Apogee Enterprises Reports Record Fiscal 2023 Second Quarter Results

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  • Second-quarter revenue grows 14 percent, to record $372 million
  • Second-quarter earnings increase to $1.68 per diluted share, which includes a tax benefit of $0.62 per share
  • Adjusted earnings increase to record $1.06 per diluted share
  • Full year adjusted earnings guidance increased to a range of $3.75 to $4.05 per diluted share

MINNEAPOLIS--(BUSINESS WIRE)--Sep. 20, 2022-- Apogee Enterprises, Inc. (Nasdaq: APOG) today announced its fiscal 2023 second quarter results. Second-quarter revenue grew 14.2 percent to a record $372.1 million, compared to $325.8 million in the second quarter of fiscal year 2022, led by growth in Architectural Framing Systems and Architectural Services. Earnings per diluted share increased to $1.68, compared to a net loss of $(0.08) per diluted share in the prior-year quarter. Earnings in the quarter benefited from a $13.7 million income tax deduction for a worthless stock loss related to the Sotawall business. Earnings in the prior-year quarter included $20.8 million of pre-tax restructuring costs. Adjusted earnings, which exclude the impact of the tax deduction and restructuring costs, increased to a record $1.06 per diluted share, compared to $0.53 in the second quarter of fiscal 2022.1

“This was another strong quarter for Apogee, with improving execution driving record results,” said Ty R. Silberhorn, Chief Executive Officer. “We’re now a year into implementing Apogee’s new enterprise strategy and we are continuing to build momentum in the company’s transformation. While a lot of work remains to reach our goals, I am proud of the progress our team has made in just twelve months since we launched our new strategy.”

Mr. Silberhorn continued, “Our effort to become the economic leader in our target markets is taking hold. We are improving execution and driving productivity gains across the company. We’re building a more competitive cost structure and strengthening our ability to deliver differentiated products and services that provide more value for customers. These actions have driven significant margin expansion and positioned us for continued profitable growth as we move forward.”

Segment Results

Architectural Framing Systems

Architectural Framing Systems second-quarter revenue grew 26 percent, to $172.9 million, from $137.0 million in the prior-year period, primarily driven by inflation-related pricing actions and a more favorable sales mix. Second quarter operating income increased to $20.5 million, compared to $8.4 million in last year’s second quarter, which included $2.0 million of restructuring costs. Excluding the restructuring costs, adjusted operating income2 in the prior year was $10.4 million. The increased income in this year’s second quarter was driven by improved pricing and mix, and the benefits from restructuring actions completed last year, which combined to offset the impact of inflation. Segment backlog at the end of the quarter was $286 million, compared to $310 million at the end of the first quarter. Framing Systems’ prior year results have been recast to reflect the move of the Sotawall business to the Architectural Services segment, which was effective at the beginning of this fiscal year.

Architectural Services

Architectural Services revenue grew 11 percent to $106.7 million, up from $96.4 million in the prior-year quarter, driven by increased volume from executing projects in backlog. Operating income was $5.5 million, compared to $7.1 million in the prior-year period, reflecting increased costs for investments to support future growth, partially offset by the higher volume. Segment backlog increased to $785 million, up from $681 million at the end of the first quarter, driven by significant new project wins in the transportation and healthcare markets. Prior-year results for Architectural Services have been recast to reflect the move of the Sotawall business into the segment, which was effective at the beginning of this fiscal year.

Architectural Glass

Architectural Glass revenue in the second quarter was $77.4 million, compared to $79.4 million in the prior-year quarter, primarily reflecting lower volume, partially offset by improved pricing. Operating income increased to $6.5 million, compared to an operating loss of $(17.0) million in last year’s second quarter, which included $17.4 million of restructuring costs. Excluding the restructuring costs, adjusted operating income in the prior year was $0.4 million. The increased income in this year’s second quarter was driven by improved pricing, productivity gains, and the positive impact of restructuring actions completed last year, which combined to offset the impact of inflation.

Large-Scale Optical

Large-Scale Optical revenue grew 7 percent to $25.2 million, compared to $23.5 million in the second quarter last year, primarily driven by higher volume. Operating income was $6.0 million, up from $5.5 million in last year’s second quarter, primarily reflecting higher volume and improved pricing, partially offset by cost inflation.

