Exhibit 99.1 ARMSTRONG SUMMARY OF FINANCIAL PROJECTIONS - -------------------------------------------------------------------------------- ($ IN MILLIONS) ARMSTRONG FINANCIALS 2006E 2007E ------------ ------------ Net Sales $3,689.7 $3,879.5 Gross Profit 831.6 919.4 % of Sales 22.5% 23.7% SG&A Expense 635.2 653.8 % of Sales 17.2% 16.9% EBIT(a) 228.5 299.5 % Margin 6.2% 7.7% Adjusted EBITDA(b) 367.0 411.0 % Margin 9.9% 10.6% Capital Expenditures 134.3 134.5 % of Sales 3.6% 3.5% POTENTIAL EBITDA ADJUSTMENTS: - ----------------------------- LTIP(c) $17.1 $17.5 Retention(c) 3.7 3.8 Pension Credit(d) (37.8) (49.0) Gain on Sale of Assets(d) (15.0) 0.0 Restructuring Charges(c) 13.7 (e) 4.7 Other Charges(f) 21.0 0.0 ------- ------- TOTAL ADJUSTMENTS $2.7 ($23.0) (a) Net Operating Income as reported. (b) Includes adjustments for Gain on Sale of Assets, LTIP & Retention cash payments, Pension Credit, Restructuring Charges, and Other Charges. (c) Reflects non-recurring cash item adjustments to EBITDA. (d) Reflects non-cash item adjustments to EBITDA. (e) Includes $3.9 million of cash Restructuring Charges and $9.8 million of non-cash charges. (f) Other charges related to cost reduction initiatives.