Earnings Update: Armstrong Flooring, Inc. (NYSE: AFI)

Shares of Armstrong Flooring, Inc. (NYSE: AFI) fluctuated between $13.10 and $14.58 before finishing off the trading period lower with -1.14% at $14.31. The shares cited a trading volume 203,068 shares as compared to its average volume of 126,795 shares. Shares of the corporation has PE ratio of N/A. The company has 50-day of $15.18 and 200-day moving averages of $15.74. Additionally, stock has a Price/EPS Estimate Current Year ratio of -0.99.

Armstrong Flooring, Inc. (AFI) (North America’s largest producer of resilient and wood flooring products, recently stated financial results for the fourth quarter and full year ended December 31, 2017.

Don Maier, Chief Executive Officer, commented, “Improved fourth quarter 2017 Adjusted EBITDA and margin reflect our commitment to targeted productivity and cost control initiatives. For the full year 2017, manufacturing cost and SG&A efficiencies offset over two-thirds of the combined Adjusted EBITDA impact from legacy portfolio market pressures and higher than predictable input costs. While market challenges in resilient sheet and wood are unabating, we continue to make strong progress on our innovation-based growth objectives.”In the fourth quarter of 2017, net sales were $262.7M as contrast to $271.7M in the fourth quarter of 2016, primarily as a result of a decline in net sales in the Wood Flooring section.

Fourth quarter 2017 net loss was $20.7M, or a loss per diluted share of $0.80, as contrast to a net loss of $6.3M, or loss per diluted share of $0.23, in the previous year quarter. In the fourth quarter of 2017, the Company reduced its deferred tax assets by $12.5MBecause of recognition of valuation allowances and the impacts of U.S. tax reform. Adjusted net loss was $3.2M, or $0.12 adjusted loss per diluted share, as contrast to an adjusted net loss of $2.5M, or adjusted loss per diluted share of $0.09, in the previous year quarter.

Fourth quarter 2017 adjusted EBITDA was $5.7M, as contrast to $5.5M in the previous year quarter, with the raise primarily attributable to lower manufacturing costs and SG&A, including lower incentive-based employee compensation, partly offset by the impact of lower Wood Flooring section net sales and raised raw material input cost inflation.

Net sales were $158.2M as contrast to $158.3M in the previous year period. The slight decrease in net sales was primarily Because of lower volume in vinyl sheet and laminate products, combined with modest price pressure across most categories. This was mostly offset by higher sales of LVT, which continued to achieve double-digit growth, and VCT, helped by the recent acquisition of the VCT assets of Mannington Mills.

Operating loss was $7.0M in the quarter as contrast to an operating loss of $4.8M in the previous year quarter. Adjusted EBITDA was $5.8M as contrast to $5.3M in the previous year quarter, driven by improved manufacturing and SG&A costs, which over offset higher input costs. During 2017, the Company started the process of migrating a portion of its laminate business to a licensing model in place of the current sourcing model, which is predictable to generate more attractive EBITDA margins on lower stated sales for that category.

 I am Wayne Parsons and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

Email: wayne.parsons@nasdaqexpress.com

Wayne Parsons

 I am Wayne Parsons and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.Email: wayne.parsons@nasdaqexpress.com