Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q4 2021 Earnings Presentation
19 slides from Armstrong World Industries's earnings presentation, Feb 22, 2022
Slide 1: 4th Quarter 2021 Earnings Presentation
4th Quarter 2021 Earnings Presentation February 22, 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement Our disclosures in this presentation, including without limitation, those relating to future financial results market conditions and guidance, the impacts of COVID-19 on our business, and in our other public documents and comments contain forward-looking statements within the m
Slide 3: Basis of Presentation Explanation
Basis of Presentation Explanation • Results throughout this presentation are presented on a normalized basis. • We remove the impact of certain discrete expenses and income in certain measures including adjusted net sales, adjusted EBITDA, adjusted earnings per share (EPS) and adjusted free cash flo
Slide 4: Solid Close to Year Providing Momentum for 2022
Solid Close to Year Providing Momentum for 2022 Q4 2021 Highlights Adj. Net Sales* $ Million Exceeded Mineral Fiber (MF) volume expectations in the quarter, 1 lifting FY 2021 volume growth to 3% $239 +18% $283 +34% +13% Strong level of MF Average Unit Value (AUV) growth at 13% in 2 Q4, driven by lik
Slide 5: Quality Q4 Results Driven by Execution and Strong AUV
Quality Q4 Results Driven by Execution and Strong AUV Q4 2021 Consolidated Company Key Metrics Q4 2020 Q4 2021 Variance Adj. Net Sales ($M) $239 $283 18% Adj. EBITDA*($M) $73 $88 21% Adj. EBITDA Margin*(%) 31% 30% 60bps Adj. Earnings Per Share* $0.81 $1.09 35% Adj. Free Cash Flow* ($M) $68 $45 (34%)
Slide 6: MF AUV and Volume Growth Drive Strong Performance
MF AUV and Volume Growth Drive Strong Performance Mineral Fiber Q4 2021 Results Net Sales Mineral Fiber Key Highlights ($ Million) $207 • AUV up 13% vs. Q4 2020 on positive like-for-like pricing and $183 +13% favorable channel mix • Volumes increased on more normalized demand vs. impacts from COVID-
Slide 7: Organic Growth & 2020 Acquisitions Contribute to Solid Performance
Organic Growth & 2020 Acquisitions Contribute to Solid Performance Architectural Specialties Q4 2021 Results Adj. Net Sales* Key Highlights ($ Million) $75 • 2020 Acquisitions added $14 in sales and $2 in EBITDA vs. prior year $56 +34% • Organic(1) sales up 12% driven by increased volumes and pricin
Slide 8: Strong FY Rebound From COVID Depressed 2020 Results
Strong FY Rebound From COVID Depressed 2020 Results Consolidated Company Key Metrics – FY 2021 FY 2020 FY 2021 Variance Adj. Net Sales* ($M) $938 $1,107 18% Adj. EBITDA*($M) $330 $372 13% Adj. EBITDA Margin (%) 35% 34% (160bps) Adj. Earnings Per Share* $3.74 $4.36 17% Adj. Free Cash Flow* ($M) $212
Slide 9: Cash Earnings Decline Driven by Planned Capex Increase vs. 2020
Cash Earnings Decline Driven by Planned Capex Increase vs. 2020 Adjusted Free Cash Flow* Bridge – Full Year 2021 vs. PY ($ Million) $250 $212 ($2) $10 $200 $3 $190 ($8) ($24) $150 $100 FY 2020 Adj. Operating Capex Interest WAVE Other FY 2021 Cash Flow(1) Paid Dividends 9 *Non-GAAP measure. See appen
Slide 10: 2022 Guidance
2022 Guidance Double-digit growth on both top and bottom line 2021 Actual 2022 Guidance Key Assumptions • MF AUV 8-10% on positive like-for-like pricing & mix benefits $1,215 – $1,255 • Market recovery and benefits from growth initiatives expected to drive MF Net Sales $1,107 volume up 2% - 4% 10% –
Slide 11: Appendix
Appendix
Slide 12: 2021 Adjusted EBITDA Reconciliation
2021 Adjusted EBITDA Reconciliation For the Three Months Ended For the Twelve Months Ended December 31, December 31, 2021 2020 V 2021 2020 V Earnings (Loss) from continuing operations, Reported $42 $35 $7 $185 ($84) $269 Add: Income tax expense (benefit), as reported 9 8 1 57 (43) 100 Earnings (Loss
Slide 13: 2021 Adjusted Diluted Earnings per Share Reconciliation
2021 Adjusted Diluted Earnings per Share Reconciliation For the Three Months Ended December 31, For the Twelve Months Ended December 31, Per Per Per Per 2021 Diluted 2020 Diluted V 2021 Diluted 2020 Diluted V Share (3) Share (3) Share (3) Share (3) Earnings from continuing operations before $42 $0.8
Slide 14: 2021 Adjusted Free Cash Flow Reconciliation
2021 Adjusted Free Cash Flow Reconciliation Consolidated For the Three Months Ended For the Twelve Months Ended December 31, December 31, 2021 2020 V 2021 2020 V As Reported net cash provided by operating activities $49 $70 ($21) $187 $219 ($32) Net cash (used for) provided by investing activities (
Slide 15: 2021 Segment Reported Operating Income (Loss) to Adj. EBITDA
2021 Segment Reported Operating Income (Loss) to Adj. EBITDA MINERAL FIBER ARCHITECTURAL SPECIALTIES UNALLOCATED CORPORATE For the Three Months Ended December 31, 2021 2020 V 2021 2020 V 2021 2020 V Operating Income (Loss) – As Reported $60 $45 $15 ($3) $1 ($5) ($1) ($2) $1 Add: RIP expense(1) - - -
Slide 16: 2021 Adjusted Net Sales Reconciliation
2021 Adjusted Net Sales Reconciliation Consolidated For the Three Months Ended December 31, For the Twelve Months Ended December 31, 2021 2020 V 2021 2020 V Reported Net Sales $283 $239 $44 $1,107 $937 $170 Deferred revenue adjustment (1) - 1 (1) 1 1 (0) Adjusted Net Sales $283 $239 $43 $1,107 $938
Slide 17: 2022 Adjusted EBITDA Guidance Reconciliation
2022 Adjusted EBITDA Guidance Reconciliation Consolidated For the Year Ending December 31, 2022 Low to High Net Income $232 to $241 Add: Interest expense 22 26 (Less): RIP credit (1) (5) (5) Add: Income tax expense 76 79 Operating Income $325 to $340 Add: RIP expense (2) 5 5 Add: Depreciation 65 68
Slide 18: 2022 Adjusted EPS Guidance Reconciliation
2022 Adjusted EPS Guidance Reconciliation Consolidated For the Year Ending December 31, 2022 Low Per Diluted Share (1) to High Per Diluted Share (1) Net income $232 $4.87 to $241 $5.05 Add: Interest expense 22 26 (Less): RIP credit (2) (5) (5) Add: Income tax expense 76 79 Operating income $325 to $
Slide 19: 2022 Adjusted Free Cash Flow Guidance Reconciliation
2022 Adjusted Free Cash Flow Guidance Reconciliation Consolidated For the Year Ending December 31, 2022 Low to High Net cash provided by operating activities $210 to $230 Add: Return of investment from joint venture 95 105 Adjusted net cash provided by operating activities $305 to $335 Less: Capital
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