APOGEE ENTERPRISES INC
For the period ended Apr 18, 2024. Filed Apr 18, 2024.
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Apr 18, 2024 · Filed Apr 18, 2024
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APOG$45.77-0.3%Stored close · as of Nov 6, 2026
Contents
EX-99.1 · Contact
Contact
Jeff Huebschen
Vice President, Investor Relations & Communications
952.487.7538
ir@apog.com
| Apogee Enterprises, Inc. | ||||||
|---|---|---|---|---|---|---|
| Consolidated Condensed Statements of Income | ||||||
| (Unaudited) | ||||||
| Three Months Ended · Twelve Months Ended | ||||||
| March 2, 2024 · February 25, 2023 · March 2, 2024 · February 25, 2023 | ||||||
| (In thousands, except per share amounts) | (14 weeks) | (13 weeks) | % Change | (53 weeks) | (52 weeks) | % Change |
| Net sales | $361,840 | $344,105 | 5.2% | $1,416,942 | $1,440,696 | (1.6)% |
| Cost of sales | 273,374 | 265,993 | 2.8% | 1,049,814 | 1,105,423 | (5.0)% |
| Gross profit | 88,466 | 78,112 | 13.3% | 367,128 | 335,273 | 9.5% |
| Selling, general and administrative expenses | 66,600 | 52,373 | 27.2% | 233,295 | 209,485 | 11.4% |
| Operating income | 21,866 | 25,739 | (15.0)% | 133,833 | 125,788 | 6.4% |
| Interest expense, net | 949 | 2,166 | (56.2)% | 6,669 | 7,660 | (12.9)% |
| Other expense (income), net | 1,633 | (528) | N/M | (2,089) | 1,507 | N/M |
| Earnings before income taxes | 19,284 | 24,101 | (20.0)% | 129,253 | 116,621 | 10.8% |
| Income tax expense | 3,548 | 3,879 | (8.5)% | 29,640 | 12,514 | 136.9% |
| Net earnings | $15,736 | $20,222 | (22.2)% | $99,613 | $104,107 | (4.3)% |
| Basic earnings per share | $0.72 | $0.92 | (21.7)% | $4.55 | $4.73 | (3.8)% |
| Diluted earnings per share | $0.71 | $0.91 | (22.0)% | $4.51 | $4.64 | (2.8)% |
| Weighted average basic shares outstanding | 21,819 | 21,900 | (0.4)% | 21,871 | 22,007 | (0.6)% |
| Weighted average diluted shares outstanding | 22,102 | 22,326 | (1.0)% | 22,091 | 22,416 | (1.4)% |
| Cash dividends per common share | $0.2500 | $0.2400 | 4.2% | $0.9700 | $0.9000 | 7.8% |
| Apogee Enterprises, Inc. | |||||||
|---|---|---|---|---|---|---|---|
| Business Segment Information | |||||||
| (Unaudited) | |||||||
| Three Months Ended · Twelve Months Ended | |||||||
| March 2, 2024 · February 25, 2023 · March 2, 2024 · February 25, 2023 | |||||||
| (In thousands) · (14 weeks) · (13 weeks) · % Change · (53 weeks) · (52 weeks) · % Change | |||||||
| Segment net sales | |||||||
| Architectural Framing Systems | $139,188 | $148,606 | (6.3)% | $601,736 | $649,778 | (7.4)% | |
| Architectural Glass | 96,187 | 81,396 | 18.2% | 378,449 | 316,554 | 19.6% | |
| Architectural Services | 106,278 | 98,476 | 7.9% | 378,422 | 410,627 | (7.8)% | |
| Large-Scale Optical | 27,113 | 27,227 | (0.4)% | 99,223 | 104,215 | (4.8)% | |
| Intersegment eliminations | (6,926) | (11,600) | (40.3)% | (40,888) | (40,478) | 1.0% | |
| Net sales | $361,840 | $344,105 | 5.2% | $1,416,942 | $1,440,696 | (1.6)% | |
| Segment operating income (loss) | |||||||
| Architectural Framing Systems | $6,847 | $15,609 | (56.1)% | $64,833 | $81,875 | (20.8)% | |
| Architectural Glass | 18,927 | 9,523 | 98.8% | 68,046 | 28,610 | 137.8% | |
| Architectural Services | 3,629 | 3,691 | (1.7)% | 11,840 | 18,140 | (34.7)% | |
| Large-Scale Optical | 6,945 | 5,750 | 20.8% | 24,233 | 25,348 | (4.4)% | |
