Armstrong World Industries, Inc. (AWI), a leading company in ceiling and wall solutions, has made a significant announcement today. The company's Board of Directors has given the green light for an additional $500 million to be used for share repurchases under the existing program. This move increases the total authorized amount for share buybacks to an impressive $1.7 billion, extending the program until December 31, 2026. Alongside this exciting development, the Board of Directors has also declared a cash dividend for shareholders.

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Share Repurchase Authorization and Dividend Declaration

The recent announcement from Armstrong World Industries signals their strong confidence in their business and financial prospects. By approving an additional $500 million for share buybacks, the company aims to utilize its existing share repurchase program to benefit shareholders and reinforce its commitment to long-term value creation. Moreover, this extension of the program reflects the company's belief in its capacity to generate adjusted free cash flow.

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Chris Calzaretta, Senior Vice President, and Chief Financial Officer of Armstrong World Industries, expressed his pleasure regarding the increased share repurchase authorization. This move, combined with their regular quarterly dividend, showcases the company's commitment to its capital allocation priorities, ultimately benefiting its shareholders.

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Flexible Repurchase Program

Armstrong World Industries' share repurchase program allows the company to buy back its common stock at management's discretion. The program offers flexibility, as the company can make these purchases through various means, such as open market transactions, block trades, and privately-negotiated deals, including Rule 10b5-1 plans. The flexibility ensures that the buybacks will be conducted in a manner that aligns with market conditions, business requirements, and regulatory standards.

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No Obligation to Purchase Specific Amounts

It is essential to note that the expanded share repurchase program does not impose any obligation on the company to purchase specific amounts of common stock. This lack of commitment provides Armstrong World Industries with the freedom to adjust its buyback activity based on evolving circumstances and changing market conditions. The company also maintains the right to suspend or discontinue the share repurchase program at any time without prior notice, depending on its needs and priorities.

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Dividend Payment and Capital Allocation

In addition to the buyback announcement, the Board of Directors has declared a cash dividend of $0.254 per share of common stock. Shareholders on record as of August 3, 2023, will receive the dividend payment on August 17, 2023. The future declaration and payment of dividends and capital allocations will remain at the discretion of the Board of Directors and will be subject to the company's financial position, operational results, and cash flow, among other factors.