UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): December 19, 2019
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||
(Address of principal executive offices) | (Zip Code) | ||||
Registrant’s telephone number, including area code: (952 ) 835-1874
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).
Emerging growth company | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On December 19, 2019, Apogee Enterprises, Inc. issued a press release announcing its financial results for the third quarter and full year of fiscal 2020. A copy of this press release is furnished (not filed) as Exhibit 99.1 to this Current Report on Form 8-K, and is incorporated herein by reference.
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
(d) Exhibits.
Exhibit 99.1 Press Release issued by Apogee Enterprises, Inc. dated December 19, 2019.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
APOGEE ENTERPRISES, INC. | ||
By: | /s/ James S. Porter | |
James S. Porter Executive Vice President and Chief Financial Officer | ||
Dated: December 19, 2019
EXHIBIT INDEX
Exhibit Number | Description | ||||
Press Release
FOR RELEASE: December 19, 2019
APOGEE ENTERPRISES REPORTS FISCAL 2020 THIRD QUARTER RESULTS
• | Revenue of $338 million and earnings of $0.57 per diluted share |
• | Lower than expected results in Architectural Framing Systems |
• | Architectural Services backlog increases by 21 percent, to record $607 million |
• | Strong cash flow, with $36 million of cash provided by operating activities during the quarter |
• | Company provides information on cost reductions and updates full-year guidance |
MINNEAPOLIS, MN, December 19, 2019 - Apogee Enterprises, Inc. (Nasdaq: APOG) today announced its fiscal 2020 third-quarter results. Third-quarter revenue was $337.9 million, compared to $357.7 million in the third quarter of fiscal year 2019. Earnings per diluted share were $0.57, down from $0.78 in the prior year period, primarily driven by lower revenue and margins in the Architectural Framing Systems segment.
Commentary
“Third quarter results came in below our expectations, reflecting lower volumes and operational difficulties in certain of our Architectural Framing Systems businesses,” said Joseph F. Puishys, Chief Executive Officer. “Though we are reducing our current year outlook as a result, we remain confident that the company is well positioned for growth and margin expansion next year and beyond. In addition to actions to drive Apogee’s long-term success, we recognize the imperative for improved near-term performance. We are moving quickly but deliberately to address the issues in Framing Systems, including leadership changes and accelerating our efforts to drive integration and cost reductions within the segment.”
“There were several positives in the quarter that demonstrate the underlying strength of our business,” continued Mr. Puishys. “Architectural Services continued to deliver strong project execution. We were also awarded several new projects during the quarter, increasing the segment’s already record backlog by over $100 million. Large-Scale Optical delivered growth and strong profitability. We saw improved factory productivity
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
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in Architectural Glass and we successfully opened our new glass fabrication facility in Texas. Finally, our financial position remains strong, with solid cash flow in the quarter, which we used to reduce our debt.”
Mr. Puishys concluded, “Looking forward, we see opportunities for significantly improved results in our next fiscal year and beyond. We are executing a strategy to drive improvements in Architectural Framing Systems. We are making substantial progress on our cost reduction initiatives, which we expect to yield significant savings over the next year. Our record backlog in Architectural Services supports growth in that segment for at least the next two years. We also launched our new operation aimed at growing in the small project segment of the Architectural Glass market. I am confident that with the actions we are taking, Apogee is positioned for substantially improved performance in the future.”
Cost Savings Plan
The company provided additional information on its previously announced cost reduction plans. Having retained a leading advisory firm earlier this year, the company has made significant progress identifying procurement cost savings opportunities across the enterprise, in all categories of spend. As a result the company has begun moving to a centralized procurement model that better leverages the organization’s scale and drives synergies in its supply chain. Additionally, the company has initiated actions to improve operational performance and reduce costs in the Architectural Framing Systems segment.
Taken together, these cost reduction and performance improvement actions are expected to generate annual savings of $30 to $40 million when fully implemented. The company plans to utilize these savings to improve its overall operating margin. In addition, the company expects the cost reduction plan, when fully implemented, will significantly improve working capital and cash flow performance.
