Armstrong World Industries Inc · NYSE:AWI

Armstrong World Industries — Q1 2012 Earnings Presentation

15 slides from Armstrong World Industries's earnings presentation, Apr 30, 2012

  1. Slide 1: Earnings Call Presentation 1st Quarter 2012

    Earnings Call Presentation 1st Quarter 2012 April 30, 2012

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Our disclosures in this presentation, including without limitation, those relating to future financial results 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

  3. Slide 3: Basis of Presentation Explanation

    All figures throughout the presentation are in $ millions unless otherwise noted. Figures may not add due to rounding. Basis of Presentation Explanation When reporting our financial results within this presentation, we make several adjustments. Management uses the non-GAAP measures below in managing

  4. Slide 4: Key Metrics - First Quarter 2012

    As reported Net Sales: $668 million in 2012 and $685 million in 2011 As reported Operating Income : $42 million in 2012 and $52 million in 2011 As reported EPS: $0.31 in 2012 and $0.23 in 2011 Excludes special dividend of $8.55 per share (~ $500M) paid April 10, 2012 Key Metrics - First Quarter 2012

  5. Slide 5: First Quarter 2012 vs. PY - Adjusted EBITDA to Reported Net Income

    2012 2011 V EBITDA- Adjusted $82 $93 ($11) Depreciation and Amortization (25) (27) 2 Operating Income - Adjusted $57 $66 ($9) Foreign Exchange Movements 1 1 - Cost Reduction Initiatives (2) (5) 3 Accelerated Depreciation (not included above) (9) (5) (4) Restructuring - (5) 5 Impairments (5) - (5) Op

  6. Slide 6: First Quarter Sales and EBITDA by Segment - 2012 vs. PY

    First Quarter Sales and EBITDA by Segment - 2012 vs. PY 6

  7. Slide 7: EBITDA Bridge - First Quarter 2012 vs. Prior Year

    ($12) EBITDA Bridge - First Quarter 2012 vs. Prior Year 7 $7 $4 $5 ($3)

  8. Slide 8: Free Cash Flow - First Quarter 2012 vs. Prior Year

    Free Cash Flow - First Quarter 2012 vs. Prior Year 8

  9. Slide 9: Key Metrics - Guidance 2012

    2012 Estimate Range 2012 Estimate Range 2012 Estimate Range 2011 Variance Variance Variance Net Sales(1) 2,900 to 3,000 2,819 3% to 6% Operating Income(2) 310 to 350 272 14% to 29% EBITDA 420 to 460 377 11% to 22% Earnings Per Share(3) $2.65 to $3.05 $2.23 19% to 37% Free Cash Flow 50 to 100 170 (71

  10. Slide 10: 2012 Financial Outlook

    2012 Financial Outlook $25 - $35 million increase Adjusted Gross Margin +100 to +150 bps vs. 2011 $12 million; 60% manufacturing, 40% SG&A $0 - $5 million vs. 2011 $10 - $20 million. Adjusted ETR of ~40% Sales $740 - $780 million EBITDA $105 - $125 million $240 - $270 million $10 - $15 million assoc

  11. Slide 11: Appendix

    Appendix 11

  12. Slide 12: Adjusted Operating Income to Free Cash Flow

    2012 Estimate Range 2012 Estimate Range 2012 Estimate Range Adjusted Operating Income 310 to 350 D&A 110 110 110 Adjusted EBITDA 420 to 460 Changes in Working Capital (20) to - Capex (240) to (270) Pension Credit (12) (12) (12) Interest Expense (50) to (55) Cash Taxes (10) to (20) Other, including c

  13. Slide 13: Consolidated Results

    First Quarter First Quarter First Quarter First Quarter First Quarter First Quarter First Quarter First Quarter First Quarter 2012 Reported Comparability(1) Adjustments FX(2) Adj 2012 Adjusted 2011 Reported Comparability(1) Adjustments FX(2) Adj 2011 Adjusted Net Sales 668 - (5) 663 685 - (8) 677 Op

  14. Slide 14: Segment Operating Income (Loss)

    First Quarter First Quarter First Quarter First Quarter First Quarter First Quarter First Quarter 2012 Reported Comparability(1) Adjustments 2012 Adjusted 2011 Reported Comparability(1) Adjustments 2011 Adjusted Building Products 43 15 58 62 6 68 Resilient Flooring 11 1 12 (1) 8 7 Wood Flooring 2 -

  15. Slide 15: Cash Flow

    First Quarter First Quarter ($ millions) 2012 2011 Net cash from operations ($33) ($36) Net cash (used for) investing (16) (8) Add back (subtract) adjustments to reconcile to free cash flow Restricted cash (1) - Free Cash Flow ($50) ($44) Cash Flow 15

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