You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: With me on the call today are Vic Grizzle our CEO; and Brian MacNeal, our CFO.
Actual outcomes may differ materially from those expected or implied.
Both are available on our website.
I'm pleased to be with you today from our corporate campus in Lancaster, Pennsylvania.
Armstrong, like many companies, is adapting to a new normal of hybrid work activity.
Here at Armstrong, safety protocols are in place and our physical spaces have undergone a first phase of modifications to allow our organization to return to the office safely.
We're actively working on more permanent changes to our facilities, including the use of new ceiling and grid solutions to create healthier spaces for our staff and visitors.
Our manufacturing and distribution facilities continue to operate well and safely.
Quality and service levels are high and our connectivity to customers, enabled by our digital tools, remains excellent.
Overall, demand in the quarter improved sequentially much as we had expected.
On a seasonally adjusted basis, Q3 was 14% better than Q2, down 11% versus 25%.
In addition, we saw sequential improvement within the quarter, as daily Mineral Fiber sales improved from down 15% in July to down 11% in September.
And October has continued this trend and is progressing better than September.
Our top seven territories, which had lagged significantly in the second quarter, returned to the overall national average during the quarter.
But the New York Metro area, our highest AUV territory, continues to lag.
Overall, sales of $247 million were down 11% a quarter versus prior year.
Volume was down 10% and Mineral Fiber AUV was slightly negative.
Positive like-for-like pricing improvement and favorable product mix were offset by negative channel mix and negative territory mix, primarily driven by the lag in New York metro area.
In addition, sales to big box customers were up in the quarter versus 2019, which is good from a volume perspective, but given the lower sales price in this channel, it was also a headwind to mix.
While the overall demand trends in the quarter progressed largely as expected, there were some developments that we observed that I want to share with you to provide context on the market conditions.
As expected, construction activity picked up in the territories most impacted by COVID-related restrictions in the second quarter, namely the seven largest territories we referenced on our last call.
The easing of state and local regulations on job sites and the increasing ability of contractors to work with the newly imposed restrictions both helped this situation.
However, as the quarter progressed we saw delays emerge in previously less impacted territories, namely the South and the Midwest following the migration of the virus.
This shift in regional activity reflects the impact of increasing COVID cases on construction activity and the overall uneven nature of the market reopening.
New construction activity has fared pretty well overall, as existing projects continue toward completion, while smaller and midsized renovation projects experienced greater headwinds.
In our conversations with our customers, it is clear that there remains a lot of near-term uncertainty as building owners work to determine the best path forward to adapt their facilities to enable the safe return of occupants.
This is also true with schools, with some remodel activity remaining on hold, as many students learn from home.
Also in the quarter we continued to experience softness in our low visibility flow business.
These are the small discretionary repair/remodel type projects that flow through our distribution partners and often without a specification.
In addition to the uneven opening of the markets, we also experienced minor business interruptions in the quarter due to protest activity in certain cities and Hurricane Sally which closed our Pensacola, Florida plant for a few days.
The Armstrong team and our partners continue to earn my admiration as they overcome obstacles and continue to deliver for our customers.
Adjusted EBITDA in the quarter of $92 million was down 19% from 2019.
The pandemic-driven volume decline is really the entire story as the business continues to operate well and as expected otherwise.
Brian will provide more details on our financial results in a moment.
But it has been an impressive performance by our operations team in an extraordinary environment.
I could not be more proud of the work that they have done thus far.
Despite the challenges in the market, our strong cash flow performance continues, and we remain on track to deliver over $200 million in adjusted free cash flow.
Based on this continued strong cash flow generation and our confidence to continue to do so, our Board has approved a 5% increase in our regular quarterly dividend to $0.21 per share and we are restarting our share repurchase program.
The third quarter was also notable, in that we completed two M&A transactions.
The previously discussed, acquisition of Chicago-based Turf Design, the leading provider of custom felt-based ceilings and walls and then on August 24, we acquired Moz Designs.
Moz is a Northern California-based designer and fabricator of custom architectural metal ceilings, walls, dividers and column covers.
Moz brings unique capabilities that can be utilized to improve the product offerings of our three existing metal ceiling facilities, and further strengthens our already leading position in the growing category of metal ceilings and walls.
This transaction marks our seventh acquisition since 2017.
We are truly building an unmatched platform of specialty ceilings and walls and we are not done.
Our M&A pipeline continues to grow as we see more and more opportunities to build out the most unique set of capabilities in the industry, and our financial strength allows us to do so.
Today, I'll be reviewing our third quarter results.
Beginning on slide 4, for our overall third quarter results, sales of $246 million were down 11% versus prior year, a significant sequential improvement from the second quarter when year-over-year sales were down 25%.
Adjusted EBITDA fell 19% and margins contracted 370 basis points, again a substantial sequential improvement from the second quarter when year-over-year EBITDA was down 36% and margins contracted 590 basis points.
Adjusted diluted earnings per share of $1.07, fell 22% and adjusted free cash flow declined by $53 million versus the prior year.
