- Net sales decrease 3.2% to $342 million
- Operating margin improves to 12.3%; adjusted operating margin
improves by 110 bps to 12.6%
- Diluted EPS of $1.40; adjusted diluted EPS increases 6% to
$1.44
- Year-to-date cash flow from operations improves to $64
million
- Raising full-year EPS outlook
Apogee Enterprises, Inc. (Nasdaq: APOG) today reported
its results for the second quarter of fiscal 2025. The Company
reported the following selected financial results:
Three Months Ended
(Unaudited, $ in thousands, except per
share amounts)
August 31, 2024
August 26, 2023
% Change
Net Sales
$
342,440
$
353,675
(3.2)%
Operating income
$
41,965
$
40,553
3.5%
Operating margin
12.3
%
11.5
%
Diluted earnings per share
$
1.40
$
1.52
(7.9)%
Additional Non-GAAP Measures1
Adjusted operating income
$
43,144
$
40,553
6.4%
Adjusted operating margin
12.6
%
11.5
%
Adjusted diluted earnings per share
$
1.44
$
1.36
5.9%
Adjusted EBITDA
$
53,122
$
51,145
3.9%
Adjusted EBITDA margin
15.5
%
14.5
%
Ty R. Silberhorn, Chief Executive Officer stated, “Our team
achieved another strong quarter of profitability, delivering
improved operating margins, adjusted EPS growth, and increased
operating cash flow, despite volume pressure. This quarter’s
results continue to demonstrate the sustainable improvements we’ve
driven through executing our strategy. Our stronger operating
foundation, improved cost structure, and increased mix of
differentiated offerings are all contributing to our results.”
Mr. Silberhorn continued, “The momentum we’ve established in the
business, combined with the recently announced acquisition of UW
Solutions, position us for continued success as we move forward. We
are excited to welcome their employees to our team and look forward
to working with them to build a powerful new growth engine for our
Company. We expect meaningful opportunities to utilize the
capabilities of the combined business to help drive our long-term
growth.”
Consolidated Results (Second Quarter Fiscal 2025 compared
to Second Quarter Fiscal 2024)
- Net sales decreased 3.2% to $342.4 million, primarily driven by
lower volume, partially offset by improved pricing and mix.
- Gross margin improved 140 basis points to 28.4%, primarily
driven by improved pricing, a more favorable mix of projects in
Architectural Services, favorable material costs, and lower
insurance-related costs, partially offset by the unfavorable sales
leverage impact of lower volume, higher compensation and benefit
expense, and $0.9 million of restructuring costs associated with
Project Fortify.
- Selling, general and administrative (SG&A) expenses as a
percent of net sales increased 70 basis points to 16.2%, primarily
due to higher incentive compensation expense and the unfavorable
sales leverage impact of lower volume.
- Operating income increased to $42.0 million, and operating
margin was 12.3%. Adjusted operating income grew 6.4% to $43.1
million and adjusted operating margin improved by 110 basis points
to 12.6%. The higher adjusted operating margin was primarily driven
by improved pricing, a more favorable mix of projects in
Architectural Services, favorable material costs, and lower
insurance-related costs, partially offset by the impact of higher
incentive compensation expense and the unfavorable sales leverage
impact of lower volume.
- Interest expense was $1.1 million, compared to $2.2 million,
primarily driven by lower average debt levels, partially offset by
the impact of the write-off of unamortized financing fees related
to the previous credit facility.
- Diluted earnings per share (EPS) was $1.40, compared to $1.52.
Adjusted diluted EPS grew 5.9% to $1.44, primarily driven by higher
adjusted operating income and lower interest expense.
Segment Results (Second Quarter Fiscal 2025 Compared to
Second Quarter Fiscal 2024)
Architectural Framing Systems
Architectural Framing Systems net sales were $141.4 million,
compared to $158.8 million, primarily reflecting reduced volume due
to exiting certain lower-margin product lines as part of Project
Fortify, and lower end-market demand. Operating income was $17.1
million, which included $0.9 million of restructuring charges
related to Project Fortify. Adjusted operating income was $18.1
million, or 12.8% of net sales, compared to $21.1 million, or 13.3%
of net sales. The lower adjusted operating margin was primarily
driven by the unfavorable sales leverage impact of lower volume and
a less favorable mix, partially offset by favorable material
costs.
