4th Quarter & Full Year 2022 Earnings Presentation February 21, 2023 Safe Harbor Statement 2 Disclosures in this release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, those relating to future financial and operational results, expected savings from cost management initiatives, the performance of our WAVE(1) joint venture, market and broader economic conditions and guidance and the impacts of COVID-19 on our busine ...

Financial Data and Key Metrics Changes - In Q4 2022, net sales increased by 8% to $305 million, while adjusted EBITDA rose by 5% [7][18] - For the full year, net sales grew by 11% compared to 2021, and EBITDA improved by 4% [7][24] - Adjusted diluted earnings per share decreased by 1% to $1.08, primarily due to an increase in the effective tax rate [18] Business Line Data and Key Metrics Changes - The Architectural Specialties segment achieved 18% sales growth in Q4 and 20% for the full year, marking nine consecutive quarters of double-digit growth [8][23] - The Mineral Fiber segment saw a 4% increase in net sales in Q4, driven by a favorable average unit value (AUV) of 15%, but was offset by a 10% decline in volumes [20][22] - The Architectural Specialties segment delivered its fifth consecutive quarter of EBITDA margin expansion, increasing by 60 basis points year-over-year [23] Market Data and Key Metrics Changes - Demand in key markets showed notable strength in healthcare, life sciences, education, and transportation, while office activity lagged [15][16] - The company expects market weakness to continue in 2023, particularly in the office segment, which constitutes about 30% of its business [16][43] Company Strategy and Development Direction - The company is focusing on delivering sales and earnings growth despite challenging macroeconomic conditions, with guidance for 2023 indicating net sales growth of 2% to 6% and adjusted EBITDA growth of 3% to 9% [27] - Investments in initiatives like Canopy by Armstrong and ProjectWorks are expected to unlock new sources of demand and improve competitive positioning [32][35] - The company has initiated a headcount reduction and restructuring plan to achieve annual SG&A savings of about $6 million [28] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the market demand for 2022, which deteriorated due to geopolitical tensions and inflation [14][16] - The outlook for 2023 anticipates continued economic weakening, with expectations of mid-single-digit declines in Mineral Fiber volumes [27][30] Other Important Information - The company repurchased $20 million of shares in Q4 2022, totaling $165 million for the year, and has returned over $1 billion to shareholders since 2016 [26] - The company plans to continue its commitment to return value to shareholders through cash dividends and share repurchases [36] Q&A Session Summary Question: Pricing in the Mineral Fiber segment - Management expects to return to a regular cadence of price increases, with an 8% increase already priced in for February [40][41] Question: Office market outlook - Management indicated that the office segment is expected to heal once economic uncertainty clears, as renovation work remains necessary [43][44] Question: Guidance for end-user markets - Management anticipates softer market conditions across most verticals, with standout performance expected in transportation and education [48][49] Question: Project delays versus cancellations - Most projects are experiencing delays rather than cancellations, particularly in the tech sector [54] Question: SG&A outlook - Management indicated continued investments in SG&A for 2023, with a focus on balancing investments against market conditions [79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to _________ Commission File Number 1-2116 ARMSTRONG WORLD INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Pennsylvania (State or other jur ...

Armstrong World Industries, Inc. (NYSE:AWI) Q3 2022 Earnings Conference Call October 25, 2022 10:00 AM ET Company Participants Theresa Womble - Director, IR Vic Grizzle - President & CEO Chris Calzaretta - CFO Conference Call Participants Joe Ahlersmeyer - Deutsche Bank Keith Hughes - Truist Securities Brian Biros - Thompson Research Group Garik Shmois - Loop Capital Phil Ng - Jefferies Susan Maklari - Goldman Sachs Rafe Jadrosich - Bank of America John Lovallo - UBS Dan Oppenheim - Credit Suisse Stephen Ki ...

