LANCASTER, Pa., Aug. 1, 2011 /PRNewswire/ -- Armstrong World
Industries, Inc. (NYSE: AWI), a global leader in the design and
manufacture of floors, ceilings, and cabinets, today reported
second quarter 2011 results.
Highlights for the Second Quarter of 2011
- Adjusted EBITDA of $109 million,
up 24% over the 2010 period
- Operating Income of $72.7
million, up 37.4% over the 2010 period
- Cost reduction program exceeding targeted savings
- Macro economic climate remains challenging
Second Quarter Results
|
|
(Amounts in millions except per
share data)
|
Three Months
Ended June 30,
|
|
|
|
2011
|
2010
|
Change
|
|
Net sales
|
$ 748.6
|
$ 724.8
|
3.3%
|
|
Operating income
|
72.7
|
52.9
|
37.4%
|
|
Net income
|
37.9
|
26.8
|
41.4%
|
|
Diluted earnings per
share
|
$ 0.64
|
$ 0.46
|
39.1%
|
|
|
|
|
|
|
|
Consolidated net sales increased approximately $24 million or 3% compared to the prior year
period. Excluding a $24 million
favorable foreign exchange impact for the quarter, sales were
relatively flat compared to the prior year period. On a
consolidated level, price and mix were able to offset broad volume
declines in all businesses and geographies, except in the Wood
business and in Asia where volume
grew. Volume declines in the European flooring markets
reflect the exit from the residential flooring business in fourth
quarter of 2010, and the simplification of our country and product
offerings in Europe.
Excluding the impact of these actions, volumes in European
flooring showed slight improvement.
Operating income and net income both increased due to the cost
reduction actions initiated in 2010, which resulted in lower
manufacturing costs and core SG&A expenses when compared to the
same period last year. Input cost inflation increased
$15 million versus second quarter
2010, primarily driven a broad array of input items including PVC,
plasticizers and Titanium Dioxide.
"I am pleased to announce that, on an adjusted basis, EBITDA was
up 24% from Q2 2010 levels, on relatively flat sales," said
Matt Espe, President and CEO.
"Volumes were down in most of our business reflecting the
cautionary economic environment in which we continue to operate.
We were, however, able to achieve increased profitability
through the continued execution of our cost savings plans, pricing
ability, mix gains from new products and leverage of LEAN
investments."
Additional (non-GAAP) Financial Metrics*
|
|
(Amounts in millions except per
share data)
|
Three Months
Ended June 30,
|
|
|
|
2011
|
2010
|
Change
|
|
Adjusted operating
income
|
$ 82
|
$ 60
|
37%
|
|
Adjusted net income
|
41
|
33
|
24%
|
|
Adjusted diluted earnings per
share
|
$ 0.70
|
$ 0.55
|
27%
|
|
Free cash flow
|
$ 50
|
$ 89
|
($39)
|
|
|
|
|
|
|
|
|
|
(Amounts in millions except per
share data)
|
Three Months
Ended June 30,
|
|
|
|
2011
|
2010
|
Change
|
|
Adjusted EBITDA
|
|
|
|
|
Building
Products
|
$ 74
|
$ 68
|
9%
|
|
Resilient
Flooring
|
25
|
20
|
25%
|
|
Wood
Flooring
|
16
|
4
|
Favorable
|
|
Cabinets
|
1
|
-
|
Favorable
|
|
Unallocated
Corporate
|
(7)
|
(4)
|
(75)%
|
|
Consolidated Adjusted
EBITDA
|
$ 109
|
$ 88
|
24%
|
|
*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 and adjusted EBITDA
exclude the impact of foreign exchange, restructuring charges and
related costs, impairments, and certain other nonrecurring gains
and losses. Adjusted figures are reconciled to the most
comparable GAAP measures in tables at the end of this release.
|
|
|
|
|
|
Improvements in adjusted operating income and EBITDA were driven
by reductions in manufacturing costs, coupled with the impact of
better pricing and reductions in SG&A expenses, which were
partially offset by increased input costs. The reduction in
free cash flow was primarily due to a smaller decrease in working
capital than in the second quarter of 2010, higher capital
expenditures, and higher interest expense.
