What happened

Shares of Interface (TILE -1.24%) have risen today, up by 4% as of 1:50 p.m. EDT, after the company reported second-quarter earnings. The results topped Wall Street's forecasts.

So what

Revenue in the second quarter was $260 million, beating the consensus estimate of $251.7 million. That resulted in adjusted net income of $16 million, or $0.27 per share. Analysts were modeling for just $0.07 per share in adjusted profits. The commercial flooring company finished the quarter with $92 million in cash and $620 million in debt.

An open space with tile flooring

Image source: Getty Images.

"During the second quarter, Interface managed through significant headwinds related to the global pandemic and resulting economic fallout by significantly reducing expenses and increasing our financial flexibility," CEO Dan Hendrix said in a statement. "We generated strong cash flow from operations of $48 million in the quarter, while pivoting our sales team to focus on more robust industries during this period, including healthcare and education."

Now what

Interface is working to bolster its liquidity to weather the coronavirus crisis and recently amended a credit facility to provide more flexibility around covenants through the first quarter of 2022. In addition to cash on hand, the company has $240 million in supplemental borrowing capacity under an existing revolver. Interface continues to pursue additional cost reductions.

Due to ongoing macroeconomic uncertainty related to the COVID-19 pandemic, Interface declined to provide financial guidance for fiscal 2020 beyond saying that adjusted selling, general, and administrative expenses are expected to be $320 million and that capital expenditures for the year should be $45 million to $50 million.