our reduced cost structure and a currency tailwind. The dynamic market environment is beginning to show tangible signs of recovery, including an 11% sequential increase in orders, primarily driven by rising demand in the Americas and parts of Europe and APAC," commented Dan Hendrix, Chairman and CEO of Interface.

"We remain committed to product development and have a robust launch pipeline planned throughout 2021. Additionally, our carbon neutral and carbon negative products are increasingly being written into specifications as major companies make good on their carbon reduction commitments. And we are winning in the dealer network as evidenced by the consistent increase in our Net Promoter ScoreSM since the third quarter of 2020."

"We are encouraged by the positive indicators we are seeing in many of our market verticals for an eventual economic recovery. Orders and overall customer activity increased notably from last quarter making us optimistic on improved performance in the second half of the calendar year," Hendrix concluded.

"The actions we have taken to reduce our cost structure, strengthen our balance sheet and improve cash flows have created significant earnings power for Interface as our markets continue to recover. We are well positioned for growth in the back half of 2021," added Bruce Hausmann, CFO of Interface.

GUIDANCE:

Interface sees Q2 2021 revenue of $290 million, versus the consensus of $278.03 million.

There continues to be disruption in the global economy due to COVID-19, and a significant level of uncertainty created by the global pandemic. As the Company continues to monitor this situation, it is anticipating:

• Net sales in the second quarter of 2021 of approximately $290 million.
• Adjusted gross profit percentage in the second quarter of 2021 of approximately 38.5%.
• Adjusted SG&A expense for the full year of 2021 of approximately $325 million, with the remaining portion spread fairly evenly across the second quarter, third quarter and fourth quarter of 2021.
• Interest & Other expense for the full year of 2021 of approximately $34 million.
• The adjusted effective tax rate for the full year of 2021 is anticipated to be approximately 27%.
• Capital expenditures of approximately $30 million for full year of 2021.

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