[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Armstrong World Industries, Inc.'s unaudited condensed consolidated financial statements and notes for Q2 and YTD 2020 and 2019 [Condensed Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Net sales and operating income decreased significantly in Q2 and YTD 2020, with a substantial net loss for the six-month period due to a pension settlement Q2 & YTD 2020 Financial Performance (in millions, except per share data) | Metric | Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $203.2 | $272.0 | $451.9 | $514.1 | | **Gross Profit** | $67.8 | $103.4 | $159.1 | $194.8 | | **Operating Income** | $62.4 | $87.2 | $138.4 | $141.9 | | **Earnings (Loss) from Continuing Operations** | $49.5 | $63.7 | $(173.1) | $100.1 | | **Net Earnings (Loss)** | $50.3 | $54.5 | $(175.9) | $93.6 | | **Diluted EPS from Continuing Operations** | $1.03 | $1.28 | $(3.61) | $2.01 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$1,544.3 million** as of June 30, 2020, driven by cash and receivables, with total liabilities and shareholders' equity also growing Balance Sheet Summary (in millions) | Account | June 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Total Current Assets** | $320.0 | $244.4 | | **Total Assets** | $1,544.3 | $1,493.3 | | **Total Current Liabilities** | $156.9 | $155.2 | | **Total Liabilities** | $1,141.4 | $1,128.4 | | **Total Shareholders' Equity** | $402.9 | $364.9 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to **$78.7 million** for YTD 2020, driven by favorable working capital and lower tax payments, with investing activities providing cash Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Category | 2020 | 2019 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $78.7 | $47.0 | | **Net cash provided by (used for) investing activities** | $10.3 | $(31.6) | | **Net cash (used for) financing activities** | $(16.7) | $(102.6) | | **Net increase (decrease) in cash** | $71.8 | $(85.4) | | **Cash and cash equivalents at end of period** | $117.1 | $250.3 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information on accounting policies, acquisitions, segment results, debt structure, a significant pension settlement, and litigation matters - In February 2020, the company settled **$1,045.3 million** of retiree defined benefit pension obligations, resulting in a settlement loss of **$374.4 million** recorded in the first quarter[99](index=99&type=chunk)[101](index=101&type=chunk) - During Q2 2020, the company sold its idled mineral fiber plant in China, recording a gain of **$14.1 million**[45](index=45&type=chunk) - Subsequent to the quarter end, on July 27, 2020, the company acquired TURF Design Inc. for **$70.0 million** in cash, plus up to **$48.0 million** in contingent consideration[41](index=41&type=chunk) Segment Net Sales (in millions) | Segment | Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | | :--- | :--- | :--- | :--- | :--- | | **Mineral Fiber** | $157.9 | $214.1 | $355.6 | $410.8 | | **Architectural Specialties** | $45.3 | $57.9 | $96.3 | $103.3 | | **Total Net Sales** | $203.2 | $272.0 | $451.9 | $514.1 | Segment Operating Income (in millions) | Segment | Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | | :--- | :--- | :--- | :--- | :--- | | **Mineral Fiber** | $45.6 | $79.4 | $115.6 | $127.0 | | **Architectural Specialties** | $4.3 | $9.5 | $11.8 | $18.7 | | **Unallocated Corporate** | $12.5 | $(1.7) | $11.0 | $(3.8) | | **Total Operating Income** | $62.4 | $87.2 | $138.4 | $141.9 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant negative impact of COVID-19 on customer demand and sales in Q2 2020, covering consolidated and segment results, company responses, and liquidity [Overview and COVID-19 Impact](index=30&type=section&id=Overview%20and%20COVID-19%20Impact) The company experienced a significant decrease in customer demand in Q2 2020 due to COVID-19, leading to reduced capital expenditures, deferred tax payments, and a suspended share repurchase program - The company experienced a significant decrease in customer demand in Q2 2020 due to COVID-19, with lower net sales expected for the remainder of 2020 compared to 2019[152](index=152&type=chunk) - In response to COVID-19, the company has reduced capital expenditures, discretionary spending (compensation, travel, marketing), and deferred U.S. federal income tax payments[152](index=152&type=chunk) - To bolster liquidity, the company borrowed an additional **$100.0 million** from its revolving credit facility and **$30.0 million** from its accounts receivable securitization facility in March 2020, and temporarily suspended its share repurchase program[154](index=154&type=chunk) [Results of Continuing Operations](index=33&type=section&id=Results%20of%20Continuing%20Operations) Consolidated net sales for Q2 2020 fell **25.3%** to **$203.2 million**, with operating income decreasing **28.4%**, primarily due to lower volumes and reduced legal fees Consolidated Results Summary (in millions) | Period | Net Sales | % Change | Operating Income | % Change | | :--- | :--- | :--- | :--- | :--- | | **Q2 2020** | $203.2 | (25.3)% | $62.4 | (28.4)% | | **YTD 