Armstrong World Industries Reports Second-Quarter 2024 Results
Armstrong World Industries (NYSE:AWI) reported strong Q2 2024 results, with net sales up 12.2% to $365.1 million and operating income up 9.2% to $95 million. The growth was driven by solid Mineral Fiber average unit value (AUV) improvements and acquisitions in the Architectural Specialties segment. Adjusted EBITDA increased 12.5% to $125 million, while adjusted diluted EPS grew 17.4% to $1.62.
The Mineral Fiber segment saw 6.9% sales growth to $250.2 million, while Architectural Specialties sales jumped 25.7% to $114.9 million. Based on the strong performance, AWI raised its full-year 2024 guidance, now expecting 9-11% net sales growth and 10-13% adjusted EBITDA growth.
Armstrong World Industries (NYSE:AWI) ha riportato risultati solidi per il secondo trimestre del 2024, con vendite nette in aumento del 12,2% a 365,1 milioni di dollari e reddito operativo in crescita del 9,2% a 95 milioni di dollari. Questa crescita è stata sostenuta dai miglioramenti del valore medio unitario (AUV) delle Fibre Minerali e da acquisizioni nel segmento delle Specialità Architettoniche. L'EBITDA rettificato è aumentato del 12,5% a 125 milioni di dollari, mentre l'utile per azione diluito rettificato è cresciuto del 17,4% a 1,62 dollari.
Il segmento delle Fibre Minerali ha registrato una crescita delle vendite del 6,9% a 250,2 milioni di dollari, mentre le vendite delle Specialità Architettoniche sono aumentate del 25,7% a 114,9 milioni di dollari. Sulla base delle forti performance, AWI ha alzato le previsioni per l'intero anno 2024, ora aspettandosi una crescita delle vendite nette tra il 9 e l'11% e una crescita dell'EBITDA rettificato tra il 10 e il 13%.
Armstrong World Industries (NYSE:AWI) reportó resultados sólidos para el segundo trimestre de 2024, con ventas netas que aumentaron un 12,2% a 365,1 millones de dólares y ingresos operativos que crecieron un 9,2% a 95 millones de dólares. Este crecimiento fue impulsado por importantes mejoras en el valor unitario medio (AUV) de las Fibras Minerales y adquisiciones en el segmento de Especialidades Arquitectónicas. El EBITDA ajustado aumentó un 12,5% a 125 millones de dólares, mientras que el EPS diluido ajustado creció un 17,4% a 1,62 dólares.
El segmento de Fibras Minerales experimentó un crecimiento de ventas del 6,9% a 250,2 millones de dólares, mientras que las ventas de Especialidades Arquitectónicas saltaron un 25,7% a 114,9 millones de dólares. Basándose en el sólido rendimiento, AWI elevó su guía para el año completo 2024, ahora esperando un crecimiento de ventas netas del 9 al 11% y un crecimiento del EBITDA ajustado del 10 al 13%.
암스트롱 월드 인더스트리(뉴욕증권거래소:AWI)는 2024년도 2분기 실적을 발표했으며, 순매출이 12.2% 증가하여 3억 6,510만 달러에 달하고 영업이익이 9.2% 증가하여 9,500만 달러에 이르렀습니다. 이러한 성장은 안정적인 미네랄 섬유의 평균 단위 가치(AUV) 향상과 건축 전문 분야에서의 인수합병에 의해 촉진되었습니다. 조정된 EBITDA는 12.5% 증가하여 1억 2,500만 달러에 도달했으며, 조정된 희석 EPS는 17.4% 증가하여 1.62달러로 성장했습니다.
미네랄 섬유 부문은 6.9%의 매출 성장률을 기록하여 2억 5,020만 달러에 이르렀으며, 건축 전문 분야의 매출은 25.7% 증가하여 1억 1,490만 달러에 도달했습니다. 이러한 강력한 성과를 바탕으로 AWI는 2024년 전체 연도 예상치를 상향 조정하였으며, 이제는 9-11%의 순매출 성장과 10-13%의 조정 EBITDA 성장을 예상하고 있습니다.
Armstrong World Industries (NYSE:AWI) a annoncé des résultats solides pour le deuxième trimestre 2024, avec des ventes nettes en hausse de 12,2% à 365,1 millions de dollars et un revenu opérationnel en hausse de 9,2% à 95 millions de dollars. Cette croissance a été soutenue par de solides améliorations de la valeur moyenne unitaire (AUV) des fibres minérales et par des acquisitions dans le secteur des spécialités architecturales. Le résultat d'exploitation ajusté a augmenté de 12,5% à 125 millions de dollars, tandis que le bénéfice par action dilué ajusté a augmenté de 17,4% à 1,62 dollar.
