NYSE$AWI

Armstrong World Industries Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Armstrong's Q4 2020 earnings decreased due to lower sales volume and higher SG&A costs, but the company advanced its strategic initiatives and completed three acquisitions.

Armstrong World Industries reported a 3% decrease in net sales and a 29% decrease in operating income compared to the prior year quarter. Despite these challenges, the company invested in digital tools and initiatives, launched new products, and completed three acquisitions, including Arktura. The company delivered over $200 million in free cash flow.

  • Net sales decreased by 3% compared to the prior year quarter.
  • Operating income decreased by 29% compared to the prior year quarter.
  • Adjusted EBITDA decreased by 19% compared to the prior year quarter.
  • Arktura, LLC was acquired during the quarter.

Headline financials

Total Revenue

$239M

Previous: $247M-3.3%
EPS (adj)

$0.77

Previous: $1.11-30.6%
Adjusted EBITDA

$73M

Previous: $90M-18.9%
Free Cash Flow

$68M

Previous: $71M-4.2%
Net Income

$34.8M

Previous: $47.7M-27.0%
Operating Income

$44.1M

Previous: $62.2M-29.1%
Gross Profit

$82.8M

Previous: $88.6M-6.5%
Cash & Equivalents

$137M

Previous: $45.3M+202.2%
Total Assets

$1.72B

Previous: $1.49B+15.1%
Stock-Based Comp

$2.1M

Previous: $2.4M-12.5%

Revenue & EPS history

Armstrong · Revenue · Quarterly

$239M

Q4 2020-3.3%vs Q4 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Armstrong · $283M total across 2 segments · Q1 2022

  • Mineral Fiber
    $203M
  • Architectural Specialties
    $79.4M

Forward guidance

Armstrong expects sequential improvements in end markets and anticipates sales growth of 10% to 13% in 2021, with adjusted EBITDA growth of 9% to 13% and a free cash flow margin of 19%.

Tailwinds

  • Expect sequential improvements in our end markets as market conditions improve
  • Vaccinations allow businesses to return to more normal operations
  • Growth initiatives including Healthy Spaces
  • Growth initiatives including kanopi
  • Year-on-year benefit of our 2020 acquisitions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-1.9%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.4%

Avg return

30 days after

42%

27 / 64 earnings

Positive

+14.7%

Q4 2016

Best reaction

-14.3%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.5%-5.2%-9.9%
Q4 2025-7.4%-10.0%-14.4%
Q3 2025-4.6%-6.0%-5.8%
Q1 2025+1.9%+6.5%+19.3%
Q4 2024+5.2%+5.4%-1.0%
Q3 2024+2.2%+2.4%+16.7%
Q2 2024+0.5%-3.4%-4.2%
Q1 2024-4.0%-2.7%-2.5%
Q4 2023+13.3%+16.4%+18.7%
Q3 2023+5.0%+5.7%+20.7%
Q2 2023+3.2%+3.0%-3.0%
Q1 2023-9.2%-5.9%-13.4%
Q4 2022-2.5%-1.8%-16.3%
Q3 2022-6.5%-5.4%-3.6%
Q2 2022+3.4%+8.0%+9.6%
Q1 2022-6.9%-8.9%-11.2%
Q4 2021-6.2%-5.7%-4.8%
Q3 2021+1.3%+3.8%+12.1%
Q2 2021+1.8%+2.5%-1.3%
Q1 2021+3.5%+3.1%+4.6%
Q4 2020+13.7%+10.2%+16.4%
Q3 2020-8.9%-7.8%+19.7%
Q2 2020-13.3%-12.7%-8.1%
Q1 2020+1.0%-2.8%-1.2%
Q4 2019-0.8%-5.9%-26.4%
Q3 2019-8.9%-8.1%-5.3%
Q2 2019-0.9%-3.6%-6.3%
Q1 2019-1.2%+1.7%-1.1%
Q4 2018+1.7%+1.1%+3.8%
Q3 2018+6.5%+15.3%+15.6%
Q2 2018+1.3%+3.7%+4.3%
Q1 2018+2.0%+2.3%+9.8%
Q4 2017-3.8%-2.7%-9.2%
Q3 2017-4.6%-4.1%+11.7%
Q2 2017+9.8%+6.7%+6.4%
Q1 2017-1.0%-1.9%-10.9%
Q4 2016+14.7%+18.8%+13.5%
Q3 2016-6.5%-7.5%+4.9%
Q2 2016+1.5%+3.7%+5.1%
Q1 2016-3.7%
Q4 2015-5.2%
Q3 2015+3.6%
Q2 2015+4.8%
Q1 2015-2.5%
Q4 2014+1.5%
Q3 2014-7.1%
Q2 2014-10.5%
Q1 2014-0.3%
Q4 2013-9.1%
Q3 2013+1.8%
Q2 2013-1.9%
Q1 2013-2.5%
Q4 2012-7.9%
Q3 2012+6.2%
Q2 2012-14.3%
Q1 2011-3.2%
Q1 2012+3.9%
Q4 2009+1.5%
Q3 2010-14.1%
Q3 2011-14.1%
Q2 2010-10.4%
Q4 2010-10.4%
Q2 2011-10.4%
Q1 2010-8.0%

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