Financial Condition

In the second quarter, net cash provided by operating activities was $27.8 million, compared to $48.0 million in last year’s second quarter. Fiscal year to date, net cash used by operating activities is $2.6 million, compared to $54.9 million provided by operating activities in the prior-year period. The lower cash flow primarily reflects increased working capital related to revenue growth and inflation. Capital expenditures through the first half of the fiscal year were $9.3 million, compared to $10.1 million in the same period last year. Fiscal year to date, the company has returned $83.9 million of cash to shareholders through share repurchases and dividend payments, up from $32.5 million in the first half of fiscal 2022.

Quarter-end total debt was $251 million, compared to $163 million at the end of last year’s second quarter. Cash and cash equivalents were $22.1 million, compared to $61.8 million at the end of the second quarter of fiscal 2022.

Outlook

Based on second-quarter results and increasing confidence in its outlook, the company is raising its guidance for full-year adjusted earnings to a range of $3.75 to $4.05 per diluted share, up from the previously announced range of $3.50 to $3.90. The company expects full year revenue growth of 8 to 10 percent, primarily driven by growth in Architectural Framing Systems. The company now expects full-year capital expenditures of approximately $40 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 provide a business update. 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. The webcast also will be archived for replay on the company’s website.

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

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 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 in recent reporting periods include: impairment charges, restructuring costs, acquired project-related charges, gains or losses from significant asset sales, income tax deductions for worthless stock losses, and COVID-19 related expenditures.
  • 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.
  • Net debt is a non-GAAP measure defined as total debt (current debt plus long-term debt) on our consolidated balance sheet, less cash and cash equivalents. The company considers this measure helpful to evaluate our capital structure and financial leverage, and our ability to fund investing and financing activities.
  • Adjusted EBITDA represents net income before interest, taxes, depreciation, amortization and certain non-cash, non-recurring and other adjustment items. We believe this metric provides useful information to investors and analysts about the Company's performance because it eliminates the effects of certain items that are unusual in nature or whose fluctuation from period to period do not necessarily correspond to changes in the operations of the company.

A reconciliation of non-GAAP guidance on Adjusted EPS to GAAP guidance is not available on a forward-looking basis without unreasonable effort due to the uncertainty of the magnitude and timing of future adjustments. These adjustments may include, among others, the impact of such items as impairment charges, restructuring costs, acquired project-related charges, and gains or losses from significant asset sales. Accordingly, the company is unable to provide a reconciliation of Adjusted EPS to the most directly comparable GAAP financial measure or address the probable significance of the unavailable information, which could be material to the company's future financial results computed in accordance with GAAP.

An operational measure that management uses is backlog. Backlog represents 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. 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 segment revenue because we have a substantial number of projects with short lead times that book-and-bill within the same reporting period and are not included in backlog.

Management uses 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. 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. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should” 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) uncertainty regarding the potential impacts and duration of the COVID-19 pandemic; (B) U.S. and global economic conditions, including the cyclical nature of the North American and Latin American commercial construction industries and the potential impact of an economic downturn or recession; (C) fluctuations in foreign currency exchange rates; (D) actions of new and existing competitors; (E) ability to effectively utilize and increase production capacity; (F) departure of key personnel and ability to source sufficient labor; (G) product performance, reliability and quality issues; (H) project management and installation issues that could affect the profitability of individual contracts; (I) changes in consumer and customer preference, or architectural trends and building codes; (J) dependence on a relatively small number of customers in certain business segments; (K) revenue and operating results that could differ from market expectations; (L) self-insurance risk related to a material product liability or other events for which the company is liable; (M) dependence on information technology systems and information security threats; (N) cost of compliance with and changes in environmental regulations; (O) supply chain disruptions, including fluctuations in the availability and cost of materials used in our products and the impact of trade policies and regulations; (P) integration of acquisitions and management of acquired contracts; (Q) impairment of goodwill or indefinite-lived intangible assets; (R) our ability to execute our strategy to become the economic leader in our target markets and build an operating model to enable profitable growth; (S) increases in costs related to employee health care benefits; (T) risks that anticipated results from business restructuring initiatives will not be achieved, implementation of cost-saving and business restructuring initiatives may take more time or cost more than expected, the anticipated cost savings may be materially less than anticipated, and the restructuring may result in disruption in delivery of services to our customers; (U) U.S. and global instability and uncertainty arising from events outside of our control; and (V) the impact of cost inflation and rising interest rates. . 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 February 26, 2022 and in subsequent filings with the U.S. Securities and Exchange Commission.

