Armstrong Flooring Reports Third Quarter 2016 Results

Armstrong Flooring, Inc. (NYSE:AFI) ("Armstrong Flooring" or the "Company"), North America's largest producer of resilient and wood flooring products, today reported financial results for the quarter ended September 30, 2016.

"Our operational enhancements were evident during the quarter with adjusted EBITDA growth of 25% to $30.4 million and adjusted EBITDA margin of 9.7%," said Don Maier, Chief Executive Officer. "We are steadily strengthening our balance sheet position and generating meaningful cash flow to deliver positive free cash flow for 2016. Our Luxury Vinyl Tile ("LVT") business continued to outpace the broader market with double digit growth, particularly in residential end markets. That said, overall end markets were soft, creating heightened competitive dynamics and pricing pressure. Amid that backdrop, we are encouraged by our ability to deliver another quarter of adjusted EBITDA gains which reflects dedicated efforts to build value through our strategic priorities to achieve our medium term goals."
 

Third Quarter of 2016 Compared with Third Quarter of 2015
 
(Dollars in millions except per share data)       Three Months Ended September 30,

2016
   

2015
 

Change
Net sales $313.4 $322.6 (2.9%)
Operating income $14.1 $11.6 21.9%
Net income $8.3 $8.9 (6.5%)
Diluted earnings per share $0.29 $0.32 (9.4%)
 
Adjusted net sales 1 $313.5 $321.6 (2.5%)
Adjusted EBITDA 1 $30.4 $24.3 25.4%
Adjusted EBITDA margin 9.7% 7.5% 220bps
Adjusted net income 1 $11.2 $10.7 4.5%
Adjusted diluted earnings per share 1 $0.39 $0.39 2.2%
 

1 Adjusted net sales, adjusted EBITDA, adjusted net income, and adjusted diluted earnings per share are non-GAAP measures reconciled in the supplemental tables below

In the third quarter of 2016, net sales were $313.4 million compared to $322.6 million in the third quarter of 2015, mainly reflecting lower Wood segment net sales.

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