Armstrong Flooring Reports Q4 Loss

Lancaster, PA, March 7, 2017—Armstrong Flooring reported net sales of $271.7 million for Q4 2016, a 3% decrease from Q4 2015’s $280.1 million.

For the last quarter of 2016, net loss was $6.3 million, or a loss of $0.23 per diluted share, compared to a loss of $16.6 million in Q4 2015, or a loss of $0.47 per diluted share.

For FY 2016, Armstrong reported net sales of $1,193.2 million, a 0.4% increase from FY 2015’s $1,188.7 million.

Net income of $9.2 million was reported for FY 2016, or $0.33 per diluted share, compared to net income of $29.6 million in FY 2015, or $1.07 per diluted share.

Don Maier, chief executive officer, commented: “We made significant progress in driving our innovation-based growth initiatives to produce an increase in annual sales for the first time in three years. However, we continue to encounter a declining trend in our legacy portfolio, and we believe that the sales trends experienced in 2016 will continue in 2017. As a result, we are even more committed to enhancing our mix of higher growth products, while taking actions to revitalize our legacy categories. While we expect these trends to persist, we remain confident in our ability to achieve a 10% Adjusted EBITDA margin target in the mid-term. Our announced organizational realignment will support that target as we seek to better align our structure with our customers. Furthermore, the $50 million share repurchase program announced today provides us with an additional avenue to build shareholder value, while still preserving a strong balance sheet with ample liquidity to invest in growth.”