Key
Highlights
-
Americas' volume up mid-single digits over
Q2'15
-
Operating income from continuing operations of
$51.7 million, up 26% over Q2'15
-
Adjusted EBITDA from continuing operations of
$82 million, up 19% over Q2'15
-
Announces $150 million dollar share repurchase
program
-
Reiterates full year 2016 adjusted EBITDA
guidance, with lower revenue guidance on softer outlook in
international markets.
LANCASTER, Pa., July 29, 2016 -- Armstrong World
Industries, Inc. (NYSE:AWI), a global leader in the design and
manufacture of innovative commercial and residential ceiling, wall
and suspension system solutions, today reported financial results
for the second quarter ended June 30, 2016.
As previously announced, on April
1, 2016, AWI completed the separation of its legacy flooring
business that now operates as Armstrong Flooring Inc. ("AFI"), an
independent, publicly-traded company. Beginning with the
second quarter of 2016, AFI's historical results are reflected in
AWI's Consolidated Financial Statements as a discontinued operation
and excluded from results of continuing operations.
Second Quarter Results from continuing
operations |
|
|
|
|
|
|
|
|
|
(Amounts in millions except per share data) |
|
Three Months Ended June
30, |
|
|
|
|
2016 |
|
2015 |
|
Change |
|
Net
sales |
|
$314.3 |
|
$306.1 |
|
2.7% |
|
Operating income |
|
51.7 |
|
41.2 |
|
25.5% |
|
Net
income |
|
16.6 |
|
15.1 |
|
9.9% |
|
Diluted earnings per share |
|
$0.29 |
|
$0.27 |
|
7.4% |
|
Excluding the unfavorable impact from foreign
exchange of $4 million, consolidated net sales increased 3.9%
compared to the prior year period, driven by broad based volume
growth in the Americas and improvement in average sales dollars per
unit sold, or average unit value ("AUV"). Volumes in the
Americas were up mid-single digits and were partially offset by
lower volumes in international markets.
The improvement in operating income and net income
compared to the prior year period was driven by lower SG&A
costs in international regions, higher earnings from the WAVE joint
venture, the margin impact of higher volume and AUV
improvement.
"In the second quarter, we delivered strong sales
growth in the Americas with sales up 6%, and expanded adjusted
EBITDA margins globally by 340 basis points," said Vic Grizzle,
CEO. "I'm pleased that our growth initiatives contributed
significantly to our results in the quarter, as we saw double digit
topline growth with premium products in both our core tile business
and Architectural Specialties."
Additional (non-GAAP*) Financial Metrics
from continuing operations |
|
|
|
|
|
|
|
(Amounts in millions except per share data) |
|
Three Months Ended June 30, |
|
|
|
|
2016 |
|
2015 |
|
Change |
Adjusted operating income |
|
$61 |
|
$50 |
|
23.1% |
Adjusted net income |
|
$31 |
|
$26 |
|
23.0% |
Adjusted diluted earnings per share |
|
$0.56 |
|
$0.46 |
|
22.5% |
(Amounts in millions) |
|
Three Months Ended
June 30, |
|
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
Change |
|
2015 Comparable Base EBITDA |
|
Change |
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$80 |
|
$88 |
|
(8.5%) |
|
$71 |
|
13.4% |
|
EMEA |
|
- |
|
(4) |
|
Favorable |
|
(1) |
|
75.0% |
|
Pacific Rim |
|
3 |
|
- |
|
Favorable |
|
- |
|
Favorable |
|
Unallocated Corporate |
|
(1) |
|
(15) |
|
Favorable |
|
(1) |
|
Favorable |
Consolidated Adjusted EBITDA |
|
$82 |
|
$69 |
|
18.5% |
|
$68 |
|
19.3% |
*The Company uses the above non-GAAP adjusted
measures, as well as other non-GAAP measures mentioned below, in
managing the business and believes the adjustments provide
meaningful comparisons of operating performance between periods.