Le segment des fibres minérales a connu une croissance des ventes de 6,9% à 250,2 millions de dollars, tandis que les ventes des spécialités architecturales ont bondi de 25,7% à 114,9 millions de dollars. Sur la base de cette solide performance, AWI a relevé ses prévisions pour l'année entière 2024, s'attendant désormais à une croissance des ventes nettes de 9 à 11% et à une croissance de l'EBITDA ajusté de 10 à 13%.
Armstrong World Industries (NYSE:AWI) hat starke Ergebnisse für das zweite Quartal 2024 veröffentlicht, mit einem Anstieg des Nettoumsatzes um 12,2% auf 365,1 Millionen US-Dollar und einem Anstieg des Betriebsgewinns um 9,2% auf 95 Millionen US-Dollar. Dieses Wachstum wurde durch solide Verbesserungen des durchschnittlichen Stückwerts (AUV) der Mineralfasern und durch Akquisitionen im Bereich Architekturspezialitäten vorangetrieben. Das bereinigte EBITDA stieg um 12,5% auf 125 Millionen US-Dollar, während der bereinigte verwässerte Gewinn pro Aktie um 17,4% auf 1,62 US-Dollar wuchs.
Der Mineralfaserbereich verzeichnete ein Umsatzwachstum von 6,9% auf 250,2 Millionen US-Dollar, während die Umsätze im Bereich Architekturspezialitäten um 25,7% auf 114,9 Millionen US-Dollar sprangen. Basierend auf der starken Leistung hat AWI die Prognose für das Gesamtjahr 2024 angehoben und erwartet nun ein Umsatzwachstum von 9-11% und ein bereinigtes EBITDA-Wachstum von 10-13%.
- Net sales increased 12.2% year-over-year to $365.1 million
- Operating income grew 9.2% to $95 million
- Adjusted EBITDA rose 12.5% to $125 million
- Adjusted diluted EPS increased 17.4% to $1.62
- Mineral Fiber segment sales grew 6.9% to $250.2 million
- Architectural Specialties segment sales jumped 25.7% to $114.9 million
- Company raised full-year 2024 guidance
- Operating income margin decreased 70 basis points to 26.0%
- Architectural Specialties operating income margin declined 90 basis points to 12.4%
Insights
Armstrong World Industries' Q2 2024 results demonstrate strong financial performance and positive momentum. The company reported 12.2% year-over-year net sales growth to
Key highlights include:
- Mineral Fiber segment net sales up
6.9% with operating income increasing8.2% - Architectural Specialties segment net sales up
25.7% with operating income rising16.4% - Diluted EPS increased
11.9% to$1.50 - Adjusted diluted EPS up
17.4% to$1.62
The company's performance was bolstered by strategic acquisitions, including 3form and BOK Modern, which contributed significantly to the Architectural Specialties segment growth. The Mineral Fiber segment benefited from favorable AUV and higher sales volumes.
Armstrong has raised its full-year 2024 guidance, projecting net sales growth of
From an investor's perspective, Armstrong's ability to deliver consistent top-line growth with robust EBITDA margins is encouraging. The company's focus on operational excellence and market-driven innovation positions it well for continued success in the ceiling and wall solutions market.
Armstrong World Industries' Q2 results offer valuable insights into current market trends and the company's competitive positioning. The
Several factors contribute to Armstrong's strong performance:
- Market stabilization: The company notes that market demand is stabilizing, suggesting a potentially favorable environment for sustained growth.
- Balanced end-markets: Armstrong's exposure to diverse end-markets provides resilience against sector-specific fluctuations.
- Pricing power: The ability to implement favorable pricing, as evidenced by the AUV improvement, demonstrates the company's strong market position and brand value.
- Strategic acquisitions: The integration of 3form and BOK Modern has significantly boosted the Architectural Specialties segment, expanding Armstrong's product portfolio and market reach.
The raised full-year guidance implies management's confidence in the company's ability to navigate potential market challenges. However, investors should monitor factors such as raw material costs, labor market dynamics and overall economic conditions that could impact the construction industry.
Armstrong's focus on innovation and operational excellence positions it well to capitalize on emerging trends in sustainable building materials and customized architectural solutions. The company's ability to maintain strong EBITDA margins while pursuing growth initiatives is particularly noteworthy in the current economic environment.