Segment Results
Architectural Framing Systems
Architectural Framing Systems revenue in the third quarter was $165.5 million, down from $181.3 million in the prior year period, primarily due to lower volumes from customer driven schedule delays and operational difficulties, which have been identified and are being addressed. Operating income was $6.3 million, compared to $12.9 million in the prior year quarter, reflecting lower revenue, and higher than expected manufacturing costs in two of the segment’s businesses. Segment backlog stands at $378 million, compared to $388 million a quarter ago.
Architectural Glass
Architectural Glass revenue in the third quarter was $89.4 million, down from $98.5 million in the prior year quarter, primarily due to lower volumes driven by increased competition from foreign competitors leveraging the strength of the U.S. dollar. Operating income was $4.1 million and operating margin was 4.6 percent, compared to $5.9 million and 5.9 percent respectively in last year’s third quarter, due to start-up costs related to the new manufacturing facility for the small projects growth initiative, and decreased volumes, partially offset by improved factory productivity.
Architectural Services
Architectural Services continued to have strong order flow during the quarter, with segment backlog increasing by 21 percent to a record $607 million, from $502 million last quarter. As expected, the segment’s revenue decreased to $69.0 million in the third quarter, compared to $72.8 million in the prior-year quarter, on lower volumes due to the timing of project activity. Third-quarter operating income was $6.5 million with operating margin of 9.5 percent, compared to $8.7 million and 11.9 percent respectively in the prior year period, reflecting reduced operating leverage on the decreased volume and less favorable project maturity.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
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Large-Scale Optical
Large-Scale Optical revenue was $24.4 million, up from $23.4 million in the third quarter last year, primarily due to improved sales mix. Operating income was $6.8 million, up slightly from the prior year period, and operating margin was 27.7 percent, compared to 28.4 percent in last year’s third quarter.
Financial Condition and Other Matters
Fiscal year-to-date, cash provided by operating activities is $53.6 million, compared to $70.6 million in the same period last year. The year-over-year difference primarily reflects increased working capital related to legacy EFCO projects, as disclosed in previous quarters. Capital expenditures through the first nine months of the fiscal year were $41.2 million, compared to $33.9 million in the prior year period, as the company continued to make investments in growth and productivity improvement initiatives. Fiscal year-to-date, the company has returned $33.8 million of cash to shareholders through share repurchases and dividend payments. During the quarter, the company reduced its total debt by $21.5 million to $251 million, compared to $273 million at the end of the second quarter of fiscal 2020.
Also, third quarter results included $2.6 million of net recoveries related to acquired project matters and $2.8 million of expense for legal and advisory costs related to the Cooperation Agreement announced earlier in the quarter.
Outlook
The company is adjusting its guidance for fiscal 2020, reflecting lower than expected sales volumes in Architectural Framing Systems and Architectural Glass, as well as the operational difficulties in Architectural Framing Systems in the third quarter and continued impact in the fourth quarter. The company now anticipates:
• | Full-year revenue flat to down 1 percent, compared to previous guidance of 1 to 3 percent growth. |
• | Diluted earnings per share in the range of $2.15 to $2.30, compared to previous guidance of $3.00 to $3.20 per share. |
• | Full-year tax rate of approximately 24.5 percent. |
• | Capital expenditures of approximately $55 million, compared to previous guidance of $60 to $65 million. |
Conference Call Information
The company will host a conference call today at 8:00 a.m. Central Time to discuss its financial results and outlook. This call will be webcast and is available in the Investor Relations section of the company’s website at https://www.apog.com/events-and-presentations. The webcast also will be archived for replay on the company’s website.
About Apogee Enterprises
Apogee Enterprises, Inc. (Nasdaq: APOG) delivers distinctive solutions for enclosing commercial buildings and framing art. Headquartered in Minneapolis, MN, we are a leader in architectural products and services, providing architectural glass, aluminum framing systems and installation services for buildings, 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
This release and other financial communications may contain the following non-GAAP measures:
• | Adjusted operating income, adjusted operating margin, adjusted net earnings and adjusted earnings per diluted share (“adjusted earnings per share” or “adjusted EPS”) are used by the company to provide |
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
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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. Examples of items excluded to arrive at this adjusted measure include: the impact of acquisition-related costs, amortization of short-lived acquired intangibles associated with backlog, restructuring costs, non-cash goodwill and other intangible impairment costs, and acquired project-related charges.