Adjusted operating income, adjusted EBITDA, adjusted net
income, and adjusted EPS exclude the impact of foreign exchange,
restructuring charges and related costs, impairments, the non-cash
impact of the U.S. pension plan, separation costs and certain other
discrete gains and losses. Adjusted figures are reported in
comparable dollars using the budgeted exchange rate for 2016, and
are reconciled to the most comparable GAAP measures in tables at
the end of this release.
Adjusted operating income and adjusted EBITDA
improved by 23% and 19%, respectively, in the second quarter of
2016 when compared to the prior year period. The improvement
in adjusted EBITDA was driven by lower SG&A costs in
international regions, higher earnings from the WAVE joint venture,
the margin impact of higher volume and AUV improvement.
Adjusted earnings per share is calculated using a 39% adjusted tax
rate in both periods.
Second Quarter Segment
Highlights
Effective April 1, 2016, the
former Building Products operating segment was disaggregated
into the following three distinct geographical segments:
Americas (including Canada); Europe, Middle East and Africa
(including Russia) ("EMEA") and Pacific Rim. The Unallocated
Corporate segment historically included assets, liabilities, income
and expenses that had not been allocated to the geographical
segments, including AFI separation costs.
Adjusted EBITDA improved in all
three geographic segments, excluding the impact of stand-alone
corporate costs allocated to the Americas segment.
Americas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
Change |
|
2015 Comparable Base EBITDA |
|
|
Comparable |
Total
segment net sales (as reported) |
|
$214.8 |
|
|
$202.7 |
|
|
6.0% |
|
|
|
|
|
Operating income (as reported) |
|
$64.3 |
|
|
$71.9 |
|
|
(10.6%) |
|
|
|
|
|
Constant currency sales |
|
$214 |
|
|
$202 |
|
|
6.3% |
|
|
|
|
|
Adjusted EBITDA |
|
$80 |
|
|
$88 |
|
|
(8.5%) |
|
$71 |
|
|
13.4% |
Excluding the unfavorable impact of foreign
exchange of approximately $1 million, net sales in the Americas for
the second quarter increased 6.3%, driven by broad based mid-single
digit volume growth in the Americas and continued improvement in
AUV. On an as reported basis, operating income
decreased, driven by higher SG&A expenses and manufacturing
costs, due to increased costs as result of the AFI
separation. These costs more than offset the margin impact of
higher volumes, strong earnings from the WAVE joint venture and
improvements in AUV.
EMEA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
Change |
|
2015 Comparable Base EBITDA |
|
|
Comparable |
|
Total
segment net sales (as reported) |
|
$65.6 |
|
|
$68.6 |
|
|
(4.4%) |
|
|
|
|
|
|
Operating (loss) (as reported) |
|
($5.3) |
|
|
($6.2) |
|
|
14.5% |
|
|
|
|
|
|
Constant currency sales |
|
$67 |
|
|
$68 |
|
|
(1.9%) |
|
|
|
|
|
|
Adjusted EBITDA |
|
($-) |
|
|
($4) |
|
|
Favorable |
|
($1) |
|
|
75.0% |
|
Excluding the unfavorable impact of foreign
exchange of approximately $2 million, net sales in EMEA for the
second quarter decreased 1.9%, driven by lower volumes as lower
sales in the Middle East were mostly offset by higher sales in
Russia. On an as reported basis, operating loss decreased,
driven by lower SG&A costs and lower manufacturing and input
costs that offset the margin impact from lower volumes. The
improvement in SG&A costs over the prior year period reflects
the benefit of prior cost reduction actions and strong cost control
to mitigate softer end markets.