-
Net sales up
12% on solid Mineral Fiber AUV growth and Architectural Specialties' acquisitions -
Operating income increased
9% and diluted net earnings per share increased12% -
Adjusted EBITDA up
13% and adjusted diluted net earnings per share up17% - Raising full-year 2024 guidance
(All comparisons versus the prior year period unless otherwise stated)
“With double digit net sales growth and record earnings, our second-quarter results further demonstrate the resilience of our business model and the strength of our growth initiatives,” said Vic Grizzle, President and CEO of Armstrong World Industries. “As market demand stabilizes, we also are continuing to see the benefits from our balanced set of end-markets and the consistent operational execution of our teams. With our team’s relentless focus on Mineral Fiber Average Unit Value improvement, market-driven innovation, operational excellence and Architectural Specialties expansion, we expect to continue delivering consistent top-line growth with robust EBITDA margins.”
Second-Quarter Results
(Dollar amounts in millions except per-share data) |
|
For the Three Months Ended June 30, |
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
|
Change |
||
Net sales |
|
$ |
365.1 |
|
|
$ |
325.4 |
|
|
|
Operating income |
|
$ |
95.0 |
|
|
$ |
87.0 |
|
|
|
Operating income margin (Operating income as a % of net sales) |
|
|
26.0 |
% |
|
|
26.7 |
% |
|
(70)bps |
Net earnings |
|
$ |
65.9 |
|
|
$ |
60.2 |
|
|
|
Diluted net earnings per share |
|
$ |
1.50 |
|
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
||
Additional Non-GAAP* Measures |
|
|
|
|
|
|
|
|
||
Adjusted EBITDA |
|
$ |
125 |
|
|
$ |
111 |
|
|
|
Adjusted EBITDA margin (Adjusted EBITDA as a % of net sales) |
|
|
34.3 |
% |
|
|
34.2 |
% |
|
10bps |
Adjusted net earnings |
|
$ |
71 |
|
|
$ |
62 |
|
|
|
Adjusted diluted net earnings per share |
|
$ |
1.62 |
|
|
$ |
1.38 |
|
|
|
* The Company uses non-GAAP adjusted measures in managing the business and believes the adjustments provide meaningful comparisons of operating performance between periods and are useful alternative measures of performance. Reconciliations of the most comparable generally accepted accounting principles in |
Second-quarter 2024 consolidated net sales increased
Consolidated operating income increased
Second-Quarter Segment Results
Mineral Fiber
(Dollar amounts in millions) |
|
For the Three Months Ended June 30, |
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
|
Change |
||
Net sales |
|
$ |
250.2 |
|
|
$ |
234.0 |
|
|
|
Operating income |
|
$ |
81.7 |
|
|
$ |
75.5 |
|
|
|
Adjusted EBITDA* |
|
$ |
104 |
|
|
$ |
95 |
|
|
|
Operating income margin |
|
|
32.7 |
% |
|
|
32.3 |
% |
|
40bps |
Adjusted EBITDA margin* |
|
|
41.7 |
% |
|
|
40.4 |
% |
|
130bps |
Mineral Fiber net sales increased
Mineral Fiber operating income increased in the second quarter of 2024 primarily due to a
Architectural Specialties
(Dollar amounts in millions) |
|
For the Three Months Ended June 30, |
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
|
Change |
||
Net sales |
|
$ |
114.9 |
|
|
$ |
91.4 |
|
|
|
Operating income |
|
$ |
14.2 |
|
|
$ |
12.2 |
|
|
|
Adjusted EBITDA* |
|
$ |
21 |
|
|
$ |
17 |
|
|
|
Operating income margin |
|
|
12.4 |
% |
|
|
13.3 |
% |
|
(90)bps |
Adjusted EBITDA margin* |
|
|
18.4 |
% |
|
|
18.5 |
% |
|
(10)bps |
Second-quarter 2024 Architectural Specialties net sales increased
Architectural Specialties operating income increased in the second quarter of 2024 primarily due to a
Unallocated Corporate
Unallocated Corporate operating loss was
Cash Flow
Year to date cash flows from operating activities in 2024 decreased
Share Repurchase Program
During the second quarter of 2024, we repurchased 0.1 million shares of common stock for a total cost of
** In July 2016, our Board of Directors approved a share repurchase program authorizing us to repurchase up to |
Updating 2024 Outlook
“Given our solid second quarter performance and improved line of sight for the full year, we are increasing our guidance for all key metrics,” said Chris Calzaretta, AWI Senior Vice President and CFO. “We now expect operating conditions in the second half of the year to be similar to the first half. With this backdrop, we expect to expand Adjusted EBITDA margin at the total company level and we will continue our disciplined deployment of capital to create value for shareholders.”
