TILE - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Fourth Quarter 2019 Interface Inc. Earnings Conference Call. At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions]

hand Corporate over Communications. to today, your like Needles, Christine now the to conference speaker I'd Please ahead. go

Christine Needles

Good morning, by and President fourth and quarter welcome and and to Interface's full CEO; XXXX conference CFO. year results, Hausman, hosted Bruce Dan Chairman and Hendrix, Vice call regarding

as not meaning amended During conference XXXX of Act Securities Act Act XXXX as are the the Private management are Securities forward-looking of Interface's business, comments Securities by today's information regarding statements and Litigation Exchange XXXX. any of which call, the historical amended within the of Reform

belief Forward-looking as current statements include on based. statements regarding the as of the which team, intent, management statements are or our assumptions such expectations well

XX, to uncertainties are future for or XA fiscal Commission. results as heading XXXX, Form XA all the Factors direct on under a Any losses, company's the XX, proceeding year by XX-K filed actual that additional the as has and which quarterly and documents. in any and forward-looking related with We conditions economic to the subject September of Annual those item ended to differ included time-to-time, commercial been interiors of guarantees Risk Exchange two the ended Report materially not the risk of report for in statements, on uncertainties XX-Q listeners quarter Form statements part uncertainties associated similar with updated to could Item Securities and in December the XXXX discussed factor the legal that including risks risk from and risks and cause from risk performance industry and such as investigations involve the we're number the of well

undue during or on responsibility revise reliance not no this any place to to made assumes company and forward-looking such cautions The statements. listeners call statements forward-looking update

why the most the refer non-GAAP the furnished to company's comparable with The release the X-K Management's Interface each as call is section purposes accessed any contained measures SEC GAAP these reconciliation as which a www.interface.com. non-GAAP of this uses non-GAAP Investor in most remarks measures measures as non-GAAP yesterday, useful well in can website, measures. investors, comparable explains material which certain of during the for be of earnings the to information believes which as Form measures also these to of measures, and presentations Interface well additional provides company's GAAP Relations

copyrighted rebroadcasted Lastly, rerecorded is expressed contains recorded material and be Interface. call this may without broadcasted or being not for It Interface's and permission.

broadcasting consent participation it. to Your of your and taping the the call on company's confirms

to I'd turn like and call to the over Now, CEO. Dan Hendrix, Chairman

Dan Hendrix

with interface thanks leading Chairman, be again, you. from XXXX search while Thank our the years continue CFO today. involved the Good before for to very everyone the our now with XX have to to morning and I call company we joined as as XX for successor. joining and and I Board CEO for the years XXXX fortunate that. company opportunity service a ago

financial, one thoughtful a operational us on and will allow focus new search Our our will goals. for to a executing progress, CEO sustainability be that

Over strategy the the to business executing we response in that last execute our for initiatives much progress taking we've and made successfully as years, that SG&A put focused and margin, place the in organization to exciting the on years the market. changing share, the important the a will on continue result. top-line, the growing of to we past stronger market we've We're run continue a across been several three become

really to company. the is Interface. future of with It cannot sales teams optimistic be a managers time great [indiscernible] Our Europe, meetings in the be more Americas I our and and this about an

restructuring team, of marketing and Jim who leader business, our and in the well respected someone initiatives. America was by commercial is known our our instrumental driving Our in success global and in well core integral new Poppens

design change. this than I expect this we've believe feel the in strong the I with ever a in a had sales we us, is In region Europe, momentum have teams and region history seamless a and transition leadership of that for particularly We strongly in the company. is welcome the a UK that over technology growth us where strongest in industry system Brexit three investing the positioned including to vacuum tufting our in a further for is innovations, uncertainty $XX executing that lifting give sales and us We're years million we're leading manufacturing, on capability team new in separate marketplace. success. will approximately

