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Armstrong Flooring (AFI) Misses Q1 EPS by 34c, Revenues Miss; Updates FY19 Adj. EBITDA Outlook, Authorizes New $50M Share Buyback

May 3, 2019 7:08 AM EDT
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Armstrong Flooring (NYSE: AFI) reported Q1 EPS of ($0.49), $0.34 worse than the analyst estimate of ($0.15). Revenue for the quarter came in at $141.9 million versus the consensus estimate of $162.89 million.

  • Net Sales of $141.7 Million
  • Net Loss of $16.7 Million and Adjusted Net Loss of $13.1 Million
  • Adjusted EBITDA Break-even
  • Announces New $50 Million Share Repurchase Authorization
  • Updates Outlook for Full Year 2019

Mr. McWilliams commented, “We acknowledge the headwinds affecting our first quarter results, but I am truly excited about the future of our business. We can capitalize on the opportunities before us by staying close and connected to our customer needs, focusing on execution and committing to innovation in all facets of our business. Our brand, products and most importantly the team we have assembled are well positioned to drive profitable growth in the business.”

Share Repurchase Authorization

The Company also announced today that its Board of Directors has increased its share repurchase program for an additional $50 million beyond the $41 million already repurchased under the prior share repurchase program, effective immediately. Repurchases under the new program may be made through open market, block, and privately negotiated transactions, including Rule 10b5-1 plans, at times and in such amounts as management deems appropriate, subject to market and business conditions, regulatory requirements and other factors. The authorization to repurchase additional shares under the increased repurchase program is aligned with the Company’s goal to return a portion of the net sale proceeds from its wood flooring business, which closed on December 31, 2018.

Doug Bingham, Chief Financial Officer, stated, “The Board’s decision to authorize a new $50 million share repurchase program reflects the strength of our balance sheet. We remain committed to driving value for our shareholders across multiple fronts, and an efficient use of cash and capital structure is an effective tool in achieving our goal.”

Full Year 2019 Outlook

For the full year 2019, the Company now expects adjusted EBITDA to be in the range of $50 million to $58 million, with growth heavily weighted to the second half as the overall market improves and elevated inventory levels in the channel are worked down. The Company also expects capital expenditures to be approximately $30 million for the full year 2019. The Company continues to expect to build cash from operations over the remaining quarters of 2019.

For earnings history and earnings-related data on Armstrong Flooring (AFI) click here.



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