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Jun 30, 2021

Armstrong Q2 2021 Earnings Report

Reported strong year-over-year sales and earnings growth due to market conditions rebounding from the impact of COVID-19.

Key Takeaways

Armstrong World Industries reported a 38% increase in net sales and a 44% increase in adjusted EBITDA compared to the prior-year quarter, driven by a continued recovery in key markets from COVID-19 challenges.

Net sales increased by 38% compared to the prior-year quarter.

Operating income rose by 26% compared to the prior-year quarter.

Adjusted EBITDA increased by 44% compared to the prior-year quarter.

Full-year 2021 sales and earnings guidance were increased.

Total Revenue
$280M
Previous year: $203M
+37.8%
EPS
$1.16
Previous year: $0.75
+54.7%
Adjusted EBITDA
$100M
Previous year: $69M
+44.9%
Gross Profit
$105M
Previous year: $67.8M
+54.7%
Cash and Equivalents
$119M
Previous year: $117M
+1.6%
Free Cash Flow
$64M
Total Assets
$1.72B
Previous year: $1.54B
+11.2%

Armstrong

Armstrong

Forward Guidance

The company expects to grow net sales 16% to 18% and adjusted EBITDA 12% to 15% versus the prior year.

Positive Outlook

  • Improving market conditions
  • Expect to exit the year on a sales rate per day basis comparable to 2019
  • Robust project pipeline
  • Additional clarity around the current marketplace
  • Team’s solid execution through the first half of the year

Challenges Ahead

  • Impacts and evolution of the pandemic
  • Management of inflationary pressures
  • Adjusting pricing accordingly
  • Monitoring COVID-19 variants
  • Potential impact to business