Architectural Glass
Architectural Glass net sales were $90.1 million, compared to
$94.1 million, reflecting reduced volume due to lower end-market
demand, partially offset by improved pricing and product mix.
Operating income increased to $21.1 million, or 23.4% of net sales,
compared to $17.4 million, or 18.5% of net sales. The 490 basis
point improvement in operating margin was primarily driven by
improved pricing and product mix, and lower operating costs,
partially offset by the unfavorable sales leverage impact of lower
volume.
Architectural Services
Architectural Services net sales grew 11.3% to $98.0 million,
primarily due to a more favorable mix of projects and increased
volume. Operating income improved to $6.1 million, or 6.3% of net
sales, which included $0.3 million of restructuring charges related
to Project Fortify. Adjusted operating income increased to $6.4
million, or 6.5% of net sales, compared to $3.5 million, or 4.0% of
net sales. The 250 basis point improvement in adjusted operating
margin was primarily driven by a more favorable mix of projects,
partially offset by higher compensation-related expenses and higher
lease expense. Segment backlog2 at the end of the quarter was
$792.1 million, compared to $866.9 million at the end of the first
quarter.
Large-Scale Optical
Large-Scale Optical net sales were $19.8 million, compared to
$23.6 million, primarily reflecting lower volume in the retail
channel, partially offset by a more favorable mix. Operating income
was $3.8 million, or 19.1% of net sales, compared to $4.7 million,
or 19.7% of net sales. The 60 basis point decline in operating
margin primarily reflects the unfavorable sales leverage impact of
lower volume, partially offset by improved mix and cost
savings.
Corporate and Other
Corporate and other expense was $6.2 million, compared to $6.1
million. The increase was primarily driven by higher compensation
and benefit costs, partially offset by lower insurance-related
expenses.
Financial Condition
Net cash provided by operating activities in the second quarter
improved to $58.7 million, compared to $41.3 million in the
prior-year period. Fiscal year to date, net cash provided by
operating activities increased to $64.1 million, compared to $62.6
million last year, primarily driven by higher net earnings. Capital
expenditures through the first half of the fiscal year were $15.7
million, compared to $15.1 million last year. Fiscal year to date,
the Company has returned $25.9 million of cash to shareholders
through share repurchases and dividend payments. Quarter-end
long-term debt was $62.0 million, with a Consolidated Leverage
Ratio3 (as per the Company’s credit agreement) of 0.1x.
Fiscal 2025 Outlook
The Company continues to expect a full-year net sales decline in
the range of 4% to 7%. This range includes approximately 2
percentage points of decline related to fiscal 2025 reverting to a
52-week year, and approximately 1 percentage point of decline
related to the actions of Project Fortify to eliminate certain
lower-margin product and service offerings.
The Company is increasing its outlook for full-year diluted EPS
to a range of $4.81 to $5.08 and adjusted diluted EPS to a range of
$4.90 to $5.204. The Company continues to expect the impact of the
reversion to a 52-week year will reduce adjusted diluted EPS by
approximately $0.20 compared to fiscal 2024 and that there will be
no material impact to adjusted diluted EPS related to the adverse
net sales impact of Project Fortify.
Assuming closing of the UW Solutions acquisition on November 1,
2024, the Company expects incremental net sales of approximately
$30 million and an expects a decrease in adjusted diluted EPS of
approximately $0.10, primarily due to increased interest and
amortization expense related to the acquisition. These impacts are
not included in the updated 2025 outlook provided in this earnings
release.
The Company continues to expect a total of $15 million to $16
million of pre-tax charges in connection with Project Fortify,
leading to updated annualized cost savings of $13 million to $14
million. The Company continues to expect approximately 60% of these
savings will be realized in fiscal 2025, and the remainder in
fiscal 2026, with approximately 70% of the savings to be realized
in Architectural Framing Systems, 20% in Architectural Services,
and 10% in Corporate and Other, with the plan to be substantially
complete in the third quarter of fiscal 2025.