X% share sales was year. versus up delivered you XXX% another EPS a what's ahead, fourth year the up X% last me fourth sales with with full and net quarter quarter X% and organic in solid EPS the versus year. our of quarter last sales about up results let and year up XX% with Fourth fourth while full last net quarter talk year I the was before We up year XX% first But up XXXX XXXX. adjusted prior the versus quarter GAAP organic QX versus sales

year per your commitment X% to for versus delivering prior year. the to XXXX XXXX goals. was XX% strategic and I want share for a on strong our steadfast per finish versus the entire financial was year its thank team and up the full up earnings Interface to GAAP share and the exit earnings

organic business had equally contributing with tile growth a resilient solid carpet to fourth spanning quarter our core business. Our

a foundation remains for company. tile the solid Carpet

product strong key and of new reach LVT Our growth quarter in had continues high a this opportunities driver be market resilient expand growth. to our we business offerings to another category.

in and exceeding in and a We're on are selling segments million category. opportunity. commercial fast cross products X LVG new flooring Our providing XXXX track $XXX meeting higher initial share reach to the in growing rate run improvements in needs taking margin. healthcare millimeter expectations tender customer half of and this multifamily and the first LVT our

operations made progress integrating fourth the business other the solid I'm our quarter into also organization. expectations we've Our on the for a has pleased exceeding sales the and year Nora with growth and

our of customers efforts beyond South selling opportunities GAAP surface, cross our was margin margin our and marketing our expanding in diverse adjusted margin quarter categories market segments. their adjusted and across to expand our initiatives last increased across portfolio wide joint product healthcare first results. By needs points strengthen as market QX variety segments, education. of at to a sales versus in we and and had position year. and standpoint, From our fourth generating product the meet solutions XX gross target to gross XX.X% range activity basis a manufacturing our addressable where bring team we the particularly efforts flooring are our up continuing We're XX%

were of $X allowing quarter to considering in negative we percentage us operating or translation a GAAP during million had income XX.X as quarter and million income currency, operating expectations impact This net especially gratifying of in XX SG&A the of deliver adjusted for around of the million sales. or income XX X.X% the sales a performance, operating expenses the fourth is year.

quarter Bruce discussion I'll our for results. it fourth detailed more year and turn Now to of over

Bruce Hausman

up due on Sterling Thank over up business net million was translation last the down had up currency with in solid Interface negative fourth tile Fourth which prior sales headwinds had quarter or year to in you the to strong in strong local morning line quarter of LVT X% continued year. year. everyone. with EMEA dollars year rates expectations, versus sales, good sales Currency but million compared carpet to up and in X% Dan growth U.S pound legacy a Euro points XXX to impact to X% X legacy Interface in a our were net X% and prior X% in exchange by year quarter the period. Americas the the and were driven basis organic USD fourth year sales finish sales, USD were In over currency XXX our

was in Legacy dollars gross our last was quarter Pacific up Fourth compared X% rate to Interface year were dollar In sales fourth XX versus the USD the County last fourth over to adjusted of market basis productivity savings segments office end of completed care. is in and we're of year, the Australian point quarter health initiatives margin Asia fourth last year. gross profit gross margin which was but in the profit by at flat education global in points currency due driven margin quarter XX% exchange optimization local up basis year. largely Adjusted Troupe our gross profit realizing XX.X% improvement were last an XXXX. to US is growth quarter we margin XXX versus profit which Americas,

sales, the quarter fourth in of our XX.X% with were or XX expectations. in expenses line which SG&A were million

primarily And in The UK. connection of reduction termination office restructuring restructuring offset previously fourth and for a $X.X charge in As announced the severance the charges we comprised of the charge plan, part These in accruals business. restructuring XXX charges net X in of XXXX leases million approximately positions, million two Shanghai of certain charge with $XXX,XXX quarter. EAAA X.X a restructuring early by million a were million. of of in $X.X recorded charges reversal our of of our

$X restructuring this annualized to plan expect savings We across and years be fiscal to yield million approximately of realized XXXX XXXX.