|
|
|
For the Year Ended December 31, 2024 |
|||||||||||||
(Dollar amounts in millions except per-share data) |
2023 Actual |
|
Current Guidance |
|
VPY Growth % |
|||||||||||
Net sales |
$ |
1,295 |
|
$ |
1,415 |
|
to |
$ |
1,440 |
|
|
to |
|
|||
Adjusted EBITDA* |
$ |
430 |
|
$ |
474 |
|
to |
$ |
486 |
|
|
to |
|
|||
Adjusted diluted net earnings per share* |
$ |
5.32 |
|
$ |
6.00 |
|
to |
$ |
6.15 |
|
|
to |
|
|||
Adjusted free cash flow* |
$ |
263 |
|
$ |
288 |
|
to |
$ |
300 |
|
|
to |
|
Earnings Webcast
Management will host a live webcast conference call at 10:00 a.m. ET today, to discuss second-quarter 2024 results. This event will be available on the Company's website. The call and accompanying slide presentation can be found on the investor relations section of the Company's website at www.armstrongworldindustries.com. The replay of this event will be available on the website for up to one year after the date of the call.
Uncertainties Affecting Forward-Looking Statements
Disclosures in this release 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 initiatives, the performance of our WAVE joint venture, market and broader economic conditions and guidance. Those statements provide our future expectations or forecasts and can be identified by our use of words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “outlook,” “target,” “predict,” “may,” “will,” “would,” “could,” “should,” “seek,” and other words or phrases of similar meaning in connection with any discussion of future operating or financial performance. This includes annual guidance. Forward-looking statements, by their nature, address matters that are uncertain and involve risks because they relate to events and depend on circumstances that may or may not occur in the future. As a result, our actual results may differ materially from our expected results and from those expressed in our forward-looking statements. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those projected, anticipated or implied is included in the “Risk Factors” and “Management’s Discussion and Analysis” sections of our reports on Form 10-K and Form 10-Q filed with the
About Armstrong and Additional Information
Armstrong World Industries, Inc. is a leader in the design, innovation and manufacture of innovative ceiling and wall system solutions in the
More details on the Company’s performance can be found in its report on Form 10-Q for the quarter ended June 30, 2024, that the Company expects to file with the SEC today.
Reported Financial Results
(Amounts in millions, except per share data)
SELECTED FINANCIAL RESULTS
Armstrong World Industries, Inc. and Subsidiaries
(Unaudited)
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
365.1 |
|
|
$ |
325.4 |
|
|
$ |
691.4 |
|
|
$ |
635.6 |
|
Cost of goods sold |
|
|
215.8 |
|
|
|
201.4 |
|
|
|
417.8 |
|
|
|
399.5 |
|
Gross profit |
|
|
149.3 |
|
|
|
124.0 |
|
|
|
273.6 |
|
|
|
236.1 |
|
Selling, general and administrative expenses |
|
|
79.9 |
|
|
|
61.9 |
|
|
|
145.6 |
|
|
|
124.6 |
|
Loss related to change in fair value of contingent consideration |
|
|
0.7 |
|
|
|
- |
|
|
|
0.4 |
|
|
|
- |
|
Equity (earnings) from unconsolidated affiliates, net |
|
|
(26.3 |
) |
|
|
(24.9 |
) |
|
|
(53.5 |
) |
|
|
(45.7 |
) |
Operating income |
|
|
95.0 |
|
|
|
87.0 |
|
|
|
181.1 |
|
|
|
157.2 |
|
Interest expense |
|
|
11.1 |
|
|
|
9.2 |
|
|
|
20.1 |
|
|
|
17.9 |
|
Other non-operating (income), net |
