ATLANTA, Dec. 30 /PRNewswire-FirstCall/ -- Interface, Inc. (Nasdaq: IFSIA)
today announced restructuring actions as part of the Company's plan to reduce
costs across its global operations in response to softening demand.
Pursuant to the Company's restructuring plan, Interface will cease
manufacturing operations at its facility in Belleville, Canada, and reduce its
worldwide employee base by a total of approximately 530 employees in the areas
of manufacturing, sales and administration. The headcount reductions amount
to about 14% of the Company's worldwide workforce. The Company will retain
its sales and distribution presence in Canada and will source products from
other Interface facilities to service customers in the region. As a result of
the restructuring, Interface expects annualized cost savings of approximately
$30 million.
Interface plans to complete the restructuring activities in the first
quarter of 2009 and expects to report a pre-tax restructuring charge in the
fourth quarter of 2008 of approximately $11 million related to employee
severance, asset impairment related to the manufacturing cessation in Canada
and other exit costs. Approximately $8.5 million of the restructuring charge
will be cash expenditures, primarily severance expense.
"Interface continues to be focused on reducing expenses, increasing
operational efficiencies and generating cash for debt reduction," said Daniel
T. Hendrix, President and Chief Executive Officer. "While the decision to
take the actions we are announcing today was a difficult one and we sincerely
regret the impact it will have on many of our hard working associates, it was
also a necessary step in adapting our Company to the current demand levels.
Interface remains the global leader in modular carpet tile, and it is
important that we protect our profitability, cash flows and positioning in the
marketplace, while also preserving our ability to invest in strategic
initiatives such as market diversification and emerging geographic markets.
As a result of our restructuring, we are moving forward as a leaner company
while maintaining our ability to provide superior service to our customers
globally."
Interface, Inc. is the world's largest manufacturer of modular carpet,
which it markets under the InterfaceFLOR, FLOR, Heuga and Bentley Prince
Street brands, and, through its Bentley Prince Street brand, enjoys a leading
position in the designer quality segment of the broadloom carpet market. The
Company is committed to the goal of sustainability and doing business in ways
that minimize the impact on the environment while enhancing shareholder value.
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 forwardlooking statements. Those
forward-looking statements include statements regarding the anticipated future
charges, expenditures and savings relating to the restructuring plan described
above. In particular, all of the anticipated charges, expenditures, savings
and time frame relating to the restructuring plan described above are
estimates and are therefore subject to change. 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 risks
and uncertainties associated with economic conditions in the commercial
interiors industry as well as the risks and uncertainties discussed under the
heading "Risk Factors" included in Item 1A of the Company's Quarterly Report
on Form 10-Q for the quarter ended September 28, 2008 and Annual Report on
Form 10-K for the fiscal year ended December 30, 2007, which discussion is
incorporated herein by this reference, including, but not limited to, the
discussion of specific risks and uncertainties under the headings "The recent
worldwide financial and credit crisis could have a material adverse effect on
our business, financial condition and results of operations," "We compete with
a large number of manufacturers in the highly competitive commercial
floorcovering products market, and some of these competitors have greater
financial resources than we do," "Sales of our principal products have been
and may continue to be affected by adverse economic cycles in the renovation
and construction of commercial and institutional buildings," "Our success
depends significantly upon the efforts, abilities and continued service of our
senior management executives and our principal design consultant, and our loss
of any of them could affect us adversely," "Our substantial international
operations are subject to various political, economic and other uncertainties
that could adversely affect our business results, including by restrictive
taxation or other government regulation and by foreign currency fluctuations,"
"Large increases in the cost of petroleum-based raw materials could adversely
affect us if we are unable to 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 could
have a material adverse effect on us," "We have a significant amount of
indebtedness, which could have important negative consequences to us," "The
market price of our common stock has been volatile and the value of your
investment may decline," "Our earnings in a future period could be adversely
affected by non-cash adjustments to goodwill, if a future test of goodwill
assets indicates a material impairment of those assets," "Our Chairman,
together with other insiders, currently has sufficient voting power to elect a
majority of our Board of Directors," and "Our Rights Agreement could
discourage tender offers or other transactions for our stock that could result
in shareholders receiving a premium over the market price for our stock." 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.
SOURCE : Interface, Inc.
- 12/30/2008
CONTACT: Daniel T. Hendrix, President and Chief Executive Officer,
or
Patrick C. Lynch, Senior Vice President and Chief Financial Officer,
both of
Interface, Inc., +1-770-437-6800;
or Eric Boyriven or Bob Joyce, both of FD,
+1-212-850-5600
Web Site: http://www.interfaceinc.com
(IFSIA)
CO: Interface, Inc.