Armstrong World Industries, Inc. (NYSE:AWI) Q1 2023 Earnings Conference Call April 25, 2023 10:00 AM ET

Company Participants

Theresa Womble - Vice President of Investor Relations and Corporate Communications

Vic Grizzle - Chief Executive Officer

Chris Calzaretta - Chief Financial Officer

Conference Call Participants

Kathryn Thompson - Thompson Research

Susan Maklari - Goldman Sachs

Keith Hughes - Truist Securities

Garik Shmois - Loop Capital

Phil Ng - Jefferies

Stephen Kim - Evercore ISI

Rafe Jadrosich - Bank of America

Adam Baumgarten - Zelman & Associates

Joe Ahlersmeyer - Deutsche Bank

John Lovallo - UBS

Operator

Welcome to the Q1, 2023 Armstrong World Industries, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Theresa Womble, Vice President of Investor Relations, and Corporate Communications. Please go ahead.

Theresa Womble

Thank you. Good morning, and welcome everyone to our call. On today's call, Vic Grizzle, our CEO; and Chris Calzaretta, our CFO will discuss Armstrong World Industries first quarter 2023 results, and our 2023 outlook. To accompany these remarks, we have provided a presentation that is available on the Investor section of our Web site.

Our discussion of operating and financial performance will include non-GAAP financial measures within the meaning of SEC Reg G. A reconciliation of these measures with the most directly comparable GAAP measure is included in the earnings press release and in the appendix of the presentation we issued this morning. Those, again, are available on the Investor section of our Web site.

During this call, we will be making forward-looking statements that represent the view we have of our financial and operational performance as of today's date, April 25, 2023. These statements involve risks and uncertainties that may differ materially from those expected or implied. We provide a detailed discussion of our risks and uncertainties in our SEC filings, including the 10-Q filed earlier this morning. We undertake no obligation to update any forward-looking statements beyond what is required by applicable securities law.

And now, I'll turn the call over to Vic.

Vic Grizzle

Thank you, Theresa, and good morning and thank you all for joining our call today. The results we reported this morning represent a solid start to 2023 as our team successfully executed on our strategic initiative and controlled cost against a backdrop of economic uncertainty. Our consolidated net sales increased 10% year-over-year, while adjusted EBITDA grew 9%, and adjusted free cash flow increased more than 50%. Our Mineral Fiber segment was a key contributor to the good start, with double-digit sales and adjusted EBITDA growth, as well as adjusted EBITDA margin expansion up 20 basis points.