Armstrong Flooring, Inc. (AFI) saw its loss narrow to $6.30 million, or $0.23 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $16.60 million, or $0.47 a share. On the other hand, adjusted net loss for the quarter narrowed to $2.50 million, or $0.09 a share from a loss of $11.80 million or $0.43 a share, a year ago.
Revenue during the quarter went down marginally by 3 percent to $271.70 million from $280.10 million in the previous year period. Gross margin for the quarter expanded 282 basis points over the previous year period to 16.56 percent. Operating margin for the quarter stood at negative 3.39 percent as compared to a negative 7.28 percent for the previous year period.
Operating loss for the quarter was $9.20 million, compared with an operating loss of $20.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.50 million compared to negative $9.70 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 2.02 percent for the quarter compared to negative 3.46 percent in the last year period.
Don Maier, chief executive officer, commented: "We made significant progress in driving our innovation-based growth initiatives to produce an increase in annual sales for the first time in three years. However, we continue to encounter a declining trend in our legacy portfolio, and we believe that the sales trends experienced in 2016 will continue in 2017. As a result, we are even more committed to enhancing our mix of higher growth products, while taking actions to revitalize our legacy categories. While we expect these trends to persist, we remain confident in our ability to achieve a 10% Adjusted EBITDA margin target in the mid-term. Our announced organizational realignment will support that target as we seek to better align our structure with our customers. Furthermore, the $50 million share repurchase program announced today provides us with an additional avenue to build shareholder value, while still preserving a strong balance sheet with ample liquidity to invest in growth."
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