Item 2.02 Results of Operations and Financial Condition.
On
Non-GAAP Financial Measures in the Earnings Release
The Earnings Release includes, as additional information for investors, the
Company's adjusted earnings per share, adjusted net income, adjusted operating
income ("AOI"), adjusted gross profit, adjusted gross profit margin, adjusted
selling, general and administrative ("SG&A") expenses, organic sales and organic
sales growth, net debt, and adjusted earnings before interest taxes,
depreciation and amortization ("EBITDA"). These measures are not in accordance
with financial measures calculated in accordance with generally accepted
accounting principles in
Adjusted EPS, adjusted net income, and AOI exclude nora purchase accounting
amortization, goodwill and intangible asset impairment charges, changes in
equity award forfeiture accounting, restructuring charges, asset impairment,
severance and other charges and an
Organic sales and organic sales growth exclude the impact of foreign currency
fluctuations. Net debt is total debt less cash on hand. Adjusted EBITDA is GAAP
net income excluding interest expense, income tax expense, depreciation and
amortization, stock compensation amortization, goodwill and intangible asset
impairment, restructuring charges, asset impairment, severance and other
charges, nora purchase accounting amortization, an
Because the Company engages in acquisitions only episodically, and not as an everyday matter, the Company believes presenting certain measures excluding the effects of acquisitions facilitates focus on normal ongoing operations. The Company also believes presenting sales information absent the effect of foreign currency exchange rate fluctuations facilitates comparison of the Company's operational performance between periods.
The Company generally believes reporting its adjusted results helps investors' understanding of historical operating trends, because it facilitates comparison of current and prior periods during which one or more unique events may have occurred. The Company also believes that adjusted results provide supplemental information for comparisons to other companies which may not have experienced the same events underlying the adjustments. Furthermore, the Company uses adjusted results internally as supplemental information to evaluate its own performance, for planning purposes and in connection with its compensation programs.
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Item 9.01 Financial Statements and Exhibits
(d) Exhibits. Exhibit No. Description 99.1 Press Release ofInterface, Inc. , datedAugust 6, 2021 , reporting its financial results for the second quarter of 2021 (furnished pursuant to Item 2.02 of this Report). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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