Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q1 2020 Earnings Presentation
15 slides from Armstrong World Industries's earnings presentation, Apr 27, 2020
Slide 1: Earnings Call Presentation 1st Quarter 2020
Exhibit 99.2 April 27, 2020 Earnings Call Presentation 1st Quarter 2020
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, and in our other public documents and comments contain forward-looking statements within the meaning of the Private Securities Litiga
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 2020
Consolidated Company Key Metrics-First Quarter 2020 4 2020 2019 Variance Net Sales $249 $242 3% Adj. EBITDA $97 $92 5% % of Sales 39% 38% 90 bps (1) Adj. Earnings Per Share $1.10 $1.00 10% Adj. Free Cash Flow $36 $18 106% Cash $147 $274 ($127) Revolver Availability $305 $200 53% Liquidity $452 $474
Slide 5: Adjusted EBITDA Bridge – First Quarter 2020 vs. PY
Adjusted EBITDA Bridge – First Quarter 2020 vs. PY 5 Normalized(1) $100 $1 $97 $2 $4 $95 $3 $92 $0 ($4) $90 $85 Q1 2019 Volume Price/Mix Input Costs Mfg Cost SG&A WAVE Q1 2020 "AUV" Volume growth coupled with manufacturing productivity drive adjusted EBITDA up 5% (1) May not sum due to rounding
Slide 6: Adjusted Free Cash Flow Bridge - First Quarter 2020 vs. PY
Adjusted Free Cash Flow Bridge - First Quarter 2020 vs. PY 6 Normalized(1) $40 $4 $36 $4 $3 ($2) $10 $20 $18 $0 (2) Q1 2019 Operating Capex Interest WAVE Other Q1 2020 Cash Flow Paid Dividends Strong operating cash flow drove adjusted free cash flow up $18M NOTE: Adjustments include cash used or pro
Slide 7: Mineral Fiber First Quarter Results
Mineral Fiber First Quarter Results 7 Sales Key Highlights $198 Up 1% $197 • Positive volume despite late quarter pressure from COVID-19 disruptions • Manufacturing gains driven by productivity • WAVE equity earnings increased 3% driven by favorable input costs Q1 2020 Q1 2019 Q1 2019 Adjusted EBITD
Slide 8: Architectural Specialties First Quarter Results
Architectural Specialties First Quarter Results 8 Sales Key Highlights $51 Up 12% • Sales up 12% driven by acquisitions, partially offset due to unfavorable project timing as outlooked $45 Q1 2020 Q1 2019 Q1 2019 Adjusted EBITDA $10 Current Quarter Comments Sales 4 Sales growth fall through to botto
Slide 9: 2020 Guidance (Withdrawn)
2020 Guidance (Withdrawn) 9 2020 Guidance Commentary Prioritizing safety of stakeholders…employees, Revenue Suspended communities, customers, and suppliers Positive healthcare activity offset by project delays in other end-markets Continue to achieve price > inflation… positive AUV Adjusted
Slide 10: Stability Through the Cycle
Stability Through the Cycle 10 450 Historical Indexed Adj. Cash Conversion (2006 = 100) 400 350 300 250 200 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (1) AWI Cash Conversion Index Peer Cash Conversion Index Americas cash conversion never fell below 2006 level
Slide 11: Appendix
Appendix =m 2 ANA @mstrong WORLD INDUSTRIES
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 12 For the Three Months Ended March 31, 2020 2019 V (Loss) earnings from continuing operations, Reported ($223) $36 ($259) Add: Income tax expense, as reported ($78) $13 - (Loss) earnings before tax, Reported ($300) $50 ($350) Add: Interest/other income and expense, ne
Slide 13: Adjusted Diluted Earnings Per Share Reconciliation
Adjusted Diluted Earnings Per Share Reconciliation 13 CONSOLIDATED For the Three Months Ended March 31, Per Per 2020 Diluted 2019 Diluted V Share Share (Loss) earnings from continuing operations, As Reported ($223) ($4.64) $36 $0.73 ($259) Add: Income tax expense, as reported ($78) $13 ($91) (Loss)
Slide 14: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash(1) Flow Reconciliation 14 For the Three Months Ended March 31, 2020 2019 V As Reported Net cash provided by operating activities $26 $15 $11 As Reported Net cash (used for) provided by investing activities $10 ($38) $48 Add/(Less): Acquisitions, net - $43 ($43) Add: Litigation, ne
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, 2020 2019 V 2020 2019 V 2020 2019 V Operating Income (Loss) – As Reported $70 $48 $22 $8 $9 ($2) ($2) ($2) $1 Add: RIP Cost (1) - - - - -
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