Apogee Enterprises Reports Fiscal 2025 First Quarter Results
Apogee Enterprises (Nasdaq: APOG) released its Q1 fiscal 2025 results, reporting an 8.3% decline in net sales to $331.5 million due to lower volume. However, the company's operating margin improved to 12.5%, and adjusted operating margin reached 12.8%. Diluted EPS grew 34.3% to $1.41, with adjusted diluted EPS increasing 37.1% to $1.44. Key segments showed mixed results: Architectural Services saw a 10.7% sales increase, while other segments experienced declines. Despite volume pressures, Apogee raised its full-year EPS outlook to $4.56-$4.88, with adjusted EPS projected at $4.65-$5.00. The company repurchased $15.1 million in stock and expects fiscal 2025 net sales to decline by 4-7%.
- Operating margin improved to 12.5%, and adjusted operating margin reached 12.8%.
- Diluted EPS increased by 34.3% to $1.41.
- Adjusted diluted EPS grew by 37.1% to $1.44.
- Architectural Services net sales increased by 10.7%.
- Raised full-year EPS outlook to $4.56-$4.88, with adjusted EPS projected at $4.65-$5.00.
- Net sales decreased by 8.3% to $331.5 million.
- Architectural Framing Systems net sales declined to $133.2 million from $164.2 million.
- Architectural Glass net sales dropped to $86.7 million from $97.2 million.
- Net cash provided by operating activities decreased to $5.5 million from $21.3 million.
Insights
Apogee Enterprises has delivered mixed results for the first quarter of fiscal 2025. Despite an 8.3% decline in net sales, the company managed to improve its operating margin to 12.5% from 9.3% and diluted EPS jumped 34.3% to $1.41. This indicates that the company has become more efficient, as highlighted by the 410 basis point improvement in gross margin, largely driven by favorable project mixes in Architectural Services, lower material costs and productivity gains.
Looking at segment performance, Architectural Services outperformed with a 10.7% increase in sales and a turnaround in operating income. Meanwhile, Architectural Framing Systems and Architectural Glass faced volume pressures but managed to improve their margins through better cost management and pricing strategies.
In terms of financial health, Apogee's interest expense dropped significantly due to lower average debt levels and despite lower net cash from operating activities, the company maintained its capital expenditure levels. This strategic focus on maintaining investment while managing costs is a positive signal for long-term growth.
However, investors should be cautious of the company's outlook, which includes a full-year net sales decline between 4% to 7%. The company's strategic initiatives, such as Project Fortify, aim at cost savings but also signify ongoing market pressures.
Overall, the improved margins and EPS outlook are promising, but the sales decline remains a concern that investors should monitor closely.
Apogee Enterprises' results for the first quarter of fiscal 2025 paint a nuanced picture. The improvement in operating margin and a significant jump in EPS suggest effective cost management and operational efficiency. However, the 8.3% decline in net sales reflects underlying demand issues which the company attributes to softening end markets.
The Architectural Services segment stands out with a strong performance, driven by favorable project mixes and increased volume. This segment's backlog increase by 7.3% to $866.9 million indicates a healthy pipeline, which is a bright spot.
Interestingly, the company's proactive strategy through Project Fortify to exit lower-margin product lines and improve profitability is paying off, as seen in the adjusted operating margins. This initiative is expected to yield significant cost savings but also highlights market pressures requiring strategic adjustments.
While the diluted EPS outlook has been raised, the forecasted decline in full-year net sales poses a risk. Investors should weigh the improved profitability against market demand challenges and the effectiveness of Apogee's strategic initiatives in driving future growth.