Pacific Rim |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
Change |
|
2015 Comparable Base EBITDA |
|
|
Comparable |
Total
segment net sales (as reported) |
|
$33.9 |
|
|
$34.8 |
|
|
(2.6%) |
|
|
|
|
|
Operating (loss) (as reported) |
|
($2.1) |
|
|
($1.5) |
|
|
(40.0%) |
|
|
|
|
|
Constant currency sales |
|
$34 |
|
|
$33 |
|
|
1.2% |
|
|
|
|
|
Adjusted EBITDA |
|
$3 |
|
|
($-) |
|
|
Favorable |
|
$- |
|
|
Favorable |
Excluding the unfavorable impact of foreign
exchange of approximately $1 million, net sales in the Pacific Rim
for the second quarter increased 1.2%, as improvements in AUV
offset lower volumes. On an as reported basis, the increase
in operating loss was due entirely to severance charges associated
with cost reduction actions, which offset improvements in AUV and
lower SG&A expenses.
Unallocated Corporate
As a result of the AFI separation
on April 1, 2016, the majority of the AWI corporate support
functions, representing costs of approximately $16 million for the
three months ended June 30, 2016, were incorporated into the
Americas segment. As a result, unallocated corporate support
expenses decreased significantly during the three months ended June
30, 2016 when compared to the same period in 2015.
On an as reported basis, unallocated corporate
expense of $5.2 million decreased from $23.0 million in the prior
year. The decrease was due to the inclusion of most of the
corporate costs within the Americas segment. The expenses
flowing through this segment in 2016 are costs and expenses related
to the AFI separation.
Year to Date Results from
continuing operations
Year to Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
Change |
|
2015 Comparable Base EBITDA |
|
|
Comparable |
Net sales
(as reported) |
|
$601.7 |
|
|
$598.1 |
|
|
0.6% |
|
|
|
|
|
Operating income (as reported) |
|
$73.3 |
|
|
$75.3 |
|
|
(2.7%) |
|
|
|
|
|
Constant currency sales |
|
$607 |
|
|
$591 |
|
|
2.6% |
|
|
|
|
|
Adjusted EBITDA |
|
$152 |
|
|
$130 |
|
|
17.6% |
|
$129 |
|
|
18.5% |
Excluding the unfavorable impact from foreign
exchange of approximately $11 million, year to date consolidated
net sales increased 2.6% compared to the prior year period driven
by higher volumes in the Americas and improvements in AUV.
On an as reported basis, operating income declined
by 2.7% driven by AFI separation expenses. Separation
expenses in the first six months of 2016 were $31 million, compared
to $9 million in the prior year period. Operating income was
also impacted by strong earnings from the WAVE joint venture, lower
SG&A expenses reflecting cost control measures plus the net
impact of the separation, and the margin impact from higher
volumes; which more than offset higher manufacturing and input
costs, and the margin impact of unfavorable AUV.
Share Repurchase
Program
AWI also separately announced today that its Board
of Directors authorized a stock repurchase program under which it
may repurchase up to $150 million of its outstanding common
stock. The repurchase authorization extends through July of
2018. "As a key component of our capital allocation strategy,
this authorization demonstrates our conviction in our strategic
growth initiatives and the potential of our business," said Vic
Grizzle, CEO.
Market Outlook and 2016 Guidance (1)
"For the full year 2016, we are maintaining our
adjusted EBITDA guidance, with constant currency sales now expected
to be in the $1.23 to $1.28 billion range," said Brian MacNeal,
CFO. "We expect sales to improve sequentially in the second
half of the year in our international markets after a slow start to
the year, but with the uncertainty created by the U.K. referendum
to leave the European Union, we expect the rate of improvement to
be less than what we had previously anticipated."
The Company is maintaining its expected range for
full year 2016 adjusted EBITDA of $310 to $330 million and its free
cash flow range of $80 to $100 million. The Company now
expects adjusted earnings per share, to be in the range of $2.05 to
$2.25 per diluted share.
(1) Sales
guidance includes the impact of foreign exchange. Guidance
metrics, other than sales, are presented using 2016 budgeted
foreign exchange rates. Adjusted EPS guidance for 2016 is
calculated based on an adjusted effective tax rate of 39%.
