Armstrong World (NYSE: AWI) reported Q1 EPS of $1.10, $0.01 worse than the analyst estimate of $1.11. Revenue for the quarter came in at $248.7 million versus the consensus estimate of $251.6 million.

Key Highlights

• Net sales of $248.7 million, up 3% versus the prior year quarter
• Operating income of $76.0 million, up 39% versus the prior year quarter
• $1 billion pension risk transfer results in $374.4 million non-cash charge to non-operating income
• Adjusted EBITDA and EPS grew 5% and 10%, respectively, versus the prior year quarter
• Withdrawing and suspending 2020 guidance due to COVID-19

“While first quarter results came in broadly as expected, our focus has shifted to the impacts of COVID-19 and the safety and well-being of all of our stakeholders,” said Vic Grizzle, President and CEO of AWI. “Safety has always been a non-negotiable operating principle at Armstrong, and while COVID-19 presents significant challenges, our teams are delivering. Our employees have worked methodically, collaboratively and with great agility to adapt our processes to enable social distancing and to operate within CDC guidelines across our entire network. Staying closely connected with customers and employees remains a top priority, and teams in every part of our business are using digital tools to manage this transition as seamlessly as possible. I’m particularly proud of how our manufacturing teams have been able to prioritize and serve a surge in orders that support life-sustaining healthcare facility expansions and re-purposing spaces for medical use. Armstrong is a strong company with a 160 year history, an experienced leadership team, a strong balance sheet, and a deep set of core values. Armstrong has weathered crises in the past and we will weather this one as well.”

Market Outlook and 2020 Guidance

“Given external uncertainty and the high levels of variability in our financial scenario modeling, we have withdrawn our financial guidance for 2020. We currently expect, however, to generate a free cash flow margin of 22-25% this fiscal year, consistent with the range of outcomes in our current 2020 models,” said Brian MacNeal, CFO of AWI. “With a strong balance sheet, ample liquidity, and no meaningful debt maturities until 2024, we are well positioned to navigate through the impact of COVID-19.”

For earnings history and earnings-related data on Armstrong World (AWI) click here.