Armstrong World Industries Reports Third-Quarter 2024 Results
Armstrong World Industries (NYSE:AWI) reported strong Q3 2024 results with record quarterly net sales of $387 million, up 11.3% year-over-year. Operating income increased 11.1% to $111.3 million, while diluted earnings per share rose 12.2% to $1.75. The growth was driven by higher volumes ($30 million) and favorable Average Unit Value ($9 million). The company's Mineral Fiber segment saw 3.3% sales growth, while Architectural Specialties segment sales jumped 31.8%. Based on strong performance, AWI raised its full-year 2024 guidance for adjusted EBITDA (12-14% growth), adjusted diluted EPS (16-17% growth), and adjusted free cash flow (10-14% growth).
Armstrong World Industries (NYSE:AWI) ha riportato risultati solidi per il terzo trimestre del 2024, con vendite nette trimestrali record di 387 milioni di dollari, in aumento dell'11,3% rispetto all'anno precedente. Il reddito operativo è aumentato dell'11,1% a 111,3 milioni di dollari, mentre l'utile per azione diluito è cresciuto del 12,2% a 1,75 dollari. La crescita è stata alimentata da volumi più elevati (30 milioni di dollari) e un valore medio unitario favorevole (9 milioni di dollari). Il segmento Fibra Minerale della società ha registrato una crescita delle vendite del 3,3%, mentre le vendite del segmento Specialità Architettoniche sono aumentate del 31,8%. Sulla base delle solidi performance, AWI ha alzato le stime per l'intero anno 2024 per l'EBITDA rettificato (crescita del 12-14%), l'utile per azione diluito rettificato (crescita del 16-17%) e il flusso di cassa libero rettificato (crescita del 10-14%).
Armstrong World Industries (NYSE:AWI) reportó resultados sólidos para el tercer trimestre de 2024, con unas ventas netas trimestrales récord de $387 millones, un aumento del 11.3% en comparación con el año anterior. El ingreso operativo aumentó un 11.1% a $111.3 millones, mientras que las ganancias por acción diluidas crecieron un 12.2% hasta $1.75. El crecimiento fue impulsado por volúmenes más altos ($30 millones) y un valor promedio unitario favorable ($9 millones). El segmento de Fibra Mineral de la empresa vio un crecimiento en las ventas del 3.3%, mientras que las ventas del segmento de Especialidades Arquitectónicas subieron un 31.8%. Basado en un rendimiento sólido, AWI elevó su guía para el año completo 2024 para EBITDA ajustado (crecimiento del 12-14%), EPS diluido ajustado (crecimiento del 16-17%) y flujo de caja libre ajustado (crecimiento del 10-14%).
암스트롱 월드 인더스트리즈 (NYSE:AWI)는 2024년 3분기 강력한 실적을 발표했으며, 분기 순매출이 3억 8,700만 달러로, 전년 대비 11.3% 증가했습니다. 운영 수익은 11.1% 증가하여 1억 1,130만 달러에 달했으며, 희석 주당 순이익은 12.2% 증가하여 1.75달러에 도달했습니다. 성장은 높은 물량(3천만 달러)과 유리한 평균 단위 가치(900만 달러)에 의해 주도되었습니다. 회사의 광물 섬유 부문은 매출이 3.3% 증가했으며, 건축 전문 부문 매출은 31.8% 급증했습니다. 강력한 성과를 바탕으로 AWI는 2024년 전체 연도 조정 EBITDA(12-14% 성장), 조정 희석 EPS(16-17% 성장), 조정 이후 자유 현금 흐름(10-14% 성장)에 대한 가이드를 상향 조정했습니다.
