Apogee Enterprises Reports Fiscal 2021 Fourth Quarter and Full Year Results
Apogee Enterprises reported fourth-quarter revenue of $308.6 million, a decline from $337.1 million year-over-year, driven by volume declines in Architectural Framing Systems and Glass. The company faced a net loss of $(1.65) per diluted share, influenced by $70.1 million in impairment charges. Adjusted earnings were $0.63 per diluted share, compared to $0.50 last year. For the full year, revenue totaled $1.23 billion, down from $1.39 billion, with adjusted earnings of $2.40 per share. Looking ahead, fiscal 2022 guidance for earnings is set between $2.10 and $2.35 per diluted share.
- Adjusted earnings increased to $0.63 per diluted share from $0.50 year-over-year.
- Full-year adjusted earnings per share were $2.40, slightly up from $2.38 in fiscal 2020.
- Record net cash from operating activities of $142 million, a 32% increase year-over-year.
- Shareholder returns increased to $52.5 million in fiscal 2021, up 20% from $43.9 million.
- Fourth-quarter revenue decreased to $308.6 million, down from $337.1 million year-over-year.
- Net loss of $(1.65) per diluted share compared to earnings of $0.45 in the same quarter last year.
- Impairment charges of $70.1 million significantly impacted financial results.
- Full-year revenue declined to $1.23 billion from $1.39 billion.
Apogee Enterprises, Inc. (Nasdaq: APOG) today announced its fiscal 2021 fourth-quarter and full-year results and provided guidance for fiscal 2022. Fourth-quarter revenue was
Full-year fiscal 2021 revenue was
Commentary
“Apogee’s fourth-quarter results demonstrate our team’s ability to respond in challenging times, with adjusted earnings growth despite continued softness in our architectural end markets,” said Ty R. Silberhorn, Chief Executive Officer. “There is no question fiscal 2021 was a difficult year for our business and the broader non-residential construction industry. Apogee’s team rose to the challenge, adapting our business to protect the health of employees and serve our customers, while making significant progress on cost initiatives to deliver solid adjusted earnings and record full-year cash flow.”
Mr. Silberhorn continued, “As we enter fiscal 2022, uncertainty remains about the direction of non-residential construction markets. We are using this as a catalyst to accelerate our transformation, to better position the company for sustainable growth and improved profitability in the future. We will also build on the work we began in fiscal 2021, continuing to improve our cost structure and strengthen operational execution to deliver near-term results.”
Segment Results
Architectural Framing Systems
Architectural Framing Systems fourth-quarter revenue was
Architectural Glass
Architectural Glass revenue in the fourth quarter was
Architectural Services
Architectural Services revenue grew 12 percent to
Large-Scale Optical
Large-Scale Optical revenue was
Financial Condition
Net cash provided by operating activities in fiscal 2021 increased 32 percent to a record
During the fiscal year, the company reduced its total debt by
Outlook
Apogee is providing initial guidance for fiscal year 2022, with full-year earnings expected to be in the range of
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) 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 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 charge, restructuring costs, acquired project-related charges, 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.
- 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.
Another non-GAAP 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 amount of projects with short lead times that book-and-bill within the same reporting period and are not included in backlog.
Management uses these non-GAAP measures to evaluate the company’s historical and prospective financial performance and liquidity, 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. 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, prospects and opportunities of the company, including the following: (A) potential continuing impacts from pandemic health issues, such as the coronavirus / COVID-19, along with the impact of government stay-at-home orders or other similar directives on our future financial results of operations, our future financial condition, and our ability to continue business activities in affected regions; (B) 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 condition of the U.S. economy, which impact our large-scale optical segment; (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 event for which the company is liable; (M) dependence on information technology systems and information security concerns; (N) cost of compliance with and changes in environmental regulations; (O) commodity price fluctuations, trade policy impacts, and supply availability; (P) integration of recent acquisitions and management of acquired contracts; and (Q) impairment of goodwill or indefinite-lived intangible assets. 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 29, 2020 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 and adjusted operating margin 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.