_________________________________
1 Adjusted earnings and adjusted earnings per share are non-GAAP financial measures. See Use and Reconciliation of Non-GAAP Financial Measures later in this press release for more information and a reconciliation to the most directly comparable GAAP measures.

2 Adjusted operating income is a non-GAAP financial measure. See Use and Reconciliation of Non-GAAP Financial Measures later in this press release for more information and a reconciliation to the most directly comparable GAAP measures.

Apogee Enterprises, Inc.

Consolidated Condensed Statements of Income

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

(In thousands, except per share amounts)

 

August 27, 2022

 

August 28, 2021

 

% Change

 

August 27, 2022

 

August 28, 2021

 

% Change

Net sales

 

$

372,109

 

 

$

325,797

 

 

14

%

 

$

728,744

 

 

$

651,803

 

 

12

%

Cost of sales

 

 

287,173

 

 

 

277,795

 

 

3

%

 

 

558,191

 

 

 

536,091

 

 

4

%

Gross profit

 

 

84,936

 

 

 

48,002

 

 

77

%

 

 

170,553

 

 

 

115,712

 

 

47

%

Selling, general and administrative expenses

 

 

52,864

 

 

 

51,070

 

 

4

%

 

 

105,265

 

 

 

102,739

 

 

2

%

Operating income (loss)

 

 

32,072

 

 

 

(3,068

)

 

(1,145

)%

 

 

65,288

 

 

 

12,973

 

 

403

%

Interest expense, net

 

 

1,698

 

 

 

1,072

 

 

58

%

 

 

2,904

 

 

 

2,310

 

 

26

%

Other expense (income), net

 

 

173

 

 

 

(105

)

 

(265

)%

 

 

1,483

 

 

 

209

 

 

610

%

Earnings (loss) before income taxes

 

 

30,201

 

 

 

(4,035

)

 

(848

)%

 

 

60,901

 

 

 

10,454

 

 

483

%

Income tax (benefit) expense

 

 

(7,188

)

 

 

(1,919

)

 

275

%

 

 

781

 

 

 

1,753

 

 

(55

)%

Net earnings (loss)

 

$

37,389

 

 

$

(2,116

)

 

(1,867

)%

 

$

60,120

 

 

$

8,701

 

 

591

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share - basic

 

$

1.71

 

 

$

(0.08

)

 

(2,238

)%

 

$

2.72

 

 

$

0.34

 

 

700

%

Earnings (loss) per share - diluted

 

$

1.68

 

 

$

(0.08

)

 

(2,200

)%

 

$

2.66

 

 

$

0.34

 

 

682

%

Weighted average basic shares outstanding

 

 

21,860

 

 

 

25,140

 

 

(13

)%

 

 

22,129

 

 

 

25,271

 

 

(12

)%

Weighted average diluted shares outstanding

 

 

22,245

 

 

 

25,140

 

 

(12

)%

 

 

22,563

 

 

 

25,637

 

 

(12

)%

Cash dividends per common share

 

$

0.2200

 

 

$

0.2000

 

 

10

%

 

$

0.4400

 

 

$

0.4000

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Segment Information

(Unaudited)

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

(In thousands)

 

August 27, 2022

 

August 28, 2021

 

% Change

 

August 27, 2022

 

August 28, 2021

 

% Change

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Architectural Framing Systems

 

$

172,867

 

 

$

136,973

 

 

26

%

 

$

336,159

 

 

$

273,741

 

 

23

%

Architectural Services

 

 

106,732

 

 

 

96,370

 

 

11

%

 

 

210,120

 

 

 

187,102

 

 

12

%

Architectural Glass

 

 

77,352

 

 

 

79,373

 

 

(3

)%

 

 

153,617

 

 

 

162,404

 

 