Armstrong World Industries (NYSE:AWI) a annoncé de solides résultats pour le troisième trimestre 2024, avec des ventes nettes trimestrielles record de 387 millions de dollars, en hausse de 11,3 % par rapport à l'année précédente. Le résultat d'exploitation a augmenté de 11,1 % pour atteindre 111,3 millions de dollars, tandis que le bénéfice par action dilué a augmenté de 12,2 % pour atteindre 1,75 dollar. Cette croissance a été soutenue par des volumes plus élevés (30 millions de dollars) et une valeur unitaire moyenne favorable (9 millions de dollars). Le segment des fibres minérales de l'entreprise a enregistré une croissance des ventes de 3,3 %, tandis que les ventes du segment des spécialités architecturales ont bondi de 31,8 %. Sur la base de cette performance solide, AWI a relevé ses prévisions pour l'année 2024 concernant l'EBITDA ajusté (croissance de 12 à 14 %), le BPA dilué ajusté (croissance de 16 à 17 %) et le flux de trésorerie libre ajusté (croissance de 10 à 14 %).
Armstrong World Industries (NYSE:AWI) berichtete über starke Ergebnisse im 3. Quartal 2024 mit einem Rekord-Nettoumsatz von 387 Millionen USD, was einem Anstieg von 11,3% im Vergleich zum Vorjahr entspricht. Das Betriebsergebnis stieg um 11,1% auf 111,3 Millionen USD, während der geringfügige Gewinn pro Aktie um 12,2% auf 1,75 USD zunahm. Das Wachstum wurde durch höhere Volumina (30 Millionen USD) und einen günstigen Durchschnittswert pro Einheit (9 Millionen USD) angetrieben. Der Mineralfaserbereich des Unternehmens verzeichnete ein Umsatzwachstum von 3,3%, während die Umsätze des Bereichs Architektonische Spezialitäten um 31,8% sprangen. Aufgrund der starken Leistung hob AWI die Prognose für das Gesamtjahr 2024 für bereinigtes EBITDA (Wachstum von 12-14%), bereinigten verwässerten Gewinn pro Aktie (Wachstum von 16-17%) und bereinigten freien Cashflow (Wachstum von 10-14%) an.
- Record quarterly net sales of $387 million, up 11.3%
- Operating income increased 11.1% to $111.3 million
- Diluted EPS grew 12.2% to $1.75
- Architectural Specialties segment sales up 31.8%
- Raised full-year 2024 guidance across multiple metrics
- Strong share repurchase program with $677 million remaining authorization
- Operating income margin slightly decreased by 10 basis points to 28.8%
- Architectural Specialties operating margin declined 100 basis points to 14.9%
Insights
Armstrong World Industries delivered a strong third quarter with record net sales of
Key highlights include operating income growth of
Management's decision to raise full-year guidance signals confidence in continued momentum, projecting
-
Record setting quarterly net sales of
, an increase of$387 million 11% -
Operating income increased
11% and diluted net earnings per share increased12% -
Adjusted EBITDA up
11% and adjusted diluted net earnings per share up13% - Raising full-year 2024 guidance for adjusted EBITDA, adjusted diluted net earnings per share and adjusted free cash flow
(Comparisons above are versus the prior-year period unless otherwise stated)
“With another quarter of record setting sales and strong earnings growth, we continue to demonstrate our ability to deliver growth despite muted market conditions through operational execution and our investments in strategic acquisitions, innovation and digital initiatives,” said Vic Grizzle, President and CEO of Armstrong World Industries. “As market demand continues to stabilize, we are well positioned to deliver full year double-digit top and bottom-line growth with industry-leading margin performance through strong Mineral Fiber Average Unit Value improvement, market-driven innovation, operational excellence and Architectural Specialties growth.”
