Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q1 2019 Earnings Presentation
16 slides from Armstrong World Industries's earnings presentation, Apr 29, 2019
Slide 1: Earnings Call Presentation 1st Quarter 2019
Exhibit 99.2 April 29, 2019 Earnings Call Presentation 1st Quarter 2019
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 2019
Consolidated Company Key Metrics-First Quarter 2019 4 2019 2018 Variance Net Sales $242 $227 7% Adj. EBITDA $92 $79 17% % of Sales 38% 35% 330 bps Adj. Earnings Per Share (1) $1.10 $0.88 24% Adj. Free Cash Flow $18 $4 395% Net Debt $538 $726 ($188) Adj. EBITDA Change (Left-hand scale) % Change in Ne
Slide 5: Adjusted EBITDA Bridge – First Quarter 2019 vs. PY
Adjusted EBITDA Bridge – First Quarter 2019 vs. PY 5 $100 $95 $2 $92 $16 $2 $90 ($0) ($3) $85 $80 $79 $75 ($3) $70 Q1 2018 Volume Price/Mix Input Costs Mfg Cost SG&A WAVE Q1 2019 "AUV" Strong price realization in Mineral Fiber segment coupled with a 24% increase in Architectural Specialties sales dr
Slide 6: Adjusted Free Cash Flow Bridge - First Quarter 2019 vs. PY
Adjusted Free Cash Flow Bridge - First Quarter 2019 vs. PY 6 $25.0 $16 $20.0 $2 $18 $4 $15.0 ($5) ($3) $10.0 $5.0 $4 $0.0 (1) Q1 2018 Operating Capex Interest WAVE Other Q1 2019 Cash Flow Paid Dividends Strong operating cash flow and WAVE dividend drove adjusted free cash flow up $14M NOTE: Adjustme
Slide 7: Mineral Fiber First Quarter Results
Mineral Fiber First Quarter Results 7 Sales Key Highlights $197 Up 3% $191 • Mineral fiber sales grew $6 million driven by strong price realization partially offset by lower volume • Adjusted EBITDA was up 17% as strong AUV gains more than offset inflationary headwinds Q1 2019 Q1 2018 2018 Q1 Adjust
Slide 8: Architectural Specialties First Quarter Results
Architectural Specialties First Quarter Results 8 Sales $45 Up 24% Key Highlights • Sales up 24% driven by organic sales growth of $37 9% and recent acquisitions • Adjusted EBITDA up 15% as sales gains were partially offset by higher manufacturing and SG&A expenses Q1 2019 Q1 2018 2018 Q1 Adjusted E
Slide 9: 2019 Guidance
2019 Guidance 9 2018 Actual 2019 Guidance 0% - 2% Mineral Fiber volume Revenue $1,040 - $1,075 >3% Average Unit Value (AUV) increase $975 7% – 10% YoY Growth >15% Architectural Specialties volume 1-3 Total acquisitions add 1% - 3% Earnings contribution from AUV Adjusted $390 - $410 Archi
Slide 10: Appendix
Appendix Sms = @mstrong WORLD INDUSTRIES
Slide 11: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 11 CONSOLIDATED For the Three Months Ended March 31, 2019 2018 V Earnings from continuing operations, Reported $36 $41 ($5) Add: Income tax expense, as reported $13 $8 $5 Earnings before tax, Reported $50 $49 - Add: Interest/other income and expense, net $5 - $5 Operat
Slide 12: Diluted Earnings Per Share Reconciliation
Adjusted Diluted Earnings Per Share Reconciliation 12 CONSOLIDATED For the Three Months Ended March 31, Per Diluted Per Diluted 2019 2018 V Share (1) Share (2) Earnings from continuing operations, As Reported $36 $0.73 $41 $0.76 ($5) Add: Income tax expense, as reported $13 $8 $5 Earnings from conti
Slide 13: Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation 13 Q1 2019 Q1 2018 As Reported Net cash provided by $15 $26 operating activities As Reported Net cash provided by ($38) $6 (used for) investing activities Subtotal ($23) $32 Add: Acquisitions, net $43 - Add: Litigation, net $3 - (Less): Environmental (Recoverie
Slide 14: Segment Reported Operating Income (Loss) to Adjusted EBITDA
Segment Reported Operating Income (Loss) to Adjusted EBITDA 14 Q1 2019 vs. PY ARCHITECTURAL UNALLOCATED MINERAL FIBER SPECIALTIES CORPORATE 2019 2018 V 2019 2018 V 2019 2018 V Operating Income (Loss) – As Reported $48 $44 $4 $9 $8 $1 ($2) ($2) - Add: U.S. Pension Cost(1) - - - - - - $1 $1 - Add: Lit
Slide 15: Net Sales & EBITDA – Guidance Reconciliation
Net Sales & EBITDA – Guidance Reconciliation 15 Net Sales For the Year Ending December 31, 2019 Low to High Reported Net Sales $1,040 to $1,075 Adjusted EBITDA For the Year Ending December 31, 2019 Low to High Net income 226 to 241 Add: Interest expense 40 40 Add: Income tax expense 69 74 (Less): U.
Slide 16: EPS & Free Cash Flow – Guidance Reconciliation
Adjusted EPS & Free Cash Flow – Guidance Reconciliation 16 Adjusted Diluted Earnings Per Share For the Year Ending December 31, 2019 Per Diluted Per Diluted Low to High Share (1) Share (1) Net Income $226 $4.60 to $241 $4.90 Add: Interest expense $40 $40 (Less): U.S. Pension credit ($15) ($15) Add:
Armstrong World Industries — Q1 2019 Earnings Presentation on 6ix