1st Quarter 2023 Earnings Presentation April 25, 2023 Safe Harbor Statement Disclosures in this presentation 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 WAVE1 joint venture, market and broader economic conditions and guidance. Those statements provide our future expectations or fo ...

[Filing Information](index=1&type=section&id=Filing%20Information) [Form 10-Q Details](index=1&type=section&id=Form%2010-Q%20Details) This section details the company's Form 10-Q filing for Q1 2023, including its NYSE listing, filer status, and outstanding shares - Filing Type: Quarterly Report on Form 10-Q for the period ended March 31, 2023[1](index=1&type=chunk) - Registrant: Armstrong World Industries, Inc. (AWI), a Pennsylvania corporation[2](index=2&type=chunk) - Exchange: Common Stock ($0.01 par value per share) is traded on the New York Stock Exchange (Symbol: AWI)[1](index=1&type=chunk) - Filer Status: Large accelerated filer[3](index=3&type=chunk) - Outstanding Shares: **45,118,873 common shares** outstanding as of April 20, 2023[3](index=3&type=chunk) [Table of Contents](index=2&type=section&id=TABLE%20OF%20CONTENTS) [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements subject to various risks and uncertainties, which could cause actual results to differ materially from expectations - Forward-looking statements are based on management's current expectations and beliefs, but actual results may differ due to various factors[12](index=12&type=chunk) - Key risk categories include[12](index=12&type=chunk) - **Operational Risks:** Changes in customer relationships, availability/costs of inputs, WAVE joint venture contribution, labor, cost savings initiatives, ESG objectives[13](index=13&type=chunk) - **Strategic Risks:** Digitalization initiatives, product innovation, integration of strategic transactions[14](index=14&type=chunk) - **Financial Risks:** Tax consequences, indebtedness, liquidity, debt covenants, defined benefit plan obligations[14](index=14&type=chunk) - **Legal and Regulatory Risks:** Environmental liability, claims/litigation, intellectual property, international operations[14](index=14&type=chunk) - **General Economic and Other Factors:** Economic conditions, construction activity, market competition, customer consolidation, IT disruptions, cybersecurity, third-party dependence, geographic concentration, dividend/repurchase ability, public health epidemics[15](index=15&type=chunk) [PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Armstrong World Industries, Inc. and its subsidiaries for Q1 2023, including earnings, balance sheets, equity, cash flows, and notes [Condensed Consolidated Statements of Earnings and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20and%20Comprehensive%20Income) This section provides the company's unaudited condensed consolidated statements of earnings and comprehensive income for the three months ended March 31, 2023 and 2022 | Metric (in millions, except per share) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | $310.2 | $282.6 | | Gross profit | $112.1 | $102.2 | | Operating income | $70.2 | $63.2 | | Net earnings | $47.3 | $44.4 | | Basic EPS | $1.04 | $0.94 | | Diluted EPS | $1.04 | $0.94 | | Total comprehensive income | $45.2 | $56.3 | - Net sales increased by **$27.6 million (9.8%)** year-over-year[18](index=18&type=chunk) - Net earnings increased by **$2.9 million (6.5%)** year-over-year[18](index=18&type=chunk) - Total comprehensive income decreased significantly from **$56.3 million in Q1 2022 to $45.2 million in Q1 2023**, primarily due to derivative losses[18](index=18&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's unaudited condensed consolidated balance sheets as of March 31, 2023, and December 31, 2022 | Metric (in millions) | March 31, 2023 | December 31, 2022 | | :------------------------------- | :------------- | :---------------- | | Total assets | $1,687.9 | $1,687.2 | | Total current assets | $362.0 | $356.5 | | Cash and cash equivalents | $96.0 | $106.0 | | Total current liabilities | $166.3 | $182.7 | | Long-term debt | $660.6 | $651.1 | | Total shareholders' equity | $544.8 | $535.0 | - Total assets remained relatively stable, increasing slightly from **$1,687.2 million to $1,687.9 million**[20](index=20&type=chunk)[22](index=22&type=chunk) - Cash and cash equivalents decreased by **$10.0 million** from year-end 2022[20](index=20&type=chunk) - Total current liabilities decreased by **$16.4 million**, primarily due to a reduction in accounts payable and accrued expenses and acquisition-related contingent consideration[21](index=21&type=chunk)[56](index=56&type=chunk) - Total shareholders' equity increased by **$9.8 million**[22](index=22&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) This section presents the company's unaudited condensed consolidated statements of shareholders' equity for the three months ended March 31, 2023 and 2022 - Shareholders' equity