LANCASTER, Pa.--(BUSINESS WIRE)--Armstrong Flooring, Inc. (NYSE:AFI), North America’s largest producer of resilient and wood flooring products, today reported financial results for the second quarter ended June 30, 2018.
Don Maier, Chief Executive Officer, commented, “I am very proud of the Armstrong Flooring team as we delivered both top and bottom line growth in the second quarter, building on our strong start in Q1. Net sales increased 2.9% driven by significant volume growth in Luxury Vinyl Tile (“LVT”) and higher selling prices across most product categories. Adjusted EBITDA growth reflected the combination of higher sales, productivity and cost saving actions that more than offset significant inflationary pressures. Into the second half of 2018, we have a range of initiatives in motion to further advance our strategic priorities and deliver on our reaffirmed full-year 2018 outlook.”
Second Quarter of 2018 Results Compared with Second Quarter of 2017 Results
Consolidated Results
| Three Months Ended June 30, | |||||||||
| Change | |||||||||
| 110 bps | |||||||||
| Three Months Ended June 30, | |||||||||
| Change | |||||||||
| (200) bps | |||||||||
| Three Months Ended June 30, | ||||||||||
| 2017 | Change | |||||||||
| $109.5 | ($2.3 | |||||||||
| $1.5 | 1.4 | 620 bps | ||||||||
Net sales were $106.1 million as compared to $109.5 million in the prior year quarter, with the decline driven by lower volumes in engineered wood. Higher selling prices in both solid and engineered wood provided a partial offset to lower volumes.
Operating income was $4.6 million, compared to an operating loss of $2.3 million in the prior year quarter. Adjusted EBITDA was $8.1 million as compared to $1.5 million in the prior year quarter, driven by improved manufacturing costs and productivity, along with lower SG&A spending, which more than offset higher input costs.
Full Year 2018 Outlook
For the full year 2018, the Company continues to expect adjusted EBITDA to be in the range of $70 million to $80 million. The adjusted EBITDA outlook assumes sales growth in the low single-digits. The Company continues to expect capital expenditures to be in the range of $40 million to $45 million for the full year 2018 while delivering another year of free cash flow in line with recent years.
About Armstrong Flooring
Armstrong Flooring, Inc. (NYSE: AFI) is a global leader in the design and manufacture of innovative flooring solutions that inspire spaces where people live, work, learn, heal and play SM. Headquartered in Lancaster, Pa., Armstrong Flooring is the #1 manufacturer of resilient and wood flooring products across North America. The Company safely and responsibly operates 15 manufacturing facilities in three countries and employs approximately 3,500 individuals, all working together to provide the highest levels of service, quality and innovation to ensure it remains as strong and vital as its 150-year heritage. Learn more at www.armstrongflooring.com.