income fourth $XX was Operating income we million year Adjusted XXXX, share last of operating quarter million million related carrying of or in related period. to $XX to a diluted income last million up certain fourth addition, compared assets. $X.XX in the year. for was net year. the $XX the And $X adjusting share to per was QX XXX% million quarter $X million recorded value $X quarter to $X.XX noncash million per fourth of In charge or insurance net income in compare the diluted compared $XX prior

Adjusted $XX QX million compared per growth. year diluted $XX diluted XX% XXXX $X.XX million representing share last per share net or in income to or was $X.XX

$XX which as million year. last was QX approximately Adjusted was EBITDA QX, the in same

margin were Now looking up adjusted points results, XXXX year. XX.X% margin basis and $X.X gross sales compared XXXX. net margin year, to was adjusted in sales in last up full was the for Organic $X.X of versus gross year X% billion billion was XX.X%, up which XX XX% gross at XXXX were

of $XXX full million in expenses up or million million $XXX operating was year. versus operating year XX.X% XXXX of to income of in year. SG&A $XXX compared $XXX of adjusted XXXX SG&A last was compared XXXX. to XX% income XX.X% were income million And million or Adjusted last million operating $XXX in sales sales, $XX expenses

$X.XX $X.XX million And or compared $XX million the XXXX, XXXX. net share. in per per $XX income was in per represents X% $X.XX XXXX income share $XX million or with share was XXXX, earnings million compared adjusted or adjusted in net share per with which per growth $XX of adjusted income year-over-year share in $X.XX of Net or

cash to over moving balance flows. and Now sheet

by debt deleveraging is in disciplined total balance of the We to generated $XX working Our quarter via a plan. $XX million. capital remain sheet committed million and strong fourth and we cash reduced

$XX of ending of $XXX gross While Net hand cash on debt debt. was million. or million and cash the minus year on million $XXX hand debt of gross

remains also of at $XXX of facility liquidity our very under credit million availability borrowing revolving the Our strong the year. with end

was X.X times, of of end ratio of EBITDA XXXX, EBITDA. end are of at adjusted which divided is note net at a these the $XXX non-GAAP debt year that measures. by Adjusted leverage million as Please resulting some the the in calculated

our year So in release Interest XXXX was tables full fourth million as year. quarter million in a year reminder non-GAAP expense measures. to QX reconcile $X $XX of and please versus with million expense $X $XX refer compared last million to GAAP in in was to the reconciliation our interest last press

million for the $XX last expenditures year. million was compared XXXX million year Depreciation $XX to year. last And $XX in $XX capital were as to and million anticipated, amortization

like In in making you. investments Dan? new share technology manufacturing made to we're we've that our investments to with operations, Americas our addition the to would exciting increased Dan optimize

Dan Hendrix

Bruce. Thanks

As reducing paying we focus the really grow XXXX progress debt. SG&A in as of the and down sales on sales, driving percentage is my top-line and

in product innovations new a flooring and soft the hard both have of pipeline categories. We robust design and

New of pattern allows dynamic us edge technology rugs. and cutting design testing hand weave highlights products with woven luminescent to flat and

in key pricing opportunities, particularly healthcare education, segment strategic growth including We have and penetration, focus renewed diversified and strategy. on

across remain system. and segments, focused selling the are selling across portfolio on market cross driving in accelerating and our We productivity opportunities we product

think $X.XX organic forecasted to at for build on to the $XX XXXX. for our the we of $X.XX million about X% to growth adjusted as and Now achieve the full of per year to share strategic are to outlook million X% $XX agenda XXXX we in Capital expenditures sales continue targeting earnings and year. are

the with is rate reflected XX% XXrd is be XXXX the our tax anticipated and Interface XXXX share first shares. week quarter. Our extra Also be fiscal XX.X approximately count approximately to effective week anticipated note for to million is in diluted year that a