increased from **$535.0 million** at December 31, 2022, to **$544.8 million** at March 31, 2023[24](index=24&type=chunk) - Key changes include net earnings of **$47.3 million**, share-based employee compensation of **$3.6 million**, offset by cash dividends of **$11.7 million** and acquisition of treasury stock of **$27.3 million**[24](index=24&type=chunk) - Accumulated other comprehensive loss increased from **$(100.1) million to $(102.2) million**[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2023 and 2022 | Cash Flow Activity (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash from operating activities | $26.2 | $16.7 | | Net cash from investing activities | $(1.5) | $0.2 | | Net cash from financing activities | $(34.7) | $(39.2) | | Net (decrease) in cash | $(10.0) | $(22.0) | | Cash and cash equivalents (end) | $96.0 | $76.1 | - Net cash provided by operating activities increased by **$9.5 million** year-over-year, primarily due to favorable working capital changes, notably in inventory[27](index=27&type=chunk)[136](index=136&type=chunk) - Net cash used in investing activities shifted from a **$0.2 million inflow in Q1 2022 to a $1.5 million outflow in Q1 2023**, driven by increased purchases of property, plant, and equipment[27](index=27&type=chunk)[136](index=136&type=chunk) - Net cash used for financing activities decreased by **$4.5 million**, mainly due to decreased payments on borrowings and fewer stock repurchases, partially offset by higher acquisition-related contingent consideration payments[27](index=27&type=chunk)[137](index=137&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, offering further context and breakdowns of various accounts and transactions [NOTE 1. BUSINESS AND BASIS OF PRESENTATION](index=9&type=section&id=NOTE%201.%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) This note outlines the company's identity, confirms the consistency of accounting policies with the prior annual report, and mentions the acquisition of GC Products, Inc. - AWI is a Pennsylvania corporation incorporated in 1891[30](index=30&type=chunk) - Accounting policies are consistent with the December 31, 2022, Form 10-K, with minor reclassifications for 2023 presentation[31](index=31&type=chunk)[32](index=32&type=chunk) - Acquisition: GC Products, Inc. (designer/manufacturer of glass-reinforced-gypsum, glass-reinforced-cement, molded ceiling, and specialty wall products) was acquired in November 2022 and is included in the Architectural Specialties segment[33](index=33&type=chunk) [NOTE 2. SEGMENT RESULTS](index=9&type=section&id=NOTE%202.%20SEGMENT%20RESULTS) This note provides a breakdown of net sales, operating income, and segment assets by the company's two product-based segments: Mineral Fiber and Architectural Specialties, along with Unallocated Corporate | Segment | Three Months Ended March 31, 2023 (Net Sales in millions) | Three Months Ended March 31, 2022 (Net Sales in millions) | | :---------------------- | :-------------------------------------------- | :-------------------------------------------- | | Mineral Fiber | $228.4 | $203.2 | | Architectural Specialties | $81.8 | $79.4 | | Total net sales | $310.2 | $282.6 | | Segment | Three Months Ended March 31, 2023 (Operating Income in millions) | Three Months Ended March 31, 2022 (Operating Income in millions) | | :---------------------- | :--------------------------------------------------- | :--------------------------------------------------- | | Mineral Fiber | $63.8 | $57.6 | | Architectural Specialties | $7.2 | $6.5 | | Unallocated Corporate | $(0.8) | $(0.9) | | Total operating income | $70.2 | $63.2 | | Segment | March 31, 2023 (Segment Assets in millions) | December 31, 2022 (Segment Assets in millions) | | :---------------------- | :------------------------------ | :--------------------------------- | | Mineral Fiber | $1,118.9 | $1,096.9 | | Architectural Specialties | $385.3 | $387.5 | | Unallocated Corporate | $183.7 | $202.8 | | Total assets | $1,687.9 | $1,687.2 | - Mineral Fiber net sales increased by **12.4%** and operating income increased by **10.8%** year-over-year[34](index=34&type=chunk)[35](index=35&type=chunk) - Architectural Specialties net sales increased by **3.0%** and operating income increased by **10.8%** year-over-year[34](index=34&type=chunk)[35](index=35&type=chunk) [NOTE 3. REVENUE](index=10&type=section&id=NOTE%203.