Second Quarter Segment Highlights
Building Products
|
|
|
Three Months
Ended June 30,
|
|
|
|
2011
|
2010
|
Change
|
|
Total segment net
sales
|
$ 305.0
|
$ 284.4
|
7.2%
|
|
Operating income
|
$ 57.1
|
$ 53.0
|
7.7%
|
|
|
|
|
|
|
|
The increase in net sales was driven by favorable foreign
exchange of approximately $12 million
and better price and mix, which were partially offset by lower
volumes in the Americas and Western
Europe. Operating income increased as price offset
inflation and improvements in mix and reduced manufacturing costs
were offset slightly by lower volumes.
Resilient Flooring
|
|
|
Three Months
Ended June 30,
|
|
|
|
2011
|
2010
|
Change
|
|
Total segment net
sales
|
$ 274.7
|
$ 276.0
|
(0.5)%
|
|
Operating income
|
$ 11.3
|
$ 10.0
|
13.0%
|
|
|
|
|
|
|
|
Net sales decreased slightly as favorable foreign exchange of
approximately $11 million and
improved product mix and price were more than offset by volume
declines in the Americas and Europe. Net sales declines in the
European markets for both periods reflects the volume reductions
related to the restructuring of our European flooring business
which included the exit of the residential flooring business and
simplifying our country and product offerings. Excluding the
impact of these actions, volumes in the European markets showed
slight improvement.
The increase in operating income was due to reduced
manufacturing costs, improved price and reductions in SG&A
expenses, which were partially offset by volume declines and raw
material inflation. Operating income for the 2011 period
included $5.9 million of severance
and restructuring related costs in Europe. European operating income was
impacted by a $2.1 million fixed
asset impairment charge in the 2010 period.
Wood Flooring
|
|
|
Three Months
Ended June 30,
|
Change
|
|
2011
|
2010
|
|
Total segment net
sales
|
$ 133.6
|
$ 127.2
|
5.0%
|
|
Operating income
|
$ 13.4
|
$ 1.1
|
Favorable
|
|
|
|
|
|
|
|
Net sales increased in the second quarter as price, volume and
mix were all positive contributors. Operating income
increased as a result of reduced manufacturing and SG&A costs
and improved sales.
Cabinets
|
|
|
Three Months
Ended June 30,
|
|
|
2011
|
2010
|
Change
|
|
Total segment net
sales
|
$ 35.3
|
$ 37.2
|
(5.1)%
|
|
Operating income
(loss)
|
$ 0.8
|
$ (0.4)
|
Favorable
|
|
|
|
|
|
|
|
Net sales decreased primarily due to less favorable product mix.
Operating income improved primarily due to reduced SG&A
expenses, which were partially offset by unfavorable product
mix.
Corporate
Unallocated corporate expense of $9.9
million decreased from $10.8
million in the prior year. The second quarter 2011 expense
included a $6.2 million lower pension
credit compared to 2010. The second quarter 2010 expense
included a $3.0 million impairment
charge related to the termination of flight operations.
Year to Date Results
For the six months ended June 30,
2011, reported net sales were $1,433.8 million compared to $1,383.7 million in 2010. Excluding a
$29 million favorable impact from
exchange rates, net sales increased by 1.5% percent as volume
declines were more than offset by price and mix.
Reported operating income for the first six months was
$124.8 million compared to operating
income of $66.3 million for the same
period in 2010. Adjusted EBITDA of $202 million increased 40% compared to Adjusted
EBITDA of $144 million in the prior
year period. Significant reductions in manufacturing costs
and SG&A expenses, coupled with price and mix gains more than
offset the negative margin impact of inflation in input costs.
Free cash flow for the first six months of 2011 was $6 million compared to $59
million for 2010 primarily due changes in working capital,
higher interest expense and increased capital expenditures in
2011.
Market Outlook and 2011 Guidance
Management's macro economic outlook for 2011 is down slightly
from the beginning of the year and the end of the first quarter.
Entering the year U.S. and Western European markets were
expected to be relatively flat. Management projected new home
starts in the U.S. to be around 600,000 and anticipated repair and
remodel activity in North America
to be flat to slightly down and commercial repair remodel activity
slightly up. "We now expect our residential and commercial
end markets opportunity to be slightly lower as the domestic
economic recovery appears to be delayed," said Tom Mangas, Senior Vice President and CFO.