• | Backlog represents the dollar amount of revenues Apogee expects to recognize from firm contracts or orders. The company uses backlog as one of the metrics to evaluate sales trends in its long lead-time operating segments. |
• | 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. |
• | Adjusted EBITDA is equal to the sum of adjusted operating income depreciation and amortization expenses. We believe this metric provides useful information to investors and analysts about the Company's performance because it eliminates the effects of period-to-period changes in taxes, interest expense, and costs associated with capital investments and acquired companies. |
Management uses these non-GAAP measures to evaluate the company’s historical and prospective financial performance, measure operational profitability on a consistent basis, and provide enhanced transparency to the investment community. These 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.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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 operating results of the company, including the following: (A) global economic conditions and the cyclical nature of the North American and Latin American commercial construction industries, which impact our three architectural segments, and consumer confidence and the conditions of the U.S. economy, which impact our large-scale optical segment; (B) fluctuations in foreign currency exchange rates; (C) actions of new and existing competitors; (D) ability to effectively utilize and increase production capacity; (E) loss of key personnel and inability to source sufficient labor; (F) product performance, reliability and quality issues; (G) project management and installation issues that could result in losses on individual contracts; (H) changes in consumer and customer preference, or architectural trends and building codes; (I) dependence on a relatively small number of customers in certain business segments; (J) revenue and operating results that could differ from market expectations; (K) self-insurance risk related to a material product liability or other event for which the company is liable; (L) dependence on information technology systems and information security threats; (M) cost of compliance with and changes in environmental regulations; (N) commodity price fluctuations, trade policy impacts, and supply availability; and (O) integration of recent acquisitions and management of acquired contracts. 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 of operations. 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, 2019 and in subsequent filings with the U.S. Securities and Exchange Commission.
Contact
Jeff Huebschen
Vice President, Investor Relations & Communications
952.487.7538
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
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ir@apog.com
Apogee Enterprises, Inc. | ||||||||||||||||||||||
Consolidated Condensed Statements of Income | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Thirteen | Thirteen | Thirty-Nine | Thirty-Nine | |||||||||||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||||||||||
In thousands, except per share amounts | November 30, 2019 | December 1, 2018 | % Change | November 30, 2019 | December 1, 2018 | % Change | ||||||||||||||||
Net sales | $ | 337,916 | $ | 357,718 | (6 | )% | $ | 1,050,340 | $ | 1,056,382 | (1 | )% | ||||||||||
Cost of sales | 263,606 | 273,628 | (4 | )% | 808,856 | 807,096 | — | % | ||||||||||||||
Gross profit | 74,310 | 84,090 | (12 | )% | 241,484 | 249,286 | (3 | )% | ||||||||||||||
Selling, general and administrative expenses | 52,716 | 52,682 | — | % | 169,274 | 167,224 | 1 | % | ||||||||||||||
Operating income | 21,594 | 31,408 | (31 | )% | 72,210 | 82,062 | (12 | )% | ||||||||||||||
