In the second quarter of 2020, net sales decreased 18.1% to $145.6 million from $177.7 million in
the second quarter of 2019, including an adverse currency impact of 80 basis points. The decrease in net sales was primarily attributable to lower volumes due to the COVID-19 pandemic and shelter-in-place related business disruptions, including the temporary closing of many independent customer retail locations and the postponement of certain commercial
projects, partially offset by increased activity with home centers.
The net loss in the second quarter of 2020 was $6.3 million, or diluted loss per
share of $0.29, as compared to net income of $14.7 million, or diluted earnings per share of $0.56, in the prior year quarter. Adjusted net loss was $5.1 million, or adjusted diluted loss per share of $0.23, as compared to adjusted net
income of $9.4 million, or adjusted diluted earnings per share of $0.36, in the prior year quarter.
Second quarter 2020 adjusted EBITDA was
$6.9 million, as compared to adjusted EBITDA of $20.0 million in the prior year quarter. The decrease in adjusted EBITDA was primarily attributable to lower net sales and higher SG&A expense, partially offset by reduced input costs.
Liquidity and Capital Resources Update
2020, the Company amended its senior secured asset-based revolving credit facility, modifying the facility size to $90 million with a maturity date in 2023. Additionally, in June 2020 the Company entered into a $70 million term loan
facility that matures in 2025 to further strengthen its capital resources for business transformation and growth initiatives.
At June 30, 2020, the
Company had cash of $34.1 million and total liquidity of approximately $120.7 million including cash plus availability under its credit facilities. The Company expects the facilities to provide ample financial resources to effectively
execute its near and long-term objectives.
Webcast and Conference Call
The Company will hold a live webcast and conference call to review financial results and conduct a question-and-answer session on Wednesday, July 22, 2020 at 10:00 a.m. ET. The live webcast will be available in the Investors section of the Companys website at www.armstrongflooring.com. Due to
potential extended wait times to access the conference call via dial-in, the Company encourages use of the webcast.
For those unable to access the webcast, the conference call will be accessible by dialing
877-407-0789 (domestic) or 201-689-8562 (international). A replay of the conference call
will be available for 90 days, by dialing 844-512-2921 (domestic) or 412-317-6671
(international) and entering the passcode 13706761.
About Armstrong Flooring
Armstrong Flooring, Inc. (NYSE: AFI) is a global leader in the design and manufacture of innovative flooring solutions that inspire beauty wherever your life
happens. Headquartered in Lancaster, Pennsylvania, Armstrong Flooring is a leading manufacturer of resilient products across North America. The company safely and responsibly operates eight manufacturing facilities globally, working to provide the
highest levels of service, quality and innovation to ensure it remains as strong and vital as its 150-year heritage. Learn more www.armstrongflooring.com.