Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q1 2013 Earnings Presentation
16 slides from Armstrong World Industries's earnings presentation, Apr 29, 2013
Slide 1: Earnings Call Presentation First Quarter 2013
Earnings Call Presentation st Quarter 2013 April 29, 2013 Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement Our disclosures in this presentation, including without limitation, those relating to future financial results guidance, and in our other public documents and comments contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Those s
Slide 3: Basis of Presentation Explanation
All figures throughout the presentation are in $ millions unless otherwise noted. Figures may not add due to rounding. Basis of Presentation Explanation When reporting our financial results within this presentation, we make several adjustments. Management uses the non-GAAP measures below in managing
Slide 4: Key Metrics – First Quarter 2013
(1) As reported Net Sales: $622 million in 2013 and $636 million in 2012 (2) As reported Operating Income: $47 million in 2013 and $43 million in 2012 (3) As reported EPS: $0.05 in 2013 and $0.32 in 2012 (4) Cash flow information includes cash flows attributable to Cabinets (5) Unadjusted Key Metric
Slide 5: First Quarter 2013 vs. PY – Adjusted EBITDA to Reported Net Income
V EBITDA– Adjusted $79 $84 ($5) Depreciation and Amortization (25) (25) - Operating Income – Adjusted $54 $59 ($5) Foreign Exchange Movements (1) - (1) Cost Reduction Initiatives (5) (2) (3) Accelerated Depreciation (not included above) - (9) Impairments - (5) Restructuring (1) - (1) Operating Incom
Slide 6: First Quarter Sales and EBITDA by Segment – 2013 vs. PY
First Quarter Sales and EBITDA by Segment – 2013 vs. PY
Slide 7: EBITDA Bridge – First Quarter 2013 vs. Prior Year
$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Price / Mix Volume Input Costs Mfg Cost SG&A WAVE Pension Credit Change in D&A $7 ($3) $0 ($13) EBITDA Bridge – First Quarter 2013 vs. Prior Year $3 $0 ($1) $2 $84 $79
Slide 8: Free Cash Flow – First Quarter 2013 vs. Prior Year
($50) ($51) ($8) $20 ($18) ($3) ($3) $11 ($80) ($70) ($60) ($50) ($40) ($30) ($20) ($10) $0 $10 $20 Cash Earnings Working Capital Capex Interest Exp WAVE Dividends Other Free Cash Flow – First Quarter 2013 vs. Prior Year Cash flow information includes cash flows attributable to Cabinets
Slide 9: Key Metrics – Guidance 2013
Estimate Range (1) (1) Variance Net Sales (2) 2,700 to 2,800 2,623 3% to 7% Operating Income (3) to (7)% to 3% EBITDA to (3)% to 4% Earnings Per Share (4) $2.15 to $2.45 $2.53 (15)% to (3)% Free Cash Flow to (16)% to 40% (1) Guidance and 2012 results are presented using 2013 budgeted foreign exchang
Slide 10: 2013 Financial Outlook
2013 Financial Outlook $50 - $60 million vs. 2012 2.5% Annual Gross Productivity target; Adjusted Gross Margin (50) to (100) bps vs. 2012 Down $10 million; 60% manufacturing, 40% SG&A $0 - $5 million vs. 2012 $10 - $30 million; Adjusted long-term ETR of ~39% (2) Sales (1) $680 – $730 million; EBITDA
Slide 11: Appendix
Appendix
Slide 12: Patriot impact on Y-o-Y Comparisons
Patriot impact on Y-o-Y Comparisons Q3 2012 Q4 2012 2012 1H 2013 Q3 2013 2013 • Cabinets • Announced sale in Q3 2012 and finalized sale in Q4 2012 • Treated as discontinued operation starting with Q3 2012 • Patriot • Completed sale in Q3 2012 • Results included in the Wood Flooring segment Divested
Slide 13: Adjusted Operating Income to Free Cash Flow – 2013 Estimate Range
2013 Estimate Range Adjusted Operating Income to D&A Adjusted EBITDA to Changes in Working Capital (10) to (30) Capex (170) to (190) Interest Expense (65) to (70) Cash Taxes (10) to (30) Other, including cash payments for restructuring and one-time items (5) to (10) Free Cash Flow to Adjusted Operat
Slide 14: Consolidated Results – First Quarter
First Quarter Reported Comparability (1) Adjustments FX (2) Adj Adjusted Reported Comparability (1) Adjustments FX (2) Adj Adjusted Net Sales - (2) - (2) Operating Income - EPS $0.05 $0.16 $0.01 $0.22 $0.32 $0.17 - $0.49 (1) See earnings press release and 10-Q for additional detail on comparability
Slide 15: Segment Operating Income – First Quarter
First Quarter Reported Comparability (1) Adjustments Adjusted Reported Comparability (1) Adjustments Adjusted Building Products Resilient Flooring Wood Flooring - - Unallocated Corporate (Expense) Income (19) - (19) (13) - (13) Segment Operating Income (Loss) (1) Eliminates impact of foreign exchang
Slide 16: Cash Flow – First Quarter
First Quarter ($ millions) Net cash from operations ($14) ($33) Net cash provided by (used for) investing (37) (16) Add back (subtract) adjustments to reconcile to free cash flow Restricted cash - (1) Free Cash Flow ($51) ($50) Cash Flow Cash flow information includes cash flows attributable to Cabi
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