APOGEE ENTERPRISES INC
For the period ended Jun 27, 2024. Filed Jun 27, 2024.
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Jun 27, 2024 · Filed Jun 27, 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 | |||
| (In thousands, except per share amounts) | June 1, 2024 | May 27, 2023 | % Change |
| Net sales | $331,516 | $361,713 | (8.3)% |
| Cost of sales | 232,661 | 268,727 | (13.4)% |
| Gross profit | 98,855 | 92,986 | 6.3% |
| Selling, general and administrative expenses | 57,474 | 59,219 | (2.9)% |
| Operating income | 41,381 | 33,767 | 22.5% |
| Interest expense, net | 450 | 2,036 | (77.9)% |
| Other expense (income), net | (143) | 288 | N/M |
| Earnings before income taxes | 41,074 | 31,443 | 30.6% |
| Income tax expense | 10,063 | 7,867 | 27.9% |
| Net earnings | $31,011 | $23,576 | 31.5% |
| Basic earnings per share | $1.42 | $1.08 | 31.5% |
| Diluted earnings per share | $1.41 | $1.05 | 34.3% |
| Weighted average basic shares outstanding | 21,823 | 21,883 | (0.3)% |
| Weighted average diluted shares outstanding | 22,061 | 22,386 | (1.5)% |
| Cash dividends per common share | $0.25 | $0.24 | 4.2% |
| Apogee Enterprises, Inc. | ||||
|---|---|---|---|---|
| Business Segment Information | ||||
| (Unaudited) | ||||
| Three Months Ended | ||||
| (In thousands) · June 1, 2024 · May 27, 2023 · % Change | ||||
| Segment net sales | ||||
| Architectural Framing Systems | $133,172 | $164,162 | (18.9)% | |
| Architectural Glass | 86,703 | 97,202 | (10.8)% | |
| Architectural Services | 99,027 | 89,418 | 10.7% | |
| Large-Scale Optical | 21,204 | 22,456 | (5.6)% | |
| Intersegment eliminations | (8,590) | (11,525) | (25.5)% | |
| Net sales | $331,516 | $361,713 | (8.3)% | |
| Segment operating income (loss) | ||||
| Architectural Framing Systems | $18,336 | $19,945 | (8.1)% | |
| Architectural Glass | 17,091 | 16,521 | 3.5% | |
| Architectural Services | 5,623 | (596) | N/M | |
| Large-Scale Optical | 4,846 | 5,525 | (12.3)% | |
| Corporate and other | (4,515) | (7,628) | (40.8)% | |
| Operating income | $41,381 | $33,767 | 22.5% | |
| Segment operating margin | ||||
| Architectural Framing Systems | 13.8% | 12.1% | ||
| Architectural Glass | 19.7% | 17.0% | ||
| Architectural Services | 5.7% | (0.7)% | ||
| Large-Scale Optical | 22.9% | 24.6% | ||
| Corporate and other | N/M | N/M | ||
| Operating margin | 12.5% | 9.3% | ||
| N/M - Indicates calculation is not meaningful | ||||
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.
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.
Operating income does not include any other income or expense, interest expense or a provision for income taxes.