"We continue to expect emerging markets' GDP to continue to
grow in the high single digit range."
Management is raising the low end of sales guidance driven by
foreign exchange trends, and raising the lower end of EBITDA
guidance by $10 million to $385
million. Savings opportunities in excess of the
previously announced $150 million
initiative have been identified. "We now expect to save
approximately $165 million and have
accelerated some savings initially expected in 2012 into 2011.
2011 savings are now expected to be approximately
$90 million, up from $65 million incorporated in our previous
guidance," said Mangas.
|
|
(Amounts in millions)
|
2011
Estimate Range
|
|
Net sales
|
$ 2,900
to $ 3,000
|
|
Adjusted EBITDA
|
$385
to $415
|
|
|
|
|
|
For the third quarter of 2011, sales are expected to be between
$780 and $830 million and Adjusted
EBITDA to be in the range of $115 to $130
million. Additional forward looking non-GAAP metrics
are available on our web site at http://www.armstrong.com/ under
the Investor Relations tab.
Earnings Webcast
Management will conduct a discussion for shareholders during a
live Internet broadcast beginning at 1:00
p.m. Eastern time today. This event will be broadcast live
on the Company's Web site, www.armstrong.com. From the homepage,
click "For Investors" to access the call and the accompanying slide
presentation. The replay of this event will also be available on
the Company's Web site.
Uncertainties Affecting Forward-Looking Statements
Our disclosures in this presentation and in our other public
documents and comments contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act.
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," etc. in discussions of future operating or financial
performance or the outcome of contingencies such as liabilities or
legal proceedings. 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. A more detailed discussion of
the risks and uncertainties that may affect our ability to achieve
the projected performance is included in the "Risk Factors" and
"Management's Discussion and Analysis" sections of our recent
reports on Forms 10-K and 10-Q filed with the SEC. As a
result, our actual results may differ materially from our expected
results and from those expressed in our forward looking statements.
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
Form 10-Q that will be filed with the SEC today.
Armstrong World Industries, Inc. is a global leader in the
design and manufacture of floors, ceilings and cabinets. In
2010, Armstrong's consolidated net
sales totaled approximately $2.8
billion. Based in Lancaster,
Pa., at June 30, 2011
Armstrong operated 31 plants in seven countries and has
approximately 9,300 employees worldwide. For more
information, visit http://www.armstrong.com/.
As Reported Financial Highlights
|
|
FINANCIAL
HIGHLIGHTS
Armstrong
World Industries, Inc., and Subsidiaries
(amounts in
millions, except for per-share amounts)
(Unaudited)
|
|
|
Three
Months
Ended June
30,
|
Three
Months
Ended June
30,
|
Six
Months
Ended June
30,
|
Six
Months
Ended June
30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Net sales
|
$ 748.6
|
$ 724.8
|
$ 1,433.8
|
$ 1,383.7
|
|
Cost of goods sold
|
563.9
|
554.4
|
1,088.4
|
1,067.5
|
|
Selling, general and
administrative expenses
|
122.2
|
131.8
|
242.3
|
275.3
|
|
Restructuring charges
|
2.4
|
-
|
7.3
|
-
|
|
Equity (earnings) from joint
venture
|
(12.6)
|
(14.3)
|
(29.0)
|
(25.4)
|
|
Operating
income
|
72.7
|
52.9
|
124.8
|
66.3
|
|
|
|
|
|
|
|
Interest expense
|
11.5
|
4.0
|
26.3
|
7.9
|
|
Other non-operating
expense
|
0.8
|
0.3
|
1.1
|
0.3
|
|
Other non-operating
(income)
|
(0.8)
|
(0.8)
|
(1.4)
|
(1.5)
|
|
Earnings before income
taxes
|
61.2
|
49.4
|
98.8
|
59.6
|
|
Income tax expense
|
23.3
|
22.6
|
47.4
|
52.2
|
|
Net
income
|
$ 37.9
|
$ 26.8
|
$ 51.4
|
$ 7.4
|
|
|
|
|
|
|
|
Net earnings per share of common
stock:
|
|
|
|
|
|
Basic
|
$ 0.64
|
$ 0.47
|
$ 0.88
|
$ 0.13
|
|
Diluted
|
$ 0.64
|
$ 0.46
