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Sep 30, 2020

Armstrong Q3 2020 Earnings Report

Armstrong's Q3 2020 earnings were impacted by lower sales volume in both the Mineral Fiber and Architectural Specialties segments due to COVID-19, but acquisitions and improved manufacturing productivity partially offset the decline.

Key Takeaways

Armstrong World Industries reported net sales of $246.3 million, a decrease of 11% compared to the prior year quarter. Operating income was $72.3 million, down 36% year-over-year. The company acquired Turf Design and Moz Designs during the quarter and provided 2020 guidance for net sales, EBITDA, and adjusted free cash flow.

Net sales decreased by 11% compared to the prior year quarter, totaling $246.3 million.

Operating income declined by 36% year-over-year, reaching $72.3 million.

Adjusted EBITDA was down 19% compared to the same quarter last year.

The company completed the acquisitions of Turf Design and Moz Designs during the quarter.

Total Revenue
$246M
Previous year: $277M
-11.1%
EPS
$1.07
Previous year: $1.38
-22.5%
Adjusted EBITDA
$92M
Previous year: $114M
-19.3%
Gross Profit
$91.2M
Previous year: $112M
-18.4%
Cash and Equivalents
$139M
Previous year: $98M
+41.6%
Total Assets
$1.63B
Previous year: $1.51B
+8.2%

Armstrong

Armstrong

Forward Guidance

Assuming continued sequential market improvement and no second wave of construction site shutdowns, Armstrong expects sales for the full year in the range of $920-$935 million, adjusted EBITDA in the range of $320-$330 million, and adjusted free cash flow of $200-$210 million.