|
|
(3.2 |
) |
|
|
(2.2 |
) |
|
|
(6.3 |
) |
|
|
(4.6 |
) |
Earnings before income taxes |
|
|
87.1 |
|
|
|
80.0 |
|
|
|
167.3 |
|
|
|
143.9 |
|
Income tax expense |
|
|
21.2 |
|
|
|
19.8 |
|
|
|
41.5 |
|
|
|
36.4 |
|
Net earnings |
|
$ |
65.9 |
|
|
|
60.2 |
|
|
$ |
125.8 |
|
|
$ |
107.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted net earnings per share of common stock |
|
$ |
1.50 |
|
|
$ |
1.34 |
|
|
$ |
2.86 |
|
|
$ |
2.38 |
|
Average number of diluted common shares outstanding |
|
|
44.0 |
|
|
|
45.0 |
|
|
|
44.0 |
|
|
|
45.2 |
|
SEGMENT RESULTS
Armstrong World Industries, Inc. and Subsidiaries
(Unaudited)
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mineral Fiber |
|
$ |
250.2 |
|
|
$ |
234.0 |
|
|
$ |
489.8 |
|
|
$ |
462.4 |
|
Architectural Specialties |
|
|
114.9 |
|
|
|
91.4 |
|
|
|
201.6 |
|
|
|
173.2 |
|
Total net sales |
|
$ |
365.1 |
|
|
$ |
325.4 |
|
|
$ |
691.4 |
|
|
$ |
635.6 |
|
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Segment operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mineral Fiber |
|
$ |
81.7 |
|
|
$ |
75.5 |
|
|
$ |
160.9 |
|
|
$ |
139.3 |
|
Architectural Specialties |
|
|
14.2 |
|
|
|
12.2 |
|
|
|
21.9 |
|
|
|
19.4 |
|
Unallocated Corporate |
|
|
(0.9 |
) |
|
|
(0.7 |
) |
|
|
(1.7 |
) |
|
|
(1.5 |
) |
Total consolidated operating income |
|
$ |
95.0 |
|
|
$ |
87.0 |
|
|
$ |
181.1 |
|
|
$ |
157.2 |
|
SELECTED BALANCE SHEET INFORMATION
Armstrong World Industries, Inc. and Subsidiaries
|
|
Unaudited |
|
|
|
||
|
|
June 30, 2024 |
|
|
December 31, 2023 |
||
Assets |
|
|
|
|
|
||
Current assets |
|
$ |
351.2 |
|
|
$ |
313.0 |
Property, plant and equipment, net |
|
|
599.3 |
|
|
|
566.4 |
Other non-current assets |
|
|
869.7 |
|
|
|
793.0 |
Total assets |
|
$ |
1,820.2 |
|
|
$ |
1,672.4 |
Liabilities and shareholders’ equity |
|
|
|
|
|
||
Current liabilities |
|
$ |
200.0 |
|
|
$ |
194.5 |
Non-current liabilities |
|
|
951.2 |
|
|
|
886.1 |
Shareholders' equity |
|
|
669.0 |
|
|
|
591.8 |
Total liabilities and shareholders’ equity |
|
$ |
1,820.2 |
|
|
$ |
1,672.4 |
SELECTED CASH FLOW INFORMATION
Armstrong World Industries, Inc. and Subsidiaries
(Unaudited)
|
|
For the Six Months Ended June 30, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Net earnings |
|
$ |
125.8 |
|
|
$ |
107.5 |
|
Other adjustments to reconcile net earnings to net cash provided by operating activities |
|
|
3.6 |
|
|
|
(0.8 |
) |
Changes in operating assets and liabilities, net |
|
|
(45.7 |
) |
|
|
(12.8 |
) |
Net cash provided by operating activities |
|
|
83.7 |
|
|
|
93.9 |
|
Net cash (used for) investing activities |
|
|
(81.4 |
) |
|
|
(6.0 |
) |
Net cash provided by (used for) financing activities |
|
|
1.1 |
|
|
|
(92.6 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(0.6 |
) |
|
|
0.3 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
2.8 |
|
|
|
(4.4 |
) |
Cash and cash equivalents at beginning of year |
|
|
70.8 |
|
|
|
106.0 |
|
Cash and cash equivalents at end of period |
|
$ |
73.6 |
|
|
$ |
101.6 |
|
Supplemental Reconciliations of GAAP to non-GAAP Results (unaudited)
(Amounts in millions, except per share data)
To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in
In the following charts, numbers may not sum due to rounding. Excluding adjusted diluted EPS, non-GAAP figures are rounded to the nearest million and corresponding percentages are rounded to the nearest percent based on unrounded figures.
