Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q1 2024 Earnings Presentation
16 slides from Armstrong World Industries's earnings presentation, Apr 30, 2024
Slide 1: 1st Quarter 2024 Earnings Presentation
1 Quarter 2024 st Earnings Presentation April 30, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement Disclosures in this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, those relating to future financial and operational results, expected savings from cost management initia
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 Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), adjusted diluted
Slide 4: GAAP and non-GAAP Financial Results
GAAP and non-GAAP Financial Results AWI Consolidated Results Q1 2024 Q1 2023 Net sales $326.3 $310.2 Net earnings $59.9 $47.3 Operating income $86.1 $70.2 Adj. EBITDA* $111 $96 Operating income margin (operating income % of net sales) 26.4% 22.6% Adj. EBITDA margin* (Adj. EBITDA % of net sales) 33.9
Slide 5: Delivering Strong Earnings and Cash Flow Growth
Delivering Strong Earnings and Cash Flow Growth 1st Quarter 2024 Key Takeaways $326M (+5% VPY) AWI net sales up 5% and adj. EBITDA* up 16% Net Sales Total company adj. EBITDA margin* expanded 300bps to 33.9% Mineral Fiber segment adj. EBITDA* up 18% $111M (+16% VPY) Adj. EBITDA margin* expanded 450b
Slide 6: 3form at a Glance
3form Acquisition Expands Architectural Specialties Product Portfolio Enhances relationship with architects and designers and strengthens AWI’s market position 3form at a Glance ~390 employees A design-driven category leader 3 production facilities in translucent finishings ~$96M of sales in 2023 6
Slide 7: Robust Adj. EBITDA Margin Expansion on Strong AUV & WAVE
Robust Adj. EBITDA Margin* Expansion on Strong AUV & WAVE Mineral Fiber Q1 2024 Results $240 $228 Net Sales Q1 Mineral Fiber Key Highlights +5% Growth VPY 8% topline AUV growth driven by favorable ● like-for-like pricing and favorable mix Q1 '23 Q1 '24 Adj. EBITDA* VPY Q1 Negative volumes driven by
Slide 8: Consistent Sales Growth Pressured by Project Timing
Consistent Sales Growth Pressured by Project Timing Architectural Specialties Q1 2024 Results $87 $82 Net Sales Q1 Architectural Specialties Key Highlights Growth VPY +6% Sales growth driven by 2023 acquisition of ● BOK Modern and strength in metal category Q1 '23 Q1 '24 ● Adj. EBITDA margin* compre
Slide 9: Strong AUV & WAVE Earnings Drives Adj. EBITDA Margin Expansion
Strong AUV & WAVE Earnings Drives Adj. EBITDA Margin* Expansion Q1 2024 Consolidated Company Key Metrics Q1 2023 Q1 2024 Variance Net Sales $310 $326 5% Adj. EBITDA* $96 $111 16% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 30.9% 33.9% 300bps Adj. Diluted Earnings Per Share* $1.12 $1.38 23% Adj.
Slide 10: Substantial Adjusted Free Cash Flow Growth to Start the Year
Substantial Adjusted Free Cash Flow* Growth to Start the Year Cash flow generation supports all capital allocation priorities Q1 2024 Adj. Free Cash Flow* Up 46% vs Prior Year Q1 2024 Capital Deployment 2024 $15 $12 $15 $6 $43 $30 $- $- 2023 $22 $12 $27 CapEx Dividends Share Repurchases Acquisitions
Slide 11: Raising Full Year 2024 Guidance
Raising Full Year 2024 Guidance Remaining focused on solid execution and margin expansion Net Sales Growth Adj. EBITDA* Commentary1 $1,395M to $1,435M $465M to $485M Expecting slower economic growth in 2H 8% to 11% YoY 8% to 13% YoY Initiatives partially offset lower market demand, Prior: $1,335M to
Slide 12: Appendix
Appendix
Slide 13: Updating Full Year 2024 Assumptions
Updating Full Year 2024 Assumptions Segment1 Net Sales Adjusted EBITDA Margin* Mineral Fiber +2% to +5% growth >40% (prior: ~40%) Architectural Specialties +21% to +24% growth (prior: +6% to +9%) ~18% (prior: ~19%) Consolidated Metrics Full Year 2024 Shipping Days 2023 2024 20252 vs Prior Year Capit
Slide 14: Adjusted EBITDA and Adjusted Diluted EPS Reconciliation
Adjusted EBITDA For the Three Months Ended March 31, Reconciliation 2024 2023 Net sales $326 $310 Adjusted Diluted For the Three Months Ended March 31, EPS Reconciliation 2024 2023 Net earnings $60 $47 Net earnings $60 $47 Add: Income tax expense 20 17 Add: Income tax expense 20 17 Earnings before i
Slide 15: Adjusted Free Cash Flow Reconciliation
For the Three Months Ended March 31, Adjusted Free Cash Flow Reconciliation 2024 2023 Net cash provided by operating activities $26 $26 Net cash provided by (used for) investing activities $6 ($2) Net cash provided by operating and investing activities $32 $25 Add: Acquisitions, net 6 - Add: Conting
Slide 16: 2024 Adj. EBITDA Guidance Reconciliation
2024 Adj. EBITDA Full Year 2024 Guidance Reconciliation Low High Net earnings $253 $259 Add: Income tax expense 84 86 Earnings before income taxes $337 $345 2024 Adj. Diluted EPS Guidance Reconciliation Add: Interest expense 40 42 Full Year 2024 Add: Other non-operating (income), net (10) (8) Low Hi
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