(5

)%

Large-Scale Optical

 

 

25,166

 

 

 

23,543

 

 

7

%

 

 

50,328

 

 

 

47,771

 

 

5

%

Intersegment eliminations

 

 

(10,008

)

 

 

(10,462

)

 

(4

)%

 

 

(21,480

)

 

 

(19,215

)

 

12

%

Net sales

 

$

372,109

 

 

$

325,797

 

 

14

%

 

$

728,744

 

 

$

651,803

 

 

12

%

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Architectural Framing Systems

 

$

20,512

 

 

$

8,381

 

 

145

%

 

$

44,177

 

 

$

16,752

 

 

164

%

Architectural Services

 

 

5,490

 

 

 

7,139

 

 

(23

)%

 

 

8,417

 

 

 

11,365

 

 

(26

)%

Architectural Glass

 

 

6,457

 

 

 

(16,995

)

 

(138

)%

 

 

11,626

 

 

 

(14,867

)

 

(178

)%

Large-Scale Optical

 

 

5,991

 

 

 

5,483

 

 

9

%

 

 

12,489

 

 

 

11,330

 

 

10

%

Corporate and other

 

 

(6,378

)

 

 

(7,076

)

 

(10

)%

 

 

(11,421

)

 

 

(11,607

)

 

(2

)%

Operating income (loss)

 

$

32,072

 

 

$

(3,068

)

 

(1,145

)%

 

$

65,288

 

 

$

12,973

 

 

403

%

Apogee Enterprises, Inc.

Consolidated Condensed Balance Sheets

(Unaudited)

(In thousands)

 

August 27, 2022

 

February 26, 2022

Assets

 

 

 

 

Cash and cash equivalents

 

$

22,065

 

$

37,583

Restricted cash

 

 

8,684

 

 

—

Current assets

 

 

393,469

 

 

300,309

Net property, plant and equipment

 

 

232,766

 

 

249,995

Other assets

 

 

291,990

 

 

299,976

Total assets

 

$

948,974

 

$

887,863

Liabilities and shareholders' equity

 

 

 

 

Current liabilities

 

 

233,383

 

 

231,946

Current debt

 

 

—

 

 

1,000

Long-term debt

 

 

250,834

 

 

162,000

Other liabilities

 

 

108,017

 

 

106,718

Shareholders' equity

 

 

356,740

 

 

386,199

Total liabilities and shareholders' equity

 

$

948,974

 

$

887,863 

Apogee Enterprises, Inc.

Consolidated Condensed Statement of Cash Flows

(Unaudited)

 

 

Six Months Ended

(In thousands)

 

August 27, 2022

 

August 28, 2021

Net earnings

 

$

60,120

 

 

$

8,701

 

Depreciation and amortization

 

 

21,448

 

 

 

25,808

 

Share-based compensation

 

 

3,394

 

 

 

3,261

 

Asset impairment on property, plant, and equipment

 

 

—

 

 

 

15,403

 

Gain on disposal of assets

 

 

(695

)

 

 

(1,355

)

Other, net

 

 

14,538

 

 

 

2,234

 

Changes in operating assets and liabilities:

 

 

 

 

Receivables

 

 

(65,760

)

 

 

15,520

 

Inventories

 

 

(17,636

)

 

 

(3,607

)

Costs and earnings on contracts in excess of billings

 

 

840

 

 

 

3,212

 

Accounts payable and accrued expenses

 

 

(8,226

)

 

 

(10,895

)

Billings in excess of costs and earnings on uncompleted contracts

 

 

21,051

 

 

 

(2,144

)

Refundable and accrued income taxes

 

 

(20,486

)

 

 

1,981

 

Operating lease liability

 

 

(6,684

)

 

 

(6,240

)

Other, net

 

 

(4,547

)

 

 

3,028

 

Net cash (used) provided by operating activities

 

 

(2,643

)

 

 

54,907

 

Capital expenditures

 

 

(9,255

)

 

 

(10,121

)

Proceeds from sales of property, plant and equipment

 

 

4,122

 

 

 

1,292

 

Other, net

 

 

450

 

 

 

66

 

Net cash used by investing activities

 

 

(4,683

)

 

 

(8,763

)