Earnings Webcast
Management will host a live Internet broadcast
beginning at 11:00 a.m. Eastern time today, to discuss second
quarter 2016 results. This event will be broadcast live on
the Company's Web site. To access the call and accompanying
slide presentation, go to www.armstrongceilings.com and click
"Investors." The replay of this event will also be available
on the Company's Web site for up to one year after the date of the
call.
Uncertainties Affecting
Forward-Looking Statements
Disclosures in this release, including without
limitation, those relating to future financial results, market
conditions and guidance, and in our other public documents and
comments, contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Those
statements provide our future expectations or forecasts and can be
identified by our use of words such as "anticipate," "estimate,"
"expect," "project," "intend," "plan," "believe," "outlook,"
"target," "predict," "may," "will," "would," "could," "should,"
"seek," and other words or phrases of similar meaning in connection
with any discussion of future operating or financial
performance. Forward-looking statements,
by their nature, address matters that are uncertain and involve
risks because they relate to events and depend on circumstances
that may or may not occur in the future. As a result, our
actual results may differ materially from our expected results and
from those expressed in our forward-looking statements. A
more detailed discussion of the risks and uncertainties that could
cause our actual results to differ materially from those projected,
anticipated or implied is included in the "Risk Factors" and
"Management's Discussion and Analysis" sections of our reports on
Forms 10-K and 10-Q filed with the U.S. Securities and Exchange
Commission ("SEC"). Forward-looking statements speak only as
of the date they are made. We undertake no obligation to
update any forward-looking statements beyond what is required under
applicable securities law.
About Armstrong and Additional
Information
More details on the Company's performance can be
found in its quarterly report on Form 10-Q for the quarter ended
June 30, 2016 that the Company expects to file with the SEC
today.
Armstrong World Industries, Inc.
(AWI) is a global leader in the design and manufacture of
innovative commercial and residential ceiling, wall and suspension
system solutions. With 3,800 employees and fiscal 2015
revenues from ceiling operations in excess of $1.2 billion, AWI
operates from a global manufacturing network of 24 facilities,
including 9 plants dedicated to its WAVE joint venture. On
April 1, 2016, AWI completed the separation of its legacy flooring
business that now operates as Armstrong Flooring Inc., an
independent, publicly-traded company. For more information,
visit www.armstrongceilings.com.
Additional forward looking non-GAAP metrics are
available on the Company's web site at
http://www.armstrongceilings.com/ under the Investor Relations tab.
The website is not part of this release and references to our
website address in this release are intended to be inactive textual
references only.
As Reported Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL HIGHLIGHTS |
