Armstrong Flooring, Inc. reported financial results for the quarter ended June 30, 2016, marking its first quarter as a standalone company. On April 1, 2016, the Company began operating as an independent, publicly traded company following the completion of the Company’s spin-off from Armstrong World Industries, Inc. (“AWI”).
In the 2Q 2016, net sales decreased 0.9% to $323.7 million compared to $326.6 million in the 2Q 2015, reflecting lower net sales in the Pacific Rim region and flat net sales in North America.
Net income of $5.7 million, compares to $8.6 million in the prior year quarter. The decline primarily reflected the higher impact of new duty rates versus the prior period related to prior years’ imports of multilayered wood flooring from China and the impact of lower net sales. 2Q adjusted net income of $11.6 million compares to $11.1 million in the prior year quarter.
Adjusted EBITDA grew to $30.5 million compared to $28.3 million in the prior year quarter. Adjusted EBITDA as a percent of adjusted net sales expanded to 9.4% from 8.7% for the comparable prior year period, largely due to the margin benefit of lower input costs and lower promotional spending, partially offset by costs associated with the ramp-up of the LVT operation in Lancaster, PA.
Armstrong Flooring, Inc. is North America’s largest producer of resilient and wood flooring products.
