Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q1 2021 Earnings Presentation
18 slides from Armstrong World Industries's earnings presentation, Apr 27, 2021
Slide 1: Earnings Call Presentation 1st Quarter 2021
Exhibit 99.2 April 27, 2021 Earnings Call Presentation 1st Quarter 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 Our disclosures in this presentation, including without limitation, those relating to future financial results market conditions and guidance, the impacts of COVID-19 on our business, and in our other public documents and comments contain forward-looking statements within the
Slide 3: Basis of Presentation Explanation
Basis of Presentation Explanation 3 When reporting our financial results within this presentation, we make several adjustments. Management uses these non-GAAP measures in managing the business and believes the adjustments provide meaningful comparisons of operating performance between periods. As re
Slide 4: Consolidated Company Key Metrics - First Quarter 2021
Consolidated Company Key Metrics-First Quarter 2021 4 Q1 2021 Q1 2020 Variance Adj. Net Sales $253 $249 2% Adj. EBITDA $85 $97 -12% % of Sales 34% 39% (520) bps Adj. Earnings Per Share (1) $0.84 $1.10 -23% Adj. Free Cash Flow $23 $36 -38% Cash $122 $147 ($25) Revolver Availability $275 $305 ($30) Li
Slide 5: Mineral Fiber First Quarter Results
Mineral Fiber First Quarter Results 5 Sales $189 $198 Key Highlights Down • COVID-19 impacts demand (5%) • Positive like-for-like pricing above inflation • Daily shipping rate y-o-y improves sequentially for third straight quarter • 2020 cost outs return in 2021 Q1 2021 Q1 2020 Q1 Current Quarter Co
Slide 6: Architectural Specialties First Quarter Results
Architectural Specialties First Quarter Results 6 Adjusted Sales Key Highlights $64 Up 25% • 2020 acquisitions add $17 million of sales $51 • Architectural Specialties (AS) organic* sales down (9%) or ($4) million driven by Covid-19 impacts on project timing • Growth investments continue in both org
Slide 7: EBITDA Bridge – First Quarter 2021 vs. PY
Adjusted EBITDA Bridge – First Quarter 2021 vs. PY 7 Normalized (1) $110 $1 $97 $2 ($1) ($3) $90 $2 $85 ($12) $70 $50 Q1 2020 Volume Price/Mix Input Costs Mfg Cost (2) SG&A (3) WAVE Q1 2021 "AUV" 2020 - 12 - - (5) (3) - 4 Acquisitions Favorable price and 2020 acquisitions partially offset MF volume
Slide 8: Free Cash Flow Bridge - First Quarter 2021 vs. PY
Adjusted Free Cash Flow Bridge - First Quarter 2021 vs. PY 8 Normalized(1) $40 $36 $1 ($8) ($1) ($2) $23 ($4) $20 $0 (2) Q1 2020 Operating Capex Interest WAVE Other Q1 2021 Cash Flow Paid Dividends Cash earnings decline driven by volume declines due to Covid-19 NOTE: Adjustments include cash used or
Slide 9: Maintaining 2021 Guidance
Maintaining 2021 Guidance 9 2020 Actual 2021 Guidance MF AUV 4%-6%, positive like-for-like pricing & mix $937 $1,030 – $1,060 Growth Initiatives, primarily kanopi & Healthy Revenue Spaces, drive MF volume up 0%-2% 10% – 13% YoY 2020 acquisitions benefit AS 25%-30% AUV and volume gains fall t
Slide 10: 2021 Sales Guidance
2021 Sales Guidance 10 Q2 2020 key city shutdowns drives changes to historic seasonality COVID-19 impacts create unusual seasonality in 2021
Slide 11: Appendix
Appendix =m 2 ANA @mstrong WORLD INDUSTRIES
Slide 12: EBITDA Reconciliation
Adjusted EBITDA Reconciliation 12 For the Three Months Ended March 31, 2021 2020 V Earnings (Loss) from continuing operations, Reported $38 ($223) $260 Add: Income tax expense (benefit), as reported $12 ($78) $90 Earnings (Loss) before tax, Reported $50 ($300) $350 Add: Interest/other income and exp
Slide 13: Diluted Earnings Per Share Reconciliation
Adjusted Diluted Earnings Per Share Reconciliation 13 CONSOLIDATED For the Three Months Ended March 31, Per Per 2021 Diluted 2020 Diluted V Share Share Earnings (Loss) from continuing operations, As Reported $38 $0.78 ($223) ($4.64) $260 Add/(Less): Income tax expense (benefit), as reported 12 (78)
Slide 14: Free Cash Flow Reconciliation
Adjusted Free Cash(1) Flow Reconciliation 14 For the Three Months Ended March 31, 2021 2020 V Net cash provided by operating activities $20 $26 ($6) Net cash (used for) provided by investing activities ($9) $10 ($19) Add: Environmental payments, net - $1 ($1) Add: Payments for sale of international
Slide 15: Segment Reported Operating Income (Loss) to Adjusted EBITDA
Segment Reported Operating Income (Loss) to Adjusted EBITDA 15 ARCHITECTURAL UNALLOCATED MINERAL FIBER SPECIALTIES CORPORATE For the Three Months Ended March 31, 2021 2020 V 2021 2020 V 2021 2020 V Operating Income (Loss) – As Reported $61 $70 ($9) ($5) $8 ($12) ($2) ($2) ($0) Add: RIP Cost (1) - -
Slide 16: Net Sales Reconciliation
Adjusted Net Sales Reconciliation 16 ARCHITECTURAL MINERAL FIBER CONSOLIDATED SPECIALTIES For the Three Months Ended March 31, 2021 2020 V % 2021 2020 V % 2021 2020 V % Net Sales $189 $198 ($9) (5%) $63 $51 $12 24% $252 $249 $3 1% Deferred revenue adjustment (1) - - - 1 - 1 1 - 1 Adjusted Net Sales
Slide 17: EBITDA – Guidance Reconciliation
EBITDA – Guidance Reconciliation 17 Adjusted EBITDA For the Year Ending December 31, 2021 Low to High Net Income $189 to $198 Add: Interest expense 25 25 (Less): RIP credit (1) (9) (9) Add: Income tax expense 60 63 Add: RIP expense (2) 6 6 Add: D&A 90 90 Adjusted EBITDA $360 to $372 (1) RIP credit r
Slide 18: EPS & Free Cash Flow – Guidance Reconciliation
Adjusted EPS & Free Cash Flow – Guidance Reconciliation 18 Adjusted Diluted Earnings Per Share For the Year Ending December 31, 2021 Per Diluted Per Diluted Low to High Share (1) Share (1) Net income $189 $3.93 to $198 $4.12 Add: Interest expense 25 25 (Less): RIP Credit (2) (9) (9) Add: Income tax
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