Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Merger or Acquisition (November 2017)
18 slides from Armstrong World Industries's merger presentation, Nov 21, 2017
Slide 1: AWI to Sell EMEA and Pacific Rim Businesses
AWI to Sell EMEA and Pacific Rim Businesses November 21, 2017 Exhibit 99.1
Slide 2: Safe Harbor Statement
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 Litigation Reform Act. Those s
Slide 3: Basis of Presentation
All amounts throughout this presentation are in $ millions expect earnings per share or if otherwise noted. Figures may not add due to rounding. When reporting our financial results within this presentation, we make several adjustments. Management uses the non-GAAP measures below in managing the bus
Slide 4: Overview: Strategic Highlights and Financial Summary
Overview Strategic Highlights Financial Summary To focus resources on our best-in-class Americas business Another step in the ongoing transformation of AWI Investing $100 million in high end mineral fiber capabilities in Marietta, Hilliard and Macon Driving innovation at the high end of the mineral
Slide 5: Summary - Continuing Operations, YTD September 2017 Results
Summary - Continuing Operations(1) YTD September 2017 Results YTD 2017 Adjusted Net Sales $680 Adjusted Operating Income $206 % of Sales 30.3% Adjusted EBITDA $252 % of Sales 37.1% Adjusted Earnings Per Share(2,3) $2.19 See reconciliation tables in the appendix which further detail the movements in
Slide 6: P&L - Continuing Operations, YTD September 2017 Results
P&L - Continuing Operations(1) YTD September 2017 Results Historical AWI Discontinued Operations Continuing Operations YTD 2017 – As Reported Net Sales $998 $319 $679 Gross Profit $321 $64 $257 SG&A $163 $57 $106 Equity Earnings ($52) - ($52) Operating Income $210 $7 $203 Earnings Per Share $2.14 ($
Slide 7: Continuing Operations September 30, 2017 Balance Sheet
Continuing Operations(1) September 30, 2017 Balance Sheet Balance sheet excludes net cash from the transaction.
Slide 8: Adjusted Earnings – 2017 Continuing Operations Guidance Components
Adjusted Earnings – 2017 Continuing Operations Guidance Components Adj. Net Sales VPY% Adj. EBITDA VPY % Adj. EPS VPY % Consolidated Midpoint Ex. Environmental(1) $1,323 8% $349 10% $2.61 13% Less: EMEA and Pacific Rim ($425) ($22) Less: Net International Support Costs and WAVE(2) - ($4) Total 2017
Slide 9: Appendix
Appendix = @mstrong
Slide 10: Summary - Continuing Operations, Full Year 2016 Results
Summary - Continuing Operations Full Year 2016 Results Full Year 2016 Adjusted Net Sales $839 Adjusted Operating Income $240 % of Sales 28.6% Adjusted EBITDA $295 % of Sales 35.2% Adjusted Earnings Per Share(1,2) $2.47 Based on ~56 million diluted shares outstanding for year ended December 31, 2016.
Slide 11: P&L - Continuing Operations, Full Year 2016 Results
P&L - Continuing Operations Full Year 2016 Results Historical AWI Discontinued Operations Continuing Operations Full Year 2016 – As Reported Net Sales $1,235 $397 $838 Gross Profit $371 $66 $305 SG&A $225 $70 $155 Separation Costs $34 - $34 Equity Earnings ($73) - ($73) Operating Income (Loss) $185
Slide 12: Continuing Operations YTD September 2017 - Reconciliation
Continuing Operations YTD September 2017- Reconciliation Operating Income reported in our 10-Q filing for the nine months ended September 30, 2017. U.S. pension expense represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods pres
Slide 13: Continuing Operations Full Year 2016 - Reconciliation
Continuing Operations Full Year 2016 - Reconciliation Operating Income reported in our 10-K filing for the year ended December 31, 2016. U.S. pension expense represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we w
Slide 14: Adjusted Net Sales & EBITDA – 2017 Guidance Reconciliation
Adjusted Net Sales & EBITDA – 2017 Guidance Reconciliation U.S. pension (credit) represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement I
Slide 15: Adjusted Earnings Per Share – 2017 Guidance Reconciliation
Adjusted Earnings Per Share – 2017 Guidance Reconciliation Based on ~54 million diluted shares outstanding U.S. pension (credit) represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not
Slide 16: Continuing Operations YTD September 2017 - EPS Reconciliation
Continuing Operations YTD September 2017- EPS Reconciliation Based on ~54 million diluted shares outstanding for the nine months ended September 30, 2017. Operating Income reported in our 10-Q filing for the nine months ended September 30, 2017. U.S. pension expense represents the actuarial net peri
Slide 17: Continuing Operations Full Year 2016 - EPS Reconciliation
Continuing Operations Full Year 2016 – EPS Reconciliation Based on ~56 million diluted shares outstanding for the year ended December 31, 2016. Operating Income reported in our 10-K filing for the year ended December 31, 2016. U.S. pension expense represents the actuarial net periodic benefit cost e
Slide 18: Additional Comments
Additional Comments The negative cash balance in discounted operations on the balance sheet on slide 7 reflects approximately $76 million in cash held by certain EMEA and Pacific Rim entities offset by approximately $89 million of outstanding balances due to AWI from certain EMEA and Pacific Rim ent
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