Armstrong World Industries Inc (AWI) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2020

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Armstrong World Industries Inc
Ticker: AWI CIK: 7431

Exhibit 99.1

Armstrong World Industries Reports

Fourth Quarter and Full Year 2020 Results

Key Highlights

•

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%

LANCASTER, Pa., February 23, 2021 -- Armstrong World Industries, Inc. (NYSE:AWI), a leader in the design, innovation and manufacture of commercial and residential ceiling, wall and suspension system solutions, today reported financial results for the fourth quarter and full year 2020.

Fourth Quarter Results from Continuing Operations

(Dollar amounts in millions except per-share data)	For the Three Months Ended December 31,
	2020		2019		Change
Net sales	$	238.7	$	246.9		(3.3	)%
Operating income	$	44.1	$	62.2		(29.1	)%
Earnings from continuing operations	$	34.8	$	51.5		(32.4	)%
Diluted earnings per share	$	0.72	$	1.04		(30.8	)%

Net sales decreased compared to the prior year quarter, driven by lower volume in both the Mineral Fiber and Architectural Specialties segments as a result of lower market demand due to COVID-19, as well as unfavorable Mineral Fiber Average Unit Value (“AUV”) primarily due to unfavorable channel mix and regional weakness in major metropolitan areas heavily impacted by COVID-19, partially offset by the positive sales impact of 2020 and 2019 acquisitions.

Operating income decreased from the prior year quarter, driven primarily by lower sales volume in the Mineral Fiber segment and higher SG&A costs related to growth initiatives, partially offset by improved manufacturing productivity.

The following information was filed by Armstrong World Industries Inc (AWI) on Tuesday, February 23, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Armstrong World Industries Inc's 10-K Annual Report:

Financial - Expense Highlight
Also impacting the decrease in interest expense was a lower spread on our borrowings and the write-off of unamortized debt financing cost in 2019, both of which were a result of the refinancing of our credit facility on September 30, 2019.