Financial Performance - Total consolidated net sales for Q3 2022 were $325.0 million, an increase of 11.2% from $292.2 million in Q3 2021[134]. - For the first nine months of 2022, total consolidated net sales reached $928.6 million, up 12.7% from $824.1 million in the same period of 2021[134]. - Increased sales volumes contributed $17 million to Q3 2022 revenue and $40 million for the first nine months compared to the same periods in 2021[125]. - Average unit value (AUV) improvements added approximately $16 million to Q3 2022 net sales and $64 million for the first nine months compared to 2021[126]. - Mineral Fiber segment net sales increased by $60 million year-over-year, while Architectural Specialties segment net sales rose by $44 million[136]. - Total segment net sales for the Mineral Fiber segment increased by 9.0% to $233.7 million in Q3 2022, and by 9.8% to $671.4 million for the first nine months of 2022[146]. Cost and Expenses - Cost of goods sold as a percentage of net sales was 63.8% in Q3 2022, compared to 62.1% in Q3 2021, driven by higher input cost inflation[137]. - SG&A expenses in Q3 2022 were $59.3 million, or 18.2% of net sales, down from $62.3 million, or 21.3% of net sales, in Q3 2021[138]. - SG&A expenses for the first nine months of 2022 were $177.9 million, or 19.2% of net sales, compared to $176.5 million, or 21.4% of net sales in the prior year[139]. Income and Earnings - Equity earnings from the WAVE joint venture were $22.2 million in Q3 2022, down from $23.4 million in Q3 2021, and $61.7 million for the first nine months of 2022, compared to $68.1 million in the same period in 2021[141]. - Interest expense increased to $7.0 million in Q3 2022 from $6.1 million in Q3 2021, and to $17.9 million for the first nine months of 2022 from $17.4 million in the same period in 2021[142]. - Income tax expense for the first nine months of 2022 was $43.2 million, down from $48.0 million in the same period in 2021, with an effective tax rate of 22.2% compared to 25.1%[144]. - Operating income for the Mineral Fiber segment was $70.8 million in Q3 2022, a 3.4% increase from $68.5 million in Q3 2021, while for the first nine months, it decreased by 0.7% to $199.8 million[146]. Cash Flow and Financing - Net cash provided by operating activities was $119.2 million for the first nine months of 2022, down from $137.9 million in the same period in 2021[152]. - Net cash used for financing activities was $137.6 million in the first nine months of 2022, compared to $175.1 million in the same period in 2021[153]. - As of September 30, 2022, total borrowings under the senior credit facility were $450.0 million under Term Loan A and $235.0 million under the revolving credit facility[155]. - The company had $86.8 million in cash and cash equivalents, with $73.0 million in the U.S. and $13.8 million in foreign jurisdictions[159]. - The company has $265.0 million available under its revolving credit facility, which, along with cash on hand, is expected to meet near-term liquidity needs[159]. Share Repurchase - During the three months ended September 30, 2022, the company repurchased 0.7 million shares at an average price of $86.11 per share, totaling $60.0 million[168]. - For the nine months ended September 30, 2022, the company repurchased 1.6 million shares for a total cost of $145.0 million, averaging $88.58 per share[168]. - Since the inception of the share repurchase program, the company has repurchased 12.1 million shares for a total cost of $831.2 million, averaging $68.45 per share[168]. - The company has a share repurchase program authorized for up to $1,200.0 million through December 31, 2023[167]. Operational Overview - The company operated 16 manufacturing plants as of September 30, 2022, with 14 in the U.S. and 2 in Canada[119]. - The impact of COVID-19 on future operations remains uncertain, with ongoing challenges related to construction delays and inflation[117]. - The company continues to monitor macroeconomic trends affecting the commercial construction market, including GDP and office vacancy rates[124]. Compliance and Controls - There have been no material changes to critical accounting estimates since the 2021 Annual Report[160]. - The company’s disclosure controls and procedures were evaluated as effective as of September 30, 2022[162]. - There have been no material changes in internal control over financial reporting during the fiscal quarter ended September 30, 2022[162]. - The company continues to monitor market risks as disclosed in its Annual Report for the year ended December 31, 2021[161].

Armstrong World Industries, Inc. (NYSE:AWI) Q2 2022 Earnings Conference Call July 26, 2022 10:00 AM ET CompanyParticipants Theresa Womble - Director of Investor Relations Vic Grizzle - President & Chief Executive Officer Brian MacNeal - Senior Vice President & Chief Financial Officer Chris Calzaretta - Incoming Chief Financial Officer Conference Call Participants Susan Maklari - Goldman Sachs Phil Ng - Jefferies Garik Shmois - Loop Capital Stephen Kim - Evercore ISI Rafe Jadrosich - Bank of America Keith Hu ...

Armstrong World Industries, Inc. (NYSE:AWI) Q1 2022 Earnings Conference Call April 26, 2022 10:00 AM ET Company Participants Theresa Womble – Director-Investor Relations Vic Grizzle – Chief Executive Officer Brian MacNeal – Chief Financial Officer Conference Call Participants Keith Hughes – Truist Philip Ng – Jefferies Kathryn Thompson – Thompson Research Garik Shmois – Loop Capital Susan Maklari – Goldman Sachs Adam Baumgarten – Zelman Stephen Kim – Evercore ISI John Lovallo – UBS Ken Zener – KeyBanc Dan O ...