Consolidated Results – Adjusted EBITDA
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
365 |
|
|
$ |
325 |
|
|
$ |
691 |
|
|
$ |
636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings |
|
$ |
66 |
|
|
$ |
60 |
|
|
$ |
126 |
|
|
$ |
108 |
|
Add: Income tax expense |
|
|
21 |
|
|
|
20 |
|
|
|
42 |
|
|
|
36 |
|
Earnings before income taxes |
|
$ |
87 |
|
|
$ |
80 |
|
|
$ |
167 |
|
|
$ |
144 |
|
Add: Interest/other income and expense, net |
|
|
8 |
|
|
|
7 |
|
|
|
14 |
|
|
|
13 |
|
Operating income |
|
$ |
95 |
|
|
$ |
87 |
|
|
$ |
181 |
|
|
$ |
157 |
|
Add: RIP expense (1) |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Add: Acquisition-related impacts (2) |
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
Add: Cost reduction initiatives |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
Add: WAVE pension settlement (3) |
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Add: Environmental expense |
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Adjusted operating income |
|
$ |
100 |
|
|
$ |
89 |
|
|
$ |
186 |
|
|
$ |
164 |
|
Add: Depreciation and amortization |
|
|
25 |
|
|
|
22 |
|
|
|
50 |
|
|
|
43 |
|
Adjusted EBITDA |
|
$ |
125 |
|
|
$ |
111 |
|
|
$ |
236 |
|
|
$ |
207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income margin |
|
|
26.0 |
% |
|
|
26.7 |
% |
|
|
26.2 |
% |
|
|
24.7 |
% |
Adjusted EBITDA margin |
|
|
34.3 |
% |
|
|
34.2 |
% |
|
|
34.1 |
% |
|
|
32.6 |
% |
(1) |
RIP expense represents only the plan service cost that is recorded within Operating income. For all periods presented, we were not required to and did not make cash contributions to our RIP. |
|
(2) |
Represents the impact of acquisition-related adjustments for the fair value of inventory, contingent third-party professional fees, changes in fair value of contingent consideration, deferred compensation and restricted stock expenses. |
|
(3) |
Represents the Company's |
Mineral Fiber
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
250 |
|
|
$ |
234 |
|
|
$ |
490 |
|
|
$ |
462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
$ |
82 |
|
|
$ |
76 |
|
|
$ |
161 |
|
|
$ |
139 |
|
Add: Acquisition-related impacts (1) |
|
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Add: Cost reduction initiatives |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
Add: WAVE pension settlement (2) |
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Add: Environmental expense |
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Adjusted operating income |
|
$ |
85 |
|
|
$ |
76 |
|
|
$ |
164 |
|
|
$ |
142 |
|
Add: Depreciation and amortization |
|
|
20 |
|
|
|
19 |
|
|
|
40 |
|
|
|
37 |
|
Adjusted EBITDA |
|
$ |
104 |
|
|
$ |
95 |
|
|
$ |
203 |
|
|
$ |
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income margin |
|
|
32.7 |
% |
|
|
32.3 |
% |
|
|
32.9 |
% |
|
|
30.1 |
% |
Adjusted EBITDA margin |
|
|
41.7 |
% |
|
|
40.4 |
% |
|
|
41.5 |
% |
|
|
38.6 |
% |
(1) |
Represents the impact of acquisition-related adjustments for changes in fair value of contingent consideration. |
|
(2) |
Represents the Company's |
Architectural Specialties
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
115 |
|
|
$ |
91 |
|
|
$ |
202 |
|
|
$ |
173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
$ |
14 |
|
|
$ |
12 |
|
|
$ |
22 |
|
|
$ |
19 |
|
Add: Acquisition-related impacts (1) |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
Adjusted operating income |
|
$ |
15 |
|
|
$ |
14 |
|
|
$ |
23 |
|
|
$ |
22 |
|
Add: Depreciation and amortization |
|
|
6 |
|
|
|
3 |
|
|
|
10 |
|
|
|
6 |
|
Adjusted EBITDA |
|
$ |
21 |
|
|
$ |
17 |
|
|
$ |
33 |
|
|
$ |
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income margin |
|
|
12.4 |
% |
|
|
13.3 |
% |
|
|
10.9 |
% |
|
|
11.2 |
% |
Adjusted EBITDA margin |
|
|
18.4 |
% |
|
|
18.5 |
% |
|
|
16.5 |
% |
|
|
16.5 |
% |
(1) |
Represents the impact of acquisition-related adjustments for the fair value of inventory, contingent third-party professional fees, changes in fair value of contingent consideration, deferred compensation and restricted stock expenses. |
Unallocated Corporate
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Operating (loss) |
|
$ |
