Apogee Enterprises Reports Fiscal 2024 Third Quarter Results
- None.
- None.
Insights
The reported increase of 15% in diluted earnings per share (EPS) to $1.23 for Apogee Enterprises, Inc. is a significant indicator of the company's profitability. Despite a 7.6% decline in net sales, the company's ability to expand its operating margin by 170 basis points to 11.1% suggests effective cost management and operational efficiency. The rise in operating margin above the 10% target for a second consecutive quarter may be viewed favorably by investors, as it reflects the company's ability to generate profit from its sales.
The 15% sequential backlog growth in Architectural Services indicates a healthy pipeline of future revenues, which could signal sustained performance. However, the reduced net sales could be a point of concern, indicating potential challenges in market demand or competitive pressures. The increase in gross margin by 310 basis points to 26.6% is noteworthy, as it implies the company's pricing power and product mix improvements are yielding positive results.
From a financial health perspective, the improved cash flow from operations and reduced net leverage ratio to 0.4x demonstrate a stronger balance sheet. This financial stability affords the company flexibility for strategic investments and shareholder returns, as evidenced by the $27.5 million returned through share repurchases and dividends.
Apogee Enterprises' focus on differentiated offerings and productivity gains within the Architectural Glass segment, which saw an 11.6% growth in net sales, aligns with industry trends favoring premium, high-performance products. The segment's operating margin improvement to 16.7% of net sales is a testament to the strategic shift and operational improvements.
However, the Architectural Framing Systems and Architectural Services segments experienced lower volumes and a less favorable mix of projects, respectively. These trends could reflect broader industry dynamics, such as a slowdown in construction or shifts in client project portfolios. The 15% growth in the Architectural Services segment backlog, though, does suggest a robust demand for specialized services, which could mitigate the impact of the current less favorable mix.
Investors should consider the implications of the company's increased full-year adjusted diluted EPS outlook to a range of $4.55 to $4.70, which could indicate management's confidence in continued operational improvements and cost efficiencies. The projected decline in net sales of approximately 3% for fiscal 2024, including the extra week of operations, should be balanced against the company's profitability measures and backlog growth when evaluating its future performance.
The reported financial results of Apogee Enterprises provide insights into the broader economic landscape, particularly in the construction and architectural services sectors. The company's ability to grow its operating income and EPS amidst a sales decline may reflect a resilient business model in a potentially contracting market. The strategic emphasis on premium products and services could be an effective hedge against economic downturns, as these segments often maintain demand despite broader market challenges.
Lower short-term incentive compensation expenses and reduced insurance-related costs as factors contributing to improved profitability suggest that the company is benefiting from internal cost-saving measures. These actions could be indicative of a proactive response to economic headwinds or a strategic shift towards leaner operations.
The reduced net interest expense, reflecting a lower average debt level, is a positive sign in an environment of rising interest rates. This reduction in financial leverage positions the company to better withstand economic fluctuations and interest rate volatility. The increase in capital expenditures to support strategic initiatives also highlights a forward-looking investment approach that could drive long-term growth.
-
Third quarter diluted EPS grows
15% to$1.23 $340 million -
Operating margin expands 170 bps to
11.1% -
New project awards drive
15% sequential backlog growth in Architectural Services -
Year-to-date cash flow from operations increases
$78 million $129 million -
Increasing full-year adjusted diluted EPS outlook to a range of
$4.55 $4.70
|
|
Three Months Ended |
|
|
|||||||
($ in thousands, except per share amounts) |
|
November 25,
|
|
November 26,
|
|
% Change |
|||||
Net Sales |
|
$ |
339,714 |
|
|
$ |
367,847 |
|
|
(7.6 |
)% |
Operating income |
|
$ |
37,647 |
|
|
$ |
34,761 |
|
|
8.3 |
% |
Operating margin % |
|
|
11.1 |
% |
|
|
9.4 |
% |
|
18.1 |
% |
Diluted earnings per share |
|
$ |
1.23 |
|
|
$ |
1.07 |
|
|
15.0 |
% |
Additional Non-GAAP Measures1 |
|
|
|
|
|
|
|||||
Adjusted diluted earnings per share |
|
$ |
1.23 |
|
|
$ |
1.07 |
|
|
15.0 |
% |
Adjusted EBITDA |
|
|
47,281 |
|
|
|
44,686 |
|
|
5.8 |
% |
“Our team continued to deliver strong results, with another quarter of year-over-year margin expansion, double-digit adjusted EPS growth, and significantly improved cash flow, despite lower revenue,” said Ty R. Silberhorn, Chief Executive Officer. “Execution of our strategy continues to drive improved performance, enabling us to achieve operating margin above our
Mr. Silberhorn continued, “As we move forward, we will continue to focus on building differentiated offerings that provide compelling value for our customers, driving productivity gains, and improving our cost structure. Additionally, our strong cash flow and balance sheet provide significant flexibility to make investments to accelerate our profitable growth.”