The Company continues to expect an effective tax rate of
approximately 24.5%, and capital expenditures between $40 to $50
million.
Conference Call Information
The Company will host a conference call today at 8:00 a.m.
Central Time to discuss this earnings release. This call will be
webcast and is available in the Investor Relations section of the
Company’s website, along with presentation slides, at
https://www.apog.com/events-and-presentations. A replay and
transcript of the webcast will be available on the Company’s
website following the conference call.
About Apogee Enterprises
Apogee Enterprises, Inc. (Nasdaq: APOG) is a leading provider of
architectural products and services for enclosing buildings, and
high-performance glass and acrylic products used for preservation,
energy conservation, and enhanced viewing. Headquartered in
Minneapolis, MN, our portfolio of industry-leading products and
services includes high-performance architectural glass, windows,
curtainwall, storefront and entrance systems, integrated project
management and installation services, as well as value-added glass
and acrylic for custom picture framing and displays. For more
information, visit www.apog.com.
Use of Non-GAAP Financial Measures
Management uses non-GAAP measures to evaluate the Company’s
historical and prospective financial performance, measure
operational profitability on a consistent basis, as a factor in
determining executive compensation, and to provide enhanced
transparency to the investment community. Non-GAAP measures should
be viewed in addition to, and not as a substitute for, the reported
financial results of the Company prepared in accordance with GAAP.
Other companies may calculate these measures differently, limiting
the usefulness of the measures for comparison with other companies.
This release and other financial communications may contain the
following non-GAAP measures:
- Adjusted operating income, adjusted operating margin, adjusted
net earnings, adjusted effective tax rate, and adjusted diluted EPS
are used by the Company to provide meaningful supplemental
information about its operating performance by excluding amounts
that are not considered part of core operating results to enhance
comparability of results from period to period.
- Adjusted EBITDA represents adjusted net earnings before
interest, taxes, depreciation, and amortization. The Company
believes adjusted EBITDA and adjusted EBITDA margin metrics provide
useful information to investors and analysts about the Company’s
core operating performance.
- Free cash flow is defined as net cash provided by operating
activities, minus capital expenditures. The Company considers this
measure an indication of its financial strength. However, free cash
flow does not fully reflect the Company’s ability to freely deploy
generated cash, as it does not reflect, for example, required
payments on indebtedness and other fixed obligations.
- Consolidated Leverage Ratio is a defined term as per the
Company’s credit agreement and is calculated as Consolidated Funded
Indebtedness minus Unrestricted Cash as per the Company's credit
agreement at the end of the current period, divided by Consolidated
EBITDA per the Company's credit agreement (calculated as EBITDA
plus certain non-cash charges and allowed addbacks, less certain
non-cash income, plus the pro forma effect of acquisitions and
certain pro forma run-rate cost savings for acquisitions and
dispositions, as applicable for the trailing twelve months ended as
of the current period). The Company is unable to present a
quantitative reconciliation of forward-looking expected
Consolidated Leverage Ratio to its most directly comparable
forward-looking GAAP financial measure because such information is
not available, and management cannot reliably predict all the
necessary components of such GAAP financial measure without
unreasonable effort or expense. In addition, the Company believes
such reconciliation would imply a degree of precision that would be
confusing or misleading to investors.
- Backlog is an operating measure used by management to assess
future potential sales revenue. Backlog is defined as the dollar
amount of signed contracts or firm orders, generally as a result of
a competitive bidding process, which is expected to be recognized
as revenue. It is most meaningful for the Architectural Services
segment due to the longer-term nature of their projects. Backlog is
not a term defined under U.S. GAAP and is not a measure of contract
profitability. Backlog should not be used as the sole indicator of
future revenue because the Company has a substantial number of
projects with short lead times that book-and-bill within the same
reporting period that are not included in backlog.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. The words “may,”
“believe,” “expect,” “anticipate,” “intend,” “estimate,”
“forecast,” “project,” “should,” “will,” “continue,” and similar
expressions are intended to identify “forward-looking statements”.