|
$ 0.87
|
$ 0.13
|
|
|
|
|
|
|
|
Average number of common shares
outstanding:
|
|
|
|
|
|
Basic
|
58.3
|
57.6
|
58.2
|
57.6
|
|
Diluted
|
58.9
|
58.1
|
58.8
|
58.1
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
RESULTS
Armstrong
World Industries, Inc., and Subsidiaries
(amounts in
millions)
(Unaudited)
|
|
|
Three
Months
Ended June
30,
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
Net sales
|
2011
|
2010
|
2011
|
2010
|
|
Building Products
|
$ 305.0
|
$ 284.4
|
$ 611.9
|
$ 552.3
|
|
Resilient Flooring
|
274.7
|
276.0
|
509.4
|
508.6
|
|
Wood Flooring
|
133.6
|
127.2
|
244.6
|
251.5
|
|
Cabinets
|
35.3
|
37.2
|
67.9
|
71.3
|
|
Total net
sales
|
$ 748.6
|
$ 724.8
|
$ 1,433.8
|
$ 1,383.7
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
Building Products
|
$ 57.1
|
$ 53.0
|
$ 118.6
|
$ 95.7
|
|
Resilient Flooring
|
11.3
|
10.0
|
10.0
|
4.8
|
|
Wood Flooring
|
13.4
|
1.1
|
16.9
|
(0.5)
|
|
Cabinets
|
0.8
|
(0.4)
|
-
|
(4.3)
|
|
Unallocated Corporate
(expense)
|
(9.9)
|
(10.8)
|
(20.7)
|
(29.4)
|
|
Total Operating
income
|
$ 72.7
|
$ 52.9
|
$ 124.8
|
$ 66.3
|
|
|
|
|
|
|
|
|
Selected
Balance Sheet Information
(amounts in
millions)
|
|
|
(Unaudited)
June
30, 2011
|
December
31,
2010
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
$ 1,147.6
|
|
|
$ 1,020.7
|
|
|
Property, plant and equipment,
net
|
|
855.6
|
|
|
854.9
|
|
|
Other noncurrent
assets
|
|
1,067.9
|
|
|
1,046.8
|
|
|
Total
assets
|
|
$ 3,071.1
|
|
|
$ 2,922.4
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
$ 395.9
|
|
|
$ 382.9
|
|
|
Noncurrent
liabilities
|
|
1,503.0
|
|
|
1,448.7
|
|
|
Equity
|
|
1,172.2
|
|
|
1,090.8
|
|
|
Total
liabilities and shareholders' equity
|
|
$ 3,071.1
|
|
|
$ 2,922.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Cash Flow Information
(amounts in
millions)
(Unaudited)
|
|
|
Six Months
Ended June 30,
|
|
|
2011
|
2010
|
|
Net income
|
$ 51.4
|
$ 7.4
|
|
Other adjustment to reconcile
net income to net cash provided by operating activities
|
57.8
|
64.9
|
|
Changes in operating assets and
liabilities, net
|
(77.1)
|
(16.1)
|
|
Net cash provided by operating
activities
|
32.1
|
56.2
|
|
Net cash (used for) provided by
investing activities
|
(22.7)
|
2.7
|
|
Net cash (used for) financing
activities
|
(29.7)
|
(18.2)
|
|
|
|
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
9.1
|
(10.3)
|
|
Net (decrease) increase in cash
and cash equivalents
|
(11.2)
|
30.4
|
|
Cash and cash equivalents,
beginning of period
|
315.8
|
569.5
|
|
Cash and cash equivalents, end
of period
|
$ 304.6
|
$ 599.9
|
|
|
|
|
|
|
|
Supplemental Reconciliations of GAAP to non-GAAP
Results
To supplement its consolidated financial statements presented in
accordance with accounting principles generally accepted in
the United States (GAAP),
Armstrong provides additional
measures of performance adjusted to exclude the impact of foreign
exchange, restructuring charges and related costs, impairments, and
certain other gains and losses. 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 our 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
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Adjusted EBITDA
|
$ 108.6
|
$ 88.3
|
$ 201.5
|
$ 143.7
|
|
D&A/Fx*
|
(26.4)
|
(28.5)
|
(52.9)
|
(56.7)
|
|
Operating Income,
Adjusted
|
$ 82.2
|
$ 59.8
|
$ 148.6
|
$ 87.0
|
|
Cost reduction initiatives
expenses
|
7.9
|
2.2
|
18.0
|
1.5
|
|
CEO transition costs
|
-
|
-
|
-
|
11.2
|
|
Restructuring
|
2.4
|
-
|
7.3
|
-
|
|
Fixed asset
impairment
|
-
|
5.1
|
-
|
8.2
|
|
Foreign exchange
impact
|
(0.8)
|
(0.4)
|
(1.5)
|
(0.2)
|
|
Operating Income,
Reported
|
$ 72.7
|
$ 52.9
|
$ 124.8
|
$ 66.3
|
|
|
|
|
|
|
|
*Excludes accelerated
depreciation associated with cost reduction initiatives reflected
below. Actual D&A as reported is; $29.9 million for the
three months ended June 30, 2011, $28.1 million for the three
months ended June 30, 2010, $61.8 million for the six months ended
June 30, 2011, and $56.4 million for the six months ended June 30,
2010.