Financial Performance - Net sales for the three months ended March 31, 2022, were $282.6 million, an increase of 12.8% compared to $251.9 million for the same period in 2021[19] - Gross profit for the three months ended March 31, 2022, was $102.2 million, representing a gross margin of 36.2%, up from $87.5 million and a margin of 34.7% in the prior year[19] - Operating income increased to $63.2 million for the three months ended March 31, 2022, compared to $54.1 million in the same period of 2021, reflecting a growth of 16.8%[19] - Net earnings for the three months ended March 31, 2022, were $44.4 million, compared to $35.4 million in the same period of 2021, marking a 25.4% increase[19] - Earnings per share (EPS) for continuing operations was $0.94 for the three months ended March 31, 2022, compared to $0.78 for the same period in 2021, an increase of 20.5%[19] Assets and Liabilities - Total assets as of March 31, 2022, were $1,708.1 million, slightly down from $1,710.0 million as of December 31, 2021[22] - Total liabilities decreased to $1,170.5 million as of March 31, 2022, from $1,179.3 million as of December 31, 2021[22] - Shareholders' equity increased to $537.6 million as of March 31, 2022, compared to $519.7 million as of December 31, 2021[22] - The company reported a decrease in cash and cash equivalents to $76.1 million as of March 31, 2022, from $98.1 million as of December 31, 2021[22] Segment Performance - The Mineral Fiber segment reported operating income of $57.6 million for the first quarter of 2022, compared to $60.6 million in the same period of 2021, indicating a decrease of 4.9%[37] - The Architectural Specialties segment achieved an operating income of $6.5 million in Q1 2022, a significant improvement from an operating loss of $4.9 million in Q1 2021[37] - Total net sales for the Mineral Fiber segment reached $203.2 million in Q1 2022, up from $188.7 million in Q1 2021, indicating a 7.9% increase[43] - Architectural Specialties segment net sales increased to $79.4 million in Q1 2022 from $63.2 million in Q1 2021, marking a 25.6% rise[43] Cash Flow and Dividends - Cash and cash equivalents at the end of the first quarter of 2022 were $76.1 million, down from $121.6 million at the end of Q1 2021, marking a decrease of 37.4%[27] - The company paid cash dividends of $10.9 million during the first quarter of 2022, compared to $10.1 million in the same period of 2021[27] - Net cash provided by operating activities for Q1 2022 was $16.7 million, a decrease from $19.6 million in Q1 2021[27] Share Repurchase and Stock - The company acquired treasury stock amounting to $30.0 million in the first quarter of 2022, compared to $10.0 million in the same period of 2021[27] - The company repurchased 0.3 million shares for a total cost of $30.0 million during the three months ended March 31, 2022, with an average price of $99.67 per share[81] - As of March 31, 2022, the company had $483.8 million remaining under its share repurchase authorization of up to $1,200.0 million[80] - Since the inception of the share repurchase program, the company has repurchased 10.8 million shares for a total cost of $716.2 million[81] Debt and Financing - The company's long-term debt includes a $1,000.0 million variable rate senior credit facility, with a Term Loan A principal balance of $462.5 million as of March 31, 2022[56] - Borrowings under the revolving credit facility were $180.0 million as of March 31, 2022, compared to $165.0 million as of December 31, 2021[56] - As of March 31, 2022, total borrowings under the senior credit facility were $642.5 million, with $462.5 million under Term Loan A and $180.0 million under the revolving credit facility[143] Tax and Regulatory - The effective tax rate for Q1 2022 was 25.3%, up from 24.6% in Q1 2021, primarily due to a reduced benefit from share-based compensation[54] - The company did not record any asset impairments or material bad debt reserves related to COVID-19 during the first quarter of 2022[110] Environmental and Joint Ventures - The company has a 50% equity interest in the Worthington Armstrong Venture (WAVE), which produces suspension system products[108] - The joint venture WAVE reported net sales of $110.4 million for the three months ended March 31, 2022, compared to $98.6 million in the same period of 2021, a 12.1% increase[51] - The estimated future liability for environmental remediation remains uncertain, with costs potentially material to future quarterly or annual results[99] Operational Insights - The company operates 16 manufacturing plants across two countries, with 14 located in the U.S. and two in Canada[111] - The Architectural Specialties segment's revenues are primarily project-driven, leading to potentially volatile sales patterns due to project scheduling uncertainty[115] - The company continues to monitor macroeconomic trends affecting construction market activity, including GDP and office vacancy rates[117]