With for regard holiday to lasting requirements through extended typically New facility China, government China in accordance January from and XX and the offices an coronavirus our close of Year manufacturing local X. crisis, we February in

production from our time, in to manufacturing required this our customers During absorbed facility. China the service facility Thailand normally supplied

experience the could year. the outlook on While chain year to of much The as we disruption limitations and plan their in utmost movement manufacturing as will production our to have half families first of are an of monitor for below sales our and will resolved, supply and continue financial to XX% next and sales resumed colleagues expected the call. evolve. and importance, XX% the business evident update safety is health provide impact Asia we be decline and date situation continue earnings the is to temporary The our on impact anticipate to operations orders in region that the our Asia-Pacific already related

Interface strong finish support shareholders quarter who take Thank XXXX. our thank Interface another customers to and to you the again And mission. our and Global solid continue climate to you for team and to back

CEO. Before we Q&A, into the I know by was former have questions lucky lawsuit about to you're that filed get

pending XX. no on was litigation current as this We statement comments the that have February beyond issued

open I'll questions. for up that, With

Operator

Kathryn Thank Thompson first you. Instructions] from question [Operator Our go Please Thompson Group. comes Research today ahead. from

Brian Biros

Thank actually the I for This corona you good is Kathryn. start morning. taking a questions. on my Biros guess impacts. Brian Hey we on for

copper in more region the only called the not yet? and that guess may prepared impact in also still or mentioned seen any You that for is if color Asian facility is you I you in on is operations tile China, XXX% other full impact regions And is remarks. out or is press guys? to you open release the been it back in provide back but this the And

Bruce Hausman

morning. is Hey, Brian. Hausman, good Bruce This

told in Coronavirus is is that newspaper. the right issue what that was the supply from So we not and in of I you every But now. have being far, had the running. so in impact evolving is seen chain. any we planet only impact know, Asia our and just the is guess say And page the it day, single good, front so I backup China have And as to

seeing. And good, so so we think recover the can for far, that full that hopeful we year, we're impact we're the

Asian top-line XX% could just revenue to impact half, see in on about the for quantify first operations, it. XXX mentioned, as Asia's and we we just to million However, XX% put around an that the of of the you some bands

Brian Biros

a have quick I follow up.

guys spend I mentioned you think in manufacturing the XXXX million XX for XXXX on CapEx, innovations. through

helpful. would some some environmentally what revenue prepared clarity kind help about what forward? And a Interface? markets impact friendly add on there end margin products going Can some up play? from more us that the or gave be maybe to like remarks? You or the think everything That for forward color mostly something, going customers. that benefits savings opens Maybe new looks that's or that just Or in the are there's of whether

Dan Hendrix

Dan. This is

in deal give the system footprint is users product industry. are carbon will us our backing carbon in the customer investing a change a to base, group. really They're spec. to Climate design in that our our starting in lowest with specifications in measure big particularly We

their CX a it carbon out so top-line hold. And will buildings. carbon grow and innovation the embedded will which with with that specs [indiscernible] calculates actually it came actually is they in

negative technology carbon testing think get eventually. We And give it's a carbon the in is test. the style I the then this you to you So game we're to on remember exciting. of marketplace and we a lot the here. hope actually true side, more product had I us a if and products technology already not ahead today. this is way products, will lowest introduced in know, day, a design we when it the don't tapestry gives And called that similar to

and investments going these getting So out on sales. actually line, they're the gross really aren't profit

Operator

Nomura from Wood Michael from comes question next Our Instinet.