-
Net sales decrease of
8% , to$332 million -
Operating margin improves to
12.5% ; adjusted operating margin of12.8% -
Diluted EPS grows to
$1.41 37% to$1.44 - Raising full-year EPS outlook
|
|
Three Months Ended |
|
|
|||||||
(Unaudited, $ in thousands, except per share amounts) |
|
June 1, 2024 |
|
May 27, 2023 |
|
% Change |
|||||
Net Sales |
|
$ |
331,516 |
|
|
$ |
361,713 |
|
|
(8.3 |
)% |
Operating income |
|
$ |
41,381 |
|
|
$ |
33,767 |
|
|
22.5 |
% |
Operating margin |
|
|
12.5 |
% |
|
|
9.3 |
% |
|
34.4 |
% |
Diluted earnings per share |
|
$ |
1.41 |
|
|
$ |
1.05 |
|
|
34.3 |
% |
Additional Non-GAAP Measures1 |
|
|
|
|
|
||||||
Adjusted operating income |
|
$ |
42,503 |
|
|
$ |
33,767 |
|
|
25.9 |
% |
Adjusted operating margin |
|
|
12.8 |
% |
|
|
9.3 |
% |
|
37.6 |
% |
Adjusted diluted earnings per share |
|
$ |
1.44 |
|
|
$ |
1.05 |
|
|
37.1 |
% |
Adjusted EBITDA |
|
$ |
52,622 |
|
|
$ |
43,761 |
|
|
20.2 |
% |
Adjusted EBITDA margin |
|
|
15.9 |
% |
|
|
12.1 |
% |
|
31.4 |
% |
“Our team continued to drive operational execution across the business, delivering significant operating income growth and record adjusted EPS, despite continued volume pressure,” said Ty R. Silberhorn, Chief Executive Officer. “As we look ahead, we continue to expect pressure on volume and pricing through the remainder of the fiscal year, due to softening end markets. We are focused on continuing to deliver results in this environment, while investing to position the Company for long-term growth.”
First-Quarter Consolidated Results (First Quarter Fiscal 2025 compared to First Quarter Fiscal 2024)
-
Net sales decreased
8.3% to$331.5 million -
Gross margin improved by 410 basis points to
29.8% , primarily driven by a more favorable mix of projects in Architectural Services, favorable material costs, lower insurance-related costs, and productivity gains, partially offset by the impact of lower volume. -
Selling, general and administrative (SG&A) expenses as a percent of net sales increased 90 basis points to
17.3% , primarily due to unfavorable sales leverage, partially offset by lower bad debt expense. -
Operating income increased to
$41.4 million 12.5% . Adjusted operating income grew25.9% to$42.5 million 12.8% . The 350 basis point improvement in adjusted operating margin was primarily driven by a more favorable mix of projects in Architectural Services, favorable material costs, lower insurance-related costs, productivity gains, and lower bad debt expense, which more than offset the impact of lower volume and unfavorable segment mix. -
Interest expense was
$0.5 million $2.0 million -
Diluted earnings per share (EPS) increased to
$1.41 $1.05 37.1% to$1.44
First Quarter Segment Results (First Quarter Fiscal 2025 Compared to First Quarter Fiscal 2024)
Architectural Framing Systems
Architectural Framing Systems net sales were
Architectural Glass
Architectural Glass net sales were
Architectural Services
Architectural Services net sales grew
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 was
Quarter-end long-term debt was
Fiscal 2025 Outlook
The Company continues to expect a full-year net sales decline in the range of
The Company is increasing its outlook for full-year diluted EPS to a range of
The Company now expects a total of
The Company continues to expect an effective tax rate of approximately
Conference Call Information
The Company will host a conference call today at 8:00 a.m. Central Time to discuss this earnings release. This call will be webcast and is available in the Investor Relations section of the Company’s website, along with presentation slides, at https://www.apog.com/events-and-presentations. A replay and transcript of the webcast will be available on the Company’s website 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, as a factor in determining executive compensation, and to provide enhanced transparency to the investment community. Non-GAAP measures should be viewed in addition to, and not as a substitute for, the reported financial results of the Company prepared in accordance with GAAP. Other companies may calculate these measures differently, limiting the usefulness of the measures for comparison with other companies. This release and other financial communications may contain the following non-GAAP measures:
- Adjusted operating income, adjusted operating margin, adjusted net earnings, adjusted effective tax rate, and adjusted diluted EPS are used by the Company to provide meaningful supplemental information about its operating performance by excluding amounts that are not considered part of core operating results to enhance comparability of results from period to period.
- Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization. The Company believes adjusted EBITDA and adjusted EBITDA margin metrics provide useful information to investors and analysts about the Company’s core operating performance.
- Free cash flow is defined as net cash provided by operating activities, minus capital expenditures. The Company considers this measure an indication of its financial strength. However, free cash flow does not fully reflect the Company’s ability to freely deploy generated cash, as it does not reflect, for example, required payments on indebtedness and other fixed obligations.
- 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 and is most meaningful for the Architectural Services Segment due to the longer-term nature of their projects. 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 |
|
Adjusted operating income, adjusted operating margin, adjusted diluted earnings per share (EPS), adjusted EBITDA, and adjusted EBITDA margin are non-GAAP financial measures. See Use of Non-GAAP Financial Measures and reconciliations to the most directly comparable GAAP measures later in this press release. |
2 |
|
Backlog is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information. |
3 |
|
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 2025 estimated adjusted diluted earnings per share to GAAP diluted earnings per share later in this press release. |
|
||||||||||
Apogee Enterprises, Inc. |
||||||||||
Consolidated Condensed Statements of Income |
||||||||||
(Unaudited) |
||||||||||
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
||||||
(In thousands, except per share amounts) |
|
June 1, 2024 |
|
May 27, 2023 |
|
% Change |
||||
Net sales |
|
$ |
331,516 |
|
|
$ |
361,713 |
|
(8.3 |
)% |
Cost of sales |
|
|
232,661 |
|
|
|
268,727 |
|
(13.4 |
)% |
Gross profit |
|
|
98,855 |
|
|
|
92,986 |
|
6.3 |
% |
Selling, general and administrative expenses |
|
|
57,474 |
|
|
|
59,219 |
|
(2.9 |
)% |
Operating income |
|
|
41,381 |
|
|
|
33,767 |
|
22.5 |
% |
Interest expense, net |
|
|
450 |
|
|
|
2,036 |
|
(77.9 |
)% |
Other expense (income), net |
|
|
(143 |
) |
|
|
288 |
|
N/M |
|
Earnings before income taxes |
|
|
41,074 |
|
|
|
31,443 |
|
30.6 |
% |
Income tax expense |
|
|
10,063 |
|
|
|
7,867 |
|
27.9 |
% |
Net earnings |
|
$ |
31,011 |
|
|
$ |
23,576 |
|
31.5 |
% |
|
|
|
|
|
|
|
||||
Basic earnings per share |
|
$ |
1.42 |
|
|
$ |
1.08 |
|
31.5 |
% |
Diluted earnings per share |
|
$ |
1.41 |
|
|
$ |
1.05 |
|
34.3 |
% |
Weighted average basic shares outstanding |
|
|
21,823 |
|
|
|
21,883 |
|
(0.3 |
)% |
Weighted average diluted shares outstanding |
|
|
22,061 |
|
|
|
22,386 |
|
(1.5 |
)% |
Cash dividends per common share |
|
$ |
0.25 |
|
|
$ |
0.24 |
|
4.2 |
% |
Apogee Enterprises, Inc. |
|||||||||||
Business Segment Information |
|||||||||||
(Unaudited) |
|||||||||||
|
|
Three Months Ended |
|
|
|||||||
(In thousands) |
|
June 1, 2024 |
|
May 27, 2023 |
|
% Change |
|||||
Segment net sales |
|
|
|
|
|
|
|||||
Architectural Framing Systems |
|
$ |
133,172 |
|
|
$ |
164,162 |
|
|
(18.9 |
)% |
Architectural Glass |