%20REVENUE) This note disaggregates revenue by major customer channels within the Mineral Fiber and Architectural Specialties segments, providing insight into sales distribution - Revenue is disaggregated by product-based segments and major customer channels (Distributors, Home centers, Direct customers, Other) to reflect how economic factors affect revenue and cash flows[39](index=39&type=chunk) | Mineral Fiber Customer Channel | Three Months Ended March 31, 2023 (Net Sales in millions) | Three Months Ended March 31, 2022 (Net Sales in millions) | | :----------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Distributors | $159.8 | $143.5 | | Home centers | $31.1 | $28.1 | | Direct customers | $14.7 | $14.3 | | Other | $22.8 | $17.3 | | Total | $228.4 | $203.2 | | Architectural Specialties Customer Channel | Three Months Ended March 31, 2023 (Net Sales in millions) | Three Months Ended March 31, 2022 (Net Sales in millions) | | :--------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Distributors | $39.2 | $38.8 | | Direct customers | $42.0 | $39.4 | | Other | $0.6 | $1.2 | | Total | $81.8 | $79.4 | [NOTE 4. ACCOUNTS AND NOTES RECEIVABLE](index=11&type=section&id=NOTE%204.%20ACCOUNTS%20AND%20NOTES%20RECEIVABLE) This note details the composition of accounts and notes receivable, net, including customer and miscellaneous receivables, and the allowance for warranties, discounts, and losses | Receivable Type (in millions) | March 31, 2023 | December 31, 2022 | | :---------------------------------------- | :------------- | :---------------- | | Customer receivables | $118.7 | $107.4 | | Miscellaneous receivables | $6.9 | $8.2 | | Less allowance for warranties, discounts, and losses | $(3.7) | $(3.2) | | Accounts and notes receivable, net | $121.9 | $112.4 | - All outstanding Employee Retention Credit (ERC) receivables of **$4.8 million** were collected during the first quarter of 2023[46](index=46&type=chunk) [NOTE 5. INVENTORIES](index=11&type=section&id=NOTE%205.%20INVENTORIES) This note provides a breakdown of inventories, net, by finished goods, goods in process, raw materials and supplies, and LIFO reserves | Inventory Type (in millions) | March 31, 2023 | December 31, 2022 | | :--------------------------- | :------------- | :---------------- | | Finished goods | $59.8 | $60.9 | | Goods in process | $6.8 | $6.5 | | Raw materials and supplies | $69.4 | $63.0 | | Less LIFO reserves | $(22.6) | $(20.4) | | Total inventories, net | $113.4 | $110.0 | - Total inventories, net, increased by **$3.4 million** from December 31, 2022, to March 31, 2023[47](index=47&type=chunk) [NOTE 6. OTHER CURRENT ASSETS](index=11&type=section&id=NOTE%206.%20OTHER%20CURRENT%20ASSETS) This note details the components of other current assets, including prepaid expenses, fair value of derivative assets, assets held for sale, and other miscellaneous items | Other Current Assets (in millions) | March 31, 2023 | | :--------------------------------- | :------------- | | Prepaid expenses | $18.2 | | Fair value of derivative assets | $6.5 | | Assets held for sale | $4.6 | | Other | $1.1 | | Total other current assets | $30.4 | - Assets held for sale include the property, plant, and equipment of the idled Mineral Fiber plant in St. Helens, Oregon[48](index=48&type=chunk) [NOTE 7. EQUITY INVESTMENT](index=11&type=section&id=NOTE%207.%20EQUITY%20INVESTMENT) This note provides condensed financial data for WAVE, the 50% equity method joint venture with Worthington Industries, Inc., reflected within the Mineral Fiber segment - WAVE is a **50% equity interest joint venture** with Worthington Industries, Inc., accounted for using the equity method and reflected in the Mineral Fiber segment[49](index=49&type=chunk) | WAVE Financial Data (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | $109.5 | $110.4 | | Gross profit | $62.3 | $54.8 | | Net earnings | $43.8 | $38.2 | - WAVE's net earnings increased by **$5.6 million (14.7%)** year-over-year[50](index=50&type=chunk) [NOTE 8. LEASES](index=12&type=section&id=NOTE%208.%20LEASES) This note discloses a new operating lease for a manufacturing facility in the Architectural Specialties segment, which will commence in Q2 2023 - A new operating lease for an Architectural Specialties manufacturing facility, with an estimated **$13 million right-of-use asset** and corresponding lease liability, will be recognized in Q2 2023[53](index=53&type=chunk) [NOTE 9. GOODWILL AND INTANGIBLE ASSETS](index=12&type=section&id=NOTE%209.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) This note provides a detailed breakdown of amortizing and non-amortizing intangible assets, including their estimated useful lives and accumulated amortization, as well as goodwill | Intangible Asset Type (in millions) | Estimated Useful Life | March 31, 2023 (Gross Carrying Amount) | March 31, 2023 (Accumulated Amortization) | December 31, 2022 (Gross Carrying Amount) | December 31, 2022 (Accumulated Amortization) | | :---------------------------------- | :-------------------- | :------------------------------------- | :---------------------------------------- | :---------------------------------------- | :------------------------------------------- | | **Amortizing Intangible Assets:** | | | | | | | Customer relationships | 6-20 years | $182.1 | $144.4 | $182.1 | $142.0 | | Developed technology | 13-20 years | $94.1 | $83.6 | $93.8 | $83.3 | | Software | 7 years | $9.1 | $2.9 | $9.1 | $2.6 | | Trademarks and brand names | 3-10 years | $4.0 | $2.8 | $4.0 | $2.6 | | Non-compete agreements | 3-5 years | $5.8 | $2.9 | $5.8 | $2.6 | | Other | Various | $1.1 | $0.1 | $1.1 | $0.1 | | Total Amortizing Intangible Assets | | $296.2 | $236.7 | $295.9 | $233.2 | | **Non-Amortizing Intangible Assets:** | | | | | | | Trademarks and brand names | Indefinite | $345.1 | - | $345.0 | - | | Total Intangible Assets | | $641.3 | | $640.9 | | | Goodwill | Indefinite | $167.3 | - | $167.3 | - | | Amortization Expense (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Amortization expense | $3.5 | $4.8 | - Goodwill remained constant at **$167.3 million**[55](index=55&type=chunk) [NOTE 10. OTHER NON-CURRENT ASSETS](index=12&type=section&id=NOTE%2010.