Armstrong World (NYSE: AWI) reported Q4 EPS of $0.72, $0.05 better than the analyst estimate of $0.67. Revenue for the quarter came in at $238.7 million versus the consensus estimate of $231 million.

• Net sales down 3% versus the prior year quarter
• Operating income down 29% versus the prior year quarter
• Adjusted EBITDA down 19% versus the prior year quarter
• Acquired Arktura, LLC during the quarter
• 2021 Guidance versus prior year: Net Sales of +10%-13% and EBITDA of +9%-13%

“2020 was an extraordinary year with social, economic and health crises all contributing to new and unusual operating challenges. I am extremely proud that Armstrong was able to advance our strategic initiatives in the face of those challenges, as our teams quickly adapted to new ways of working in order to continue the pursuit of our strategic priorities. We continued to invest in digital tools and initiatives, we launched over thirty new products, including many with a focus on Healthy Spaces, and we completed three acquisitions, including Arktura in December,” said Vic Grizzle, President and CEO of Armstrong. “Notwithstanding the impacts of COVID-19, we again demonstrated the strength of our business model, as we delivered over $200 million of free cash flow.”

Market Outlook and 2021 Guidance

“We continue to expect sequential improvements in our end markets as market conditions improve and vaccinations allow businesses to return to more normal operations,” said Brian MacNeal, CFO of Armstrong. “With our growth initiatives, including Healthy Spaces and kanopi, and the year-on-year benefit of our 2020 acquisitions, we expect to grow sales 10% to 13% in 2021. We expect this sales growth, together with continued productivity in our plants, to deliver adjusted EBITDA growth of 9% to 13%, and, after a step up in capital expenditures, to drive a free cash flow margin of 19%.”

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