|
|
86,703 |
|
|
|
97,202 |
|
|
(10.8 |
)% |
Architectural Services |
|
|
99,027 |
|
|
|
89,418 |
|
|
10.7 |
% |
Large-Scale Optical |
|
|
21,204 |
|
|
|
22,456 |
|
|
(5.6 |
)% |
Intersegment eliminations |
|
|
(8,590 |
) |
|
|
(11,525 |
) |
|
(25.5 |
)% |
Net sales |
|
$ |
331,516 |
|
|
$ |
361,713 |
|
|
(8.3 |
)% |
Segment operating income (loss) |
|
|
|
|
|
|
|||||
Architectural Framing Systems |
|
$ |
18,336 |
|
|
$ |
19,945 |
|
|
(8.1 |
)% |
Architectural Glass |
|
|
17,091 |
|
|
|
16,521 |
|
|
3.5 |
% |
Architectural Services |
|
|
5,623 |
|
|
|
(596 |
) |
|
N/M |
|
Large-Scale Optical |
|
|
4,846 |
|
|
|
5,525 |
|
|
(12.3 |
)% |
Corporate and other |
|
|
(4,515 |
) |
|
|
(7,628 |
) |
|
(40.8 |
)% |
Operating income |
|
$ |
41,381 |
|
|
$ |
33,767 |
|
|
22.5 |
% |
Segment operating margin |
|
|
|
|
|
|
|||||
Architectural Framing Systems |
|
|
13.8 |
% |
|
|
12.1 |
% |
|
|
|
Architectural Glass |
|
|
19.7 |
% |
|
|
17.0 |
% |
|
|
|
Architectural Services |
|
|
5.7 |
% |
|
|
(0.7 |
)% |
|
|
|
Large-Scale Optical |
|
|
22.9 |
% |
|
|
24.6 |
% |
|
|
|
Corporate and other |
|
|
N/M |
|
|
|
N/M |
|
|
|
|
Operating margin |
|
|
12.5 |
% |
|
|
9.3 |
% |
|
|
|
N/M - Indicates calculation is not meaningful |
|
|
|
|
|
|
|||||
- Segment net sales is defined as net sales for a certain segment and includes revenue related to intersegment transactions.
- Net sales intersegment eliminations are reported separately to exclude these sales from our consolidated total.
- Segment operating income is equal to net sales, less cost of goods sold, SG&A, and any asset impairment charges associated with the segment.
- Segment operating income includes operating income related to intersegment sales transactions and excludes certain corporate costs that are not allocated at a segment level. We report these unallocated corporate costs separately in Corporate and Other.
- Operating income does not include any other income or expense, interest expense or a provision for income taxes.
|
||||||
Apogee Enterprises, Inc. |
||||||
Consolidated Condensed Balance Sheets |
||||||
(Unaudited) |
||||||
(In thousands) |
|
June 1, 2024 |
|
March 2, 2024 |
||
Assets |
|
|
|
|
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
30,363 |
|
$ |
37,216 |
Receivables, net |
|
|
183,270 |
|
|
173,557 |
Inventories, net |
|
|
80,495 |
|
|
69,240 |
Contract assets |
|
|
43,957 |
|
|
49,502 |
Other current assets |
|
|
34,417 |
|
|
29,124 |
Total current assets |
|
|
372,502 |
|
|
358,639 |
Property, plant and equipment, net |
|
|
242,292 |
|
|
244,216 |
Operating lease right-of-use assets |
|
|
38,726 |
|
|
40,221 |
Goodwill |
|
|
129,042 |
|
|
129,182 |
Intangible assets, net |
|
|
64,981 |
|
|
66,114 |
Other non-current assets |
|
|
41,436 |
|
|
45,692 |
Total assets |
|
$ |
888,979 |
|
$ |
884,064 |
Liabilities and shareholders' equity |
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Accounts payable |
|
|
82,841 |
|
|
84,755 |
Accrued compensation and benefits |
|
|
28,900 |
|
|
53,801 |
Contract liabilities |
|
|
36,377 |
|
|
34,755 |
Operating lease liabilities |
|
|
12,090 |
|
|
12,286 |