(1 |
) |
|
$ |
(1 |
) |
|
$ |
(2 |
) |
|
$ |
(2 |
) |
Add: RIP expense (1) |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Adjusted operating (loss) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(1 |
) |
|
$ |
- |
|
Add: Depreciation and amortization |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
(1) |
RIP expense represents only the plan service cost that is recorded within Operating income. For all periods presented, we were not required to and did not make cash contributions to our RIP. |
Consolidated Results – Adjusted Free Cash Flow
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||
|
|
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 and investing activities |
|
$ |
(30 |
) |
|
$ |
63 |
|
|
$ |
2 |
|
|
$ |
88 |
|
Add: Cash paid for acquisitions, net of cash acquired and investment in unconsolidated affiliate |
|
|
94 |
|
|
|
10 |
|
|
|
99 |
|
|
|
10 |
|
Add: Arktura deferred compensation (1) |
|
|
- |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
Add: Contingent consideration in excess of acquisition-date fair value (1) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5 |
|
(Less): Proceeds from sale of facility (2) |
|
|
(2 |
) |
|
|
- |
|
|
|
(2 |
) |
|
|
- |
|
Adjusted Free Cash Flow |
|
$ |
62 |
|
|
$ |
73 |
|
|
$ |
105 |
|
|
$ |
103 |
|
(1) |
Deferred compensation and contingent consideration payments related to 2020 acquisitions and were recorded as components of net cash provided by operating activities. |
|
(2) |
Proceeds related to the sale of Architectural Specialties design center. |
Consolidated Results – Adjusted Diluted Earnings Per Share (EPS)
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||||||||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
||||||||||||||||
|
Total |
|
Per
|
|
Total |
|
Per
|
|
|
Total |
|
Per
|
|
Total |
|
Per
|
|
||||||||
Net earnings |
$ |
66 |
|
$ |
1.50 |
|
$ |
60 |
|
$ |
1.34 |
|
|
$ |
126 |
|
$ |
2.86 |
|
$ |
108 |
|
$ |
2.38 |
|
Add: Income tax expense |
|
21 |
|
|
|
|
20 |
|
|
|
|
|
42 |
|
|
|
|
36 |
|
|
|
||||
Earnings before income taxes |
$ |
87 |
|
|
|
$ |
80 |
|
|
|
|
$ |
167 |
|
|
|
$ |
144 |
|
|
|
||||
(Less): RIP (credit) (1) |
|
- |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
(1 |
) |
|
|
||||
Add: Acquisition-related impacts (2) |
|
2 |
|
|
|
|
1 |
|
|
|
|
|
2 |
|
|
|
|
3 |
|
|
|
||||
Add: Acquisition-related amortization (3) |
|
3 |
|
|
|
|
1 |
|
|
|
|
|
5 |
|
|
|
|
3 |
|
|
|
||||
Add: Cost reduction initiatives |
|
- |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
3 |
|
|
|
||||
Add: WAVE pension settlement (4) |
|
1 |
|
|
|
|
- |
|
|
|
|
|
1 |
|
|
|
|
- |
|
|
|
||||
Add: Environmental expense |
|
1 |
|
|
|
|
- |
|
|
|
|
|
1 |
|
|
|
|
- |
|
|
|
||||
Adjusted net earnings before income taxes |
$ |
94 |
|
|
|
$ |
83 |
|
|
|
|
$ |
176 |
|
|
|
$ |
151 |
|
|
|
||||
(Less): Adjusted income tax expense (5) |
|
(23 |
) |
|
|
|
(20 |
) |
|
|
|
|
(44 |
) |
|
|
|
(38 |
) |
|
|
||||
Adjusted net earnings |
$ |
71 |
|
$ |
1.62 |
|
$ |
62 |
|
$ |
1.38 |
|
|
$ |
132 |
|
$ |
3.00 |
|
$ |
113 |
|
$ |
2.50 |
|
Adjusted diluted EPS change versus prior year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted shares outstanding |
|
|
|
44.0 |
|
|
|
|
45.0 |
|
|
|
|
|
44.0 |
|
|
|
|
45.2 |
|
||||
Effective tax rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
RIP (credit) represents the entire actuarial net periodic pension (credit) recorded as a component of net earnings. For all periods presented, we were not required to and did not make cash contributions to our RIP. |
|
(2) |
Represents the impact of acquisition-related adjustments for the fair value of inventory, contingent third-party professional fees, changes in fair value of contingent consideration, deferred compensation and restricted stock expenses. |
|
(3) |
Represents acquisition-related intangible amortization, including customer relationships, developed technology, software, trademarks and brand names, non-compete agreements and other intangibles. |
|
(4) |
Represents the Company's |
|
(5) |
Adjusted income tax expense is calculated using the effective tax rate multiplied by the adjusted net earnings before income taxes. |