Michael Wood

question, comparisons gross first large XQ on within particular, color think and see could your SG&A we SG&A First if that wanted margin to quarter given SG&A 'XX? outlook guidance. just that on elevated should about how investment some in And you provide I in

Bruce Hausman

this is Bruce Hausman. Hey Mike,

guidance top-line as can guidance year, So press as CapEx as from of full we're providing $X.XX. providing X% $X.XX tax our for rates. to providing well you And we're to see EPS guidance release. X%, We're

And components hit to we the statement, income so of not in We're number versus breaking bottom-line number pieces. the What SG&A. we this apart end we're share we're by that profit without not and gross counts. quarter it down doing down trying not making making by is breaking certain sure we're hit that break the really top-line necessarily focused on the and

Dan Hendrix

taking really look market, and the and new But our gone States think, create of we're reduce our the I really We focus we after high. dealer things need of need wide number SG&A modular which company as to after back those on We've share. need in company our the spaces created and into too markets we the line to with opportunities think grow run get think top sales actually But and going I with of we through a particularly muscle in need rubber focus line a this within improving Mike cross percentage. lot One I'm is that LVT is we SG&A we never to to of company grow that percentage carpet investments. a here muscle this that United on. to lot at a and selling go top a try We and excited have I to business.

think the plan of you our strategic get muscle to So, selling built as that productivity think running three focused focus going of is on to I we're how specs selling well we the company a it's And put drive I'm great We just on as we have, that because We've lot I place organization. well. group. in years. a actually on as last plan a out design design need the

So top into operating to the really me, growing line line it's and income about and driving our SG&A. driving

Michael Wood

prior that in quarter talk saw that growth core see in Okay. any was took the sales, unfavorable had fourth And kind you didn't fourth organic large weakness quarter creating away? in Can just that that Asia something that acceleration was organic the you your of in you an offset headwind project about you what despite that else of terms fact it or quarters.

Bruce Hausman

this headwind order clarify. to did just Yes. is that lapping Bruce, actually related comparable large QX We that Mike, we a have a was as to in year were, XXXX. the from that

come So, in the QX we we QX, we right growth as organic we come to But is that came thought in the We a just saw X% headwind we and we quarter. it there would. would QX did wasn't in was into exactly quite was similar large. thought where which where

Michael Wood

Can about, we rate. you, tax sorry. finally the talk I'm drove higher

Dan Hendriz

ahead. Go

Sorry.

Michael Wood

want to ask your just just 'XX pretty you organic versus in Dan to within I what Thank and question? high I guidance, had had comments prior you sales tax other those appreciate a within rate on years. tax guidance rate you're you. the

Bruce Hausman

asking Sorry or rate XXXX tax guidance the rate? asking Mike. XXXX you about the Are tax you about are

Michael Wood

I'm you XX effective for to you're XXXX, if XXXX. around and think not guiding XX%, I an ended adjusted mistaken,

So big why just increase? wondering the

Bruce Hausman

Yes, so a good it's question.

about the is the Prince that prior like And discontinued that a treat we've quarter. in one was in to of You we pickups related business a Bentley might XXXX, remember couple talked had operation.

just every reform company erosion components, and in erosion tax, benefits So the a continue bake just continues global guilty some recur clarified other reform We're like tax that not we're of global around the tax tax, seeing, the to called onetime And of to and into of statement in intangible that pickup is thing also [indiscernible] the so the that sort XXXX. some around as was other tax. income some the those get the seeing world. does

Operator

to question Our next from Hughes from SunTrust. comes Keith

Keith Hughes

would How year-over-year? do in Nora Nora. quarter on Questions the you. Thank

Bruce Hausman

be our to of acquisition integrate pleased so company model We Nora continue one Keith, with integration. and progress we the and the continuing product to continues methodically our that three lines. And to expectations with Bruce. so business, just announced with we when pace on that it's the stay that around track had that acquisition we're deal. we're

And so target… on right

Dan Hendrix

side businesses, get never cross Dan. in healthcare. the sales Interface that, is to exciting are across I'd very between this various in and opportunities been healthcare Keith selling strong to market actually also really as go and say We've headed me. on and and The out Nora really I they're carpet the I'm strong to Northeast. larger

I the outlined part markets, focus we're ourselves in we're and on healthcare the all going And the So cross selling. education for also think products. to three given to part

think think that realized I haven't we that, because selling, So But I'm excited I can. about for we the us. cross opportunity

