In the 2Q 2021, Armstrong Flooring's net sales increased 15.5% to $168.1 million from $145.6 million in the 2Q 2020, reflective of growth in each region in which the Company operates.
Operating loss in the quarter was $18.3 million versus a loss of $5.6 million in the 2Q 2020. The increased loss is reflective of higher costs of goods sold due to supply chain disruptions and inflation, which outpaced recent pricing initiatives and resulted in costs of goods sold of 87.4% of net sales in the 2Q 2021 compared to 83% in the same quarter of the prior year.
Net loss in the 2Q 2021 was $19.5 million, or diluted loss per share of $(0.89), as compared to a net loss of $6.3 million, or diluted loss per share of $(0.29), in the 2Q 2020.
Adjusted net loss was $17.3 million, or adjusted diluted loss per share of $(0.79), as compared to an adjusted net loss of $5.1 million, or adjusted diluted loss per share of $(0.23), in the prior year quarter.
2Q 2021 adjusted EBITDA was a loss of $3.5 million, as compared to adjusted EBITDA of $6.9 million in the prior year quarter. The decrease in adjusted EBITDA was primarily due to higher input costs, driven by the inflationary impacts of both raw materials and shipping costs, along with higher selling, general & administrative expenses in 2021, as well as lower operating expenses in the second quarter 2020, due to the COVID-19 related environment.
Michel Vermette, President and CEO, commented, "We continued to improve the business in the second quarter. We delivered 15.5% top-line growth compared to the second quarter 2020, and 12.9% top-line growth versus the 1Q 2021 led by strong Residential and Commercial recoveries, while facing a dynamic supply chain and inflationary environment. These headwinds are unlike any periods experienced in recent decades, and they significantly limited our ability to progress further against our long-term sales and EBITDA goals."
Armstrong Flooring, Inc. is a leader in the design and manufacture of innovative flooring solutions.
