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LONDON, UK / ACCESSWIRE / December 19, 2017 / Active-Investors free earnings report on Armstrong Flooring, Inc. (NYSE: AFI) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=AFI. Armstrong Flooring reported its third quarter fiscal 2017 operating results on November 06, 2017. North America's largest producer of resilient and wood flooring products provided guidance for the full year 2017. Register today and get free access to our complimentary member's area where many more reports are available:
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Earnings Highlights and Summary
In the third quarter of 2017, Armstrong Flooring's net sales were $308.5 million, down 2% compared to net sales of $313.4 million in Q3 2016, primarily as a result of a decline in net sales in the Wood Flooring segment. The Company's revenue numbers exceeded analysts' estimates of $294.68 million.
For Q3 2017, Armstrong Flooring's net loss was $18.7 million or $0.70 per diluted share compared to net income of $9.3 million, or earnings per diluted share of $0.33, in Q3 2016. In the reported quarter, the Company incurred pre-tax costs totaling $36.2 million, resulting from a non-cash impairment of $12.5 million related to the Bruce® trademark and $23.7 million of expense in connection with the closing of two manufacturing facilities in its Wood Flooring segment.
Armstrong Flooring's adjusted net income was $5.3 million, or $0.20 per diluted share, in Q3 2017 compared to $12.1 million, or $0.43 per diluted share, in Q3 2016. The Company's earnings lagged behind Wall Street's estimates of $0.27 per share.
During Q3 2017, Armstrong Flooring's adjusted EBITDA was $25.5 million compared to $32.4 million in Q3 2016, with the decline primarily attributable to the impact of lower Wood Flooring segment's net sales combined with increased raw material input cost inflation.
Armstrong Flooring's Segment Results
During Q3 2017, the Resilient Flooring segment's sales grew 2.2% to $194.4 million compared to $190.2 million in Q3 2016, primarily due to stronger volumes in Luxury Vinyl Tile (LVT) and Vinyl Composition Tile (VCT), which more than offset lower price across most categories. The segment's operating income for the reported quarter was $8.5 million compared to $11.9 million in the prior year's same quarter. Resilient Flooring's adjusted EBITDA was $21.2 million in Q3 2017 compared to $22.9 million in Q3 2016, primarily attributable to the decline in price, unfavorable mix and higher input costs.
For Q3 2017, the Wood Flooring division's net sales fell 7.4% to $114.1 million compared to $123.2 million in Q3 2016, driven by lower volumes, primarily in solid wood. The segment's operating loss was $38.6 million in the reported quarter compared to operating income of $4.3 million in the prior year's same quarter. The Wood Flooring segment's operating income in Q3 2017 included the previously mentioned pre-tax costs of $36.2 million. The segment's adjusted EBITDA was $4.2 million in Q3 2017 compared to $9.4 million in Q3 2016, primarily attributable to the impact of lower net sales and higher manufacturing costs.
In August 2017, Armstrong Flooring initiated steps to consolidate its Wood Flooring manufacturing network through the planned closing of a solid wood plant and an engineered wood plant, which was completed in October 2017. In connection with the plant closures, the Company expects to incur one-time, pre-tax cash expenditures in 2017 totaling $3 million to $5 million, of which $2.7 million of cash expenditures were recognized in the third quarter of 2017. Annual pre-tax savings from these actions are expected to be in the range of $8 million to $10 million.
Share Repurchase Program
During Q3 2017, Armstrong Flooring repurchased approximately 1.7 million shares at an aggregate value of $25.6 million under its share repurchase program. Since inception of the share repurchase program in March 2017, the Company has repurchased approximately 2.5 million shares at an aggregate value of $40.0 million.
For the full year 2017, Armstrong Flooring is forecasting adjusted EBITDA to be in the range of $60 million to $70 million. The Company expects capital expenditures to be in the band of $40 million to $45 million.
Stock Performance Snapshot
December 18, 2017 - At Monday's closing bell, Armstrong Flooring's stock marginally rose 0.74%, ending the trading session at $16.40.
Volume traded for the day: 148.39 thousand shares.
Stock performance in the last month – up 1.67%; previous three-month period – up 7.47%
After yesterday's close, Armstrong Flooring's market cap was at $421.15 million.
The stock is part of the Industrial Goods sector, categorized under the General Building Materials industry. This sector was up 0.8% at the end of the session.
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