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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-2116

 

ARMSTRONG WORLD INDUSTRIES, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Pennsylvania

23-0366390

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

 

2500 Columbia Avenue, Lancaster, Pennsylvania

17603

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (717) 397-0611

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.01 par value per share

 

AWI

 

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

Number of shares of Armstrong World Industries, Inc.’s common stock outstanding as of April 21, 2022 – 46,960,247.

 

 


 

TABLE OF CONTENTS

 

 

 

 

 

PAGE

Cautionary Note Regarding Forward-Looking Statements

 

3

 

 

 

PART I - FINANCIAL INFORMATION

 

 

Item 1.

 

Financial Statements

 

5

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

22

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

28

Item 4.

 

Controls and Procedures

 

28

 

 

 

PART II - OTHER INFORMATION

 

 

Item 1.

 

Legal Proceedings

 

29

Item 1A.

 

Risk Factors

 

29

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

29

Item 3.

 

Defaults Upon Senior Securities

 

29

Item 4.

 

Mine Safety Disclosures

 

29

Item 5.

 

Other Information

 

29

Item 6.

 

Exhibits

 

30

Signatures

 

31

 

 

 

2


 

When we refer to “AWI,” the “Company,” “we,” “our” or “us,” we are referring to Armstrong World Industries, Inc. and its subsidiaries.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this Quarterly Report on Form 10-Q and the documents incorporated by reference herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, our expectations concerning our markets and their effect on our operating results; the impacts of COVID-19 on our business; our expectations regarding the payment of dividends; and our ability to increase revenues, earnings and earnings before interest, taxes, depreciation and amortization (as discussed below). Words such as “anticipate,” “expect,” “intend,” “plan,” “target,” “project,” “predict,” “believe,” “may,” “will,” “would,” “could,” “should,” “seek,” “estimate” and similar expressions are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors that could have a material adverse effect on our financial condition, liquidity, results of operations or future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to:

Risks Related to Our Operations

key customers;
availability and costs of manufacturing inputs or sourced products;
Worthington Armstrong Venture (“WAVE”), our joint venture with Worthington Industries, Inc;
labor;
costs savings and productivity initiatives;
sustainability;

Risks Related to Our Strategy

digitalization initiatives and new technology;
strategic transactions;

Risks Related to Financial Matters

negative tax consequences;
our indebtedness;
our liquidity;
covenants in our debt agreements;
defined benefit plan obligations;
the tax consequences of the separation of our flooring business from our ceilings business;

Risks Related to Legal and Regulatory Matters

environmental matters;
litigation;
claims;
intellectual property rights;
international operations;

Risks Related to General Economic and Other Factors

economic conditions;
construction activity;
competition;
customer consolidation;
information technology disruptions and cybersecurity breaches;
geographic concentration;
dividend payments;

3


 

public health epidemics or pandemics (like COVID-19); and
other risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), press releases and other communications, including those set forth under “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2021, and in the documents incorporated by reference herein and therein.

Such forward-looking statements speak only as of the date they are made. We expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

4


 

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Armstrong World Industries, Inc., and Subsidiaries

Condensed Consolidated Statements of Earnings and Comprehensive Income

(amounts in millions, except per share data)

Unaudited

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

Net sales

 

$

282.6

 

 

$

251.9

 

Cost of goods sold

 

 

180.4

 

 

 

164.4

 

Gross profit

 

 

102.2

 

 

 

87.5

 

Selling, general and administrative expenses

 

 

57.1

 

 

 

54.2

 

Loss related to change in fair value of contingent consideration

 

 

0.1

 

 

 

0.2

 

Equity (earnings) from joint venture

 

 

(18.2

)

 

 

(21.0

)

Operating income

 

 

63.2

 

 

 

54.1

 

Interest expense

 

 

5.1

 

 

 

5.7

 

Other non-operating (income), net

 

 

(1.3

)

 

 

(1.3

)