2020** | $451.9 | (12.1)% | $138.4 | (2.5)% | - The decrease in SG&A for the first six months of 2020 was largely due to a **$20 million** decrease in legal and professional fees, driven by expenses incurred in Q1 2019 under a settlement with Rockfon[179](index=179&type=chunk) - Other non-operating expense for the first six months of 2020 was **$365.0 million**, primarily due to the **$374.4 million** settlement loss associated with the U.S. Retirement Income Plan (RIP)[184](index=184&type=chunk) [Reportable Segment Results](index=34&type=section&id=Reportable%20Segment%20Results) Both Mineral Fiber and Architectural Specialties segments saw significant Q2 2020 declines in net sales and operating income due to lower volumes and demand, while Unallocated Corporate income increased from a plant sale - **Mineral Fiber:** Q2 2020 net sales decreased **26.2%** due to lower volumes (**$55M**) and unfavorable AUV (**$1M**). Operating income fell **42.6%** due to lower volumes, reduced WAVE equity earnings, and unfavorable AUV[188](index=188&type=chunk)[189](index=189&type=chunk) - **Architectural Specialties:** Q2 2020 net sales decreased **21.8%** (**$13M**) due to reduced demand across most product categories as a result of COVID-19. Operating income fell **54.7%** due to lower sales volumes and increased amortization expense from 2019 acquisitions[192](index=192&type=chunk)[193](index=193&type=chunk) - **Unallocated Corporate:** Operating income increased in Q2 and YTD 2020 primarily due to a **$14 million** gain on the sale of the company's idled mineral fiber plant in China[194](index=194&type=chunk) [Financial Condition and Liquidity](index=35&type=section&id=Financial%20Condition%20and%20Liquidity) As of June 30, 2020, the company held **$117.1 million** in cash and **$370.0 million** available credit, with operating cash flow increasing to **$78.7 million** for YTD 2020, and was compliant with all debt covenants - As of June 30, 2020, the company had **$117.1 million** of cash and cash equivalents and **$370.0 million** available under its revolving credit facility[207](index=207&type=chunk) - The company is subject to two main financial covenants: an interest coverage ratio (>= 3.0 to 1.0) and a leverage ratio (<= 3.75 to 1.0). As of June 30, 2020, the company was in compliance with all covenants[200](index=200&type=chunk) - In March 2020, the company amended its Accounts Receivable Securitization Facility, decreasing it to **$30.0 million** and extending the maturity. As of June 30, 2020, the facility was fully drawn[204](index=204&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the company's 2019 Annual Report on Form 10-K for detailed information on its exposure to market risks, including interest rate, foreign currency, and commodity price risks - The company directs investors to its 2019 Annual Report on Form 10-K for a full discussion of its exposure to market risks[210](index=210&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2020, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and chief financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2020[211](index=211&type=chunk) - No material changes were made to the company's internal control over financial reporting during the fiscal quarter ended June 30, 2020[211](index=211&type=chunk) [PART II - OTHER INFORMATION](index=39&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference Note 21, detailing the company's involvement in environmental matters at three domestic sites and other ordinary course litigation - The company refers to Note 21 for details on legal proceedings, which primarily concern environmental investigation and remediation at several sites[213](index=213&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The company highlights public health pandemics, specifically COVID-19, as a material risk due to uncertainty regarding its duration, government actions, and impact on construction and customer demand - The company identifies public health epidemics like COVID-19 as a significant risk factor, citing uncertainty regarding its duration, government responses, and impact on construction activity and customer demand[214](index=214&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **0.4 million** shares for **$34.4 million** during YTD 2020, temporarily suspending the program in March, but later approving an additional **$500 million** authorization, totaling **$1.2 billion** - The share repurchase program was temporarily suspended in March 2020[216](index=216&type=chunk) - On July 28, 2020, the Board of Directors approved an additional **$500.0 million** for the share repurchase program, increasing the total authorization to **$1.2 billion** and extending it through December 31, 2023[216](index=216&type=chunk) Share Repurchase Summary | Period | YTD Repurchases (shares) | YTD Cost (millions) | Since Inception Repurchases (shares) | Since Inception Cost (millions) | | :--- | :--- | :--- | :--- | :--- | | **Six Months Ended June 30, 2020** | 0.4 million | $34.4 | 9.6 million | $596.2 | [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including CEO and CFO certifications and XBRL data files