Consolidated Results (Third Quarter Fiscal 2024 Compared to Third Quarter Fiscal 2023)
-
Net sales were
$339.7 million $367.8 million
-
Gross profit increased by
4.3% to$90.3 million 26.6% , primarily driven by higher pricing, improved product mix, lower short-term incentive compensation expense, and lower insurance-related expense, partially offset by the impact of lower volume and a less favorable mix of projects in Services.
-
Selling, general and administrative expenses increased
$0.8 million 15.5% of net sales compared to14.1% , primarily due to higher salaries and benefit costs, partially offset by lower short-term incentive compensation expense.
-
Operating income grew
8.3% to$37.6 million 11.1% primarily driven by improved segment operating margin in Architectural Glass as well as the Architectural Glass segment comprising a higher mix of the consolidated results, partially offset by lower segment operating margin in Architectural Framing Systems.
-
Net interest expense was
$1.5 million $2.6 million
-
Income tax expense was
$8.3 million $7.9 million
-
Diluted earnings per share (“EPS”) grew
15% to$1.23
Segment Results (Third Quarter Fiscal 2024 Compared to Third Quarter Fiscal 2023)
Architectural Framing Systems
Architectural Framing Systems net sales were
Architectural Glass
Architectural Glass net sales grew
Architectural Services
Architectural Services net sales were
Large-Scale Optical
Large-Scale Optical net sales were
Corporate and Other
Corporate and other expense was
Financial Condition
Net cash provided by operating activities in the quarter was
Quarter-end total long-term debt was
Updated Outlook
The Company increased its outlook for full-year GAAP diluted EPS to a 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. A replay and transcript of the webcast will be available on the company’s website for one year from the date of 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
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, 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. This release and other financial communications may contain the following non-GAAP measures:
- Adjusted net earnings and adjusted diluted earnings per share (or “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 this metric provides 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.
- 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.
- Net leverage ratio is a non-GAAP ratio defined as net debt divided by trailing twelve months adjusted EBITDA. The Company considers this measure helpful to evaluate our capital structure and financial leverage, and our ability to fund investing and financing activities.
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. Backlog is not a term defined under
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
______________________________
1 See Use of Non-GAAP Financial Measures and a reconciliation 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 Net 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 2024 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 |
|
|
|
Nine Months Ended |
|
|
||||||||||||||
(In thousands, except per share amounts) |
|
November 25,
|
|
November 26,
|
|
% Change |
|
November 25,
|
|
November 26,
|
|
% Change |
||||||||||
Net sales |
|
$ |
339,714 |
|
$ |
