Armstrong Flooring, Inc. reported financial results for the 3Q ended September 30, 2018. In the 3Q 2018, net sales increased 0.4% to $309.7 million as compared to $308.5 million in the 3Q 2017 due to higher Resilient segment net sales, as the company said in the press release received by Lesprom Network.
3Q 2018 net income was $7.9 million, or diluted earnings per share of $0.30, as compared to net loss of $18.7 million, or diluted loss per share of $0.70, in the prior year quarter. Prior year loss included pre-tax expenses of $23.7 million related to plant closures and $12.5 million due to intangible asset impairment.
Adjusted net income was $12.0 million, or adjusted diluted earnings per share of $0.46, as compared to an adjusted net income of $5.4 million, or adjusted diluted earnings per share of $0.20, in the prior year quarter.
3Q 2018 adjusted EBITDA was $29.9 million, as compared to $25.6 million in the prior year quarter. The increase in adjusted EBITDA was primarily driven by pricing gains in response to inflationary pressure, improved productivity, including the benefit of plant closures, and lower SG&A spending.
Don Maier, CEO, commented, “3Q net sales improved led by 7% growth in our Resilient segment, which more than offset lower Wood segment sales. We generated significant volume growth in Luxury Vinyl Tile (“LVT”) as well as higher selling prices across many product categories, reflecting our 2018 pricing actions in response to inflationary pressure. On this momentum, Adjusted EBITDA improved by 17% and margin by 140 basis points year-over-year, augmented by productivity gains and cost saving actions. These results are a reflection of continued execution of our strategic priorities. We are seeing more consistent progress in our top and bottom line performance. We plan to continue investing in growth categories, pricing in line with inflation and targeting cost efficiencies to further improve our margin and returns in 2018 and beyond.”
Armstrong Flooring, Inc. is North America’s largest producer of resilient and wood flooring products.