Financial - Cash Flow Highlight
Actual cash flows lower than the estimate could lead to significant future impairments.
M & A - Other Highlight
In connection with the 2020 Acquisitions, we incurred certain acquisition-related expenses in 2020, summarized as follows (dollar amounts in millions): Deferred revenue $ 0.7 Moz and Turf Net sales Change in fair value of contingent consideration 0.1 Moz and Turf SG&A expenses Deferred cash and restricted stock expenses 0.5 Arktura SG&A expenses Backlog 1.4 Moz and Turf SG&A expenses Inventory 0.1 Turf Cost of goods sold $ 2.8 The deferred revenue, backlog and inventory amounts reflect the post-acquisition expense associated with recording these liabilities and assets at fair value as part of purchase accounting.
Financial - Expense Highlight
The increase in cost of goods sold as a percent of net sales in comparison to 2019 was primarily due to unfavorable AUV and the impact of the 2020 Acquisitions and 2019 Acquisitions, partially offset by improved manufacturing productivity and cost reduction actions.
Revenue - Product Highlight
(dollar amounts in millions) Net sales decreased $1 million and were negatively impacted by a reduction in demand across almost all product categories and geographies as a result of COVID-19.
Financial - Income
Also contributing to the decrease...Read more
Other - Other
We cannot predict the occurrence...Read more
Financial - Income
Operating income decreased due to...Read more
Revenue - Product
The unfavorable AUV was partially...Read more
Revenue - Product
The unfavorable AUV was partially...Read more
Financial - Income
Operating income decreased primarily due...Read more
Other - Other
The actual gain on plan...Read more
Financial - Income
The increase in operating income...Read more
Financial - Income
Unallocated Corporate - includes assets,...Read more
Financial - Earnings
The difference between the actual...Read more
Other - Other
We manage two U.S. defined...Read more
M & A - Other
In addition, unanticipated events and...Read more
Financial - Income
Our ability to utilize deferred...Read more
Financial - Cash Flow
We retain lines of credit...Read more
Financial - Earnings
The royalty rate assumption represents...Read more
Financial - Income
Partially offsetting these decreases to...Read more
Financial - Debt
The favorable change of cash...Read more
Other - Other
As of December 31, 2020...Read more
Financial - Earnings
The senior credit facility includes...Read more
Revenue - Product
Historically, our sales tend to...Read more
Financial - Income
Absent any other changes, a...Read more
Revenue - Product
The principal assumptions used in...Read more
Other - Other
We have assumed a return...Read more
Revenue - Product
Revenue growth rates, after-tax cash...Read more
Financial - Cash Flow
The principal assumptions utilized in...Read more
Other - Other
All new receivables under the...Read more
Financial - Debt
We did not record any...Read more
Financial - Expense
We provide for environmental remediation...Read more
Revenue - Product
As previously noted, decreases in...Read more
Revenue - Product
(dollar amounts in millions) Consolidated...Read more
Revenue - Product
(dollar amounts in millions) Net...Read more
Other - Other
As of December 31, 2020,...Read more
Revenue - Product
In comparison to the statutory...Read more
Financial - Shares
Our final share of investigation...Read more
Other - Other
The effective tax rate for...Read more
Revenue - Product
Net sales in 2020 increased...Read more
Revenue - Product
Revenues for our Architectural Specialties...Read more
Revenue - Product
In comparison to the statutory...Read more
Financial - Earnings
The increase was primarily due...Read more
Revenue - Product
The decreases in volumes were...Read more
Financial - Expense
The assumptions that have the...Read more
Other - Other
We have established valuation allowances...Read more
Revenue - Product
The gain related to the...Read more
Financial - Earnings
The principal assumptions used in...Read more
Revenue - Product
Mineral Fiber net sales decreased...Read more
Financial - Cash Flow
We conduct impairment tests for...Read more
Financial - Expense
The decrease in interest expense...Read more
Revenue - Product
We experienced less of a...Read more
Financial - Expense
The decrease in SG&A expenses...Read more
Other - Other
Impairments of Long-Lived Tangible, Intangible...Read more
Other - Other
We conduct our annual impairment...Read more
Financial - Expense
The increase in expense was...Read more
Other - Other
In an effort to operate...Read more
Other - Other
Such adjustments could be material...Read more
Financial - Expense
We continue to evaluate reductions...Read more
Other - Other