Third-Quarter Results |
||||||||||
(Dollar amounts in millions except per-share data) |
|
For the Three Months Ended September 30, |
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
|
Change |
||
Net sales |
|
$ |
386.6 |
|
|
$ |
347.3 |
|
|
|
Operating income |
|
$ |
111.3 |
|
|
$ |
100.2 |
|
|
|
Operating income margin (Operating income as a % of net sales) |
|
|
28.8 |
% |
|
|
28.9 |
% |
|
(10)bps |
Net earnings |
|
$ |
76.9 |
|
|
$ |
69.5 |
|
|
|
Diluted net earnings per share |
|
$ |
1.75 |
|
|
$ |
1.56 |
|
|
|
|
|
|
|
|
|
|
|
|
||
Additional Non-GAAP* Measures |
|
|
|
|
|
|
|
|
||
Adjusted EBITDA |
|
$ |
139 |
|
|
$ |
125 |
|
|
|
Adjusted EBITDA margin (Adjusted EBITDA as a % of net sales) |
|
|
35.9 |
% |
|
|
36.0 |
% |
|
(10)bps |
Adjusted net earnings |
|
$ |
79 |
|
|
$ |
71 |
|
|
|
Adjusted diluted net earnings per share |
|
$ |
1.81 |
|
|
$ |
1.60 |
|
|
|
* 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 |
Third-quarter 2024 consolidated net sales increased
Consolidated operating income increased
Third-Quarter Segment Results |
||||||||||
Mineral Fiber |
||||||||||
(Dollar amounts in millions) |
|
For the Three Months Ended September 30, |
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
|
Change |
||
Net sales |
|
$ |
258.0 |
|
|
$ |
249.7 |
|
|
|
Operating income |
|
$ |
93.0 |
|
|
$ |
85.5 |
|
|
|
Adjusted EBITDA* |
|
$ |
113 |
|
|
$ |
105 |
|
|
|
Operating income margin |
|
|
36.0 |
% |
|
|
34.2 |
% |
|
180bps |
Adjusted EBITDA margin* |
|
|
43.9 |
% |
|
|
41.9 |
% |
|
200bps |
Mineral Fiber net sales increased
Mineral Fiber operating income increased in the third quarter of 2024 primarily due to a
Architectural Specialties |
||||||||||
(Dollar amounts in millions) |
|
For the Three Months Ended September 30, |
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
|
Change |
||
Net sales |
|
$ |
128.6 |
|
|
$ |
97.6 |
|
|
|
Operating income |
|
$ |
19.2 |
|
|
$ |
15.5 |
|
|
|
Adjusted EBITDA* |
|
$ |
26 |
|
|
$ |
20 |
|
|
|
Operating income margin |
|
|
14.9 |
% |
|
|
15.9 |
% |
|
(100)bps |
Adjusted EBITDA margin* |
|
|
20.1 |
% |
|
|
20.8 |
% |
|
(70)bps |
Architectural Specialties net sales increased
Architectural Specialties operating income increased in the third quarter of 2024 primarily due to an
Unallocated Corporate
Unallocated Corporate operating loss was
Cash Flow
Year-to-date cash flows from operating activities in 2024 increased
Share Repurchase Program
During the third 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
“We delivered strong profitability in the third quarter, highlighted by forty-four percent Mineral Fiber and twenty percent Architectural Specialties adjusted EBITDA margins. With our strong third quarter results and an improved profitability outlook for the remainder of the year, we are increasing our full-year 2024 guidance for adjusted EBITDA and adjusted diluted net earnings per share, as well as modestly increasing guidance for adjusted free cash flow, while tightening the range on our full-year sales outlook,” said Chris Calzaretta, AWI Senior Vice President and CFO. “We remain focused on expanding adjusted EBITDA margin at the total company level and expect to deliver a fourth consecutive year of net sales and earnings growth in 2024. With a strong balance sheet and our demonstrated ability to generate cash, we expect to continue to execute our capital allocation strategy to drive shareholder value.”