| Corporate and other | (14,482) | (8,834) | 63.9% | (35,119) | (28,185) | 24.6% | |
| Operating income | $21,866 | $25,739 | (15.0)% | $133,833 | $125,788 | 6.4% | |
| Segment operating margin | |||||||
| Architectural Framing Systems | 4.9% | 10.5% | 10.8% | 12.6% | |||
| Architectural Glass | 19.7% | 11.7% | 18.0% | 9.0% | |||
| Architectural Services | 3.4% | 3.7% | 3.1% | 4.4% | |||
| Large-Scale Optical | 25.6% | 21.1% | 24.4% | 24.3% | |||
| Corporate and other | N/M | N/M | N/M | N/M | |||
| Operating margin | 6.0% | 7.5% | 9.4% | 8.7% | |||
Segment net sales is defined as net sales for a certain segment and includes revenue related to intersegment transactions.
Net sales intersegment eliminations are reported separately to exclude these sales from our consolidated total.
Segment operating income is equal to net sales, less cost of goods sold, SG&A, and any asset impairment charges associated with the segment.
Operating income does not include any other income or expense, interest expense or a provision for income taxes.
Segment operating income includes operating income related to intersegment sales transactions and excludes certain corporate costs that are not allocated at a segment level. We report these unallocated corporate costs separately in Corporate and Other.
| Apogee Enterprises, Inc. | ||
|---|---|---|
| Consolidated Condensed Balance Sheets | ||
| (Unaudited) | ||
| (In thousands) | March 2, 2024 | February 25, 2023 |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $37,216 | $19,924 |
| Restricted cash | — | 1,549 |
| Receivables, net | 173,557 | 197,267 |
| Inventories, net | 69,240 | 78,441 |
| Contract assets | 49,502 | 59,403 |
| Other current assets | 29,124 | 26,517 |
| Total current assets | 358,639 | 383,101 |
| Property, plant and equipment, net | 244,216 | 248,867 |
| Operating lease right-of-use assets | 40,221 | 41,354 |
| Goodwill | 129,182 | 129,026 |
| Intangible assets, net | 66,114 | 65,966 |
| Other non-current assets | 45,692 | 47,051 |
| Total assets | $884,064 | $915,365 |
| Liabilities and shareholders' equity | ||
| Current liabilities | ||
| Accounts payable | 84,755 | 86,549 |
| Accrued compensation and benefits | 53,801 | 51,651 |
| Contract liabilities | 34,755 | 28,011 |
| Operating lease liabilities | 12,286 | 11,806 |
| Other current liabilities | 59,108 | 64,532 |
| Total current liabilities | 244,705 | 242,549 |
| Long-term debt | 62,000 | 169,837 |
| Non-current operating lease liabilities | 31,907 | 33,072 |
| Non-current self-insurance reserves | 30,552 | 29,316 |
| Other non-current liabilities | 43,875 | 44,183 |
| Total shareholders’ equity | 471,025 | 396,408 |
| Total liabilities and shareholders’ equity | $884,064 | $915,365 |
| Apogee Enterprises, Inc. | ||
|---|---|---|
| Consolidated Statement of Cash Flows | ||
| (Unaudited) | ||
| Twelve Months Ended | ||
| March 2, 2024 | February 25, 2023 | |
| (In thousands) | (53 weeks) | (52 weeks) |
| Operating Activities | ||
| Net earnings | $99,613 | $104,107 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
| Depreciation and amortization | 41,588 | 42,403 |
| Share-based compensation | 9,721 | 8,656 |
| Deferred income taxes | (9,748) | (7,185) |
| Asset impairment on property, plant, and equipment | 6,195 | — |
| Loss (gain) on disposal of assets | 826 | (3,815) |
