Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q2 2024 Earnings Presentation
17 slides from Armstrong World Industries's earnings presentation, Jul 30, 2024
Slide 1: 2nd Quarter 2024 Earnings Presentation
2 Quarter 2024 nd Earnings Presentation July 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 Q2 2024 Q2 2023 YTD 2024 YTD 2023 Net sales $365.1 $325.4 $691.4 $635.6 Net earnings $65.9 $60.2 $125.8 $107.5 Operating income $95.0 $87.0 $181.1 $157.2 Adj. EBITDA* $125 $111 $236 $207 Operating income margin (operating income % of net s
Slide 5: Double-Digit Top and Bottom-Line Growth
Double-Digit Top and Bottom-Line Growth 2nd Quarter 2024 Key Takeaways $365M (+12% VPY) AWI net sales up 12% and Adj. EBITDA* up 13% Net Sales Total company Adj. EBITDA margin* expanded 10bps to 34.3% Mineral Fiber segment Adj. EBITDA* up 10% $125M (+13% VPY) Adj. EBITDA margin* expanded 130bps to 4
Slide 6: Mineral Fiber Q2 2024 Results
Solid Sales Growth with Robust Adj. EBITDA Margin* Expansion Mineral Fiber Q2 2024 Results $250 $234 Q2 Mineral Fiber Key Highlights Net Sales +7% Growth VPY 6% topline AUV growth driven primarily from ● positive like-for-like pricing and, to a lesser extent, favorable mix Q2 '23 Q2 '24 Volume growt
Slide 7: Architectural Specialties Q2 2024 Results
Robust Sales Growth Driven by Recent Acquisitions Architectural Specialties Q2 2024 Results $115 Q2 Architectural Specialties Key Highlights Net Sales $91 Growth VPY Sales growth driven primarily by +26% ● recent acquisitions ● Increased SG&A driven by 3form and BOK Q2 '23 Q2 '24 Adj. EBITDA* VPY Q1
Slide 8: Q2 2024 Consolidated Company Key Metrics
Solid AUV and Recent Acquisitions Drive Top and Bottom-Line Growth Q2 2024 Consolidated Company Key Metrics Q2 2023 Q2 2024 Variance Net Sales $325 $365 12% Adj. EBITDA* $111 $125 13% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 34.2% 34.3% 10bps Adj. Diluted Net Earnings Per Share* $1.38 $1.62
Slide 9: First Half 2024 Consolidated Company Key Metrics
Solid Execution Through First Half of 2024 First Half 2024 Consolidated Company Key Metrics YTD 2023 YTD 2024 Variance Net Sales $636 $691 9% Adj. EBITDA* $207 $236 14% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 32.6% 34.1% 160bps Adj. Diluted Net Earnings Per Share* $2.50 $3.00 20% Adj. Free
Slide 10: Deploying Adj. Free Cash Flow to Fund All Capital Allocation Priorities
Deploying Adj. Free Cash Flow* to Fund All Capital Allocation Priorities 2024 Year to Date Adj. Free Cash Flow* Up 2% 2024 Year to Date Capital Deployment 2024 $35 $25 $25 $99 $105 $103 ($2) ($8) 2023 $42 $23 $57 $10 CapEx Dividends Share Repurchases Acquisitions & Equity Investments 1 *Non-GAAP mea
Slide 11: Raising Full Year 2024 Guidance
Raising Full Year 2024 Guidance Solid execution driving growth and margin expansion Net Sales Growth Adj. EBITDA Commentary1 $1,415M to $1,440M $474M to $486M Macro uncertainty continues 9% to 11% YoY 10% to 13% YoY Better-than-expected market conditions in 2H Prior: $1,395M to $1,435M Prior: $465M
Slide 12: Appendix
Appendix
Slide 13: Updating Full Year 2024 Assumptions
Updating Full Year 2024 Assumptions Segment1 Net Sales Adjusted EBITDA Margin Mineral Fiber +4% to +6% growth (prior: +2% to +5%) ~41% (prior: >40%) Architectural Specialties +22% to +24% growth (prior +21% to +24%) ~18% (unchanged) Consolidated Metrics Full Year 2024 Shipping Days vs 2023 2024 2025
Slide 14: Q2 2024 Adjusted EBITDA and Diluted EPS Reconciliation
Q2 2024 Adjusted For the Three Months Ended June 30, For the Six Months Ended June 30, Q2 2024 Adjusted EBITDA Reconciliation 2024 2023 2024 2023 Diluted EPS For the Three Months Ended June 30, For the Six Months Ended June 30, Net sales $365 $325 $691 $636 Reconciliation 2024 2023 2024 2023 Net ear
Slide 15: Q2 2024 Adjusted Free Cash Flow Reconciliation
For the Three Months Ended June 30, For the Six Months Ended June 30, Q2 2024 Adjusted Free Cash Flow Reconciliation 2024 2023 2024 2023 Net cash provided by operating activities $57 $68 $84 $94 Net cash (used for) investing activities ($87) ($5) ($81) ($6) Net cash (used for) provided by operating
Slide 16: Q2 2024 Segment Adj. EBITDA Reconciliation
For the Three Months Ended June 30, For the Six Months Ended June 30, Q2 2024 Segment Adj. MF AS UC MF AS UC EBITDA Reconciliation 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Net sales $250 $234 $115 $91 - - $490 $462 $202 $173 - - Operating income (loss) $82 $76 $14 $12 ($1) ($1) $1
Slide 17: 2024 Adj. EBITDA and Adj. Diluted EPS Guidance Reconciliation
2024 Adj. EBITDA Full Year 2024 2024 Adj. Diluted EPS Guidance Reconciliation Low High Full Year 2024 Guidance Reconciliation Low High Net earnings $254 $257 Net earnings $254 $257 Add: Income tax expense 85 87 Add: Income tax expense 85 87 Earnings before income taxes $339 $344 Earnings before inco
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