Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q4 2016 Earnings Presentation
18 slides from Armstrong World Industries's earnings presentation, Feb 27, 2017
Slide 1: Earnings Call Presentation 4th Quarter 2016
Earnings Call Presentation 4th Quarter 2016 February 27, 2017 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: 2016 Year in Review
2016 Year in Review Americas delivered constant currency sales growth of 4.3% - strongest since 2011 Volume was the largest contributor up 2.5% vs. PY representing the strongest volume performance since the downturn AUV was positive driven by strong mix performance and solid “like for like” pricing
Slide 5: Consolidated Company Key Metrics - Fourth Quarter 2016
Consolidated Company Key Metrics - Fourth Quarter 2016 2016 2015 Variance Net Sales (1) $303 $299 1.5% Operating Income (2) $47 $45 4.9% % of Sales 15.4% 14.9% 50 bps EBITDA 66 64 3.1% % of Sales 21.8% 21.4% 40 bps Earnings Per Share (3) $0.45 $0.29 56.3% Net Debt 732 779 (47) As reported Net Sales:
Slide 6: EBITDA Bridge – Fourth Quarter 2016 vs. PY
EBITDA Bridge – Fourth Quarter 2016 vs. PY $2 ($3) $2 $1 ($1) $66 $1
Slide 7: Americas Fourth Quarter Results
Net sales increased 3.6% as strength in the U.S. commercial channel was partially offset by softness in Latin America. Average unit value (“AUV”) achievement accelerated and improved 110 bps sequentially over the third quarter with both strong mix performance and solid “like for like” pricing. Ameri
Slide 8: EMEA Fourth Quarter Results
Excluding the unfavorable impact of foreign exchange of $4 million, net sales decreased 7.3% driven mainly by lower volumes in the UK and the Middle East partially offset by continued growth in Russia. EMEA Fourth Quarter Results Margins improved 10 bps driven by improvement in manufacturing & input
Slide 9: Pacific Rim Fourth Quarter Results
Excluding the unfavorable impact of foreign exchange, net sales increased 8.5% due to strength in Australia and China partially offset by weakness in India. Pacific Rim Fourth Quarter Results Margins improved 110 bps driven by improvement in volume and manufacturing & input costs Key Highlights 2015
Slide 10: Consolidated Company Key Metrics – Full Year 2016
Consolidated Company Key Metrics – Full Year 2016 2016 2015 Variance Net Sales (1) $1,249 $1,224 2.1% Operating Income (2) 237 218 8.5% % of Sales 18.9% 17.8% 110 bps EBITDA 315 296 6.4% % of Sales 25.2% 24.2% 100 bps 2016 Ongoing Standalone EBITDA (3) 319 296 7.8% % of Sales 25.5% 24.2% 130 bps Ear
Slide 11: EBITDA Bridge – Full Year 2016 vs. Prior Year
EBITDA Bridge – Full Year 2016 vs. Prior Year ($2) $9 ($2) $1 $315 $319 $4
Slide 12: 2017 Guidance
2017 Guidance $2.60 – $2.70 12% – 16% YoY Growth $2.34 $2.32 Adjusted EBITDA(2) Adjusted EPS(3) Free Cash Flow(4) Revenue(1) 2016 Constant Currency Results at 16’ FX $1,249 $319 $1,230 $317 $1,290 – $1,320 5% – 7% YoY Growth $350 – $360 10% – 14% YoY Growth $130 – $145 11% – 24% YoY Growth $117 $117
Slide 13: Appendix
Appendix @mstrong WORLD INDUSTRIES
Slide 14: Tectum Acquisition
Tectum Acquisition Tectum is a manufacturer of high-impact wood fiber acoustical panels and roof deck for the commercial and institutional construction industries with a history spanning over 65 years. Completed acquisition in January 2017 FY 2016 annual sales totaled approximately $25M Provides opp
Slide 15: Q4 2016 vs. PY - Reported Net Income to Adjusted EBITDA
Q4 2016 vs. PY - Reported Net Income to Adjusted EBITDA CONSOLIDATED AMERICAS EMEA PACIFIC RIM CORPORATE 2016 2015 V 2016 2015 V 2016 2015 V 2016 2015 V 2016 2015 V Net Income - As Reported $29 ($14) $43 - - - - - - - - - - - - Tax (Expense) ($6) ($2) ($4) - - - - - - - - - - - - EBT - As Reported $
Slide 16: FY 2016 vs. PY - Reported Net Income to Adjusted EBITDA
FY 2016 vs. PY - Reported Net Income to Adjusted EBITDA CONSOLIDATED AMERICAS EMEA PACIFIC RIM CORPORATE 2016 2015 V 2016 2015 V 2016 2015 V 2016 2015 V 2016 2015 V Net Income - As Reported $94 $27 $67 - - - - - - - - - - - - Tax (Expense) ($50) ($53) $3 - - - - - - - - - - - - EBT - As Reported $14
Slide 17: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation As Reported AFI Continuing Operations Cash from Operations $49 ($3) $52 Cash from Investing ($17) ($12) ($5) Subtotal $32 ($15) $47 Separation Costs - - $54 Subtotal - - $101 Interest Rate Swap Settlement - - $11 Subtotal - - $112 Environmental - - $5 Free Cash Flow - -
Slide 18: Consolidated Results Fourth Quarter and Full Year 2016
Consolidated Results Fourth Quarter 2016 Reported Comparability(1) Adjustments FX(2) Adj 2016 Adjusted 2015 Reported Comparability(1) Adjustments FX(2) Adj 2015 Adjusted Net Sales 298 - 5 303 297 - 2 299 Operating Income 40 5 2 47 6 37 2 45 EPS(3) $0.51 ($0.08) $0.02 $0.45 ($0.25) $0.52 $0.02 $0.29
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