367,847 |
|
(7.6 |
)% |
|
$ |
1,055,102 |
|
|
$ |
1,096,591 |
|
(3.8 |
)% |
|||
Cost of sales |
|
|
249,409 |
|
|
281,239 |
|
(11.3 |
)% |
|
|
776,440 |
|
|
|
839,430 |
|
(7.5 |
)% |
|||
Gross profit |
|
|
90,305 |
|
|
86,608 |
|
4.3 |
% |
|
|
278,662 |
|
|
|
257,161 |
|
8.4 |
% |
|||
Selling, general and administrative expenses |
|
|
52,658 |
|
|
51,847 |
|
1.6 |
% |
|
|
166,695 |
|
|
|
157,112 |
|
6.1 |
% |
|||
Operating income |
|
|
37,647 |
|
|
34,761 |
|
8.3 |
% |
|
|
111,967 |
|
|
|
100,049 |
|
11.9 |
% |
|||
Interest expense, net |
|
|
1,454 |
|
|
2,590 |
|
(43.9 |
)% |
|
|
5,720 |
|
|
|
5,494 |
|
4.1 |
% |
|||
Other expense (income), net |
|
|
890 |
|
|
552 |
|
61.2 |
% |
|
|
(3,722 |
) |
|
|
2,035 |
|
N/M |
|
|||
Earnings before income taxes |
|
|
35,303 |
|
|
31,619 |
|
11.7 |
% |
|
|
109,969 |
|
|
|
92,520 |
|
18.9 |
% |
|||
Income tax expense |
|
|
8,329 |
|
|
7,854 |
|
6.0 |
% |
|
|
26,092 |
|
|
|
8,635 |
|
202.2 |
% |
|||
Net earnings |
|
$ |
26,974 |
|
$ |
23,765 |
|
13.5 |
% |
|
$ |
83,877 |
|
|
$ |
83,885 |
|
— |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per share |
|
$ |
1.24 |
|
$ |
1.09 |
|
13.8 |
% |
|
$ |
3.82 |
|
|
$ |
3.81 |
|
0.3 |
% |
|||
Diluted earnings per share |
|
$ |
1.23 |
|
$ |
1.07 |
|
15.0 |
% |
|
$ |
3.80 |
|
|
$ |
3.74 |
|
1.6 |
% |
|||
Weighted average basic shares outstanding |
|
|
21,819 |
|
|
21,870 |
|
(0.2 |
)% |
|
|
21,981 |
|
|
|
22,043 |
|
(0.3 |
)% |
|||
Weighted average diluted shares outstanding |
|
|
22,013 |
|
|
22,278 |
|
(1.2 |
)% |
|
|
22,093 |
|
|
|
22,456 |
|
(1.6 |
)% |
|||
Cash dividends per common share |
|
$ |
0.2400 |
|
$ |
0.2200 |
|
9.1 |
% |
|
$ |
0.7200 |
|
|
$ |
0.6600 |
|
9.1 |
% |
|||
Apogee Enterprises, Inc. |
||||||||||||||||||||||
Business Segment Information |
||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
|
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
||||||||||||||
(In thousands) |
|
November 25,
|
|
November 26,
|
|
% Change |
|
November 25,
|
|
November 26,
|
|
% change |
||||||||||
Segment net sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Architectural Framing Systems |
|
$ |
139,585 |
|
|
$ |
165,013 |
|
|
(15.4 |
)% |
|
$ |
462,548 |
|
|
$ |
501,172 |
|
|
(7.7 |
)% |
Architectural Glass |
|
|
90,964 |
|
|
|
81,541 |
|
|
11.6 |
% |
|
|
282,262 |
|
|
|
235,158 |
|
|
20.0 |
% |
Architectural Services |
|
|
94,662 |
|
|
|
102,031 |
|
|
(7.2 |
)% |
|
|
272,144 |
|
|
|
312,151 |
|
|
(12.8 |
)% |
Large-Scale Optical |
|
|
26,009 |
|
|
|
26,660 |
|
|
(2.4 |
)% |
|
|
72,110 |
|
|
|
76,988 |
|
|
(6.3 |
)% |
Intersegment eliminations |
|
|
(11,506 |
) |
|
|
(7,398 |
) |
|
55.5 |
% |
|
|
(33,962 |
) |
|
|
(28,878 |
) |
|
17.6 |
% |
Net sales |
|
$ |
339,714 |
|
|
$ |
367,847 |
|
|
(7.6 |
)% |
|
$ |
1,055,102 |
|
|
$ |
1,096,591 |
|
|
(3.8 |
)% |
Segment operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Architectural Framing Systems |
|
$ |
16,981 |
|
|
$ |
22,089 |
|
|
(23.1 |
)% |
|
$ |
57,986 |
|
|
$ |
66,266 |
|
|
(12.5 |
)% |
Architectural Glass |
|
|
15,164 |
|
|
|
7,461 |
|
|
103.2 |
% |
|
|
49,119 |
|
|
|
19,087 |
|
|
157.3 |
% |
Architectural Services |
|
|
5,288 |
|
|
|
6,032 |
|
|
(12.3 |
)% |
|
|
8,211 |
|
|
|
14,449 |
|
|
(43.2 |
)% |
Large-Scale Optical |
|
|
7,100 |
|
|
|
7,109 |
|
|
(0.1 |
)% |
|
|
17,288 |
|
|
|
19,598 |
|