Other current liabilities |
|
|
66,895 |
|
|
59,108 |
Total current liabilities |
|
|
227,103 |
|
|
244,705 |
Long-term debt |
|
|
77,000 |
|
|
62,000 |
Non-current operating lease liabilities |
|
|
30,462 |
|
|
31,907 |
Non-current self-insurance reserves |
|
|
30,859 |
|
|
30,552 |
Other non-current liabilities |
|
|
43,600 |
|
|
43,875 |
Total shareholders’ equity |
|
|
479,955 |
|
|
471,025 |
Total liabilities and shareholders’ equity |
|
$ |
888,979 |
|
$ |
884,064 |
|
||||||||
Apogee Enterprises, Inc. |
||||||||
Consolidated Statement of Cash Flows |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended |
||||||
(In thousands) |
|
June 1, 2024 |
|
May 27, 2023 |
||||
Operating Activities |
|
|
|
|
||||
Net earnings |
|
$ |
31,011 |
|
|
$ |
23,576 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
9,976 |
|
|
|
10,282 |
|
Share-based compensation |
|
|
2,704 |
|
|
|
2,178 |
|
Deferred income taxes |
|
|
3,466 |
|
|
|
(165 |
) |
Loss (gain) on disposal of assets |
|
|
22 |
|
|
|
(27 |
) |
Non-cash lease expense |
|
|
2,895 |
|
|
|
2,714 |
|
Other, net |
|
|
(925 |
) |
|
|
(432 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Receivables |
|
|
(9,845 |
) |
|
|
(13,476 |
) |
Inventories |
|
|
(11,337 |
) |
|
|
(2,068 |
) |
Contract assets |
|
|
5,511 |
|
|
|
14,368 |
|
Accounts payable |
|
|
(1,871 |
) |
|
|
(8,390 |
) |
Accrued compensation and benefits |
|
|
(24,850 |
) |
|
|
(13,312 |
) |
Contract liabilities |
|
|
1,648 |
|
|
|
8,158 |
|
Operating lease liability |
|
|
(3,007 |
) |
|
|
(3,101 |
) |
Accrued income taxes |
|
|
6,535 |
|
|
|
7,590 |
|
Other current assets and liabilities |
|
|
(6,480 |
) |
|
|
(6,608 |
) |
Net cash provided by operating activities |
|
|
5,453 |
|
|
|
21,287 |
|
Investing Activities |
|
|
|
|
||||
Capital expenditures |
|
|
(7,229 |
) |
|
|
(7,398 |
) |
Proceeds from sales of property, plant and equipment |
|
|
40 |
|
|
|
66 |
|
Purchases of marketable securities |
|
|
(740 |
) |
|
|
— |
|
Sales/maturities of marketable securities |
|
|
600 |
|
|
|
400 |
|
Net cash used by investing activities |
|
|
(7,329 |
) |
|
|
(6,932 |
) |
Financing Activities |
|
|
|
|
||||
Proceeds from revolving credit facilities |
|
|
30,000 |
|
|
|
105,852 |
|
Repayments on revolving credit facilities |
|
|
(15,000 |
) |
|
|
(105,000 |
) |
Repurchase of common stock |
|
|
(15,061 |
) |
|
|
(5,193 |
) |
Dividends paid |
|
|
— |
|
|
|
(5,245 |
) |
Other, net |
|
|
(4,865 |
) |
|
|
(1,677 |
) |
Net cash used by financing activities |
|
|
(4,926 |
) |
|
|
(11,263 |
) |
Effect of exchange rates on cash |
|
|
(51 |
) |
|
|
77 |
|
(Decrease) increase in cash and cash equivalents |
|
|
(6,853 |
) |
|
|
3,169 |
|
Cash and cash equivalents at beginning of period |
|
|
37,216 |
|
|
|
21,473 |
|
Cash and cash equivalents at end of period |
|
$ |
30,363 |
|
|
$ |
24,642 |
|
Non-cash Activity |
|
|
|
|||||
Dividends declared but not yet paid |
|
$ |
5,409 |
|
|
$ |
— |
|
|
||||||||
Apogee Enterprises, Inc. |
||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||
Adjusted Net Earnings and Adjusted Diluted Earnings per Share |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