Adjusted EBITDA Guidance
|
|
For the Year Ending December 31, 2024 |
|
|||||
|
|
Low |
|
|
High |
|
||
Net earnings |
|
$ |
254 |
|
to |
$ |
257 |
|
Add: Income tax expense |
|
|
85 |
|
|
|
87 |
|
Earnings before income taxes |
|
$ |
339 |
|
to |
$ |
344 |
|
Add: Interest expense |
|
|
40 |
|
|
|
42 |
|
Add: Other non-operating (income), net |
|
|
(12 |
) |
|
|
(11 |
) |
Operating income |
|
$ |
367 |
|
to |
$ |
375 |
|
Add: RIP expense (1) |
|
|
2 |
|
|
|
2 |
|
Add: Acquisition-related impacts (2) |
|
|
2 |
|
|
|
2 |
|
Add: Environmental expense |
|
|
1 |
|
|
|
1 |
|
Add: WAVE pension settlement (3) |
|
|
1 |
|
|
|
1 |
|
Adjusted operating income |
|
$ |
374 |
|
to |
$ |
380 |
|
Add: Depreciation and amortization |
|
|
100 |
|
|
|
106 |
|
Adjusted EBITDA |
|
$ |
474 |
|
to |
$ |
486 |
|
(1) |
RIP expense represents only the plan service cost that is recorded within Operating income. We do not expect to make cash contributions to our RIP. |
|
(2) |
Represents the impact of acquisition-related adjustments for the fair value of inventory, contingent third-party professional fees and changes in fair value of contingent consideration. |
|
(3) |
Represents the Company's |
Adjusted Diluted Net Earnings Per Share Guidance
|
|
For the Year Ending December 31, 2024 |
|
|||||||||||||
|
|
Low |
|
|
Per Diluted
|
|
|
High |
|
|
Per Diluted
|
|
||||
Net earnings |
|
$ |
254 |
|
|
$ |
5.76 |
|
to |
$ |
257 |
|
|
$ |
5.87 |
|
Add: Income tax expense |
|
|
85 |
|
|
|
|
|
|
87 |
|
|
|
|
||
Earnings before income taxes |
|
$ |
339 |
|
|
|
|
to |
$ |
344 |
|
|
|
|
||
Add: RIP (credit) (2) |
|
|
(2 |
) |
|
|
|
|
|
(1 |
) |
|
|
|
||
Add: Acquisition-related amortization (3) |
|
|
11 |
|
|
|
|
|
|
12 |
|
|
|
|
||
Add: Acquisition-related impacts (4) |
|
|
2 |
|
|
|
|
|
|
2 |
|
|
|
|
||
Add: Environmental expense |
|
|
1 |
|
|
|
|
|
|
1 |
|
|
|
|
||
Add: WAVE pension settlement (5) |
|
|
1 |
|
|
|
|
|
|
1 |
|
|
|
|
||
Adjusted earnings before income taxes |
|
$ |
352 |
|
|
|
|
to |
$ |
358 |
|
|
|
|
||
(Less): Adjusted income tax expense (6) |
|
|
(88 |
) |
|
|
|
|
|
(89 |
) |
|
|
|
||
Adjusted net earnings |
|
$ |
264 |
|
|
$ |
6.00 |
|
to |
$ |
269 |
|
|
$ |
6.15 |
|
(1) |
Adjusted diluted EPS guidance for 2024 is calculated based on approximately 44 million of diluted shares outstanding. |
|
(2) |
RIP (credit) represents the entire actuarial net periodic pension (credit) recorded as a component of net earnings. We do not expect to make any cash contributions to our RIP. |
|
(3) |
Represents acquisition-related intangible amortization, including customer relationships, developed technology, software, trademarks and brand names, non-compete agreements and other intangibles. |
|
(4) |
Represents the impact of acquisition-related adjustments for the fair value of inventory, contingent third party professional fees and changes in fair value of contingent consideration. |
|
(5) |
Represents the Company's |
|
(6) |
Income tax expense is based on an adjusted effective tax rate of approximately |
Adjusted Free Cash Flow Guidance
|
|
For the Year Ending December 31, 2024 |
|
|||||
|
|
Low |
|
|
High |
|
||
Net cash provided by operating activities |
|
$ |
171 |
|
to |
$ |
183 |
|
Add: Return of investment from joint venture |
|
|
94 |
|
|
|
104 |
|
Add: Cash paid for acquisitions, net of cash acquired and investment in unconsolidated affiliate |
|
|
99 |
|
|
|
99 |
|
Add: Arktura deferred compensation (1) |
|
|
6 |
|
|
|
6 |
|
(Less): Proceeds from sale of facility (2) |
|
|
(2 |
) |
|
|
(2 |
) |
Adjusted net cash provided by operating activities |
|
$ |
368 |
|
to |
$ |
390 |
|
Less: Capital expenditures |
|
|
(80 |
) |
|
|
(90 |
) |
Adjusted Free Cash Flow |
|
$ |
288 |
|
to |
$ |
300 |
|
(1) |
Deferred compensation payments related to 2020 acquisition recorded as a component of net cash provided by operating activities. |
|
(2) |
Proceeds related to the sale of Architectural Specialties design center. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730120396/en/
Investors & Media: Theresa Womble, tlwomble@armstrongceilings.com or (717) 396-6354
Source: Armstrong World Industries, Inc.
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