Armstrong doubles its operating income in Q1

Boosted by the continuing ripple effects of its separation from Armstrong Flooring, Armstrong World Industries nearly doubled its operating income in the first quarter.

"We remain focused on changing the growth trajectory of our business over the long term through our product innovation, best-in-class service and new platforms in the Architectural Specialties category," said Vic Grizzle, CEO. "Our double digit sales growth this quarter reflects the initial success of those strategic initiatives, as well as improved market activity."

Operating income from continuing operations came in at $63.0 million, up 192% from the previous year. This was largely driven by lower separation costs, a decrease in the U.S. pension plan expense due to a longer amortization period as a result of the separation from Armstrong Flooring, Inc. -- plus the margin impact of higher volume and average unit value improvement.

Net sales also got a nice boost of 9.7% to $315.4 million, up from $287.4 million in the year-ago quarter.

Net earnings also made their way firmly into the black, reaching $30.4 million (as opposed to a loss of $9.9 million in the prior first quarter).                                      

"We are pleased by our strong start to the year, with robust sales growth and gross margin expansion demonstrating that our growth initiatives are gaining traction," said Brian MacNeal, CFO. "While the timing of certain manufacturing and SG&A expenses resulted in temporary adjusted EBITDA margin contraction in the quarter, we are reaffirming our full year guidance of 5%-7% revenue growth and 10%-14% adjusted EBITDA growth versus the prior year."