Interface Reports Second Quarter 2026 Results

Operational execution drives strong quarter; Company raises full year guidance Interface, Inc. (Nasdaq: TILE), the global flooring and sustainability leader, today announced results for the second quarter ended July 5, 2026. Second quarter highlights (all comparisons are year-over-year): Net sales totaled $396 million, up 5.4% and up 3.8% currency neutralGross profit margin increased 560 basis points; adjusted gross profit margin increased 524 basis pointsAdjusted gross profit margin benefitted from 131 basis points of operational improvement, driven by strong execution, and 393 basis points from $15.6 million of IEEPA tariff refundsContinued execution of the One Interface strategy further strengthened the Company’s competitive position and long-term growth profile “We delivered strong second quarter results, reflecting continued momentum and disciplined execution across the business,” commented Laurel Hurd, CEO of Interface. “This growth was broad-based across all regions and product categories, underscoring the strength of our diversified portfolio and the benefits of our One Interface strategy. Performance was led by Healthcare, with global billings up 19%, while Education and Corporate Office billings both increased by 5%.” “Higher sales volumes, proactive pricing actions, favorable mix, and manufacturing efficiencies drove robust margin expansion and earnings growth in the quarter, which was further enhanced by IEEPA tariff refunds," added Bruce Hausmann, CFO of Interface. "We are raising our full year guidance based on strong first half performance and a robust backlog supporting continued momentum. With a healthy balance sheet, we remain well positioned to execute disciplined capital allocation, drive sustainable growth and deliver long-term shareholder value.” Consolidated Results Summary (Unaudited) Three Months Ended Six Months Ended (in millions, except percentages and per share data) 7/5/2026 6/29/2025 Change 7/5/2026 6/29/2025 Change GAAP Net Sales $ 395.7 $ 375.5 5.4 % $ 726.7 $ 672.9 8.0 % Gross Profit Margin % of Net Sales 45.0 % 39.4 % 560 bps 41.9 % 38.5 % 346 bps SG&A Expenses $ 103.2 $ 95.9 7.5 % $ 197.6 $ 183.7 7.6 % SG&A Expenses % of Net Sales 26.1 % 25.5 % 53 bps 27.2 % 27.3 % (11) bps Operating Income $ 74.9 $ 52.0 43.9 % $ 107.2 $ 75.3 42.5 % Net Income $ 51.4 $ 32.6 57.9 % $ 75.0 $ 45.6 64.6 % Earnings per Diluted Share $ 0.88 $ 0.55 60.0 % $ 1.28 $ 0.77 66.2 % Non-GAAP Currency-Neutral Net Sales $ 389.9 $ 375.5 3.8 % $ 707.6 $ 672.9 5.1 % Adjusted Gross Profit Margin % of Net Sales 45.0 % 39.8 % 524 bps 41.9 % 38.9 % 308 bps Adjusted SG&A Expenses $ 103.1 $ 93.4 10.4 % $ 197.1 $ 180.2 9.4 % Adjusted SG&A Expenses % of Net Sales 26.1 % 24.9 % 119 bps 27.1 % 26.8 % 35 bps Adjusted Operating Income $ 74.9 $ 55.9 34.1 % $ 107.7 $ 81.4 32.3 % Adjusted Net Income $ 51.5 $ 35.4 45.4 % $ 75.4 $ 50.0 50.7 % Adjusted Earnings per Diluted Share $ 0.88 $ 0.60 46.7 % $ 1.28 $ 0.85 50.6 % Adjusted EBITDA $ 87.7 $ 64.8 35.2 % $ 134.4 $ 101.8 32.0 % Currency-Neutral Orders Increase Year-Over-Year 5.4 % Second quarter 2026 adjusted gross profit margin increased 524 basis points year-over-year due to favorable price/mix, lower manufacturing costs on higher sales volumes and manufacturing efficiency initiatives, and IEEPA tariff refunds.Second quarter 2026 adjusted SG&A expenses increased $9.7 million year-over-year due to higher sales commissions and variable compensation on increased sales and profits, and foreign currency exchange variances. Additional Metrics 7/5/2026 12/28/2025 Change Cash $ 81.5 $ 71.3 14.3 % Total Debt $ 204.4 $ 181.6 12.5 % Total Debt Minus Cash ("Net Debt") $ 122.8 $ 110.3 11.4 % Last 12-Months Adjusted EBITDA $ 250.5 Total Debt divided by Last 12-Months Net