Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q2 2016 Earnings Presentation
16 slides from Armstrong World Industries's earnings presentation, Jul 29, 2016
Slide 1: Earnings Call Presentation 2nd Quarter 2016
Earnings Call Presentation 2nd Quarter 2016 July 29, 2016 Exhibit 99.2
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 figures throughout the presentation are in $ millions unless 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 business and believes the adj
Slide 4: Consolidated Company Key Metrics - Second Quarter 2016
Consolidated Company Key Metrics - Second Quarter 2016 2016 2015 Variance Net Sales (1) $315 $303 3.9% Operating Income (2) $61 $49 24.4% % of Sales 19.4% 16.2% 320 bps EBITDA 82 68 19.3% % of Sales 25.9% 22.5% 340 bps Earnings Per Share (3) $0.56 $0.45 24.0% Net Debt 774 823 (49) As reported Net Sa
Slide 5: EBITDA Bridge – Second Quarter 2016 vs. PY
EBITDA Bridge – Second Quarter 2016 vs. PY $3 $3 $2 ($1) $6 ($3) $4 $82
Slide 6: Americas Second Quarter Results
Excluding the unfavorable impact of foreign exchange of $1 million, net sales increased 6.3% as the Americas saw mid single digit volume growth and continued improvement in average unit value (“AUV”). Growth initiatives contributed significantly to this result with premium products in the core tile
Slide 7: EMEA Second Quarter Results
Excluding the unfavorable impact of foreign exchange of $2 million, net sales decreased 1.9% driven mainly by lower volume in the Middle East. EMEA Second Quarter Results Margins improved 130 bps driven by strong cost control Key Highlights * Cost allocations of $2M were removed from the EMEA segmen
Slide 8: Pacific Rim Second Quarter Results
Excluding the unfavorable impact of foreign exchange of $1 million, net sales increased 1.2% due to improvement in AUV. Pacific Rim Second Quarter Results Margins improved 710 bps driven by improvement in AUV and strong SG&A cost control Key Highlights * Costs allocations of less than $1M were remov
Slide 9: Consolidated Company Key Metrics – 1st Half 2016
Consolidated Company Key Metrics – 1st Half 2016 2016 2015 Variance Net Sales (1) $607 $591 2.6% Operating Income (2) 113 91 24.4% % of Sales 18.6% 15.4% 320 bps EBITDA 152 129 18.5% % of Sales 25.1% 21.7% 340 bps Earnings Per Share (3) $1.05 $0.78 35.5% As reported Net Sales: $602 million in 2016 a
Slide 10: EBITDA Bridge – 1H 2016 vs. Prior Year
EBITDA Bridge – 1H 2016 vs. Prior Year $4 $7 $14 ($5) $152
Slide 11: 2016 Guidance
2016 Guidance $2.05 – $2.25 2% – 11% YoY Growth $2.02 Adjusted EBITDA(2) Adjusted EPS(3) Free Cash Flow Revenue(1) 1% – 4% North America volume growth -1% – 2% International volume growth 1% – 3% average unit value increase $42 million of standalone corporate costs 1% – 2% cost savings over inflatio
Slide 12: Appendix
Appendix @mmstrong WORLD INDUSTRIES
Slide 13: Q2 2016 vs. PY - Adjusted EBITDA to Reported Net Income
Q2 2016 vs. PY - Adjusted EBITDA to Reported Net Income CONSOLIDATED AMERICAS EMEA PACIFIC RIM CORPORATE 2016 2015 V 2016 2015 V 2016 2015 V 2016 2015 V 2016 2015 V EBITDA - Adjusted Comparable Base - $68 - $71 - ($1) - $0 ($0) - ($1) Corp Cost Allocation - ($1) - ($17) - $3 - - - - $14 EBITDA– Adju
Slide 14: 1H 2016 vs. PY - Adjusted EBITDA to Reported Net Income
1H 2016 vs. PY - Adjusted EBITDA to Reported Net Income CONSOLIDATED AMERICAS EMEA PACIFIC RIM CORPORATE 2016 2015 V 2016 2015 V 2016 2015 V 2016 2015 V 2016 2015 V EBITDA - Adjusted Comparable Base - $129 - $134 - $2 - ($1) - ($5) Corp Cost Allocation - ($1) - ($34) - $6 - - - - $28 EBITDA– Adjuste
Slide 15: Consolidated Results Second Quarter 2016
Consolidated Results Second Quarter 2016 Reported Comparability(1) Adjustments FX(2) Adj 2016 Adjusted 2015 Reported Comparability(1) Adjustments FX(2) Adj 2015 Adjusted Net Sales 314 - 1 315 306 - (3) 303 Operating Income 52 10 (1) 61 41 8 - 49 EPS $0.29 $0.28 ($0.01) $0.56 $0.27 $0.18 $- $0.45 See
Slide 16: Corporate Cost Allocation by Quarter - Consolidated
Corporate Cost Allocation by Quarter - Consolidated Corporate cost pushdown allocation held constant in prior years for comparability purposes FY Corporate costs of $65.7M were allocated to the Americas business in 2016 of which $16.3M booked in Q2; 70% to SG&A, 30% to COGS and held constant in prio
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