“For the full year, we continue to expect positive free cash flow after spending capital of approximately $25 million for investments to improve productivity, increase capacity and introduce new products, as well as for maintenance requirements,” he said.

“I believe that our focus on operational improvements, new product introductions and geographic expansion will deliver improving top and bottom-line results during fiscal 2013 and beyond,” Puishys said. “Apogee is a great company with significant opportunities to grow our business at home and internationally.”

TELECONFERENCE AND SIMULTANEOUS WEBCASTApogee will host a teleconference and webcast at 10 a.m. Central Time tomorrow, June 21. To participate in the teleconference, call 1-800-295-4740 toll free or 617-614-3925 international, access code 23058100. The replay will be available from noon Central Time on June 21 through midnight Central Time on Thursday, June 28, by calling 1-888-286-8010 toll free, access code 84965034. To listen to the live conference call over the internet, go to the Apogee web site at http://www.apog.com and click on “investor relations” and then the webcast link at the top of that page. The webcast also will be archived on the company’s web site.

ABOUT APOGEE ENTERPRISESApogee Enterprises, Inc., headquartered in Minneapolis, is a leader in technologies involving the design and development of value-added glass products and services. The company is organized in two segments:
  • Architectural products and services companies design, engineer, fabricate, install, maintain and renovate the walls of glass and windows comprising the outside skin of commercial and institutional buildings. Businesses in this segment are: Viracon, the leading fabricator of coated, high-performance architectural glass for global markets; Harmon, Inc., one of the largest U.S. full-service building glass installation, maintenance and renovation companies; Wausau Window and Wall Systems, a manufacturer of custom aluminum window systems and curtainwall; Linetec, a paint and anodizing finisher of window frames and PVC shutters; and Tubelite, a fabricator of aluminum storefront, entrance and curtainwall products.
  • Large-scale optical segment consists of Tru Vue, a value-added glass and acrylic manufacturer for the custom picture framing market.

USE OF NON-GAAP FINANCIAL MEASURESIn addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this news release also contains non-GAAP financial measures. Specifically, Apogee has presented free cash flow and non-cash working capital. Free cash flow is defined as net cash flow provided by operating activities, minus capital expenditures. Non-cash working capital is defined as current assets, excluding cash and short-term investments, less current liabilities. Apogee believes that use of these non-GAAP financial measures enhances communications as they provide more transparency into management’s performance with respect to cash and current assets and liabilities. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the reported operating results or cash flows from operations or any other measure of performance prepared in accordance with GAAP.

FORWARD-LOOKING STATEMENTSThe discussion above contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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 operating results of the company, including the following: operational risks within (A) the architectural segment: i) competitive, price-sensitive and changing market conditions, including unforeseen project delays and cancellations; ii) economic conditions, material cost increases and the cyclical nature of the North American and Latin American commercial construction industries; iii) product performance, reliability, execution or quality problems that could delay payments, increase costs, impact orders or lead to litigation; and iv) the segment’s ability to fully and efficiently utilize production capacity; and (B) the large-scale optical segment: i) markets that are impacted by consumer confidence and trends; ii) dependence on a relatively small number of customers; iii) changing market conditions, including unfavorable shift in product mix and new competition; and iv) ability to fully and efficiently utilize production capacity. Additional factors include: i) revenue and operating results that are volatile; ii) financial market disruption which could impact company, customer and supplier credit availability; iii) self-insurance risk related to a material product liability event and to health insurance programs; iv) cost of compliance with governmental regulations relating to hazardous substances; and v) foreign currency risk related to certain continuing operations. 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 of operations. 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 such 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. For a more detailed explanation of the foregoing and other risks and uncertainties, see Item 1A of the company’s Annual Report on Form 10-K for the fiscal year ended March 3, 2012.
Apogee Enterprises, Inc. & Subsidiaries
Consolidated Condensed Statement of Income
    Thirteen     Thirteen    
Weeks Ended Weeks Ended %
Dollar amounts in thousands, except for per share amounts June 2, 2012 May 28, 2011 Change
Net sales $ 154,134 $ 153,338 1 %
Cost of goods sold   123,059     129,652   -5 %
Gross profit 31,075 23,686 31 %
Selling, general and administrative expenses   28,757     27,114   6 %
Operating income (loss) 2,318 (3,428 ) N/M
Interest income 272 277 -2 %
Interest expense 363 309 17 %
Other income, net   17     3   N/M
Earnings (loss) before income taxes 2,244 (3,457 ) N/M
Income tax expense (benefit)   638     (1,280 ) N/M
Net earnings (loss) $ 1,606     ($2,177 ) N/M
Net earnings (loss) per share - basic $ 0.06 ($0.08 ) N/M
Average common shares outstanding 27,787,767 27,861,799 0 %
Net earnings (loss) per share - diluted $ 0.06 ($0.08 ) N/M
Average common and common
equivalent shares outstanding 28,223,066 27,861,799 1 %
Cash dividends per common share $ 0.0900 $ 0.0815 10 %
Business Segments Information
Thirteen Thirteen
Weeks Ended Weeks Ended %
June 2, 2012 May 28, 2011 Change
Architectural $ 134,877 $ 135,287 0 %
Large-Scale Optical 19,258 18,052 7 %
Eliminations   (1 )   (1 ) 0 %
Total $ 154,134   $ 153,338   1 %
Operating income (loss)
Architectural ($1,889 ) ($7,053 ) 73 %
Large-Scale Optical 5,268 4,632 14 %
Corporate and other   (1,061 )   (1,007 ) -5 %
Total $ 2,318     ($3,428 ) N/M
Consolidated Condensed Balance Sheets
June 2, March 3,
2012 2012
Current assets $ 218,164 $ 229,439
Net property, plant and equipment 162,921 159,547
Other assets   114,501     104,118  
Total assets $ 495,586   $ 493,104  
Liabilities and shareholders' equity
Current liabilities $ 99,392 $ 105,771
Long-term debt 30,912 20,916
Other liabilities 44,350 45,219
Shareholders' equity   320,932     321,198  
Total liabilities and shareholders' equity $ 495,586   $ 493,104  
N/M = Not meaningful
Apogee Enterprises, Inc. & Subsidiaries
Consolidated Condensed Statement of Cash Flows
    Thirteen     Thirteen
Weeks Ended Weeks Ended
Dollar amounts in thousands June 2, 2012 May 28, 2011
Net earnings (loss) $ 1,606 ($2,177 )
Depreciation and amortization 6,528 7,022
Stock-based compensation 1,028 410
Other, net 488 274
Changes in operating assets and liabilities   (17,273 )   (26,065 )
Net cash used in continuing operating activities   (7,623 )   (20,536 )
Capital expenditures (9,509 ) (1,614 )
Proceeds on sale of property 14 10,306
Net (purchases) sales of restricted investments (8,260 ) 619
Net (purchases) sales of marketable securities (11,125 ) 2,613
Investments in life insurance   (900 )   (1,435 )
Net cash (used in) provided by investing activities   (29,780 )   10,489  
Proceeds from issuance of debt 10,000 -
Payments on debt (45 ) (200 )
Shares withheld for taxes, net of stock issued to employees (817 ) (658 )
Dividends paid (2,643 ) -
Other, net   (168 )   (32 )
Net cash provided by (used in) financing activities   6,327     (890 )
Cash used in discontinued operations   (34 )   (3,272 )
Decrease in cash and cash equivalents (31,110 ) (14,209 )
Effect of exchange rates on cash 111 17
Cash and cash equivalents at beginning of year   54,027     24,302  
Cash and cash equivalents at end of period $ 23,028   $ 10,110  

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