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Jun 30, 2020

Armstrong Q2 2020 Earnings Report

Reported a decrease in net sales and operating income due to lower volumes in both the Mineral Fiber and Architectural Specialties segments as a result of lower market demand due to COVID-19.

Key Takeaways

Armstrong World Industries reported a decrease in net sales of 25% and a decrease in operating income of 28% compared to the prior year quarter. The company also announced the acquisition of Turf Design and an increase in the share repurchase program.

Net sales decreased by 25% compared to the prior year quarter.

Operating income decreased by 28% compared to the prior year quarter.

Acquired Turf Design, a manufacturer of felt ceilings, walls, and barrier solutions.

Board of Directors authorized an increase in the share repurchase program from $700 million to $1.2 billion and extended the term until 2023.

Total Revenue
$203M
Previous year: $272M
-25.3%
EPS
$0.75
Previous year: $1.27
-40.9%
Adjusted EBITDA
$69M
Gross Profit
$67.8M
Previous year: $103M
-34.4%
Cash and Equivalents
$117M
Previous year: $240M
-51.3%
Total Assets
$1.54B
Previous year: $1.89B
-18.3%

Armstrong

Armstrong

Forward Guidance

The company expects sales for the full year to be down 10%-18% and adjusted EBITDA margins to be greater than 35%. They also continue to expect to generate a free cash flow margin of 25%.