Keith Hughes

organic stronger numbers fair of growth you And the Is half in quarter. to up out being was seen have in talked the say? resilient about resilient. down LVT the that I've

Bruce Hausman

accretive momentum business LVT. absolutely on We with which we're continue in million to right in And margins. to is order we had fantastic XXXX, be $XXX see where track fantastic in run anticipated to Keith rate

Keith Hughes

And this you assume in that guidance Did like, talking earlier? about gave release. in It's you revenue Asia you're what that that about? talked decline some

Dan Hendrix

markets, going declining about Europe and Well, excited other the say despite quarter, sales and that so the and Americas. Asia X% I Today, States on United orders. in up would we're with I'm this what's

Keith Hughes

here? And that you gives which little North about markets us this have our us carpet finally, Do America? investing where industry I guess what feels you gives like any tile. the some is Is question share bit a this in Do gain point. feel carpet at have is you're on tile

Dan Hendrix

as that determined forfeited and to that of actually I never markets healthcare Well, magic that into to categories. if States. into don't really And did the we're actually say education, and out part the business. gone I with product figure after we're investing but the our going think market lower sell know with we we've particularly remember resilient hospitality market would you we actually I non-office segments, carpet We've and how United are and

Operator

from Baugh from John Stifel. comes Our question next

John Baugh

X% from organic color, guide maybe growth wanted product would any you in. X% provide Let's come bit geographically where little a or where of jump for just completed, either Could I because a 'XX. we acceleration discuss wise? an right to there's that to

Dan Hendrix

I a excited about leaders. excited lot what European which lot invested the think of people business, Europe. are We've I of commercial is of I'm about kind in call

with Europe. think new to of of going, I X take we've the we're sales U.S. and good tools on just has pretty the in think market fact now leaders selling. poised integration shares tools. And have the commercial and muscle there. And in the capitalize got hard European cross as We the got I surfaces Nora well, in momentum last particularly three We lot years built a to productivity two also

ready sales We I interface in advance, of that. to and capitalize we've we're in force, put think some on put

So I well. it's U.S., think, I Europe it's think as

John Baugh

what going the XXX that mentioned consolidated. globe with What the LVT million on are world? sales anything assume And in I category? around is seeing if that's product around then You you the

Bruce Hausman

the with to sales accelerate. is not we can is product this any stopping terms momentum The have we of just seen continued great. which And that Bruce in Hausman. John, globally, line

Dan Hendrix

Yes, say adopted States that I is would next following and from the adoption United was that and the to come. in Europe earlier we standpoint Asia U.S.

pretty Europe to going see is growth good LVT in well as think I some revenue. So

John Baugh

change there is in any ahead. the, And go

Dan Hendrix

first. Asia, then there. ahead and be else so the no, United We Europe then you should The got as No, that U.S. adoption first it of they got States introduced everybody

John Baugh

there business? is LVT in margin any change profile then And Understood.

Bruce Hausman

this John, Bruce. is

comes quarter, a we X previous slightly actually higher So, margin that of our mentioned at than launched lines. millimeter LVT some product we as some last

margins. are competitive LVT So it not you able be products but able to we only strong to, at are bring and bringing to are we to market additional we seeing, continue very market, at to

John Baugh

used out I you sort did you. give And a your I this see you orders and comment we of? that sort think backlog of Thank is doing then that X%. a lastly, just not what number just were period But comment that. to you're Is consolidated up to clarify, guess

Bruce Hausman

Bruce. it's John

company. just backlog we the many your me come of this you don't which from. about, sort are components We snap about backlog, one it's look total about So that indicative of is the necessarily provide guys line quarter year-to-date heard of up talk you where it's growth X% necessarily to have is don't component not don't previously, you number is future, talk revenue future at of going why I it's

Operator

Our from question next Research. Longbow David MacGregor comes from

David MacGregor

talk on increasingly the the on orders guess, last about become was made observation and, call quarter's choppy. just I orders of lot had we're orders. that A