Earnings from continuing operations before income taxes

 

 

59.4

 

 

 

49.7

 

Income tax expense

 

 

15.0

 

 

 

12.2

 

Earnings from continuing operations

 

 

44.4

 

 

 

37.5

 

Loss from disposal of discontinued businesses, net of tax expense of $- and $1.7

 

 

-

 

 

 

(2.1

)

Net loss from discontinued operations

 

 

-

 

 

 

(2.1

)

Net earnings

 

$

44.4

 

 

$

35.4

 

Other comprehensive income, net of tax:

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

0.7

 

 

 

0.6

 

Derivative gain, net

 

 

10.6

 

 

 

3.8

 

Pension and postretirement adjustments

 

 

0.6

 

 

 

0.2

 

Total other comprehensive income

 

 

11.9

 

 

 

4.6

 

Total comprehensive income

 

$

56.3

 

 

$

40.0

 

Earnings per share of common stock, continuing operations:

 

 

 

 

 

 

Basic

 

$

0.94

 

 

$

0.78

 

Diluted

 

$

0.94

 

 

$

0.78

 

Loss per share of common stock, discontinued operations:

 

 

 

 

 

 

Basic

 

$

-

 

 

$

(0.04

)

Diluted

 

$

-

 

 

$

(0.04

)

Net earnings per share of common stock:

 

 

 

 

 

 

Basic

 

$

0.94

 

 

$

0.74

 

Diluted

 

$

0.94

 

 

$

0.74

 

Average number of common shares outstanding:

 

 

 

 

 

 

Basic

 

 

47.1

 

 

 

47.8

 

Diluted

 

 

47.2

 

 

 

48.0

 

 

See accompanying notes to Condensed Consolidated Financial Statements beginning on page 9.

 

 

5


 

Armstrong World Industries, Inc., and Subsidiaries

Condensed Consolidated Balance Sheets

(amounts in millions, except share and per share data)

 

 

 

Unaudited

 

 

 

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

76.1

 

 

$

98.1

 

Accounts and notes receivable, net

 

 

114.1

 

 

 

109.1

 

Inventories, net

 

 

103.9

 

 

 

90.2

 

Income taxes receivable

 

 

0.4

 

 

 

1.4

 

Other current assets

 

 

23.6

 

 

 

23.1

 

Total current assets

 

 

318.1

 

 

 

321.9

 

Property, plant, and equipment, less accumulated depreciation and amortization of
   $
504.7 and $494.0, respectively

 

 

539.2

 

 

 

542.8

 

Operating lease assets

 

 

21.6

 

 

 

21.0

 

Finance lease assets

 

 

17.8

 

 

 

18.4

 

Prepaid pension costs

 

 

110.3

 

 

 

109.0

 

Investment in joint venture

 

 

57.5

 

 

 

50.0

 

Goodwill

 

 

167.1

 

 

 

167.0

 

Intangible assets, net

 

 

416.9

 

 

 

421.4

 

Income taxes receivable

 

 

-

 

 

 

0.6

 

Other non-current assets

 

 

59.6

 

 

 

57.9

 

Total assets

 

$

1,708.1

 

 

$

1,710.0

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Current installments of long-term debt

 

 

25.0

 

 

 

25.0

 

Accounts payable and accrued expenses

 

 

145.4

 

 

 

174.9

 

Operating lease liabilities

 

 

6.1

 

 

 

5.6

 

Finance lease liabilities

 

 

2.3

 

 

 

2.2

 

Income taxes payable

 

 

14.0

 

 

 

1.9

 

Total current liabilities

 

 

192.8

 

 

 

209.6

 

Long-term debt, less current installments

 

 

615.3

 

 

 

606.4

 

Operating lease liabilities

 

 

15.7

 

 

 

15.6

 

Finance lease liabilities

 

 

16.2

 

 

 

16.8

 

Postretirement benefit liabilities

 

 