Armstrong World Industries,
Inc. and Subsidiaries |
(amounts in millions, except
for per-share amounts, quarterly and year to date data is
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net Sales |
$314.3 |
|
$306.1 |
|
$601.7 |
|
$598.1 |
Costs of goods sold |
222.8 |
|
214.6 |
|
425.9 |
|
417.5 |
Selling general and administrative expenses |
55.8 |
|
61.6 |
|
109.5 |
|
125.9 |
Separation costs |
3.9 |
|
5.1 |
|
31.0 |
|
9.4 |
Equity (earnings) from joint venture |
(19.9) |
|
(16.4) |
|
(38.0) |
|
(30.0) |
|
Operating income |
51.7 |
|
41.2 |
|
73.3 |
|
75.3 |
|
|
|
|
|
|
|
|
|
Interest expense |
12.5 |
|
11.4 |
|
34.4 |
|
22.6 |
Other non-operating expense |
- |
|
0.2 |
|
- |
|
2.7 |
Other non-operating (income) |
(2.1) |
|
(3.4) |
|
(7.3) |
|
(5.4) |
|
Earnings from continuing operations before income taxes |
41.3 |
|
33.0 |
|
46.2 |
|
55.4 |
Income tax expense |
24.7 |
|
17.9 |
|
36.7 |
|
34.6 |
|
Earnings from continuing operations |
$16.6 |
|
$15.1 |
|
$9.5 |
|
$20.8 |
Net earnings (loss) from discontinued operations, net of
tax expense of $-, $7.3, $0.1 and $10.7 |
- |
|
14.8 |
|
(4.5) |
|
12.9 |
Gain (loss) from disposal of discontinued business, net of
tax (benefit) of ($0.1), $-, ($1.9) and ($43.4) |
0.3 |
|
(0.3) |
|
2.0 |
|
42.5 |
|
Net
earnings (loss) from discontinued operations |
0.3 |
|
14.5 |
|
(2.5) |
|
55.4 |
|
Net
earnings |
$16.9 |
|
$29.6 |
|
$7.0 |
|
$76.2 |
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
(13.2) |
|
7.4 |
|
(11.8) |
|
(7.9) |
|
Derivative (loss) |
(2.1) |
|
(0.6) |
|
(0.5) |
|
(1.1) |
|
Pension and postretirement adjustments |
9.2 |
|
9.2 |
|
17.0 |
|
21.1 |
|
Total
other comprehensive (loss) income |
(6.1) |
|
16.0 |
|
4.7 |
|
12.1 |
Total comprehensive income |
$10.8 |
|
$45.6 |
|
$11.7 |
|
$88.3 |
|
|
|
|
|
|
|
|
|
Earnings per share of common stock, continuing
operations |
|
|
|
|
|
|
|
|
Basic |
$0.30 |
|
$0.27 |
|
$0.17 |
|
$0.37 |
|
Diluted |
$0.29 |
|
$0.27 |
|
$0.17 |
|
$0.37 |
|
|
|
|
|
|
|
|
|
Earnings (loss) per share of common stock, discontinued
operations |
|
|
|
|
|
|
|
|
Basic |
$0.01 |
|
$0.26 |
|
($0.04) |
|
$0.99 |
|
Diluted |
$0.01 |
|
$0.26 |
|
($0.04) |
|
$0.98 |
|
|
|
|
|
|
|
|
|
Net earnings per share of common stock: |
|
|
|
|
|
|
|
|
Basic |
$0.30 |
|
$0.53 |
|
$0.13 |
|
$1.36 |
|
Diluted |
$0.30 |
|
$0.53 |
|
$0.13 |
|
$1.36 |
|
|
|
|
|
|
|
|
|
Average number of common shares outstanding |
|
|
|
|
|
|
|
|
Basic |
55.6 |
|
55.5 |
|
55.6 |
|
55.4 |
|
Diluted |
56.0 |
|
55.8 |
|
55.9 |
|
55.8 |
SEGMENT RESULTS |
Armstrong World Industries,
Inc. and Subsidiaries |
(amounts in millions) |
(Unaudited)
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
Net Sales |
2016 |
|
2015 |
|
2016 |
|
2015 |
Americas |
$214.8 |
|
$202.7 |
|
$414.9 |
|
$394.0 |
EMEA |
65.6 |
|
68.6 |
|
125.2 |
|
139.1 |
Pacific Rim |
33.9 |
|
34.8 |
|
61.6 |
|
65.0 |
|
Total
net sales |
$314.3 |
|
$306.1 |
|
$601.7 |
|
$598.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (loss) |
|
|
|
|
|
|
|
Americas |
$64.3 |
|
$71.9 |
|
$120.4 |
|
$136.3 |
EMEA |
(5.3) |
|
(6.2) |
|
(9.3) |
|
(8.3) |
Pacific Rim |
(2.1) |
|
(1.5) |
|
(3.4) |
|
(4.0) |
Unallocated Corporate (expense) |
(5.2) |
|
(23.0) |