Income 1.4x Net Debt divided by Last 12-Months Adjusted EBITDA ("Net Leverage Ratio") 0.5x Segment Results Summary (Unaudited) Three Months Ended Six Months Ended (in millions, except percentages) 7/5/2026 6/29/2025 Change 7/5/2026 6/29/2025 Change AMS Net Sales $ 247.7 $ 239.4 3.4 % $ 443.3 $ 419.4 5.7 % Currency-Neutral Net Sales $ 247.7 $ 239.4 3.5 % $ 442.8 $ 419.4 5.6 % Operating Income $ 61.0 $ 48.8 24.9 % $ 84.9 $ 68.0 24.8 % Adjusted Operating Income $ 61.0 $ 48.8 24.9 % $ 84.9 $ 68.7 23.5 % Currency-Neutral Orders Increase Year-Over-Year 4.8 % EAAA Net Sales $ 148.0 $ 136.1 8.8 % $ 283.4 $ 253.6 11.8 % Currency-Neutral Net Sales $ 142.2 $ 136.1 4.5 % $ 264.8 $ 253.6 4.4 % Operating Income $ 13.9 $ 3.2 334.6 % $ 22.4 $ 7.3 206.7 % Adjusted Operating Income $ 14.0 $ 7.1 97.6 % $ 22.8 $ 12.7 80.1 % Currency-Neutral Orders Increase Year-Over-Year 6.4 % Note: Sum of segment items may differ from consolidated due to rounding of individual components Outlook Based on strong Q2 2026 results and a robust backlog, Interface is raising its full fiscal year guidance, while acknowledging a dynamic and uncertain global macro environment. With that backdrop in mind, Interface anticipates the following: Q3 Fiscal Year 2026 Outlook Net sales $370 to $380 million Adjusted gross profit margin 40.8% of net sales Adjusted SG&A expenses $100 million Adjusted interest & other expenses $4 million Adjusted effective income tax rate 27.5% Fully diluted weighted average share count 58.2 million shares Note: All figures are approximate Full Fiscal Year 2026 Outlook Previous Full Fiscal Year 2026 Outlook Net sales $1.455 to $1.485 billion $1.450 to $1.480 billion Adjusted gross profit margin 40.6% of net sales 38.8% to 39.0% of net sales Adjusted SG&A expenses $395 million 26.2% to 26.4% of net sales Adjusted interest & other expenses $15 million $14 to $16 million Adjusted effective income tax rate 26.0% 26.0% Capital expenditures $60 million $60 million Note: All figures are approximate and updated guidance includes Q2 2026 IEEPA tariff refund Webcast and Conference Call Information Interface will host a conference call on August 7, 2026, at 8:00 a.m. Eastern Time, to discuss its second quarter 2026 results. The conference call will be simultaneously broadcast live over the Internet. Listeners may access the conference call live over the Internet at: https://events.q4inc.com/attendee/506476251, or through the Company's website at: https://investors.interface.com. The archived version of the webcast will be available at these sites for one year beginning approximately one hour after the call ends. Non-GAAP Financial Measures Interface provides adjusted earnings per share, adjusted net income, adjusted operating income ("AOI"), adjusted gross profit, adjusted gross profit margin, adjusted SG&A expenses, currency- neutral sales and currency-neutral sales growth, net debt, and adjusted EBITDA as additional information regarding its operating results in this press release. These non-GAAP measures are not in accordance with – or alternatives to – GAAP measures, and may be different from non-GAAP measures used by other companies. Adjusted EPS, adjusted net income, and AOI exclude restructuring, asset impairment, severance, and other, net and the nora purchase accounting amortization. Adjusted gross profit and adjusted gross profit margin exclude the nora purchase accounting amortization. Adjusted SG&A expenses exclude restructuring, asset impairment, severance, and other, net. Currency-neutral sales and currency-neutral sales growth exclude the impact of foreign currency fluctuations. Net debt is total debt less cash on hand. Adjusted EBITDA is GAAP net income excluding interest expense, income tax expense, depreciation and amortization, share-based compensation