Over the 10-year period ended...Read more
M & A - Other
Adjustments to the fair value...Read more
Financial - Income
A one-quarter percentage point increase...Read more
Other - Other
Methodologies used for valuing our...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Consolidated Statements Of Operations And Comprehensive Income
Consolidated Statements Of Earnings And Comprehensive Income (Parenthetical)
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statements Of Shareholders' Equity
Consolidated Statements Of Shareholders' Equity (Parenthetical)
Consolidated Statements Of Cash Flows
Business
Summary Of Significant Accounting Policies
Nature Of Operations
Revenue
Acquisitions
Discontinued Operations
Accounts And Notes Receivable
Inventories
Other Current Assets
Property, Plant And Equipment
Equity Investments
Leases
Goodwill And Intangible Assets
Other Non-Current Assets
Accounts Payable And Accrued Expenses
Income Taxes
Debt
Pension And Other Benefit Programs
Financial Instruments And Contingent Consideration
Derivative Financial Instruments
Other Long-Term Liabilities
Share-Based Compensation Plans
Employee Costs
Shareholders' Equity
Supplemental Financial Information
Related Parties
Litigation And Related Matters
Earnings Per Share
Schedule Ii
Summary Of Significant Accounting Policies (Policies)
Nature Of Operations (Tables)
Revenue (Tables)
Acquisitions (Tables)
Discontinued Operations (Tables)
Accounts And Notes Receivable (Tables)
Inventories (Tables)
Other Current Assets (Tables)
Property, Plant And Equipment (Tables)
Equity Investments (Tables)
Leases (Tables)
Goodwill And Intangible Assets (Tables)
Other Non-Current Assets (Tables)
Accounts Payable And Accrued Expenses (Tables)
Income Taxes (Tables)
Debt (Tables)
Pension And Other Benefit Programs (Tables)
Financial Instruments And Contingent Consideration (Tables)
Derivative Financial Instruments (Tables)
Other Long-Term Liabilities (Tables)
Share-Based Compensation Plans (Tables)
Employee Costs (Tables)
Shareholders' Equity (Tables)
Supplemental Financial Information (Tables)
Earnings Per Share (Tables)
Business (Narrative) (Details)
Summary Of Significant Accounting Policies (Narrative) (Details)
Nature Of Operations (Narrative) (Details)
Nature Of Operations (Schedule Of Net Sales To External Customers) (Details)
Nature Of Operations (Reconciliation Of Total Consolidated Operating Income To Earnings Before Income Taxes) (Details)
Nature Of Operations (Schedule Of Sales Allocated To Geographic Area) (Details)
Nature Of Operations (Schedule Of Property, Plant And Equipment Allocated To Geographic Area) (Details)
Revenue (Schedule Of Net Sales By Major Customer Group Within Each Segment) (Details)
Acquisitions (Narrative) (Details)
Acquisitions (Schedule Of Acquisitions) (Details)
Discontinued Operations (Narrative) (Details)
Discontinued Operations (Schedule Of Business Details And Line Items Comprising Discontinued Operations On Statements Of Earnings And Comprehensive Income) (Details)
Discontinued Operations (Summary Of Total Gains And Losses, Capital Expenditures And Operating Lease) (Details)
Discontinued Operations (Summary Of Total Gains And Losses, Capital Expenditures And Operating Lease) (Parenthetical) (Details)
Accounts And Notes Receivable (Schedule Of Accounts And Notes Receivable) (Details)
Accounts And Notes Receivable (Narrative) (Details)
Inventories (Schedule Of Inventories) (Details)
Inventories (Narrative) (Details)
Inventories (Summary Of Inventory Not Accounted For Under Lifo) (Details)
Other Current Assets (Schedule Of Other Current Assets) (Details)
Property, Plant And Equipment (Schedule Of Property, Plant And Equipment) (Details)
Equity Investments (Narrative) (Details)
Equity Investments (Summary Of Investment In Joint Venture, Balance Sheet Data) (Details)
Equity Investments (Summary Of Investment In Joint Venture, Income Statement Data) (Details)
Equity Investment (Summary Of The Difference Between Carrying Amount And Underlying Equity Of Equity Method Investment) (Details)
Leases (Schedule Of Lease Costs) (Details)
Leases (Narrative) (Details)
Leases (Summary Of Supplemental Cash Flow Information Related To Leases) (Details)
Leases (Summary Of Supplemental Cash Flow Information Related To Leases) (Parenthetical) (Details)
Leases (Schedule Of Weighted Average Assumptions Used To Compute Rou Assets And Lease Liabilities) (Details)
Leases (Schedule Of Undiscounted Future Minimum Payments) (Details)
Goodwill And Intangible Assets (Narrative) (Details)
Goodwill And Intangible Assets (Schedule Of Goodwill And Intangible Assets) (Details)
Goodwill And Intangible Assets (Schedule Of Amortization Expense) (Details)