%20OTHER%20NON-CURRENT%20ASSETS) This note details the components of other non-current assets, including cash surrender value of company-owned life insurance policies, investment in employee deferred compensation plans, and fair value of derivative assets | Other Non-Current Assets (in millions) | March 31, 2023 | December 31, 2022 | | :------------------------------------- | :------------- | :---------------- | | Cash surrender value of COLI policies | $42.1 | $42.8 | | Investment in employee deferred comp. | $7.4 | $7.7 | | Fair value of derivative assets | $1.9 | $7.7 | | Other | $0.8 | $1.2 | | Total other non-current assets | $52.2 | $59.4 | - Total other non-current assets decreased by **$7.2 million** from December 31, 2022, to March 31, 2023, primarily due to a decrease in the fair value of derivative assets[55](index=55&type=chunk) [NOTE 11. ACCOUNTS PAYABLE AND ACCRUED EXPENSES](index=12&type=section&id=NOTE%2011.%20ACCOUNTS%20PAYABLE%20AND%20ACCRUED%20EXPENSES) This note provides a breakdown of accounts payable and accrued expenses, highlighting trade and other payables, employment costs, and acquisition-related contingent consideration | Accounts Payable & Accrued Expenses (in millions) | March 31, 2023 | December 31, 2022 | | :------------------------------------------------ | :------------- | :---------------- | | Payables, trade and other | $96.9 | $105.0 | | Employment costs | $11.9 | $20.0 | | Current portion of pension and postretirement | $9.9 | $9.9 | | Acquisition-related contingent consideration | $- | $15.2 | | Other | $18.6 | $22.4 | | Total accounts payable and accrued expenses | $137.3 | $172.5 | - Total accounts payable and accrued expenses decreased by **$35.2 million**, largely due to the payment of acquisition-related contingent consideration[56](index=56&type=chunk)[72](index=72&type=chunk) [NOTE 12. INCOME TAX EXPENSE](index=13&type=section&id=NOTE%2012.%20INCOME%20TAX%20EXPENSE) This note details the income tax expense and effective tax rate for the quarter, explaining the primary driver for the year-over-year change | Income Tax Metric (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------ | :-------------------------------- | :-------------------------------- | | Earnings before income taxes | $63.9 | $59.4 | | Income tax expense | $16.6 | $15.0 | | Effective tax rate | 26.0% | 25.3% | - The effective tax rate increased to **26.0% in Q1 2023 from 25.3% in Q1 2022**, primarily due to an increase in the valuation allowance for capital loss carryforwards[59](index=59&type=chunk) [NOTE 13. DEBT](index=13&type=section&id=NOTE%2013.%20DEBT) This note describes the company's long-term debt, consisting of a senior credit facility and a bi-lateral letter of credit facility, and provides details on outstanding borrowings and available credit - Long-term debt includes a **$950.0 million variable rate senior credit facility** ($500.0 million revolving credit, $450.0 million Term Loan A) and a **$25.0 million bi-lateral letter of credit facility**[61](index=61&type=chunk) | Debt Component (in millions) | March 31, 2023 (Outstanding) | December 31, 2022 (Outstanding) | | :--------------------------- | :--------------------------- | :------------------------------ | | Term Loan A | $450.0 | $450.0 | | Revolving credit facility | $220.0 | $205.0 | | Financing Arrangement (in millions) | Limit | March 31, 2023 (Used) | Available | | :---------------------------------- | :---- | :-------------------- | :-------- | | Bi-lateral facility | $25.0 | $8.1 | $16.9 | | Revolving credit facility | $150.0| $- | $150.0 | | Total | $175.0| $8.1 | $166.9 | [NOTE 14. PENSIONS AND OTHER BENEFIT PROGRAMS](index=13&type=section&id=NOTE%2014.%20PENSIONS%20AND%20OTHER%20BENEFIT%20PROGRAMS) This note details the components of net periodic benefit costs (credits) for U.S. defined benefit pension plans and retiree health and life insurance benefits | Net Periodic Benefit Costs (Credits) (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | | **U.S. defined benefit plans:** | | | | Net periodic pension cost | $- | $- | | **Retiree health and life insurance benefits:** | | | | Net periodic postretirement (credit) | $(0.8) | $(0.4) | - Service cost components are presented in cost of goods sold and SG&A expenses, while other components are in other non-operating income, net[65](index=65&type=chunk) [NOTE 15. FINANCIAL INSTRUMENTS AND CONTINGENT CONSIDERATION](index=14&type=section&id=NOTE%2015.