Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q1 2016 Earnings Presentation
13 slides from Armstrong World Industries's earnings presentation, May 9, 2016
Slide 1: Earnings Call Presentation, 1st Quarter 2016
Exhibit 99.2 May 9, 2016 Earnings Call Presentation st 1 Quarter 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 Our disclosures in this presentation, including without limitation, those relating to future financial results guidance and the separation of our flooring business from our building products business, and in our other public documents and comments contain forward-looking stat
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 the non-GAAP measures below in managing the business and believes the adjustments provide meaningful comparisons of operating performance between periods. A
Slide 4: Consolidated Company Key Metrics - First Quarter 2016
Consolidated Company Key Metrics - First Quarter 2016 4 2016 2015 Variance Net Sales (1) $577 $545 5.8% EBITDA 81 72 12.5% % of Sales 14.1% 13.3% 90 bps Earnings Per Share (2) $0.47 $0.35 34.1% Free Cash Flow (75) (42) (78.4%) Net Debt 828 903 (75) EBITDA Change (Left-hand scale) % Change in Sales (
Slide 5: Consolidated Free Cash Flow – First Quarter 2016 vs. Prior Year
Consolidated Free Cash Flow – First Quarter 2016 vs. Prior Year 5 $0 ($20) ($40) ($42) $0 ($60) $3 ($24) ($2) $0 ($10) ($75) ($80) ($100) 2015 Cash Working Capex Interest WAVE Other 2016 Earnings Capital Expense Dividends
Slide 6: Building Products Key Metrics – First Quarter 2016
Building Products Key Metrics – First Quarter 2016 6 2016 2015* Variance Net Sales (1) $292 $288 1.2% Operating Income (2) 54 46 18.1% % of Sales 18.6% 15.9% 270 bps EBITDA 73 65 13.2% % of Sales 25.1% 22.4% 270 bps 2016 2015* V EBITDA – Adjusted $73 $65 $8 Depreciation and Amortization (19) (19) -
Slide 7: Building Products First Quarter Results
Building Products First Quarter Results 7 Net Sales Key Highlights $292 $288 • Excluding the unfavorable impact of foreign exchange $28 $29 of $8 million, net sales increased 1% as volume declines in EMEA and the Pacific Rim were offset by $63 $69 mid single digit volume growth in the Americas and c
Slide 8: 2016E Guidance - Reaffirmed
2016E Guidance - Reaffirmed 8 2015 2015 2016E Normalized at Normalized at Normalized at 2015 FX 2016 FX 2016 FX 1% – 3% North America volume growth Revenue (1) $1,285 $1,224 $1,260 – $1,310 2% – 4% International volume growth 3% – 7% YoY Growth 1% – 3% average unit value increase $42 million of stan
Slide 9: Appendix
9 Appendix
Slide 10: First Quarter 2016 vs. PY – Adjusted EBITDA to Reported Net Income
First Quarter 2016 vs. PY – Adjusted EBITDA to Reported Net Income 10 2016 2015 V EBITDA – Adjusted $81 $72 $9 Depreciation and Amortization (30) (28) (2) Operating Income – Adjusted $51 $44 $7 Non-cash Impact of U.S. Pension 5 6 (1) Separation Expenses 27 4 23 Cost Reduction Initiatives - (2) 2 For
Slide 11: Consolidated Results
Consolidated Results 11 First Quarter 2016 Comparability (1) 2016 2015 Comparability (1) 2015 FX(2) Adj FX(2) Adj Reported Adjustments Adjusted Reported Adjustments Adjusted Net Sales 572 - 5 577 551 - (6) 545 Operating 18 32 1 51 36 8 - 44 Income EPS ($0.21) $0.67 $0.01 $0.47 $0.07 $0.28 $- $0.35 (
Slide 12: Segment Operating Income (Loss)
Segment Operating Income (Loss) 12 First Quarter 2016 Comparability (1) 2016 2015 Comparability (1) 2015 Reported Adjustments Adjusted Reported Adjustments Adjusted Building Products 51 3 54 60 (1) 59 Resilient Flooring (5) 1 (4) 6 (2) 4 Wood Flooring 1 1 2 (1) (1) (2) Unallocated Corporate (28) 27
Slide 13: Cash Flow
Cash Flow 13 First Quarter ($ millions) 2016 2015 Net cash (used for) operations ($65) ($34) Net cash (used for) investing (10) (8) Free Cash Flow ($75) ($42)
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