|
|
|
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 |
|
$ |
1,420 |
|
to |
$ |
1,435 |
|
|
to |
|
|
Adjusted EBITDA* |
$ |
430 |
|
$ |
482 |
|
to |
$ |
490 |
|
|
to |
|
|
Adjusted diluted net earnings per share* |
$ |
5.32 |
|
$ |
6.15 |
|
to |
$ |
6.25 |
|
|
to |
|
|
Adjusted free cash flow* |
$ |
263 |
|
$ |
290 |
|
to |
$ |
300 |
|
|
to |
|
Earnings Webcast
Management will host a live webcast conference call at 10:00 a.m. ET today, to discuss third-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, 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 solutions in the
More details on the Company’s performance can be found in its report on Form 10-Q for the quarter ended September 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
|
|
For the Nine Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net sales |
|
$ |
386.6 |
|
|
$ |
347.3 |
|
|
$ |
1,078.0 |
|
|
$ |
982.9 |
|
Cost of goods sold |
|
|
222.5 |
|
|
|
205.9 |
|
|
|
640.3 |
|
|
|
605.4 |
|
Gross profit |
|
|
164.1 |
|
|
|
141.4 |
|
|
|
437.7 |
|
|
|
377.5 |
|
Selling, general and administrative expenses |
|
|
77.6 |
|
|
|
64.6 |
|
|
|
223.1 |
|
|
|
189.2 |
|
Loss related to change in fair value of contingent consideration |
|
|
0.2 |
|
|
|
- |
|
|
|
0.6 |
|
|
|
- |
|
Impairment and gain on sales of fixed assets, net |
|
|
0.2 |
|
|
|
- |
|
|
|
0.3 |
|
|
|
- |
|
Equity (earnings) from unconsolidated affiliates, net |
|
|
(25.2 |
) |
|
|
(23.4 |
) |
|
|
(78.7 |
) |
|
|
(69.1 |
) |
Operating income |
|
|
111.3 |
|
|
|
100.2 |
|
|
|
292.4 |
|
|
|
257.4 |
|
Interest expense |
|
|
10.5 |
|
|
|
8.8 |
|
|
|
30.6 |
|
|
|
26.7 |
|
Other non-operating (income), net |
|
|
(3.0 |
) |
|
|
(2.3 |
) |
|
|
(9.3 |
) |
|
|
(6.9 |
) |
Earnings before income taxes |
|
|
103.8 |
|
|
|
93.7 |
|
|
|
271.1 |
|
|
|
237.6 |
|
Income tax expense |
|
|
26.9 |
|
|
|
24.2 |
|
|
|
68.4 |
|
|
|
60.6 |
|
Net earnings |
|
$ |
76.9 |
|
|
$ |
69.5 |
|
|
$ |
202.7 |
|
|
$ |
177.0 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted net earnings per share of common stock |
|
$ |
1.75 |
|
|
$ |
1.56 |
|
|
$ |
4.61 |
|
|
$ |
3.93 |
|
Average number of diluted common shares outstanding |
|
|
43.9 |
|
|
|
44.6 |
|
|
|
44.0 |
|
|
|
45.0 |
|
SEGMENT RESULTS |
||||||||||||||||
Armstrong World Industries, Inc. and Subsidiaries |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mineral Fiber |
|
$ |
258.0 |
|
|
$ |
249.7 |
|
|
$ |
747.8 |
|
|
$ |
712.1 |
|
Architectural Specialties |
|
|
128.6 |
|
|
|
97.6 |
|
|
|
330.2 |
|
|
|
270.8 |
|
Total net sales |
|
$ |
386.6 |
|
|
$ |
347.3 |
|
|
$ |
1,078.0 |
|
|
$ |
982.9 |
|
|
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Segment operating income (loss) |
|
|
|
|
|
|
|
|
||||||||
Mineral Fiber |
|
$ |
93.0 |
|
|
$ |
85.5 |
|
|
$ |
253.9 |
|
|
$ |
224.8 |
|
Architectural Specialties |
|
|
19.2 |
|
|
|
15.5 |
|
|
|
41.1 |
|
|
|
34.9 |
|
Unallocated Corporate |
|
|
(0.9 |
) |
|
|
(0.8 |
) |
|
|
(2.6 |
) |
|
|
(2.3 |
) |
Total consolidated operating income |
|
$ |
111.3 |
|
|
$ |
100.2 |
|
|
$ |
292.4 |
|
|
$ |
257.4 |
|
SELECTED BALANCE SHEET INFORMATION |
||||||||
Armstrong World Industries, Inc. and Subsidiaries |
||||||||
|
|
Unaudited |
|
|
|
|
||
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
||
Assets |
|
|
|
|
|
|
||
Current assets |
|
$ |
357.7 |
|
|
$ |