|
|
|
|
|
|
|
|
|
BUILDING PRODUCTS
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Adjusted EBITDA
|
$ 73.8
|
$ 68.2
|
$ 155.0
|
$ 123.0
|
|
D&A/Fx
|
(13.0)
|
(13.2)
|
(26.1)
|
(26.1)
|
|
Operating Income,
Adjusted
|
$ 60.8
|
$ 55.0
|
$ 128.9
|
$ 96.9
|
|
Cost reduction initiatives
expenses
|
4.4
|
2.2
|
9.6
|
1.5
|
|
Restructuring
|
(0.2)
|
-
|
1.5
|
-
|
|
Foreign exchange
impact
|
(0.5)
|
(0.2)
|
(0.8)
|
(0.3)
|
|
Operating Income,
Reported
|
$ 57.1
|
$ 53.0
|
$ 118.6
|
$ 95.7
|
|
|
|
|
|
|
|
|
|
|
RESILIENT
FLOORING
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Adjusted EBITDA
|
$ 24.8
|
$ 19.9
|
$ 39.0
|
$ 22.5
|
|
D&A/Fx
|
(7.5)
|
(8.2)
|
(14.8)
|
(16.1)
|
|
Operating Income,
Adjusted
|
$ 17.3
|
$ 11.7
|
$ 24.2
|
$ 6.4
|
|
Cost reduction initiatives
expenses
|
3.7
|
-
|
9.5
|
-
|
|
Restructuring
|
2.2
|
-
|
5.4
|
-
|
|
Fixed Asset
Impairment
|
-
|
2.1
|
-
|
2.1
|
|
Foreign exchange
impact
|
0.1
|
(0.4)
|
(0.7)
|
(0.5)
|
|
Operating Income,
Reported
|
$ 11.3
|
$ 10.0
|
$ 10.0
|
$ 4.8
|
|
|
|
|
|
|
|
|
|
|
WOOD FLOORING
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Adjusted EBITDA
|
$ 15.4
|
$ 4.5
|
$ 21.2
|
$ 6.4
|
|
D&A/Fx
|
(2.6)
|
(3.1)
|
(5.3)
|
(6.2)
|
|
Operating Income,
Adjusted
|
$ 12.8
|
$ 1.4
|
$ 15.9
|
$ 0.2
|
|
Cost reduction initiatives
(income)
|
(0.2)
|
-
|
(0.5)
|
-
|
|
Restructuring
|
-
|
-
|
(0.2)
|
-
|
|
Foreign exchange
impact
|
(0.4)
|
0.3
|
(0.3)
|
0.7
|
|
Operating Income
(Loss), Reported
|
$ 13.4
|
$ 1.1
|
$ 16.9
|
$ (0.5)
|
|
|
|
|
|
|
|
|
|
|
CABINETS
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Adjusted EBITDA
|
$ 1.4
|
$
-
|
$ 1.1
|
$ (3.4)
|
|
D&A/Fx
|
(0.6)
|
(0.4)
|
(1.1)
|
(0.9)
|
|
Operating Income (Loss),
Adjusted*
|
$ 0.8
|
$ (0.4)
|
$
-
|
$ (4.3)
|
|
*No adjustments necessary to
reconcile adjusted operating income to reported operating income
(loss).
