Interface, Inc.

Good morning, my name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Interface Inc. second quarter 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again press star one. Thank you. Christine Needles, Corporate Communications, you may begin your conference.

Good morning and welcome to Interface's conference call regarding second quarter 2022 results, hosted by Laurel Hurd, CEO, and Bruce Hausman, CFO. During today's conference call, any management comments regarding Interface's business, which are not historical information, are forward-looking statements within the meaning of federal securities laws. Forward-looking statements include statements regarding the intent, belief, or current expectations of our management team, as well as the assumptions on which such statements are based. Any forward-looking statements are not guarantees of future performance and 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 ongoing COVID-19 pandemic and those described in our most recent annual report on Form 10-K, and quarterly report on Form 10-Q filed with the SEC. The company assumes no responsibility to update forward-looking statements. Management's remarks during this call also refer to certain non-GAAP measures. Reconciliations of the non-GAAP measures to the most comparable GAAP measures and explanations for their use are contained in the company's earnings release and Form 8-K furnished with the SEC today. Lastly, this call is being recorded and broadcasted for interface. It contains copyrighted material and may not be re-recorded or re-broadcasted without Interfaces Express permission. Your participation on the call confirms your consent to the company's taping and broadcasting of it. After our prepared remarks, we will open up the call for questions. Now I'd like to turn the call over to Laurel Hurd, CEO.

Thank you, Christine, and good morning, everyone. We delivered another strong quarter with sales up 18%, reflecting growth across all our core segments and regions. while continuing to navigate ongoing inflationary pressure and foreign currency headwinds. I continue to be impressed with our team and in the way we're managing through a challenging inflationary environment. Our strong execution, along with pricing and productivity gains, helped to mostly offset over 1,500 basis points of input cost inflation in the quarter. We continue to see strong demand for carbon-neutral and carbon-negative products, highlighted by a 10% increase in both orders and backlogs during the quarter. Orders in the Americas were strong, growing 17% year-over-year. In EAAA, orders increased 2% on a currency-neutral basis, with their second quarter growth negatively impacted by the Russia-Ukraine war and COVID lockdowns in China. Globally, our backlog is up 19% year-to-date, which puts us in a position of strength as we enter the back half of 2022. In the second quarter, we continue to execute on our diversification strategies, resulting in share gains in our key market segments. Corporate office was up 17%, education was up 20%, and healthcare was up 13%. Our strong results in the quarter underscore our established position as an industry leader in design and sustainability in the commercial flooring space. The team was thrilled to see an increase in participation at in-person events around the world, including Kirkenwell Design Week in London, Milan Design Week, and, of course, Neocon. We were excited about the customer response to Interface at Neocon, where our America's sales and marketing team showcased a host of new products across the full portfolio. From the Beaumont Range Carpet Tile Collection and Fresca Valley LVT to Noriment Paddo Rubber Flooring, we demonstrated our integrated flooring solutions with inspiring design and innovation. We continue to receive recognition for our industry-leading products and sustainability leadership. At Neocon, we took home two HIC awards, including the health and wellness category for our desert scapes collection and a rising star award in the manufacturing category. We also learned the Metropolis Lights Award for Beaumont Range. On the sustainability side, we received the 2022 Judge's Choice Award from Environment and Energy Leader and for our carbon-negative carpet tiles and backings. We achieved this through decades of research and development and because we're the first to commercially scale this type of innovation in our industry. And we were once again recognized as a sustainability leader in the annual globe scan survey among an impressive list of companies including Unilever, Patagonia, IKEA, and more. Interface is the only company to maintain a spot on this esteemed list for 26 years running and the only flooring company to have ever been recognized. Our many successes this quarter are a testament to the power of our story, our legacy, and our continued commitment to run our business in a way that creates a climate fit for life. Overall, our second quarter results are strong and I'm extremely proud of our global team for their tireless efforts to advance our position as an industry leader in sustainability and design. I would also like to thank our customers for the trust they place in us every day to deliver high-performing, beautiful, and innovative flooring solutions. With that, I'll turn it over to Bruce to go through the financials. Bruce?