Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q1 2011 Earnings Presentation
14 slides from Armstrong World Industries's earnings presentation, May 2, 2011
Slide 1: Armstrong World Industries Earnings Call Presentation First Quarter 2011
Armstrong World Industries Earnings Call Presentation First Quarter 2011 May 2, 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking statements” related to Armstrong World Industries, Inc.’s, future financial performance. Our results could differ materially from the results discussed in these forward-looking statements due to known and unknown risks and uncertainti
Slide 3: Key Metrics - First Quarter 2011 Adjusted
2011 Actual 2010 Actual Variance Net Sales (2) $681 $659 3.3% Operating Income (3) 66 27 144.4% % of Sales 9.7% 4.1% 560 bps EBITDA 93 55 69.1% % of Sales 13.7% 8.3% 530 bps Earnings Per Share (4), (5) $0.51 $0.24 $0.27 Free Cash Flow (44) (30) (14) Net (Cash) Debt (6) 604 (59) 663 Key Metrics - Fir
Slide 4: Q1 2011 - Adjusted EBITDA to Reported Net Income
2011 2010 V EBITDA- Adjusted (1) $93 $55 $38 Depreciation and Amortization (27) (28) 1 Operating Income - Adjusted (1) $66 $27 $39 Foreign Exchange Movements 1 (1) 2 Cost Reduction Initiatives (5) (2) (3) Accelerated Depreciation (not included above) (5) - (5) Restructuring (5) - (5) Executive Trans
Slide 5: Q1 Sales and Adjusted EBITDA by Segment - 2011 vs. 2010
Q1 Sales and Adjusted EBITDA (1) by Segment - 2011 vs. 2010 Financial Overview (1) Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements.
Slide 6: Adjusted EBITDA Bridge - Q1 2011 versus Prior Year
Adjusted EBITDA (1) Bridge - Q1 2011 versus Prior Year Financial Overview (1) Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. ($1)
Slide 7: Free Cash Flow - First Quarter 2011 versus Prior Year
Free Cash Flow - First Quarter 2011 versus Prior Year Financial Overview
Slide 8: Key Metrics - Guidance
2011 Estimate Range 2010 Variance Net Sales 2,800 to 3,000 2,766 1% to 8% Operating Income (2) 270 to 310 189 43% to 64% EBITDA 375 to 415 303 24% to 37% Earnings Per Share (3),(4) $2.17 to $2.57 $1.73 25% to 49% Free Cash Flow 80 to 120 180 (56%) to (33%) Key Metrics (1) - Guidance Financial Overvi
Slide 9: Financial Outlook
2011 Financial Outlook Financial Overview ¾ Raw Material & Energy Inflation* $40 - $50 million increase ¾ Manufacturing Productivity* Gross Margin +125 to +225 bps vs. 2010 ¾ U.S. Pension Credit ~$25 million, down ~$25 million vs. 2010 60% manufacturing, 40% SG&A ¾ Earnings from WAVE $5 - $10 millio
Slide 10: Appendix
Appendix
Slide 11: Adjusted Operating Income to Free Cash Flow
2011 Estimate Range Adjusted Operating Income 270 to 310 D&A 105 Adjusted EBITDA 375 to 415 Changes in Working Capital 5 to 25 Capex (180) to (200) Pension Credit (25) Interest Expense (50) Cash Taxes (15) Other, including cash payments for restructuring and one-time items (30) Free Cash Flow 80 to
Slide 12: Consolidated Results
First Quarter 2011 Reported Comparability (1) Adjustments FX (2) Adj 2011 Adjusted 2010 Reported Comparability (1) Adjustments FX (2) Adj 2010 Adjusted Net Sales 685 - (4) 681 659 - - 659 Operating Income 52 15 (1) 66 13 14 - 27 EPS $0.23 $0.30 ($0.02) $0.51 ($0.34) $0.58 $ - $0.24 Consolidated Resu
Slide 13: Segment Operating Income (Loss)
First Quarter 2011 Reported Comparability (1) Adjustments 2011 Adjusted 2010 Reported Comparability (1) Adjustments 2010 Adjusted Resilient Flooring (1) 8 7 (5) - (5) Wood Flooring 3 - 3 (2) - (2) Building Products 61 7 68 43 (1) 42 Cabinets (1) - (1) (4) - (4) Unallocated Corporate (Expense) Income
Slide 14: Cash Flow
First Quarter ($-millions) 2011 2010 Net Cash From Operations (36) (28) Plus / (Minus) Net Cash from Investing (8) (2) Equals Free Cash Flow (44) (30) Cash Flow Financial Overview Appendix
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