Chihuahua, Mexico, Oct. 22—Interceramic had record sales, operating income, and EBITDA in the third quarter ended September 30. Sales for the quarter were $75.9 million, 14% more than the $66.5 million posted in the same quarter last year. For the first three quarters of this year, sales are up almost 11% to $214.9 million, compared to sales of $193.7 million for the same period a year ago. The company’s focus on cost reduction and operating efficiencies paid dividends—third quarter operating income of $10.1 million was 43% greater than operating income of $7.1 million in the same period a year ago. Operating income year to date of $25.5 million is $5.3 million above operating income for the first nine months of last year, an increase of more than 26%. The company's operating margin increased to 13.3%, compared to 10.7% in the third quarter of last year and 11.1% in the second quarter of this year. At $13.7 million, EBITDA for the third quarter was 29% greater than EBITDA of $10.6 million for the same period last year. Year to date EBITDA of $35.9 million is on a record pace.  The company ended the third quarter with net debt of $105.3 million, more than $11 million lower than at the midpoint of this year with a debt service coverage ratio of 3.3 and a debt to EBITDA ratio of 2.3.

International sales have recovered, posting sales of $30.8 million for the third quarter—an increase of 10.6% over the third quarter last year. The company also had substantial gains in the volume of product sold in the international markets, growing 10.7% over the third quarter of last year. Reorganization of the company’s sales strategy in the U.S., combined with much improved coordination with the Mexican operation, have driven the turnaround.

Mexico's operations, with sales of $45.1 million, showed 17% growth from the $38.7 million in sales for the same period last year. The amount of product sold in Mexico in the quarter increased by 10% over the same period last year.

The package of Kohler kitchen and bath products that were introduced throughout the company’s Mexican franchise system a year ago have been well received, complementing the company’s lines of high end ceramic tile products.

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