Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q4 2012 Earnings Presentation
21 slides from Armstrong World Industries's earnings presentation, Feb 19, 2013
Slide 1: Earnings Call Presentation 4th Quarter 2012
Earnings Call Presentation 4th Quarter 2012 February 19, 2013
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
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 - Fourth Quarter 2012
As reported Net Sales: $613 million in 2012 and $623 million in 2011As reported Operating Income: $42 million in 2012 and $24 million in 2011As reported EPS: $0.15 in 2012 and $0.16 in 2011Cash flow information includes cash flows attributable to CabinetsUnadjusted Key Metrics - Fourth Quarter 2012
Slide 5: Fourth Quarter 2012 vs. PY - Adjusted EBITDA to Reported Net Income
2012 2011 V EBITDA- Adjusted $72 $53 $19 Depreciation and Amortization (26) (24) (2) Operating Income - Adjusted $46 $29 $17 Foreign Exchange Movements 1 - 1 Cost Reduction Initiatives (4) (3) (1) Impairments (1) (1) - Restructuring - (1) 1 Operating Income - As Reported $42 $24 $18 Interest (Expens
Slide 6: Fourth Quarter Sales and EBITDA by Segment - 2012 vs. PY
Fourth Quarter Sales and EBITDA by Segment - 2012 vs. PY 6
Slide 7: EBITDA Bridge - Fourth Quarter 2012 vs. Prior Year
($3) EBITDA Bridge - Fourth Quarter 2012 vs. Prior Year 7 $3 $7 $7 $1 $53 $72
Slide 8: Free Cash Flow - Fourth Quarter 2012 vs. Prior Year
Free Cash Flow - Fourth Quarter 2012 vs. Prior Year 8 ($17) ($14) ($3) ($50) ($6) Cash flow information includes cash flows attributable to Cabinets
Slide 9: Key Metrics - Full Year 2012
As reported Net Sales: $2,619 million in 2012 and $2,723 million in 2011.As reported Operating Income: $271 million in 2012 and $240 million in 2011As reported EPS: $2.41 in 2012 and $1.91 in 2011.Cash flow information includes cash flows attributable to CabinetsUnadjusted 2012 Actual 2011 Actual Va
Slide 10: Full Year Sales and EBITDA by Segment - 2012 vs. 2011
Full Year Sales and EBITDA by Segment - 2012 vs. 2011 10
Slide 11: EBITDA Bridge - Full Year 2012 vs. Prior Year
($44) EBITDA Bridge - Full Year 2012 vs. Prior Year 11 $21 $32 $32 $1
Slide 12: Free Cash Flow - Full Year 2012 vs. Prior Year
Free Cash Flow - Full Year 2012 vs. Prior Year 12 ($34) ($7) ($48) ($39) ($6) $53 Cash flow information includes cash flows attributable to Cabinets
Slide 13: Key Metrics - Guidance 2013
2013 Estimate Range (1) 2013 Estimate Range (1) 2013 Estimate Range (1) 2012(2) Variance Variance Variance Net Sales(3) 2,700 to 2,800 2,619 3% to 7% Operating Income(4) 280 to 310 300 (7)% to 3% EBITDA 390 to 420 400 (3)% to 5% Earnings Per Share(5) $2.30 to $2.60 $2.51 (8)% to 4% Free Cash Flow 75
Slide 14: 2013 Financial Outlook
2013 Financial Outlook $40 - $50 million increase2.5% Annual Gross Productivity target ; Adjusted Gross Margin (25) to (75) bps vs. 2012Down $10 million; 60% manufacturing, 40% SG&A $0 - $5 million vs. 2012 $25 - $50 million. Adjusted long-term ETR of ~39%(2) Sales(1) $600 - $650 million EBITDA $65
Slide 15: Appendix
Appendix 15
Slide 16: Divested Businesses Impact on Y-o-Y Comparisons
CabinetsAnnounced sale in Q3 2012 and finalized sale in Q4 2012Treated as discontinued operation starting with Q3 2012PatriotCompleted sale in Q3 2012Results included in the Wood Flooring segment 16 Divested Businesses Impact on Y-o-Y Comparisons Q3 2012 Q4 2012 2012 1H 2013 Q3 2013 2013 Net Sales $
Slide 17: Full Year - Adjusted EBITDA to Reported Net Income
2012 2011 V EBITDA- Adjusted $400 $374 $26 Depreciation and Amortization (100) (102) 2 Operating Income - Adjusted $300 $272 $28 Foreign Exchange Movements 2 4 (2) Cost Reduction Initiatives (13) (15) 2 Accelerated Depreciation (not included above) (12) (9) (3) Impairment (6) (3) (3) Restructuring -
Slide 18: Adjusted Operating Income to Free Cash Flow
2013 Estimate Range 2013 Estimate Range 2013 Estimate Range Adjusted Operating Income 280 to 310 D&A 110 110 110 Adjusted EBITDA 390 to 420 Changes in Working Capital (25) to (45) Capex (170) to (190) Interest Expense (50) to (55) Cash Taxes (25) to (50) Other, including cash payments for restructur
Slide 19: Reported to Adjusted Net Sales, Operating Income and EPS
Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter 2012 Reported Comparability(1) Adjustments FX(2) Adj 2012 Adjusted 2011 Reported Comparability(1) Adjustments FX(2) Adj 2011 Adjusted 2011 Adjusted Ne
Slide 20: Segment Operating Income (Loss)
Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter 2012 Reported Comparability(1) Adjustments 2012 Adjusted 2011 Reported Comparability(1) Adjustments 2011 Adjusted Building Products 52 2 54 35 - 35 Resilient Flooring (1) - (1) (5) 4 (1) Wood Flo
Slide 21: Cash Flow
Fourth Quarter Fourth Quarter Full Year Full Year ($ millions) 2012 2011 2012 2011 Net cash from operations $92 $82 $222 $212 Net cash (used for) provided by investing activities (42) 24 (93) (18) Add back (subtract) adjustments to reconcile to free cash flow Restricted cash - (20) (1) (28) Acquisit
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