313.0 |
|
Property, plant and equipment, net |
|
|
577.4 |
|
|
|
566.4 |
|
Other non-current assets |
|
|
868.9 |
|
|
|
793.0 |
|
Total assets |
|
$ |
1,804.0 |
|
|
$ |
1,672.4 |
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
||
Current liabilities |
|
$ |
218.4 |
|
|
$ |
194.5 |
|
Non-current liabilities |
|
|
868.6 |
|
|
|
886.1 |
|
Shareholders' equity |
|
|
717.0 |
|
|
|
591.8 |
|
Total liabilities and shareholders’ equity |
|
$ |
1,804.0 |
|
|
$ |
1,672.4 |
|
SELECTED CASH FLOW INFORMATION |
||||||||
Armstrong World Industries, Inc. and Subsidiaries |
||||||||
(Unaudited) |
||||||||
|
|
|
||||||
|
|
For the Nine Months Ended September 30, |
||||||
|
|
2024 |
|
2023 |
||||
Net earnings |
|
$ |
202.7 |
|
|
$ |
177.0 |
|
Other adjustments to reconcile net earnings to net cash provided by operating activities |
|
|
12.8 |
|
|
|
5.4 |
|
Changes in operating assets and liabilities, net |
|
|
(35.3 |
) |
|
|
(6.0 |
) |
Net cash provided by operating activities |
|
|
180.2 |
|
|
|
176.4 |
|
Net cash (used for) investing activities |
|
|
(61.2 |
) |
|
|
(10.6 |
) |
Net cash (used for) financing activities |
|
|
(115.7 |
) |
|
|
(175.1 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(0.4 |
) |
|
|
(0.1 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
2.9 |
|
|
|
(9.4 |
) |
Cash and cash equivalents at beginning of year |
|
|
70.8 |
|
|
|
106.0 |
|
Cash and cash equivalents at end of period |
|
$ |
73.7 |
|
|
$ |
96.6 |
|
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
|
|
|
For the Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
387 |
|
|
$ |
347 |
|
|
$ |
1,078 |
|
|
$ |
983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings |
|
$ |
77 |
|
|
$ |
70 |
|
|
$ |
203 |
|
|
$ |
177 |
|
Add: Income tax expense |
|
|
27 |
|
|
|
24 |
|
|
|
68 |
|
|
|
61 |
|
Earnings before income taxes |
|
$ |
104 |
|
|
$ |
94 |
|
|
$ |
271 |
|
|
$ |
238 |
|
Add: Interest/other income and expense, net |
|
|
8 |
|
|
|
7 |
|
|
|
21 |
|
|
|
20 |
|
Operating income |
|
$ |
111 |
|
|
$ |
100 |
|
|
$ |
292 |
|
|
$ |
257 |
|
Add: RIP expense (1) |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
Add: Acquisition-related impacts (2) |
|
|
- |
|
|
|
1 |
|
|
|
2 |
|
|
|
4 |
|
Add: Cost reduction initiatives |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
Add: WAVE pension settlement (3) |
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
(Less): Gain on sales of fixed assets, net (4) |
|
|
(5 |
) |
|
|
- |
|
|
|
(5 |
) |
|
|
- |
|
Add: Impairment of fixed asset (5) |
|
|
5 |
|
|
|
- |
|
|
|
5 |
|
|
|
- |
|
Add: Environmental expense |
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
Adjusted operating income |
|
$ |
113 |
|
|
$ |
102 |
|
|
$ |
299 |
|
|
$ |
266 |
|
Add: Depreciation and amortization |
|
|
26 |
|
|
|
23 |
|
|
|
76 |
|
|
|
66 |
|
Adjusted EBITDA |
|
$ |
139 |
|
|
$ |
125 |
|
|
$ |
375 |
|
|
$ |
332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income margin |
|
|
28.8 |
% |
|
|
28.9 |
% |
|
|
27.1 |
% |
|
|
26.2 |
% |
Adjusted EBITDA margin |
|
|
35.9 |
% |
|
|
36.0 |
% |
|
|
34.8 |
% |
|
|
33.8 |
% |
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 |
|
4. |
During the third quarter of 2024 we sold our idled Mineral Fiber plant in |
|
5. |
During the third quarter of 2024 we recorded an impairment charge for an undeveloped parcel of land upon reclassification to assets held for sale. |