| Proceeds from New Markets Tax Credit transaction, net of deferred costs | — | 18,390 |
| Settlement of New Markets Tax Credit transaction | (4,687) | (19,523) |
| Non-cash lease expense | 11,721 | 11,878 |
| Other, net | 4,615 | 5,399 |
| Changes in operating assets and liabilities: | ||
| Receivables | 23,993 | (62,304) |
| Inventories | 9,366 | 1,731 |
| Contract assets | 9,880 | (3,380) |
| Accounts payable | (2,655) | (5,491) |
| Accrued compensation and benefits | 2,102 | (1,810) |
| Contract liabilities | 6,590 | 20,952 |
| Operating lease liability | (12,632) | (12,149) |
| Refundable and accrued income taxes | 6,523 | (6,976) |
| Other current assets and liabilities | 1,143 | 11,813 |
| Net cash provided by operating activities | 204,154 | 102,696 |
| Investing Activities | ||
| Capital expenditures | (43,180) | (45,177) |
| Proceeds from sales of property, plant and equipment | 293 | 7,755 |
| Purchases of marketable securities | (2,953) | — |
| Sales/maturities of marketable securities | 2,165 | 9,712 |
| Net cash used by investing activities | (43,675) | (27,710) |
| Financing Activities | ||
| Proceeds from revolving credit facilities | 196,964 | 485,879 |
| Repayment on debt | — | (151,000) |
| Repayments on revolving credit facilities | (304,817) | (327,865) |
| Repurchase of common stock | (11,821) | (74,312) |
| Dividends paid | (21,133) | (19,670) |
| Other, net | (3,800) | (4,055) |
| Net cash used by financing activities | (144,607) | (91,023) |
| Effect of exchange rates on cash | (129) | (73) |
| Increase (decrease) in cash, cash equivalents and restricted cash | 15,743 | (16,110) |
| Cash, cash equivalents and restricted cash at beginning of year | 21,473 | 37,583 |
| Cash and cash equivalents at end of year | $37,216 | $21,473 |
| Apogee Enterprises, Inc. | ||||
|---|---|---|---|---|
| Reconciliation of Non-GAAP Financial Measures | ||||
| Adjusted Net Earnings and Adjusted Diluted Earnings per Share | ||||
| (Unaudited) | ||||
| Three Months Ended | Twelve Months Ended | |||
| March 2, 2024 | February 25, 2023 | March 2, 2024 | February 25, 2023 | |
| (In thousands) | (14 weeks) | (13 weeks) | (53 weeks) | (52 weeks) |
| Net earnings | $15,736 | $20,222 | $99,613 | $104,107 |
| Restructuring charges (1) | 12,403 | — | 12,403 | — |
| NMTC settlement gain (2) | — | — | (4,687) | — |
| Worthless stock deduction and related discrete tax benefits (3) | — | (1,131) | — | (14,833) |
| Income tax impact on above adjustments | (3,039) | — | (1,890) | — |
| Adjusted net earnings | $25,100 | $19,091 | $105,439 | $89,274 |
| Three Months Ended | Twelve Months Ended | |||
| March 2, 2024 | February 25, 2023 | March 2, 2024 | February 25, 2023 | |
| (14 weeks) | (13 weeks) | (53 weeks) | (52 weeks) | |
| Diluted earnings per share | $0.71 | $0.91 | $4.51 | $4.64 |
| Restructuring charges (1) | 0.56 | — | 0.56 | — |
| NMTC settlement gain (2) | — | — | (0.21) | — |
| Worthless stock deduction and related discrete tax benefits (3) | — | (0.05) | — | (0.66) |
| Income tax impact on above adjustments | (0.14) | — | (0.09) | — |
| Adjusted diluted earnings per share | $1.14 | $0.86 | $4.77 | $3.98 |
| Weighted average diluted shares outstanding | 22,102 | 22,326 | 22,091 | 22,416 |
| (1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. |
| (2) | Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net. |