Interest and other expense, net | 1,764 | 2,787 | (37 | )% | 6,577 | 6,254 | 5 | % | ||||||||||||||
Earnings before income taxes | 19,830 | 28,621 | (31 | )% | 65,633 | 75,808 | (13 | )% | ||||||||||||||
Income tax expense | 4,596 | 6,730 | (32 | )% | 15,677 | 18,030 | (13 | )% | ||||||||||||||
Net earnings | $ | 15,234 | $ | 21,891 | (30 | )% | $ | 49,956 | $ | 57,778 | (14 | )% | ||||||||||
Earnings per share - basic | $ | 0.58 | $ | 0.79 | (27 | )% | $ | 1.89 | $ | 2.06 | (8 | )% | ||||||||||
Average common shares outstanding | 26,432 | 27,836 | (5 | )% | 26,481 | 28,030 | (6 | )% | ||||||||||||||
Earnings per share - diluted | $ | 0.57 | $ | 0.78 | (27 | )% | $ | 1.87 | $ | 2.04 | (8 | )% | ||||||||||
Average common and common equivalent shares outstanding | 26,750 | 28,156 | (5 | )% | 26,776 | 28,304 | (5 | )% | ||||||||||||||
Cash dividends per common share | $ | 0.1750 | $ | 0.1575 | 11 | % | $ | 0.5250 | $ | 0.4725 | 11 | % | ||||||||||
Business Segment Information | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Thirteen | Thirteen | Thirty-Nine | Thirty-Nine | |||||||||||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||||||||||
In thousands | November 30, 2019 | December 1, 2018 | % Change | November 30, 2019 | December 1, 2018 | % Change | ||||||||||||||||
Sales | ||||||||||||||||||||||
Architectural Framing Systems | $ | 165,517 | $ | 181,306 | (9 | )% | $ | 533,432 | $ | 550,193 | (3 | )% | ||||||||||
Architectural Glass | 89,433 | 98,524 | (9 | )% | 288,862 | 263,533 | 10 | % | ||||||||||||||
Architectural Services | 69,043 | 72,828 | (5 | )% | 195,787 | 220,051 | (11 | )% | ||||||||||||||
Large-Scale Optical | 24,405 | 23,377 | 4 | % | 66,449 | 64,522 | 3 | % | ||||||||||||||
Eliminations | (10,482 | ) | (18,317 | ) | (43 | )% | (34,190 | ) | (41,917 | ) | (18 | )% | ||||||||||
Total | $ | 337,916 | $ | 357,718 | (6 | )% | $ | 1,050,340 | $ | 1,056,382 | (1 | )% | ||||||||||
Operating income (loss) | ||||||||||||||||||||||
Architectural Framing Systems | $ | 6,345 | $ | 12,903 | (51 | )% | $ | 34,141 | $ | 43,554 | (22 | )% | ||||||||||
Architectural Glass | 4,092 | 5,851 | (30 | )% | 16,951 | 9,168 | 85 | % | ||||||||||||||
Architectural Services | 6,533 | 8,659 | (25 | )% | 15,082 | 21,435 | (30 | )% | ||||||||||||||
Large-Scale Optical | 6,754 | 6,628 | 2 | % | 15,561 | 15,845 | (2 | )% | ||||||||||||||
Corporate and other | (2,130 | ) | (2,633 | ) | (19 | )% | (9,525 | ) | (7,940 | ) | 20 | % | ||||||||||
Total | $ | 21,594 | $ | 31,408 | (31 | )% | $ | 72,210 | $ | 82,062 | (12 | )% | ||||||||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
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Apogee Enterprises, Inc. | ||||||||
Consolidated Condensed Balance Sheets | ||||||||
(Unaudited) | ||||||||
In thousands | November 30, 2019 | March 2, 2019 | ||||||
Assets | ||||||||
Current assets | $ | 393,590 | $ | 371,898 | ||||
Net property, plant and equipment | 326,418 | 315,823 | ||||||
Other assets | 429,783 | 380,447 | ||||||
Total assets | $ | 1,149,791 | $ | 1,068,168 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities | $ | 228,102 | $ | 227,512 | ||||
Current debt | 155,400 | — | ||||||
Long-term debt | 95,856 | 245,724 | ||||||
Other liabilities | 155,454 | 98,615 | ||||||
Shareholders' equity | 514,979 | 496,317 | ||||||
Total liabilities and shareholders' equity | $ | 1,149,791 | $ | 1,068,168 | ||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
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Consolidated Statement of Cash Flows | ||||||||
(Unaudited) | ||||||||
Thirty-Nine | Thirty-Nine | |||||||
Weeks Ended | Weeks Ended | |||||||
In thousands | November 30, 2019 | December 1, 2018 | ||||||
Net earnings | $ | 49,956 | $ | 57,778 | ||||
Depreciation and amortization | 34,681 | 38,378 | ||||||
Share-based compensation | 4,617 | 4,724 | ||||||