Borrowings on line of credit

 

 

409,880

 

 

 

—

 

Repayment on debt

 

 

(151,000

)

 

 

(2,000

)

Payments on line of credit

 

 

(171,000

)

 

 

—

 

Payments on debt issuance costs

 

 

(687

)

 

 

—

 

Proceeds from exercise of stock options

 

 

—

 

 

 

4,115

 

Repurchase and retirement of common stock

 

 

(74,312

)

 

 

(22,419

)

Dividends paid

 

 

(9,602

)

 

 

(10,060

)

Other, net

 

 

(2,815

)

 

 

(1,853

)

Net cash provided (used) by financing activities

 

 

464

 

 

 

(32,217

)

(Decrease) increase in cash, cash equivalents and restricted cash

 

 

(6,862

)

 

 

13,927

 

Effect of exchange rates on cash

 

 

28

 

 

 

617

 

Cash, cash equivalents and restricted cash at beginning of year

 

 

37,583

 

 

 

47,277

 

Cash, cash equivalents and restricted cash at end of period

 

$

30,749

 

 

$

61,821 

Apogee Enterprises, Inc.

Reconciliation of Non-GAAP Financial Measures

Adjusted Net Earnings and Adjusted Earnings per Diluted Common Share

Unaudited

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

(In thousands)

 

August 27, 2022

 

August 28, 2021

 

August 27, 2022

 

August 28, 2021

Net earnings (loss)

 

$

37,389

 

 

$

(2,116

)

 

$

60,120

 

 

$

8,701

 

Worthless stock deduction(1)

 

 

(13,702

)

 

 

—

 

 

 

(13,702

)

 

 

—

 

Restructuring costs(2)

 

 

—

 

 

 

20,814

 

 

 

—

 

 

 

20,814

 

Income tax impact on above adjustments(3)

 

 

—

 

 

 

(5,203

)

 

 

—

 

 

 

(5,203

)

Adjusted net earnings

 

$

23,687

 

 

$

13,495

 

 

$

46,418

 

 

$

24,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

August 27, 2022

 

August 28, 2021

 

August 27, 2022

 

August 28, 2021

Earnings (loss) per diluted common share

 

$

1.68

 

 

$

(0.08

)

 

$

2.66

 

 

$

0.34

 

Worthless stock deduction(1)

 

 

(0.62

)

 

 

—

 

 

 

(0.61

)

 

 

—

 

Restructuring costs(2)

 

 

—

 

 

 

0.82

 

 

 

—

 

 

 

0.81

 

Income tax impact on above adjustments(3)

 

 

—

 

 

 

(0.20

)

 

 

—

 

 

 

(0.20

)

Adjusted earnings per diluted common share

 

$

1.06

 

 

$

0.53

 

 

$

2.06

 

 

$

0.95

 

 

 

 

 

 

 

 

 

 

Shares outstanding for EPS

 

 

22,245

 

 

 

25,140

 

 

 

22,563

 

 

 

25,637

 

Per share amounts are computed independently for each of the items presented so the sum of the items may not equal the total amount

(1)

 

Adjustment related to income tax benefit from worthless stock loss deduction related to the Sotawall business.

(2)

 

Adjustment related to previously announced decision to exit certain operations in the Architectural Glass segment and reorganize operations within the Architectural Framing Systems segment, including $15.4 million of asset impairment charges, $4.3 million of employee termination costs and $1.1 million of other costs associated with these restructuring plans.

(3)

 

Income tax impact calculated using an estimated statutory tax rate of 25%, which reflects the estimated blended statutory tax rate for the jurisdiction in which the charge or income occurred.