| (3) | Worthless stock deduction and related discrete income tax benefits from the impairment of the Sotawall business in fiscal 2023 which was recorded in income tax expense. |
| Apogee Enterprises, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||
| Adjusted Operating Income (Loss) and Adjusted Operating Margin | ||||||||||||
| (Unaudited) | ||||||||||||
| (In thousands) · Architectural Framing Systems · Architectural Glass · Architectural Services · LSO · Corporate and Other · Consolidated | ||||||||||||
| Operating income (loss) | $6,847 | $18,927 | $3,629 | $6,945 | $(14,482) | $21,866 | ||||||
| Restructuring charges (1) | 5,970 | — | 2,526 | — | 3,907 | 12,403 | ||||||
| Adjusted operating income (loss) | $12,817 | $18,927 | $6,155 | $6,945 | $(10,575) | $34,269 | ||||||
| Operating margin | 4.9% | 19.7% | 3.4% | 25.6% | N/M | 6.0% | ||||||
| Restructuring charges (1) | 4.3 | — | 2.4 | — | N/M | 3.4 | ||||||
| Adjusted operating margin | 9.2% | 19.7% | 5.8% | 25.6% | N/M | 9.5% | ||||||
| (In thousands) | Architectural Framing Systems | Architectural Glass | Architectural Services | LSO | Corporate and Other | Consolidated | ||||||
| Operating income (loss) | $15,609 | $9,523 | $3,691 | $5,750 | $(8,834) | $25,739 | ||||||
| Operating margin | 10.5% | 11.7% | 3.7% | 21.1% | N/M | 7.5% | ||||||
| (1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. | |||||||||||
| Apogee Enterprises, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||
| Adjusted Operating Income (Loss) and Adjusted Operating Margin | ||||||||||||
| (Unaudited) | ||||||||||||
| (In thousands) · Architectural Framing Systems · Architectural Glass · Architectural Services · LSO · Corporate and Other · Consolidated | ||||||||||||
| Operating income (loss) | $64,833 | $68,046 | $11,840 | $24,233 | $(35,119) | $133,833 | ||||||
| Restructuring charges (1) | 5,970 | — | 2,526 | — | 3,907 | 12,403 | ||||||
| Adjusted operating income (loss) | $70,803 | $68,046 | $14,366 | $24,233 | $(31,212) | $146,236 | ||||||
| Operating margin | 10.8% | 18.0% | 3.1% | 24.4% | N/M | 9.4% | ||||||
| Restructuring charges (1) | 1.0 | — | 0.7 | — | N/M | 0.9 | ||||||
| Adjusted operating margin | 11.8% | 18.0% | 3.8% | 24.4% | N/M | 10.3% | ||||||
| (In thousands) | Architectural Framing Systems | Architectural Glass | Architectural Services | LSO | Corporate and Other | Consolidated | ||||||
| Operating income (loss) | $81,875 | $28,610 | $18,140 | $25,348 | $(28,185) | $125,788 | ||||||
| Operating margin | 12.6% | 9.0% | 4.4% | 24.3% | N/M | 8.7% | ||||||
| (1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. | |||||||||||
| Apogee Enterprises, Inc. | ||||
|---|---|---|---|---|
| Reconciliation of Non-GAAP Financial Measures | ||||
| Adjusted EBITDA and Adjusted EBITDA Margin(Earnings before interest, taxes, depreciation and amortization) | ||||
| (Unaudited) | ||||
| Three Months Ended | Twelve Months Ended | |||
| March 2, 2024 | February 25, 2023 | March 2, 2024 | February 25, 2023 | |
| (In thousands) | (14 weeks) | (13 weeks) | (53 weeks) | (52 weeks) |
| Net earnings | $15,736 | $20,222 | $99,613 | $104,107 |
| Income tax expense | 3,548 | 3,879 | 29,640 | 12,514 |
| Interest expense, net | 949 | 2,166 | 6,669 | 7,660 |
| Depreciation and amortization | 10,403 | 10,478 | 41,588 | 42,403 |
| EBITDA | $30,636 | $36,745 | $177,510 | $166,684 |
