Armstrong Flooring, Inc. reported financial results for the quarter ended June 30, 2016, marking its first quarter as a standalone company.
“We continued to execute on our strategic priorities to deliver another quarter of EBITDA gains,” said Don Maier, CEO . “I am especially pleased with our continued growth in the Luxury Vinyl Tile (“LVT”) and Wood product categories. However, total revenues were challenged by industry price pressures and weakness in the Pacific Rim region. That said, our first half results for 2016 are on track to deliver on our medium-term goals.”
In the 2Q 2016, net sales decreased 0.9% to $323.7 million compared to $326.6 million in the 2Q 2015, reflecting lower net sales in the Pacific Rim region and flat net sales in North America.
Net income of $5.7 million, or $0.20 per diluted share, compares to $8.6 million, or $0.31 per diluted share, in the prior year quarter. The decline primarily reflected the higher impact of new duty rates versus the prior period related to prior years’ imports of multilayered wood flooring from China and the impact of lower net sales.
Adjusted EBITDA grew to $30.5 million compared to $28.3 million in the prior year quarter. Adjusted EBITDA as a percent of adjusted net sales expanded to 9.4% from 8.7% for the comparable prior year period, largely due to the margin benefit of lower input costs and lower promotional spending, partially offset by costs associated with the ramp-up of the LVT operation in Lancaster, PA.
Armstrong Flooring, Inc. is a global leader in the design and manufacture of innovative flooring solutions that inspire spaces where people live, work, learn, heal and play.
Source: Lesprom Network