70.7

 

 

 

71.1

 

Pension benefit liabilities

 

 

36.4

 

 

 

36.9

 

Other long-term liabilities

 

 

32.0

 

 

 

46.7

 

Income taxes payable

 

 

19.6

 

 

 

20.3

 

Deferred income taxes

 

 

171.8

 

 

 

166.9

 

Total non-current liabilities

 

 

977.7

 

 

 

980.7

 

Shareholders' equity:

 

 

 

 

 

 

Common stock, $0.01 par value per share, 200 million shares authorized, 62,792,506
   shares issued and
47,018,645 shares outstanding as of March 31, 2022 and
   
62,775,155 shares issued and 47,302,299 shares outstanding as of December 31, 2021

 

 

0.6

 

 

 

0.6

 

Capital in excess of par value

 

 

563.9

 

 

 

561.3

 

Retained earnings

 

 

1,044.8

 

 

 

1,011.4

 

Treasury stock, at cost, 15,773,861 shares as of March 31, 2022 and 15,472,856 
   shares as of December 31, 2021

 

 

(974.0

)

 

 

(944.0

)

Accumulated other comprehensive loss

 

 

(97.7

)

 

 

(109.6

)

Total shareholders' equity

 

 

537.6

 

 

 

519.7

 

Total liabilities and shareholders' equity

 

$

1,708.1

 

 

$

1,710.0

 

 

See accompanying notes to Condensed Consolidated Financial Statements beginning on page 9.

6


 

Armstrong World Industries, Inc., and Subsidiaries

Condensed Consolidated Statements of Shareholders’ Equity

(amounts in millions, except share data)

Unaudited

 

 

 

Three Months Ended March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Retained

 

 

Treasury Stock

 

 

Comprehensive

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Shares

 

 

Amount

 

 

(Loss)

 

 

Total

 

December 31, 2021

 

 

47,302,299

 

 

$

0.6

 

 

$

561.3

 

 

$

1,011.4

 

 

 

15,472,856

 

 

$

(944.0

)

 

$

(109.6

)

 

$

519.7

 

Stock issuance, net

 

 

17,351

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Cash dividends - $0.231 per common share

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11.0

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11.0

)

Share-based employee compensation

 

 

-

 

 

 

-

 

 

 

2.6

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2.6

 

Net earnings

 

 

-

 

 

 

-

 

 

 

-

 

 

 

44.4

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

44.4

 

Other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

11.9

 

 

 

11.9

 

Acquisition of treasury stock

 

 

(301,005

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

301,005

 

 

 

(30.0

)

 

 

-

 

 

 

(30.0

)

March 31, 2022

 

 

47,018,645

 

 

$

0.6

 

 

$

563.9

 

 

$

1,044.8

 

 

 

15,773,861

 

 

$

(974.0

)

 

$

(97.7

)

 

$

537.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Retained

 

 

Treasury Stock

 

 

Comprehensive

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Shares

 

 

Amount

 

 

(Loss)

 

 

Total

 

December 31, 2020

 

 

47,913,821

 

 

$

0.6

 

 

$

553.7

 

 

$

869.8

 

 

 

14,685,510

 

 

$

(863.9

)

 

$

(109.3

)

 

$

450.9

 

Stock issuance, net

 

 

40,278

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Cash dividends - $0.21 per common share

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(10.2

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(10.2

)

Share-based employee compensation

 

 

-

 

 

 

-

 

 

 

2.9

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2.9

 

Net earnings

 

 

-

 

 

 

-

 

 

 

-

 

 

 

35.4

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

35.4

 

Other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4.6

 

 

 

4.6

 

Acquisition of treasury stock

 

 

(125,635

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

125,635

 

 

 

(10.0

)

 

 

-

 

 

 

(10.0

)

March 31, 2021

 

 

47,828,464

 

 

$

0.6

 

 

$

556.6

 

 

$

895.0

 

 

 

14,811,145

 

 

$

(873.9

)

 

$

(104.7

)

 

$

473.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to Condensed Consolidated Financial Statements beginning on page 9.

