Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q1 2018 Earnings Presentation
16 slides from Armstrong World Industries's earnings presentation, Apr 30, 2018
Slide 1: Earnings Call Presentation 1st Quarter 2018
Earnings Call Presentation 1st Quarter 2018 April 30, 2018 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 dollar figures throughout the presentation are in $ millions (except earnings per share) 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 in managing the
Slide 4: Consolidated Company Key Metrics - First Quarter 2018
Consolidated Company Key Metrics - First Quarter 2018 As reported Operating Income: $50 in 2018 and $57 in 2017 As reported EPS: $0.76 in 2018 and $0.65 in 2017 2018 2017 Variance Net Sales $227.3 $219.8 3.4121929026387665E-2 Adj. EBITDA $78.849778999999998 64 $75.223873999999995 4.8201519108149071E
Slide 5: EBITDA Bridge – First Quarter 2018 vs. PY
Adjusted EBITDA Bridge – First Quarter 2018 vs. PY ($2) $5 ($4) $3 $2 ($2) Adjusted EBITDA up 5% $2 (1) (1) Other includes discontinued operation costs recognized in the Americas and international cost allocation adjustments.
Slide 6: Free Cash Flow Bridge – First Quarter 2018 vs. PY
Adjusted Free Cash Flow Bridge – First Quarter 2018 vs. PY $6 Adjusted Free Cash Flow includes the receipt of cash (net of $26) from insurance settlements reached in the second half of 2017
Slide 7: Mineral Fiber First Quarter Results
Mineral fiber sales grew 0.5% boosted by positive price and mix driving AUV, offset by volume decline EBITDA remained flat for the quarter as AUV gains and SG&A savings were offset by lower volume and inflation in freight and raw materials Mineral Fiber First Quarter Results Strong productivity and
Slide 8: Architectural Specialties First Quarter Results
Sales up 22% driven by organic sales growth Profitability up 70% driven by higher sales volume from new construction activity and increased market penetration Architectural Specialties First Quarter Results Strong quarter on both the top and bottom line Key Highlights 2017 Q1 Adjusted EBITDA $5 Sale
Slide 9: 2018 Guidance
2018 Guidance $3.60 – $3.82 19% – 27% YoY Growth $3.02 Adjusted EBITDA Adjusted EPS(1) Adjusted Free Cash Flow(2) Revenue $894 $319(3) $935– $955 5% – 7% YoY Growth $345 – $360 >10% YoY Growth $175 – $190 20% – 30% YoY Growth $147 As reported expected earnings per share in 2018 of $3.94 - $4.13. 201
Slide 10: Appendix
Appendix = @mstrong WORLD INDUSTRIES
Slide 11: EBITDA Reconciliation
Adjusted EBITDA Reconciliation CONSOLIDATED For the Three MonthsEnded March 31, qtr YTD 2018 2017 V 2016 V Earnings from continuing operations, Reported 41.2 35.500000000000014 5.6999999999999886 99 122 rounding Add: Tax expense 8.1999999999999993 21.8 -13.600000000000001 51 -50 Earnings before tax,
Slide 12: Diluted Earnings Per Share Reconciliation
Adjusted Diluted Earnings Per Share Reconciliation Based on ~53 million diluted shares outstanding for the three months ended March 31, 2018 and ~54 million diluted shares outstanding for the three months ended March 31, 2017. CONSOLIDATED For the Three MonthsEnded March 31, 2018 Per DilutedShare(1)
Slide 13: Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Adjusted free cash flow is defined as cash from operations and dividends received from the WAVE joint venture, less expenditures for property and equipment, and is adjusted to remove the impact of cash used or proceeds received for acquisitions and divestitures
Slide 14: Segment Reported Operating Income (Loss) to Adjusted EBITDA
Segment Reported Operating Income (Loss) to Adjusted EBITDA Q1 2018 vs. PY MINERAL FIBER ARCHITECTURAL SPECIALTIES UNALLOCATED CORPORATE rounding factor 2016 V 2018 2017 V 2018 2017 V 2018 2017 V Operating Income (Loss) – As Reported 43.7 55.5 -11.799999999999997 8.3000000000000007 4.8 3.50000000000
Slide 15: Net Sales & EBITDA – Guidance Reconciliation
Net Sales & EBITDA – Guidance Reconciliation Net Sales Adjusted EBITDA For the Year Ending December 31, 2018 Low to High Reported Net Sales $935 to $955 For the Year Ending December 31, 2018 Low to High Net income $205 to $215 Add: Interest expense 35 35 Add: Income tax expense 65 70 Operating incom
Slide 16: EPS & Free Cash Flow – Guidance Reconciliation
Adjusted EPS & Free Cash Flow – Guidance Reconciliation Adjusted Diluted Earnings Per Share Adjusted Free Cash Flow Adjusted EPS guidance for 2018 is calculated based on an adjusted effective tax rate of 25% and based on ~52 million of diluted shares outstanding. For the Year Ending December 31, 201
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