Proceeds from new markets tax credit transaction, net of deferred costs | — | 8,850 | ||||||
Other, net | 8,983 | 7,302 | ||||||
Changes in operating assets and liabilities | ||||||||
Receivables | (5,288 | ) | 9,291 | |||||
Inventories | 2,474 | 4,398 | ||||||
Costs and earnings on contracts in excess of billings | (17,156 | ) | (54,569 | ) | ||||
Accounts payable and accrued expenses | (22,457 | ) | (20,072 | ) | ||||
Billings in excess of costs and earnings on uncompleted contracts | 4,901 | 14,558 | ||||||
Refundable and accrued income taxes | (6,159 | ) | 1,831 | |||||
Other, net | (951 | ) | (1,825 | ) | ||||
Net cash provided by operating activities | 53,601 | 70,644 | ||||||
Capital expenditures | (41,176 | ) | (33,867 | ) | ||||
Proceeds on sale of property | 591 | 12,332 | ||||||
Purchases of marketable securities | (4,201 | ) | (9,006 | ) | ||||
Sales/maturities of marketable securities | 4,867 | 5,813 | ||||||
Other, net | (1,523 | ) | (2,209 | ) | ||||
Net cash used by investing activities | (41,442 | ) | (26,937 | ) | ||||
Borrowings on line of credit | 108,000 | 294,500 | ||||||
Proceeds from issuance of term debt | 150,000 | — | ||||||
Payments on line of credit | (252,500 | ) | (278,000 | ) | ||||
Repurchase and retirement of common stock | (20,010 | ) | (23,313 | ) | ||||
Dividends paid | (13,808 | ) | (13,180 | ) | ||||
Other, net | (2,584 | ) | (1,178 | ) | ||||
Net cash used by financing activities | (30,902 | ) | (21,171 | ) | ||||
(Decrease) increase in cash and cash equivalents | (18,743 | ) | 22,536 | |||||
Effect of exchange rates on cash | 32 | (498 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of year | 29,241 | 19,359 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 10,530 | $ | 41,397 | ||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
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Apogee Enterprises, Inc. | ||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Adjusted Net Earnings and Adjusted Earnings per Diluted Common Share | ||||||||||||||||
Thirteen | Thirteen | Thirty-Nine | Thirty-Nine | |||||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||||
In thousands | November 30, 2019 | December 1, 2018 | November 30, 2019 | December 1, 2018 | ||||||||||||
Net earnings | $ | 15,234 | $ | 21,891 | $ | 49,956 | $ | 57,778 | ||||||||
Cooperation agreement advisory costs | 2,776 | — | 2,776 | — | ||||||||||||
Acquired project matters | (2,635 | ) | — | (2,635 | ) | — | ||||||||||
Amortization of short-lived acquired intangibles | — | 717 | — | 4,655 | ||||||||||||
Acquired project profits (1) | — | (637 | ) | — | (1,651 | ) | ||||||||||
Income tax impact on above adjustments | (33 | ) | (19 | ) | (34 | ) | (715 | ) | ||||||||
Adjusted net earnings | $ | 15,342 | $ | 21,952 | $ | 50,063 | $ | 60,067 | ||||||||
Thirteen | Thirteen | Thirty-Nine | Thirty-Nine | |||||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||||
November 30, 2019 | December 1, 2018 | November 30, 2019 | September 1, 2018 | |||||||||||||
Earnings per diluted common share | $ | 0.57 | $ | 0.78 | $ | 1.87 | $ | 2.04 | ||||||||
Cooperation agreement advisory costs | 0.10 | — | 0.10 | — | ||||||||||||
Acquired project matters | (0.10 | ) | — | (0.10 | ) | — | ||||||||||
Amortization of short-lived acquired intangibles | — | 0.03 | — | 0.16 | ||||||||||||
Acquired project profits (1) | — | (0.02 | ) | — | (0.06 | ) | ||||||||||
Income tax impact on above adjustments | — | — | — | (0.03 | ) | |||||||||||
Adjusted earnings per diluted common share | $ | 0.57 | $ | 0.78 | $ | 1.87 | $ | 2.12 | ||||||||
(1) Adjustment for profits recognized during fiscal 2019 on contracts that were acquired with the purchase of EFCO. | ||||||||||||||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
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Adjusted Operating Income and Adjusted Operating Margin | ||||||||||||||||||