(In thousands) |
|
June 1, 2024 |
|
May 27, 2023 |
||||
Net earnings |
|
$ |
31,011 |
|
|
$ |
23,576 |
|
Restructuring charges (1) |
|
|
1,122 |
|
|
|
— |
|
Income tax impact on above adjustments (2) |
|
|
(275 |
) |
|
|
— |
|
Adjusted net earnings |
|
$ |
31,858 |
|
|
$ |
23,576 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
|
|
June 1, 2024 |
|
May 27, 2023 |
||||
Diluted earnings per share |
|
$ |
1.41 |
|
|
$ |
1.05 |
|
Restructuring charges (1) |
|
|
0.05 |
|
|
|
— |
|
Income tax impact on above adjustments (2) |
|
|
(0.01 |
) |
|
|
— |
|
Adjusted diluted earnings per share |
|
$ |
1.44 |
|
|
$ |
1.05 |
|
|
|
|
|
|
||||
Weighted average diluted shares outstanding |
|
|
22,061 |
|
|
|
22,386 |
|
(1) |
|
Restructuring charges related to Project Fortify, including |
(2) |
|
Income tax impact calculated using an estimated statutory tax rate of |
|
||||||||||||||||||||||||||
Apogee Enterprises, Inc. |
||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||||||||||||
Adjusted Operating Income (Loss) and Adjusted Operating Margin |
||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
Three Months Ended June 1, 2024 |
|||||||||||||||||||||||
(In thousands) |
|
Architectural
|
|
Architectural
|
|
Architectural
|
|
LSO |
|
Corporate
|
|
Consolidated |
||||||||||||||
Operating income (loss) |
|
$ |
18,336 |
|
|
$ |
17,091 |
|
|
$ |
5,623 |
|
|
$ |
4,846 |
|
|
$ |
(4,515 |
) |
|
$ |
41,381 |
|
||
Restructuring charges (1) |
|
|
998 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
124 |
|
|
|
1,122 |
|
||
Adjusted operating income (loss) |
|
$ |
19,334 |
|
|
$ |
17,091 |
|
|
$ |
5,623 |
|
|
$ |
4,846 |
|
|
$ |
(4,391 |
) |
|
$ |
42,503 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating margin |
|
|
13.8 |
% |
|
|
19.7 |
% |
|
|
5.7 |
% |
|
|
22.9 |
% |
|
|
N/M |
|
|
|
12.5 |
% |
||
Restructuring charges (1) |
|
|
0.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
N/M |
|
|
|
0.3 |
|
||
Adjusted operating margin |
|
|
14.5 |
% |
|
|
19.7 |
% |
|
|
5.7 |
% |
|
|
22.9 |
% |
|
|
N/M |
|
|
|
12.8 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
Three Months Ended May 27, 2023 |
|||||||||||||||||||||||
(In thousands) |
|
Architectural
|
|
Architectural
|
|
Architectural
|
|
LSO |
|
Corporate
|
|
Consolidated |
||||||||||||||
Operating income (loss) |
|
$ |
19,945 |
|
|
$ |
16,521 |
|
|
$ |
(596 |
) |
|
$ |
5,525 |
|
|
$ |
(7,628 |
) |
|
$ |
33,767 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating margin |
|
|
12.1 |
% |
|
|
17.0 |
% |
|
|
(0.7 |
)% |
|
|
24.6 |
% |
|
|
N/M |
|
|
|
9.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(1) |
Restructuring charges related to Project Fortify, including |
|||||||||||||||||||||||||
|
|||||||||
Apogee Enterprises, Inc. |
|||||||||
Reconciliation of Non-GAAP Financial Measures |
|||||||||
Adjusted EBITDA and Adjusted EBITDA Margin (Earnings before interest, taxes, depreciation and amortization) |
|||||||||
(Unaudited) |
|||||||||
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
||||||
(In thousands) |
|
June 1, 2024 |
|
May 27, 2023 |
|
