Boston, MA 10/09/2014 (wallstreetpr) – Interface, Inc. (NASDAQ:TILE) provided updates on its third-quarter revenues. It warned that the revenues in the third-quarter can see a fall due to a reduced order book and delayed deliveries. Also, it is working on the expanding restructuring plan. Following the news, Interface’s stocks plunged more than 12% on Wednesday’s trading session.
Expanding cost structure of the restructuring plan
It expanded the plans to $12.5 million compared to $3 million to $5million announced earlier. Out of $12.5 million, $9.5 million will be for severance and rest of the funds will be to write down the value of its impaired assets. The restructuring plan is expected to end by 2014 and can result in annual savings of $14 million from next year.
The preliminary results
Daniel T. Hendrix, the CEO of Interface, Inc. (NASDAQ:TILE), said that the preliminary results of 3Q2014 are below the company’s expectations. The delay in order delivery dates, problems in yarn supply and fewer orders resulted in lower revenues. It expects to post a net loss of $0.7million or a loss of $0.01 per share. The net income of Interface is expected to come at $0.01 per share compared to analysts’ expectations of $0.25 per share. The adjusted earnings are expected to come in a range of $0.12-$0.14 per share.
Other announcements
The revenue of Interface, Inc. (NASDAQ:TILE) in the third quarter is expected to come at $250 million to $255 million comparable to $255 million in 3Q2013. The analysts expect the revenue to come at $275.2 million. Interface intends to use cash in hand for buy-back plan. It has plans to purchase 500,000 of its shares per fiscal year, starting with the 2014 fiscal year. It also plans to redeem the currently outstanding notes amounting to $247.5 million. The redemption process can start soon and is expected to complete by the end of 2014. The planned redemption may require $266 million to $268 million, as per the date of redemption.
