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Dec 31, 2019

Armstrong Q4 2019 Earnings Report

Armstrong's Q4 2019 results showcased revenue growth and improved profitability.

Key Takeaways

Armstrong World Industries reported a 3% increase in net sales, reaching $246.9 million. Operating income rose by 18% to $62.2 million, and earnings per share increased by 40% to $1.04. The company's adjusted EBITDA also grew by 14%.

Net sales increased by 3% compared to the previous year's quarter.

Operating income grew by 18% compared to the prior year's quarter.

Adjusted EBITDA and EPS increased by 14% and 40%, respectively, year-over-year.

The company completed the acquisition of MRK Industries.

Total Revenue
$247M
Previous year: $239M
+3.3%
EPS
$1.11
Previous year: $0.8
+38.8%
Adjusted EBITDA
$90M
Previous year: $79M
+13.9%
Gross Profit
$88.6M
Previous year: $82.1M
+7.9%
Cash and Equivalents
$45.3M
Previous year: $326M
-86.1%
Free Cash Flow
$71M
Total Assets
$1.49B
Previous year: $1.84B
-18.8%

Armstrong

Armstrong

Forward Guidance

The company anticipates continued market conditions from 2019, expecting high-single digit sales growth, adjusted EBITDA margin expansion, and adjusted free cash flow exceeding 25% of sales.

Positive Outlook

  • Expect a continuation of the market conditions seen in 2019.
  • Expect to grow sales in the high-single digit range.
  • Expand adjusted EBITDA margins.
  • Generate sector leading adjusted free cash flow of more than 25% of sales.
  • Return of investment from joint venture ($80-$90M)