Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q4 2010 Earnings Presentation
22 slides from Armstrong World Industries's earnings presentation, Feb 28, 2011
Slide 1: Armstrong World Industries Investor Presentation Fourth Quarter 2010
Armstrong World Industries Investor Presentation Fourth Quarter 2010 February 28, 2011 Exhibit 99.3
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking statements” related to Armstrong World Industries, Inc.’s, future financial performance. Our results could differ materially from the results discussed in these forward-looking statements due to known and unknown risks and uncertainti
Slide 3: Key Metrics – Fourth Quarter 2010 Adjusted
Key Metrics – Fourth Quarter 2010 Adjusted Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. As reported Net Sales: $643 million in 2010 and $653 million in 2009. As reported Operatin
Slide 4: Q4 2010 – Adjusted Operating Income to Reported Net Income
Q4 2010 – Adjusted Operating Income to Reported Net Income Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. V Operating Income – Adjusted $19 $26 ($7) Foreign Exchange Movements Cost
Slide 5: Q4 Sales and Adjusted Operating Income by Segment – 2010 vs. 2009
Q4 Sales and Adjusted Operating Income by Segment – 2010 vs. 2009 Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements.
Slide 6: Adjusted Operating Income Bridge – Q4 2010 versus Prior Year
Adjusted Operating Income Bridge – Q4 2010 versus Prior Year Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements.
Slide 7: Free Cash Flow – Fourth Quarter 2010 versus Prior Year
Free Cash Flow – Fourth Quarter 2010 versus Prior Year
Slide 8: Key Metrics – Full Year 2010 Adjusted
Key Metrics – Full Year 2010 Adjusted Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. As reported Net Sales: $2,766 million in 2010 and $2,780 million in 2009. As reported Operating
Slide 9: Full Year Sales and Adjusted Operating Income by Segment – 2010 vs. 2009
Full Year Sales and Adjusted Operating Income by Segment – 2010 vs. 2009 Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements.
Slide 10: Adjusted Operating Income Bridge – Full Year 2010 versus Prior Year
Adjusted Operating Income Bridge – Full Year 2010 versus Prior Year Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements.
Slide 11: Free Cash Flow – Full Year 2010 versus Prior Year
Free Cash Flow – Full Year 2010 versus Prior Year
Slide 12: Capital Structure as of December 31, 2010
Capital Structure as of December 31, 2010 CASH Balance ($M) US Cash $36 International Cash TOTAL Cash $316 DEBT Balance ($M) Interest Rate Maturity Revolver ($250M) $25 3.28% A/R Securitization ($100M) - 1.20% Term Loan A / B 3.28% / 5.00% 2015 / 2017 Industrial Development Bond / Other ~2.00% >2025
Slide 13: $150 Million Savings Program
$150 Million Savings Program $150M savings from manufacturing and SG&A, net of inflation. Will use procurement savings to mitigate strong inflationary pressure.
Slide 14: AWI - Return on Invested Capital (ROIC)
AWI - Return on Invested Capital (ROIC) Near term goal is to return at least our cost of capital by 2013, with domestic housing starts ~ 1 million units.
Slide 15: Key Metrics – Guidance 2011
Key Metrics – Guidance 2011 All figures in $ millions unless otherwise noted. Estimate Range Variance Net Sales 2,800 to 3,000 2,766 1% to 8% Operating Income to 35% to 62% EBITDA to 19% to 35% Earnings Per Share (3),(4) $2.04 to $2.53 $1.73 18% to 47% Free Cash Flow to (61%) to (33%) Figures exclud
Slide 16: 2011 Financial Outlook
2011 Financial Outlook Raw Material & Energy Inflation $35 - $45 million increase Manufacturing Productivity Gross Margin +100 to +200 bps vs. 2010 U.S. Pension Credit ~$25 million, down ~$25 million vs. 2010 60% manufacturing, 40% SG&A Earnings from WAVE $5 - $10 million vs. 2010 Cash Taxes/ETR ~$1
Slide 17: (Aymstrong
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Slide 18: Full Year 2010 – Adjusted Operating Income to Reported Net Income
Full Year 2010 – Adjusted Operating Income to Reported Net Income Financial Overview Appendix V Operating Income – Adjusted $188 $157 $31 Foreign Exchange Movements - Laminate Duty Refund - Cost Reduction Initiatives Asset Impairments Restructuring - Executive Transition - Gain on Settlement of Note
Slide 19: Normalized Operating Income to Free Cash Flow
Normalized Operating Income to Free Cash Flow Financial Overview Appendix All figures in $ millions unless otherwise noted. Estimate Range Adjusted Operating Income to D&A Adjusted EBITDA to Changes in Working Capital to Capex to Pension Credit Interest Expense Cash Taxes Other, including cash payme
Slide 20: Consolidated Results
Consolidated Results Financial Overview Appendix Fourth Quarter Reported Comparability Adjustments FX Adj Adjusted Reported Comparability Adjustments FX Adj Adjusted Net Sales - - Operating Income - EPS ($0.36) $0.48 ($0.01) $0.11 ($0.07) $0.30 $ - $0.23 Full Year 2010 Reported Comparability Adjustm
Slide 21: Segment Operating Income (Loss)
Segment Operating Income (Loss) Financial Overview Appendix Eliminates impact of foreign exchange movements and non-recurring items; see earnings press release and 10-K for additional detail. Fourth Quarter Reported Comparability Adjustments Adjusted Reported Comparability Adjustments Adjusted Resil
Slide 22: Cash Flow
Cash Flow Financial Overview Appendix Fourth Quarter Full Year ($-millions) Net Cash From Operations Plus / (Minus) Net Cash from Investing Add back / (subtract): Restricted Cash - - Divestitures - Equals Free Cash Flow
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