Armstrong Flooring (Lancaster, Pa.) made $8.3 million in the third quarter of 2016, a 6.74 percent decrease compared with the $8.9 million made during the same period in 2015, according to the company’s SEC filing.
Third quarter income was impacted by one-time severance payments of $1.7 million for eliminating six positions, including the chief operating officer, while the third quarter of 2015 included a $1.1 million gain on the disposal of discontinued operations.
Net sales also decreased year-over-year, from $322.6 million in the third quarter of 2015 to $313.4 million in the third quarter of 2016.
The company’s wood flooring segment reported third quarter net sales of $123.2, a 5.6 percent drop compared with the $130.5 million in sales in the third quarter of 2015.
The decrease was attributed to lower volume and unfavorable mix, according to a company statement.
“Lower volume reflected a reduction in inventory levels at two major retail customers,” the statement said. “Unfavorable mix reflected a higher proportion of sales from base grade engineered wood products versus premium wood products. Price was relatively stable reflecting efforts to hold price amid raw material inflation despite continued industry price pressure.”
The company’s resilient flooring segment sales decreased 1.0 percent to $190.2 million the third quarter of 2016.
Meanwhile adjusted EBITDA in the third quarter of 2016 was $30.4 million, a 25.1 percent increase compared with the third quarter of 2015 EBITDA of $24.3 million.
“We are steadily strengthening our balance sheet position and generating meaningful cash flow to deliver positive free cash flow for 2016,” said CEO Don Maier in a statement.