|
(34.4) |
|
(48.7) |
|
Total
Operating Income |
$51.7 |
|
$41.2 |
|
$73.3 |
|
$75.3 |
Selected Balance Sheet Information |
(amounts in millions) |
Assets |
|
|
|
|
June 30, 2016 |
|
|
December 31, 2015 |
Current assets |
|
|
|
|
$390.0 |
|
|
$880.8 |
Property, plant and equipment, net |
|
661.1 |
|
|
648.1 |
Other noncurrent assets |
|
|
|
|
645.9 |
|
|
1,164.7 |
|
Total
assets |
|
|
|
|
$1,697.0 |
|
|
$2,693.6 |
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
$222.4 |
|
|
$436.3 |
Noncurrent liabilities |
|
|
|
|
1,272.2 |
|
|
1,488.5 |
Equity |
|
|
|
|
202.4 |
|
|
768.8 |
|
Total liabilities and shareholders' equity |
$1,697.0 |
|
|
$2,693.6 |
Selected Cash Flow
Information |
(amounts in millions) |
|
|
|
|
|
Six Months Ended June 30, |
|
|
2016 |
|
|
2015 |
Net
income |
|
$7.0 |
|
|
$76.2 |
Other
adjustments to reconcile net income to net cash provided by
operating activities |
|
69.9 |
|
|
23.2 |
Changes in operating assets and liabilities, net |
|
(132.3) |
|
|
(40.5) |
Net
cash (used for) provided by operating activities |
|
(55.4) |
|
|
58.9 |
Net
cash (used for) investing activities |
|
(3.9) |
|
|
(24.3) |
Net
cash (used for) financing activities |
|
(82.9) |
|
|
(15.0) |
|
|
|
|
|
|
Effect
of exchange rate changes on cash and cash equivalents |
|
(3.2) |
|
|
(3.3) |
Net
(decrease) increase in cash and cash equivalents |
|
(145.4) |
|
|
16.3 |
Cash
and cash equivalents, beginning of period |
|
244.8 |
|
|
185.3 |
Cash
and cash equivalents, end of period |
|
$99.4 |
|
|
$201.6 |
Cash
and cash equivalents at end of period of discontinued
operations |
|
- |
|
|
32.8 |
Cash
and cash equivalents at end of period of continuing operations |
|
$99.4 |
|
|
$168.8 |
Supplemental Reconciliations of GAAP to non-GAAP
Results (unaudited)
(Amounts in millions, except per share data)
To supplement its consolidated financial
statements presented in accordance with accounting principles
generally accepted in the United States (GAAP), the Company
provides additional measures of performance adjusted to exclude the
impact of foreign exchange, restructuring charges and related
costs, impairments, the non-cash impact of the U.S. pension plan,
separation costs and certain other gains and losses. Adjusted
figures are reported in comparable dollars using the budgeted
exchange rate for 2016. The Company uses these adjusted
performance measures in managing the business, including
communications with its Board of Directors and employees, and
believes that they provide users of this financial information with
meaningful comparisons of operating performance between current
results and results in prior periods. The Company believes that
these non-GAAP financial measures are appropriate to enhance
understanding of its past performance, as well as prospects for its
future performance. A reconciliation of these adjustments to
the most directly comparable GAAP measures is included in this
release and on the Company's website. These non-GAAP measures
should not be considered in isolation or as a substitute for the
most comparable GAAP measures. Non-GAAP financial measures
utilized by the Company may not be comparable to non-GAAP financial
measures used by other companies.