Mineral Fiber |
||||||||||||||||
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
258 |
|
|
$ |
250 |
|
|
$ |
748 |
|
|
$ |
712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
$ |
93 |
|
|
$ |
86 |
|
|
$ |
254 |
|
|
$ |
225 |
|
Add: Acquisition-related impacts (1) |
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Add: Cost reduction initiatives |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
Add: WAVE pension settlement (2) |
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
(Less): Gain on sales of fixed assets, net (3) |
|
|
(5 |
) |
|
|
- |
|
|
|
(5 |
) |
|
|
- |
|
Add: Impairment of fixed asset (4) |
|
|
5 |
|
|
|
- |
|
|
|
5 |
|
|
|
- |
|
Add: Environmental expense |
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
Adjusted operating income |
|
$ |
93 |
|
|
$ |
86 |
|
|
$ |
257 |
|
|
$ |
227 |
|
Add: Depreciation and amortization |
|
|
20 |
|
|
|
19 |
|
|
|
59 |
|
|
|
56 |
|
Adjusted EBITDA |
|
$ |
113 |
|
|
$ |
105 |
|
|
$ |
316 |
|
|
$ |
283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income margin |
|
|
36.0 |
% |
|
|
34.2 |
% |
|
|
34.0 |
% |
|
|
31.6 |
% |
Adjusted EBITDA margin |
|
|
43.9 |
% |
|
|
41.9 |
% |
|
|
42.3 |
% |
|
|
39.8 |
% |
1. |
Represents the impact of acquisition-related adjustments for changes in fair value of contingent consideration. |
|
2. |
Represents the Company's |
|
3. |
During the third quarter of 2024 we sold our idled Mineral Fiber plant in |
|
4. |
During the third quarter of 2024 we recorded an impairment charge for an undeveloped parcel of land upon reclassification to assets held for sale. |
Architectural Specialties |
||||||||||||||||
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
129 |
|
|
$ |
98 |
|
|
$ |
330 |
|
|
$ |
271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
$ |
19 |
|
|
$ |
16 |
|
|
$ |
41 |
|
|
$ |
35 |
|
Add: Acquisition-related impacts (1) |
|
|
- |
|
|
|
1 |
|
|
|
1 |
|
|
|
4 |
|
Adjusted operating income |
|
$ |
19 |
|
|
$ |
17 |
|
|
$ |
43 |
|
|
$ |
39 |
|
Add: Depreciation and amortization |
|
|
6 |
|
|
|
3 |
|
|
|
17 |
|
|
|
10 |
|
Adjusted EBITDA |
|
$ |
26 |
|
|
$ |
20 |
|
|
$ |
59 |
|
|
$ |
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income margin |
|
|
14.9 |
% |
|
|
15.9 |
% |
|
|
12.4 |
% |
|
|
12.9 |
% |
Adjusted EBITDA margin |
|
|
20.1 |
% |
|
|
20.8 |
% |
|
|
17.9 |
% |
|
|
18.0 |
% |
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
|
|
For the Nine Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Operating (loss) |
|
$ |
(1 |
) |
|
$ |
(1 |
) |
|
$ |
(3 |
) |
|
$ |
(2 |
) |
Add: RIP expense (1) |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
Adjusted operating (loss) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(1 |
) |
|
$ |
- |
|
Add: Depreciation and amortization |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(1 |
) |
|
$ |
- |
|
1. |
RIP expense represents only the plan service cost that is recorded within Operating loss. 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
|
|
For the Nine Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net cash provided by operating activities |
|
$ |
97 |
|
$ |
83 |
|
|
$ |
180 |
|
|
$ |
176 |
|
|
Net cash provided by (used for) investing activities |
|
|
20 |
|
|
(5 |
) |
|