||||
Net earnings |
|
$ |
31,011 |
|
|
$ |
23,576 |
|
|
Income tax expense |
|
|
10,063 |
|
|
|
7,867 |
|
|
Interest expense, net |
|
|
450 |
|
|
|
2,036 |
|
|
Depreciation and amortization |
|
|
9,976 |
|
|
|
10,282 |
|
|
EBITDA |
|
$ |
51,500 |
|
|
$ |
43,761 |
|
|
Restructuring charges (1) |
|
|
1,122 |
|
|
|
— |
|
|
Adjusted EBITDA |
|
$ |
52,622 |
|
|
$ |
43,761 |
|
|
|
|
|
|
|
|
||||
EBITDA Margin |
|
|
15.5 |
% |
|
|
12.1 |
% |
|
Adjusted EBITDA Margin |
|
|
15.9 |
% |
|
|
12.1 |
% |
|
(1) |
|
Restructuring charges related to Project Fortify, including |
|
||||||||
Apogee Enterprises, Inc. |
||||||||
Reconciliation of Non-GAAP Measure - Net Leverage Ratio |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
Net Debt (In thousands) |
|
June 1, 2024 |
|
March 2, 2024 |
||||
Total debt |
|
$ |
77,000 |
|
|
$ |
62,000 |
|
Less: Cash and cash equivalents |
|
|
30,363 |
|
|
|
37,216 |
|
Net Debt |
|
$ |
46,637 |
|
|
$ |
24,784 |
|
|
|
|
|
|
||||
|
|
Trailing twelve months ending |
||||||
Adjusted EBITDA |
|
June 1, 2024 |
|
March 2, 2024 |
||||
Net earnings |
|
$ |
107,048 |
|
|
$ |
99,613 |
|
Income tax expense |
|
|
31,836 |
|
|
|
29,640 |
|
Interest expense, net |
|
|
5,083 |
|
|
|
6,669 |
|
Depreciation and amortization |
|
|
41,282 |
|
|
|
41,588 |
|
EBITDA |
|
$ |
185,249 |
|
|
$ |
177,510 |
|
Restructuring charges (1) |
|
|
13,525 |
|
|
|
12,403 |
|
NMTC settlement gain (2) |
|
|
(4,687 |
) |
|
|
(4,687 |
) |
Adjusted EBITDA |
|
$ |
194,087 |
|
|
$ |
185,226 |
|
|
|
|
|
|
||||
Net Leverage |
|
June 1, 2024 |
|
March 2, 2024 |
||||
Net Debt |
|
$ |
46,637 |
|
|
$ |
24,784 |
|
Adjusted EBITDA |
|
|
194,087 |
|
|
|
185,226 |
|
Net Leverage Ratio |
|
|
0.2 |
x |
|
|
0.1 |
x |
(1) |
|
Restructuring charges related to Project Fortify, including |
(2) |
|
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 2025 Outlook |
||||||||
Reconciliation of Fiscal 2025 outlook of estimated Diluted Earnings per Share to Adjusted Diluted Earnings per Share |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Fiscal Year Ending March 1, 2025 |
||||||
|
|
Low Range |
|
High Range |
||||
Diluted earnings per share |
|
$ |
4.56 |
|
|
$ |
4.88 |
|
Restructuring charges (1) |
|
|
0.12 |
|
|
|
0.16 |
|
Income tax impact on above adjustments per share |
|
|
(0.03 |
) |
|
|
(0.04 |
) |
Adjusted diluted earnings per share |
|
$ |
4.65 |
|
|
$ |
5.00 |
|
(1) |
|
Restructuring charges related to Project Fortify. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240627316996/en/
Jeff Huebschen
Vice President, Investor Relations & Communications
952.487.7538
ir@apog.com
Source: Apogee Enterprises, Inc.
FAQ
What were Apogee Enterprises' Q1 fiscal 2025 net sales?
How did Apogee Enterprises' operating margin perform in Q1 fiscal 2025?
What was Apogee Enterprises' Q1 fiscal 2025 diluted EPS?
What is Apogee Enterprises' full-year EPS outlook for fiscal 2025?
How did Apogee Enterprises' Architectural Services segment perform in Q1 fiscal 2025?
How much stock did Apogee Enterprises repurchase in Q1 fiscal 2025?
What is the net sales outlook for Apogee Enterprises in fiscal 2025?