7


 

Armstrong World Industries, Inc., and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(amounts in millions)

Unaudited

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

Net earnings

 

$

44.4

 

 

$

35.4

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

Depreciation and amortization

 

 

21.2

 

 

 

25.6

 

Deferred income taxes

 

 

1.1

 

 

 

1.2

 

Share-based compensation

 

 

2.9

 

 

 

2.3

 

Loss on disposal of discontinued operations

 

 

-

 

 

 

0.4

 

Equity earnings from joint venture

 

 

(18.2

)

 

 

(21.0

)

U.S. pension (credit)

 

 

(0.2

)

 

 

-

 

Loss from change in fair value of contingent consideration

 

 

0.1

 

 

 

0.2

 

Payments of contingent consideration in excess of acquisition-date fair value

 

 

(1.9

)

 

 

-

 

Other non-cash adjustments, net

 

 

0.2

 

 

 

0.2

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Receivables

 

 

(13.1

)

 

 

(12.9

)

Inventories

 

 

(13.6

)

 

 

(2.1

)

Accounts payable and accrued expenses

 

 

(17.5

)

 

 

(9.2

)

Income taxes receivable and payable, net

 

 

13.0

 

 

 

5.5

 

Other assets and liabilities

 

 

(1.7

)

 

 

(6.0

)

Net cash provided by operating activities

 

 

16.7

 

 

 

19.6

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(12.0

)

 

 

(13.2

)

Return of investment from joint venture

 

 

12.2

 

 

 

16.5

 

Payments to Knauf upon disposal of discontinued operations

 

 

-

 

 

 

(11.8

)

Other investing activities

 

 

-

 

 

 

(0.3

)

Net cash provided by (used for) investing activities

 

 

0.2

 

 

 

(8.8

)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from revolving credit facility

 

 

25.0

 

 

 

50.0

 

Payments of revolving credit facility

 

 

(10.0

)

 

 

(50.0

)

Payments of long-term debt

 

 

(6.2

)

 

 

(6.3

)

Dividends paid

 

 

(10.9

)

 

 

(10.1

)

Proceeds from share-based compensation plans, net of tax

 

 

0.2

 

 

 

0.7

 

Payments for finance leases

 

 

(0.6

)

 

 

(0.5

)

Payments of acquisition-related contingent consideration

 

 

(6.7

)

 

 

-

 

Payments for treasury stock acquired

 

 

(30.0

)

 

 

(10.0

)

Net cash (used for) financing activities

 

 

(39.2

)

 

 

(26.2

)

Effect of exchange rate changes on cash and cash equivalents

 

 

0.3

 

 

 

0.1

 

Net (decrease) in cash and cash equivalents

 

 

(22.0

)

 

 

(15.3

)

Cash and cash equivalents at beginning of year

 

 

98.1

 

 

 

136.9

 

Cash and cash equivalents at end of period

 

$

76.1

 

 

$

121.6

 

Supplemental Cash Flow Disclosures:

 

 

 

 

 

 

Interest paid

 

$

4.9

 

 

$

5.7

 

Income tax payments, net

 

 

0.9

 

 

 

7.2

 

Amounts in accounts payable for capital expenditures

 

 

0.3

 

 

 

0.7

 

See accompanying notes to Condensed Consolidated Financial Statements beginning on page 9.

 

8


Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

 

NOTE 1. BUSINESS AND BASIS OF PRESENTATION

Armstrong World Industries, Inc. (“AWI”) is a Pennsylvania corporation incorporated in 1891. When we refer to “AWI,” the “Company,” “we,” “our” or “us” in these notes, we are referring to AWI and its subsidiaries.

