Armstrong World Industries Inc · NYSE:AWI

Armstrong World Industries — Q3 2016 Earnings Presentation

15 slides from Armstrong World Industries's earnings presentation, Oct 31, 2016

  1. Slide 1: Earnings Call Presentation 3rd Quarter 2016

    October 31, 2016 Earnings Call Presentation 3rd Quarter 2016

  2. Slide 2: Safe Harbor Statement

    Safe contain “anticipate,” with to statements. sections forward-looking differences website affirmed events Harbor anyforward-looking at of guidance. discussion and www.armstrongceilings.com. our A between Statement “estimate,” depend more reports statements detailed of these onon future 2 circumsta

  3. Slide 3: Basis of Presentation

    Basis the currency •remove are presentation Comparable Yes Taxes presented adjustments Yes offor the EBITDA Presentation translation normalized impact reflect Other onprovide aYes continuing Dollars of the onExplanation discrete Yes Net allocation the meaningful All Adjustments P&L. Income operation

  4. Slide 4: Consolidated Company Key Metrics - Third Quarter 2016

    Consolidated 28.5% —0% $71 million (2) 29.1% (2%) inCompany (60) 2016 (1) bps (2%) andEarnings Key $59 SalesMetrics—Third million EBITDA Per Share in 2015 (4)(3) (2) (3) Quarter $0.76 (4%) As reported $0.59 %2016 (6) 28.4% 4(6%) EPS: 2016 Americas Net $0.99 2015Debt Variance in EMEA 2016 731 764 and

  5. Slide 5: EBITDA Bridge – Third Quarter 2016 vs. PY

    EBITDA Bridge – Third Quarter 2016 vs. PY 5 $110 $4 $2 $1 $100 $97 $97 ($3) ($3) ($1) $90 Environmental Reserves: ($2) $80 $70 $60 $50 Q3 2015 Price/Mix Volume Input Costs Mfg Cost SG&A WAVE Q3 2016

  6. Slide 6: Americas Third Quarter Results

    Americaspredominantly continued EBITDA softness Commercial $87M Third improvement sales Acceleration Quarter up 5%in in Results VPY the average of retail asAUV 6AUV Net unit channel achievement Sales accelerates valueManufacturing Key (“AUV”). Highlights as products Growth &$226 1atDriven initiative

  7. Slide 7: EMEA Third Quarter Results

    EMEA partially (1) 2016Third offset Q3 Adjusted Quarter by the Results Middle EBITDA East 7 Net $9 and Margins Sales continental Key improved Highlights Europe. 110$79 bps Q3Up driven 2016 $78EMEA by • Excluding favorable Q3 2015the inputs, 2015 unfavorable cost Q3 Adjusted control impact and EBITDA

  8. Slide 8: Pacific Rim Third Quarter Results

    Pacific 1Q3 Driven 2015Rim Pacific by Third priorRim cost Quarter 2015 reduction Results Q3 Adjusted actions 8 Net 2016 EBITDA SalesQ3 Down Adjusted $2MKey AUVHighlights EBITDA 1 Like for $4M $35like $35 Margins pricing 1.7%improved •was Excluding positive 590the Volume bpsunfavorable driven (1) by

  9. Slide 9: Consolidated Company Key Metrics – September YTD 2016

    Consolidated Sales Change reported 26.3% (5) Operating (3%) 25.1% Company (1%) Income: 130(4) Key bps(5%) $144 Earnings Metrics (10) million (10%) –Per September in Share EBITDA 2016(3)and YTD $1.81 (15) $135 2016 $1.43 (15%)Sales million 9 2016 26.2% in2015 2015 (20) EBITDA Variance (20%) (3) AsCha

  10. Slide 10: EBITDA Bridge – September YTD 2016 vs. Prior Year

    EBITDA SG&A WAVE Bridge D&A/Other – September YTDYTD 2016 2016 vs. Prior Year 10 $270 $7 $2 $249 $250 $8 $1 $2 $232 $- ($3) $230 Environmental Reserves: ($2) $210 $190 $170 $150 YTD 2015 Price/Mix Volume Input Costs Mfg Cost

  11. Slide 11: 2016 Guidance

    2016share 4% 10% 27% per separation expenses adjustment. YoY YoY –Guidance 33% Growth and values Growth costs YoY Pro an11 forma and (1) as ?outstanding investments 2015 1% reported As-reported other standalone – Constant 3%extraordinary effective average Growth torevenue expand 2016 freeunit tax ?c

  12. Slide 12: Appendix

    12 Appendix

  13. Slide 13: Q3 2016 Adjusted EBITDA Reconciliation vs. PY

    Q3 2016 Adjusted $76 ($2)—$1 (Expense) ($4) $5 vs. $97 ($1)—$18 ($7) $4 PY—Adjusted $97 $1 ($22) $0 $1($18) $85 $15 $0 $1 $87 —Foreign ($1) EBITDA —($2) — ($4) $9 Exchange —$3to $8 —Reported Non-cash $1 —EBT—As $4Movements $2Net $2 Impact ($1) Income Reported $1—$1—($1) of $0U.S. ($1) 13$64 CONSOLID

  14. Slide 14: YTD 2016 Adjusted EBITDA Reconciliation vs. PY

    YTD $16 Adjusted $173 Initiatives Income expense2016 –($45) $249 As $198 $3—$3 vs.Reported ($52) PY—Adjusted $232 $189 —$7 $17 $9 —$144 — ($5) — $238 — $3—$3 $135 ($1) — EBITDA $221 —($4) $9— $17 $189 $0 -Corp —Net to$8 ($6) Reported $225 $10 Cost Income—As $6($2) ($36) ($4) Adjustment—$11 Net $7($9

  15. Slide 15: Consolidated Adjusted Results Third Quarter 2016

    Consolidated (2) Adjusted 10-Q $10.7M 334 forOperating for additional Reported charges Results 71Adjustments detail to515 settle 1 Third 77 on59 existing comparability Quarter 17—76 Adjusted interest 2016 Income Net adjustments. Comparability(1) rate Sales EPS(3) SWAPS 937—9 $0.99 See due 946 slides

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