CONSOLIDATED RESULTS FROM
CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
Comparable Base EBITDA |
|
|
$- |
|
|
$68 |
|
|
$- |
|
|
$129 |
Corp Cost Allocation |
|
|
- |
|
|
(1) |
|
|
- |
|
|
(1) |
Adjusted EBITDA |
|
|
$82 |
|
|
$69 |
|
|
$152 |
|
|
$130 |
D&A/Fx* |
|
|
(21) |
|
|
(19) |
|
|
(39) |
|
|
(38) |
Operating Income, Adjusted |
|
|
$61 |
|
|
$50 |
|
|
$113 |
|
|
$92 |
Non-cash impact of U.S. pension |
|
|
3 |
|
|
4 |
|
|
6 |
|
|
7 |
Separation expenses |
|
|
4 |
|
|
5 |
|
|
31 |
|
|
9 |
Cost reduction initiatives |
|
|
3 |
|
|
- |
|
|
3 |
|
|
- |
Foreign exchange impact |
|
|
(1) |
|
|
- |
|
|
- |
|
|
1 |
|
Operating Income, Reported |
|
|
$52 |
|
|
$41 |
|
|
$73 |
|
|
$75 |
Interest/other expense |
|
|
(11) |
|
|
(8) |
|
|
(16) |
|
|
(20) |
EBT, excluding SWAP charge |
|
|
$41 |
|
|
$33 |
|
|
$57 |
|
|
$55 |
Charge to settle existing interest rate SWAPS due to
refinancing |
|
|
- |
|
|
- |
|
|
(11) |
|
|
- |
EBT, Reported |
|
|
$41 |
|
|
$33 |
|
|
$46 |
|
|
$55 |
Tax expense |
|
|
(24) |
|
|
(18) |
|
|
(36) |
|
|
(34) |
|
Net Income, Reported |
|
|
$17 |
|
|
$15 |
|
|
$10 |
|
|
$21 |
*Excludes accelerated depreciation associated with
cost reduction initiatives reflected below. Actual D&A as
reported is; $20.0 million for the three months ended June 30,
2016, $19.3 million for the three months ended June 30, 2015, $38.8
million for the six months ended June 30, 2016, and $38.3 million
for the six months ended June 30, 2015.
AMERICAS |
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
Comparable Base EBITDA |
|
|
$- |
|
|
$71 |
|
|
$- |
|
|
$134 |
Corp Cost Allocation |
|
|
- |
|
|
(17) |
|
|
- |
|
|
(34) |
Adjusted EBITDA |
|
|
$80 |
|
|
$88 |
|
|
$153 |
|
|
$168 |
D&A/Fx |
|
|
(13) |
|
|
(11) |
|
|
(26) |
|
|
(21) |
Operating Income, Adjusted |
|
|
$67 |
|
|
$77 |
|
|
$127 |
|
|
$147 |
Non-cash impact of U.S. pension |
|
|
3 |
|
|
4 |
|
|
6 |
|
|
7 |
Foreign exchange impact |
|
|
- |
|
|
1 |
|
|
1 |
|
|
4 |
|
Operating Income, Reported |
|
|
$64 |
|
|
$72 |
|
|
$120 |
|
|
$136 |
EMEA |
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
Comparable Base EBITDA |
|
|
$- |
|
|
($1) |
|
|
$- |
|
|
$2 |
Corp Cost Allocation |
|
|
- |
|
|
3 |
|
|
- |
|
|
6 |
Adjusted EBITDA |
|
|
($-) |
|
|
($4) |
|
|
($1) |
|
|
($4) |
D&A/Fx |
|
|
(5) |
|
|
(3) |
|
|
(8) |
|
|
(7) |
Operating (Loss), Adjusted |
|
|
($5) |
|
|
($7) |
|
|
($9) |
|
|
($11) |
Foreign exchange impact |
|
|
- |
|
|
(1) |
|
|
- |
|
|
(3) |
|
Operating (Loss), Reported |
|
|
($5) |
|
|
($6) |
|
|
($9) |
|
|
($8) |
PACIFIC RIM |
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
Comparable Base EBITDA |
|
|
$- |
|
|
$- |
|
|
$- |
|
|
($1) |
Corp Cost Allocation |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Adjusted EBITDA |
|
|
$3 |
|
|
$- |
|
|
$3 |
|
|
($1) |
D&A/Fx |
|
|
(3) |
|
|
(2) |
|
|
(4) |
|
|
(5) |
Operating Income (Loss), Adjusted |
|
|
$- |
|
|
($2) |
|
|
($1) |
|
|
($6) |