%20FINANCIAL%20INSTRUMENTS%20AND%20CONTINGENT%20CONSIDERATION) This note provides fair value estimates for financial instruments and acquisition-related contingent consideration, explaining valuation methodologies and impact of changes | Financial Instrument (in millions) | March 31, 2023 (Carrying Amount) | March 31, 2023 (Estimated Fair Value) | December 31, 2022 (Carrying Amount) | December 31, 2022 (Estimated Fair Value) | | :--------------------------------- | :------------------------------- | :------------------------------------ | :---------------------------------- | :--------------------------------------- | | Total long-term debt | $(666.2) | $(645.5) | $(651.1) | $(645.3) | | Interest rate swap contracts | $8.4 | $8.4 | $11.4 | $11.4 | | Acquisition-related contingent consideration | $- | $- | $(15.2) | $(15.2) | - Fair value estimates for long-term debt are based on quotes from financial institutions, while interest rate swaps use quotes and internal models[67](index=67&type=chunk) - Acquisition-related contingent consideration for Turf was paid out in Q1 2023, resulting in a zero balance at period end[72](index=72&type=chunk) | Contingent Consideration (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------- | :-------------------------------- | :-------------------------------- | | Fair value at beginning of period | $15.2 | $12.8 | | Cash consideration paid | $(15.2) | $(8.6) | | Loss related to change in fair value | $- | $0.1 | | Fair value at end of period | $- | $4.3 | [NOTE 16. DERIVATIVE FINANCIAL INSTRUMENTS](index=15&type=section&id=NOTE%2016.%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) This note describes the company's use of interest rate derivatives to manage market risk, specifically hedging variable rate debt, and addresses counterparty risk and the transition from LIBOR to SOFR - AWI uses interest rate swaps as cash flow hedges to manage interest rate volatility on variable rate debt, not for speculative trading[73](index=73&type=chunk)[75](index=75&type=chunk) - Counterparty risk is managed by engaging only with investment-grade financial institutions and utilizing netting arrangements[74](index=74&type=chunk) - In March 2023, interest rate swaps were amended to change the hedged interest rate from LIBOR to SOFR, in accordance with ASU 2020-04[75](index=75&type=chunk) | Derivative Assets (in millions) | Balance Sheet Location | March 31, 2023 (Fair Value) | December 31, 2022 (Fair Value) | | :--------------------------------- | :--------------------------- | :-------------------------- | :----------------------------- | | Interest rate swap contracts | Other current assets | $6.5 | $3.7 | | Interest rate swap contracts | Other non-current assets | $1.9 | $7.7 | - As of March 31, 2023, **$8.8 million** of existing gains in Accumulated Other Comprehensive Income (AOCI) are expected to be recognized in net earnings over the next twelve months[80](index=80&type=chunk) [NOTE 17. SHAREHOLDERS' EQUITY](index=16&type=section&id=NOTE%2017.%20SHAREHOLDERS'%20EQUITY) This note details the company's common stock repurchase program, dividend declarations, and the components of accumulated other comprehensive (loss) - The Board approved a share repurchase program of up to **$1,200.0 million** through December 31, 2023, with **$321.8 million** remaining as of March 31, 2023[81](index=81&type=chunk) - During Q1 2023, AWI repurchased **0.4 million shares for $27.0 million** at an average price of **$73.51 per share**[82](index=82&type=chunk) - Quarterly dividends of **$0.254 per share** were declared in February and April 2023[84](index=84&type=chunk) | Accumulated Other Comprehensive (Loss) (in millions) | December 31, 2022 | March 31, 2023 | | :------------------------------------------------- | :---------------- | :------------- | | Foreign Currency Translation Adjustments | $0.5 | $0.4 | | Derivative (Loss) | $9.5 | $7.3 | | Pension and Postretirement Adjustments | $(110.1) | $(109.9) | | Total Accumulated Other Comprehensive (Loss) | $(100.1) | $(102.2) | - Total accumulated other comprehensive loss increased from **$(100.1) million to $(102.2) million**, primarily due to derivative losses[85](index=85&type=chunk) [NOTE 18. LITIGATION AND RELATED MATTERS](index=18&type=section&id=NOTE%2018.