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Summary of Operations
Armstrong Flooring, Inc. is a company that sells flooring products primarily in North America but also (to a lesser extent) on the Pacific Rim. They primarily offer luxury vinyl tile (LVT) and plank products for floor surfaces. They target commercial and residential buildings, which the company identifies as a $19 billion market. While it creates its own products, it relies on various third parties for raw materials and for certain stages of production.
Since being spun off from from Armstrong World Industries, Inc. (AWI) in 2016, it has been operating at a loss consistently and is currently trying to reinvent itself with its new management.
Strategy
This company is on its last legs and no longer has a coherent strategy.
Growth and Future
The company is on its last legs. After spending 2021 trying to turnaround, it has spent 2022 trying to get new loans or to seek a buyer of the company. Management has failed to find any interested lenders or buyers, and so the company is facing imminent bankruptcy. It does not have sufficient cash to cover its debts and will need to sell of assets to do this.
Valuation
With no earnings, an intrinsic value cannot be determined, but perfect liquidation at book value could yield about $9 per share.
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