Apogee (APOG) - Get Apogee Enterprises, Inc. Report Enterprises, a provider of glass and metal products and services for construction and art framing, resumed its share buyback, five months after it was interrupted by covid-19.
The Minneapolis company had halted the buyback on April 30 to manage its cost structure and economic uncertainty due to the pandemic.
About 2.1 million shares are authorized for buyback, Apogee said. At Aug. 29, Apogee had 26.5 million shares outstanding.
At last check Apogee shares were trading 8.8% higher at $23.21.
The suspension was one of a number of steps it took to conserve cash, including reducing salaries for the CEO and staff, fee reductions for the board, furloughing manufacturing staff and reducing hours worked for salaried employees.
In an Oct. 5 Securities and Exchange Commission filing, Apogee also said it planned to reduce selling, general, and administrative expense to improve productivity across the company.
Apogee said this could result in annual cost savings of at least $10 million to $20 million by the end of fiscal 2023.
"The costs to implement such opportunities are likely to be recognized during the latter part of the fourth quarter of fiscal 2021 and during fiscal 2022," the company said in its SEC filing.
"These SG&A reduction opportunities are in addition to the cost-savings actions, of $40 million on an annualized basis, referenced in the company’s second-quarter earnings."
Last week Apogee said it completed a sale-and-leaseback transaction for its McCook, Ill., facility. The sale price is $25 million. The leaseback is for an initial five years with multiple options to renew.
The company said it expected to record a pretax gain on the sale of $19 million.
For the second quarter ended Aug. 29 Apogee reported net income per share fell 6.9% to 67 cents from 72 cents in the year-earlier quarter.
Revenue declined 11% to $319.5 million from $357.1 million due to drops from its architectural glass, framing systems and large-scale optical units.
Other companies have been resuming their share buybacks as well.