These statements reflect Apogee management’s expectations or
beliefs as of the date of this release. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. All forward-looking statements are qualified by
factors that may affect the results, performance, financial
condition, prospects and opportunities of the Company, including
the following: (A) North American and global economic conditions,
including the cyclical nature of the North American and Latin
American non-residential construction industries and the potential
impact of an economic downturn or recession; (B) U.S. and global
instability and uncertainty arising from events outside of our
control; (C) actions of new and existing competitors; (D) departure
of key personnel and ability to source sufficient labor; (E)
product performance, reliability and quality issues; (F) project
management and installation issues that could affect the
profitability of individual contracts; (G) dependence on a
relatively small number of customers in one operating segment; (H)
financial and operating results that could differ from market
expectations; (I) self-insurance risk related to a material product
liability or other events for which the Company is liable; (J)
maintaining our information technology systems and potential
cybersecurity threats; (K) cost of regulatory compliance, including
environmental regulations; (L) supply chain disruptions, including
fluctuations in the availability and cost of materials used in our
products and the impact of trade policies and regulations,
including potential future tariffs; (M) integration of acquisitions
and management of acquired contracts; (N) impairment of goodwill or
indefinite-lived intangible assets; (O) our ability to successfully
manage and implement our enterprise strategy; (P) our ability to
maintain effective internal controls over financial reporting; (Q)
our judgements regarding the accounting for tax positions and the
resolution of tax disputes; (R) the impact of cost inflation and
interest rates; and (S) the impact of changes in capital and credit
markets on our liquidity and cost of capital. The Company cautions
investors that actual future results could differ materially from
those described in the forward-looking statements and that other
factors may in the future prove to be important in affecting the
Company’s results, performance, prospects, or opportunities. New
factors emerge from time to time, and it is not possible for
management to predict all such factors, nor can it assess the
impact of each factor on the business or the extent to which any
factor, or a combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements. More information concerning potential factors that
could affect future financial results is included in the Company’s
Annual Report on Form 10-K for the fiscal year ended March 2, 2024,
and in subsequent filings with the U.S. Securities and Exchange
Commission.
____________________________
1 Adjusted operating income, adjusted
operating margin, adjusted diluted earnings per share (EPS),
adjusted EBITDA, and adjusted EBITDA margin are non-GAAP financial
measures. See Use of Non-GAAP Financial Measures and
reconciliations to the most directly comparable GAAP measures later
in this press release.
2 Backlog is a non-GAAP financial measure.
See Use of Non-GAAP Financial Measures later in this press release
for more information.
3 Consolidated Leverage ratio is a
non-GAAP financial measure. See Use of Non-GAAP Financial Measures
later in this press release for more information.
4 See reconciliation of Fiscal 2025
estimated adjusted diluted earnings per share to GAAP diluted
earnings per share later in this press release.
Apogee Enterprises,
Inc.
Consolidated Condensed
Statements of Income
(Unaudited)
Three Months Ended
Six Months Ended
(In thousands, except per share
amounts)
August 31, 2024
August 26, 2023
% Change
August 31, 2024
August 26, 2023
% Change
Net sales
$
342,440
$
353,675
(3.2
)%
$
673,956
$
715,388
(5.8
)%
Cost of sales
245,119
258,304
(5.1
)%
477,780
527,031
(9.3
)%
Gross profit
97,321
95,371
2.0
%
196,176
188,357
4.2
%
Selling, general and administrative
expenses
55,356
54,818
1.0
%
112,830
114,037
(1.1
)%
Operating income
41,965
40,553
3.5
%
83,346
74,320
12.1
%
Interest expense, net
1,140
2,230
(48.9
)%
1,590
4,266
(62.7
)%
Other income, net
290
4,900
(94.1
)%
433
4,612
(90.6
)%
Earnings before income taxes
41,115
43,223
(4.9
)%
82,189
74,666
10.1
%
Income tax expense
10,549
9,896
6.6
%
20,612
17,763
16.0
%
Net earnings
$
30,566
$
33,327
(8.3
)%
$
61,577
$
56,903
8.2
%
Basic earnings per share
$
1.40
$
1.54
(9.1
)%
$
2.83
$
2.61
8.4
%
Diluted earnings per share
$
1.40
$
1.52
(7.9
)%
$
2.80
$
2.57
8.9
%
Weighted average basic shares
outstanding
21,762
21,708
0.2
%
21,793
21,813
(0.1
)%
Weighted average diluted shares
outstanding
21,875
21,962
(0.4
)%
21,985
22,105
(0.5
)%
Cash dividends per common share
$
0.25
$
0.24
4.2
%
$
0.50
$
0.48
4.2
%
% of Sales
Gross margin
28.4
%
27.0
%
29.1
%
26.3
%
Selling, general and administrative
expenses
16.2
%
15.5
%
16.7
%
15.9
%
Operating margin
12.3
%
11.5
%
12.4
%
10.4
%
Apogee Enterprises,
Inc.