Except as disclosed in this note, the accounting policies used in preparing the Condensed Consolidated Financial Statements in this Form 10-Q are the same as those used in preparing the Consolidated Financial Statements for the year ended December 31, 2021. These statements should therefore be read in conjunction with the Consolidated Financial Statements and notes that are included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021. In the opinion of management, all adjustments of a normal recurring nature have been included to provide a fair statement of the results for the reporting periods presented. Operating results for the first quarter of 2022 and 2021 included in this report are unaudited. Quarterly results are not necessarily indicative of annual earnings, primarily due to the different level of sales in each quarter of the year and the possibility of changes in general economic conditions.

These Condensed Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The statements include management estimates and judgments, where appropriate. Management utilizes estimates to record many items, including certain asset values, contingent purchase price liabilities, allowances for bad debts, inventory obsolescence and lower of cost and net realizable value charges, warranty reserves, workers’ compensation, general liability and environmental claims, and income taxes. When preparing an estimate, management determines the amount based upon the consideration of relevant information and may confer with outside parties, including external counsel. Actual results may differ from these estimates.

Certain prior year amounts have been reclassified in the Condensed Consolidated Financial Statements to conform to the 2022 presentation.

COVID-19 Considerations

The COVID-19 pandemic has created significant volatility and economic disruption and the impact on our future consolidated results of operations is uncertain. The extent to which COVID-19 impacts our employees, operations, customers, suppliers and financial results depends on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the pandemic (and whether there is a resurgence or multiple resurgences in the future, including the impact of new variants); government actions taken in response to the pandemic, including required shutdowns, vaccine or testing mandates; the availability, acceptance, distribution and continued effectiveness of vaccines; the impact on construction activity; supply chain disruptions; rising inflation; labor shortages; the effect on our customers demand for our ceiling and wall systems; sustained remote or hybrid work models; our ability to manufacture and sell our products; and the ability of our customers to pay for our products. While many of our products support life sustaining activities and essential construction, we, and certain of our customers or suppliers, may be impacted by state actions, orders and policies regarding the COVID-19 pandemic, including temporary closures of non-life sustaining businesses, shelter-in-place orders, and travel, social distancing and quarantine policies, the implementation and enforcement of which vary by individual U.S. states and by individual countries in the Americas. We did not record any asset impairments, inventory charges or material bad debt reserves related to COVID-19 during the first quarter of 2022 and 2021 but future events may require such charges, which could have a material adverse effect on our financial condition, liquidity or results of operations.

NOTE 2. SEGMENT RESULTS

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

Net sales

 

 

 

 

 

 

Mineral Fiber

 

$

203.2

 

 

$

188.7

 

Architectural Specialties

 

 

79.4

 

 

 

63.2

 

Total net sales

 

$

282.6

 

 

$

251.9

 

 

9


Armstrong World Industries, Inc., and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(dollar amounts in millions, except share data)

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

Segment operating income (loss)

 

 

 

 

 

 

Mineral Fiber

 

$

57.6

 

 

$

60.6

 

Architectural Specialties

 

 

6.5

 

 

 

(4.9

)

Unallocated Corporate

 

 

(0.9

)

 

 

(1.6

)

Total consolidated operating income

 

$

63.2

 

 

$

54.1

 

 

The Architectural Specialties operating loss for the three months ended March 31, 2021 was driven by intangible asset amortization and other acquisition-related expenses related to our acquisitions of TURF Design, Inc. ("Turf") in July 2020, Moz Designs, Inc. ("Moz") in August 2020, and Arktura LLC ("Arktura") in December 2020.

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

Total consolidated operating income

 

$

63.2

 

 

$

54.1

 

Interest expense

 

 

5.1

 

 

 

5.7

 

Other non-operating (income), net

 

 

(1.3

)

 

 

(1.3

)

Earnings from continuing operations before income taxes

 

$

59.4

 

 

$

49.7

 

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Segment assets

 

 

 

 

 

 

Mineral Fiber

 

$

1,142.7

 

 

$

1,133.9