|
(11.8 |
)% |
Corporate and other |
|
|
(6,886 |
) |
|
|
(7,930 |
) |
|
(13.2 |
)% |
|
|
(20,637 |
) |
|
|
(19,351 |
) |
|
6.6 |
% |
Operating income |
|
$ |
37,647 |
|
|
$ |
34,761 |
|
|
8.3 |
% |
|
$ |
111,967 |
|
|
$ |
100,049 |
|
|
11.9 |
% |
Segment operating margin |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Architectural Framing Systems |
|
|
12.2 |
% |
|
|
13.4 |
% |
|
|
|
|
12.5 |
% |
|
|
13.2 |
% |
|
|
||
Architectural Glass |
|
|
16.7 |
% |
|
|
9.1 |
% |
|
|
|
|
17.4 |
% |
|
|
8.1 |
% |
|
|
||
Architectural Services |
|
|
5.6 |
% |
|
|
5.9 |
% |
|
|
|
|
3.0 |
% |
|
|
4.6 |
% |
|
|
||
Large-Scale Optical |
|
|
27.3 |
% |
|
|
26.7 |
% |
|
|
|
|
24.0 |
% |
|
|
25.5 |
% |
|
|
||
Corporate and other |
|
|
N/M |
|
|
|
N/M |
|
|
|
|
|
N/M |
|
|
|
N/M |
|
|
|
||
Operating margin |
|
|
11.1 |
% |
|
|
9.4 |
% |
|
|
|
|
10.6 |
% |
|
|
9.1 |
% |
|
|
||
|
||||||||||||||||||||||
Apogee Enterprises, Inc. |
||||||||
Consolidated Condensed Balance Sheets |
||||||||
(Unaudited) |
||||||||
(In thousands) |
|
November 25, 2023 |
|
February 25, 2023 |
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
23,407 |
|
$ |
19,924 |
||
Restricted cash |
|
|
— |
|
|
1,549 |
||
Receivables, net |
|
|
198,249 |
|
|
197,267 |
||
Inventories |
|
|
70,267 |
|
|
78,441 |
||
Contract assets |
|
|
48,146 |
|
|
59,403 |
||
Other current assets |
|
|
32,390 |
|
|
26,517 |
||
Total current assets |
|
|
372,459 |
|
|
383,101 |
||
Property, plant and equipment, net |
|
|
246,206 |
|
|
248,867 |
||
Operating lease right-of-use assets |
|
|
38,849 |
|
|
41,354 |
||
Goodwill |
|
|
129,053 |
|
|
129,026 |
||
Intangible assets, net |
|
|
64,174 |
|
|
67,375 |
||
Other non-current assets |
|
|
44,114 |
|
|
45,642 |
||
Total assets |
|
$ |
894,855 |
|
$ |
915,365 |
||
Liabilities and shareholders' equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable |
|
|
83,107 |
|
|
86,549 |
||
Accrued compensation and benefits |
|
|
42,768 |
|
|
51,651 |
||
Contract liabilities |
|
|
35,770 |
|
|
28,011 |
||
Operating lease liabilities |
|
|
12,358 |
|
|
11,806 |
||
Other current liabilities |
|
|
62,572 |
|
|
64,532 |
||
Total current liabilities |
|
|
236,575 |
|
|
242,549 |
||
Long-term debt |
|
|
100,666 |
|
|
169,837 |
||
Non-current operating lease liabilities |
|
|
29,547 |
|
|
33,072 |
||
Non-current self-insurance reserves |
|
|
31,830 |
|
|
29,316 |
||
Other non-current liabilities |
|
|
40,506 |
|
|
44,183 |
||
Total shareholders’ equity |
|
|
455,731 |
|
|
396,408 |
||
Total liabilities and shareholders’ equity |
|
$ |
894,855 |
|
$ |
915,365 |
||
Apogee Enterprises, Inc. |
||||||||
Consolidated Statement of Cash Flows |
||||||||
(Unaudited) |
||||||||
|
|
Nine Months Ended |
||||||
(In thousands) |
|
November 25, 2023 |
|
November 26, 2022 |
||||
Operating Activities |
|
|
|
|
||||
Net earnings |
|
$ |
83,877 |
|
|
$ |
83,885 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
31,185 |
|
|
|
31,925 |
|
Share-based compensation |
|
|
6,644 |
|
|
|
5,961 |
|
Deferred income taxes |
|
|
1,296 |
|
|
|
2,341 |
|
Gain on disposal of assets |
|
|
(50 |
) |
|
|
(1,484 |
) |
Proceeds from New Markets Tax Credit transaction, net of deferred costs |
|
|
— |
|
|
|
18,390 |
|
Settlement of New Markets Tax Credit transaction |
|
|
(4,687 |
) |
|
|
(19,523 |
) |
Noncash lease expense |
