Interface (TILE) has reported a 33.71 percent plunge in profit for the quarter ended Apr. 02, 2017. The company has earned $8.55 million, or $0.13 a share in the quarter, compared with $12.89 million, or $0.20 a share for the same period last year.
Revenue during the quarter went down marginally by 0.65 percent to $221.10 million from $222.55 million in the previous year period. Gross margin for the quarter expanded 78 basis points over the previous year period to 39.71 percent. Total expenses were 93.07 percent of quarterly revenues, up from 90.55 percent for the same period last year. That has resulted in a contraction of 252 basis points in operating margin to 6.93 percent.
Operating income for the quarter was $15.33 million, compared with $21.03 million in the previous year period.
"As we continue to advance our strategic agenda to become the world's most valuable interior products and services company, we delivered solid financial results in the first quarter, including a new record for first quarter gross margin, largely driven by improvements in the Americas and Europe," said Jay D. Gould, president and chief executive officer of Interface. "We saw a shift in momentum leading into 2017, with orders up year-over-year compared with the first quarter of 2016. In addition, our Board approved a new $100 million stock repurchase program that demonstrates their support of our long-term strategy and belief in our growth prospects. Stock repurchases are an important aspect of our capital allocation strategy as we focus on delivering long-term value for our shareowners."
Operating cash flow improves significantly Interface has generated cash of $7.40 million from operating activities during the quarter, up 2,154.57 percent or $7.07 million, when compared with the last year period.
The company has spent $8.88 million cash to meet investing activities during the quarter as against cash outgo of $4.73 million in the last year period.
The company has spent $86.82 million cash to carry out financing activities during the quarter as against cash inflow of $9.70 million in the last year period.
Cash and cash equivalents stood at stood at $80.05 million as at Apr. 02, 2017.
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