In the 3Q 2020, Armstrong Flooring's net sales decreased 5.4% to $156.6 million from $165.6 million in the 3Q 2019. The decrease in net sales was primarily attributable to lower volumes due to COVID-19 pandemic related business disruptions, including the postponement of certain commercial projects and slower activity at many independent customer retail locations, partly offset by increased activity in home centers and other residential channels.
The net loss in the 3Q 2020 was $11.7 million, or diluted loss per share of $0.53, as compared to net loss of $31.4 million, or diluted loss per share of $1.44, in the prior year quarter. Adjusted net loss was $11.4 million, or adjusted diluted loss per share of $0.52, as compared to adjusted net loss of $11.1 million, or adjusted diluted loss per share of $0.51, in the prior year quarter.
3Q 2020 adjusted EBITDA was $2.8 million, as compared to adjusted EBITDA of $8.8 million in the prior year quarter. The decrease in adjusted EBITDA was primarily attributable to lower net sales and to transition service agreement income in the prior year quarter which did not recur, as well as investments to support long-term strategic growth initiatives. These factors were partly offset by improved productivity and reduced input costs.
Michel Vermette, President and CEO, commented, “3Q results were largely in line with our expectations as we further invested in the multi-pronged transformation and modernization of our business. We were pleased to produce sequential top line improvement compared to the 2Q 2020 primarily due to stronger trends in residential end markets outpacing a slower recovery in commercial activity.”
Armstrong Flooring, Inc. is a leading manufacturer of resilient products across North America.