Business Segment
Information
(Unaudited)
Three Months Ended
Six Months Ended
(In thousands)
August 31, 2024
August 26, 2023
% Change
August 31, 2024
August 26, 2023
% Change
Segment net sales
Architectural Framing Systems
$
141,350
$
158,801
(11.0
)%
$
274,522
$
322,963
(15.0
)%
Architectural Glass
90,101
94,096
(4.2
)%
176,804
191,298
(7.6
)%
Architectural Services
98,018
88,064
11.3
%
197,045
177,482
11.0
%
Large-Scale Optical
19,832
23,645
(16.1
)%
41,036
46,101
(11.0
)%
Intersegment eliminations
(6,861
)
(10,931
)
(37.2
)%
(15,451
)
(22,456
)
(31.2
)%
Net sales
$
342,440
$
353,675
(3.2
)%
$
673,956
$
715,388
(5.8
)%
Segment operating income (loss)
Architectural Framing Systems
$
17,141
$
21,060
(18.6
)%
$
35,477
$
41,005
(13.5
)%
Architectural Glass
21,068
17,434
20.8
%
38,159
33,955
12.4
%
Architectural Services
6,130
3,519
74.2
%
11,753
2,923
302.1
%
Large-Scale Optical
3,793
4,663
(18.7
)%
8,639
10,188
(15.2
)%
Corporate and other
(6,167
)
(6,123
)
0.7
%
(10,682
)
(13,751
)
(22.3
)%
Operating income
$
41,965
$
40,553
3.5
%
$
83,346
$
74,320
12.1
%
Segment operating margin
Architectural Framing Systems
12.1
%
13.3
%
12.9
%
12.7
%
Architectural Glass
23.4
%
18.5
%
21.6
%
17.7
%
Architectural Services
6.3
%
4.0
%
6.0
%
1.6
%
Large-Scale Optical
19.1
%
19.7
%
21.1
%
22.1
%
Corporate and other
N/M
N/M
N/M
N/M
Operating margin
12.3
%
11.5
%
12.4
%
10.4
%
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)
August 31, 2024
March 2, 2024
Assets
Current assets
Cash and cash equivalents
$
51,024
$
37,216
Receivables, net
177,146
173,557
Inventories, net
79,591
69,240
Contract assets
49,285
49,502
Other current assets
36,742
29,124
Total current assets
393,788
358,639
Property, plant and equipment, net
240,627
244,216
Operating lease right-of-use assets
41,886
40,221
Goodwill
129,119
129,182
Intangible assets, net
64,547
66,114
Other non-current assets
47,125
45,692
Total assets
$
917,092
$
884,064
Liabilities and shareholders'
equity
Current liabilities
Accounts payable
86,035
84,755
Accrued compensation and benefits
40,901
53,801
Contract liabilities
41,655
34,755
Operating lease liabilities
12,661
12,286
Other current liabilities
57,597
59,108
Total current liabilities
238,849
244,705
Long-term debt
62,000
62,000
Non-current operating lease
liabilities
33,323
31,907
Non-current self-insurance reserves
32,055
30,552
Other non-current liabilities
44,443
43,875
Total shareholders’ equity
506,422
471,025
Total liabilities and shareholders’
equity
$
917,092
$
884,064
Apogee Enterprises,
Inc.
