Armstrong Flooring Soars 40% on News of Exploring a Sale, Securing New Loan
By Dhirendra Tripathi
Investing.com – Armstrong Flooring stock (NYSE:AFI) climbed 40% in Monday’s pre-market trading after the company said it is exploring a sale as well as other strategic options.
The company said it has retained Houlihan Lokey Capital on possible alternatives to maximize shareholder value. The manufacturer of flooring solutions said it has secured $35 million in term loans from its lenders to pursue its operational and strategic goals. The new loan facility is available through June.
AFI has been making losses for several quarters as the pandemic hit demand for its flooring products. Expensive raw materials have also hurt margins while the company attempted to cushion the impact through price hikes. Receivables from clients also went up in this time.
For the nine months ended September 30, the company almost doubled its adjusted net loss to $60 million. This follows an adjusted net loss of $59 million on net sales of $585 million in the year ended December 2020. The company had booked an adjusted loss of $40 million in 2019.
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