Stock Groups

Armstrong Flooring Soars 40% on News of Exploring a Sale, Securing New Loan -Breaking

by Mike Robinson

[ad_1]

© Reuters

By Dhirendra Tripathi

Investing.com – Armstrong Flooring stock (NYSE:) climbed 40% in Monday’s pre-market tradingThe company announced that they are exploring strategic alternatives and selling the business.

According to the company, Houlihan Lokey Capital has been retained by it for possible options that could maximize shareholder value. To achieve its operational and strategic goals, the flooring manufacturer said that it had secured $35M in term loans from lenders. You can apply for the loan through June.

AFI suffered losses in several quarters due to the impact of the pandemic on demand for its floor products. While the margins were also affected by high-priced raw materials, the company was able to absorb the cost through price hikes. In this period, clients’ receivables also increased.

The company’s adjusted net loss nearly doubled to $60million in the nine months ending September 30. The adjusted net loss was $59million on net sales $585million in December 2020. This was after the firm had suffered an adjustment loss of $40million in 2019.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]