expense, restructuring, asset impairment, severance, and other, net, the nora purchase accounting amortization, and a warehouse fire recovery. This news release should be read in conjunction with the Company's Current Report on Form 8-K furnished today to the U.S. Securities & Exchange Commission, which explains why Interface believes presentation of these non-GAAP measures provides useful information to investors, as well as any additional material purposes for which Interface uses these non-GAAP measures. About Interface Interface is a global flooring and sustainability leader dedicated to rethinking how spaces work for people and the planet. Our portfolio includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs. Across every brand, we innovate in a way that combines design, performance, and sustainability—without compromise. Trusted by architects, designers, and building professionals worldwide, we help bring bold visions to life with solutions that deliver real, measurable impact. Building on more than 30 years of sustainability progress and industry‑first innovation, we remain ‘all in’ on our goal of becoming carbon negative by 2040, without the use of offsets. Learn more about Interface (NASDAQ: TILE) and our brands at interface.com and FLOR.com. Join us on Facebook, Instagram, LinkedIn, and Pinterest. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. Forward-looking statements may be identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “should,” “goal,” “aim," “objective,” “seek,” “project,” “estimate,” “target,” “will” and similar expressions. Forward-looking statements in this press release include, without limitation, any projections we make regarding the Company’s 2026 third quarter and full year 2026 under “Outlook” above. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to the risks under the following subheadings in “Risk Factors” in the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2025: "We compete with a large number of manufacturers in the highly competitive floorcovering products market, and some of these competitors have greater financial resources than we do. We may face challenges competing on price, making investments in our business, or competing on product design or sustainability", "Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicates a material impairment of those assets", "Our success depends significantly upon the efforts, abilities and continued service of our senior management executives, our principal design consultant and other key personnel (including experienced sales and manufacturing personnel), and our loss of any of them could affect us adversely", "Changes in foreign trade policies and tariffs may adversely impact our business, financial condition, and results of operations", "Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to offset them or pass these cost increases through to our customers", "Unanticipated termination or interruption of any of our arrangements with our primary third-party suppliers of synthetic fiber or our primary third-party supplier for luxury vinyl tile (“LVT”) or other key raw materials could have a material adverse effect on us", "Changes to our facilities, manufacturing processes, product construction, and product composition could disrupt our operations, increase our manufacturing costs, increase customer complaints, increase warranty claims, negatively affect our reputation, and have a material adverse effect on our financial condition and results of operations", "Our business operations could suffer significant losses from natural disasters, acts of war, terrorism, catastrophes, fire, adverse weather conditions, pandemics, endemics, unstable geopolitical situations or other unexpected events", "The market price of our common stock has been volatile