The world's largest carpet producer Interface Inc announced results for the second quarter ended July 3, 2005.
Second quarter 2005 results included a 14.0 percent increase in sales to $246.5 million, from $216.2 million in the year ago period. Operating income was $21.2 million in the 2005 second quarter, a 33.7 percent increase over operating income of $15.9 million in the second quarter 2004. As a percentage of sales, operating income improved to 8.6 percent in the second quarter of 2005 versus 7.3 percent of sales in the year ago period.
Pursuant to the provisions of the American Jobs Creation Act of 2004, the Company repatriated $10.5 million of earnings from foreign subsidiaries during the second quarter of 2005. This plan takes advantage of the Company's ability to initiate such a transaction at a substantially reduced tax rate, provided the repatriation occurs before the end of 2005. Consequently, the Company recorded a tax charge of approximately $1.6 million, or $0.03 per share, in the second quarter related to the repatriation. After this charge, income from continuing operations for the 2005-second quarter was $3.9 million, or $0.08 per share.
As announced in the third quarter of last year, the Company made the decision to exit the owned dealer business. Consequently, it is reporting the results of operations for its owned Re:Source dealers (as well as a small Australian dealer business and a small residential fabrics business) as "discontinued operations," in accordance with accounting standards. In the 2005-second quarter, these operations yielded an after-tax operating loss of $9.8 million, and the Company recorded a $1.6 million after-tax loss on the disposal of certain of these operations. As a result, the Company's net loss for the second quarter of 2005 was $7.4 million, or $0.14 per share, compared with a net loss of $0.2 million, or $0.00 per share, in the second quarter of 2004.
marketing@alchempro.com