%20LITIGATION%20AND%20RELATED%20MATTERS) This note details the company's environmental liabilities and ongoing litigation, including remediation efforts at Superfund sites and the financial impact of these matters - AWI is involved in the investigation and remediation of environmental contamination at two domestically owned locations (Macon, GA, and Elizabeth City, NC) under CERCLA and state laws[88](index=88&type=chunk) - Settlement agreements with legacy insurance carriers between 2017-2021 totaled **$53.0 million**, recorded as reductions to cost of goods sold and SG&A expenses[90](index=90&type=chunk) - As of March 31, 2023, insurance recoveries in excess of cumulative expenses were **$3.4 million**, which will offset future expenses[90](index=90&type=chunk) - Total environmental liabilities recorded were **$0.5 million** as of March 31, 2023 and December 31, 2022, for probable liabilities with reasonable estimates[98](index=98&type=chunk) - The company does not expect the total future costs for environmental matters to have a material adverse effect on liquidity or financial condition, as payments may be made over many years[95](index=95&type=chunk)[97](index=97&type=chunk) [NOTE 19. NET EARNINGS PER SHARE](index=20&type=section&id=NOTE%2019.%20NET%20EARNINGS%20PER%20SHARE) This note provides a reconciliation of net earnings to net earnings attributable to common shares and basic to diluted shares outstanding for EPS calculations | EPS Calculation (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :---------------------------- | :-------------------------------- | :-------------------------------- | | Net earnings | $47.3 | $44.4 | | Net earnings attributable to common shares | $47.3 | $44.3 | | Shares Outstanding (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------- | :-------------------------------- | :-------------------------------- | | Basic shares outstanding | 45.4 | 47.1 | | Dilutive effect of common stock equivalents | 0.1 | 0.1 | | Diluted shares outstanding | 45.5 | 47.2 | - Anti-dilutive stock awards excluded from diluted EPS computation were **74,629 in Q1 2023**, significantly higher than **7,676 in Q1 2022**[104](index=104&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2023 financial condition and results, analyzing revenues, costs, segment performance, and liquidity [Overview](index=22&type=section&id=OVERVIEW) AWI leads in ceiling and wall solutions across the Americas, operating 16 plants and segmenting operations into Mineral Fiber, Architectural Specialties, and Unallocated Corporate - AWI is a leader in the design, innovation, and manufacture of ceiling and wall solutions in the Americas[107](index=107&type=chunk) - Operates **16 manufacturing plants** (14 U.S., 2 Canada), excluding an idled plant in St. Helens, Oregon, classified as an asset held for sale[109](index=109&type=chunk) - WAVE, a joint venture with Worthington Industries, Inc., operates seven additional plants for suspension system products[109](index=109&type=chunk) - Reportable segments: Mineral Fiber, Architectural Specialties, and Unallocated Corporate[110](index=110&type=chunk) - The acquisition of GC Products in November 2022 did not materially impact Q1 2023 results[108](index=108&type=chunk) [Factors Affecting Revenues](index=23&type=section&id=Factors%20Affecting%20Revenues) Q1 2023 revenue was influenced by rising interest rates, lower inflation, and easing supply chain constraints, with increased sales volumes and favorable AUV driving net sales growth - Market conditions in Q1 2023 were characterized by rising interest rates, lower inflation on certain input costs, and easing supply chain/labor constraints, resulting in uneven market demand[116](index=116&type=chunk) - Increased sales volumes contributed **$21 million** to net sales in Q1 2023 compared to Q1 2022, primarily in the Mineral Fiber segment[116](index=116&type=chunk) - Favorable Average Unit Value (AUV) increased total consolidated net sales by approximately **$6 million** in Q1 2023[117](index=117&type=chunk) - Price increases were implemented on Mineral Fiber ceiling, grid products, and certain Architectural Specialties products in Q1 2023[118](index=118&type=chunk) - Sales are historically stronger in Q2 and Q3 due to favorable weather, customer business cycles, and project timing[118](index=118&type=chunk) [Factors Affecting Operating Costs](index=23&type=section&id=Factors%20Affecting%20Operating%20Costs) Operating costs are driven by raw materials, labor, energy, manufacturing overhead, freight, and SG&A, with higher raw material and energy costs negatively impacting Q1 2023 operating income - Operating expenses include direct production costs (raw materials, labor, energy), manufacturing overhead, freight, sourced product costs, and SG&A expenses[119](index=119&type=chunk) - Higher costs for raw materials and energy negatively impacted operating income by **$4 million** in Q1 2023 compared to Q1 2022[119](index=119&type=chunk) | Acquisition-Related Expenses (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :----------------------------------------- | :-------------------------------- | :-------------------------------- | | Loss related to change in fair value of contingent consideration | $- | $0.1 | | Deferred cash and restricted stock expenses | $1.3 | $2.0 | | Net negative impact to operating income | $1.3 | $2.1 | - Acquisition-related expenses decreased from **$2.1 million in Q1 2022 to $1.3 million in Q1 2023**, as the earn-out period for Turf acquisition was completed[122](index=122&type=chunk) - The company had approximately **3,000 full-time and part-time employees** as of March 31, 2023[123](index=123&type=chunk) [Results of Operations](index=24&type=section&id=RESULTS%20OF%20OPERATIONS) Consolidated net sales increased by 9.8% in Q1 2023, driven by higher volumes and favorable AUV, with operating income growing despite increased costs, supported by strong equity earnings from WAVE | Metric (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change (%) | | :------------------- | :-------------------------------- | :-------------------------------- | :--------- | | Total consolidated net sales | $310.2 | $282.6 | 9.8% | | Operating income | $70.2 | $63.2 | 11.1% | - Consolidated net sales increased by **$27.6 million (9.8%)** year-over-year, with **$21 million from higher volumes** and **$6 million from favorable AUV**[125](index=125&type=chunk) - Cost of goods sold as a percentage of net sales slightly increased to **63.9% in Q1 2023 from 63.8% in Q1 2022**, due to raw material/energy inflation and inventory valuation impacts, partially offset by AUV and productivity[126](index=126&type=chunk) - SG&A expenses increased by **$5.6 million to $62.7 million**, driven by higher selling expenses (Architectural Specialties investments, digital initiatives) and **$3 million in severance costs**, partially offset by a **$1 million reduction in acquisition-related expenses**[126](index=126&type=chunk) - Equity earnings from WAVE joint venture increased to **$20.8 million in Q1 2023 from $18.2 million in Q1 2022**, driven by lower steel costs and sales volume recovery[127](index=127&type=chunk) - Interest expense increased to **$8.7 million from $5.1 million** due to higher interest rates on floating rate debt[128](index=128&type=chunk) - Total Other Comprehensive Loss was **$2.1 million in Q1 2023**, a significant change from OCI of **$11.9 million in Q1 2022**, primarily due to derivative gains/losses[129](index=129&type=chunk) [Reportable Segment Results](index=25&type=section&id=REPORTABLE%20SEGMENT%20RESULTS) Mineral Fiber segment saw significant net sales and operating income growth from higher volumes and favorable AUV, while Architectural Specialties also grew sales and operating income from product expansion and project mix | Mineral Fiber Segment (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change (%) | | :---------------------------------- | :-------------------------------- | :-------------------------------- | :--------- | | Total segment net sales | $228.4 | $203.2 | 12.4% | | Operating income | $63.8 | $57.6 | 10.8% | - Mineral Fiber net sales increased by **$25 million**, with **$19 million from higher volumes** and **$6 million from favorable AUV**[130](index=130&type=chunk) - Mineral Fiber operating income increased due to higher sales volumes (**$12 million benefit**), favorable AUV (**$5 million benefit**), and increased equity earnings (**$3 million**), partially offset by higher manufacturing costs (**$8 million**) and increased selling/severance expenses (**$6 million**)[131](index=131&type=chunk) | Architectural Specialties Segment (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change (%) | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | :--------- | | Total segment net sales | $81.8 | $79.4 | 3.0% | | Operating income (loss) | $7.2 | $6.5 | 10.8% | - Architectural Specialties net sales increased by **$2 million**, driven by growth across most product categories, despite lower metal product sales and timing of custom project sales[132](index=132&type=chunk) - Architectural Specialties operating income increased due to a **$2 million margin benefit** from increased sales and favorable project mix, and a **$1 million reduction in acquisition-related expenses**, partially offset by a **$2 million increase in selling expenses**[133](index=133&type=chunk) [Financial Condition and Liquidity](index=26&type=section&id=FINANCIAL%20CONDITION%20AND%20LIQUIDITY) Liquidity is supported by cash from operations and a $950.0 million senior credit facility, with increased operating cash flow, cash used in investing, and reduced financing outflows, while remaining in compliance with debt covenants - Operating activities provided **$26.2 million of cash in Q1 2023**, up from **$16.7 million in Q1 2022**, primarily due to favorable working capital changes in inventory[136](index=136&type=chunk) - Net cash used in investing activities was **$1.5 million in Q1 2023**, compared to **$0.2 million provided in Q1 2022**, mainly due to increased capital expenditures[136](index=136&type=chunk) - Net cash used for financing activities decreased to **$34.7 million in Q1 2023 from $39.2 million in Q1 2022**, driven by lower debt payments and stock repurchases, partially offset by higher contingent consideration payments[137](index=137&type=chunk) - The company has a **$950.0 million variable rate senior credit facility** ($500.0 million revolving credit, $450.0 million Term Loan A) and a **$25.0 million bi-lateral letter of credit facility**[138](index=138&type=chunk) - As of March 31, 2023, total borrowings outstanding were **$450.0 million** under Term Loan A and **$220.0 million** under the revolving credit facility[138](index=138&type=chunk) - AWI was in compliance with all covenants of the senior credit facility as of March 31, 2023[139](index=139&type=chunk) - Interest rate swaps were amended in March 2023 to transition from LIBOR to SOFR[140](index=140&type=chunk) - As of March 31, 2023, AWI had **$96.0 million in cash and cash equivalents** and **$280.0 million available** under its revolving credit facility[144](index=144&type=chunk) [Critical Accounting Estimates](index=27&type=section&id=Critical%20Accounting%20Estimates) There have been no material changes to the critical accounting estimates previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to critical accounting estimates since the December 31, 2022 Annual Report on Form 10-K[145](index=145&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the Annual Report on Form 10-K for detailed information regarding the company's exposure to market risks - For detailed information on market risk exposure, refer to Item 7A of the Annual Report on Form 10-K for the year ended December 31, 2022[146](index=146&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were effective as of March 31, 2023[147](index=147&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter ended March 31, 2023[147](index=147&type=chunk) [PART II - OTHER INFORMATION](index=29&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 18 of the Condensed Consolidated Financial Statements for details on legal proceedings, primarily environmental matters - Legal proceedings information is incorporated by reference from Note 18 to the Condensed Consolidated Financial Statements[149](index=149&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to risk factors since the December 31, 2022 Annual Report on Form 10-K[150](index=150&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchase activities under its approved program, including the number of shares purchased, average price, and remaining authorization | Period | Total Number of Shares Purchased (1) | Average Price per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Approximate Value of Shares that may yet be Purchased under the Plans or Programs | | :--------------------- | :----------------------------------- | :---------------------- | :------------------------------------------------------------------------------- | :-------------------------------------------------------------------------------------- | | January 1 – 31, 2023 | 137,225 | $72.87 | 137,225 | $338,788,146 | | February 1 – 28, 2023 | 55,467 | $79.63 | 50,252 | $334,788,244 | | March 1 – 31, 2023 | 189,463 | $72.25 | 179,792 | $321,788,971 | | Total | 382,155 | | 367,269 | | - The Board approved a share repurchase program of up to **$1,200.0 million** through December 31, 2023[152](index=152&type=chunk) - As of March 31, 2023, **$321.8 million** remained under the repurchase authorization[151](index=151&type=chunk)[153](index=153&type=chunk) - During Q1 2023, **0.4 million shares were repurchased for $27.0 million** at an average price of **$73.51 per share**[153](index=153&type=chunk) [Item 3. Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - No defaults upon senior securities[154](index=154&type=chunk) [Item 4. Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[154](index=154&type=chunk) [Item 5. Other Information](index=29&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[154](index=154&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, primarily consisting of Inline XBRL documents for financial data tagging - Exhibits include Inline XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, and Presentation Linkbase[155](index=155&type=chunk) - The cover page is formatted in Inline XBRL[155](index=155&type=chunk) [Signatures](index=31&type=section&id=Signatures) [Report Signatures](index=31&type=section&id=Report%20Signatures) The report is signed by Christopher P. Calzaretta, Senior Vice President and Chief Financial Officer, and James T. Burge, Vice President and Controller, on April 25, 2023 - Signed by Christopher P. Calzaretta, Senior Vice President and Chief Financial Officer (Principal Financial Officer)[158](index=158&type=chunk) - Signed by James T. Burge, Vice President and Controller (Principal Accounting Officer)[158](index=158&type=chunk) - Date of signature: April 25, 2023[158](index=158&type=chunk)

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 ...