Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q2 2018 Earnings Presentation
19 slides from Armstrong World Industries's earnings presentation, Jul 31, 2018
Slide 1: Earnings Call Presentation 2nd Quarter 2018
Earnings Call Presentation 2nd Quarter 2018 July 31, 2018 Exhibit 99.2
Slide 2: Safe Harbor Statement
Our disclosures in this presentation, including without limitation, those relating to future financial results market conditions and 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 dollar figures throughout the presentation are in $ millions (except earnings per share) unless otherwise noted. Figures may not add due to rounding. When reporting our financial results within this presentation, we make several adjustments. Management uses the non-GAAP measures in managing the
Slide 4: Consolidated Company Key Metrics - Second Quarter 2018
Consolidated Company Key Metrics - Second Quarter 2018 (1) As reported EPS: $0.90 in 2018 and $0.81 in 2017 2018 2017 Variance Net Sales $248.6 $225.6 0.10195035460992918 Adj. EBITDA $95.1 64 $84.741 0.12224307006053725 % of Sales 0.38254223652453739 0.37562499999999999 70 Adj. Earnings Per Share (1
Slide 5: EBITDA Bridge – Second Quarter 2018 vs. PY
Adjusted EBITDA Bridge – Second Quarter 2018 vs. PY $8 $2 ($4) ($3) $1 $5 Adjusted EBITDA up 12% $2 (1) (1) Other includes discontinued operation costs recognized in the Americas and international cost allocation adjustments.
Slide 6: Free Cash Flow Bridge – Second Quarter 2018 vs. PY
Adjusted Free Cash Flow Bridge – Second Quarter 2018 vs. PY $0 “Other” driven mainly by $12M increase in income taxes payable $0 $18 $4 $4 $13
Slide 7: Mineral Fiber Second Quarter Results
Mineral fiber sales grew 9% boosted by positive volume, price and mix EBITDA up 13% for the quarter as higher volume and AUV gains and contributions from WAVE were partially offset by higher SG&A and inflation Mineral Fiber Second Quarter Results Strong volume and AUV gains partially offset by highe
Slide 8: Architectural Specialties Second Quarter Results
Sales up 18% driven by organic sales growth and increased market penetration Profitability up 5% as volume gains fall through Architectural Specialties Second Quarter Results Continued strong sales gains in the quarter Key Highlights 2017 Q2 Adjusted EBITDA $9 Sales 2 Strong organic growth Period Ex
Slide 9: Consolidated Company Key Metrics – 1st Half 2018
Consolidated Company Key Metrics – 1st Half 2018 As reported EPS: $1.66 in 2018 and $1.46 in 2017 2018 2017 Variance Net Sales $475.9 $445.4 6.8477772788504643E-2 Adj. EBITDA $173.93029200000001 64 $159.965 8.7302172350201657E-2 % of Sales 0.36547655389787775 0.35914907947911989 60 Adj. Earnings Per
Slide 10: EBITDA Bridge – 1st Half 2018 vs. PY
Adjusted EBITDA Bridge – 1st Half 2018 vs. PY $6 $7 ($8) $0 $3 $3 Adjusted EBITDA up 9% $4 (1) (1) Other includes discontinued operation costs recognized in the Americas and international cost allocation adjustments.
Slide 11: Free Cash Flow Bridge – 1st Half 2018 vs. PY
Adjusted Free Cash Flow Bridge – 1st Half 2018 vs. PY $6 Adjusted Free Cash Flow includes the receipt of cash (net of $26) from insurance settlements reached in the second half of 2017 $43 $19 $0 $1 $9
Slide 12: 2018 Guidance
2018 Guidance $3.60 – $3.82 19% – 27% YoY Growth $3.02 Adjusted EBITDA Adjusted EPS(1) Adjusted Free Cash Flow(2) Revenue $894 $319(3) $935– $955 5% – 7% YoY Growth $345 – $360 >10% YoY Growth $175 – $190 20% – 30% YoY Growth $147 As reported expected earnings per share in 2018 of $3.94 - $4.13. 201
Slide 13: Appendix
Appendix = @mstrong WORLD INDUSTRIES
Slide 14: EBITDA Reconciliation
Adjusted EBITDA Reconciliation CONSOLIDATED For the Three MonthsEnded June 30, For the Six MonthsEnded June 30, qtr YTD 2018 2017 V 2018 2017 V Earnings from continuing operations, Reported 47.59999999999998 43.699999999999996 3.8999999999999844 88.799999999999983 79.2 9.5999999999999801 rounding Ad
Slide 15: Diluted Earnings Per Share Reconciliation
Adjusted Diluted Earnings Per Share Reconciliation Based on ~52 million diluted shares outstanding for the three months ended March 31, 2018 and ~54 million diluted shares outstanding for the three months ended March 31, 2017. CONSOLIDATED For the Three MonthsEnded Jun 30, For the Six MonthsEnded Ju
Slide 16: Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Adjusted free cash flow is defined as cash from operations and dividends received from the WAVE joint venture, less expenditures for property and equipment, and is adjusted to remove the impact of cash used or proceeds received for acquisitions and divestitures
Slide 17: Segment Reported Operating Income (Loss) to Adjusted EBITDA
Segment Reported Operating Income (Loss) to Adjusted EBITDA Q2 2018 vs. PY 1H 2018 vs. PY MINERAL FIBER ARCHITECTURAL SPECIALTIES UNALLOCATED CORPORATE rounding factor 2016 V 2018 2017 V 2018 2017 V 2018 2017 V Operating Income (Loss) – As Reported 59.5 64.099999999999994 -4.5999999999999943 8.6 8.1
Slide 18: Net Sales & EBITDA – Guidance Reconciliation
Net Sales & EBITDA – Guidance Reconciliation Net Sales Adjusted EBITDA For the Year Ending December 31, 2018 Low to High Reported Net Sales $935 to $955 For the Year Ending December 31, 2018 Low to High Net income $205 to $215 Add: Interest expense 35 35 Add: Income tax expense 65 70 Operating incom
Slide 19: EPS & Free Cash Flow – Guidance Reconciliation
Adjusted EPS & Free Cash Flow – Guidance Reconciliation Adjusted Diluted Earnings Per Share Adjusted Free Cash Flow Adjusted EPS guidance for 2018 is calculated based on an adjusted effective tax rate of 25% and based on ~52 million of diluted shares outstanding. For the Year Ending December 31, 201
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