| Apogee Enterprises, Inc. | ||
|---|---|---|
| Consolidated Condensed Balance Sheets | ||
| (Unaudited) | ||
| (In thousands) | June 1, 2024 | March 2, 2024 |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $30,363 | $37,216 |
| Receivables, net | 183,270 | 173,557 |
| Inventories, net | 80,495 | 69,240 |
| Contract assets | 43,957 | 49,502 |
| Other current assets | 34,417 | 29,124 |
| Total current assets | 372,502 | 358,639 |
| Property, plant and equipment, net | 242,292 | 244,216 |
| Operating lease right-of-use assets | 38,726 | 40,221 |
| Goodwill | 129,042 | 129,182 |
| Intangible assets, net | 64,981 | 66,114 |
| Other non-current assets | 41,436 | 45,692 |
| Total assets | $888,979 | $884,064 |
| Liabilities and shareholders' equity | ||
| Current liabilities | ||
| Accounts payable | 82,841 | 84,755 |
| Accrued compensation and benefits | 28,900 | 53,801 |
| Contract liabilities | 36,377 | 34,755 |
| Operating lease liabilities | 12,090 | 12,286 |
| Other current liabilities | 66,895 | 59,108 |
| Total current liabilities | 227,103 | 244,705 |
| Long-term debt | 77,000 | 62,000 |
| Non-current operating lease liabilities | 30,462 | 31,907 |
| Non-current self-insurance reserves | 30,859 | 30,552 |
| Other non-current liabilities | 43,600 | 43,875 |
| Total shareholders’ equity | 479,955 | 471,025 |
| Total liabilities and shareholders’ equity | $888,979 | $884,064 |
| Apogee Enterprises, Inc. | ||
|---|---|---|
| Consolidated Statement of Cash Flows | ||
| (Unaudited) | ||
| Three Months Ended | ||
| (In thousands) | June 1, 2024 | May 27, 2023 |
| Operating Activities | ||
| Net earnings | $31,011 | $23,576 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
| Depreciation and amortization | 9,976 | 10,282 |
| Share-based compensation | 2,704 | 2,178 |
| Deferred income taxes | 3,466 | (165) |
| Loss (gain) on disposal of assets | 22 | (27) |
| Non-cash lease expense | 2,895 | 2,714 |
| Other, net | (925) | (432) |
| Changes in operating assets and liabilities: | ||
| Receivables | (9,845) | (13,476) |
| Inventories | (11,337) | (2,068) |
| Contract assets | 5,511 | 14,368 |
| Accounts payable | (1,871) | (8,390) |
| Accrued compensation and benefits | (24,850) | (13,312) |
| Contract liabilities | 1,648 | 8,158 |
| Operating lease liability | (3,007) | (3,101) |
| Accrued income taxes | 6,535 | 7,590 |
| Other current assets and liabilities | (6,480) | (6,608) |
| Net cash provided by operating activities | 5,453 | 21,287 |
| Investing Activities | ||
| Capital expenditures | (7,229) | (7,398) |
| Proceeds from sales of property, plant and equipment | 40 | 66 |
| Purchases of marketable securities | (740) | — |
| Sales/maturities of marketable securities | 600 | 400 |
| Net cash used by investing activities | (7,329) | (6,932) |
| Financing Activities | ||
| Proceeds from revolving credit facilities | 30,000 | 105,852 |
| Repayments on revolving credit facilities | (15,000) | (105,000) |
| Repurchase of common stock | (15,061) | (5,193) |
| Dividends paid | — | (5,245) |
| Other, net | (4,865) | (1,677) |
| Net cash used by financing activities | (4,926) | (11,263) |
| Effect of exchange rates on cash | (51) | 77 |
| (Decrease) increase in cash and cash equivalents | (6,853) | 3,169 |
| Cash and cash equivalents at beginning of period | 37,216 | 21,473 |
| Cash and cash equivalents at end of period | $30,363 | $24,642 |
| Non-cash Activity | ||
| Dividends declared but not yet paid | $5,409 | $— |
| Apogee Enterprises, Inc. | ||
|---|---|---|
| Reconciliation of Non-GAAP Financial Measures | ||
| Adjusted Net Earnings and Adjusted Diluted Earnings per Share | ||
| (Unaudited) | ||
| Three Months Ended | ||
| (In thousands) | June 1, 2024 | May 27, 2023 |
| Net earnings | $31,011 | $23,576 |
| Restructuring charges (1) | 1,122 | — |