|
|
8,742 |
|
|
|
8,924 |
|
Other, net |
|
|
10 |
|
|
|
4,700 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Receivables |
|
|
(846 |
) |
|
|
(55,791 |
) |
Inventories |
|
|
8,256 |
|
|
|
(5,822 |
) |
Contract assets |
|
|
11,194 |
|
|
|
(8,314 |
) |
Accounts payable |
|
|
(1,902 |
) |
|
|
(19,780 |
) |
Accrued expenses |
|
|
(7,015 |
) |
|
|
7,281 |
|
Contract liabilities |
|
|
7,635 |
|
|
|
24,702 |
|
Refundable and accrued income taxes |
|
|
(7,587 |
) |
|
|
(14,391 |
) |
Operating lease liability |
|
|
(9,214 |
) |
|
|
(9,168 |
) |
Prepaid expenses and other current assets |
|
|
1,714 |
|
|
|
(2,724 |
) |
Net cash provided by operating activities |
|
|
129,252 |
|
|
|
51,112 |
|
Investing Activities |
|
|
|
|
||||
Capital expenditures |
|
|
(26,956 |
) |
|
|
(18,119 |
) |
Proceeds from sales of property, plant and equipment |
|
|
247 |
|
|
|
5,212 |
|
Purchases of marketable securities |
|
|
(969 |
) |
|
|
— |
|
Sales/maturities of marketable securities |
|
|
1,370 |
|
|
|
923 |
|
Net cash used by investing activities |
|
|
(26,308 |
) |
|
|
(11,984 |
) |
Financing Activities |
|
|
|
|
||||
Borrowings on line of credit |
|
|
195,851 |
|
|
|
430,879 |
|
Repayment on debt |
|
|
— |
|
|
|
(151,000 |
) |
Payments on line of credit |
|
|
(265,000 |
) |
|
|
(239,000 |
) |
Payments on debt issuance costs |
|
|
— |
|
|
|
(790 |
) |
Repurchase and retirement of common stock |
|
|
(11,821 |
) |
|
|
(74,312 |
) |
Dividends paid |
|
|
(15,690 |
) |
|
|
(14,415 |
) |
Other, net |
|
|
(3,781 |
) |
|
|
(2,959 |
) |
Net cash used by financing activities |
|
|
(100,441 |
) |
|
|
(51,597 |
) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
|
2,503 |
|
|
|
(12,469 |
) |
Effect of exchange rates on cash |
|
|
(569 |
) |
|
|
350 |
|
Cash, cash equivalents and restricted cash at beginning of year |
|
|
21,473 |
|
|
|
37,583 |
|
Cash and cash equivalents at end of period |
|
$ |
23,407 |
|
|
$ |
25,464 |
|
Apogee Enterprises, Inc. |
||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||
Adjusted Net Earnings and Adjusted Diluted Earnings per Share |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(In thousands) |
|
November 25,
|
|
November 26,
|
|
November 25,
|
|
November 26,
|
||||||||
Net earnings |
|
$ |
26,974 |
|
$ |
23,765 |
|
$ |
83,877 |
|
|
$ |
83,885 |
|
||
NMTC settlement gain(1) |
|
|
— |
|
|
— |
|
|
(4,687 |
) |
|
|
— |
|
||
Worthless stock deduction and related discrete tax benefits(2) |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(13,702 |
) |
||
Income tax impact on above adjustments |
|
|
— |
|
|
— |
|
|
1,148 |
|
|
|
— |
|
||
Adjusted net earnings |
|
$ |
26,974 |
|
$ |
23,765 |
|
$ |
80,338 |
|
|
$ |
70,183 |
|
||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
November 25,
|
|
November 26,
|
|
November 25,
|
|
November 26,
|
||||||||
Diluted earnings per share |
|
$ |
1.23 |
|
$ |
1.07 |
|
$ |
3.80 |
|
|
$ |
3.74 |
|
||
NMTC settlement gain(1) |
|
|
— |
|
|
— |
|
|
(0.21 |
) |
|
|
— |
|
||
Worthless stock deduction and related discrete tax benefits(2) |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(0.61 |
) |
||
Income tax impact on above adjustments |
|
|
— |
|
|
— |
|
|
0.05 |
|
|
|
— |
|
||
Adjusted diluted earnings per share |
|
$ |
1.23 |
|
$ |
1.07 |
|
$ |
3.64 |
|
|
$ |
3.13 |
|
||
|
|
|
|