Cost reduction initiatives |
|
|
3 |
|
|
- |
|
|
3 |
|
|
- |
Foreign exchange impact |
|
|
(1) |
|
|
- |
|
|
(1) |
|
|
(2) |
|
Operating (Loss), Reported |
|
|
($2) |
|
|
($2) |
|
|
($3) |
|
|
($4) |
UNALLOCATED CORPORATE |
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
Comparable Base EBITDA |
|
|
$- |
|
|
($1) |
|
|
$- |
|
|
($5) |
Corp Cost Allocation |
|
|
- |
|
|
14 |
|
|
- |
|
|
28 |
Adjusted EBITDA |
|
|
($1) |
|
|
($15) |
|
|
($3) |
|
|
($33) |
D&A/Fx |
|
|
- |
|
|
(3) |
|
|
(1) |
|
|
(5) |
Operating (Loss), Adjusted |
|
|
($1) |
|
|
($18) |
|
|
($4) |
|
|
($38) |
Separation expenses |
|
|
4 |
|
|
5 |
|
|
31 |
|
|
9 |
Foreign exchange impact |
|
|
- |
|
|
- |
|
|
- |
|
|
2 |
|
Operating (Loss), Reported |
|
|
($5) |
|
|
($23) |
|
|
($34) |
|
|
($49) |
CONSOLIDATED RESULTS FROM CONTINUING
OPERATIONS |
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Per Share |
|
Total |
|
Per Share |
|
Total |
|
Per Share |
|
Total |
|
Per Share |
Adjusted EBITDA |
|
$82 |
|
|
|
$69 |
|
|
|
$152 |
|
|
|
$130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
D&A
as reported |
|
(20) |
|
|
|
(19) |
|
|
|
(39) |
|
|
|
(38) |
|
|
Fx/Accelerated Depreciation |
|
(1) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Operating Income, Adjusted |
|
$61 |
|
|
|
$50 |
|
|
|
$113 |
|
|
|
$92 |
|
|
Other
non-operating (expense)* |
|
(10) |
|
|
|
(8) |
|
|
|
(17) |
|
|
|
(20) |
|
|
Earnings Before Taxes, Adjusted |
|
$51 |
|
|
|
$42 |
|
|
|
$96 |
|
|
|
$72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
tax (expense) @ 39% for 2016 and 2015 |
|
(20) |
|
|
|
(16) |
|
|
|
(38) |
|
|
|
(28) |
|
|
Net Earnings, Adjusted |
|
$31 |
|
$0.56 |
|
$26 |
|
$0.46 |
|
$59 |
|
$1.05 |
|
$44 |
|
$0.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax adjustment items |
|
(6) |
|
|
|
(5) |
|
|
|
(45) |
|
|
|
(10) |
|
|
Non-cash impact of U.S. Pension |
|
(3) |
|
|
|
(4) |
|
|
|
(6) |
|
|
|
(7) |
|
|
Reversal of adjusted tax expense @ 39% for 2016 and 2015 |
|
20 |
|
|
|
16 |
|
|
|
38 |
|
|
|
28 |
|
|
Ordinary tax |
|
(13) |
|
|
|
(11) |
|
|
|
(14) |
|
|
|
(18) |
|
|
Unbenefitted foreign losses |
|
(4) |
|
|
|
(6) |
|
|
|
(8) |
|
|
|
(12) |
|
|
Separation costs |
|
(7) |
|
|
|
- |
|
|
|
(16) |
|
|
|
- |
|
|
Tax
adjustment items |
|
(1) |
|
|
|
(1) |
|
|
|
2 |
|
|
|
(4) |
|
|
Net Earnings, Reported |
|
$17 |
|
$0.29 |
|
$15 |
|
$0.27 |
|
$10 |
|
$0.17 |
|
$21 |
|
$0.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Adjusted results exclude $10.7 million of
interest expense recorded in the first quarter of 2016 related to
the settlement of interest rate swaps incurred in connection with
the company's refinancing of its credit facility.
Source: Armstrong World Industries
AWI Reports Second Quarter 2016
Results FINAL
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Armstrong World Industries, Inc. via
Globenewswire
HUG#2031740
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