Consolidated Statement of Cash
Flows
(Unaudited)
Six Months Ended
(In thousands)
August 31, 2024
August 26, 2023
Operating Activities
Net earnings
$
61,577
$
56,903
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
19,664
20,661
Share-based compensation
5,642
4,483
Deferred income taxes
2,016
(4,281
)
Loss (gain) on disposal of assets
291
(62
)
Settlement of New Markets Tax Credit
transaction
—
(4,687
)
Non-cash lease expense
5,844
6,153
Other, net
1,002
(1,121
)
Changes in operating assets and
liabilities:
Receivables
(3,698
)
(8,238
)
Inventories
(10,509
)
5,841
Contract assets
238
8,992
Accounts payable
1,335
(3,529
)
Accrued compensation and benefits
(12,823
)
(17,567
)
Contract liabilities
6,987
4,244
Operating lease liability
(5,748
)
(6,608
)
Accrued income taxes
(224
)
4,292
Other current assets and liabilities
(7,462
)
(2,912
)
Net cash provided by operating
activities
64,132
62,564
Investing Activities
Capital expenditures
(15,662
)
(15,018
)
Proceeds from sales of property, plant and
equipment
608
143
Purchases of marketable securities
(2,246
)
(969
)
Sales/maturities of marketable
securities
1,850
775
Net cash used by investing activities
(15,450
)
(15,069
)
Financing Activities
Proceeds from revolving credit
facilities
95,201
174,853
Repayments on revolving credit
facilities
(95,201
)
(199,000
)
Payments of debt issuance costs
(3,485
)
—
Repurchase of common stock
(15,061
)
(11,821
)
Dividends paid
(10,821
)
(10,467
)
Other, net
(5,266
)
(3,705
)
Net cash used by financing activities
(34,633
)
(50,140
)
Effect of exchange rates on cash
(241
)
(405
)
Increase (decrease) in cash and cash
equivalents
13,808
(3,050
)
Cash and cash equivalents at beginning of
period
37,216
21,473
Cash and cash equivalents at end of
period
$
51,024
$
18,423
Apogee Enterprises,
Inc.
Reconciliation of Non-GAAP
Financial Measures
Adjusted Net Earnings and
Adjusted Diluted Earnings per Share
(Unaudited)
Three Months Ended
Six Months Ended
(In thousands)
August 31, 2024
August 26, 2023
August 31, 2024
August 26, 2023
Net earnings
$
30,566
$
33,327
$
61,577
$
56,903
Restructuring charges (1)
1,179
—
2,301
—
NMTC settlement gain (2)
—
(4,687
)
—
(4,687
)
Income tax impact on above adjustments
(3)
(289
)
1,148
(564
)
1,148
Adjusted net earnings
$
31,456
$
29,788
$
63,314
$
53,364
Three Months Ended
Six Months Ended
August 31, 2024
August 26, 2023
August 31, 2024
August 26, 2023
Diluted earnings per share
$
1.40
$
1.52
$
2.80
$
2.57
Restructuring charges (1)
0.05
—
0.10
—
NMTC settlement gain (2)
—
(0.21
)
—
(0.21
)
Income tax impact on above adjustments
(3)
(0.01
)
0.05
(0.03
)
0.05
Adjusted diluted earnings per share
$
1.44
$
1.36
$
2.88
$
2.41
Weighted average diluted shares
outstanding
21,875
21,962
21,985
22,105
(1)
Restructuring charges related to Project
Fortify, including $0.5 million of employee termination costs, $0.1
million of contract termination costs and $0.6 million of other
costs incurred in the second quarter of fiscal 2025, and $0.9
million of employee termination costs, $0.1 million of contract
termination costs and $1.3 million of other costs incurred in the
first six months 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 income, net.