Apogee Enterprises, Inc. |
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Consolidated Condensed Statements of Income |
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(Unaudited) |
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|
|
|
|
|
|
|
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Three Months Ended |
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Twelve Months Ended |
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|
||||||||||||||
(In thousands, except per share amounts) |
|
February 27,
|
|
February 29,
|
|
%
|
|
February 27,
|
|
February 29,
|
|
%
|
||||||||||
Net sales |
|
$ |
308,612 |
|
|
$ |
337,100 |
|
|
(8 |
)% |
|
$ |
1,230,774 |
|
|
$ |
1,387,439 |
|
|
(11 |
)% |
Cost of sales |
|
238,945 |
|
|
259,625 |
|
|
(8 |
)% |
|
955,084 |
|
|
1,068,480 |
|
|
(11 |
)% |
||||
Gross profit |
|
69,667 |
|
|
77,475 |
|
|
(10 |
)% |
|
275,690 |
|
|
318,959 |
|
|
(14 |
)% |
||||
Selling, general and administrative expenses |
|
123,573 |
|
|
61,837 |
|
|
100 |
% |
|
250,163 |
|
|
231,111 |
|
|
8 |
% |
||||
Operating (loss) income |
|
(53,906 |
) |
|
15,638 |
|
|
N/M |
|
25,527 |
|
|
87,848 |
|
|
(71 |
)% |
|||||
Interest expense, net |
|
167 |
|
|
1,638 |
|
|
(90 |
)% |
|
4,408 |
|
|
8,814 |
|
|
(50 |
)% |
||||
Other income, net |
|
807 |
|
|
118 |
|
|
584 |
% |
|
1,492 |
|
|
716 |
|
|
108 |
% |
||||
(Loss) earnings before income taxes |
|
(53,266 |
) |
|
14,118 |
|
|
N/M |
|
22,611 |
|
|
79,750 |
|
|
(72 |
)% |
|||||
Income tax (benefit) expense |
|
(10,895 |
) |
|
2,160 |
|
|
N/M |
|
7,175 |
|
|
17,836 |
|
|
(60 |
)% |
|||||
Net (loss) earnings |
|
$ |
(42,371 |
) |
|
$ |
11,958 |
|
|
N/M |
|
$ |
15,436 |
|
|
$ |
61,914 |
|
|
(75 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Loss) earnings per share - basic |
|
$ |
(1.65 |
) |
|
$ |
0.45 |
|
|
N/M |
|
$ |
0.59 |
|
|
$ |
2.34 |
|
|
(75 |
)% |
|
Weighted average basic shares outstanding |
|
25,613 |
|
|
26,454 |
|
|
(3 |
)% |
|
25,955 |
|
|
26,474 |
|
|
(2 |
)% |
||||
(Loss) earnings per share - diluted |
|
$ |
(1.65 |
) |
|
$ |
0.45 |
|
|
N/M |
|
$ |
0.59 |
|
|
$ |
2.32 |
|
|
(75 |
)% |
|
Weighted average diluted shares outstanding |
|
25,613 |
|
|
26,746 |
|
|
(4 |
)% |
|
26,304 |
|
|
26,729 |
|
|
(2 |
)% |
||||
Cash dividends per common share |
|
$ |
0.2000 |
|
|
$ |
0.1875 |
|
|
7 |
% |
|
$ |
0.7625 |
|
|
$ |
0.7125 |
|
|
7 |
% |
|
|
|
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FAQ
What were Apogee's fourth-quarter revenue results for fiscal 2021?
Apogee's fourth-quarter revenue for fiscal 2021 was $308.6 million, down from $337.1 million in the same quarter of fiscal 2020.
What is Apogee's earnings guidance for fiscal 2022?
Apogee expects fiscal 2022 full-year earnings to range from $2.10 to $2.35 per diluted share.
How did the pandemic affect Apogee's financial performance in fiscal 2021?
The pandemic contributed to a net loss of $(1.65) per diluted share in the fourth quarter, along with significant impairment charges.
What were Apogee's total revenues for the full fiscal 2021?
For the full fiscal 2021, Apogee reported total revenues of $1.23 billion, compared to $1.39 billion in the previous fiscal year.
Did Apogee increase shareholder returns in fiscal 2021?
Yes, Apogee increased shareholder returns to $52.5 million in fiscal 2021, up 20% from $43.9 million in fiscal 2020.
Apogee Enterprises Inc
NASDAQ:APOGAPOG RankingsAPOG Latest NewsSep 25, 2024
Apogee Enterprises to Acquire UW Solutions
APOG Stock Data
1.68B
21.94M
1.83%
96.78%
4%
Building Products & Equipment
Glass Products, Made of Purchased Glass
United States of America
MINNEAPOLIS
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