|
(61 |
) |
|
|
(11 |
) |
|
Net cash provided by operating and investing activities |
|
$ |
117 |
|
$ |
78 |
|
|
$ |
119 |
|
|
$ |
166 |
|
|
Add: Cash paid for acquisitions, net of cash acquired and investment in unconsolidated affiliate |
|
|
- |
|
|
14 |
|
|
|
99 |
|
|
|
24 |
|
|
Add: Arktura deferred compensation (1) |
|
|
- |
|
|
- |
|
|
|
6 |
|
|
|
- |
|
|
Add: Contingent consideration in excess of acquisition-date fair value (1) |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
5 |
|
|
(Less): Proceeds from sales of facilities (2) |
|
|
(9 |
) |
|
- |
|
|
|
(12 |
) |
|
|
- |
|
|
Adjusted Free Cash Flow |
|
$ |
107 |
|
$ |
92 |
|
|
$ |
212 |
|
|
$ |
195 |
|
1. |
Deferred compensation and contingent consideration payments related to 2020 acquisitions were recorded as components of net cash provided by operating activities. |
|
2. |
Proceeds related to the sale of Architectural Specialties design center and the sale of our idled Mineral Fiber plant in |
Consolidated Results – Adjusted Diluted Earnings Per Share (EPS) |
|||||||||||||||||||||||||
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
||||||||||||||||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
||||||||||||||||
|
Total |
|
Per
|
|
Total |
|
Per
|
|
|
Total |
|
Per
|
|
Total |
|
Per
|
|
||||||||
Net earnings |
$ |
77 |
|
$ |
1.75 |
|
$ |
70 |
|
$ |
1.56 |
|
|
$ |
203 |
|
$ |
4.61 |
|
$ |
177 |
|
$ |
3.93 |
|
Add: Income tax expense |
|
27 |
|
|
|
|
24 |
|
|
|
|
|
68 |
|
|
|
|
61 |
|
|
|
||||
Earnings before income taxes |
$ |
104 |
|
|
|
$ |
94 |
|
|
|
|
$ |
271 |
|
|
|
$ |
238 |
|
|
|
||||
(Less): RIP (credit) (1) |
|
- |
|
|
|
|
- |
|
|
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
|
||||
Add: Acquisition-related impacts (2) |
|
- |
|
|
|
|
1 |
|
|
|
|
|
2 |
|
|
|
|
4 |
|
|
|
||||
Add: Acquisition-related amortization (3) |
|
3 |
|
|
|
|
2 |
|
|
|
|
|
8 |
|
|
|
|
4 |
|
|
|
||||
Add: Cost reduction initiatives |
|
- |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
3 |
|
|
|
||||
Add: WAVE pension settlement (4) |
|
- |
|
|
|
|
- |
|
|
|
|
|
1 |
|
|
|
|
- |
|
|
|
||||
(Less): Gain on sales of fixed assets, net (5) |
|
(5 |
) |
|
|
|
- |
|
|
|
|
|
(5 |
) |
|
|
|
- |
|
|
|
||||
Add: Impairment of fixed asset (6) |
|
5 |
|
|
|
|
- |
|
|
|
|
|
5 |
|
|
|
|
- |
|
|
|
||||
Add: Environmental expense |
|
- |
|
|
|
|
- |
|
|
|
|
|
2 |
|
|
|
|
- |
|
|
|
||||
Adjusted net earnings before income taxes |
$ |
107 |
|
|
|
$ |
96 |
|
|
|
|
$ |
283 |
|
|
|
$ |
248 |
|
|
|
||||
(Less): Adjusted income tax expense (7) |
|
(28 |
) |
|
|
|
(25 |
) |
|
|
|
|
(71 |
) |
|
|
|
(63 |
) |
|
|
||||
Adjusted net earnings |
$ |
79 |
|
$ |
1.81 |
|
$ |
71 |
|
$ |
1.60 |
|
|
$ |
211 |
|
$ |
4.81 |
|
$ |
184 |
|
$ |
4.10 |
|
Adjusted diluted EPS change versus prior year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted shares outstanding |
|
|
|
43.9 |
|
|
|
|
44.6 |
|
|
|
|
|
44.0 |
|
|
|
|
45.0 |
|
||||
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. |
During the third quarter of 2024 we sold our idled Mineral Fiber plant in |
|
6. |
During the third quarter of 2024 we recorded an impairment charge for an undeveloped parcel of land upon reclassification to assets held for sale. |
|
7. |
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 |
|
$ |
260 |
|
to |
$ |
262 |
|