Goodwill And Intangible Assets (Schedule Of Expected Annual Amortization Expense) (Details)
Other Non-Current Assets (Details)
Accounts Payable And Accrued Expenses (Details)
Income Taxes (Narrative) (Details)
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details)
Income Taxes (Schedule Of Income Tax Expense (Benefit)) (Details)
Income Taxes (Schedule Of The Reconciliation To U.S. Statutory Tax Rate) (Details)
Income Taxes (Schedule Of The Reconciliation To U.S. Statutory Tax Rate) (Parenthetical) (Details)
Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details)
Income Taxes (Schedule Of Other Taxes) (Details)
Debt (Schedule Of Debt) (Details)
Debt (Narrative) (Details)
Debt (Scheduled Payments Of Long-Term Debt) (Details)
Debt (Schedule Of Letters Of Credit Facilities) (Details)
Pension And Other Benefit Programs (Narrative) (Details)
Pension And Other Benefit Programs (Schedule Of Net Funded Status) (Details)
Pension And Other Benefit Programs (Schedule Of Assumptions Used) (Details)
Pension And Other Benefit Programs (Schedule Of Benefit Obligations In Excess Of Assets) (Details)
Pension And Other Benefit Programs (Schedule Of Periodic Benefit (Credit) Costs For U.S. Defined Benefit Pension Plans) (Details)
Pension And Other Benefit Programs (Schedule Of Defined Asset Allocation) (Details)
Pension And Other Benefit Programs (Summary Of Fair Value Of Assets Plan) (Details)
Pension And Other Benefit Programs (Summary Of Assets Measured At Nav) (Details)
Pension And Other Benefit Programs (Schedule Of Periodic Benefit (Credit) Costs) (Details)
Pension And Other Benefit Programs (Schedule Of Amounts Recognized In Assets And Liabilities) (Details)
Pension And Other Benefit Programs (Schedule Of Amounts In Accumulated Other Comprehensive) (Details)
Pension And Other Benefit Programs (Schedule Of Expected Benefit Payments) (Details)
Financial Instruments And Contingent Consideration (Estimated Fair Value Of Financial Instruments) (Details)
Financial Instruments And Contingent Consideration (Summary Of Fair Value, Assets And Liabilities Measured On Recurring Basis) (Details)
Financial Instruments And Contingent Consideration (Schedule Of Weighted-Average Of Significant Unobservable Inputs) (Details)
Financial Instruments And Contingent Consideration (Schedule Of Changes In Fair Value Of The Acquisition Related Contingent Consideration Liability) (Details)
Derivative Financial Instruments (Narrative) (Details)
Derivative Financial Instruments (Summary Of Interest Rate Swaps) (Details)
Derivative Financial Instruments (Summary Of Fair Value Of Derivative Instruments On Consolidated Balance Sheet) (Details)
Derivative Financial Instruments (Summary Of Amount Of Gain (Loss) Recognized In Accumulated Other Comprehensive Income) (Details)
Other Long-Term Liabilities (Schedule Of Other Long-Term Liabilities) (Details)
Share-Based Compensation Plans (Narrative) (Details)
Share-Based Compensation Plans (Schedule Of Changes In Stock Options) (Details)
Share-Based Compensation Plans (Schedule Of Stock Option Exercises) (Details)
Share-Based Compensation Plans (Schedule Of Restricted Stock, Rsus, Performance Restricted Stock And Psus Activity) (Details)
Share-Based Compensation Plans (Schedule Of Weighted-Average Assumptions For Psus Measured At Fair Value) (Details)
Employee Costs (Schedule Of Employee Compensation) (Details)
Shareholders' Equity (Narrative) (Details)
Shareholders' Equity (Components Of Accumulated Other Comprehensive Income (Loss) (Details)
Shareholders' Equity (Schedule Of Other Comprehensive Income (Loss) (Details)
Shareholders' Equity (Schedule Of Accumulated Other Comprehensive Income Activity) (Details)
Shareholders' Equity (Schedule Of Accumulated Other Comprehensive (Loss) Activity) (Parenthetical) (Details)
Shareholders' Equity (Reclassification Out Of Accumulated Other Comprehensive Income) (Details)
Supplemental Financial Information (Details)
Related Parties (Narrative) (Details)
Litigation And Related Matters (Narrative) (Details)
Earnings Per Share (Reconciliation Of Net Earnings To Net Earnings Attributable To Common Shares Used In Basic And Diluted (Loss) Earnings Per Share Calculation) (Details)
Earnings Per Share (Reconciliation Of Basic Shares Outstanding To Diluted Shares Outstanding) (Details)
Earnings Per Share (Narrative) (Details)
Schedule Ii (Details)

Material Contracts, Statements, Certifications & more

Armstrong World Industries Inc provided additional information to their SEC Filing as exhibits

Ticker: AWI
CIK: 7431
Form Type: 10-K Annual Report
Accession Number: 0001564590-21-007297
Submitted to the SEC: Tue Feb 23 2021 7:36:41 AM EST
Accepted by the SEC: Tue Feb 23 2021
Period: Thursday, December 31, 2020
Industry: Plastics Products