So stabilized I on picking you velocity the up we'd order how start thought and be orders with cadence the that, If locked us could of saw seems of to a had or of order quarter And what little in bit the just the little talk bit, quality but in has you the of about book? terms it flow still the is of update if sort very seeing a choppy? you're within terms

Bruce Hausman

Bruce. is this David,

word bounce quarter, X% year-to-date. it. It's progression us, And of describe number I that. people When would around. the the the much I a was at one good said just that for smooth sort read choppy the into and look throughout things recently, the was I you think a who word, way that think been think looking I I I too think, that's

Dan Hendrix

what's meeting about Europe to excited the are in and their going pretty about very grow And those optimistic and regions. And States but two United as the thing, able on be meeting of was one script, sales top-line. to at had we it one in out in going went management the ever a in top groups meetings the the then sales attended. I XXX I've And best probably geographical

So me of sort the bit first. of gives encouragement that's, a that about little

We haven't been at X% in orders. That's a good time for us.

David MacGregor

you call across your if company, X% the that number Is that look made you observation was disparity think, Bruce, there in And the I at much region-by-region?

Bruce Hausman

basis. order out give normally growth don't rates a geographic We on

which for they strong the like However, down that X% in Americas. company that total orders this in seeing to tell are and around obviously all sensitivity are means X%, quarter we're just in But year-to-date up growth given Asia. you they're, coronavirus, I'd order Europe

David MacGregor

in expect that Asia. And

points, so for but year opportunity, talking You we're talk about an now. opportunity exciting and it over sounds about frankly like price a

of you're on sort you of of hard And specifying metric could you're what's us metric content, terms in us in that and or wins the that? soft update on that? using both Just terms using update

Dan Hendrix

we while on actually people carry in finally the get how last even cross identified. got think actually They're I products going and on And identified, to stepping takes the hadn't the selling vice here me, the And Interface to getting we all it me Well, actually versa. cross identified, we weeks, to three the right, get identified. focus the get selling, markets culture been in really got six to settled focused into people get a Nora the products. the

think So a I'd selling months given able we it we've but opportunity, get always I to better had that now, XX that, execute it we're going. had cross say to

David MacGregor

the And me question initiative. just carbon for products one on

conversation still think XX I 'XX, reductions is million the 'XX good is number cost around been it still that of million, overlapping a and to XX million to XX has to use? million XX

Dan Hendrix

of comes got based equation, Well, the that from, lot that one targeting. negative that the we've side X to million on except the closer other improvement I'm we're carbon familiar manufacturing of is a not with XX. in where

more XX like that So whole pipeline million. is probably

Bruce Hausman

bleeds bleeds year, that clarify. into not to just of just into this in year. That's but savings the next Bruce, is it This kind

David MacGregor

last quarter that sheet. indicated you balance just more well. on like as the One think I

down Is it 'XX. get goal? times could still of the you thought, X.X by You to the end that

Bruce Hausman

net You EBITDA to about growth? talked debt

David MacGregor

Right.

Bruce Hausman

That is, we this. say

on deleverage focused continuing very to very, the Company. are We

I would deleveraging have key with right we fantastic. very, getting just of for very continue where We the going is be at a focusing being focus this to sheet balance everybody's super goal we're is X.X deleveraging. we quarter, X.X, end do a which we say, for we're by So ended we're us. this year. to And that down said on to on as But up benefit the track of wanted

Dan Hendrix

Yes, to I echo want that.

Operator

showing further I'll at I'm the And in no queue questions back this closing remarks. call for time. turn

Dan Hendrix

year. Well, great in quarter. next for be the you I'll call. listen all I'm and me role, this to for looking It's having to And this to thank forward Thanks. good you talk back

Operator

gentlemen, today's conference participating. for Thank and this Ladies concludes you call.

disconnect. now may You

Interface (TILE) 26 Feb 202019 Q4 Earnings call transcript