| Income tax impact on above adjustments (2) | (275) | — |
| Adjusted net earnings | $31,858 | $23,576 |
| Three Months Ended | ||
| June 1, 2024 | May 27, 2023 | |
| Diluted earnings per share | $1.41 | $1.05 |
| Restructuring charges (1) | 0.05 | — |
| Income tax impact on above adjustments (2) | (0.01) | — |
| Adjusted diluted earnings per share | $1.44 | $1.05 |
| Weighted average diluted shares outstanding | 22,061 | 22,386 |
| (1) | Restructuring charges related to Project Fortify, including $0.4 million of employee termination costs and $0.7 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 jurisdictions in which the charge or income occurred. |
| 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) | $18,336 | $17,091 | $5,623 | $4,846 | $(4,515) | $41,381 | ||||||
| Restructuring charges (1) | 998 | — | — | — | 124 | 1,122 | ||||||
| Adjusted operating income (loss) | $19,334 | $17,091 | $5,623 | $4,846 | $(4,391) | $42,503 | ||||||
| Operating margin | 13.8% | 19.7% | 5.7% | 22.9% | N/M | 12.5% | ||||||
| Restructuring charges (1) | 0.7 | — | — | — | N/M | 0.3 | ||||||
| Adjusted operating margin | 14.5% | 19.7% | 5.7% | 22.9% | N/M | 12.8% | ||||||
| (In thousands) | Architectural Framing Systems | Architectural Glass | Architectural Services | LSO | Corporate and Other | Consolidated | ||||||
| Operating income (loss) | $19,945 | $16,521 | $(596) | $5,525 | $(7,628) | $33,767 | ||||||
| Operating margin | 12.1% | 17.0% | (0.7)% | 24.6% | N/M | 9.3% | ||||||
| (1) | Restructuring charges related to Project Fortify, including $0.4 million of employee termination costs and $0.7 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 | ||
| (In thousands) | June 1, 2024 | May 27, 2023 |
| Net earnings | $31,011 | $23,576 |
| Income tax expense | 10,063 | 7,867 |
| Interest expense, net | 450 | 2,036 |
| Depreciation and amortization | 9,976 | 10,282 |
| EBITDA | $51,500 | $43,761 |
| Restructuring charges (1) | 1,122 | — |
| Adjusted EBITDA | $52,622 | $43,761 |
| EBITDA Margin | 15.5% | 12.1% |
| Adjusted EBITDA Margin | 15.9% | 12.1% |
| (1) | Restructuring charges related to Project Fortify, including $0.4 million of employee termination costs and $0.7 million of other costs. |
| Apogee Enterprises, Inc. | |||||
|---|---|---|---|---|---|
| Reconciliation of Non-GAAP Measure - Net Leverage Ratio | |||||
| (Unaudited) | |||||
| Net Debt (In thousands) · June 1, 2024 · March 2, 2024 | |||||
| Total debt | $77,000 | $62,000 | |||
| Less: Cash and cash equivalents | 30,363 | 37,216 | |||
| Net Debt | $46,637 | $24,784 | |||
| Trailing twelve months ending | |||||
| Adjusted EBITDA | June 1, 2024 | March 2, 2024 | |||
| Net earnings | $107,048 | $99,613 | |||
| Income tax expense | 31,836 | 29,640 | |||
| Interest expense, net | 5,083 | 6,669 | |||
| Depreciation and amortization | 41,282 | 41,588 | |||
| EBITDA | $185,249 | $177,510 | |||
| Restructuring charges (1) | 13,525 | 12,403 | |||
| NMTC settlement gain (2) | (4,687) | (4,687) | |||
| Adjusted EBITDA | $194,087 | $185,226 | |||
| Net Leverage | June 1, 2024 | March 2, 2024 | |||
| Net Debt | $46,637 | $24,784 | |||
| Adjusted EBITDA | 194,087 | 185,226 | |||
| Net Leverage Ratio | 0.2 | x | 0.1 | 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 incurred in fiscal 2024 and $0.4 million of employee termination costs and $0.7 million of other costs incurred in the first quarter of fiscal 2025. |
| (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. | ||
|---|---|---|
| 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 | $4.56 | $4.88 |
| Restructuring charges (1) | 0.12 | 0.16 |
| Income tax impact on above adjustments per share | (0.03) | (0.04) |
| Adjusted diluted earnings per share | $4.65 | $5.00 |
| (1) | Restructuring charges related to Project Fortify. |
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