and the value of your investment may decline", "Sales of our principal products have been and may continue to be affected by adverse economic conditions and cycles, and effects in the new construction market and renovation market", "Disruptions to or failures of information technology systems we use could adversely affect our business", "The impact of potential changes to environmental laws and regulations and industry standards regarding climate change and other sustainability matters could lead to unforeseen disruptions to our business operations", "Public health crisis events, such as epidemics or pandemics, have in the past adversely impacted, and may in the future impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations", "Our substantial international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including restrictive taxation, custom duties, tariffs, border closings or other adverse government regulations", "The conflicts between Russia and Ukraine and in the Middle East could adversely affect our business, results of operations and financial position", "Fluctuations in foreign currency exchange rates have had, and could continue to have, an adverse impact on our financial condition and results of operations", "We have a substantial amount of debt, which could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under our debt", "Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness", "We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness", and "We face risks associated with litigation and claims". You should consider any additional or updated information we include under the heading “Risk Factors” in our subsequent quarterly and annual reports. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company assumes no responsibility to update or revise forward-looking statements made in this press release and cautions readers not to place undue reliance on any such forward-looking statements. - TABLES FOLLOW - Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended (In thousands, except per share data) 7/5/2026 6/29/2025 7/5/2026 6/29/2025 Net Sales $ 395,698 $ 375,522 $ 726,735 $ 672,935 Cost of Sales 217,616 227,545 421,930 413,995 Gross Profit 178,082 147,977 304,805 258,940 Selling, General & Administrative Expenses 103,166 95,930 197,559 183,666 Operating Income 74,916 52,047 107,246 75,274 Interest Expense, net 2,374 4,443 5,039 8,858 Other Expense, net 1,717 3,411 2,491 5,114 Income Before Income Tax Expense 70,825 44,193 99,716 61,302 Income Tax Expense 19,418 11,632 24,698 15,739 Net Income $ 51,407 $ 32,561 $ 75,018 $ 45,563 Earnings Per Share – Basic $ 0.89 $ 0.56 $ 1.29 $ 0.78 Earnings Per Share – Diluted $ 0.88 $ 0.55 $ 1.28 $ 0.77 Common Shares Outstanding – Basic 57,919 58,555 58,012 58,495 Common Shares Outstanding – Diluted 58,296 59,073 58,656 59,123 Consolidated Balance Sheets (Unaudited) (In thousands) 7/5/2026 12/28/2025 Assets Cash and Cash Equivalents $ 81,528 $ 71,323 Accounts Receivable, net 209,982 174,457 Inventories, net 291,598 275,014 Other Current Assets 42,465 34,048 Total Current Assets 625,573 554,842 Property, Plant and Equipment, net 313,478 309,449 Operating Lease Right-of-Use Assets 69,944 78,191 Goodwill and Intangibles Assets, net 158,471 163,012 Other Assets 102,774 101,028 Total Assets $ 1,270,240 $ 1,206,522 Liabilities Accounts Payable $ 87,133 $ 64,768 Accrued Expenses 137,058 147,770 Current Portion of Operating Lease Liabilities 14,537 15,748 Current Portion of Long-Term Debt 8,790 8,778 Total Current Liabilities 247,518 237,064 Long-Term Debt 195,566 172,801 Operating Lease Liabilities 60,058 67,205 Other Long-Term Liabilities 88,733 88,778 Total Liabilities 591,875 565,848 Shareholders’ Equity 678,365 640,674 Total Liabilities and Shareholders’ Equity $ 1,270,240 $ 1,206,522 Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Six Months Ended (In thousands) 7/5/2026 6/29/2025 7/5/2026 6/29/2025 OPERATING ACTIVITIES Net Income $ 51,407 $ 32,561 $ 75,018 $ 45,563 Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: Depreciation and Amortization 9,920 9,829 19,796 19,230 Share-Based Compensation Expense 4,606 2,771 9,639 6,917 Amortization of Acquired Intangible Assets — 1,352 — 2,606 Deferred Taxes 213 1,091 890 254 Other (4,584 ) (1,959 ) (4,123 ) 1,111 Change in Working Capital Accounts Receivable (46,995 ) (25,414 ) (36,530 ) (14,739 ) Inventories 1,858 4,238 (19,327 ) (12,101 ) Prepaid Expenses and Other Current Assets 965 (970 ) (8,772 ) (4,408 ) Accounts Payable and Accrued Expenses 20,960 6,629 15,297 (2,566 ) Cash Provided by Operating Activities 38,350 30,128 51,888 41,867 INVESTING ACTIVITIES Capital Expenditures (12,200 ) (7,354 ) (22,527 ) (14,821 ) Cash Used in Investing Activities (12,200 ) (7,354 ) (22,527 ) (14,821 ) FINANCING ACTIVITIES Repayments of Long-term Debt (43,207 ) (131 ) (70,283 ) (253 ) Borrowings of Long-term Debt 51,011 1,306 92,763 1,306 Repurchases of Common Stock (8,795 ) (4,286 ) (20,795 ) (4,286 ) Tax Withholding Payments for Share-Based Compensation (53 ) (6 ) (13,990 ) (7,736 ) Dividends Paid (3,483 ) (1,173 ) (3,621 ) (1,227 ) Finance Lease Payments (939 ) (782 ) (1,922 ) (1,544 ) Cash Used in Financing Activities (5,466 ) (5,072 ) (17,848 ) (13,740 ) Net Cash Provided by Operating, Investing and Financing Activities 20,684 17,702 11,513 13,306 Effect of Exchange Rate Changes on Cash (387 ) 6,242 (1,308 ) 9,169 CASH AND CASH EQUIVALENTS Net Change During the Period 20,297 23,944 10,205 22,475 Balance at Beginning of Period 61,231 97,757 71,323 99,226 Balance at End of Period $ 81,528 $ 121,701 $ 81,528 $ 121,701 Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited) (In millions, except per share amounts) Second Quarter 2026 Second Quarter 2025 Adjustments Adjustments Gross Profit SG&A Expenses Operating Income (Loss) Pre-tax Tax Effect Net Income (Loss) Diluted EPS Gross Profit SG&A Expenses Operating Income (Loss) Pre-tax Tax Effect Net Income (Loss) Diluted EPS GAAP As Reported $ 178.1 $ 103.2 $ 74.9 $ 51.4 $ 0.88 $ 148.0 $ 95.9 $ 52.0 $ 32.6 $ 0.55 Non-GAAP Adjustments: Purchase Accounting Amortization — — — — — — — 1.4 — 1.4 1.4 (0.4 ) 1.0 0.02 Restructuring, Asset Impairment, Severance, and Other, net — 0.0 0.0 — — 0.1 — — (2.5 ) 2.5 2.5 (0.6 ) 1.9 0.03 Adjustments Subtotal * — — — — — 0.1 — 1.4 (2.5 ) 3.9 3.9 (1.0 ) 2.8 0.05 Adjusted (non-GAAP) * $ 178.1 $ 103.1 $ 74.9 $ 51.5 $ 0.88 $ 149.3 $ 93.4 $ 55.9 $ 35.4 $ 0.60 * Note: Sum of reconciling items may differ from total due to rounding of individual components First Six Months 2026 First Six Months 2025 Adjustments Adjustments Gross Profit SG&A Expenses Operating Income (Loss) Pre-tax Tax Effect Net Income (Loss) Diluted EPS Gross Profit SG&A Expenses Operating Income (Loss) Pre-tax Tax Effect Net Income (Loss) Diluted EPS GAAP As Reported $ 304.8 $ 197.6 $ 107.2 $ 75.0 $ 1.28 $ 258.9 $ 183.7 $ 75.3 $ 45.6 $ 0.77 Non-GAAP Adjustments: Purchase Accounting Amortization — — — — — — — 2.6 — 2.6 2.6 (0.8 ) 1.8 0.03 Restructuring, Asset Impairment, Severance, and Other, net — (0.4 ) 0.4 0.4 (0.1 ) 0.3 0.01 — (3.5 ) 3.5 3.5 (0.9 ) 2.6 0.04 Adjustments Subtotal * — (0.4 ) 0.4 0.4 (0.1 ) 0.3 0.01 2.6 (3.5 ) 6.1 6.1 (1.6 ) 4.5 0.08 Adjusted (non-GAAP) * $ 304.8 $ 197.1 $ 107.7 $ 75.4 $ 1.28 $ 261.5 $ 180.2 $ 81.4 $ 50.0 $ 0.85 * Note: Sum of reconciling items may differ from total due to rounding of individual components Reconciliation of Segment GAAP Financial Measures to Non-GAAP Financial Measures ("Currency-Neutral Net Sales", and "AOI") (In millions) Second Quarter 2026 Second Quarter 2025 AMS Segment