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Mar 31, 2021

Armstrong Q1 2021 Earnings Report

Armstrong's first quarter results were reported with a slight increase in net sales but a decrease in operating income and adjusted EBITDA compared to the prior year.

Key Takeaways

Armstrong World Industries reported a 1.3% increase in net sales for Q1 2021 compared to Q1 2020, driven by favorable Average Unit Value, but operating income decreased by 28.8% and Adjusted EBITDA decreased by 12.0%. The company maintains its 2021 guidance for net sales and adjusted EBITDA growth.

Net sales increased by 1% compared to the same quarter last year.

Operating income decreased by 29% compared to the prior year quarter.

Adjusted EBITDA decreased by 12% compared to the prior year quarter.

The company is maintaining its 2021 guidance for net sales and adjusted EBITDA.

Total Revenue
$252M
Previous year: $249M
+1.3%
EPS
$0.84
Previous year: $1.1
-23.6%
Adjusted EBITDA
$85M
Previous year: $97M
-12.4%
Gross Profit
$87.5M
Previous year: $91.3M
-4.2%
Cash and Equivalents
$122M
Previous year: $147M
-17.2%
Free Cash Flow
$23M
Total Assets
$1.72B
Previous year: $1.59B
+7.9%

Armstrong

Armstrong

Forward Guidance

Armstrong is maintaining its 2021 guidance and expects to grow sales 10% to 13%, adjusted EBITDA 9% to 13%, to drive a free cash flow margin of 19% for the full fiscal year.

Positive Outlook

  • Market conditions steadily improve.
  • Vaccination rollout across the US allows more businesses to open.
  • Growth initiatives, including Healthy Spaces and kanopi.
  • Year-on-year benefit of 2020 acquisitions.
  • Expect to grow sales 10% to 13%.