(3)
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)
Three Months Ended August 31,
2024
(In thousands)
Architectural Framing
Systems
Architectural Glass
Architectural Services
LSO
Corporate and Other
Consolidated
Operating income (loss)
$
17,141
$
21,068
$
6,130
$
3,793
$
(6,167
)
$
41,965
Restructuring charges (1)
916
—
258
—
5
1,179
Adjusted operating income (loss)
$
18,057
$
21,068
$
6,388
$
3,793
$
(6,162
)
$
43,144
Operating margin
12.1
%
23.4
%
6.3
%
19.1
%
N/M
12.3
%
Restructuring charges (1)
0.6
—
0.3
—
N/M
0.3
Adjusted operating margin
12.8
%
23.4
%
6.5
%
19.1
%
N/M
12.6
%
Three Months Ended August 26,
2023
(In thousands)
Architectural Framing
Systems
Architectural
Glass
Architectural Services
LSO
Corporate and Other
Consolidated
Operating income (loss)
$
21,060
$
17,434
$
3,519
$
4,663
$
(6,123
)
$
40,553
Operating margin
13.3
%
18.5
%
4.0
%
19.7
%
N/M
11.5
%
(1)
Restructuring charges related to Project
Fortify, including $0.5 million of employee termination costs, $0.1
million of contract termination costs and $0.6 million of other
costs incurred in the second quarter of fiscal 2025.
Apogee Enterprises,
Inc.
Reconciliation of Non-GAAP
Financial Measures
Adjusted Operating Income
(Loss) and Adjusted Operating Margin
(Unaudited)
Six Months Ended August 31,
2024
(In thousands)
Architectural Framing
Systems
Architectural Glass
Architectural Services
LSO
Corporate and Other
Consolidated
Operating income (loss)
$
35,477
$
38,159
$
11,753
$
8,639
$
(10,682
)
$
83,346
Restructuring charges (1)
1,914
—
258
—
129
2,301
Adjusted operating income (loss)
$
37,391
$
38,159
$
12,011
$
8,639
$
(10,553
)
$
85,647
Operating margin
12.9
%
21.6
%
6.0
%
21.1
%
N/M
12.4
%
Restructuring charges (1)
0.7
—
0.1
—
N/M
0.3
Adjusted operating margin
13.6
%
21.6
%
6.1
%
21.1
%
N/M
12.7
%
Six Months Ended August 26,
2023
(In thousands)
Architectural Framing
Systems
Architectural Glass
Architectural Services
LSO
Corporate and Other
Consolidated
Operating income (loss)
$
41,005
$
33,955
$
2,923
$
10,188
$
(13,751
)
$
74,320
Operating margin
12.7
%
17.7
%
1.6
%
22.1
%
N/M
10.4
%
(1)
Restructuring charges related to Project
Fortify, including $0.9 million of employee termination costs, $0.1
million of contract termination costs and $1.3 million of other
costs incurred in the first six months of fiscal 2025.
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
Six Months Ended
(In thousands)
August 31, 2024
August 26, 2023
August 31, 2024
August 26, 2023
Net earnings
$
30,566
$
33,327
$
61,577
$
56,903
Income tax expense
10,549
9,896
20,612
17,763
Interest expense, net
1,140
2,230
1,590
4,266
Depreciation and amortization
9,688
10,379
19,664
20,661
EBITDA
$
51,943
$
55,832
$
103,443
$
99,593
Restructuring charges (1)
1,179
—
2,301
—
NMTC settlement gain (2)
—
(4,687
)
—
(4,687
)
Adjusted EBITDA
$
53,122
$
51,145
$
105,744
$
94,906
EBITDA Margin
15.2
%
15.8
%
15.3
%
13.9
%
Adjusted EBITDA Margin
15.5
%
14.5
%
15.7
%
13.3
%
(1)
Restructuring charges related to Project
Fortify, including $0.5 million of employee termination costs, $0.1
million of contract termination costs and $0.6 million of other
costs incurred in the second quarter of fiscal 2025, and $0.9
million of employee termination costs, $0.1 million of contract
termination costs and $1.3 million of other costs incurred in the
first six months 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 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)
Fiscal Year Ending March 1,
2025
Low Range
High Range
Diluted earnings per share
$
4.81
$
5.08
Restructuring charges (1)
0.12
0.16
Income tax impact on above adjustments per
share
(0.03
)
(0.04
)
Adjusted diluted earnings per share
$
4.90
$
5.20
(1)
Restructuring charges related to Project
Fortify.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241004303713/en/
Jeff Huebschen Vice President, Investor Relations &
Communications 952.487.7538 ir@apog.com
Grafico Azioni Apogee Enterprises (NASDAQ:APOG)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Apogee Enterprises (NASDAQ:APOG)
Storico
Da Feb 2024 a Feb 2025
