Interface reports mixed Q2 earnings; initiates Q3 and raises FY23 outlook

Outlook: For the third quarter of 2023:

• Net sales of $320 million to $330 million vs. consensus of $325.35M.
• Adjusted gross profit margin of approximately 35.5%.
• Adjusted SG&A expenses of approximately $84 million.
• Adjusted Interest & Other expenses of approximately $10 million.
• An adjusted effective tax rate of approximately 31%.
• Fully diluted weighted average share count of approximately 58.2 million shares.

For the full fiscal year 2023:

• Net sales of $1.285 billion to $1.310 billion vs. consensus of $1.29B.
• Adjusted gross profit margin of 34.0% to 34.5%.
• Adjusted SG&A expenses of approximately $336 million.
• Adjusted Interest & Other expenses of approximately $37 million.
• An adjusted effective tax rate of approximately 29%.
• Capital expenditures of approximately $32 million.