I'll address the reasons for this decline in a moment.
Our cash balance at quarter-end was $139 million, and coupled with $315 million of availability on our revolver, positions us with $454 million of available liquidity, down $33 million from last quarter as we completed the Turf and Moz acquisitions during this past quarter, and down $24 million from the third quarter of 2019.
Net debt of $542 million is $4 million higher than last year as a result of our acquisitions, partially offset by cash earnings and the receipt of $19 million from the sale of our Qingpu plant in China, which was idled.
As of the quarter-end, our net debt to EBITDA ratio was 1.5 times versus 1.6 times last year as calculated under the terms of our credit agreement.
Our covenant threshold is 3.75 times, so we have considerable headroom in this measure.
Our balance sheet is in solid shape.
In the quarter, we did not repurchase any shares as our repurchase program remains suspended to preserve liquidity in light of the COVID-19 impact on the market.
Last week, our Board of Directors approved the restart of the program.
Going forward, we will look to return to our customary approach of repurchasing shares subject to our normal processing protocols.
Since the inception of the repurchase program, we've bought back 9.6 million shares at a cost of $596 million for an average price of $62.13.
We currently have $604 million remaining under our share repurchase program, which now expires in December of 2023.
Slide 5, illustrates our Mineral Fiber segment results.
In the quarter, sales were down 14% versus prior year, but sequentially improved from the prior quarter when year-over-year sales declined 26%.
COVID-19 driven volume declines were the key driver.
AUV was a headwind, as positive like-for-like pricing and favorable product mix, were offset by the channel and geographic mix issues that Vic mentioned.
While sales in our key seven territories improved sequentially and converged with the performance in other territories, performance within these key seven territories was inconsistent and was a headwind to overall price and mix for the Mineral Fiber segment.
AUV in the remaining territories was positive.
Adjusted EBITDA was down $20 million or 21% as the volume decline fell through to the bottom line and AUV was a drag.
Continued manufacturing productivity and cost reduction initiatives, lower raw material and energy costs, and SG&A cost management were all positive in the quarter.
WAVE equity earnings were down due to lower sales and also as a result of a year-to-date true-up of allocated costs from Armstrong and Worthington.
Moving to Architectural Specialties segment on slide 6, sales were up 1% as the acquisitions of Turf and Moz contributed almost $8 million in the quarter and offset COVID-driven organic sales decline of 12% which were sequentially better than the 22% decline we experienced in the second quarter.
While current period sales activity was challenged given state and local restrictions, we continue to have exciting wins and have been awarded the Kansas City International Airport and the Princeton University Residential College projects.
These jobs will ship in 2021 and 2022 and demonstrate our continued ability to win complex and iconic projects.
Despite flat sales direct margins expanded significantly driven by the higher margins of the Turf and Moz acquisitions relative to our base business and ongoing productivity in the network particularly at acquired facilities.
Fixed manufacturing costs and SG&A were up driven by the costs of Turf and Moz.
Slide seven shows our consolidated results for the quarter and clearly illustrate the impact of COVID-related volume declines.
Slide eight shows adjusted free cash flow performance in the quarter versus the third quarter of 2019.
Cash flow from operations was down $48 million, largely driven by volume due to COVID-19.
Also in the quarter despite lower income in Q3 2020, we actually paid $14 million more in cash taxes than in the third quarter of 2019.
This is largely driven by timing in certain discrete items in the base period.
Not included in this cash flow bridge are two significantly positive non-recurring cash items.
In the quarter, we applied a $27 million tax refund related to the sale of our international operations.
And we received $19 million from the sale of our closed Qingpu facility in China.
We have received an additional $2 million from the sale in October and this transaction is now complete.
Slide nine shows our year-to-date results.
As you can see sales were down 12%, adjusted EBITDA is down 18%, and adjusted free cash flow is down 16%.
Slide 10 is our year-to-date bridge.
Again, COVID-related volume declines are the main driver followed by the geographic and customer AUV issues we've called out.
For the year product mix and like-for-like pricing are both positive contributors to sales, but mix is a headwind to EBITDA due to geographic and channel mix.
Input costs, deflation and the savings we are driving in manufacturing and SG&A despite our acquisitions helped mitigate the sales fall through the EBITDA.
Slide 11 reflects our year-to-date free cash flow.
As with the quarter, operating cash flow was impacted by volume declines due to COVID-19, the tax refund in Qingpu sales proceeds mentioned earlier are excluded.
Capital expenditures reflects the delaying actions we are taking to finalize or to prioritize cash in the near-term.
Interest expense is lower as a result of our refinancing in September of 2019.
WAVE earnings were impacted by volume declines.
Slide 12 is our guidance for the year.
We now anticipate full year revenues in the range of $920 million to $935 million or down 10% to 11%.
Overall the decline will be entirely volume as we anticipate AUV to be essentially flat for the full year.
EBITDA will be in the range of $320 million to $330 million as the sales decline drops down and is partially offset by productivity and the impact of our cost containment actions.