Add: Income tax expense |
|
|
83 |
|
|
|
84 |
|
Earnings before income taxes |
|
$ |
343 |
|
to |
$ |
346 |
|
Add: Interest expense |
|
|
40 |
|
|
|
41 |
|
Add: Other non-operating (income), net |
|
|
(11 |
) |
|
|
(10 |
) |
Operating income |
|
$ |
372 |
|
to |
$ |
377 |
|
Add: RIP expense (1) |
|
|
2 |
|
|
|
2 |
|
Add: Acquisition-related impacts (2) |
|
|
2 |
|
|
|
2 |
|
(Less): Gain on sales of fixed assets, net (3) |
|
|
(5 |
) |
|
|
(5 |
) |
Add: Impairment of fixed asset (4) |
|
|
5 |
|
|
|
5 |
|
Add: Environmental expense |
|
|
2 |
|
|
|
2 |
|
Add: WAVE pension settlement (5) |
|
|
1 |
|
|
|
1 |
|
Adjusted operating income |
|
$ |
380 |
|
to |
$ |
385 |
|
Add: Depreciation and amortization |
|
|
102 |
|
|
|
105 |
|
Adjusted EBITDA |
|
$ |
482 |
|
to |
$ |
490 |
|
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. |
During the third quarter of 2024 we sold our idled Mineral Fiber plant in |
|
4. |
During the third quarter of 2024 we recorded an impairment charge for an undeveloped parcel of land upon reclassification to assets held for sale. |
|
5. |
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 |
|
$ |
260 |
|
|
$ |
5.91 |
|
to |
$ |
262 |
|
|
$ |
5.95 |
|
Add: Income tax expense |
|
|
83 |
|
|
|
|
|
|
84 |
|
|
|
|
||
Earnings before income taxes |
|
$ |
343 |
|
|
|
|
to |
$ |
346 |
|
|
|
|
||
Add: RIP (credit) (2) |
|
|
(2 |
) |
|
|
|
|
|
(1 |
) |
|
|
|
||
Add: Acquisition-related amortization (3) |
|
|
10 |
|
|
|
|
|
|
11 |
|
|
|
|
||
Add: Acquisition-related impacts (4) |
|
|
2 |
|
|
|
|
|
|
2 |
|
|
|
|
||
(Less): Gain on sales of fixed assets, net (5) |
|
|
(5 |
) |
|
|
|
|
|
(5 |
) |
|
|
|
||
Add: Impairment of fixed asset (6) |
|
|
5 |
|
|
|
|
|
|
5 |
|
|
|
|
||
Add: Environmental expense |
|
|
2 |
|
|
|
|
|
|
2 |
|
|
|
|
||
Add: WAVE pension settlement (7) |
|
|
1 |
|
|
|
|
|
|
1 |
|
|
|
|
||
Adjusted earnings before income taxes |
|
$ |
356 |
|
|
|
|
to |
$ |
361 |
|
|
|
|
||
(Less): Adjusted income tax expense (8) |
|
|
(86 |
) |
|
|
|
|
|
(87 |
) |
|
|
|
||
Adjusted net earnings |
|
$ |
271 |
|
|
$ |
6.15 |
|
to |
$ |
275 |
|
|
$ |
6.25 |
|
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. |
During the third quarter of 2024 we sold our idled Mineral Fiber plant in |
|
6. |
During the third quarter of 2024 we recorded an impairment charge for an undeveloped parcel of land upon reclassification to assets held for sale. |
|
7. |
Represents the Company's |
|
8. |
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 |
|
$ |
181 |
|
to |
$ |
195 |
|
Add: Return of investment from joint venture |
|
|
98 |
|
|
|
100 |
|
Adjusted net cash provided by operating activities |
|
$ |
279 |
|
to |
$ |
295 |
|
Less: Capital expenditures |
|
|
(82 |
) |
|
|
(88 |
) |
Net cash provided by operating and investing activities |
|
$ |
197 |
|
to |
$ |
207 |
|
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 sales of facilities (2) |
|
|
(12 |
) |
|
|
(12 |
) |
Adjusted Free Cash Flow |
|
$ |
290 |
|
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 and the sale of our idled Mineral Fiber plant in |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241029415018/en/
Investors & Media: Theresa Womble, tlwomble@armstrongceilings.com or (717) 396-6354
Source: Armstrong World Industries, Inc.
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