|
|
|
|
|
||||||||
Weighted average diluted shares outstanding |
|
|
22,013 |
|
|
22,278 |
|
|
22,093 |
|
|
|
22,456 |
|
||
(1) |
Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net. |
(2) |
Worthless stock deduction and related discrete income tax benefits from the impairment of the Sotawall business in fiscal 2023 which was recorded in income tax expense (benefit). |
Apogee Enterprises, Inc. |
||||||||||||||||
Reconciliation of Non-GAAP Measure - Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(In thousands) |
|
November 25,
|
|
November 26,
|
|
November 25,
|
|
November 26,
|
||||||||
Net earnings |
|
$ |
26,974 |
|
$ |
23,765 |
|
$ |
83,877 |
|
|
$ |
83,885 |
|||
Income tax expense |
|
|
8,329 |
|
|
7,854 |
|
|
26,092 |
|
|
|
8,635 |
|||
Interest expense, net |
|
|
1,454 |
|
|
2,590 |
|
|
5,720 |
|
|
|
5,494 |
|||
Depreciation and amortization |
|
|
10,524 |
|
|
10,477 |
|
|
31,185 |
|
|
|
31,925 |
|||
EBITDA |
|
$ |
47,281 |
|
$ |
44,686 |
|
$ |
146,874 |
|
|
$ |
129,939 |
|||
NMTC settlement gain(1) |
|
|
— |
|
|
— |
|
|
(4,687 |
) |
|
|
— |
|||
Adjusted EBITDA |
|
$ |
47,281 |
|
$ |
44,686 |
|
$ |
142,187 |
|
|
$ |
129,939 |
|||
(1) |
Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net. |
Apogee Enterprises, Inc. |
||||||||
Reconciliation of Non-GAAP Measure - Net Leverage Ratio |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
Net Debt (In thousands) |
|
November 25,
|
|
February 25,
|
||||
Total debt |
|
$ |
100,666 |
|
|
$ |
169,837 |
|
Less: Cash and cash equivalents |
|
|
23,407 |
|
|
|
19,924 |
|
Net Debt |
|
$ |
77,259 |
|
|
$ |
149,913 |
|
|
|
|
|
|
||||
|
|
Trailing twelve months ending |
||||||
Adjusted EBITDA |
|
November 25,
|
|
February 25,
|
||||
Net earnings |
|
$ |
104,099 |
|
|
$ |
104,107 |
|
Income tax expense |
|
|
29,971 |
|
|
|
12,514 |
|
Interest expense, net |
|
|
7,886 |
|
|
|
7,660 |
|
Depreciation and amortization |
|
|
41,663 |
|
|
|
42,403 |
|
EBITDA |
|
$ |
183,619 |
|
|
$ |
166,684 |
|
NMTC Settlement Gain(1) |
|
|
(4,687 |
) |
|
|
— |
|
Adjusted EBITDA |
|
$ |
178,932 |
|
|
$ |
166,684 |
|
|
|
|
|
|
||||
Net Leverage |
|
November 25,
|
|
February 25,
|
||||
Net Debt |
|
$ |
77,259 |
|
|
$ |
149,913 |
|
Adjusted EBITDA |
|
|
178,932 |
|
|
|
166,684 |
|
Net Leverage Ratio |
|
0.4 x |
|
|
0.9 x |
|||
|
|
|
|
|
||||
(1) |
Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net. |
Apogee Enterprises, Inc. |
||||||||
Fiscal 2024 Outlook |
||||||||
Reconciliation of Fiscal 2024 outlook of estimated Diluted Earnings per Share to Adjusted Diluted Earnings per Share |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Fiscal Year Ending March 2, 2024 |
||||||
|
|
Low Range |
|
High Range |
||||
Diluted earnings per share |
|
$ |
4.71 |
|
|
$ |
4.86 |
|
NMTC settlement gain(1) per share |
|
|
(0.21 |
) |
|
|
(0.21 |
) |
Income tax impact on above adjustments per share |
|
|
0.05 |
|
|
|
0.05 |
|
Adjusted diluted earnings per share |
|
$ |
4.55 |
|
|
$ |
4.70 |
|
(1) |
Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231221982128/en/
Jeff Huebschen
Vice President, Investor Relations & Communications
952.487.7538
ir@apog.com
Source: Apogee Enterprises, Inc.
FAQ
What are Apogee Enterprises, Inc.'s (Nasdaq: APOG) third-quarter financial results?
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