Interface Inc (NASDAQ:TILE) Q1 2018 Earnings Conference Call - Final Transcript
Apr 26, 2018 • 09:00 am ET
Good day, ladies and gentlemen, and welcome to the Q1 2018 Interface Earning's Conference Call. [Operator Instructions]
I would now like to turn the conference over to Christine Needles, Global Corporate Communications. Ma'am, you may begin.
Thank you, Ashley. Good morning, and welcome to Interface's conference call regarding first quarter 2018 results, hosted by Jay Gould, President and CEO; and Bruce Hausmann, Vice President and CFO.
During today's conference call, management's comments regarding Interface's business, which are not historical information, are forward-looking statements. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from any such statements, including risks and uncertainties associated with the economic conditions in the commercial interiors industry, as well as the risks and uncertainties discussed under the heading Risk Factors in Item 1A of the Company's annual report on Form 10-K for the fiscal year ended December 31, 2017, which has been filed with the Securities and Exchange Commission. We direct all listeners to that document.
The Company assumes no responsibility to update or revise forward-looking statements made during this call and cautions listeners not to place undue reliance on any such forward-looking statements.
Management's remarks during this call refer to certain non-GAAP measures. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is contained in the company's earnings release and Form 8-K filed with the SEC yesterday.
Lastly, this call is being recorded and broadcasted for Interface. It contains copyrighted material and may not be rerecorded or rebroadcasted without Interface's express permission. Your participation on the call confirms your consent to the company's taping and broadcasting of it.
Now, I'd like to turn the call over to Jay Gould, CEO.
Good morning. Once again, I'd like to begin by thanking our Interface teams around the world for delivering a very solid first quarter, consistent with our expectations. We remain focused on our priorities and are working together globally to ensure that our value creation strategy is working in the marketplace. So, let's jump right into our first quarter results.
We delivered solid performance down the P&L with first quarter GAAP net sales growth of 8.8% year-over-year. Our LVT business continues to gain traction with our customers, driving growth alongside our core carpet tile business. If you remember, it was this time last year that we had just launched our first LVT line in the Americas, with launches in Europe and APAC throughout 2017.
Now, with a full year of selling in our largest market behind us, we're seeing promising growth in our resilient business with additional designs and innovation on the horizon for the back half of 2018. We are also delighted with the growth we are see in our core carpet tile business and the way that our customers are using carpet tile and LVT together as a modular system to design beautiful floors and positive spaces across the segments that we serve. Organic sales which adjust for the impact of foreign currency fluctuations and