Armstrong World Industries, Inc. (NYSE:AWI) Q1 2020 Earnings Conference Call April 27, 2020 11:00 AM ET Company Participants Tom Waters - Vice President, Corporate Finance Vic Grizzle - Chief Executive Officer Brian MacNeal - Chief Financial Officer Conference Call Participants Keith Hughes - SunTrust John Lovallo - Bank of America Ken Zener - KeyBanc Kathryn Thompson - Thompson Research Group Susan Maklari - Goldman Sachs Michael Wood - Nomura Instinet Stephen Kim - Evercore ISI Philip Ng - Jeffries Garik ...

UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value per share AWI New York Stock Exchange FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission ...

Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value per share AWI New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None 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, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EX ...

Financial Data and Key Metrics Changes - In Q4 2019, sales grew by 3% to $247 million, adjusted EBITDA increased by 14%, and adjusted EPS rose by 40% to $1.11, driven by increased earnings and a lower tax rate [6][17][12] - For the full year, total company sales were up 6% to over $1 billion, adjusted EBITDA increased by 14% to $403 million, and margins expanded by 270 basis points [12][22] - Adjusted free cash flow declined by 19% year-over-year, but was up 13% when excluding the special WAVE dividend from 2018 [18][12] Business Line Data and Key Metrics Changes - In the Mineral Fiber segment, average unit value (AUV) increased by over 5%, while volume was down 2% due to softness in the lower end of the product range [6][8] - The Architectural Specialty segment saw sales increase by 5% in Q4, despite a supply disruption from a key vendor [9][10] - Adjusted EBITDA margins in the Mineral Fiber segment expanded by 430 basis points, while the Architectural Specialty segment's adjusted EBITDA was up 2% [9][22] Market Data and Key Metrics Changes - Commercial activity in the U.S. remains favorable, with positive bid activity and backlogs, while Canada and the big box channel showed continued softness [8][15] - The company expects a mixed demand environment across various verticals in 2020, with growth anticipated in office, education, and transportation markets, but a soft year expected for retail [15][12] Company Strategy and Development Direction - The company plans to continue focusing on innovation and new product development, with expectations for high-single-digit sales growth and double-digit adjusted EBITDA growth in 2020 [30][32] - The company aims to close one to three acquisitions in 2020 to enhance its Architectural Specialties capabilities [11][22] - A significant pension obligation transfer agreement was made to reduce balance sheet risk, which is expected to result in a non-cash expense of $350 million to $400 million in Q1 2020 [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the year ahead, citing strong backlog and custom product growth, despite a slower start due to supply chain issues [35][36] - The company anticipates a stable market environment similar to 2019, with continued focus on productivity improvements and digital initiatives [15][14] - Management highlighted the importance of maintaining a strong balance sheet and generating robust free cash flow for future investments and shareholder returns [27][30] Other Important Information - The company celebrated the 20-year anniversary of its recycling program, which has recycled over 200 million square feet of ceiling panels [29] - The company repurchased $50 million of stock in the quarter, with a remaining $138 million under its share repurchase program [19][12] Q&A Session Summary Question: Impact of supply chain issues on Architectural Specialties - Management acknowledged a supply disruption due to a quality issue with a vendor, which temporarily affected sales but has since been resolved [10][69] Question: Outlook for manufacturing productivity - Management expressed confidence in ongoing productivity improvements driven by digital initiatives and strong leadership in manufacturing [40][41] Question: Dynamics of smaller project spending - Management noted that smaller projects are often discretionary and can be delayed based on market conditions, but improvements in education sector budgets are expected to support growth [42][43] Question: Revenue growth expectations from price versus volume - Management expects continued AUV growth in the Mineral Fiber segment, with a flat to slightly positive volume outlook for 2020 [51] Question: Capital allocation strategy - Management emphasized reinvesting in the business as the top priority, followed by acquisitions and returning cash to shareholders [54][55] Question: Impact of Coronavirus on supply chain - Management confirmed that there has been virtually no impact from the Coronavirus on the supply chain [56] Question: Demand drivers for Architectural Specialties versus Mineral Fiber - Management indicated that growth in Architectural Specialties is driven by new construction and market penetration, while Mineral Fiber growth is supported by high-end product innovations [58][60]

Armstrong World Industries, Inc. (NYSE:AWI) Q3 2019 Earnings Conference Call October 28, 2019 11:00 AM ET Company Participants Tom Waters - Vice President of Corporate Finance Vic Grizzle - Chief Executive Officer Brian MacNeal - Chief Financial Officer Conference Call Participants Keith Hughes - SunTrust Stephen Kim - Evercore ISI John Lovallo - Bank of America. Michael Wood - Nomura Instinet Kathryn Thompson - Thompson Research Ken Zener - KeyBanc Phil Ng - Jefferies Garik Shmois - Longbow Research Justin ...

UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value per share AWI New York Stock Exchange FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commis ...

Armstrong World Industries, Inc. (NYSE:AWI) Q2 2019 Earnings Conference Call July 29, 2019 11:00 AM ET Company Participants Tom Waters - Vice President of Corporate Finance Vic Grizzle - Chief Executive Officer Brian MacNeal - Chief Financial Officer Conference Call Participants John Lovallo - Bank of America. Kathryn Thompson - Thompson Research Ken Zener - KeyBanc Garik Shmois - Longbow Research Keith Hughes - SunTrust Stephen Kim - Evercore ISI Phil Ng - Jefferies Justin Speer - Zelman & Associates Opera ...