Actions are in place to drive $40 million to $45 million of savings in manufacturing and SG&A down slightly by $5 million from our previous outlook as we invest for future growth.
Our cash flow guidance is adjusted from our prior outlook as we have taken capital expenditures up, acquired the working capital of Turf and Moz and adjusted the seasonal trajectory of our fourth quarter to account for continued sequential improvement.
These are challenging times but Armstrong is laser-focused on controlling what we can control investing to drive growth and building on an already best-in-class platform.
Our ability to execute two meaningful acquisitions during a global pandemic is testament to our focus and confidence.
I have no doubt that we will emerge on the other side of this crisis in an even stronger position to grow and create value.
Healthy spaces is the dominant topic in commercial construction conversations today.
92% of architects and designers surveyed said they are having conversations with their clients on how to make their spaces healthier and safer.
And it's a universally known fact that we spend 90% of our lives indoors.
And even though healthy spaces have always been important this pandemic has made it an even greater priority, possibly the highest priority and the standards for which health and safe are measured are being raised to a whole new level.
At Armstrong, we have been the leading supplier of ceilings and spaces where healthy has mattered the most in operating rooms, in ICU wards and other isolation room applications.
Now, we are bringing that experience to today's conversation about creating healthy spaces and how to create one.
We believe a healthy space and safe space is a space that protects us and fosters a feeling of well-being and comfort that allows people to be at their best.
So where do ceilings come in?
You're already familiar with how ceilings play a role in acoustics and aesthetics and in making the most of natural and supplemental light in interior environments, all of which are part of the healthy spaces equation.
As the structural capstone of any space, the right ceiling system can make a meaningful difference by bringing the additional elements of healthy spaces together.
Our ceiling grid and partition solutions contribute to maximizing ventilation and minimizing the transmission of harmful pathogens.
In most buildings, the ceiling system is part of the supply and return air ducting.
We're already very in tuned with that with our current solutions for healthcare spaces.
We are now adapting this technology to be more affordable and effective in the office, the classroom and other settings to meet the new definition and the new standards for a healthy space.
I'm very pleased to introduce a new family of products called 24/7 Defend.
These products represent innovative new solutions against harmful pathogens and other particles in indoor environments.
Our 24/7 Defend product family already includes infusion partitions and CleanAssure disinfectable products, which are proven cleanable products.
What's new is the AirAssure family of gasketed ceiling tile products that self-seal to the grid system and a new integrated VidaShield ultraviolet air purification and ceiling tile system.
When placed in our standard grid system, AirAssure gasketed ceiling panels form a tight seal and reduce air flow leakage into the plenum by 300% over standard ceiling panels.
Reducing air leaks significantly increases the effectiveness of air ventilation and filtration systems allowing more air to flow through the return air vents where it can be filtered and purified and ensuring greater air quality.
In addition to allowing more filtering and cleaning of air vent spaces, AirAssure can also reduce the risk of pathogens traveling between spaces in a building, further protecting a greater number of people.
In addition to offices and healthcare facilities, this is vital for schools and senior living facilities as they are being asked to create more isolation rooms to prevent the spread of infections.
Reducing air leakage with AirAssure is an easy way to retrofit existing rooms and is available with our popular Sustain and Total Acoustics solutions.
Now in a complementary way, the new patented scientifically proven VidaShield system pairs an active ultraviolet air purification system with Armstrong ceiling panels to provide cleaner, safer air in any commercial space.
An unobtrusive drop in ceiling system that draws air into a chamber above the ceiling exposes the air to UV light, neutralizing harmful pathogens and then returning clean air to the room.
VidaShield can be used as a stand-alone solution or for even better results it can be integrated with AirAssure panels.
Together these two new solutions reduce the risk of indoor air transmission of harmful pathogens.
This pandemic is serving as a catalyst to renovating commercial spaces to create healthy and safer spaces unlike anything we've seen before.
And we believe it will continue to evolve for many years to come because healthy spaces are now essential.
These new products are just the beginning of 24/7 Defend family as we have solutions in our innovation pipeline that we will add to this family in the coming quarters.
Armstrong is a clear leader in the commercial construction market and we have been for many, many years.
As the need for healthier buildings evolves, we will be at the forefront driving positive change in our industry.
We believe these changes in the short and long-term will allow market leader like Armstrong to further grow our business and bolster our competitive advantage.
Together with our industry-leading position, our digitalization investments and now with our expanding health spaces platform Armstrong is well positioned for profitable top line growth.
With appending renovation renaissance in the medium-term and a whole new way of thinking about commercial interior spaces longer-term, we are both ready for and excited about the possibilities ahead.
And this is all aligned with our commitment to continue to deliver strong returns for our shareholders and to making a positive difference by creating healthier spaces where people live, work, learn, heal and play.

user
sees fy 2020 sales $920 million to $935 million.
sees 2020 ebitda of $320 million-$330 million.
quarterly adjusted earnings per share $1.07.

assistant