Adjusted Operating Income and Adjusted Operating Margin

(Unaudited)

 

 

Three Months Ended August 27, 2022

 

 

Framing Systems Segment

 

Glass Segment

 

Corporate

 

 

Consolidated

(In thousands)

 

Operating
income

 

Operating
margin

 

Operating
income

 

Operating
margin

 

Operating
loss

 

 

Operating
income

 

Operating
margin

Operating income (loss)

 

$

20,512

 

11.9

%

 

$

6,457

 

 

8.3

%

 

$

(6,378

)

 

 

$

32,072

 

 

8.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended August 28, 2021

 

 

Framing Systems Segment

 

Glass Segment

 

Corporate

 

 

Consolidated

(In thousands)

 

Operating
income

 

Operating
margin

 

Operating
(loss) income

 

Operating
margin

 

Operating
(loss) income

 

 

Operating
(loss) income

 

Operating
margin

Operating income (loss)

 

$

8,381

 

6.1

%

 

$

(16,995

)

 

(21.4

)%

 

$

(7,076

)

 

 

$

(3,068

)

 

(0.9

)%

Restructuring costs (1)

 

 

2,048

 

1.5

 

 

 

17,391

 

 

21.9

 

 

 

1,375

 

 

 

 

20,814

 

 

6.3

 

Adjusted operating income (loss)

 

$

10,429

 

7.6

%

 

$

396

 

 

0.5

%

 

$

(5,701

)

 

 

$

17,746

 

 

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Adjustment related to previously announced decision to exit certain operations in the Architectural Glass segment and reorganize operations within the Architectural Framing Systems segment, including $15.4 million of asset impairment charges, $4.3 million of employee termination costs and $1.1 million of other costs associated with these restructuring plans.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended August 27, 2022

 

 

Framing Systems Segment

 

Glass Segment

 

Corporate

 

 

Consolidated

(In thousands)

 

Operating
income

 

Operating
margin

 

Operating
income

 

Operating
margin

 

Operating
loss

 

 

Operating
income

 

Operating
margin

Operating income (loss)

 

$

44,177

 

13.1

%

 

$

11,626

 

 

7.6

%

 

$

(11,421

)

 

 

$

65,288

 

 

9.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended August 28, 2021

 

 

Framing Systems Segment

 

Glass Segment

 

Corporate

 

 

Consolidated

(In thousands)

 

Operating
income

 

Operating
margin

 

Operating
(loss) income

 

Operating
margin

 

Operating
(loss) income

 

 

Operating
income

 

Operating
margin

Operating income (loss)

 

$

16,752

 

6.1

%

 

$

(14,867

)

 

(9.2

)%

 

$

(11,607

)

 

 

$

12,973

 

 

2.0

%

Restructuring costs (1)

 

 

2,048

 

0.8

 

 

 

17,391

 

 

10.7

 

 

 

1,375

 

 

 

 

20,814

 

 

3.2

 

Adjusted operating income (loss)

 

$

18,800

 

6.9

%

 

$

2,524

 

 

1.6

%

 

$

(10,232

)

 

 

$

33,787

 

 

5.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Adjustment related to previously announced decision to exit certain operations in the Architectural Glass segment and reorganize operations within the Architectural Framing Systems segment, including $15.4 million of asset impairment charges, $4.3 million of employee termination costs and $1.1 million of other costs associated with these restructuring plans.

Adjusted EBITDA Reconciliation

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

(In thousands)

 

August 27, 2022

 

August 28, 2021

 

August 27, 2022

 

August 28, 2021

Net earnings (loss)

 

$

37,389

 

 

$

(2,116

)

 

 

60,120

 

 

8,701

Income tax (benefit) expense

 

 

(7,188

)

 

 

(1,919

)

 

 

781

 

 

1,753

Interest expense, net

 

 

1,698

 

 

 

1,072

 

 

 

2,904

 

 

2,310

Depreciation and amortization

 

 

10,599

 

 

 

12,828

 

 

 

21,448

 

 

25,808

EBITDA

 

 

42,498

 

 

 

9,865

 

 

 

85,253

 

 

38,572

Restructuring(1)

 

 

—

 

 

 

20,814

 

 

 

—

 

 

20,814

Adjusted EBITDA

 

$

42,498

 

 

$

30,679

 

 

$

85,253

 

$

59,386

(1)

 

Adjustment related to previously announced decision to exit certain operations in the Architectural Glass segment and reorganize operations within the Architectural Framing Systems segment, including $15.4 million of asset impairment charges, $4.3 million of employee termination costs and $1.1 million of other costs associated with these restructuring plans.

 

Jeff Huebschen
Vice President, Investor Relations & Communications
952.487.7538
ir@apog.com

Source: Apogee Enterprises, Inc.