EAAA Segment Consolidated * AMS Segment EAAA Segment Consolidated * Net Sales as Reported (GAAP) $ 247.7 $ 148.0 $ 395.7 $ 239.4 $ 136.1 $ 375.5 Impact of Changes in Currency — (5.8 ) (5.8 ) — — — Currency-Neutral Net Sales $ 247.7 $ 142.2 $ 389.9 $ 239.4 $ 136.1 $ 375.5 * Note: Sum of reconciling items may differ from total due to rounding of individual components First Six Months 2026 First Six Months 2025 AMS Segment EAAA Segment Consolidated * AMS Segment EAAA Segment Consolidated * Net Sales as Reported (GAAP) $ 443.3 $ 283.4 $ 726.7 $ 419.4 $ 253.6 $ 672.9 Impact of Changes in Currency (0.6 ) (18.6 ) (19.2 ) — — — Currency-Neutral Net Sales $ 442.8 $ 264.8 $ 707.6 $ 419.4 $ 253.6 $ 672.9 * Note: Sum of reconciling items may differ from total due to rounding of individual components Second Quarter 2026 Second Quarter 2025 AMS Segment EAAA Segment Consolidated * AMS Segment EAAA Segment Consolidated * GAAP Operating Income (Loss) $ 61.0 $ 13.9 $ 74.9 $ 48.8 $ 3.2 $ 52.0 Non-GAAP Adjustments: Purchase Accounting Amortization — — — — 1.4 1.4 Restructuring, Asset Impairment, Severance, and Other, net — 0.0 — — 2.5 2.5 Adjustments Subtotal — — — — 3.9 3.9 AOI $ 61.0 $ 14.0 $ 74.9 $ 48.8 $ 7.1 $ 55.9 * Note: Sum of reconciling items may differ from total due to rounding of individual components First Six Months 2026 First Six Months 2025 AMS Segment EAAA Segment Consolidated * AMS Segment EAAA Segment Consolidated * GAAP Operating Income (Loss) $ 84.9 $ 22.4 $ 107.2 $ 68.0 $ 7.3 $ 75.3 Non-GAAP Adjustments: Purchase Accounting Amortization — — — — 2.6 2.6 Restructuring, Asset Impairment, Severance, and Other, net — 0.4 0.4 0.7 2.8 3.5 Adjustments Subtotal — 0.4 0.4 0.7 5.4 6.1 AOI $ 84.9 $ 22.8 $ 107.7 $ 68.7 $ 12.7 $ 81.4 * Note: Sum of reconciling items may differ from total due to rounding of individual components (in millions) Second Quarter 2026 Second Quarter 2025 First Six Months 2026 First Six Months 2025 Last Twelve Months (LTM) Ended 7/5/26 Fiscal Year 2025 Net Income as Reported (GAAP) $ 51.4 $ 32.6 $ 75.0 $ 45.6 $ 145.6 $ 116.1 Income Tax Expense 19.4 11.6 24.7 15.7 29.7 20.8 Interest Expense (including debt issuance cost amortization) 2.4 4.4 5.0 8.9 15.7 19.5 Depreciation and Amortization (excluding debt issuance cost amortization) 9.8 9.6 19.6 18.7 38.8 37.9 Share-based Compensation Expense 4.6 2.8 9.6 6.9 17.1 14.4 Purchase Accounting Amortization — 1.4 — 2.6 0.5 3.1 Restructuring, Asset Impairment, Severance, and Other, net 0.0 2.5 0.4 3.5 3.6 6.7 Warehouse Fire Recovery(1) — — — — (0.6 ) (0.6 ) Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (AEBITDA) * $ 87.7 $ 64.8 $ 134.4 $ 101.8 $ 250.5 $ 217.9 (1) Represents insurance recovery of loss recognized in the second quarter 2020. * Note: Sum of reconciling items may differ from total due to rounding of individual components As of 7/5/26 Total Debt, net $ 204.4 Total Cash on Hand (81.5 ) Total Debt, Net of Cash on Hand (Net Debt) $ 122.8 The impacts of changes in foreign currency presented in the tables are calculated based on applying the prior year period's average foreign currency exchange rates to the current year period. The Company believes that the above non-GAAP performance measures, which management uses in managing and evaluating the Company’s business, may provide users of the Company’s financial information with additional meaningful basis for comparing the Company’s current results and results in a prior period, as these measures reflect factors that are unique to one period relative to the comparable period. However, these non‑GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States. Tax effects identified above (when applicable) are calculated using the statutory tax rate for the jurisdictions in which the charge or income occurred. Source: Interface, Inc.