NOTE 14 – SUPPLEMENTAL CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS

The Guarantor Subsidiaries, which consist of the Company’s principal domestic subsidiaries, are guarantors of the Company’s 11 3/8% Senior Secured Notes due 2013 and its 7 5/8% Senior Notes due 2018. These guarantees are full and unconditional. The Supplemental Guarantor Financial Statements are presented herein pursuant to requirements of the Commission.

INTERFACE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2013


	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES		INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	130,708	$	111,873	$	0		$	(32,212	)	$	210,369
Cost of sales		95,709		75,620		0			(32,212	)		139,117

Gross profit on sales		34,999		36,253		0			0			71,252
Selling, general and administrative expenses		22,697		26,092		8,469			0			57,258

Operating income (loss)		12,302		10,161		(8,469	)		0			13,994
Interest/Other expense		5,971		2,945		(2,351	)		0			6,565

Income (loss) before taxes on income and equity in income of subsidiaries		6,331		7,216		(6,118	)		0			7,429
Income tax expense (benefit)		368		419		(355	)		0			432
Equity in income (loss) of subsidiaries		0		0		12,760			(12,760	)		0

Net income (loss)	$	5,963	$	6,797	$	6,997		$	(12,760	)	$	6,997

CONSOLIDATED STATEMENT OF COMPREHENSIVE

INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2013


	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)		CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(In thousands)
Net Income (loss)	$	5,963		$	6,797		$	6,997	$	(12,760	)	$	6,997
Currency Translation Adjustment		(7	)		(6,314	)		162		0			(6,159	)
Pension Liability Adjustment		0			1,812			73		0			1,885

Comprehensive Income (Loss)	$	5,956		$	2,295		$	7,232	$	(12,760	)	$	2,723

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 31, 2013


	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2,184		$	22,667		$	40,228		$	0		$	65,079
Accounts receivable		44,131			69,028			660			0			113,819
Inventories		71,301			86,218			0			0			157,519
Prepaids and deferred income taxes		6,093			50,216			14,610			0			70,919

Total current assets		123,709			228,129			55,498			0			407,336
Property and equipment less accumulated depreciation		77,972			92,817			3,150			0			173,939
Investment in subsidiaries		558,798			220,556			(151,552	)		(627,802	)		0
Goodwill		6,542			66,771			0			0			73,313
Other assets		1,275			9,057			107,287			0			117,619

	$	768,296		$	617,330		$	14,383		$	(627,802	)	$	772,207

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	31,975		$	105,704		$	8,278		$	0		$	145,957
Senior notes		0			0			275,000			0			275,000
Deferred income taxes		0			9,861			(3,459	)		0			6,402
Other		4			1,581			44,775			0			46,360

Total liabilities		31,979			117,146			324,594			0			473,719
Redeemable preferred stock		0			0			0			0			0
Common stock		94,145			102,199			6,617			(196,344	)		6,617
Additional paid-in capital		249,302			12,525			368,383			(261,827	)		368,383
Retained earnings (deficit)		394,820			438,138			(674,730	)		(169,631	)		(11,403	)
AOCI—Foreign currency translation adjustment		(1,950	)		(23,005	)		(6,548	)		0			(31,503	)
AOCI—Pension liability		0			(29,673	)		(3,933	)		0			(33,606	)

	$	768,296		$	617,330		$	14,383		$	(627,802	)	$	772,207

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS

ENDED MARCH 31, 2013


	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net cash provided by (used for) operating activities	$	(5,666	)	$	(11,246	)	$	9,509		$	(1,594	)	$	(8,997	)

Cash flows from investing activities:
Purchase of plant and equipment		(5,624	)		(9,252	)		(7	)		0			(14,883	)
Other		9			(209	)		(285	)		0			(485	)

Net cash used for investing activities		(5,615	)		(9,461	)		(292	)		0			(15,368	)

Cash flows from financing activities:
Proceeds from issuance of common stock		0			0			868			0			868
Other		9,533			7,352			(18,479	)		1,594			0
Dividends paid		0			0			(1,654	)		0			(1,654	)

Net cash provided by (used for) financing activities		9,533			7,352			(19,265	)		1,594			(786	)
Effect of exchange rate change on cash		0			(303	)		0			0			(303	)

Net increase (decrease) in cash		(1,748	)		(13,658	)		(10,048	)		0			(25,454	)
Cash at beginning of period		3,932			36,325			50,276			0			90,533

Cash at end of period	$	2,184		$	22,667		$	40,228		$	0		$	65,079