Thirteen Weeks Ended November 30, 2019 | ||||||||||||||||||
Framing Systems Segment | Corporate | Consolidated | ||||||||||||||||
In thousands | Operating income | Operating margin | Operating loss | Operating income | Operating margin | |||||||||||||
Operating income (loss) | $ | 6,345 | 3.8 | % | $ | (2,130 | ) | $ | 21,594 | 6.4 | % | |||||||
Cooperation agreement advisory costs | — | — | 2,776 | 2,776 | 0.8 | |||||||||||||
Acquired project matters | — | — | (2,635 | ) | (2,635 | ) | (0.8 | ) | ||||||||||
Adjusted operating income (loss) | $ | 6,345 | 3.8 | % | $ | (1,989 | ) | $ | 21,735 | 6.4 | % | |||||||
Thirteen Weeks Ended December 1, 2018 | ||||||||||||||||||
Framing Systems Segment | Corporate | Consolidated | ||||||||||||||||
In thousands | Operating income | Operating margin | Operating loss | Operating income | Operating margin | |||||||||||||
Operating income (loss) | $ | 12,903 | 7.1 | % | $ | (2,633 | ) | $ | 31,408 | 8.8 | % | |||||||
Amortization of short-lived acquired intangibles | 717 | 0.4 | — | 717 | 0.2 | |||||||||||||
Acquired project profits (1) | — | — | (637 | ) | (637 | ) | (0.2 | ) | ||||||||||
Adjusted operating income (loss) | $ | 13,620 | 7.5 | % | $ | (3,270 | ) | $ | 31,488 | 8.8 | % | |||||||
Thirty-Nine Weeks Ended November 30, 2019 | ||||||||||||||||||
Framing Systems Segment | Corporate | Consolidated | ||||||||||||||||
In thousands | Operating income | Operating margin | Operating loss | Operating income | Operating margin | |||||||||||||
Operating income (loss) | $ | 34,141 | 6.4 | % | $ | (9,525 | ) | $ | 72,210 | 6.9 | % | |||||||
Cooperation agreement advisory costs | — | — | 2,776 | 2,776 | 0.3 | |||||||||||||
Acquired project matters | — | — | (2,635 | ) | (2,635 | ) | (0.3 | ) | ||||||||||
Adjusted operating income (loss) | $ | 34,141 | 6.4 | % | $ | (9,384 | ) | $ | 72,351 | 6.9 | % | |||||||
Thirty-Nine Weeks Ended December 1, 2018 | ||||||||||||||||||
Framing Systems Segment | Corporate | Consolidated | ||||||||||||||||
In thousands | Operating income | Operating margin | Operating loss | Operating income | Operating margin | |||||||||||||
Operating income (loss) | $ | 43,554 | 7.9 | % | $ | (7,940 | ) | $ | 82,062 | 7.8 | % | |||||||
Amortization of short-lived acquired intangibles | 4,655 | 0.8 | — | 4,655 | 0.4 | |||||||||||||
Acquired project profits (1) | — | — | (1,651 | ) | (1,651 | ) | (0.2 | ) | ||||||||||
Adjusted operating income (loss) | $ | 48,209 | 8.8 | % | $ | (9,591 | ) | $ | 85,066 | 8.0 | % | |||||||
(1) Adjustment for profits recognized during fiscal 2019 on contracts that were acquired with the purchase of EFCO. | ||||||||||||||||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
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EBITDA and Adjusted EBITDA | ||||||||||||||||
Thirteen | Thirteen | Thirty-Nine | Thirty-Nine | |||||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||||
In thousands | November 30, 2019 | December 1, 2018 | November 30, 2019 | December 1, 2018 | ||||||||||||
Net earnings | $ | 15,234 | $ | 21,891 | $ | 49,956 | $ | 57,778 | ||||||||
Income tax expense | 4,596 | 6,730 | 15,677 | 18,030 | ||||||||||||
Interest and other expense, net | 1,764 | 2,787 | 6,577 | 6,254 | ||||||||||||
Depreciation and amortization | 11,922 | 11,921 | 34,681 | 38,378 | ||||||||||||
EBITDA | $ | 33,516 | $ | 43,329 | $ | 106,891 | $ | 120,440 | ||||||||
Cooperation agreement advisory costs | 2,776 | — | 2,776 | — | ||||||||||||
Acquired project matters | (2,635 | ) | — | (2,635 | ) | — | ||||||||||
Acquired project profits (1) | — | (637 | ) | — | (1,651 | ) | ||||||||||
Adjusted EBITDA | $ | 33,657 | $ | 42,692 | $ | 107,032 | $ | 118,789 | ||||||||
(1) Adjustment for profits recognized during fiscal 2019 on contracts that were acquired with the purchase of EFCO. | ||||||||||||||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com