Commercial Flooring Market Overview slide image

Commercial Flooring Market Overview

Appendix: Reconciliation of Non-GAAP Figures Diluted EPS as Reported (GAAP) Purchase Accounting (after tax impact of $0.6m Q1 2019 and $9.3m in 2018) Transaction Related Expenses (after tax impact of $2.1m in 2018) Tax Act Expense (Benefit) Restructuring and Asset Impairment Charges* LTM Q1 Q1 2014 2015 2016 2017 2018 Q1 2019 2018 2019 $0.37 $1.10 $0.83 $0.86 $0.84 $0.71 $0.25 $0.12 0.38 0.40 0.02 0.12 0.12 0.25 (0.11) (0.11) 0.13 0.12 0.20 0.08 0.26 0.26 Interface® Debt Retirement Expenses (net of tax impact of $0.6m in 2013 and $4.2m in 2014) Australia Fire Impact (net of tax impact of $0.2m in 2012 and $3.6m in 2013) Tax Dispute Resolution Adjusted Diluted EPS $0.62 $1.10 $1.03 $1.18 $1.49 $1.38 $0.25 $0.14 * Restructuring and Asset Impairment Charges are net of tax impact of $4.9m in 2012, $3.6m in 2014, $6.7m in 2016, and $2.6m in 2017 and $5.2m in 2018 ($ in millions) 2014 2015 2016 2017 2018 Q1 2019 Total Debt $263 $214 $270 $230 $619 $642 Less: Cash Net Debt (55) (76) (166) (87) (81) (67) $208 $138 $105 $143 $538 $575 LTM Q1 Q1 ($ in millions) 2014 2015 2016 2017 2018 Q1 2019 2018 2019 Net Income as Reported (GAAP) $25 $72 $54 $53 $50 $42 $15 $7 Taxes on Income Transaction Related Other Expense Interest Expense Depreciation & Amortization 11 33 25 47 5 1 5 2 - - - 4 4 - 21 6 6 7 15 20 31 31 31 30 39 42 Stock Compensation Amortization Transaction Related Expenses Purchase Accounting Amortization Debt Retirement Expenses 4 14 6 7 15 14 203 7 11 3 5 5 - 32 34 2 Restructuring and Asset Impairment Charges Adjusted EBITDA 12 12 $116 226 20 7 21 21 $157 $142 $152 $186 $183 $34 $31 Total Debt/ Net Income Net Debt / Adjusted EBITDA 10.6x 2.9x 5.0x 4.3x 12.3x 1.8x 0.9x 0.7x 0.9x 2.9x ($ in millions) Proforma nora Net Income prior to Interface Ownership Proforma nora taxes on income prior to Interface Ownership For the Period 1/1/2018 8/7/2018 For the Period 4/1/2018 - 8/7/2018 $2 $4 (0) Proforma nora interest expense prior to Interface Ownership 7 4 Proforma nora Depreciation and Amortization prior to Interface Ownership 8 6 Proforma nora other non-recurring charges prior to Interface Ownership 7 6 Proforma nora Adjusted Earnings before Taxes, Interest, Depreciation and Amortization $24 $19 Proforma Interface + nora (pre-acquisition) Adjusted Earnings before Taxes, Interest, Depreciation and Amortization (AEBITDA) $210 $202 Total Debt / Net Income Net Debt/ Proforma AEBITDA 12.3x 15.2x 2.6x 2.8x page 36
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