Apogee Enterprises, Inc. (Nasdaq:APOG) today announced fiscal 2012 second-quarter results. Apogee provides distinctive value-added glass solutions for the architectural and picture framing industries.
FY12 SECOND QUARTER VS. PRIOR-YEAR PERIOD
- Revenues of $165.6 million were up 14 percent.
- Operating loss was $2.7 million, compared to a loss of $7.4 million.
Per share loss from continuing operations was $0.06, compared to a
loss of $0.18.
- Results include $0.05 per share of CEO transition costs as Joseph F. Puishys became Apogee CEO August 22, replacing Russell Huffer who retired during the quarter.
Architectural segment revenues increased 17 percent, with an operating
loss of $5.1 million compared to a loss of $10.8 million.
- Backlog was $231.3 million, compared to $247.0 million in the first quarter and $193.0 million in the prior-year period.
- Large-scale optical segment revenues declined 6 percent, with operating income of $3.5 million compared to $4.2 million.
- Cash and short-term investments were $45.3 million.
Net results were a loss of $0.06 per share, compared to $0.00 per
- In the prior-year period, discontinued operations provided non-cash earnings of $0.18 per share from resolution of an outstanding exposure related to a foreign operation discontinued in 1998.
Commentary“Within the second quarter results are several positives,” said Joseph F. Puishys, Apogee chief executive officer. “We grew revenues organically while substantially reducing architectural segment losses, and we were nearly at breakeven excluding the CEO transition costs. We also had positive cash flow from operations, and maintained our solid cash and short-term investments position. In addition, we believe the architectural segment backlog trend remains positive, as the decline from the first quarter resulted from the timing of contract signings.”
FY12 SECOND-QUARTER SEGMENT AND OPERATING RESULTS VS. PRIOR-YEAR PERIODArchitectural Products and Services
- Revenues of $149.1 million were up 17 percent, due to the addition of the Brazilian architectural glass business, which contributed 7 percentage points of the increase; growth in the window and storefront businesses; and improved architectural glass pricing.
Operating loss was $5.1 million, compared to a loss of $10.8 million.
Results improved from the prior-year period with higher
architectural glass pricing and slightly better segment capacity
utilization, partially offset by lower margin work in installation.
- Prior-year period results included approximately $2 million in expenses to address architectural glass quality issues due to a vendor-supplied material.
- The Brazilian architectural glass business had minimal impact on operating income, as expected.
- Results improved from the prior-year period with higher architectural glass pricing and slightly better segment capacity utilization, partially offset by lower margin work in installation.
Backlog was $231.3 million, compared to $247.0 million in the first
quarter and $193.0 million in the prior-year period.
- Decline was due to the timing of projects entering backlog. The level of awarded projects awaiting final signed contracts grew to more than $60 million from $40 million in the first quarter.
- Approximately $116 million, or 50 percent, of the backlog is expected to be delivered in fiscal 2012, and approximately $116 million, or 50 percent, in fiscal 2013.
Revenues of $16.4 million were down 6 percent.
- Softer retail markets and the timing of customer promotions impacted sales.
Operating income was $3.5 million compared to $4.2 million.
- Operating margin was 21.4 percent, compared to 24.4 percent, with the continued solid mix of value-added products and good operational performance.
Long-term debt was $21.1 million, compared to $21.4 million at the end
of fiscal 2011.
- Long-term debt includes $20.4 million in long-term, low-interest industrial revenue and recovery zone facility bonds.
- Cash and short-term investments totaled $45.3 million, compared to $43.0 million at the end of the first quarter and $60.6 million at the end of fiscal 2011.
- Non-cash working capital (current assets, excluding cash and short-term investments, less current liabilities) was $68.2 million, compared to $63.3 million at the end of the first quarter, and $39.4 million at the end of fiscal 2011.
- Capital expenditures year-to-date were $3.6 million, down 29 percent from the prior-year period.
- Depreciation and amortization year-to-date were $13.9 million, comparable to the prior-year period.
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