| Restructuring charges (1) | 12,403 | — | 12,403 | — |
| NMTC settlement gain (2) | — | — | (4,687) | — |
| Adjusted EBITDA | $43,039 | $36,745 | $185,226 | $166,684 |
| EBITDA Margin | 8.5% | 10.7% | 12.5% | 11.6% |
| Adjusted EBITDA Margin | 11.9% | 10.7% | 13.1% | 11.6% |
| (1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. |
| (2) | Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net. |
| Apogee Enterprises, Inc. | |||||
|---|---|---|---|---|---|
| Reconciliation of Non-GAAP Measure - Net Leverage Ratio | |||||
| (Unaudited) | |||||
| Net Debt (In thousands) · March 2, 2024 · February 25, 2023 | |||||
| Total debt | $62,000 | $169,837 | |||
| Less: Cash and cash equivalents | 37,216 | 19,924 | |||
| Net Debt | $24,784 | $149,913 | |||
| Trailing twelve months ending | |||||
| Adjusted EBITDA | March 2, 2024 | February 25, 2023 | |||
| Net earnings | $99,613 | $104,107 | |||
| Income tax expense | 29,640 | 12,514 | |||
| Interest expense, net | 6,669 | 7,660 | |||
| Depreciation and amortization | 41,588 | 42,403 | |||
| EBITDA | $177,510 | $166,684 | |||
| Restructuring charges (1) | 12,403 | — | |||
| NMTC settlement gain (2) | (4,687) | — | |||
| Adjusted EBITDA | $185,226 | $166,684 | |||
| Net Leverage | March 2, 2024 | February 25, 2023 | |||
| Net Debt | $24,784 | $149,913 | |||
| Adjusted EBITDA | 185,226 | 166,684 | |||
| Net Leverage Ratio | 0.1 | x | 0.9 | x | |
| (1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. |
| (2) | Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net. |
| Apogee Enterprises, Inc. | |||
|---|---|---|---|
| Reconciliation of Non-GAAP Measure - Adjusted Return on Invested Capital Reconciliation | |||
| (Unaudited) | |||
| Twelve Months Ended | |||
| (In thousands, except percentages) · March 2, 2024 · February 25, 2023 | |||
| Operating income | $133,833 | $125,788 | |
| Restructuring charges (1) | 12,403 | — | |
| Adjusted operating income | $146,236 | $125,788 | |
| Tax adjustment (2) | 35,828 | 30,818 | |
| Adjusted operating income after taxes | $110,408 | $94,970 | |
| Average invested capital (3) | $668,555 | $686,124 | |
| Adjusted return on invested capital (ROIC) (4) | 16.5% | 13.8% | |
| (1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. | ||
| (2) | Income tax impact calculated using an estimated statutory tax rate of 24.5%, which reflects the estimated blended statutory tax rate for the jurisdiction in which the charge or income occurred. | ||
| (3) | Average invested capital represents a trailing five quarter average of total assets less average current liabilities (excluding current portion long-term debt). | ||
| (4) | Adjusted ROIC calculated by dividing adjusted operating income after taxes by average invested capital | ||
| Apogee Enterprises, Inc. | ||
|---|---|---|
| Fiscal 2025 Outlook | ||
| Reconciliation of Fiscal 2025 outlook of estimated Diluted Earnings per Share to Adjusted Diluted Earnings per Share | ||
| (Unaudited) | ||
| Low Range | High Range | |
| Diluted earnings per share | $4.25 | $4.55 |
| Restructuring charges (1) | 0.13 | 0.26 |
| Income tax impact on above adjustments per share | (0.03) | (0.06) |
| Adjusted diluted earnings per share | $4.35 | $4.75 |
| (1) | Restructuring charges related to Project Fortify. |
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