|
|
|
|
|
|
|
|
|
UNALLOCATED
CORPORATE
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Adjusted EBITDA
|
$ (6.8)
|
$ (4.3)
|
$ (14.8)
|
$ (4.8)
|
|
D&A/Fx
|
(2.7)
|
(3.6)
|
(5.6)
|
(7.4)
|
|
Operating (Loss),
Adjusted
|
$ (9.5)
|
$ (7.9)
|
$ (20.4)
|
$ (12.2)
|
|
Cost reduction initiatives
(income)
|
-
|
-
|
(0.5)
|
-
|
|
CEO transition costs
|
-
|
-
|
-
|
11.2
|
|
Restructuring
|
0.4
|
-
|
0.6
|
-
|
|
Fixed asset
impairments
|
-
|
3.0
|
-
|
6.1
|
|
Foreign exchange
impact
|
(0.1)
|
(0.1)
|
0.2
|
-
|
|
Operating (Loss),
Reported
|
$ (9.9)
|
$ (10.8)
|
$ (20.7)
|
$ (29.4)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
CONSOLIDATED
|
June 30,
2011
|
June 30,
2010
|
June 30,
2011
|
June 30,
2010
|
|
|
Total
|
Per
Share
|
Total
|
Per
Share
|
Total
|
Per
Share
|
Total
|
Per
Share
|
|
Adjusted EBITDA
|
$ 108.6
|
|
$ 88.3
|
|
$ 201.5
|
|
$ 143.7
|
|
|
|
|
|
|
|
|
|
|
|
|
D&A as reported
|
(29.9)
|
|
(28.1)
|
|
(61.8)
|
|
(56.4)
|
|
|
Accelerated
Deprecation/Fx
|
3.5
|
|
(0.4)
|
|
8.9
|
|
(0.3)
|
|
|
Operating Income,
Adjusted
|
$ 82.2
|
|
$ 59.8
|
|
$ 148.6
|
|
$ 87.0
|
|
|
Other non-operating
(expense)
|
(11.5)
|
|
(3.7)
|
|
(26.0)
|
|
(6.8)
|
|
|
Earnings Before Taxes,
Adjusted
|
70.7
|
|
56.1
|
|
122.6
|
|
80.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted tax (expense) @
42%
|
(29.7)
|
|
(23.6)
|
|
(51.5)
|
|
(33.7)
|
|
|
Net Earnings,
Adjusted
|
$ 41.0
|
$ 0.70
|
$ 32.5
|
$ 0.57
|
$ 71.1
|
$ 1.21
|
$ 46.5
|
$ 0.80
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax adjustment
items
|
(9.5)
|
|
(6.9)
|
|
(23.8)
|
|
(20.7)
|
|
|
Reversal of adjusted tax @
42%
|
29.7
|
|
23.6
|
|
51.5
|
|
33.7
|
|
|
Ordinary tax
|
(23.8)
|
|
(19.7)
|
|
(43.4)
|
|
(23.5)
|
|
|
Unbenefitted foreign
losses
|
(3.1)
|
|
(2.9)
|
|
(7.9)
|
|
(7.0)
|
|
|
Tax adjustment items
|
3.6
|
|
0.2
|
|
3.9
|
|
-
|
|
|
Federal Medicare Subsidy
Adjustment
|
-
|
|
-
|
|
-
|
|
(21.6)
|
|
|
Net Earnings,
Reported
|
$ 37.9
|
$ 0.64
|
$ 26.8
|
$ 0.46
|
$ 51.4
|
$ 0.87
|
$ 7.4
|
$ 0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
Free Cash Flow
|
2011
|
2010
|
2011
|
2010
|
|
Net Cash From
Operations
|
$ 68
|
$ 84
|
$32
|
$ 56
|
|
Plus/(minus): Net Cash Used for
Investing
|
(18)
|
5
|
(26)
|
3
|
|
Free Cash Flow
|
$ 50
|
$ 89
|
$ 6
|
$ 59
|
|
|
|
|
|
|
|
|
Contact:
Jennifer Johnson,
866-321-6677
jenniferjohnson@armstrong.com
SOURCE Armstrong World Industries, Inc.