Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q1 2014 Earnings Presentation
15 slides from Armstrong World Industries's earnings presentation, Apr 28, 2014
Slide 1: Earnings Call Presentation Q1 2014
Earnings Call Presentation st Quarter 2014 April 28, 2014 Exhibit 99.2
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
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
Slide 4: Key Metrics – First Quarter
As reported Net Sales: $634 million in and $622 million in As reported Operating Income: $53 million in and $47 million in As reported EPS: $0.30 in and $0.05 in Unadjusted Key Metrics – First Quarter Variance Net Sales $631 $614 2.8% Operating Income 2.4% % of Sales 8.5% 8.5% 0 bps EBITDA 7.0% % of
Slide 5: First Quarter Adjusted EBITDA to Reported Net Income
V EBITDA– Adjusted $83 $78 $5 Depreciation and Amortization Operating Income – Adjusted $54 $53 $1 Foreign Exchange Movements - - - Cost Reduction Initiatives Operating Income – As Reported $53 $47 $6 Interest/Other (Expense) EBT $36 $15 $21 Tax (Expense) Net Income $17 $3 $14 First Quarter vs. PY–
Slide 6: First Quarter Sales and EBITDA by Segment vs. PY
First Quarter Sales and EBITDA by Segment – vs. PY
Slide 7: EBITDA Bridge – First Quarter vs. Prior Year
EBITDA Bridge – First Quarter vs. Prior Year
Slide 8: Free Cash Flow – First Quarter vs. Prior Year
Free Cash Flow – First Quarter vs. Prior Year
Slide 9: Key Metrics – Guidance 2014
Estimate Range Variance Net Sales 2,800 to 2,900 2,700 4% to 7% Operating Income to 7% to 17% EBITDA to 9% to 17% Earnings Per Share $2.55 to $2.80 $1.98 29% to 41% Free Cash Flow to (34)% to 25% Guidance is presented using 2014 budgeted foreign exchange rates 2013 results are presented using 2014 b
Slide 10: 2014 Financial Outlook
2014 Financial Outlook $30 - $40 million vs. 2013 Adjusted Gross Margin 100 to 150 bps vs. 2013 16.3% to 16.8% of sales $0 - $5 million vs. 2013 $30 - $40 million; Adjusted long-term ETR of ~39% Sales $710– $750 million; EBITDA $90 – $110 million $195 - $215 million < $5 million Raw Material & Energ
Slide 11: Appendix
Appendix
Slide 12: 2014 Adjusted Operating Income to Free Cash Flow
2014 Estimate Range Adjusted Operating Income to D&A to Adjusted EBITDA to Changes in Working Capital to Capex to Interest Expense to Cash Taxes to Other, including cash payments for restructuring and one-time items Free Cash Flow to Adjusted Operating Income to Free Cash Flow
Slide 13: Consolidated Results – First Quarter
First Quarter Reported Comparability Adjustments FX Adj Adjusted Reported Comparability Adjustments FX Adj Adjusted Net Sales - - Operating Income - - EPS $0.30 $0.12 - $0.42 $0.05 $0.16 - $0.21 See earnings press release and 10-Q for additional detail on comparability adjustments Eliminates impact
Slide 14: Segment Operating Income – First Quarter
First Quarter Reported Comparability Adjustments Adjusted Reported Comparability Adjustments Adjusted Building Products - - Resilient Flooring Wood Flooring - - Unallocated Corporate (Expense) Income - - Segment Operating Income (Loss) Eliminates impact of foreign exchange movements and non-recurrin
Slide 15: Cash Flow – First Quarter
First Quarter ($ millions) Net cash (used for) operations ($33) ($14) Net cash (used for) investing Free Cash Flow ($55) ($51) Cash Flow
Armstrong World Industries — Q1 2014 Earnings Presentation on 6ix